OREANDA-NEWS. March 13, 2013. Unlike the end of last year, as of today there are no arrears of wages of teachers, doctors and other public employees. This was announced today at a press conference by the Minister of Social Policy of Ukraine Nataliya Korolevska. According to her the Ministry of Social Policy carries out constant monitoring of salary arrears.

"I consider debt retirement as one of the direction of social protection. Unlike the end of last year, today there are no arrears to teachers, doctors and other public-sector workers," she said.

She recalled that in late December, wage arrears to public-sector workers totaled of UAH 213.7 million. Throughout the country, the "salary" debt, according to the Minister, is large enough. As of March 1 it is UAH 1 billion 5 million. Largest debtors are state enterprises and bankrupt enterprises (UAH 244 million).

Ministry of Social Policy continuously monitors the situation on the arrears of salary, including state-owned enterprises. "Arrearage on the state-owned enterprises - this is unacceptable occurrence. Over the past two months, we had a conference call and two meetings of the Commission on the repayment of debt. According to the results of the last meeting in Kharkiv (on February 28) it was prepared an address to the General Prosecutor's Office to consider the gap in the work of central executive bodies and heads of state-owned enterprises to reduce the debt," Nataliya Korolevska said.

As the Minister noted to address the issue of debts of bankrupt enterprises is proposed to establish a guarantee institution. "As of today we have no effective tools to reduce such debt, which is UAH 413 million. Therefore, we are considering the establishment of a guarantee institution, which will be obliged to pay wages to people in the event of bankruptcy of the enterprise. Every man should be confident that, working at the company he or she gets earned money even in case of bankruptcy of an enterprise," she said.

According to Nataliya Korolevska, developing the proposals for the establishment of the guarantee institution it was studied the best European experience, particularly of Germany, France, Belgium, the Czech Republic, Estonia. "The work of the guarantor institutions is set by the Convention № 173 of the ILO, as well as the recommendations of the ILO. While Ukraine is only partially acceded to the Convention, in particular, without regard to the guarantee institution," the Minister said.

According to her, not to "produce" new structures and bureaucracy by the budget’s funds, the functions of the guarantee institutions may be charged to the Employment Fund.

Reference
According to the State Statistic Committee, as of March 1, wage arrears in Ukraine is amounted to UAH 1 billion 5 mln. In the structure of the debt: state enterprises - 244 million UAH; communal services – UAH 41 million; enterprises with other forms of property – UAH 243.8 million; failing businesses – UAH 413 million; economically active enterprises - UAH 64 million.