INDEPENDENT UNIONS HAVE SUCCEEDED IN RETURNING PREFERENTIAL RENTING PAYMENT RATE

Presidential Decree № 569 dated 5 November 2010 has introduced amendment to the Decree № 518 dated 23 October 2009. It should be recalled that independent trade unions initially were not mentioned in the Decree № 518 as non-governmental organizations entitled to a reduced rate of 0.1 when paying office rent.

It has taken more than a year for the state authorities to bring legislation back into conformity wit demands of independent trade unions.

After publication of Decree № 518 the BKDP repeatedly addressed the State Property Committee, Ministry of Labour and Social Protection, the Presidential Administration and personally the Deputy Prime Minister Vladimir Potupchik to return to BKDP affiliates preferential rent payment, which for independent trade unions at many companies has been raised 10 times.

"We are delighted that in the long run the discriminative decision of the regime against independent unions finally has been abolished. We had to exert every effort to resolve this problem including our address the International Labor Organization. To our regret, since the Decree enters into force only in February next year, our affiliates will be able to benefit from preferential rate only after signing rent agreements for - said Elena Eskova - head of BKDP legal department.

Moreover, according to Decree № 569 dated 5 November 2010 the Annex II to the Regulations determining the rent size when renting capital facilities (buildings, houses), self-contained premises or their parts, approved by Decree № 518 dated October 23, 2009 has been complemented by section 1.1.7. Thus, according to a new section 1.1.7 the trade unions (union associations) and their organizational structures will be able to apply the reduction factor 0.1 when paying office rent.

19.11.2010

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