By Sue Davis (auth.)

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Extra resources for Trade Unions in Russia and Ukraine, 1985-95

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Retaining power and privilege is an important motivating factor for trade union leaders. Responding to environmental changes and seeing an opportunity to become a leader with power and privilege is also highly motivating. Second, it can be construed as economic gain. If the industry is perceived as potentially profitable, leaders can see an enrichment motivation to leave the official union and thus better control potential profits. 22 Trade Unions in Russia and Ukraine, 1985±95 The argument Resources drive the choice of union leaders.

Self-financing also gave enterprises the right to trade with foreign countries and firms and to keep some hard currency profits. Potential profitability is an important motivating factor in trade union leaders' decisions to leave the official union. This motivation was unleashed by the Law on State Enterprises and rules on self-financing. Increased workplace democracy, though limited at first, gave both members and trade union leaders the idea that they should have some choice in how the enterprise was run.

We must analyze institutional formation by looking at the trade-offs which face union leaders. The choice can be modeled as a choice between the ``big gamble'' ± leaving the official union structure ± and the status quo ± remaining within the official union structure (which in the Soviet and post-Soviet cases is also changing and therefore can also be modeled as a gamble but a smaller gamble). In no case is the value of any one factor sufficient to explain the leader's decision to stay or exit the official unions; instead it is a complex decision based on balancing the various risks and benefits.

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