No mass layoffs at large state enterprises ahead of presidential campaign

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April 22, 2016 19:03

MAZ employees in Minsk have been sent on forced leave until January 12th, 2015, and ‘Gomselmash’ management have prompted employees to take 4-6 unpaid leave days each month.

As expected, the decline in the competitiveness of Belarusian products on the Russian market and the deteriorating economic situation in Russia are interfering with the work of Belarusian enterprises which are mainly oriented towards Russian market. However, ahead of the 2015 presidential campaign the Belarusian authorities will not allow mass layoffs at the large state-owned enterprises and will not change the social economic policy. The authorities will seek to ensure social and political stability by expanding part-time employment and by reducing wages - but not below the acceptable level.

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According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.