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Labour unrest in the ex-workers’ state

Overview

Rapid real wage growth and even faster increases in unit labour costs are squeezing profit margins and eroding the overall competitiveness of the Russian economy. The main drivers have been skills shortages and a catch-up in returns to labour from a low base. But 2007 has brought the first serious signs of another driver – which in its way is also a catch-up or normalisation phenomenon. This is the emergence of a genuinely independent organised labour movement.

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