Project reference · Food manufacturing

Seven years as a factory’s HR department.

A foreign-owned food plant in Ukraine runs around the clock to supply international customers. When its owners called us in, the plant had about eighty employees, a collective agreement that broke the Labour Code in thirteen places, and no one in charge of HR. We rebuilt the function, ran it and its payroll through two changes of owner, and came back years later to redesign the shifts.

Seven years, one client

Continuity

About 80 people, paid twice a month

Payroll

13 labour-law gaps closed

Compliance

Two changes of owner

Ownership

The last project

From two crews to three

In high season the plant worked six days and six nights a week on two crews. That kept output up and pay close to the market, but only through overtime the Labour Code does not allow.

BEFORE · TWO CREWS, SIX DAYS AND SIX NIGHTS Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Crew A Crew B Overtime fills the gap: about 60 extra hours per worker a month in high season. AFTER · THREE CREWS, TWO DAYS · TWO NIGHTS · TWO OFF Crew A Crew B Crew C Day shift Night shift Day off
Two weeks of the rota, before and after. Three crews on two days, two nights and two days off cover every shift inside the law. Getting there took a salary market study, a new pay system without grades, a new collective agreement and about twenty more people on the shop floor.

The brief

What the client actually needed

At first, two senior hires: a finance director and a head of production. Then the harder request. The owners were abroad, the plant’s HR paperwork had drifted out of line with Ukrainian law, and a labour inspection had noticed. They needed someone on the ground who could fix it and then keep it fixed.

That meant the obvious work: contracts, orders, holiday schedules and payroll. It also meant work permits for the expatriate who ran the plant, a collective agreement negotiated with the workforce, clear rules on who could sign what, and support whenever auditors, social-security inspectors or the customers’ own social auditors came to visit.

The hard parts

Where it gets difficult

Fixing the rules while people are paid under them

A new collective agreement, pay regulation and grading system had to be negotiated with the workforce’s representatives and registered with the authorities, while the old rules still set everyone’s pay that month.

Owners change, payroll does not

The parent group was sold twice while we worked for the plant. Each sale brought new signatories, new auditors and new reporting lines. Staff still had to be paid on the same two days every month.

A plant that cannot pause

Continuous production means night work, evening premiums, weekend cover and cleaning crews on their own rotas. Ukrainian law caps overtime at 120 hours a year per worker, and in high season the plant was using that up in two months.

Wartime

From 2014 some employees were called up for military service. The law protects their jobs and average pay while they serve, and the plant had to keep running without them.

Management in three languages

Owners in the United States and European managers working in English, a workforce speaking Ukrainian and Russian. Every regulation we wrote existed in at least two languages.

Audits from every side

Internal-control auditors sent by the owners, social-security inspectors, and the social audits large customers require from their suppliers. Each needed complete, consistent records, and we prepared the plant for every one of them.

What we did

Search, rebuild, run, redesign

  • 2011–12 · Search. Placed the finance director and the head of production, and ran a general-manager search for a sister plant in another country.
  • 2012–14 · Rebuild. Our HR director worked on site: collective agreement, pay and bonus regulation, job descriptions, holiday schedules, settlement of unpaid overtime and work permits for the expatriate manager.
  • 2013–17 · Run. HR administration and payroll moved to us after two months of parallel calculation and a formal go/no-go decision: pay twice a month, holiday and sick pay, reporting to the tax office and social funds, a salary slip for every employee.
  • 2018–19 · Redesign. A salary market study, two full-year budgets compared side by side, a three-shift rota and a new pay system, written into a new collective agreement.

The client came back to us in 2018, four years after our HR director had left the site. For a service like this, that is the reference that counts.

In the client’s words

“You have already brought order to our HR once before.”

The plant’s HR manager, asking us back for the three-shift project in 2018.

How we work

We do not show you another company’s name

The client, its owners and its people are not named here, and they will not be named in a meeting either. We are glad to talk this project through in detail. What we will not do is discuss the last client that way with you, or you with the next one.

Next step

Running a plant in Ukraine from abroad?

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