The Cabinet of Ministers of Ukraine, instead of properly responding to the trade union’s allegations of violations of workers’ rights by Ukrzaliznytsia, redirected the complaint to the offender itself.

Therefore, today, on August 2, our trade union appealed to the Verkhovna Rada Committee on Social Policy and Veterans’ Rights to exercise parliamentary control over the actions of the Cabinet of Ministers and take appropriate measures to respond to violations of the law by the Board of the Joint Stock Company Ukrzaliznytsia.

The appeal states that on 10.07.2024, the trade union appealed to the Cabinet of Ministers of Ukraine, which, in accordance with paragraph 54 of the Charter of “Ukrzaliznytsia “, performs the functions of the supreme body of the company, to take urgent measures to eliminate violations of the law by “Ukrzaliznytsia” (letter No. 416/04).

The Cabinet of Ministers of Ukraine instructed the Ministry of Communities, Territories and Infrastructure of Ukraine to consider our letter, and the Ministry, in turn, sent the letter to the direct violator of the law, Ukrzaliznytsia (Government Order No. C-12515/26-24/1 of 12.07.2024 and No. 17069/0/2-24 of 17.07.2024, letter of the Ministry of Infrastructure No. 4035/0/3-24 of 17.07.2024).

In a letter to the Cabinet of Ministers, the trade union stated that on June 27, 2024. The Board of Ukrzaliznytsia, which is not a party to collective bargaining agreements, has made another decision to suspend payments guaranteed by collective bargaining agreements. This decision illegally, unilaterally, without the participation of employee representatives, suspended the provisions of about 700 collective agreements across the country on the payment of financial assistance for the rehabilitation of railway workers.

By doing so, the Board of Ukrzaliznytsia violated the requirements:

– ч. 3 Art. 59 of the Law of Ukraine “On Joint Stock Companies“;

– п. 117 of the Charter of JSC “Ukrzaliznytsia“, approved by the Resolution of the Cabinet of Ministers of Ukraine No. 735 dated September 2, 2015;

– п. 3.7.5 of the current Sectoral Agreement between the State Administration of Railway Transport of Ukraine and trade unions;

– Art. 14 of the Law of Ukraine “On Collective Bargaining Agreements“;

– Art. 11 of the Law of Ukraine “On the Organization of Labor Relations under Martial Law”;

– Art. 21 of the Law of Ukraine “On Trade Unions, Their Rights and Guarantees of Activity“.

Response to our appeal dated 10.07.2024. provided by JSC “Ukrzaliznytsia” (letter of 23.07.24 No. TsCUP-12/1107). This response once again demonstrates that Ukrzaliznytsia has not eliminated the violations of the law and has neither clear deadlines nor specifics on repayment of the debt to employees, thus trying to legalize the non-payment of part of the salaries to employees.

The trade union draws the attention of the parliamentarians to the fact that “Ukrzaliznytsia” did not exercise its right to initiative provided for in Article 11 of the Law of Ukraine “On the Organization of Labor Relations under Martial Law”, but only violated this provision. Article 11 of this Law provides that during the period of martial law, certain provisions of a collective agreement may be suspended at the initiative of the employer, rather than by unilateral decision of the employer. The employer’s initiative is not a mutual agreement of the parties to suspend certain provisions of the collective bargaining agreement, but is the basis for starting collective bargaining in accordance with the procedure provided for in Article 14 of the Law of Ukraine “On Collective Bargaining Agreements”.

Thus, the response was not given on the merits of the appeal and not by the state body to which the trade union had applied. The trade union’s letter was filed as a complaint against the actions of the enterprise (Ukrzaliznytsia), but the appeal was not considered and the issue was not resolved. We believe that this is an unlawful refusal of the Government to consider our appeal.

From this we can conclude that the supreme governing body of the company (the Cabinet of Ministers of Ukraine) actually refused to make any decision on the activities of the management board and allowed Ukrzaliznytsia to continue the practice of violating the law and collective bargaining agreements.

This attitude of the Government to the actions of the members of the Board of “Ukrzaliznytsia” is an open indulgence in their illegal actions. Failure to properly consider our appeal about the violations will lead to similar actions by the members of the Board of Ukrzaliznytsia in the future.

Railroad workers are employees of critical infrastructure facilities, railroad workers rank only 12th among workers in Ukraine’s industries in terms of salaries, railroad workers are restricted in their right to vacation, they risk their lives working in frontline areas, and there is social injustice against them (railroad workers need rehabilitation and treatment in the same way as teachers and civil servants who are entitled to financial assistance for rehabilitation under martial law).

The social consequences of Ukrzaliznytsia’s actions in not paying health benefits to railroad workers starting in 2022 are negative for the industry’s employees. According to our estimates, the debt to employees for health benefits each year amounts to approximately 5% of the total payroll of all employees of Ukrzaliznytsia. This indicates an artificial underestimation of the income of railroad workers, which has become the main source of profitability of Ukrzaliznytsia.

Based on the above, in accordance with Art. 14 of the Law of Ukraine “On Committees of the Verkhovna Rada of Ukraine”, the trade union proposed that the Committee take appropriate response measures and oblige the Cabinet of Ministers of Ukraine to stop violations of the law by the Board of Ukrzaliznytsia by resuming payments of financial assistance for health improvement in accordance with collective agreements and developing a schedule for repayment of debts to employees.

WE EXPLAIN

According to Art. 14 of the Law “On Committees of the Verkhovna Rada”, the control function of the committees is, in particular, to analyze the practice of applying legislative acts in the activities of state bodies, as well as to send materials for appropriate response to the Verkhovna Rada and state bodies.

In accordance with the Resolution of the Verkhovna Rada of Ukraine No. 19-IX dated 29.08.2019 , the Verkhovna Rada Committee on Social Policy and Protection of Veterans’ Rights is responsible for, among other things, state policy in the field of regulation of labor relations and employment; development of social partnership and activities of public associations of the parties to social partnership.

Therefore, this committee should respond to the trade union’s appeal and take appropriate measures regarding the actions/inaction of the Cabinet of Ministers regarding the illegal decisions of Ukrzaliznytsia.