Vasyl Khara: Raising the retirement age will lead to a nationwide Maidan

Nowadays the pension reform is the biggest headache for authorities. The situation is almost stalemate. Reforming the pension system according to the recommendation of the IMF, including raising the retirement age for women, will almost inevitably lead to mass resentment at the national level. But if the existing principle of pension payment, i.e. the so-called solidarity pension system, remains in force, then in a few years there will not be enough money left to pay pensions. For whether we like it or not, today the number of pensioners nearly equals the number of employees. However, as the last parliamentary hearings on the pension reform showed, neither the government nor its opponents make their final decision.  This is a classic deadlock situation. Summing up the parliamentary hearings, the Chairman of the Federation of Trade Unions of Ukraine, MP from the Party of Regions Vasyl Khara told UNN of possible ways out of this dead-end and pension reform proposals. 

- Vasyl Georgiyovych, from which perspective do you consider the situation with the pension reform? Which provisions of the bill proposed by the government are totally unacceptable for you as a chief of the national trade union federation?

- For me there are two matters of principle. The first one is that the Cabinet of Ministers should listen to the Ukrainian people, not to the International Monetary Fund and its requirements for the pension reform. The second one is that in no case, neither this year nor in the future the decision on raising the retirement age for our women should be taken. This is humiliation, insult, disrespect for the mother, for the grandmother... Thirdly, what is proposed is not a reform. I have been a people`s deputy for 12 years already and once I took part in the formulation of pension legislation.

The first phase of the pension reform was implemented in 2004 by Viktor Yanukovych. Then the division of pensions was introduced, unlike it was before: 10 years spent in prisons and 10 years of mine work gave the right to an equal pension. It was at that time that the minimum pension was raised to the minimum subsistence level.

Today there is a tremendous problem of financing the budget fund. However, it should be resolved not by raising the retirement age - it`s nonsense. It can be resolved by restoration of jobs ... For 5 years 30% of manufacture have been destroyed. It is necessary to restore it and give work to people. The labor compensation fund restored will give wages and salaries from which the assignments to the budget will be made…

It is essential to bring the economy out of the shadows. The first step done is the income tax reduced by 5%, that is billions of hryvnias, VAT reduced, etc. The third way to fund the budget is a manyfold increase in salaries. I have already cited the examples which became "bywords".

- What do you mean?

- Our country, unfortunately, produces 4 times less GDP than the average European country. And the average wage here is 20 times lower. What it tells us about? That there is an extremely unfair redistribution of the results of social labor. But the first article of the Constitution says that we are the state which is law-based, democratic and social one. Any social state provides more or less equitable distribution of labor results.

May those who appropriate billions at the expense of the working person share and increase wages twice. These three components total to UAH 75 billion. What the government suggests under pressure of the IMF is UAH 500 mln. Just compare: 500 million and 75 billion.

In addition, one can not ignore the fact that increasing the retirement age for women will create a problem not only for women but also for young people who can not get a job today.

 - And you believe that opinions of those representatives of the public opinion who spoked out on the pension reform during the parliamentary hearings will be taken into account?

- I hope so. Note: the position of the Cabinet of Ministers expressed by Mr.Tihipko, and speeches by two representatives of international financial and oligarchic structures were for this bill. All the rest were against. The trade unions held discussions among members of the labor collectives in all regions, and nowhere this project did find support. The final word rests with the Cabinet.

- Do you think that if Vice Prime Minister for Social Policy Sergiy Tihipko is not able to implement this reform, there is an option that he may resign?

- I don`t think so. He still has a lot of reforms ahead to be implemented ... Although it is not a reform, but a mockery of the women citizens of Ukraine. The reform is already clearly defined in the basic law on pension reform. Thus it should be implemented as defined, we should not invent anything extra.

- What does the IMF specifically require us to?

- It is specified in the Memorandum. Although they pretend not to require, the IMF conditions put forward before the government are tough as never before, including those concerning the retirement age. One of their representatives, namely that of the World Bank, made a clear statement on this subject yesterday.

 - How can the situation unfold?

- If the decision-makers have enough understanding of the situation, the bill will be withdrawn. Trade unions, employers and social partners of the state must find a compromise, finalize the bill and make it meet today`s needs and requirements so that it would not cause rise in social tensions. If not, and they will insist on another, then...

I will tell you the following: during a recent debate in the trade union meeting I hardly managed to keep my emotions under control and stifle the desire to immediately go outside. If they do not listen to reason and take this decision, submit the same bill discussed during the parliamentary hearings to the Parliament, they will face enormous social protest of the whole Ukrainian population.

- And how many people are likely to go out in the streets?

- It`s hard to say, we`ve yet to face such a situation when a large number of people go out in the streets. But frankly speaking, people are talking about the increase in prices, tariffs or other less than about the government`s plans to raise the women`s retirement age. This is an "open wound". It is hard to imagine how many people will go out, but theoretically, I think there was no such level of people`s protest in Ukraine before.

- Will such "Maidan" take place in Kyiv only?

- I think, not only in Kyiv.

- Tell us whether you reached agreement on the pension reform with your party members?

- Yes, with most of them. Even with those called oligarchs. For such a position is not one of a faction or a party. This is a position of the Cabinet, which has to be on good terms with the International Monetary Fund, and they can be understood. We have no other money. Without money from outside, we do not pull the country out of the mire into which the previous government brought the country. They have to act this way. Well, most of members of the faction, our party members, including me, rather support the opinion of the Federation of Trade Unions of Ukraine than what is specified in this draft law.

- In your opinion, according to the most favorable scenario, when can this or another law, probably more compromise one, on the pension system reform be passed?

- The International Monetary Fund insists that this law be enacted in March. I think, no need to hurry up, by April or May we could have an appropriate law finalized which would push the reform forward. Not to meet the IMF demands, but the people`s demands and in favour of the pension reform itself.

Source:  UNN

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