Job Discussion Forums

Sashadroogie · Posted: Tue Mar 24, 2015 11:10 am Post subject:

Yes, many Russians do this also. But they are usually the same ones who took out mortgages in foreign currency and now seriously rue the day. Big mistake, in hindsight.

As for price increases, this is cause for concern. But it always has been. Inflation has, at least it appears to me, been much higher than official statistics would let on. And prices were always over the top, even for a basic pair of shoes. But I still maintain that the storm to be weathered is not nearly as bad as is being made out. In this, I see little difference between the clamourous predictions that the euro is doomed, or the whole US economy is about to collapse like Detroit.

Pity about airline flights, though. Fewer trips to western Europe to buy goods at a more reasonable price : (

Sashadroogie · Posted: Tue Mar 24, 2015 11:16 am Post subject:

Regarding imports, these have traditionally been price-gouged beyond what any citizens in another European state would accept. Doubling the already high price will simply mean people won't buy them. They won't be able to afford them. So, my prediction is that sellers will simply have to revise their pricing structure to reflect the reality of the markets buying power. Much the same as greedy landlords appear to be doing so.

UK publishers used to sell EFL materials at special 'Russian' prices in order to be able to sell at all. When I first came here, 'Cutting Edge' cost about ten or twelve euro for the set. In western Europe, the workbook alone cost that. Prices have since equalised. However, I suspect that there will be a return to the lower price structure again. Especially with the extra pressure of electronic piracy, which wasn't as prevalent then as it is today...

nfig77 · Posted: Tue Mar 24, 2015 11:32 am Post subject:

nfig77 · Posted: Tue Mar 24, 2015 11:59 am Post subject:

Let's not forget the other side of this coin. While the Russian populous is taking a hit, the Russian government benefits enormously because while imports are more expensive, exports are cheaper. And with oil prices low, a weak ruble brings tons of extra rubles into the Russian economy on dollar-valued crude, a major Russian export.

Deats · Joined: 02 Jan 2015 Posts: 503

Sorry, but your argument about oil makes no sense.

Russia is still exporting the same amount of oil, but instead of $120 a barrel, it now gets $55. So it is losing huge sums of money.

Prices of oil (to sell) are the same for every country, so it's not like Russia can lower the price to sell more. That's not how it works.

The Russian companies that are winning are companies that export goods and charge dollars, when their product is still sold for the same price - i.e. steel.

Deats · Joined: 02 Jan 2015 Posts: 503

I would also like to add my 2 cents about the salary.

I worked for a private boarding school in Pavlovsk, near St Petersburg (Gorchakov School), which charges 80k+ a month to students. My wage was only 60k + subsidised housing and free food. Other foreigners got 50-55k. We were expected to work 45-50hours a week - minimum.

I never asked for a pay rise when the crisis hit, because my contract was agreed in roubles. Now, it's your own fault, if in your head you converted the roubles to dollars or pounds to think of what you were earning. From what I see, almost all schools state their salaries in roubles. IF your school told you that you would be paid $2000 a month and this is what the contract says, then sure, your pay in roubles should be adjusted accordingly. If they told you a rouble salary - tough.

I was willing to keep working as a contract is a contract. For me the straw that broke the camels back and made me leave was the fact that because of the crisis, my dumb ass school decided that they didn't want to pay my wife her maternity pay, which she was entitled to by Russian law (she is Russian)... in fact, they wanted her to work from home when our baby arrived and she was offered 0roubles in return for this.

We told them to go jump.

Starting from next year I hear that they want to hire foreigners as interns. 250roubles an hour. I've heard a range of hours per month - from 50-160. So that is 12,500-40,000per month. What a joke. They are trying to lower salaries! The crazy thing is, I bet some idiots will take it.

On top of all this, the school is trying to charge students even more now, but trying to pay many Russian teachers (and foreigners) less. Obviously the headmaster and his cronies will get a pay rise come summer...

EF tried to get me to work for them. They were paying 70k and adjusting pay according to the rouble - as it was weakening they were paying a bit more, so credit to them. I turned them down in the end for various reasons.

Basically there are good and bad schools out there. If your school honours their contract, then so should you. If your school doesn't honour their contract then find another job. It's that simple.

From my experience of working with 3 foreigners (all Americans) in Russia, they were all utterly inept. None of them had taught before. Their work ethic was utterly contemptible. They were all interested in what was in it for them, and had no long term interest in the development of the kids. I would have sacked all of them within a month. So my guess is that most of the teachers asking for more money don't even deserve what they are being paid.

Sashadroogie · Posted: Tue Mar 24, 2015 6:11 pm Post subject:

Great post! On so many levels! Ura!

Sashadroogie · Posted: Tue Mar 24, 2015 6:38 pm Post subject:

And back to the economics...

The prices of foreign commodities for sale in Moscow, and Russia generally, bears little relation to their price in euro or dollars, or whatever currency in their country of origin. Russian companies routinely hike prices to double, triple, or more, than what the RRP would be anywhere else in Europe. Just look at women's clothes, shoes etc. It is only greed, pure and simple, that prices products this way - not some sort of local economic invisible hand. Consumers put up with this because despite prices being high, they were still reachable, sort of. Now that prices might be increasing again, they simply won't be able to shell out. If prices match ruble exchange rates, then a whole lot of retailers, suppliers etc. are going to go out of business.

Greedy buggers, to be sure. But I am not sure they are suicidally greedy...

Phillip Schofield · Posted: Tue Mar 24, 2015 7:30 pm Post subject:

Sashadroogie · Posted: Tue Mar 24, 2015 8:59 pm Post subject:

Just unlucky, dude...

Deats · Joined: 02 Jan 2015 Posts: 503

Just one last note on finances in Russia.

For anyone looking at staying more than a year and looking to save money, I think it is also out of order to demand an increase in their rouble salary mid-contract for the following reasons:

Back in December the rouble was 108* vs the £. Now it is 85. If the school had paid me let's say £1000 a month regardless, then in December they would have paid me 108000 roubles. If I saved this money and converted it to £ today, I would get £1270. The exchange rates work both ways. Would you be willing to pay the school back this £270? Pff, I doubt it. The money is only worth $ or £ the day that you leave Russia and take the money with you. Who knows what the rate will be in 1 week, let alone 1 year. Also, if you agree to 60,000roubles a month, which was £1000 last year (60r = £1), then the rouble had rallied and dropped to 40r = £1, would you have complained to the school that you were being paid too much and asked them to reduce your salary from 60,000 to 40,000. Erm, no. Thus, it is a one sided, hypocritical argument to demand more money.

Finally, if you are sensible with your savings, there is still a chance to get a very nice return from your money. I have set up a Jugra bank account and get a whopping 18% a year interest. On top of this I have a current account where I can withdraw any time and I get 13% a year from this. So things don't cost me any extra, cos the interest I earn covers these costs.

I still predict the rouble will get stronger over the long term. When oil prices go back to the $80 a barrel range (which is predicted), the rouble will appreciate accordingly. I see it settling around 45r = $1 by the end of 2015/early 2016 (when sanctions will also be lifted). With a stronger rouble, which has been accruing 18% interest, there will be a nice little nest egg somewhere down the line.

*108 was the rate on xe.com - exchange shops were switching at 120+. This means realistically speaking, people are making a bucket load more cash than 3 months ago, if wanting to exchange their money pay check to pay check.

Sashadroogie · Posted: Wed Mar 25, 2015 7:49 am Post subject:

The other main point to remember is most income, for those interested in money, is in private students. Most organised teachers charge about 50 euros per 90 mins minimum. Some more specialised lessons can get 75. For very niche lessons, e.g. legal English, or at awkward times and locations, any amount can be charged, it sometimes seems.

The devaluation has not changed that much. Many of my clientele still pay in foreign currency, with not so much as a bat of an eye. The other less wealthy have switched to rubles - average rates being between 3,000 to 4,000. Still a tidy sum for an English lesson. Certainly in Europe there is nowhere else that pays like that.

If teachers feel that their salaries have halved, then that seems to indicate that they had chained themselves to a McSchool. Even without currency fluctuations, they would have been missing out on lots of earnings, e.g. private lessons. Though, of course, if this is your first or second year teaching in a McSchool there might not be too many other options open, given lack of experience and/or abilities. So perhaps it would be better to view Maccers as they should always be seens as - places to gain experience, and not money.

The sky hasn't fallen in. There is still gold to be found in this Klondyke. But as usual, the requisite skills are required. Nothing has changed there either...

nfig77 · Posted: Wed Mar 25, 2015 3:33 pm Post subject:

nfig77 · Posted: Wed Mar 25, 2015 4:24 pm Post subject:

Sashadroogie · Posted: Wed Mar 25, 2015 6:49 pm Post subject:

In 2008 dollar contracts caused uproar amongst many EFLers when the dollar imploded. Remember that? Were you in Russia then? I'd be very reluctant to advise anyone to fix a contract with schools in dollars only. The risk isn't any lower than in the euro.

A mixed income seems to be the safest bet. Hedge-wise.