VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Ladies and gentlemen,
I have invited you to discuss the situation at one of the leading Russian automobile manufacturers-the Volga Automotive Plant, or Avtovaz.
Avtovaz has been Russia's leading automobile manufacturer and retailer for many years, and presently accounts for 25% of the national automobile market.
However, the company has many problems, which the crisis compounded but did not create.
The free market makes it necessary to restructure Avtovaz and give it a new lease of life-and we cannot limit the free market today, because we cannot prevent our population from buying quality cars for reasonable prices.
We understand that the company would be troubled for a long time and eventually vanish from the market and die if we did not do anything.
We cannot tolerate this prospect. To prevent it, the company needs, first of all, to develop its own engineering centre. I ask our foreign shareholders to speak up on this score.
But even before this, the company certainly needs plans for financial improvement, technological modernisation, and social development-factors I consider of equal importance.
Much should be done to get the company out of its plight. We know the present state of the automobile industry in North America, Japan and Europe. Similar processes are underway everywhere. The industry should streamline its finances and employment, and we know that Avtovaz executives have relevant plans.
Christian Esteve, Renault Senior Vice-President for the EuroMed region, and Avtovaz Board member (as translated): We have drafted an anti-crisis plan, and the Board of Directors has recently approved it. Its measures for cutting expenditure are rather harsh. The plan calls for social measures, among others, which focus on Avtovaz employees of retirement and pre-retirement age. We see it as our duty to provide them with full corporate pensions and guarantee them the standard of living they deserve. The plan does not stipulate a major reduction in personnel of the active working age.
Vladimir Putin: As for employees of retirement age, the situation is more or less understandable. At least, their pension rights are guaranteed. As for people of the so-called pre-retirement age, the situation demands further study.
The acting Russian legislation grants men of 58 years of age and women of 53 years of age the right to full pensions in similar situations.
Their pensions are paid from the federal budget before they reach the retirement age, which is 60 for men and 55 for women, after which their pensions are paid from the Pension Fund. That is normal, more or less.
But what about men who are 57 and a half years old, and women who are 52 and a half, or something like that? How will their interests be guaranteed?
I have sent an ad hoc team from the Health and Social Development Ministry to the plant today to take stock of their situation. The team will work in tandem with Pension Fund officials.
I ask company executives to lend the team any assistance necessary and to provide relevant information.
I deem it necessary to bring trade unions into the project. Trade unions should be fully involved in the company's restructuring.
The government is ready to assume a part of the relevant burden-in particular, funding for these measures. I hope the employees who have been dismissed will have the chance to find jobs at the new enterprises that might begin operations in Togliatti and its vicinity-for instance, at car part manufacturers.
This also concerns funding for social projects, which we are ready to transfer to the municipal and regional levels to an even greater extent. They, too, can be partly financed by the federal government. This also concerns funding for the Russian shareholder-I mean the Russian Technologies state corporation.
I would like to see all shareholders take an equal part in the job we all share. Everyone should be sure that the Russian Government will do everything it can to protect all shareholders' interests.
Christian Esteve: Thank you, Mr Putin. Renault is indeed a partner of Avtovaz, and we want to retain this partnership. The decisions of the Avtovaz board of directors-in particular, those just mentioned-might be painful, but they are indispensable. Here, too, you may rely on Renault, because we are aware of our social responsibility for what is going on at Avtovaz. Troubleshooting is part of the Avtovaz business plan. We have designed car models for Avtovaz factories, and we need a powerful supply network that would offer quality products.
As you know, Mr Putin, one car designer requires 16 suppliers. There is potential for Avtovaz to rebuild itself on a sound basis, especially if it works together with Renault and Nissan for a hopeful future. We will continue to support it, as we do now.
Vladimir Putin: Thank you. Mr Igor Shuvalov (First Deputy Prime Minister) will visit the plant on Thursday, and continue the discussion on how to help Avtovaz. He will formulate the initial and subsequent plans for development, in conjunction with the company executives, shareholders and trade unions-I want them to take part.
