The Union of Railway Workers of Ukraine has called on the government to allocate the profit of Ukrainian Railways (UZ) to raise wages

The Union of Railway and Transport Construction Workers of Ukraine officially appealed to the Cabinet of Ministers to reconsider the norm for allocating profits to the state for the year 2023, this is reported by the railway transport news portal Railway Supply.

In particular, the union demands the initiation of a review of the decision according to which Ukrzaliznytsia (UZ) is required to allocate 50% of its profits to the state.

Hungarian Ganz-MaVag is preparing a bid to acquire Talgo

The company should also be given the right to allocate the profit (dividends) for 2023 primarily for the social support of workers, including increasing the hourly wage rates and salaries of railway workers.

“Railway workers do not feel the support of the state because instead of obliging Ukrzaliznytsia to fulfill the norms of the Industry Agreement, the government has decided to approve the basic norm for allocating the share of profit for dividends based on the financial and economic activities in 2023 of economic entities in the authorized capital of which the state has corporate rights. In other words, instead of the necessary state support for railway workers who work in the conditions of war and receive low wages for their labor, the government is making a decision that will lead to even greater impoverishment of the company’s workers,” the letter states.

The union reminded that for Ukrzaliznytsia, a norm is established to allocate 50% of the profit, provided that 30% of the profit will be allocated for financing capital investments approved in the consolidated financial plan for 2024, the reconstruction of critical railway infrastructure, and the renewal of rolling stock.

“So, it is provided that 50% will be allocated to the state, 30% for the reconstruction of critical railway infrastructure and the renewal of rolling stock. And what will then be left for the workers who earned these funds? And this is despite the fact that railway workers, starting from 2022, do not receive full-length vacations, additional and social vacations, material assistance for recuperation, etc.,” the appeal says.

As reported earlier, Ukrzaliznytsia is required to allocate no less than 50% of dividends to the state budget.

Rail business, industry, and railway technology news from Railway Supply that you might have missed:

CRRC Sifang will supply KCI-SFC120-V model electric trains for Jakarta