Business news from Ukraine

GOVERNMENT SIGNS TRILATERAL AGREEMENT WITH EMPLOYERS, TRADE UNIONS FOR 2016-2017

25 August , 2016  

KYIV. Aug 25 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine, Federation of Employers of Ukraine (FEU) and Federation of Trade Unions of Ukraine (FPSU) have signed a general agreement on regulating the key principles and standards for implementing the social and economic policy and labor relations in the country for 2016-2017.

An Interfax-Ukraine correspondent has reported that Ukrainian Prime Minister Volodymyr Groysman, Deputy FEU Head Oleksiy Miroshnychenko and FPSU Head Hryhoriy Osovy signed the document.

“We must create relevant labor conditions, produce competitive products and pay fair salaries to Ukrainian citizens. I said this before and today I will repeat this at a government [meeting] – labor of Ukrainian citizens is underestimated,” Groysman said during the signing of the agreement.

The prime minister said that ministries must deepen cooperation with trade unions and employers.

The agreement will be implemented in 2016 and 2017. Osovy said that trade unions are waiting for an increase in minimum wages by 20% after the signing of the agreement.

Groysman said that the government first since 1993 has passed a resolution on the signing of this trilateral agreement. According to the FEU, this is the 11th similar agreement in the history of the country.

The government said that the document contains 191 provisions and three sections: increase of competitiveness of national producers and provision for a rise of employment; salaries, conditions, labor protection and social protection of employees; and social dialog. The document has seven attachments.

The economic section contains general agreements of the sides on taking joint measures aimed at development the domestic market, support of Ukrainian production and solving issues of concern. They include agreements to increase crediting of the real economic sector, pay the public debt to business in VAT refunds and overpaid profit tax.

The sides will hold consultation on setting prices/tariffs of natural monopolies at the economically justifiable level, their regulation and joint control, minimizing their negative impact on the public and producers, as well as targeting assistance to some categories of citizens.

The social section determine the pace of growth of average salaries for the non-budget-funded areas; the rate of remuneration for first labor grade workers and extra bonuses to the remuneration rates and salaries.

Attention should be paid to payment of wage arrears and preventing them. Also important are taking agreements on labor protection, social protection and humanitarian issues.

The parties of the agreement are 95 Ukrainian trade unions represented by five unions of trade unions, 93 organizations of employers and their associations (28 sector and 65 territorial organizations) represented by four Ukrainian unions of employers.