WAGE SETTLEMENT MIGHT FACILITATE REFORM OF UKRAINE’S COAL SECTOR.

In two recent appointments, Ukraine apparently seeks to ensure union support for the planned reform of the coal sector and to share responsibility for the social costs of that reform. Ukrainian Coal Industry Workers’ Union (PRVP) leader Viktor Derzhak has been appointed president of the newly created state holding company, Vuhillya Ukrainy. The PRVP’s deputy leader, Mykola Podhorny, has been appointed Deputy Minister of the Coal Industry.

These appointments accompany a wage settlement between the government and PRVP, whose members had picketed the presidency, government and parliament buildings in Kyiv from May 27 nonstop through June 26. Under the agreement, the government will: (1) disburse the overdue June wages by July 20, allocating 200 million hryvnyas (approximately US$100 million) from the state budget; (2) pay wages on schedule thereafter; and (3) make up for the pre-June wages by the end of 1998. To generate the necessary funds, Vuhillya Ukrainy is required to sell the coal for cash, ending the barter system which has prevailed until now. That system is considered largely responsible for the wage arrears. (UNIAN and other Ukrainian agencies, June 26)

The government recently concluded a separate settlement with the smaller and more militant Independent Union of Miners of Ukraine (NPHU), which had struck some forty-five mines from May 4 through mid-June. NPHU obtained greater concessions than PRVP did; but the government’s ability to deliver to NPHU is questionable (see The Monitor, June 12 and 19).

KUCHMA, KWASNIEWSKI MEET IN KHARKIV.