Trade union demands a 63 % increase in the salaries of “Achema” employees

The trade union of Jonava nitrogen fertilizer factory “Achema” is demanding a 63 percent increase in the wage fund of the employees within three years.

The trade union seeks to oblige the company to increase the wages of the employees by 24 percent during the first year, by 10 percent during the second year, and by another 10 percent during the third year; to ensure that the average salary of employees reaches at least 130 percent of the national average salary, and if this is not achieved, to provide a one-time incentive; to pay a single vacation bonus. Converting these requirements into actual figures, the employee wage fund of the company should increase by 63 percent or EUR 18 million over three years.

According to the Chief Executive Officer of “Achema” Audronė Kuskytė such a requirement not only does not meet the financial capacities of the company but is also economically unjustified in respect of the employees themselves, when equal increases of the wage are demanded for everyone, regardless of specific work results.

“We do understand the desire of the employees to receive higher wage – it is completely human and natural. Nevertheless, today we must speak frankly: the European fertilizer industry is facing serious challenges, and “Achema” is experiencing them directly. Imported cheap products from the third countries, extremely high environmental taxes and unequal competition mean that many European factories are currently unable to operate at full capacity. We have been operating unprofitably for the last two years, this year we were forced to suspend ammonia production for three months – such is the market reality,” explained A. Kuskytė.

The negotiations of the company with the representatives of the trade union regarding the collective agreement continued for almost half a year. During the negotiations, a draft collective agreement was prepared, which, among other things, included a clause on cooperation between the company and the trade union in assessing employee position levels, functions and responsibilities. During the final stage, the trade union council refused to approve the draft collective agreement withdrew from further negotiations and began strike preparation procedures.

After the negotiations were broken off, the company continues to evaluate the positions and look for the best solutions, taking into consideration the available opportunities and the expectations of the employees.

“For me as a CEO, the most important issue is the stability of the company and the preservation of the workplaces. Despite all the challenges we face today, employee turnover in the company is smaller by half in comparison to the market rate – last year it was 13%, this year it is 10%. 10-15% of employees who left return to the company every year. We are working hard to keep the company competitive: we are investing in efficiency, we are waiting for important EU decisions – the introduction of tariffs on Russian fertilizers, the border carbon dioxide tax. These changes are already giving the first signals of a possible stabilization of the market.

I really appreciate our employees – I see both their mood and their efforts. Most of the employees understand the situation and believe that the company can recover. However, any decisions made must be responsible: if we want “Achema” to remain the largest employer in Jonava region and create workplace, we must be guided by facts, assess the economic situation and future prospects, emphasizes A. Kuskytė.