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Draft Law of Ukraine "On Collective Labor Disputes": analysis of innovations and prospects for the settlement of labor conflicts

Collective labor disputes have always been one of the most urgent problems in the field of labor relations. Effective settlement of such conflicts is a guarantee of stability in the labor market and harmonious coexistence of the interests of employees and employers. Currently, the current legislation does not fully meet the needs of the modern labor market, which requires new approaches to the regulation and resolution of collective labor disputes.

In the context of these problems, the draft Law of Ukraine "On Collective Labor Disputes" No. 12034 dated September 16, 2024 was registered in the Verkhovna Rada of Ukraine. The document is designed to improve the legal regulation of labor conflicts, as well as to adapt national legislation to the requirements of the modern market and international standards.

The current Law of Ukraine "On the procedure for resolving collective labor disputes (conflicts)" was adopted in 1998, it laid the foundations of legal regulation of this area. However, a significant part of the procedures remained imperfect, and some important aspects, in particular the issue of strikes and forced methods of dispute resolution, did not receive proper legal settlement.

Basic provisions of the draft Law of Ukraine "On Collective Labor Disputes"

The new draft law proposes radical changes in approaches to the regulation of collective labor disputes. It not only updates the current norms, but also introduces new institutions that were not previously provided for by Ukrainian legislation.

1. Division of collective labor disputes into "disputes about rights" and "disputes about interests"

This division is a fundamental innovation that allows us to clearly define the type of conflict and apply appropriate legal mechanisms for its resolution. Disputes about rights arise due to violations of existing labor standards, and disputes about interests arise due to the need to establish new working conditions. This distinction avoids confusion between different types of disputes and ensures their quick and efficient resolution.

2. Mandatory pre-trial settlement of disputes

One of the key changes is the introduction of mandatory pre-trial settlement of collective labor disputes through mediation or arbitration. This avoids protracted legal proceedings and allows the parties to reach a compromise without involving the court system. This approach corresponds to international practice, in particular the recommendations of the International Labor Organization (ILO).

3. Reforming the institution of strikes

The right to strike is one of the key rights of workers in the fight for their interests. The draft law introduces a clear regulation of this right, in particular the procedures for declaring a strike, conducting it and terminating it. It is envisaged to strengthen the requirements for the legality of strikes and their legalization through the relevant state bodies.

4. Introduction of the lockout institution

The lockout is one of the most controversial institutions introduced by the draft law. It provides for the employer's right to temporarily suspend the operation of the enterprise or its part in the event of a collective labor dispute. The purpose of this innovation is to balance the interests of the parties to the labor conflict and provide employers with an effective tool to influence the situation.

The introduction of a lockout can cause resistance from the trade unions, because it is a tool that gives the employer the opportunity to put pressure on the workers. However, if properly regulated, a lockout can be an effective means of reaching a compromise.

5. Compliance with international standards

In addition to domestic innovations, the draft law takes into account the provisions of international acts, such as the European Social Charter and ILO Conventions. This ensures an increase in the level of protection of workers in Ukraine and contributes to the harmonization of Ukrainian legislation with international standards. Special attention is paid to the protection of the right to work, as well as the right to collective bargaining and strike.

Problems that remain unresolved

Although the draft law contains a number of progressive novelties, it also has certain weaknesses. In particular:

-the issue of the parties' responsibility for evading participation in conciliation procedures requires additional settlement;

-lack of clear control mechanisms for the implementation of arbitration and mediation decisions;

-the need to improve the mechanisms of financial support for strikes and lockouts.

Along with the draft Law of Ukraine "On Collective Labor Disputes" No. 12034 dated 16.09.2024, another draft Law of Ukraine "On Amendments to the Code of Ukraine on Administrative Offenses Regarding Strengthening Liability for Violation of the Requirements of the Law on Collective Labor Disputes" No. 12035 dated 16.09. 2024, which provides for liability for violation of the requirements of the legislation on collective labor disputes.

The draft law proposes to clarify the names and separate provisions of Articles 41-1, 41-2 and 41-3 of the Code of Ukraine on Administrative Offenses, as well as supplement it with a new Article 41-4. In particular, responsibility is assumed for the head of the body or the person authorized to lead in a strike, and an employer for notifying a party to a collective labor dispute in a timely manner about conducting a strike or lockout, as well as for organizing a strike or lockout that was recognized by the court as illegal.

According to the draft law, untimely notification of a party to a collective labor dispute about a strike or lockout entails the imposition of a fine on the head of the body or a person authorized to lead the strike, or on the employer in the amount of thirty to one hundred tax-free minimum incomes of citizens.

The organization of a strike or lockout, recognized by the court as illegal, involves the imposition of a fine in the amount of one hundred to two hundred tax-free minimum incomes of citizens on the head of the body, the person authorized to lead the strike, or the employer who implements the lockout.

Thus, the Draft Law of Ukraine "On Collective Labor Disputes" is a significant step forward in reforming domestic labor legislation. It not only eliminates existing gaps, but also introduces new tools for effective settlement of labor conflicts.

Ultimately, the adoption of this law can become the basis for the development of new, fairer and more effective labor relations in Ukraine.