Ukraine’s newly elected president is seeking to make Ukrainian auto makers sign contracts with foreign companies to provide them with foreign labor and spare parts.
A draft bill that was submitted to parliament on Tuesday would require manufacturers to buy products from foreign companies, such as auto parts manufacturers, if they want to continue producing in Ukraine, a move that would make it easier for foreign companies like GM, Ford and Toyota to enter the market.
The proposal also seeks to require foreign companies selling cars in Ukraine to offer foreign workers at least a 10 percent salary, and allow them to hire more people from abroad.
Foreign companies in Ukraine are already required to pay wages and benefits of up to 15 percent of their total production costs.
They have the option to offer lower wages and pay less in overtime, however, and the bill would also require companies to make employees take unpaid leave, among other things.
The legislation also would require foreign automakers to pay an annual royalty of up.75 percent to Ukraine.
The bill was tabled in parliament on July 18, but it was approved by the upper house on July 23.
The measure is expected to be approved by Ukraine’s National Assembly.