Ukrnafta continues with restructuring and reviews salaries of employees

The management of Ukrnafta continues with the restructuring process to improve efficiency and competitiveness of the company, including improvements of the remuneration system.

As part of this process the management of Ukrnafta has announced its decision to increase base salaries and tariff rates of employees by 15%. Moreover, blue-collar employees will be entitled to an additional monthly salary supplement in the amount of 15% of their monthly income.

The salary increase will become effective from 1 October 2016 and will apply to employees of all units and the head office (with exception of petroleum product retail units and ammonia production division of Poltavanaftogaz). The employees of the petroleum product retail units and ammonia production division of Poltavanaftogaz will see their salaries increase in December 2016 concurrently with the minimal wage increase in the country. This decision does not apply to the employees on individual work contracts.

This is the second salary increase in the company this year - in May 2016 base salaries and tariff rates of employees were raised by 5%. The average monthly salary at Ukrnafta for 6 months of 2016 was 6 662 UAH.

Mark Rollins, Chairman of the Executive Board of Ukrnafta:  

‘Ukrnafta is considerably below the industry average both in terms of salaries and productivity. We have started the restructuring of our business units and revision of salaries is part of the project to transform the company. However, we should be mindful that without the out-of-court sanation the future of Ukrnafta and well-being of our employees will be under threat.’

In March 2016, the management of Ukrnafta initiated out-of-court sanation of the company. The plan will allow Ukrnafta to pay off ‘legacy’ arrears before the state, but also commence implementation of a long-term strategy to modernize its assets and increase output of oil and gas. In April 2016, Ukrnafta launched restructuring process to improve efficiency and streamline business processes. In July 2016, the company proceeded with restructuring and downsizing of its head office.

 

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