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Wednesday, February 7, 2007

New labour system would affect on real estate prices

A short news, connected with all labour market but it should depends on constructors as well.

Parliament's Speaker Oleksandr Moroz offers to change a remuneration of labour system in Ukraine.

Member of Socialist party Ivan Bokiy has submitted the draft on hourly wages according to which unqualified workers will earn UAH 10 ($2) per hour and qualified ones UAH 25 ($5) and more.

Mr. Moroz stresses a strong need to implement such a model starting 2008 to change the remuneration of labour system and to get rid of shadow schemes of earnings payment.

The Speaker is aware “it will be a tough decision” but it will help to reinforce the government control of the remuneration of labor system and social protection of workers as well.

I have to note that this bill affect on construction market no doubt. Now ordinary worker gets one of the lowest salary in labour market. And this figures correlate with cost of building. But if the such bill will be approved, the labour cost will increase and total cost grow as well. As you understand it would be affect onto the housing market price.