ADDRESS

Presidium of Dnepropetrovsk Trade Council regarding

reformation of social insurance system

Dear Arseniy Petrovych !

Dear Volodymyr Borysovych !

Dear Grygoriy Vasylyovych !

Commencing on 1 January 2015, as a result of entry into force the Law of Ukraine “On making changes in some legislative acts of Ukraine regarding reformation of obligatory for all state social insurance and legalization of remuneration of labor fund” dated 28 December 2014, No.77-VIII (hereinafter referred as the Law), the Presidium of Dnepropetrovsk Trade Council considers that provisions of the Law will not allow succeeding with regard to the system reformation of obligatory for all state social insurance, and above all this will make worse as it is complicated situation of employees – the insured workers.

Thus, the Law has extended power for the Ministry of Social Policy of Ukraine, and at the same time restricted rights of the Social Insurance Fund on temporary disability in which three sides of a social dialogue were introduced. This approach has violated a fundamental principle on which the entire system of the obligatory for all state social insurance was built, i.e. equality in the social insurance management. Besides, the bill was not concurred with parties of the social dialogue in accordance with requirements of the Law of Ukraine “On Social Dialogue in Ukraine” and General Agreement.

The Unions as representatives of positively insured workers do not agree with the reduction of support scale on temporary disability depending on insured experience, as this is a violation of article 22, Constitution of Ukraine requirements which specifies that up on adoption of new laws or making changes in active laws it is not allowed narrowing content and the scope of existing rights and the freedom of citizens of Ukraine.

We are also positively against groundless reduction of social service types and conditions change. It is impossible to accept an issue that the following services have not been provided: sanatorium-and-spas, child-and-youth sport school.

This is going on nowadays when diseases among employees in Dnepropetrovsk region have grew up sufficiently and first of all because of unsatisfactory working and environmental conditions. Thus, in 2013, it was used 523,400,000.00 UAH from the regional Fund of temporary disability that is 5,300,000.00 UAH more than it was in 2012. A similar increase occurred in 2014.

Therefore, one of the priority areas of the Fund activities is sanatorium-and-spa treatment which effectiveness is confirmed by many scientific investigations and practical experience.

However in the current crisis situation the sanatorium-and-spa institutions face many difficulties in their efforts. The amount of financing form the state and local budgets has reduced sufficiently, and commencing this year this reduction has concerned financing from the Fund of compulsory social insurance. So, any funds have been assigned for the regional Fund in the first quarter of this year to procure sanatorium-and-spa vouchers, compensation of sanatorium-preventive clinics at enterprises and educational organizations, providing support to child-and-youth sport school (only funding of rehabilitation treatment was provided for). Just deterioration of sanatorium-and-spa treatment system in Ukraine has become one the main reasons of the people health indicator degradation.

Unions of the region are concerned that suspension of social services (sanatorium-and-spa treatment) will deny people a right to get such services for more than 1.40 million insured people in Dnepropetrovsk region and result in deterioration situation associated with health improvement of insured people, and eventually – in the further damage of labor potential and breakup of existing sanatorium-and-spa system.

Instead of theses services the Law provides for only payment of medical treatment at rehabilitation departments of sanatorium-and-spa institutions after illnesses and injuries. Such approach proposes to eliminate the consequences of disease, and not use preventive measures anticipating it which are effective and economically sound.

We are also against a breakup of a partial compensation system for children health improvement. It applies to 20 000 children of insured workers in Dnepropetrovsk region who will not have an opportunity of improving their health in 2015 and in the future under the new regulations of the Law.

A lot of employees’ addresses to the unions regarding the partial funding shutdown of factory and student sanatorium-and-spa institutions caused a great anxiety.

Provided by the Government reduction of material security, social services and insured cost savings are incomparable with a great social tension in our society after adoption of the Law.

Presidium of Dnepropetrovsk Trade Council considers the adopted Law as antisocial and demands to initiate as soon as possible to make changes in it regarding restoration of insurance provision by the Social Insurance Fund to the insured people and members of their families, providing support to child-and-youth sport schools, child health improvement centers at sanatorium-and-spa institutions.

Authorized by the Presidium,

V.P.Dubyl’

Chairman of Dnepropetrovsk Trade Council