Who Really Needs Norilsk?
When Norilsk Nickel privatized, turning the former state-owned giant into a private corporation, the way the city of Norilsk and the factory interacted began to change. In early 2004, the revolutionary idea that the city should exist independently of the factory resounded throughout Norilsk. Strangely enough, this took Norilsk's residents completely by surprise. Until the phrase "bipolar city" entered the common parlance of local officials, the factory had gradually consolidated political power in an organized and purposeful way. The final phase of this process began in 2001, when Norilsk Nickel won the complete loyalty of the city council in addition to the traditional loyalty of the mayor. This combination allowed the plant in the three years that followed to shrug off its former "social responsibilities" to city residents. The city was on its own. In late 2004, the company's management declared that it hoped for cooperation, mutual aid and friendly relations with the city administration. However, a standoff exists behind the scenes, and, despite all of Mayor Valery Melnikov's stated loyalty to the plant, no one has forgotten that he came to office with the slogan "Let's Get Norilsk Nickel!" After calling for friendship and collaboration, the company has been observing the city's problems from afar, but with a certain interest. There even seems to be some poorly concealed competition between the city and the plant. The rivalry is often played out on the pages of the local press: Right after a story about the terrible conditions children face at a municipally funded summer camp comes a delightful account of children having fun at a camp sponsored by Norilsk Nickel. On the local television news, a report covering the leaky roofs and dripping pipes in city-maintained buildings is followed by a cheerful commercial singing the plant's praises. The directors at the nickel giant, inspired by the idea of becoming world business leaders, are acting according to the laws of business. To stay competitive, the company has gotten rid of costly social programs and let go of organizations that are not directly connected to production. It has laid off thousands of "extra" workers. The fact that its decisions wind up putting a huge burden on the city budget does not seem to bother the Norilsk Nickel managers sitting in Moscow. Obviously, however, the city's problems eventually become the factory's problems. To prove this, all we have to do is ask a very simple question: Who needs Norilsk? No one doubts the historical justifications for creating a city in the Far North. The Soviet Union needed to exploit the abundant natural resources north of the polar circle to develop industry. Yet who needs Norilsk now that the conquest of the Far North has become simply another chapter in Russian history? Does the government need Norilsk? No. It costs the federal authorities far too much to support the north and its residents. The government has frequently expressed its desire to relocate northerners to more productive and temperate climes. City officials are interested in Norilsk, of course. However, the numerous city bureaucrats live off taxes paid by the plant, and they hardly notice city residents except when elections roll around. The administration often seems to see the public as an unfortunate bother. What about Norilsk's residents? Do they need the city? Sure, but only some of them do. The majority of people live in Norilsk not because they really want to but because they somehow ended up here. Though the quality of life in Norilsk is comparable to that in other Russian regions, 90 percent of residents would like to move somewhere else according to polls. There is only one option left. Norilsk Nickel needs the city. It supplies the plant's labor force: people living here with their families and their various social networks. Thanks to these people, the Norilsk mining and metals plant can run smoothly. Mining and metallurgy cannot be outsourced. The continuous production cycle cannot be maintained and demand for highly skilled labor cannot be met by migrant workers. Norilsk Nickel will only be able to make quality products if it employs workers who live in Norilsk on a permanent basis. Unlike temporary employees, these people have an interest in developing and improving their city, which means they will in turn make things better for the plant. However, the assertion that the plant needs the city is only correct if we assume that the city in question is in a near ideal state. Norilsk as it exists today - as cruel as this may sound - is of no use to anyone at all. This is because the size of its bloated social organizations and administration exceeds the actual demands of residents several times over. Thus, the city is confronted with the problem of "extra people." Before the era of political reforms and economic crisis in Russia, people moved to the Far North to make some extra money, as wages were higher. They came to Norilsk for 10 to 15 years, made enough money to buy a car or an apartment and then left. When their Sberbank savings accounts became worthless in the 1990s, many Norilsk residents wound up with next to nothing. Not only did they not have enough money for a car or apartment, but they also couldn't afford a plane ticket south. The restructuring at Norilsk Nickel that began in the late 1990s left a large number of these people out of work to boot. Those who were younger and more energetic managed to leave and establish themselves somewhere else. The city began to age. In 1994, the average age in Norilsk was 28. Now, after a little more than a decade, the average age has shot up to almost 40. Every year, Norilsk has to deal with more and more aging pensioners who do not work. With this burden on social programs, Norilsk looks less and less attractive to the federal government and to the plant- and even to its own residents. Norilsk Nickel, which was in many ways responsible for creating this situation, has apparently chosen to pursue a rather contemplative and passive policy. The company is not taking any serious steps to change the current state of affairs at the plant. Moreover, Norilsk Nickel is gradually handing over its social commitments to the municipal government and thus slowly deepening the crisis in the region. According to some calculations, after it goes through all its optimizing and restructuring, the company's polar division should employ approximately 20,000 people compared with today's 50,000. Another 20,000 Norilsk residents will work in other companies and organizations supporting the plant or in transportation, communications, health care and trade. Even if we include their family members, the total population of Norilsk should theoretically not exceed 100,000. Yet Norilsk is currently home to more than twice that number of people. There are more extra people than necessary ones. Who will solve this problem? The people who have enough money or who absolutely need to leave, will leave. And sooner or later, Norilsk Nickel will have to face this problem. For the time being, the company has yet to recognize this fact. This year will be a tough one for Norilsk. Perhaps it will force Norilsk Nickel's management to take a closer look at its role in the life of city. Vitaly Tolstov is editor of Norilchanin, an independent newspaper in Norilsk. He contributed this comment to The St. Petersburg Times.
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