New quotas for defense and energy
Prime Minister Serhii Koretskyi announced on October 23 that Ukraine is ending automatic 100% mobilization exemptions for workers in critical sectors. I find the government decision to stop companies from using exemptions as a business model necessary, as Koretskyi noted the number of exempted workers grows by tens of thousands every month. This change targets defense manufacturing, energy, telecommunications, logistics, and utilities. While these sectors keep their critical status, the government will now review the criteria used to determine which businesses qualify. Koretskyi said the changes seek to make the system fairer and prevent abuses while allowing those who have defended the country for five years the opportunity to return home. Koretskyi also warned that Ukraine must prepare for possible developments, including increased mobilization in Russia.
The reported changes involve significant reductions in how many workers a company can keep away from the draft. The government approved proposed changes on October 13 that reportedly cut exemption quotas for defense and energy companies from 100% to 85%, while utility companies face a drop from 75% to 60%. Under the new rules, Defense Minister Yevhenii Khmara said defense industry companies can exempt up to 95% of their eligible employees from mobilization to ensure they can plan operations, retain specialists, and increase production.
| Industry Type | Reported Exemption Limit |
|---|---|
| Defense | 85% to 95% |
| Energy | 85% |
| Utilities | 60% |
Voluntary service mechanism
The Defense and Economy ministries will work out the conditions for the mechanism with businesses, with the government aiming to approve it by December 1. This mechanism would allow companies to exempt all their employees if they regularly arrange for some of their workers to join the military voluntarily. Koretskyi said those joining the military would know where they serve and for how long while keeping their jobs and salaries. This should give those on the front line confidence that rotations are possible and that others will take their place. I think the transition will be difficult because 63 lawmakers submitted a resolution on October 16 calling for the government to reconsider the changes and consult businesses. These lawmakers and some businesses worry that reduced exemption quotas could leave critical industries without enough workers amid wartime labor shortages.
