«Don’t allow destroying a coal and power complex of Ukraine!» - mine-workers stated about it openly Печать
23.03.2015 09:26

On 2 - 3 March 2015, for the second time this year Ukrainian mine-workers participated in the protest action in Kiev. The decision to picket Verkhovna Rada of Ukraine and Cabinet of Ministers of Ukraine was made on 17 February 2015 at the IIIrd Plenary Meeting of the Central Committee of mining industry employees which consolidates all big enterprises of mining industry of the country. It was also decided to express the lack of confidence to Mr. V. Demchyshyn, the Ministry of mining and power industry of Ukraine. Inter-departmental committee set up by the Prime Minister direction was sitting and reviewing the protest action results held on 28-29 January for a month. The memorandum document was the meeting summary which was not signed by the Unions leaders as this document did not contain the definite solutions on the overcoming of crisis at the mining industry.

The protest action was held on the day when the parliament was reviewing changes in the state budget for the current year with the purpose to call people’s deputies for making provisions for funds for jobs and mines development in the state budget. The key mine-workers’ demands were as follows: take immediate measures on stabilization of critical situation at the mining industry and power complex, don’t allow destroying the strategic branches of industry.     

During the protest action Mine-workers of West Donbas expressed their solidarity with their colleagues working at the state enterprises and who found themselves before the mass dismiss, and they demand to stop so-called «reformation» of mining industry when a lot of mines are expected to be close and about 25 000 mine-workers are dismissed. Currently mine-workers of state-owned companies received only 40% of their wages for December last year, and it is not known when the rest will be returned.

Paying discipline should be installed in the country. Problems in the industry have not come today. These debts of the state have been accumulating for many years. Mine-workers and power specialists have performed their tasks responsibly: produce coal and power in required for the country quantity. At the same time the debt of State-Owned Company «EnergyMarket» before power specialists has reached nearly 19 billion UAH.

The Ministry has taken a constructive stand  -  there is no money for subventions, benefits and social security were cut, salaries have not been paid, pensions were imposed with taxes. Most mines are considered unprofitable and subsidized. It was announced that this year the most mines would be sold or close, an mine-workers would be redundant. Vladimir Demchyshyn, The minister of power and mining industry of Ukraine, is a new man in the industry. He used to be an investor – banker and was used to working with mathematics logic – negative balance – means it needs to get sold, a positive balance – need to get purchased. But such approach does not work at the energetic market.  

Officials should understand that mine-workers and power specialists are not spongers. They work much and hard to assure the country with «black gold» and power. The state as a regulator pays for their goods unfair and non-market price.

The state first of all should protect the domestic producer. It is impossible to admit discrimination of domestic producers before importers, especially at this complicated for the economy time. Currently the price of imported coal is higher 2,000.00 UAH per MT. At the same time the cost of our domestic coal is twice as low and it costs 1,000.00 – 1,200.00 UAH per MT. All experts say that the fair and reasonable price of the gas group coal can’t be lower than 1,500.00 UAH per MT.  And current rate does not cover even its cost price. The similar situation is in the thermal generation where the rate is reduced monthly. But the US Dollar increases, increases in prices, but the rate decreases? It is necessary to bring rates for power delivery to economically justified. They should include real market prices for coal. We used to have our power in plenty. But at the end of the last year the Ministry of Energy made a criminal contract for the power import from Russia. In January 2015, Ukraine purchased 260 mln kWt, in February twice as much - 600 mln kWt. That power was paid by the PowerMarket but the debt before the domestic generation increased more than 1 billion UAH.  

     The Fundamental principles of exclusion of fuel and energy sector from crisis situation state as follows:

  • Make changes in legislative acts to renovate social guarantees of employees and pensioners which existed before 1 December 2014. Provide wages adjustment for the inflation rate.
  • Make changes in the law of Ukraine “On the State Budget of Ukraine in 2015” regarding costs for the state support to coal-mining companies.
  • Shutdown of activities of the state-owned mining companies should be assured and supported with obligatory state funding. Load entirely generating capacities of Thermal Power Plants using the gas group coal and domestic coal-mining companies.
  • Import of energy should be performed only as a backup option when the capacity deficiency arises in the energy system of Ukraine.
  • Publish the Summary results of occupational investigation conducted by the Cabinet of Ministers of Ukraine regarding concluded contracts for the imported power from Russia and power supply to the Crimea.
  • Fix wholesale market price power adjusted for market cost of domestic coal supplied to our Thermal Power Plants. Identify mechanism which will allow paying off debts for power.
  • Specify mechanisms which will assure timely and complete payment for consumed power by consumers, which expenses are fixed at the expense of the state budget funds of all levels.
  • Establish the coordinating board/council on Fuel and Power Sector issues to avoid of destructing fuel and power sector of the country because of unprofessional actions of the Ministry management. Subordinate the council to Anti-crisis power headquarters of Ukraine.
  • Draw the representatives of Unions in the work at the coordinating board/council and restore a broken by officials dialogue between the power and labor staff of the energy sector.

On 3 March 2015, Sergey Yunak, during the meeting with Vladimir Groisman, speaker of Verkhovna Rada of Ukraine, called numbers of PJSC «DTEK PavlogradCoal» production measures. Mine-workers of Pavlograd, Ternovka and Pershotravensk produce 19 mln of MT coal per year that is the earnest of success and stability of coal and power sectors. «We were heard by the Speaker that currently a systems approach at the power market is required, - said Sergey Ivanovich. – The Speaker of Verkhovna Rada agreed with the need of the fair relationship to all its “players” and promised to review an issue associated with the debts before the power market for supplied coal and produced energy. Vladimir Groisman also promised to resume the coordinating board/council activities on problems at the coal and energy sectors along with specialists from Fuel and Power sector, people’s deputies supporting development of mining industry of Ukraine.”