New SE ZTMC Collective Agreement

165 delegates, veterans of the Enterprise, and guests – representatives of central bodies of the industry and amalgamated trade unions of Ukraine – took part in the conference of the workers of Zaporozhye Titanium & Magnesium Combine (total number of workers of the Enterprise is 3,516) to sign the Collective Agreement 2011.

While drawing up the results of collective agreement implementation in the past year, the conferees mentioned that due to the achieved mutual understanding between the workers and the management of the Enterprise on the matters of overcoming the economic crisis by ZTMC and conscious limitation of a range of supplementary pecuniary preferences for the workers of the Enterprise, the Combine managed to preserve its leading position on Ukrainian and foreign markets. Which, in its turn, made it possible to ensure ZTMC with the volume of works necessary to maintain its run capability.

In the conditions when enterprises of the industry has wages debts (total sum of the debt is 5 billion 229 million UAH as of January 1 of the current year) and a range of enterprises still work on a part-time working day or week schedule, ZTMC management managed to return to the regular working regime, develop ZTMC Modernization Programme together with Titanium Institute, and start overhauls of the main manufacturing equipment. The conferees recognized the results of implementation of the Collective Agreement 2010 as satisfactory.

While discussing the provisions of the Collective Agreement, the conference delegates noted the necessity to maintain the route of tough saving of all the resources at the Enterprise in order to ensure its further effective economic, technical, and technological development. Since only profitable operation of the Combine may become a basis of a collective agreement and the Financial Plan 2011 still provides for 30 million UAH losses, including those that occured owing to energy charges unsettled by the government (their part in the production costs reaches 40%), it is not possible to restore a range of pre-crisis social benefits so far.

At the same time, the new Collective Agreement provides for wages increase at the Combine in 2010 by not less than 18%. It also maintains and extends a range of positive achievements of the past year, which includes organization of summer health improvement of the workers of the Combine and their families, financial assistance for the workers in need, and a range of other preferences.

Conference delegates of the workers of the Enterprise unanimously decided to sign the Collective Agreement 2011, which is aimed to ensure the required benefits package for the workers of the Combine, and an effective implementation of the outlined modernization plans for the Enterprise.

Vladimir Sivak, General Manager of SE ZTMC:
“The developed ZTMC Modernization Programme is a long-term and rather cost-based matter. Today all the efforts of the workers of the Enterprise are aimed at profitable, break-even operation of the Combine. But, at the present time, because the issue of special energy charges for the Combine at the state level remains unresolved, as well as there is no effective investor to take part in the process of the Combine development, the economics of ZTMC can not be competitive.”

Ludmila Logvinova, Chairperson of ZTMC Trade-Union Committee:
“In the whole the Collective Agreement 2011 is prepared with account for the actual financial possibilities of the Combine. Of course, more would be better. But I am sure that, if economic situation at the Combine improves, we will be able, when drawing up the results of the Collective agreement implementation for the six months, to supplement the document with new social benefits for our workers.”