3. The employment and salaries of employees

Total employment in tobacco factories in Ukraine has decreased from 7680 people in 1996 to 5045 people in 2005, that is, by 34%, while total cigarette production at the same period increased 2.7 times (see Table 4). Therefore, any policy that would support an increase of cigarette production in Ukraine would not cause an increase in employment at tobacco factories. In 1998, R.J. Reynolds closed a factory in Lviv. 620 workers were discharged. In 2000 (compared to 1999), BAT increased production by 68% and discharged 29% of workers.

Table 3. Employment and salaries (in UAH) in tobacco industry

The average salaries at cigarette factories are rather high when compared with other kinds of industry salaries. By international standards the salary is rather low: in 1996 it was equal to USD215, and in 2005 - USD592. The top managers of most of the TTC tobacco factories are foreigners, who have salaries that correspond to those of tobacco managers in Western countries, while the average salaries of Ukrainian workers are much lower.

Content 'Tobacco or Health in Ukraine. Economic issues, 2006 update'

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