Business needs predictable reservation conditions

14/ 10/ 2024

In recent weeks, the European Business Association has received more requests from businesses that cannot reconfirm their criticality status to extend employee bookings. Given the volume of inquiries from businesses on this issue, the problem is becoming systemic. In essence, the decisions regarding the reconfirmation of critical enterprise status are simply pending by the relevant authorities. Against this backdrop, unofficial reports have appeared in the media about the governments decision to effectively suspend the exemption process for employees until November 15. While businesses understand the importance of mobilization efforts, such unpredictable steps significantly complicate their operations. In this context, predictability in personnel policy is crucial for businesses and investors. Both businesses and defense forces need people. Achieving a balance between these needs is challenging but essential for our defense capabilities and economic stability. As of mid-2024, 86% of the EBAs member companies surveyed have employees serving in the Armed Forces of Ukraine. In half of the companies, specifically 52%, the number of mobilized employees reaches up to 10% of the total eligible workforce. In 28%, the number ranges from 10-20%, and in 6%, it reaches 20-40%. In nearly half of the companies (46%), among those mobilized or volunteering are critical specialists essential for the company’s operations. These include managers, engineers, IT specialists, drivers, electricians, mechanics, and production line operators. Improving employee exemption conditions is the number one request from businesses today, according to the EBAs surveys. Companies are suffering not only from a shortage of qualified specialists but also from the inability to plan their operations. There is a risk of mobilizing critical specialists, such as operators of specific equipment or experts with unique knowledge, without whom production or operational processes may be disrupted or halted. With economic exemptions not yet adopted and exemptions based on critical status currently paused, companies are essentially deprived of the ability to plan their workforce. The EBA emphasizes that businesses need a stable, predictable, transparent, and at the same time efficient mechanism for exempting critical employees. We hope for the governments and other state authorities understanding of the importance of this request from the business community. The European Business Association remains open to dialogue on improving the exemption mechanism and strives to achieve a balanced approach.

Against this backdrop, unofficial reports have appeared in the media about the government’s decision to effectively suspend the exemption process for employees until November 15. While businesses understand the importance of mobilization efforts, such unpredictable steps significantly complicate their operations.

In this context, predictability in personnel policy is crucial for businesses and investors. Both businesses and defense forces need people. Achieving a balance between these needs is challenging but essential for our defense capabilities and economic stability.

As of mid-2024, 86% of the EBA’s member companies surveyed have employees serving in the Armed Forces of Ukraine. In half of the companies, specifically 52%, the number of mobilized employees reaches up to 10% of the total eligible workforce. In 28%, the number ranges from 10-20%, and in 6%, it reaches 20-40%.

In nearly half of the companies (46%), among those mobilized or volunteering are critical specialists essential for the company’s operations. These include managers, engineers, IT specialists, drivers, electricians, mechanics, and production line operators.

Improving employee exemption conditions is the number one request from businesses today, according to the EBA’s surveys. Companies are suffering not only from a shortage of qualified specialists but also from the inability to plan their operations. There is a risk of mobilizing critical specialists, such as operators of specific equipment or experts with unique knowledge, without whom production or operational processes may be disrupted or halted.

With economic exemptions not yet adopted and exemptions based on critical status currently paused, companies are essentially deprived of the ability to plan their workforce. The EBA emphasizes that businesses need a stable, predictable, transparent, and at the same time efficient mechanism for exempting critical employees.

We hope for the government’s and other state authorities’ understanding of the importance of this request from the business community. The European Business Association remains open to dialogue on improving the exemption mechanism and strives to achieve a balanced approach.