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FNPR Newsletter. February 5, 2025

05.02.2025

5 February, 2025

Dear colleagues,

This is our next newsletter with the FNPR position on certain aspects of social, economic and political situation in the Russian Federation covering the events of the last weeks of 2024 and of January 2025.

The public opinion indicators show a broad and sustained support of the Russian authorities by the country's citizens. According to a poll conducted by the Public Opinion Foundation in late December, 80% of respondents rated President Putin’s performance positively, while a similar survey held on January 26 revealed even higher rate of support at 82%.

The economic situation also gives ground for optimism. According to the results of 2024, the federal budget deficit amounted to 1.7% of GDP. Despite sanctions pressure from Western countries, Russian GDP grew by 4% last year. Manufacturing continues to be the main contributor to positive economic dynamics: growth in this sector during the first nine months of 2024 was 8.1%. Unemployment remains at a record low of just 2.3%. Positive changes include, of course, an increase in the minimum wage. The Federal minimum wage is established by the government with account for the social partners' opinion. From January 1, 2025, the Federal minimum wage increased by 16.6% reaching 22,440 rubles per month (approx. USD 225). It should be noted that in recent years the government has negotiated this issue with the unions quite constructively, and the minimum wage is increased regularly. However, the proposal to fundamentally change the minimum wage calculation system by linking its rate to the minimum consumer budget, which the unions have been pushing through for over a decade, still remains unimplemented.

The FNPR experts' calculations show that as of early 2024, the minimum consumer budget per person was 49,950 rubles (approx. USD 500). Thus, despite repeated increases in the Federal minimum wage over recent years, it still falls far short of the minimum consumer budget. The union struggle for a decent minimum wage continues.

The low average wage in some sectors of the economy least affected by economic growth of recent years, is also alarming. According to one of the FNPR affiliates, the All-Russia Life-Support Workers' Union, housing and public utilities remain a low-wage sector. In almost every region of the country, the average wage in this sector is lower than the region's average by 40-50%. The Union demands that the government take urgent measures to correct this disparity.

At the end of 2024, as usual, trade unions summed up the year's results. In this regard, it is worth noting the Second All-Russian Labour Lawyers' Forum held during November 24-29 in Sochi. The Forum was attended by union legal inspectors from across the country. The FNPR and its member organisations employ a total of 665 legal inspectors. In 2023, as noted during the Forum, owing to their inspections, responses to complaints of union members, pre-trial settlement of claims and won lawsuits, Russian workers obtained compensations exceeding 26 billion rubles (approx. USD 300 mln.).

As for the special military operation against the Kiev regime, in December the Russian Defence Ministry released certain figures indicating its success: during 2024 the Russian army liberated 4,500. sq.km. with 214 towns and settlements, including three important cities of Donbas, a Russian-speaking region which seceded from Ukraine after the 2014 coup d'état and joined Russia in 2022.

The successful offensive of Russian troops does not eliminate the Russian leadership's readiness for peace negotiations to end the armed conflict. During a press conference on December 19, in response to the question from an American journalist if Russia was prepared to compromise in any way over Ukraine, President Putin said: "Politics is the art of compromise. We have always said that we are ready for both negotiations and compromises. The problem is that the opposing side, both literally and figuratively, rejected negotiations. We, on the contrary, have always been willing to talk, and talking always leads to finding a compromise."

On January 24, in a conversation with the Russian journalist, the President of Russia once again stressed that Russia was ready for negotiations with the U.S. on a wide range of issues, including the Ukrainian problem. He noted that the prospects for negotiations with Ukraine are currently clouded by both the unwillingness of the Ukrainian side to conduct such negotiations, and the lack of legitimacy of the current Ukrainian authorities that have avoided holding elections within the time limits prescribed by the Ukrainian law.

We will keep informing you about the most important events in the life of Russian trade unions and always stand ready to provide comprehensive clarifications.