Lviv Bus Plant workers ready to go on strike, protesting pay arrears and poor management by Russian investors

July03200820:06

The Lviv Bus Plant is in turmoil as workers say they are ready to go on strike, workers who refused to identify themselves told ZIK reporter July 3. Wage arrears have grown to 3 months, with the total debt reaching over $600,000. If they are not paid within 2 days, workers threaten to take radical steps, notably, to bloc Lviv streets. Workers point their finger at LBP Russian owners, accusing them of sloppy management.

LBP workers regret that they believed empty promises of the plant administration and did not start their protest in April. They have been promised their back wages ever day, they say.

July 2, the workers picketed the Lviv oblast administration. Lviv Governor Mykola Kmit had a meeting with the protesters. The outcome of the meeting was a demand to the owners to pay back wages and improve conditions of work. Governor Kmit also had a telephone conversation with Russia Ambassador to Ukraine V. Chernomyrdin, demanding that urgent steps are taken to resolve the conflict at the Russian investors-owned plant.

ZIK tried to find out total wage arrears and the reasons why they appeared, but it turned out that the information is confidential. When ZIK asked head of Lviv oblast council head of the department for industry Rostyslav Soroka, the latter confirmed wage arrears but couldn’t specify their amount. Surprisingly, the officials said back wages for April and May have been paid to workers. The also said the arrears emerged due to the delay in funding from Kyiv.

Meanwhile, LBP press service head Olena Muliak said the money to pay the workers must be provided from several sources which she refused to specify. She confirmed that the total debt runs into over $600,000.

She said the reasons for the delay include unstable situation in Ukraine, the lack of serious investors and subsidies from the government.

Simultaneously, the LBP personnel demanded nationalization of the plant, but plant officials insist that it won’t resolve the problem.

Comment by ZIK

LBP was acquired in a tender by two Russian brothers, Igor and Oleg Churkiny,in 2001. They also won a tender for the sale of the Black Sea Shipyard.

They first started their activities in Ukraine in mid-90s, supplying spare parts fo KMAZ trucks.

The then LBP director, Stepan Davydyak, was instrumental in selling the plant to the Russians. When the deal was struck, Igor Churkin brought a team of his managers to run the plant, putting them in key positions.

A year and a half ago Igor Churkin declared that Ukraine is not a priority market for LBP-made busses, turning to Russian and Eatern European markets. However, export sales amounted to a mere 10 percent in 2004 and 2005, The Kontrakty reported in its issue #21 for 22.05.2006.
Print