OREANDA-NEWS.  The situation in the power industry negatively affects Ukrainian miners. This is the common conclusion of DTEK’s management and leaders of the Independent Trade Union of Miners of Ukraine. At a joint meeting the parties discussed the challenges the Ukrainian coal sector is currently facing and DTEK’s operations in the present conditions.

 The participants of the meeting expressed their concerns that the coal surplus situation had been even more aggravated by the operation of small illegal mines, so called kopankas, which push legitimate mining companies from the market. Another challenge is collections for electricity supplied to state-financed mines and public utility companies, which do not pay their electricity bills in full. Incomplete payment is damaging not only for the energy sector, but also for miners, who, in their turn, are underpaid for coal shipped to power plants. The total debt to Ukrainian electricity generators has reached about UAH 11.5 billion.

 Despite the complications in the industry, DTEK has been paying wages and salaries to its miners without any delays and closely cooperating with trade unions to provide better social protection to its employees.

 When discussing the reorganisation of DTEK’s governance system, the participants agreed that the improved efficiency of the company as a whole would have a positive influence on both employees and the regions where the company has coal mining and electricity generating operations.

 Besides, DTEK has decided to review its approach to outsourcing of non-core functions. The company is not going to outsource any production processes, and the trade unions will be more involved in the process of securing social guarantees for company’s former employees who will be transferred to the outsourcing service providers.

 The participants paid special attention to a grades-based remuneration system (GRS) in place at some DTEK’s enterprises. DTEK’s executives explained that they had taken into account all provided feedback and were perfecting the GRS. In particular, the company plans to cancel annual personnel appraisal for workers and design a new procedure of individual motivation for employees.

 “Today, the situation in the sector has turned for the worse: on the back of a significant coal surplus in the country, when options where to sell are limited, the shadow coal market is about 6 to 7 million tonnes,” said Mykhailo Volynets, the Chairman of the Independent Trade Union of Miners of Ukraine (NPGU). “In this time, close cooperation between employers and employees is especially vital. We are ready to continue our dialogue with DTEK and hope to successfully resolve the challenging issues. It’s important as DTEK is the only company in our country capable of financing coal mining enterprises.”

 “Today’s meeting with the leaders of NPGU has proven that in many aspects we share a common approach to addressing current challenges,” said DTEK Chief Operating Officer Yuriy Ryzhenkov. “Both parties understand the ongoing processes and both are determined to move forward together. We will continue to work together to resolve all the issues and concerns of our employees, which have been raised at today’s meeting. This has been our first meeting and I hope such joint meetings will become a regular practice and help us improve cooperation with the trade union, which means enhancing the company’s efficiency”.