PUTIN' S DISGRACEFUL TACTICS IN THE MIDST OF THE PANDEMIC

The spread of the Coronavirus in Russia

Putin is proud because Russia has one of the lowest unemployment rates in the world but the pandemic is showing the disadvantages of a system that restricts flexibility.


The situation is exacerbating poverty at a time when Putin needs a popularity boost following five years of stagnation and falling incomes. The economy is expected to contract due to the coronavirus. The Russians are complaining because they wish to return to work.  They resent Putin because of his wrong decisions and because he offers power to his favourite elite. The coronavirus cases in Russia have surpassed 120.000.  A quarter of the companies have put their workers on unpaid leave since the lockdown began at the end of March.  Almost 80% expect a reduction in wages of about 17%.


There are estimates that about 15% of workers are currently idle, while as many as 25 million will be out of work if the lockdown continues until the end of May.  The situation will deal a blow to the economy. One of the biggest losers of the crisis will be the middle class.  "That will sharply reduce the contemporary capacity of the economy, its flexibility and potential growth," said the rector of the High School of Economics in Moscow.


The government has focused on large state-owned companies, which, so far, haven't had to cut too many jobs.   Apparently many salaries were to be cut by a third because the state support did not cover losses from store closures.


Putin instated  "non-working" period from the end of March to May 11th, though the employees have to continue working if they can, while the employers still have to pay their staff.  "The most important task for companies is to maintain stability and not allow a surge in unemployment", said Putin last March.


The government increased unemployment benefits, but the amount barely covers the cost of living in even the poorest parts of the country.    A sales manager at a large Moscow company said that he and his colleagues had been told to sign contracts accepting unpaid leave until the end of May.  They were given the advance of  17.000 rubles instead their full wages for April, with the promise of receiving the rest later.   Whoever refused to sign the contract would be the first to be fired as soon as things return to normal.


Shocking tactics against workers and severely opposed to industrial relations in general.  This is a profound disgrace, shame on you and your colleagues, Mr Putin.