Sunday, February 1, 2009

Idling Factories Keep The Kremlin Occupied

Posted by Justin Bresolin

Ulyanovsk, a city well known for its automotive factories, has had its main plant and factories remain closed since the customary New Year holiday. Though its approximate 16,500 employees have been promised their jobs back this month, many worry that this will not be the case, and that the “administrative vacation” that has kept workers at home might develop into outright job loss, a fear shared with Russians across the country in what might be the first considerable authority challenge to the Russian government since Putin took power in 2000.

The Kremlin fears that the slowly growing concern and discontent might develop into full-blown protest across the nation, a severe problem to be added to an already slumping economy that has funneled around 200 of its $600 billion financial reserves into its failing bank system. Though Ulyanovsk remains calm at this time, in part due to government-provided financial aid to keep workers’ salaries going during their downtime, many wonder how long this might last.

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