Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the Government’s report which replies only partially to the previous observation concerning the ongoing situation of accumulated wage arrears in the country. Contrary to past years, the Government, in its last report, has not provided any statistical data on the evolution of the wage debt by industry or sector, nor has it given an up to date account of labour inspection activities and the results obtained in terms of wage money recovered or sanctions imposed. Recalling that the Government has recently indicated a significant increase both in the overall amount of wage arrears accumulated by economically active enterprises as well as in the number of employees experiencing delays in the payment of their wages, the Committee asks the Government to supply detailed information regarding the evolution of the wage debt by industry or sector and geographical region, the number of workers affected, and the average delay in the payment of wages. It also asks the Government to report on any new measures or initiatives aiming at resolving the persistent wage crisis in the country.

With respect to the difficulties experienced in the coal industry, the Committee has been in receipt of a considerable number of communications concerning the Nikanor-Nova mine by which the Confederation of Free Trade Unions of the Lugansk Region (KSPLO) and the Independent Miners’ Union of Ukraine (NPG) call upon public authorities to put an end to the delayed payment of wages and to the payment of wages below the statutory minimum rate. Recalling the Government’s indication that the dispute has been referred to arbitration, the Committee requests the Government to provide full particulars on the outcome of the arbitration process and the current pay conditions in
the Nikanor-Nova mine. The Committee understands that the situation in the Nikanor-Nova mine is not an isolated phenomenon but rather characteristic of the present-day realities facing the coalmining industry in the country, i.e. high unemployment, low profitability and a poor safety record. The Committee also understands that the declining working conditions in state-run mines have led a significant number of workers to seek employment in one of the several hundred illegal mines operating in the country. The Committee requests the Government to communicate more detailed information on the employment and working conditions prevailing in the mining sector and the measures taken or envisaged to ensure the regular payment of wages at public-owned mines.

Finally, the Committee wishes to draw attention to certain points left unanswered in the Government’s report and asks the Government to address the following matters in its next report: (i) whether the practice whereby enterprises were allowed to settle wage debts by “selling” part of their own production to their employees at an agreed price and treating those sales as salary received, is no longer tolerated in law and practice, and if so, by virtue of which legal provision; (ii) whether the new draft legislation aiming at reinforcing the criminal and administrative sanctions in the event of delayed payment of wages has been adopted, and if so, whether a copy has been transmitted to the International Labour Office; and (iii) whether any concrete proposals have been formulated, in consultation with the social partners, regarding targeted activities on wage protection and the recently ratified Convention No. 173, and if so, whether such proposals have been submitted for consideration to the competent technical services of the Office.

[The Government is asked to reply in detail to the present comments in 2008.]