The company's management apparatus has already been reduced by about 20%
Ukrzaliznytsia CEO Oleksandr Pertsovskyi stated that the company's board has not received bonuses since 2022. According to him, expenditures on management account for a minimal share of the total payroll fund. This was reported by Delo.ua citing RAIL.insider, according to the portal PromPolitInform.
The head of the railway enterprise emphasized the absence of bonus payments for top management amid public discussion regarding budget savings. He highlighted that, unlike many other state structures, board members do not receive additional incentives of this kind.
Share of Management Expenses
Expenses for maintaining the board make up less than 0.1% of the state carrier’s total payroll fund. Meanwhile, expenditures on the supervisory board reach approximately 0.05% of the total amount.
Due to such figures, a potential cancellation of payments to top management will not provide a significant resource to increase salaries for the rest of the staff. According to the company head, achieving noticeable savings without affecting broader categories of employees is impossible.
Optimization of the Management Apparatus
The state carrier continues structural restructuring of the administrative sector and reduces the number of management levels. The company also decreases the number of deputy positions and automates internal processes.
The implemented technological solutions have already covered certain areas of work and should reduce the need for personnel administration specialists. Even before the latest measures, the company’s management apparatus had decreased by about 20%.
Technical Departments and Savings
All technical subdivisions of the enterprise collectively account for about 3% of the total payroll fund. This makes it technically impossible to substantially reduce expenses through narrow personnel categories.
Earlier, the railway company announced savings of at least 200 million UAH monthly on staff expenses. In particular, part of the administrative personnel was transferred to a four-day work week and stripped of bonuses, which sparked criticism on social media.
Photo: Тетяна Гойденко
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