Industrial Relations: Union dispute hits Ford's Russian plant

A dispute over linking salaries to increased production is threatening Ford's motor plant in Russia. Industrial action by trade unionists has slowed production by 25%, posing a severe threat to Ford's plans to double production next year to compete with cheaper Asian brands such as Hyundai.

Ironically, the International Herald Tribune, reports that union organizing this summer met with no resistance from Ford management, a situation which unions and analysts agree is uncommon in Russia.

Among other demands the unions are seeking a 30% increase in salaries.