NATIONALIZATION IN BANKRUPTCY: TRADE UNIONS TAKE THE INITIATIVE

The Federation of Independent Trade Unions of Russia came up with an initiative to nationalize bankrupt enterprises in order to save jobs in a crisis situation in the company.  The idea was voiced the day before by FITU chairman M.V.  Shmakov as part of a report at a meeting of the General Council of the organization.

In his speech, the head of the federation noted that at the moment the issue of creating jobs should become one of the key areas of the state economic policy.

According to Shmakov, nationalization is necessary in cases where the owners of socially important companies are unable to cope with the resulting difficulties.

It is important to do this in order to save jobs, because the bulk of companies that declare insolvency, are liquidated as a rule. This situation leads to an increase in the number of unemployed citizens who subsequently turn to the same state for benefits and payments.

According to Shmakov, often the main creditors of insolvent companies are the state represented by the tax authorities and banking structures. Thus, the leader of the federation still sees the preservation of jobs as a priority task of the state, even if this will cost the losses in taxes.

Additionally, FITU proposed the introduction of a ban on the bankruptcy of large and medium-sized enterprises, as well as the defense industry enterprises and those fulfilling orders within the defense industry.