12:22 12.11.2015

Cabinet approves market-based salaries for heads of state companies

2 min read
Cabinet approves market-based salaries for heads of state companies

The Ukrainian government has approved a draft resolution drawn up by the Economic Development and Trade Ministry of Ukraine on approving market-based salaries for the heads of state companies, Economic Development and Trade Minister of Ukraine Aivaras Abromavicius has said.

"Today the cabinet passed our resolution on the increase of salaries to heads of state companies. We've been fighting for this for a long period of time, and finally it was adopted. We're waiting for the prime minister to sign everything in the coming days," the minister told reporters after a cabinet meeting on Wednesday.

He said that the absence of appropriate wages, along with political pressure, is the main obstacle in attracting skilled employees to manage state companies.

Earlier, the ministry noted that state companies have enough funds to provide market wages for honest and professional managers. As an example, the ministry cited PJSC Ukrgazvydobuvannia, at which new board chairman Oleh Prokhorenko restored order in the procurement system, which allowed the company to save UAH 350 million in only four months.

A government source told Interfax-Ukraine that after tenders to select the heads of state enterprise Ukrspyrt and PJSC Centrenergo failed, a review of their terms would be carried out and market wages would be offered. Also, additional barriers on participating in tenders should be removed, in particular, the Ukrainian nationality and language skills requirements.

Additionally, the tender committee at the government initiates the creation of the commission to select candidates to head largest state companies that will subordinate to the committee, and remove this function from the ministries, the source said. The source said that this would allow expanding a list of candidates, receive assistance from donors to involve human resource companies and accelerate the selection process.

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