83% of companies have employees mobilized into the Armed Forces

03/ 05/ 2023

This is shown by the results of the new wave of the quarterly survey Business during the war conducted by theEuropean Business Association among its member companies. Currently, employees of 83% of companies defend Ukraine in the armed forces, among which 51% of companieshave up to 10% of conscripted workers mobilized, 25% - 10-20%, 5% - 20-40%. At the same time, within 43% of businesses critical specialists have been mobilized, including engineers, IT specialists, electricians, mechanics, machinists, and drivers. As a result of hostilities, 38% of companies suffered direct losses, and 21% have assets (production facilities, land, machinery, transport, real estate, products) that remained in the occupied territories. Businesses continue to lose money due to the war. As of now, 33% report losses of up to $1 million, 37% report losses in the $1-10 million range, and 10% report losses of more than $10 million. Despite this, more and more companies are resuming full activity. Now, 68% of the surveyed EBA companies work in full. Please be reminded that in January 54% of companies were fully operational, and in October 2022 - 44% of companies. Currently, 31% of companies keep working with some restrictions, and another 1% do not operate at all. The number of businesses that pay full wages to employees remains consistently high – currently 90% of respondents, plus 21% make advance and bonus payments. However, 10% resort to wage cuts, 2% to layoffs, and 3% of companies send employees on unpaid leave. In wartime, regular support of the armed forces is of great importance and we are glad to note that the companies of the Association continue to strongly help the army and the people impacted by the war. About 47% support the Armed Forces financially and support their employees defending the country, 42% provide their products, and 24% provide services for the needs of the armed forces and as humanitarian aid. The “financial cushion” of the business is more or less stable: 25% have financial reserves for half a year, 23% for a year, and 37% for a year or more. Another 5% have reserves for several months, and 5% have none at all. The current situation is not too different as of January 2023. To support their business in a difficult period, 7% of the businesses we surveyed used state support programs, in particular, 3% - the Affordable Loans program, 3% - compensation for employment of IDPs, and 1% - other programs. Anna Derevyanko. Executive Director of the European Business Association. We see a certain performance stabilization of the companies. This can be explained by the fact that companies have adapted and found new directions for development in order to keep working in the country. However, we certainly should not dismiss a number of negative factors that do not improve conditions for business, thus should be addressed.In particular, the issue of mobilization is quite urgent. We see that almost half of the surveyed companies state that they have mobilized specialists critical to the operation of their enterprise. The business surely understands the need for mobilization measures, but this process should be more predictable and transparent. The same applies to the procedure for booking employees. We hope that this mechanism will be established and will work transparently, clearly, and bookings will be agreed within the promised time. For reference: The survey was conducted from April 4 to 26, 2023, and 115 top managers of member companies of the European Business Association took part in it.

This is shown by the results of the new wave of the quarterly survey “Business during the war” conducted by theEuropean Business Association among its member companies.

Currently, employees of 83% of companies defend Ukraine in the armed forces, among which 51% of companieshave up to 10% of conscripted workers mobilized, 25% – 10-20%, 5% – 20-40%. At the same time, within 43% of businesses critical specialists have been mobilized, including engineers, IT specialists, electricians, mechanics, machinists, and drivers.

As a result of hostilities, 38% of companies suffered direct losses, and 21% have assets (production facilities, land, machinery, transport, real estate, products) that remained in the occupied territories. Businesses continue to lose money due to the war. As of now, 33% report losses of up to $1 million, 37% report losses in the $1-10 million range, and 10% report losses of more than $10 million.

Despite this, more and more companies are resuming full activity. Now, 68% of the surveyed EBA companies work in full. Please be reminded that in January 54% of companies were fully operational, and in October 2022 – 44% of companies. Currently, 31% of companies keep working with some restrictions, and another 1% do not operate at all.

The number of businesses that pay full wages to employees remains consistently high – currently 90% of respondents, plus 21% make advance and bonus payments. However, 10% resort to wage cuts, 2% to layoffs, and 3% of companies send employees on unpaid leave.

In wartime, regular support of the armed forces is of great importance and we are glad to note that the companies of the Association continue to strongly help the army and the people impacted by the war. About 47% support the Armed Forces financially and support their employees defending the country, 42% provide their products, and 24% provide services for the needs of the armed forces and as humanitarian aid.

The “financial cushion” of the business is more or less stable: 25% have financial reserves for half a year, 23% for a year, and 37% for a year or more. Another 5% have reserves for several months, and 5% have none at all. The current situation is not too different as of January 2023.

To support their business in a difficult period, 7% of the businesses we surveyed used state support programs, in particular, 3% – the “Affordable Loans” program, 3% – compensation for employment of IDPs, and 1% – other programs.

Anna Derevyanko Executive Director of the European Business Association

We see a certain performance stabilization of the companies. This can be explained by the fact that companies have adapted and found new directions for development in order to keep working in the country. However, we certainly should not dismiss a number of negative factors that do not improve conditions for business, thus should be addressed.In particular, the issue of mobilization is quite urgent. We see that almost half of the surveyed companies state that they have mobilized specialists critical to the operation of their enterprise. The business surely understands the need for mobilization measures, but this process should be more predictable and transparent. The same applies to the procedure for booking employees. We hope that this mechanism will be established and will work transparently, clearly, and bookings will be agreed within the promised time.

For reference:

The survey was conducted from April 4 to 26, 2023, and 115 top managers of member companies of the European Business Association took part in it.