The government’s proposed reduction of reservation quotas for conscript-eligible employees has caused concern not only among representatives of the defense-industrial complex and related industries, but also among representatives of the energy sector. The Cabinet of Ministers is being warned of the risks of a staffing crisis in companies, disruptions to the fulfillment of defense contracts, and destabilization of the energy sector, UNN writes.
The reduction in reservations will jeopardize the production of Ukrainian weapons
The debate surrounding the government’s proposed initiative to change the rules for reserving conscript-eligible employees of critically important enterprises is gaining momentum. As is known, on October 13, the Cabinet of Ministers considered amendments to the resolution regulating the procedure for reserving conscript-eligible employees. The draft resolution proposed reducing the percentage quotas for reservations for enterprises in the defense-industrial complex and energy sector—from 100% to 85%, and for the utilities sector—from 75% to 60%.
The proposed reduction in quotas for companies in the defense-industrial complex and related industries, the fuel and energy complex, and the utilities sector has drawn sharp criticism from businesses, trade unions, and parliamentarians.
Representatives of businesses, think tanks, and parliamentarians stated that the government had not held the necessary consultations regarding the proposed changes, and that the draft resolution contained no calculations of the consequences of their introduction. In addition, the National Agency on Corruption Prevention reported that the document contained a number of corruption risks.
Representatives of strategic industries warn that in wartime, even a partial loss of qualified personnel can have much more serious consequences than an ordinary reduction in production capacity. After all, these are enterprises that directly determine the army’s supply of weapons, the stability of the energy system, the functioning of critical infrastructure, and the fulfillment of government orders.
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Weapons manufacturers reacted particularly strongly to the government’s initiatives. Ukrainian company Skyeton, which operates in the defense-industrial complex, stated that reducing the reservation quota could trigger an outflow of specialists, halt promising developments, and disrupt the fulfillment of existing contracts.
Reducing the quota from 100% to 85% is a loophole for the outflow of personnel from critical defense enterprises, not a solution to the issue of staffing the military. The most realistic scenario to which it will lead within just a few months is a dead domestic defense industry in a country at war
Skyeton explains that defense enterprises are already operating amid an acute personnel shortage. Finding a single highly qualified specialist can take six months, with approximately the same amount of time needed for their adaptation to a specific project. At the same time, the complexity of modern defense developments has increased significantly compared with the beginning of the full-scale invasion.
According to the company’s assessment, for certain technological fields, the number of specialists with the required competencies may be limited to just a few dozen people across the entire country. Therefore, the loss of even one employee can affect the work of an entire team.
The industry is already facing an acute personnel shortage. If the reservation quota is reduced, manufacturers will be unable to work on developing new solutions that the military needs today. Moreover, under such conditions, companies will be unable to fulfill their current contractual obligations
The company sees a separate risk in the loss of competitiveness of Ukrainian manufacturers compared with foreign companies, which have more stable working conditions and access to personnel resources.
It is worth noting that earlier the Ministry of Defense categorically opposed reducing reservation quotas for defense companies. Skyeton supports the ministry’s position. The company emphasizes that developing its own weapons production enables Ukraine to reduce its dependence on the political decisions of international partners and strengthens its position on the international stage.
Miners warn of risks to energy security
Representatives of the energy sector were no less critical of the possible reduction in the reservation quota.
The Trade Union of Coal Industry Workers of Ukraine calls on Prime Minister Serhii Koretskyi and the relevant ministry to preserve 100% reservation for enterprises in the fuel and energy complex.
The trade union emphasizes that the stable operation of coal enterprises is directly linked to the state's energy security, in particular, to supplying thermal power plants with fuel.
According to the Trade Union, the reduction in the reservation quota from 100% to 85% envisaged by the draft resolution could create additional risks for staffing in the coal industry and the stable operation of the energy sector
The main problem lies in the specifics of the industry. The operation of mines requires specialists with appropriate professional training, experience, and qualifications. It is impossible to replace such workers quickly. Therefore, reducing the number of reserved employees could lead not only to a decline in coal production, but also to additional risks for workers due to hazardous production processes.
In addition, representatives of the coal industry propose holding a discussion of the government's changes with the participation of trade unions.
The risks identified are particularly important against the backdrop of systematic Russian attacks on Ukraine's energy infrastructure. Under such circumstances, the staffing resilience of enterprises becomes not only an economic issue, but also a security matter.
Risk of paralysis of critical infrastructure
The proposed changes have also raised concern in the Verkhovna Rada.
MP Larysa Bilozir said that the new reservation rules could paralyze the work of enterprises and territorial communities that provide the population with essential services.
Strengthening the Ukrainian army is an unconditional priority; at the same time, we must do everything to ensure that the country continues to function, people have heat, water, and electricity, and communities can provide essential services
In her view, the problem lies not only in reducing the reservation limits, but also in the simultaneous revision of the criteria for enterprises to be deemed critical and the need to reissue documents. Taken together, this could lead to an additional administrative burden and destabilize the operations of enterprises that must function continuously.
It cannot be allowed for them to face a simultaneous review of the criticality criteria, a change in quotas, and the need to urgently reissue documents
According to her, the parliamentary group "Dovira" sent the Prime Minister proposals regarding the final version of the government resolution.
In particular, the parliamentarians propose preserving the status of critically important enterprises that have already received it until the expiration of the relevant decision. A similar approach is proposed for previously approved reservation volumes.
According to her, this will allow businesses to adapt to the new requirements without a sharp reduction in staff and the risk of production processes being halted.
The ball is in the government's court
MP Yaroslav Zhelezniak reported that the government removed from the agenda of Friday's Cabinet of Ministers meeting the issue concerning the resolution on reservation. Following strong criticism, the Cabinet of Ministers agreed to hold additional consultations with businesses.
Virtually all sectoral associations, as well as representatives of 16 Ukrainian analytical centers, have declared their readiness to participate in drafting the government resolution of October 13.
It is currently unknown whether the relevant consultations with business representatives have begun.