Social Risks of the Coal Industry Restructuring in Ukraine
The article is devoted to the analysis of social risks of restructuring of coal industry enterprises. The risks of depressed of development of monotype settlements, unemployment, poverty are exude between the most actual, that passed from a generation to the generation. Key words: social risks, coal...
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irk-123456789-1233922017-09-04T03:02:58Z Social Risks of the Coal Industry Restructuring in Ukraine Nadraga, V.І. Management of Labour and Safety The article is devoted to the analysis of social risks of restructuring of coal industry enterprises. The risks of depressed of development of monotype settlements, unemployment, poverty are exude between the most actual, that passed from a generation to the generation. Key words: social risks, coal industry, restructuring. Стаття присвячена аналізу соціальних ризиків реструктуризації підприємств вугільної галузі. Серед найбільш актуальних виділяються ризики депресивності розвитку монопрофільних поселень, безробіття, бідності, що передаються від покоління до покоління. Статья посвящена анализу социальных рисков реструктуризации предприятий угольной отрасли. Среди наиболее актуальных выделяются риски депрессивности развития монопрофильных поселений, безработица, риски межпоколенческой передачи бедности. 2013 Article Social Risks of the Coal Industry Restructuring in Ukraine / V.І. Nadraga // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 181–184. — Бібліогр.: 12 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/123392 316.42+330.342 en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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Management of Labour and Safety Management of Labour and Safety |
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Management of Labour and Safety Management of Labour and Safety Nadraga, V.І. Social Risks of the Coal Industry Restructuring in Ukraine Економічний вісник Донбасу |
| description |
The article is devoted to the analysis of social risks of restructuring of coal industry enterprises. The risks of depressed of development of monotype settlements, unemployment, poverty are exude between the most actual, that passed from a generation to the generation. Key words: social risks, coal industry, restructuring. |
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Nadraga, V.І. |
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Nadraga, V.І. |
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Nadraga, V.І. |
| title |
Social Risks of the Coal Industry Restructuring in Ukraine |
| title_short |
Social Risks of the Coal Industry Restructuring in Ukraine |
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Social Risks of the Coal Industry Restructuring in Ukraine |
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Social Risks of the Coal Industry Restructuring in Ukraine |
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Social Risks of the Coal Industry Restructuring in Ukraine |
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social risks of the coal industry restructuring in ukraine |
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Інститут економіки промисловості НАН України |
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2013 |
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Management of Labour and Safety |
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http://dspace.nbuv.gov.ua/handle/123456789/123392 |
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Social Risks of the Coal Industry Restructuring in Ukraine / V.І. Nadraga // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 181–184. — Бібліогр.: 12 назв. — англ. |
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181
Економічний вісник Донбасу № 4 (34), 2013
SOCIAL RISKS OF THE COAL INDUSTRY RESTRUCTURING IN UKRAINE
UDC 316.42+330.342
V. І. Nadraga,
PhD (State Management),
M. Ptukha Institute of Demography and Social Studies
National academy of Science of Ukraine, Kyiv
Management of Labour and Safety
Formulation of the problem in general and its
relationship with important scientific and practical
tasks. Ukraine is one of the twelve countries in the world
which has the largest volume of coal mining. But the
level and the dynamics of techno-economic performances
of coal mining are not satisfied. At present coal industry
in Ukraine is experiencing very difficult times. The main
reason is a significant technology gap and exacerbating
problems associated with the necessity of introducing
radical institutional reforms. Economic crisis in the
regions are caused by the insufficient resources –
population saves stabilization strategies only in case of
the preservation of its basic needs, in other words, quality
of life remains at an acceptable level. Fall of living
standards results in human potential reduction and the
social risks growth.
The coal industry reform program was adopted in
2010, as a component of the general Program of economic
reforms [1]. Unlike the previous sectoral programs and
concepts-declarations, it has a precise goal – to overcome
losses and involve the use of drastic measures.
Restructuring processes that accompany the
development of most sectors of the domestic economy
may lead to some imbalance of economic performances
of individual areas, especially monoprofile for which this
or that sector is vital. Socio-economic problems of the
residents of some communities, the development of
which is completely dependent on one or two industries
located in their territories, today are acute enough, and
therefore they require special attention of public institutions,
scholars and experts.
The aim of the paper is the identification and analysis
of major social risks of the coal industry restructuring.
Analysis of recent research and publications.
Scientists who research the problem of risks follow
dichotomy. According to it they distinguish two types of
risk – technological and sociogenic. The latter is
understood as the result of the emergence of uncertainty
in the society due to the loss of public control over social
and societal changes. They include social conflicts, types
of deviation (especially delinkventsiya), some forms of
the social tension. The ways of looking at the nature,
specificity and types of the social risk also have many
differences [2, p. 23].
Theoretical and practical problems of the social risks
of coal industry functioning have been thoroughly
discussed in the works of leading scientists of the Institute
of Industrial Economics of the National Academy of
Sciences of Ukraine and the previous academic thematic
hearings. Thus, the authors of the monograph “Sustainable
industrial development of the region: social aspects” claim
that the risks of sustainable development of industrial
regions of Ukraine are formed primarily in three major
subsystems – social, economic and environmental. The
social subsystem in the risk assessment includes
performances related to the loss of opportunities of the
social development. The first is the risk of health loss
and life expectancy which result in living potential
decrease [3, p. 63].
Scientific interest of researchers to the theme of risk
is shown in their attempts to develop an integrative
sociological theory of risk, and establishment of quantitative
and qualitative methods of its assessment [4, p.12].
Causes and risk factors often have social nature:
the risk of unemployment, loss of efficiency due to the
accident, illness, lower social status, etc. They are caused
by the social environment and do not depend or depend
a little on the will and capabilities of large populations.
Social risk – is an event in human life recognized by the
community, which leads, on the one hand, to the loss of
ability to work or limitation for the labor demand, lower
living standards, total or partial loss of earnings, and on
the other hand – to the loss of its social component:
social disorientation, reduced self-rating, self-awareness
of their own social failure, reduced adaptation to the social
environment.
The theoretical basis and a wide range of issues
about the problem of the social risk are shown in the
works of local and foreign scientists in ryzykolohiya,
social policy, social security, social protection of
population, employment potential etc. They are:
A. Amosha, D. Bogynia, V. Vitlinskiy, O. Vlasyuk,
V. Heyts, E. Libanova, O. Martyakova, A. Novikova,
O. Pankova, S. Pyrozhkov, Y. Saienko, M. Faschevskiy,
M. Chumachenko.
Based on the analysis of the scientific researches
we can say that the social risk can be presented in the
following coordinates: quality of life, demographic risks,
professional risks, social security, unemployment risks,
environmental risks, deviant behavior.
The main material.
The success of the restructuring according to the
developments of the International Energy Agency which
researches the coal industry depends on several conditions:
– the creation of long-term strategic restructuring
program, the development and adoption of which, firstly,
V. І. Nadraga
182
Економічний вісник Донбасу № 4 (34), 2013
involves all stakeholders – state leaders, trade unions,
local communities, employers, management structure
which is responsible for coordination of the restructuring
and also includes representatives of all stakeholders;
– the restructuring program meets mobilized (present
and involved) resources to implement restructuring;
– strict state’s control over the use of resources
for restructuring. If this condition is not fulfilled, the
manager Finance is changed (Belgian experience). Special
agencies can be created to involve investment resources
(United Kingdom);
– restructuring involves some necessary measures
of economic recovery of mining regions, providing
employment.
Coal branches around the world have a wide
variety of scales, environmental conditions, organizational
structures, farming. But there are some general tendencies:
the development of profitable and unprofitable coal collapse,
denationalization (corporatization, privatization) of coal
mines, the concentration of capital, the internationalization
of coal production and formation foreign sectors,
integration of producers and consumers of coal.
The situation concerning the prospects of mining
in different countries is ambiguous, and there is not any
general doctrine on transformation processes in the
mining industry – each country produces its own “coal
policy”. It depends on many factors: geological reserves,
conditions, profitability development of coal deposits,
place and role of coal in the fuel and energy balance,
environmental limitations, the degree of integration of the
economy into regional and global structures, etc. [5, p. 6].
The program “Ukrainian Coal” was adopted in 2001
[6]. Its fulfilment was expected for the period 2001 –
2010. The main measures include: denationalization of
the coal industry, acceleration of the incorporation of
mines, identifying attractive investment objects and their
privatization. However, the program included measures
for the completion of mine closure. The criteria for
selecting mines to close, have been changed according
to the experience of restructuring. It was expected to
close both the mines, which did not have any industrial
coal reserves and uncompetitive ones since 2001.
Parameters according to which they selected the mines
to close were the following: the lack of industrial coal
reserves or their limitation (no more than 3 – 4 years);
high cost of coal; low technical and economic parameters;
complicated mining and geological conditions of
production.
The state budget of Ukraine for 2013 includes
expenses of the Ministry of Energy and Coal Industry in
the amount of 9 billion 911 million 299.1 thousand
hryvnias. From this amount of money 9 billion 728 million
474 thousand hryvnias were planned to invest into the
coal industry. This money will support the coal mines
and it will also be oriented at partial coverage for the cost
of finished marketable coal production – 7 billion
801 million 847,8 thousand hryvnias; restructuring of coal
and peat industries – 1 billion 50 million 980.1 thousand
hryvnias; for state support of building coal mining
enterprises, technical re-equipment of these enterprises –
364 million 293.8 thousand hryvnias. Intention of the
government to “support on the surface” all applicable
state mines results in dispersion and inefficient use of
public funds. The management of some mines deliberately
overstates the expected planned results and buys unnecessary
expensive equipment in order to get public funds. As a
result, the loss performances are increasing. It needs some
improvement grants, in other words providing budgetary
financing generates the need to increase budgetary
subsidies. The current system of state financial support
for coal mines, the amount of which is determined
annually, blocks incentives for improvements in the public
sector, provokes dependency attitudes among the
managers and workers of the enterprises of the sector.
Despite the very significant budgetary expenses,
most enterprises are nearly unable to maintain and develop
the social infrastructure. The widespread failure of legal
rules of social legislation and sectoral agreements is not
accompanied by the need of responsibility, and therefore
illegal behavior becomes the norm for managers and
workers of the mining industry. According to the
collective agreement in the coal industry for nearly 40%
of workers, the minimum wage at a level below the legally
established government guarantee was established. None
of the coal enterprise of Ukraine carries out the provisions
of the General and sectoral agreements about the timely
introduction of wage rates and salaries, calculated
in accordance with legally established minimum wage
[7, p. 24, 61].
The restructuring process has significantly influenced
the nature of production and social relationships both in
business and in the regions. The analysis of the dynamics
of demographics performences, particularly coal mining
regions, suggests that changes in the social environment
during market reforms have significantly affected the
entire system of social relations, structure, human
resources and resulted in a general deterioration of their
quality indicators. So-called “coal settlements”, because
of their specific location, are usually monoprofile, and as
you know, for such systems social risks are most acute
and pressing [2, p. 47].
There is no legal definition of social risks in Ukraine,
but according to the Law of Ukraine “On Social Services”
social risks are difficult life circumstances, which
objectively violate the normal functioning of a person,
the consequences of which can not be overcome by the
person. Thus, generally, social risks have social nature.
In most cases it is impossible to defend against them
individually, since they practically do not depend on the
actions of the individual. Any manufacturing process is
impossible without the human factor. In the coal mining
industry the human factor plays a role of a productive
resource because social and economic components of
the production sector in relation to each other – are ways
to achieve goals, but not goals. This is what causes the
mutual desire to minimize costs.
V. І. Nadraga
183
Економічний вісник Донбасу № 4 (34), 2013
In this context, the study of the social risks, in our
opinion, should include, at first, the study of the nature
of the interaction between man and society. New social
problems which are result of the coal industry restructuring
in many respects arise as a result of insufficiently
considered actions of state institutions. For example,
we can accept the measures which are envisaged by
the Resolution of Cabinet of Ministers of Ukraine in
September 19 2012. № 728-p “On Approving the plan
corporatization of state coal mines by 2014”. They are:
– corporatisation of public sector coal mines
(2013 – 2014);
– introduction of a new system of government
support (2014);
– coal market liberalization (2014 – 2015);
– completion of restructuring (2025);
– completion of privatization, the transfer of state
coal mines to the concession and lease (2025);
– stopping of subsidies to mining enterprises (state
support for partial coverage of coal costs – 2028);
– stopping of all forms of subsidization of operating
coal mines (2030).
At the same time, there are many issues in connection
with the proposed rate reduction of subsidies mine
operating costs (by 80% by 2014 and complete stopping
by 2016). Even in case of full Programme financing (it is
difficult to implement in case of the budget deficit), the
factor of individual social risks growth, which means
that acceleration of social development results in loss of
the stabilizing role of the stereotypes of thinking, is not
taken into consideration. Therefore, in case when a person
can not adequately evaluate the situation with the help of
existing stereotypes of thinking, it must find some
innovative answers to this challenge but not rely on the
social experience. The results of the search are not always
in the legal field or meet the moral foundations of the
social structure (a significant increase in crime, youth
drug addiction eloquently shows the following trends).
Coal industry reforming significantly exacerbates
the social risks which are associated with the threats of
unemployment – reaching breakeven performance of the
industry requires not only decommissioning of unprofitable
mines, but also a substantial increase of labor productivity,
and hence a significant reduction of staff at the operational
mines. Thus, from 2005 to 2012, 65.3 thousand of
industrial personnel of coal mining industry were reduced.
Updating the risk of unemployment leads to poverty,
which today is perhaps the greatest threat to human
development [8; 9].
In its turn, poverty generates a low self-identity of
a man in a society. F. Fukuyama defines human nature
as a factor that gives us a sense of morality, providing
social skills necessary for life in society and serves as a
basis for sophisticated philosophical discussions about
the law, justice and morality. We want to protect our
entire collection of complex, advanced natures against
attempts of self-modification and do not want to violate
the integrity of human nature. The author says that the
warranty of human preservation is preservation of
self-esteem. It is the base of the political institutions that
will be able to prevent the degradation of the individual.
[10, p. 217]. J. Habermas developed this thesis in his
report “The concept of human dignity and the realistic
utopia of human rights”. He said that the concept of
human dignity becomes particularly important today
because it is a source of moral ethics of equality, human
rights and identity [11, p. 32].
The problem of poverty has been thoroughly
investigated in the writings of leading domestic and foreign
scholars. So, according to the purpose of this paper it is
necessary to focus on the less explored aspect of this
problem – cultural anthropology of individual risks. The
existence of man is nothing but a biological and social
processes to adapt to a certain environment in which
his/her consciousness and behavior are determined by
the basic social values and norms. If the resource base,
according to which some behavioral strategies were
produced, is beginning to change, the human cultural
system does not undergo much change for a long time,
it keeps influencing his/her behavior [12]. That is, after
the loss of a job for a person a loss of social status is more
important than amount and duration of compensation
payments.
Integration of of poverty and monoprofile factors
of coal settlements causes updating of one of the most
dangerous social risks – the risk of transmission of social
problems from one generation to another. Thus, the
possibility of poor families to provide competitive
education to children is limited. As a result, the next
generation will not have the necessary level of knowledge
and skills that will allow it to fully compete in the labor
market. So children will have the same status of poverty
as their parents. Such risks inheritance from generation
to generation can significantly enhance social problems
not only of separate groups of people, but also regions,
turning them into depression.
Effective state regulation must become the warrantor
of risk prevention for sustainable development of the
regions of Ukraine. The main purpose of government
intervention is the introduction of measures to control
and stimulate business industry with national interests in
the social sphere, to minimize social risks.
Conclusions and recommendations for further
research.
Ukraine has significant coal reserves and has the
advanced technology of its production, but the problem
is that there is the lack of investment resources for deep
modernization of coal mines.
To solve the problem of the coal industry restructuring
and consider some issues of organizational and economic
nature it is necessary to produce flexible mechanisms
and tools to minimize the social risks. As the analysis
shows, the implementation of strategic priorities for
restructuring is often solved closing unprofitable mines
without regard to economic activity in the mining region
and the social needs of their residents. Therefore, at the
V. І. Nadraga
184
Економічний вісник Донбасу № 4 (34), 2013
stage of the reform of the coal industry, the most relevant
task is labor market optimization in coal mining regions,
in particular the need to preserve and create jobs, during
the diversification of the industry.
Introduction of the restructuring mechanisms of
social and economic development of the territory are very
important to solve the problem of the monoprofile
settlements. It should be done not only through economic
diversification, development of new areas and sectors,
including high-tech knowledge-intensive industries,
creation of technological parks, but also by introducing
mechanisms of mental reorientation of the population at
the need to change occupation.
Analysis of individual risks in the system of social
risks is one of the stages of the risk management process,
which aims to study the subject area, that is the study of
the structure and properties of the object and his / her
inherent risks. During the analysis of the social risks,
different socio-economic, demographic, ethnic and other
characteristics of the groups which were chosen for
investigation, should be taken into account. The
development of key factors and performances that will
cover multiple social issues which significantly affect
the actualization of the social risks can offered as a
promising area of research.
Social problems do not arise themselves. They are
mainly caused by abnormalities in the functioning of
various systems and institutions of the state. If we
consider the social risks as a probable loss characteristics
of important social values, their determination should be
based on the features of disfunction of social institutions,
slowing down process of social reproduction, the
production processes and the transformation of the social
norms, values and preconditions for the formation of the
social tension.
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Надрага В. І. Соціальні ризики реструктури-
зації вугільної промисловості України
Стаття присвячена аналізу соціальних ризиків
реструктуризації підприємств вугільної галузі. Серед
найбільш актуальних виділяються ризики депресив-
ності розвитку монопрофільних поселень, безробіття,
бідності, що передаються від покоління до покоління.
Ключові слова: соціальні ризики, вугільна галузь,
реструктуризація.
Надрага В. И. Социальные риски реструкту-
ризации угольной промышленности Украины
Статья посвящена анализу социальных рисков
реструктуризации предприятий угольной отрасли. Среди
наиболее актуальных выделяются риски депрессивности
развития монопрофильных поселений, безработица,
риски межпоколенческой передачи бедности.
Ключевые слова: социальные риски, угольная
отрасль, реструктуризация.
Nadraga V. I. Social Risks of the Coal Industry
Restructuring in Ukraine
The article is devoted to the analysis of social risks
of restructuring of coal industry enterprises. The risks
of depressed of development of monotype settlements,
unemployment, poverty are exude between the most
actual, that passed from a generation to the generation.
Key words: social risks, coal industry, restructuring.
Received by the editors: 14.10.2013
and final form 04.12.2013
V. І. Nadraga
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