JOINING THE FEDERAL INDUSTRY AGREEMENTS FOR THE PERIOD FROM 2014 TO 2016 IN THE AREAS OF ROAD FACILITIES, MOTOR, RAIL AND ABOVE-GROUND CITY PASSENGER TRANSPORT

At the federal level, industry-specific agreements have been entered into which set out additional obligations and automatically apply to companies working in the areas of road facilities, motor, rail and above-ground city passenger transport. To refuse to join the agreements, a well-grounded refusal should be submitted to the Russian Ministry of Labour and Social Protection by 25 March 2014.

Pepeliaev Group advises: On 24 February 2014, Rossiyskaya Gazeta published the Letters of the Russian Ministry of Labour and Social Protection in relation to joining the Federal Industrial Agreement for Road Facilities adopted for the period 2014-2016 (the "Agreement for Road Facilities"), the Industrial Agreement for Organising Rail Transport adopted for the period 2014-2016  (the "Agreement for Rail Transport"), and the Federal Industrial Agreement for Motor and Above-Ground City Passenger Transport adopted for the period 2014-2016 (the "Agreement for Motor Transport") .

The Agreements have effect in relation to:

• companies which are members of employers' associations that took part in the conclusion of the relevant agreement,
• companies which are not members of such associations but have authorised such association to enter into the relevant agreement on their behalf,
• other companies in the industry, unless such companies submit to the Ministry of Labour and Social Protection a well-grounded refusal to join the relevant agreement by 25 March 2014.

Below we set out some of the provisions of the Agreements, which lay down additional requirements for employers
Agreement for Road Facilities:

• the supplemental payment for night work should be no less than 40% of the tariff rate (clause 3.6);
• if the workplaces have not been certified for compliance with the requirements for working conditions, this does not exempt employers from paying an increased amount to employees who work under arduous and/or harmful conditions (clause 3.6);
• where a collective labour dispute arises, agency work is forbidden until such dispute is resolved (clause 13.2).

Agreement for Rail Transport:

• the remuneration schemes, forms of material rewards, and minimum rates of hourly (monthly) tariff rates are set as agreed with the elected bodies of the primary trade union organisations (clause 4.1).

Agreement for Motor Transport:

• employers must ensure that hot food is available to their employees (clause 7.1);

• where a collective labour dispute arises, agency work is forbidden until such dispute is resolved (clause 13.2).

Implications for companies

For companies which were not involved in the Agreements being concluded (i.e. are not members of relevant associations of employers and did not authorise them to enter into such Agreements), the only option to refuse to join is a well-grounded refusal being filed with the Ministry of Labour and Social Protection, accompanied by the minutes of the discussions with the elected body of the primary trade union organisation which represents the company's employees (article 48(8) of the Russian Labour Code).

We recommend considering whether it is prudent to join the Agreements, and, if the decision is taken to refuse to join, filing a well-grounded refusal with the Ministry of Labour and Social Protection. It is also necessary for the Ministry of Labour and Social Protection to receive a well-grounded refusal within 30 calendar days from the date when it was published, that is, until 25 March 2014 (inclusive).

If such well-grounded refusal is not filed or is filed in breach of the deadline, the employees of the relevant company will have the right to claim (including though the court) that guarantees, compensations and benefits be granted to them in accordance with the Agreement. State Labour Inspectorate bodies will have reasons to hold the company administratively liable for not complying with the Agreement.

Help from your adviser

Pepeliaev Group's experts will readily provide the necessary legal support when the documents are prepared which are required to refuse to join the Agreement, and on any other issues which relate to the Agreements being in effect.

For additional information please contact:

In Moscow - Julia Borozdna, Head of Practice "Employment and Migration Law", on (495) 967-00-07 (phone) or by j.borozdna@pgplaw.ru;

In Saint-Petersburg - Alexander Korkin, Senior Associate, on (812) 640-60-10 or by a.korkin@pgplaw.ru, Sergey Spasennov, Partner on (812) 640-60-10 or by s.spasennov@pgplaw.ru;

In Krasnoyarsk - Egor Lysenko, Head of Siberian office in Krasnoyarsk, on (391) 277-73-00 or by e.lysenko@pgplaw.ru.