Country Risk

Ukrainian wage arrears likely to trigger frequent, widespread strikes especially in mining and manufacturing in one-year outlook

27 February 2018


On 23 February 2018, Ukraine’s State Statistics Service reported that the total outstanding wage arrears had reached UAH2.37 billion (USD88 million) as of 1 January 2018. This figures represents a 32.4% year-on-year (y/y) increase.

Based on IHS Markit’s intelligence events monitoring, in the past 12 months, wage arrears have been particularly pronounced in the mining and heavy manufacturing sectors. On 22 February coal miners at four mines of the state-owned Selydivvuhillya enterprise in Donetsk region, announced an indefinite strike demanding immediate payment of wage arrears. This follows various strike action throughout 2017 including by shipyard workers in Mykolayiv in November and December 2017, coal miners in Lviv and Volyn regions in western Ukraine in October 2017, and iron ore miners in Kryvyi Rih, Dnipropetrovsk region, in May–August 2017, demanding salary increases and improved working conditions.

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