Metinvest Group announced in late March that it would be increasing the wages of its production staff in Ukraine effective May 1, 2021. The company made this decision despite already paying some of the highest wages in Ukraine for the metallurgical and mining industries.
Even before the recent salary increase, production employees at Metinvest Group earned 10 to 15 percent more than people in similar jobs at competing companies. At the time of the March 2021 announcement, the average annual salary of Metinvest Group production employees was $20.4 thousand expressed in Ukrainian Hryvnia (UAH) currency. This figure is approximately 10 percent higher than the average industry pay in Ukraine and 65 percent higher than the average pay for all Ukrainian workers.
Metinvest had an employee turnover rate of just 8.6 percent in 2020 thanks to the company's dedication to employee motivation, new training programs, and the development of new systems that helped make many jobs more efficient. The latest salary increase comes after employees saw their pay grow by 22 percent over the past two years. Workers received a 15 percent salary increase in 2019 and bonuses equal to seven percent in 2020 for meeting operational efficiency targets.
The focus of the latest round of salary increases at Metinvest Group is to ensure that workers in the same job classifications performing essentially the same tasks receive equal pay. The company does not plan salary increases for management and administrative personnel at this time. Employees eligible for a salary boost will receive increases ranging from five to 25 percent based on production and efficiency bonuses.
Metinvest chose to focus on increasing pay for maintenance and technology workers because they make the most significant contribution to product quality and technological processes. Providing these employees with added motivation to work efficiently and produce quality products benefits the entire company and its customers.
Metinvest Group employees who work in auxiliary professions and those who perform duties at a lower skill level will also receive pay increases. However, the increases they receive will not be as much as employees holding maintenance and technology positions. The rationale behind this decision is that the pay changes will motivate workers in these classifications to seek new skills that qualify them to move into a higher-paying position.
Metinvest employees have access to a broad range of tools to help them increase their personal earnings. For example, they can participate in operational improvement programs, enroll in courses at Metinvest Polytechnic Institute, or submit proposals to increase safety and efficiency. Workers can increase their salary by up to 10 percent by participating in these incentive programs.
Company leadership regularly monitors inflation rates in Ukraine to ensure that the pay rate does not fall behind the rate of inflation. Metinvest Group also keeps a close eye on employee retention rates, both at its own company and its competitors'. The company applies each of these factors when setting salary ranges to ensure that all employees receive fair and equal pay.
Metinvest Group launched on June 6, 2006, under its parent company SCM Holdings. The company retains control of 50 percent of the iron ore market and 46 and 40 percent of the domestic coal and metal markets. Metinvest is the largest private employer in Ukraine and the 13th largest across Eastern and Central Europe. Among worldwide steel and mining companies, Metinvest Group ranks within the top 50.
Approximately 80,000 people work for Metinvest and the companies underneath its umbrella. These include:
● Five mining companies in Ukraine and one in the United States
● Five metallurgy companies in Ukraine, one in Bulgaria, one in the United Kingdom, and two in Italy
● One logistics company in Ukraine
● One trading company in Ukraine
Metinvest is a responsible corporate citizen and always considers how its actions impact the environment before engaging in them. The company makes a point to use as few natural resources as possible, and it has gone to great lengths to create cleaner cities in each area where it has a physical presence.
Each Metinvest employee understands the value of transparency and professionalism. Customers can expect honest and proactive service while employees can expect to work in a respectful environment where management celebrates their achievements.