Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

The Committee notes the Government’s first report on the application of the Convention and wishes to draw its attention to the following points.

Article 3 of the Convention. Criteria for determining the level of the minimum wage. The Committee notes that section 9 of the Wages Act (Order No. 108/95-VR of 24 March 1995), as amended, enumerates the factors to be taken into consideration for determining the amount of the minimum wage, namely the size of the minimum consumer budget, the level of the average wage, labour productivity, the level of employment and other economic conditions. The Wages Act further provides that the minimum wage is set at an amount no lower than the poverty line as determined for an able-bodied person. The Committee would appreciate receiving additional explanations as to how the “minimum consumer budget” and the “poverty line” are defined in practice. Recalling that in order to ensure a decent standard of living for workers and their families, the minimum wage has to cover basic subsistence needs and maintain its purchasing power in relation to a basic basket of essential consumer goods, the Committee requests the Government to further clarify how social criteria, including social security benefits and the relative living standards of different social groups, are considered when determining minimum wage levels.

Article 4. Full consultation and direct participation of employers’ and workers’ organizations. The Committee notes that under section 10 of the Wages Act, the amount of the minimum wage is set by the Supreme Council based on the recommendation of the Cabinet of Ministers, in principle, once a year during the process of the adoption of the State budget, taking into account the proposals prepared of employers’ and workers’ organizations. The Committee would be grateful if the Government would elaborate on the manner in which the representative organizations of employers and workers concerned are consulted in practice, and, in particular, how their participation is ensured in the operation of the minimum wage-fixing machinery on the basis of equality, as prescribed by this Article of the Convention. It also requests the Government to indicate whether any consideration is given to the possibility of setting up an institutionalized tripartite body, which would guarantee the participation of the employers’ and workers’ organizations in equal numbers and on equal terms, with a view to conducting the consultations with respect to the determination of the minimum wage.

Part V of the report form. Application in practice. The Committee understands that, as at 1 January 2009, the statutory minimum wage was set at 605 hryvni (UAH) (approximately US$71) per month, which is currently the third lowest minimum wage rate in Europe. The Committee requests the Government to provide, together with its next report, up to date information on the practical application of the Convention, including, for instance, the minimum wage rates currently in force for workers in the private and public sectors, the approximate number of workers remunerated at the minimum wage rate, comparative statistics on the evolution of the minimum wage and the consumer price index in recent years, extracts from reports of the labour inspection services showing the number of infringements of the minimum wage legislation observed and sanctions imposed, copies of relevant collective agreements or official studies on minimum wage policy issues, etc.