Ukraine

Volodymyr Zelenskyy initiates consideration of repayment of wage arrears at the enterprises of Ukroboronprom

The Head of State noted that in the winter, people had worked in unheated premises at one of the enterprises.

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President of Ukraine Volodymyr Zelenskyy initiates consultations with the participation of members of the Government in order to resolve the issue of wage arrears at the enterprises of Ukroboronprom.

During a working trip to the Kharkiv region, Volodymyr Zelenskyy visited the enterprises of Ukroboronprom and met with the staff of three plants. Employees of the enterprises complained to the President about wage arrears. At present, wage arrears at O.O. Morozov Design Bureau of Kharkiv and Kharkiv State Aviation Production Enterprise amount to about UAH 235 million. In total, as of November 1, 2019, 43 enterprises of Ukroboronprom owe UAH 463 million to their employees.

“Wage arrears at these plants are up to four years. Very low wages. For example, at an aircraft factory, the salary is 3500 UAH. How can a person work for the state under such conditions?” Volodymyr Zelenskyy said during a meeting on problematic issues of Ukroboronprom in Kharkiv.

The Head of State noted that in the winter, people had worked in unheated premises at one of the enterprises.

“I was told that in the winter people worked in premises where the temperature was zero degrees. That is, we treat people badly, and then we want them to respect the authorities, Ukraine, stay in Ukraine, and we want the enterprises to work?” Volodymyr Zelenskyy said.

The President of Ukraine called on Director General of Ukroboronprom Aivaras Abromavičius to hold consultations with the Government on resolving the issue of repayment of wage arrears.

“The Prime Minister must bring together the entire government, so that all law enforcement officials are present. So that we understand who the customer is, how many tanks. Why do we make products for Thailand and not for Ukraine? Why do we have great planes, great designers but we don’t produce anything and nothing flies?” the President said.

For his part, Aivaras Abromavičius reported that there were 137 companies in Ukroboronprom, 21 of them in the occupied territory. 70 companies are profitable and 46 are unprofitable. The enterprises employ 68 thousand people, the average salary is 12.9 thousand hryvnias. The lowest wage is at the Kharkiv Aviation Plant.

“Almost all enterprises have problems. The problems are profound, for the most part of financial and managerial nature, in particular because of the previous leadership of the country. The share of Ukroboronprom companies in the state defense order is constantly decreasing and actually decreased to 30%. At the same time, the private share is increasing… Unfortunately, most of the state defense orders received by private companies went to companies related to the previous politicians,” the Director General of Ukroboronprom explained.

Aivaras Abromavičius offered to convene a meeting of the National Security and Defense Council of Ukraine to consider measures for financial rehabilitation of the defense-industrial complex, in particular replenishment of the authorized capital of Ukroboronprom with the subsequent repayment of debts.

The President, for his part, underscored the priority of repayment of wage arrears. “The repayment of wage arrears of the enterprises – participants of Ukroboronprom may be held through the replenishment of the authorized capital of Ukroboronprom,” Volodymyr Zelenskyy summed up.

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