Lack of decent pensions keeps pilots on the job (190 words)

Published: 9/11/2000

Unusually for a trade union official, Valentine Rvachev, Chairman of Ukrainian pilot's trade union, predicts that Ukrainian Government decree compelling airlines to pay retired pilot's additional pension payments will severely curtail the creation of posts for new pilots. Rvaychev is however, confronted by a dilemma given that, if pension payments are not increased then pilots will simply stay on. Estimates suggest that over 80% of pilots could be senior citizens in the near future and this will exclude new pilots from entering the profession. The additional payments however, will fall disproportionately on the state sector given that the new airlines do not have retirees. For Air Ukraine already in precipitous financial condition, the new rule require an additional payment of $280,000 to the airline's pension fund further adding to the airline's woes, as with most of the state airlines. According to Rvachev, this resolution contradicts 14 articles of the Ukrainian Constitution, several laws and international agreements and 12 airlines have decided to take the government to the Ukrainian Arbitration Court.

Article ID: 2065