"United Mining and Chemical Company" | News | VMMP subsidiary to award bonuses as earlier

VMMP subsidiary to award bonuses as earlier
VMMP subsidiary to award bonuses as earlier

21.08.2017

The old provision on awarding bonuses of April 1, 2015 will be in effect at Vilnohirsk Mining and Metallurgical Plant, according to a decision of the company's board approved at one of the latest session.
Representatives of the trade union of the plant appealed to the VMMP administration and the company's central office to keep the previous version of the provision on awarding bonuses. The company reviewed the trade union's arguments, which also influenced the final decision of the board on this issue.
As a reminder, on February 1, 2017, VMMP subsidiary appealed to the members of the board with a proposal to introduce a new system of awarding bonuses to its employees. The document envisaged a more differentiated approach to awarding bonuses depending on achievement of certain performance indicators and sales of products.
“The proposed system of bonuses turned out to be very complicated and burdening for the company. It was not possible to introduce it. That is why the decision was approved to discard this proposal and keep the current provision on awarding bonuses to the employees of the subsidiary of April 1, 2015,” comments PJSC UMCC Acting Chairman of the Board Oleksandr Hladushko.
The new provision on awarding bonuses proposed by the subsidiary for consideration by the board was to come into force on July 1, 2017 and was postponed for further review.
In the course of this review, it turned out that in order to introduce the provision VMMP needed to envisage additional funds for acquisition of software. These expenses were not envisaged by the financial plan of the company.
For keeping the records of awarding bonuses and performing calculation, it is required to additionally employ a specialist, whose position is not envisaged by the personnel chart. It also turned out that the proposed provision did not take into account unforeseen production situations with consequences that could negatively affect the results of bonus indicators or prevent from determining such results.
Taking into account the difficulties that make it impossible to adopt the new provision, the board decided to agree with the proposal of the subsidiary's director and PJSC UMCC board member Andriy Storchak to cancel the new provision due to the inexpediency of introduction of such system of awarding bonuses. The decision was approved by voting.
“We understand that the issue of awarding bonuses is very sensitive for every employee of the plant. The attempt to differentiate awarding bonuses was caused by the desire to avoid the situation, when the employees would not receive bonuses in case of difficult situation with product sales or in case of decrease of the output level. That is why the board gave the subsidiary a time to work out the new system of awarding bonuses with all subdivisions. The opinion of the trade union committee and subdivisions of the subsidiary was taken into consideration. In the course of discussion, some factors were uncovered that make it impossible to introduce the differentiated approach to awarding bonuses at this moment. That is why the board decided to keep the existing system of awarding bonuses at the plant,” comments Hladushko.
The condition of the global markets is stable for now, while the demand for titanium raw materials is slowly increasing due to objective factors. That is why, one can hope that the old system of awarding bonuses will work in the interests of the employees, says Hladushko.