23 August, 2010
Ukrainian trade unions are furious with the International Monetary Fund’s (IMF) unlawful interference into domestic policy, following agreement of a US$15 billion crisis loan. The conditions of the loan see workers hit hard, through a raft of social cuts.
Opposition has been lead by the main Ukrainian national labour centre, the Federation of Trade Unions of Ukraine (FPU), an ITUC affiliate. A demonstration staged by trade unionists outside the IMF regional office in Kiev, on 17 August, condemned a wage freeze for 4 million public sector workers, increased gas prices, fines for delayed payments for utilities, and a 5-year increase to the retirement age for women from 55 to 60, which will slash opportunities for young professionals seeking first-time employment. Gas price rises will double the average household’s monthly bill. IMF loan conditions also oblige Ukraine to increase the minimum period of employment that qualifies for a state pension from 5 to 15.
While the IMF conditionalities demand penalties for overdue payment of utilities bills, they do not address the common problem of overdue payment of wages.
Trade unions demand that the IMF hold joint consultations with the Ukrainian cabinet and trade union representatives, leading to a lifting of the social restrictions, especially the raise in retirement age.
Ukraine’s heavily industrialized economy was hit hard by the global financial crisis. The US$15 billion IMF loan will be paid back over 2.5 years. Ukrainian trade union leaders requested international solidarity and support, stating that the IMF’s intrusion into domestic policy will increase poverty levels in the country and create a permanent dependence on IMF credit.