OREANDA-NEWS. PJSC “ArcelorMittal Kryvyi Rih”, the largest company of mining and smelting sector of Ukraine, starting from May 1st, 2014 rises the tariff rates and monthly payments of the employees by 6%. These changes will touch tariff rates (salaries) of workers and positional salaries of managers, specialists and employees of the plant. Previously, the company raised tariff rates and monthly payments in December 2013 by 6,2%, thus for the past 6 months total incensement is 12.2%

The decision was made aiming at improving of social protection of PJSC “ArcelorMittal Kryvyi Rih”'s employees in terms of complicated economic situation in Ukraine. At the same time, this initiative takes into account necessity of withdrawing of the plant to the breakeven point and realization of large-scale investment program (1.7 billion UAH in 2014) in conditions of the price drop for steel products, uplift of the price for energy resources and other kinds of raw materials, and also limitation of operational assets, caused by VAT refund debt, which appeared in the previous years.

In 2012, the plant's average monthly payment increased by 16.1%, and by 9.6% in 2013. According to OP “Metallurgprom” in 2013 PJSC “ArcelorMittal Kryvyi Rih” became one of the leaders of average monthly salary rate among the largest companies of mining and smelting sector of Ukraine, and average monthly payment amounted to 6 044.9 UAH, including Voluntary Separation Program payments and 13th monthly payment (or 5 796,5 UAH excluding VSP payments).

Irina Yefymchuk, Director of HR Department of PJSC “ArcelorMittal Kryvyi Rih”: “In 2012-2013 as a consequence of crisis occurrences in world steel sector our plant worked with loss of 4.4 billion UAH, and we have to reach the breakeven level in the short term to provide stable operations of the plant, continue its modernization, preserve wide range social program in full. We raised salaries for the second time in the past half of the year and such decision is rather social, than economically based. At the same time, we understand that sustainable growth of wages would be possible only with the growth of its productivity”.

Reference: The structure of the monthly payment at PJSC “ArcelorMittal Kryvyi Rih” consists of basic (constant part) payment and variable part, which includes premiums, bonuses and allowances that are the reward for work in excess of the established norms, for labor progress, special working conditions. Existing periodicity bonuses for the main results of operations in PJSC "ArcelorMittal Krivyi Rih" - 1 month, and the size of awards are set as a percentage of salary or rate and depend on the actual implementation of the production plan, and the quality of manufactured products or semi-finished products. In addition, the company provides discretionary bonuses (for performing particularly important tasks, jubilarians premium, etc.), as well as remuneration for its performance in the year.