Board doesn't set salary increases for KEK's workers

The new KEK board has reviewed the possibility of increasing KEK workers' salaries, despite the fact that this company throughout the past year has reported being in crisis due to no electricity production.

The “has been discussed, but no decision has been made because we should have the financial conditions in days or not, said Faruk Hajrizi, chairman of the KEK Board elected in November 2017 by the Haradinaj government.

He added that they have not had any kind of pressure from the shareholder for salary growth, but that wage increases have received paperwork from the KEK labour union.

Request for salary increases has come from KEK Union, while coalition PAN in the pre-election campaign had promised a 100-euro salary hike linearly.

Prime Minister Haradinaj had reiterated that promise during a visit he had in December to the Kosovo Energy Corporation when he said that “yes, we have anticipated the increase in salaries”.

Skender Bucolli, from the KEK Public Relations Office, has told KALLXO.com that the KEK management will take a stand for wage growth during the decision-making process.

“Establishing KEK workers' welfare as key assets in realising good corporate performance has been and is one of the main objectives of the KEK management. On this line, the management has done the necessary analysis, taking into account all aspects of the operational and financial state of the corporation, and the overall situation will take a stand during the decision-making process”, Bucolli stressed.

The demand for salary increases has been submitted in June 2017 by the KEK Workers Union. The salary increase has been required since July 2017.

In 2014, KEK workers were raised wages for 100 euros. The agreement between KEK workers and the government led by Hashim Thaci at the time has been that by 2017, there will be no demands for salary increases.

Izet Mustafa of the KEK Workers' Union has told KALLXO.com that there has been a meeting with Prime Minister Haradinaj in January, where he too has promised that the promise he has made during the election campaign will be fulfilled.

I'm aware that the situation is complicated, it's in charge of the economic aspect because of the shift, but I believe that workers deserve to raise salaries”, Mustafa stressed.

He has added that the demand of workers is not only the increase of wages but also the rising value of the driver.
We currently worth 1 euro and 75 cents and have demanded that this value grow approximately 3 euros, but the decision about this requirement still does not have”, Izet Mustafa of the KEK Workers Union stressed.

He added that even though he is aware of the economic situation created in the

KEK, those like the Unions will stand in the face of workers' demands for salary increases and for improving working conditions.

KEK had reduced electricity production over the past year due to lack of coal. In the absence of electricity production, regular power supply was available thanks to electricity imports. At the same time, there were other costs, such as the increase in the cost of expropriation of part of Shipilla compared with the original planning. KEK has also been forced to employ about 100 new workers, which also affects increased staff spending.

KEK has not answered KALLXo.com questions about the level of losses it suffered last year due to lack of production. The paper has called for answers from KEK to the level of annual production realised and what was originally planned for the level of plan and coal production and the impact of these two elements in KEK's revenues.

The KEK crisis unfolds in a letter COSTT had addressed to institutions in the case of the ZRER's instruction to lift waste costs in the country's north. COSTT on this letter says KEK has not returned a debt owed (about 4m euros), following ZRRE decisions.

The COSTT letter reportedly had to provide 12.7m euros from two sources: KEK is tasked with providing COSTT with electricity for a value of 10.7m euros, as the regulatory obligation for revenues carried out by KEK for the previous year; and 2m euros to COSTT would provide from energy tariffs.

COMM The STT is alarming that KEK has been unable to fulfill the pledge he received from the ERE for energy supply due to coal supply problems.

Due to problems in producing electricity from KEK, COSTT will fully realise access to 6.8m euros”, the COST letter says.

KEK has been constantly having trouble with the limits of reducing operational spending imposed by the Energy Regulatory Office. The Efficiency factor set by the ZRRE called for KEK to lower the cost level for operation and maintenance and staff annually. This decrease means that the ZRR lowers the operating, maintenance and KEK personnel budget.

KEK has repeatedly demanded that the ERE remove this factor, as it is impossible to achieve. Even on one of KEK's paperwork, it is said that the ZERE still does not recognise salaries for 120 KEK employees based on a memorandum linked between KEK and the Ministry of Labour and Social Management. This memorandum provided for the employment of 120 seasonal workers, but contracts have been continued.

“KEK in its February 19th letter to the ZERE Board has applied to recognise the cost of 120 physical workers who are involved under the memorandum of understanding between KEK and the Ministry of Labour and Social Management. This cost has remained unbecoming in the cost of KEK (KEK) personnel, said in comments KEK had made in the ERE. If the ZRE recognizes an expense KEK, that means it allows KEK to introduce those tools to the energy price eventually paid by the citizen.

And the Regulatory Office had responded to KEK, saying social schemes cannot be included in bills.

“Efficiency factors are assigned during periodic reviews for the duration of the regulatory period so that regulated companies can make long-term plans and identify areas where efficiency benefits can be achieved. It cannot be expected that consumers of electricity will pay the price of any social employment scheme in the sector”, the ZRE response reported.