Despite the fact that last year some of the harshest market conditions and the crisis in Ukrainian metallurgy significantly affected the company’s operations, ArcelorMittal Kriviy Rih fulfilled its obligations under the Collective Agreement. The report on fulfillment of the Collective Agreement in 2019 was approved by a resolution during the company’s collective conference held on March 3. The company continues to provide safe working conditions for its employees and maintains high social standards, including training and development, recreation and rehabilitation for the employees and their families.
Natalya Marynyuk, chairperson of Primary TU Organization of Metallurgists and Miners of Ukraine of ArcelorMittal Kriviy Rih: “As the employees’ representatives, we are interested in the fact that the Collective Agreement meets the needs of the employees and is fully implemented. The topics related to implementation of particular provisions of the Agreement were resolved in a working order during the reporting period with participation of the company’s managers. We considered many issues at the meetings of the company Health and Safety committee (Global Committee on Health and Safety), reconciliation committee, labor disputes committee and others. There are some problems that still remain, but now we have a social dialogue with the company’s management. We are to defend the position of the collective and resolve the employee issues together with the administration of ArcelorMittal Kriviy Rih”.
Over the past year, the company’s expenses for occupational health and safety increased by a quarter compared to 2018 and amounted to UAH 503.4 million. The costs per an employee exceeded UAH 25 thousand. The company continues to invest in improvement of working conditions, provision of the employees with special clothing and footwear, personal protective equipment, as well as implementation of initiatives to reduce injuries.
During the year a new compensation system came in place. It assumes that an employee receives a basic salary as a guaranteed part of the salary, mandatory payments in accordance with the legislation, as well as a variable part in the form of production bonus. Since May 1, 2019, the company has been raising basic salaries and hourly rates. The average salary from December 2018 to December 2019 rose by 31.5%. This is the highest growth rate among mining and steel companies in Ukraine.
The decision of ArcelorMittal Kriviy Rih administration to pay a remuneration following the results of 2019 was announced during the collective conference. The so-called 13th salary will be paid to the employees on March 13. Traditionally, this decision also applies to the subsidiaries. ArcelorMittal Kriviy Rih remains one of the few mining and steel companies in Ukraine that pays its employees the 13th salary annually. Remuneration for the previous year performance is determined based on average salary for the time actually worked.
The social standards of ArcelorMittal Kriviy Rih are one of the highest in the industry. Last year, the company’s social expenses amounted to UAH 432.4 million. Traditionally, the most significant part of the funds was allocated for recreation and rehabilitation of employees – UAH 179.7 million. Vouchers to the company’s own recreation facilities (Azov, Alye Parusa) and children’s camps (Burevestnik, Parus) on the Azov and the Black sea coast were provided to the employees at a reduced cost. The tourist camps were provided for free. In addition to summer season, the employees have the opportunity to undergo rehabilitation at the company’s Dzherelo health care center all year round.
Also, the joint resolution included a decision to extend validity of the Collective Agreement until July 1, 2021, as the current term expires on June 1. Extension of the Collective Agreement guarantees preservation of the social sphere and all social norms that are currently in force.
Yulia Chermazovych, director of HR Department, ArcelorMittal Kriviy Rih: “The key to the company’s success is a constructive, sustainable dialogue between the management and the collective. Our cooperation is aimed at establishment of such a dialogue, strengthening the role of line managers and effective interaction within the team. During the conference, we have the opportunity to see whether our employees are satisfied with the benefits provided under the current Collective Agreement, listen to their suggestions and answer the questions. Openness enables to jointly implement and control operational and social aspects, work on further improvement in all areas without any exception”. (AMKR/Ukrainian metal)