Metinvest announces salary increase for employees starting May 1

Metinvest Group will increase salaries for employees of its production and repair facilities in Ukraine starting May 1, 2024. Salaries will be indexed above the forecasted inflation rate, the company said in a press release.

«It was a difficult step for the Group to increase salaries for its employees. Metinvest managed to rebuild the Group’s operations amid new conditions after the loss of its plants in Mariupol and Avdiivka. The reopening of the maritime export corridor in August 2023 helped to slightly increase the workload of the plants. The market situation remains unfavourable for the Group, with falling prices for steel products and increasing logistics costs.,» Metinvest said.

The revision of salaries effective May 1 provides for a differentiated approach. Salaries for production personnel will increase by 5-20%, and for the most scarce professions – up to 25%. Employees with low salaries within the same profession and qualification will receive the largest increase. This approach will ensure internal fairness in remuneration.

For now, the salary increase will only affect production staff in blue-collar occupations and line managers. Salary revisions for administrative and managerial staff, service companies and the management company will be considered additionally, taking into account Metinvest’s financial capabilities.

«Amid the war and uncertainty, our main fulcrum is people, and vice versa — the Group is a pillar for its employees. That is why, despite the difficult economic situation, we decided to assume an additional financial burden and increase salaries for the employees of our manufacturing and repair enterprises. We highly appreciate the contribution of our team to the Group’s overall performance and are committed to maintaining a high level of social security for our employees,» said Yuriy Ryzhenkov, CEO of Metinvest Group.

In 2023, Metinvest introduced an additional team bonus for employees of repair and production facilities for solving operational improvement tasks. This made it possible to focus on finding reserves to increase the company’s economic stability. In the face of high inflation in the country, employees increased their incomes by 15%.

Despite the challenging business environment during the war, the company provides its employees with decent salaries, pays taxes, invests in production facilities and plans to increase production. In the first quarter, Metinvest, including its associates and joint ventures, paid UAH 4.2 billion in taxes and duties to the budgets of all levels in Ukraine. The volume of payments increased 1.7 times year-on-year. 9 Group companies were included in the rating of Ukrainian companies with an impeccable reputation.

In 2023, Metinvest reduced steel production by 31% compared to 2022, to 2.025 million tons. Pig iron production for the year amounted to 1.76 million tons, down 36% y/y, while iron ore concentrate (total) increased by 4% y/y – to 11.09 million tons.