Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

Protection of Wages Convention, 1949 (No. 95) - Russian Federation (Ratification: 1961)

Further to its previous observation, the Committee notes the information supplied by the Government to the Conference Committee on the Application of Standards in June 1999 and the discussions which took place in that Committee. The Committee notes that the Government supplied a detailed report just before its present session at a time when it was too late to be analysed. Therefore the Committee will examine this report in detail at its next session. In the meantime, the Committee can only hope that the report just received has dealt with all the substantive provisions of the Convention particularly relating to the following points raised only on the basis of the information that had been revised up to June 1999.

1. Present situation of wage arrears. A communication was received on 16 March 1999 from the Russian Cultural Workers' Union, which alleges the systematic non-payment of wages for up to seven months in the Russian cultural establishments, contrary to Article 12(1) of the Convention (Regular payment of wages), Article 3 (Payment in legal tender), Article 4 (Restriction on the payment in kind), and Article 6 (Freedom of the workers to dispose of their wages). Nor has the Government responded specifically to observations made by a number of other workers' organizations, and noted in the Committee's previous observation.

According to the information supplied by the Government to the 1999 Conference Committee, the total wage arrears, as of 1 May 1999, stood at 16,348,000,000 roubles, of which 12,088,000,000 roubles were attributable to shortfalls in budget funding at all levels. If these figures are compared to those supplied by the Government to the 1998 Conference Committee (total of 62,800,000,000 roubles, including 9,500,000,000 roubles of arrears due to the lack of direct financing out of the federal and regional budgets), the wage arrears in the public sector have considerably increased while the total arrears as a whole have been reduced.

The Government representative to the 1999 Conference further stated that 19.6 per cent of the shortfalls was in the federal budget financing and the remaining 80.4 per cent related to the territorial budgets, and that on 1 May 1999 wage arrears in the social sector resulting from shortfalls in the territorial budget were recorded in all the constituent territories of the Russian Federation, although the outstanding wage arrears fell in 68 regions.

The Committee notes with great concern the above information supplied to the 1999 Conference as a sign of a continued aggravation of the situation, even if it may not be the same in all sectors of the economy.

2. Measures to be taken. With regard to the present situation of non-observance of Article 12(1) of the Convention, the Committee has for some years been emphasizing the importance of such means as: (i) effective supervision; (ii) imposition of appropriate penalties to prevent and punish infringements; and (iii) steps to make good the prejudice suffered.

As to the information provided by the Government to the 1999 Conference, the Committee notes that the written information and the oral statement of the Government representative give various figures for 1998 and for January to April 1999, not only of the labour inspection carried out concerning the payment of wages (45,000 and 11,000 inspections respectively), but also of the number of employers fined (6,400 and 1,489) and of the total amount of fines (4,400,000 roubles and 1,246,000 roubles). The Government also provided the Conference Committee with the figures regarding the total sum of wage payments made to workers as a result of inspections - 9,000,000,000 roubles in 1998 compared to 7,700,000,000 in 1997 and 6,000,000,000 in 1996. However, the available information without further specification does not permit the Committee to conclude whether or not the measures by the Government have really been taken where they are needed, and are commensurate to the scale of the problem.

Regarding sanctions, the Committee notes that a new section 145-1 was added to the Criminal Code (adopted on 17 February and entered into force on 15 March 1999) to punish non-payment of wages by a fine to be calculated according to the minimum monthly wages or the income of the convict, or by deprivation of the right to occupy certain positions or to conduct certain activity for up to five years, or by imprisonment for up to two years, with a provision for increased penalty for a case that caused grave consequences. It requests the Government to supply detailed information on the enforcement of this new provision (number of cases investigated, prosecuted and convicted with details on the penalty actually imposed).

The Committee further notes that, in its statements made at the 1999 Conference, the Government considers it necessary to take measures in a variety of areas such as: enacting legislation for state supervision and monitoring of compliance with labour legislation; adopting the new draft Labour Code which has already been submitted to the state Duma; ensuring effective administration and financial control over other public undertakings in their activities, including the payment of wages and improving accountability of managers; creating a legal framework for the activities of state officials in management bodies of joint-stock companies; ensuring the principle of responsible ownership of socially important facilities.

3. In the light of the above, the Committee would conclude that there still remains great need for further measures to be taken by the Government in different areas and as swiftly as possible. The Committee notes that the Government's reply tends to concentrate on the situation in the sector financed by public budget, and on financial and budgetary measures. This may be justified if it is the sector where the problem is accentuated. However, the Committee recalls that the Government has the double responsibilities - as an employer to pay their employees' wages regularly and promptly, and also to enforce the national legislation providing for regular payment of wages to all employees covered by the Convention.

The Committee again requests the Government to refer to the report of the committee set up to examine the representation made under article 24 of the ILO Constitution by Education International and the Education and Science Employees' Union of Russia, which was approved by the Governing Body in November 1997, and the recommendations contained therein. It asks the Government to supply, in particular, detailed information on supervision, penalties, the settlement of wage arrears, texts of any relevant legislation and, more specifically, the application of the new provision of the Criminal Code mentioned above. The Committee would also urge the Government to include information on any decision made by courts of law or other tribunals concerning the question of regular payment of wages.

4. The Committee considers that the concern expressed by the committee referred to above, which examined the representation, concerning the need to ensure that measures taken to reimburse wage arrears do not result in the violation of other provisions of the Convention, would seem to be confirmed by the observation by the Russian Trade Union of Employees of Culture noted in paragraph 1 above. In addition, the Committee has noted that the Education and Science Employees' Union of Russia pointed out the increase in the payment of wages in kind in some regions.

The Committee requests the Government to indicate measures taken or envisaged to ensure not only the regular payment of wages but also the application of all the provisions of the Convention, and to supply a full report in due time. It also requests the Government to include, for instance, extracts from official reports that show the number of investigations made, infringements observed and penalties imposed.