Labor (meaning both wage workers as well as their collective representation) in Russia was a major loser in the decade following the collapse of the Soviet Union. Aggregate data on prices, average wage and pension levels, wage arrears, and unemployment indicate a serious decline in workers’ standard of living that is unprecedented in the post-World War II era, while strike data show an upsurge in this form of worker militancy during the mid-1990s but a decline thereafter.

This article seeks to explain both why these developments occurred and what prevented workers from adequately defending their collective interests. Four explanations have been advanced by Western and Russian scholars. The first is that workers were victims of state policies pursued in line with the“Washington consensus” on how to effectuate the transition from an administrative-command to a market-based economy. The second points to workers’ attitudes and practices that were prevalent under Soviet conditions but proved inappropriate to post-Soviet life. The third, claiming that several key indices of workers’ standard of living are misleading, denies that labor has been a loser. The fourth and most compelling of the explanations is derived from ethnographically based research. It argues that despite changes in the forms of property and politics, power relations at the enterprise level remained intact, leaving workers and their unions dependent on the ability of management to bargain with suppliers of subsidies and credits. The article concludes with some observations about workers’ survival strategies and the extent to which collective dependence on economic and political strongmen has worked against structural change in favor of labor.