Russian Trade Unions Call for Reduction of Key Interest Rate
News from member organizations
The Federation of Independent Trade Unions of Russia (FNPR) has called for a more balanced financial policy in the country.Efforts to curb inflation, the organization warns, must not lead to a shutdown of industrial activity. The FNPR’s official position has been published on its website.
“The FNPR is receiving reports from trade union organizations acrossthe country indicating a growing trend of wage arrears.This process destabilizes the social environment and increases the number of labordisputes,” the statement reads.
According to the FNPR, the primary cause of delayed wage payments is the lack of working capital among enterprises.
Businesses are unable to access credit at economically viable interest rates, a situation resulting from the Central Bank’s monetary policy. In its attempt to combat inflation, the Bank of Russia has significantly raised the key interest rate, which, in turn, is freezing wage growth, increasing corporate debt, and leading to layoffs.“Russian trade unions call for a reduction of the key interest rate!” -the FNPR emphasized in its statement.
As of the end of April, the total amount of overdue wage arrears in Russia stood at 1.4819 billion rubles — an increase of 33.8 million rubles (2.3%) compared to March.
“The FNPR is receiving reports from trade union organizations acrossthe country indicating a growing trend of wage arrears.This process destabilizes the social environment and increases the number of labordisputes,” the statement reads.
According to the FNPR, the primary cause of delayed wage payments is the lack of working capital among enterprises.
Businesses are unable to access credit at economically viable interest rates, a situation resulting from the Central Bank’s monetary policy. In its attempt to combat inflation, the Bank of Russia has significantly raised the key interest rate, which, in turn, is freezing wage growth, increasing corporate debt, and leading to layoffs.“Russian trade unions call for a reduction of the key interest rate!” -the FNPR emphasized in its statement.
As of the end of April, the total amount of overdue wage arrears in Russia stood at 1.4819 billion rubles — an increase of 33.8 million rubles (2.3%) compared to March.
GCTU News
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