Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Minimum Wage Fixing Convention, 1970 (No. 131) - Ukraine (Ratification: 2006)

Article 2 of the Convention. Binding force of the minimum wage. Further to its previous observation regarding the situation at the Nikanor-Nova mine, in particular as regards compliance with the applicable minimum wage for the mine sector and the results of inspection visits, the Committee notes the Government’s latest information that the wage scales at the mine have been established based on a minimum wage of 1,004 Ukranian hryvnia (UAH) (approximately €95), in accordance with the provisions of section 14 of the Act on wages. This stipulates that the payment of wages below the rate determined by an applicable collective agreement, but not lower than the statutory minimum wage rate may be used for a period not exceeding six months in order to overcome financial difficulties.

The Government further indicates that enterprises in the coal sector are currently taking steps to seek out additional funding to transfer workers to a wage scale based on a minimum wage of UAH1,073 (approximately €101). The Committee observes, however, that the current minimum wage is UAH1,118 (approximately €106) from 1 October 2012 and that, as of 1 December, the minimum monthly wage will be UAH1,134 (approximately €107).

Noting therefore that even if the current minimum wage was eventually raised for workers in the coal sector to UAH1,073, this amount would still be considerably below the minimum pay rates fixed for October and December 2012, the Committee requests the Government to indicate how it intends to ensure that the minimum wage for workers in this sector will be brought back to the level set out in the mine sector collective agreement (i.e. not less than 120 per cent of the legal minimum wage).

Article 3. Socio-economic criteria for determining the minimum wage. Further to its previous comment, the Committee notes the Government’s explanations regarding the term “minimum consumer budget” as defined by Act No. 1284 of 3 July 1991. This is stated to be the range of food and non-food goods and services, determined in physical and monetary terms, that meet basic human physical and socio-cultural needs. The term “minimum subsistence level” is defined by Act No. 966 of 15 July 1999, to be the monetary value of a range of foodstuffs adequate to provide for the normal functioning of the human body and the maintenance of health, plus a minimum range of non-food items and a minimum range of services required to meet basic social and cultural needs.

The Government indicates that the minimum subsistence level is determined pursuant to Order No. 656 of the Cabinet of Ministers, dated 14 April 2000, using a standard costing method for one month and for one person and is calculated differently for each of the basic social and demographic groups in the population on a basis of food and non-food products and services.

The Committee notes, in this regard, the concluding observations of the United Nations Committee on Economic, Social and Cultural Rights (E/C.12/UKR/CO/5), in which that Committee noted with concern that, notwithstanding efforts to raise the legal minimum wage to the minimum subsistence level, the minimum wage did not provide an adequate standard of living for workers and their families. It also notes that according to data published by the Department of Statistics, 23 per cent of Ukrainians in urban areas and 38 per cent in rural areas receive incomes lower than the minimum subsistence level. The Committee requests the Government to provide more detailed information on the manner in which the minimum subsistence level is calculated, including copies of any official surveys prepared for this purpose, and indicate whether the selection of food and non-food items and services included in this indicator has ever been revised since the adoption of Order No. 656 in April 2000.

Article 4. Full consultations with the social partners. The Committee notes that section 219(3) of the new draft Labour Code, as it read in April 2012, provides that the minimum wage is set by the Parliament upon recommendation of the Cabinet of Ministers, and after consultations with the National Tripartite Social and Economic Council. The Committee also notes that under draft section 333(2) of the Code, the National Tripartite Social and Economic Council is composed of an equal number (20) of workers’ and employers’ representatives. The Committee requests the Government to keep the Office informed of further developments concerning the finalization of the new draft Labour Code.