“Hundreds of Soviet-era, single-factory towns suffer amid Russia's ... - Daily Press” plus 4 more |
- Hundreds of Soviet-era, single-factory towns suffer amid Russia's ... - Daily Press
- On divided Cyprus, peace campaigners' wedding sets example by crossing ... - Daily Press
- Skipper detained in Macedonia boat sinking - Chattanooga Times Free Press
- Russia's one-factory towns struggle to survive - El Paso Times
- Fees, start-up costs can be significant for franchisees - Highlands Today
| Hundreds of Soviet-era, single-factory towns suffer amid Russia's ... - Daily Press Posted: 06 Sep 2009 08:23 AM PDT YASNOGORSK, RUSSIA (AP) — Three decades ago, the Yasnogorsk Machine-Building Factory stamped out thousands of pounds of steel and iron into parts for wagons, pumps and locomotives for Russia's mining industry. Now two-thirds of its stamping and welding machines have been shut down. The old Soviet-era equipment is rusting, and fewer than 280 employees clock in every day — from a peak of 7,000. The factory that kept this town alive since the days of the czar is on its last breath, the victim of a global recession that has shaken Russia to the core. Yasnogorsk is one of about 500 communities across Russia built around a single company, whose very existence hangs by a delicate thread. The challenges such "monocities" face are compounded by the legacy of the Soviet era, as well as deep-rooted Russian traditions that make it hard to start over somewhere else. "What's happening in our town is not capitalism," said Alexander Gorbachev, a 59-year-old mechanic previously employed at the factory, who now works at a small machine shop. To help keep food on the table, Gorbachev (unrelated to the former Soviet leader) does what millions of Russians did during earlier times of trouble: He grows his own potatoes, beets and other vegetables and sells the rest at the market. "It's like we're in medieval times again." Russia's unemployment has risen to 8.3 percent, and industrial output declined by more than 14 percent in the first seven months of the year compared with 2008. In Gus Khrustalny, 100 miles north of Moscow, workers at the local decorative glass factory were paid with the crystal vases they made because the company had no money. In April, workers in a tungsten fabrication plant in the Primorye region staged a hunger strike after they weren't paid for months. And in Yasnogorsk, factory employees estimate they are collectively owed about 6 million rubles ($200,000) in back wages. These towns all saw their peak in the Soviet era, when a few plants would produce, say, all the Soviet Union's tires. The whole system lurched along guided by a massive bureaucracy of central planners rather than market forces. But in 1991, after 70 years of Soviet rule, the huge, clanking structure collapsed. Some factories simply closed their doors. Others were purchased for a pittance by a generation of future young billionaires, now called oligarchs, who milked them for profits rather than investing in them. "We've seen that all those factories that were privatized eventually went bankrupt," said Nikolai Medvedev, 55, who has worked at the Yasnogorsk plant for more than 30 years, sharpening metal parts. "The management is bad, because the owners who buy the factories don't really care about Russia. Their souls are in the West." Many Russian industries have benefited from the privatizations, with more efficient companies that offer employees competitive wages. But others have been unprofitable for decades and are still simply limping along. In Yasnogorsk, the factory opened in 1895 and expanded over the years in this town of 18,000 people. Along with jobs, the factory provided social services — everything from medical treatment and child care to family holidays at a local resort. In 1991, factory owners gradually cut back on these services. In the past six years, the factory has changed owners at least twice, and recently went bankrupt for the second time. Now children sit at home, alone, and parents worry they will turn to drugs or petty crime. Doctors and other professionals have fled the town, so residents are forced to travel close to an hour to see a pediatrician or an optometrist. The park in the center of town, with its once-proud Romanesque Palace of Culture, is a seedy wasteland, its cultural center in shambles, its fountains broken and trash and bottles littering the paths. Residents say their town is slowly dying. "There is no future for my kids here," said Sergei Ovsyanikov, a father of two and a plumber at the factory. "They will probably have to leave once they grow up." Ovsyanikov knows it's only a matter of time before his own job is eliminated. He could take part in government retraining programs or look for work in Tula, a medium-sized city 40 minutes away by train. Some of his laid-off co-workers already commute daily to Moscow, three hours each way. Although he is only 35, he says he is too old and too tired to retrain, relocate or make a long journey to work every day. Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.  This posting includes an audio/video/photo media file: Download Now |
| On divided Cyprus, peace campaigners' wedding sets example by crossing ... - Daily Press Posted: 06 Sep 2009 08:02 AM PDT  Turkish Cypriot Murat Kanatli, right, and Greek Cypriot Georgia Chappa kiss each other after their wedding at the town hall of Vathi on Greece's Aegean Sea island of Samos on Friday, Sept. 4, 2009. From opposite sides of their divided island of Cyprus, Georgia Chappa and Murat Kanatli made it their mission to break down the ethnic hatreds by bringing rivals together. Their biggest success is themselves; they just got married. Mixed marriages are extremely rare in Cyprus, but Chappa and Kanatli are sure one day they'll be the norm. (AP Photo/Thanassis Stavrakis) (Thanassis Stavrakis, AP / September 4, 2009)  This posting includes an audio/video/photo media file: Download Now |
| Skipper detained in Macedonia boat sinking - Chattanooga Times Free Press Posted: 06 Sep 2009 07:54 AM PDT [fivefilters.org: unable to retrieve full-text content] SKOPJE, Macedonia — The skipper of an overloaded sightseeing boat that sank in a western Macedonian lake was detained on suspicion of causing the deaths of 15 Bulgarian tourists, police said Sunday. The Ilinden sank rapidly in just six meters (20 ... This posting includes an audio/video/photo media file: Download Now |
| Russia's one-factory towns struggle to survive - El Paso Times Posted: 06 Sep 2009 07:47 AM PDT YASNOGORSK, RUSSIA—Three decades ago, the Yasnogorsk Machine-Building Factory stamped out thousands of pounds of steel and iron into parts for wagons, pumps and locomotives for Russia's mining industry. Now two-thirds of its stamping and welding machines have been shut down. The old Soviet-era equipment is rusting, and fewer than 280 employees clock in every day—from a peak of 7,000. The factory that kept this town alive since the days of the czar is on its last breath, the victim of a global recession that has shaken Russia to the core. Yasnogorsk is one of about 500 communities across Russia built around a single company, whose very existence hangs by a delicate thread. The challenges such "monocities" face are compounded by the legacy of the Soviet era, as well as deep-rooted Russian traditions that make it hard to start over somewhere else. "What's happening in our town is not capitalism," said Alexander Gorbachev, a 59-year-old mechanic previously employed at the factory, who now works at a small machine shop. To help keep food on the table, Gorbachev (unrelated to the former Soviet leader) does what millions of Russians did during earlier times of trouble: He grows his own potatoes, beets and other vegetables and sells the rest at the market. "It's like we're in medieval times again." Russia's unemployment has risen to 8.3 percent, and industrial output declined by more than 14 percent in the first seven months of the year compared with 2008.In Gus Khrustalny, 100 miles north of Moscow, workers at the local decorative glass factory were paid with the crystal vases they made because the company had no money. In April, workers in a tungsten fabrication plant in the Primorye region staged a hunger strike after they weren't paid for months. And in Yasnogorsk, factory employees estimate they are collectively owed about 6 million rubles ($200,000) in back wages. These towns all saw their peak in the Soviet era, when a few plants would produce, say, all the Soviet Union's tires. The whole system lurched along guided by a massive bureaucracy of central planners rather than market forces. But in 1991, after 70 years of Soviet rule, the huge, clanking structure collapsed. Some factories simply closed their doors. Others were purchased for a pittance by a generation of future young billionaires, now called oligarchs, who milked them for profits rather than investing in them. "We've seen that all those factories that were privatized eventually went bankrupt," said Nikolai Medvedev, 55, who has worked at the Yasnogorsk plant for more than 30 years, sharpening metal parts. "The management is bad, because the owners who buy the factories don't really care about Russia. Their souls are in the West." Many Russian industries have benefited from the privatizations, with more efficient companies that offer employees competitive wages. But others have been unprofitable for decades and are still simply limping along. In Yasnogorsk, the factory opened in 1895 and expanded over the years in this town of 18,000 people. Along with jobs, the factory provided social services—everything from medical treatment and child care to family holidays at a local resort. In 1991, factory owners gradually cut back on these services. In the past six years, the factory has changed owners at least twice, and recently went bankrupt for the second time. Now children sit at home, alone, and parents worry they will turn to drugs or petty crime. Doctors and other professionals have fled the town, so residents are forced to travel close to an hour to see a pediatrician or an optometrist. The park in the center of town, with its once-proud Romanesque Palace of Culture, is a seedy wasteland, its cultural center in shambles, its fountains broken and trash and bottles littering the paths. Residents say their town is slowly dying. "There is no future for my kids here," said Sergei Ovsyanikov, a father of two and a plumber at the factory. "They will probably have to leave once they grow up." Ovsyanikov knows it's only a matter of time before his own job is eliminated. He could take part in government retraining programs or look for work in Tula, a medium-sized city 40 minutes away by train. Some of his laid-off co-workers already commute daily to Moscow, three hours each way. Although he is only 35, he says he is too old and too tired to retrain, relocate or make a long journey to work every day. "It's just too hard," he said. "If I get fired, then I'll do what I have to do. Now I'm just waiting." Nikolai Petrov, an expert on regional issues at the Carnegie Moscow Center, said being unemployed is different for workers in Russia than in many other industrialized nations. "In Western Europe, if you lose your job, you just move somewhere else, but in Russia that's not an option for most people," he said. Many people who moved to Siberia and the Far East during the Soviet era, when they were paid premium wages, found themselves unable to return west to what is sometimes called "mainland" Russia after the Soviet collapse. "Just selling your apartment in a town that is economically depressed is impossible. And even if you do manage to sell it, the money you receive is not enough to buy housing in a larger city where there might be work," Petrov said. Economists say some monocities would be in better shape if Russia had made the massive investment needed to phase out antiquated industries and create a modern capitalist economy. Too much of Russian industry, some say, is still state-owned and managed. Yevgeny Yasin, a former economics minister and director of the New Economics School in Moscow, said Russia's government uses protectionist and other measures to keep a strong grip on the country's privately owned industries. Company managers, he said, haven't learned how to survive in the open market. "The social mechanism must change," he said. Management at the Yasnogorsk Machine-Building Factory, which took over from previous owners just three years ago, said it is trying hard to attract new business, even taking orders it would have rejected in the past. "The crisis dictates its own rules," Nikolai Dupak, general director of the factory, said in a written statement. "We had big plans to diversify our production, but we didn't have time to realize them...But we have a commitment to our workers and it's our goal to make sure they get paid all they are due." Besides the drop in orders, the factory was slapped with a fine of almost $2 million from the regional government for what Dupak called a "bookkeeping error," which Yasnogorsk Machine-Building has not been able to pay. Officials from the region did not answer repeated requests for comment. The federal government has helped industries limp along, with subsidies and tariffs. But many workers want Moscow to do more. Several in Yasnogorsk said they hope Prime Minister Vladimir Putin will drop in on them, like he did on another small, economically depressed town near St. Petersburg in June. There, Putin reprimanded the owner of one shuttered factory for poor management and ordered him to sign an agreement to pay back wages. In the meantime, patience is wearing out. "I pay my taxes and do everything I'm supposed to," said an exasperated Ovsanikov. "But I don't feel like life is getting any better. In fact, it's getting much worse."  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| Fees, start-up costs can be significant for franchisees - Highlands Today Posted: 06 Sep 2009 07:33 AM PDT Published: September 6, 2009 SEBRING - Carolyn Miller of Sebring makes the approximately 140-mile round-trip to Brandon for one reason - to shop at the Jo-Ann Fabric and Craft Store. "I love that store," Miller said. "I could spend the whole day there." Miller, who bypasses smaller Jo-Ann stores in Winter Haven and Lakeland to get to the larger store in Brandon, especially likes the material fabrics for quilting, baby blankets and wedding supplies at the national retailer. Miller, who said she likes to make things for her 11 grandchildren and five great-grandchildren, said she often hears women saying they wished there was a Jo-Ann store in Highlands County, which has at least three fabric stores. If Jo-Ann ever does decide to open a store in Highlands it will be owned by the company. The Hudson, Ohio-based company doesn't handle franchises. When asked about the criteria used for locating new stores, Lisa Greb, director of public relations for the company, said, "We don't share that with the public" for competitive reasons. Greb did say the company typically opens 20 stores a year in the United States. There are more than 750 Jo-Ann stores in the country. Although Jo-Ann doesn't have franchise stores, there are 900,000 franchise businesses in the United States, according to the International Franchise Association. The association represents 1,300 franchise companies in this country, spokesperson Alisa Harrison said. Harrison noted franchises account for 21 million jobs in the United States and generate $2.3 trillion in economic activity. The franchise fees and start-up costs generally range from $20,000 to $2 million, Harrison said. "It's a great way to get into business," she said. "You really need to do your homework." There are 90 different categories from automotive to pet care. Subway, Batteries Plus and Curves have franchises in Highlands. Subway Lew Carter and his family own six Subway restaurants in Highlands County. They have been a franchisee since 1985. The initial fee was $12,000 then and it hasn't changed, Carter said. However, the build-out and equipment costs have increased dramatically. Carter, the president of 3 Carters Subway Inc., said the cost of opening the first store was about $40,000. It cost $150,000 to open the store in the Avon Park Wal-mart. Subway franchisees are required to pay on a weekly basis an 8 percent royalty fee and a 4 1/2 percent fee that goes into a national advertising fund. For those who are interested in becoming a franchisee, Carter said a person needs to ask, "is it something you want to do?" He suggests contacting existing franchisees who can talk about the process and discuss sales. A valuable source of information is a document called the franchise offering circular that explains the fees and offers other information. Carter said all national franchises have the document. Carter said the beauty of franchising is that the company has a proven system. "If you submit yourself to the authority of the franchise and play by their rules, you should be able to be profitable," he said. Carter recalled that the president of Subway told franchisees one time that they "didn't get into it to make sandwiches." Batteries Plus Bob Huston and his partner, Greg Seltveit, opened the Batteries Plus in Sebring in October 2008. Huston said the one-time franchise fee was about $38,000. That covered some training and spending three weeks in Milwaukee. Travel expenses, food and lodging were not included. The company requires franchisees to pay a 4 percent royalty fee and 1 percent advertising fee each month. Additionally, 5 percent of store sales have to be used for advertising. Huston and Seltveit had to shell out between $45,000 and $50,000 in inventory. They had to find a building and pay for equipment and fixtures as well as hire employees. Huston said he and Seltveit were both semi-retired at the time they decided to go into retail. They had been in other businesses and "wanted to do something different." "We went into it pretty open-minded," he said. "Batteries Plus is a growing franchise and had continuous growth over several years." One thing Huston said he would do differently is choose a location that had more parking. Curves Kathie Lawens is a Curves franchisee and owns the two stores in Sebring. Curves is a women's gym that provides a total body workout in 30 minutes. She said she paid a franchise fee of $20,000 in 2003-04 and got the name and eight pieces of equipment. She had to cover the rental space, staffing and scales. Lawens said the fee would now be $45,000. Other franchises According to the McDonald's Web site, the total cost varies from restaurant to restaurant and the minimum amount for a down payment will vary. The company generally requires a minimum of $300,000 of non-borrowed personal resources to be considered for a franchise. The estimated initial investment required for each Little Caesars Pizza franchise location ranges from approximately $197,050 to $559,500 for a standard carry-out location, its Web site said. Stores in the higher end of the range are typically free-standing buildings and not strip-center locations. The costs vary and are based on different factors. Little Caesars requires an individual interested in opening one store to have a net worth of $150,000 with a minimum of $50,000 in liquid, unencumbered assets such as cash. Candidates must also be able to obtain financing to cover the total costs of opening a franchised location. 7-Eleven's one-time initial franchise fee is based on the store's gross profit, according to the company's Web site. The range of the fee is from $50,000 to $350,000. If the store has gasoline there is a one-time initial gasoline fee based on the store's gasoline gallons for the previous 12 months. The fees range from $10,000 to $40,000. FAST FACTS The International Franchise Association represents 1,300 franchise companies in this country, spokesperson Alisa Harrison said. Harrison noted franchises account for 21 million jobs in the United States and generate $2.3 trillion in economic activity. The franchise fees and start-up costs generally range from $20,000 to $2 million, Harrison said. "It's a great way to get into business," she said. "You really need to do your homework." Bill Rogers may be reached at 386-5825 or wrogers@highlandstoday.com  This posting includes an audio/video/photo media file: Download Now |
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