90 MONITORING OF CUSTODIAL SETTINGS IN UKRAINE: money was borrowed for some current needs of the institution; • in Seleznivka penitentiary (No. 143) wages of prisoners were unlawfully subjected to insurance deductions; the administration of this institution failed to create proper working conditions and violates the constitutional right to wages no lower than established by law. Minimal wage rates are also applied to remuneration of prisoners’ work in Berdychiv (No. 70), Bucha (No. 85), Stari Babany (No. 92), Shepetivka (No. 98) and other penitentiaries; in Bucha penitentiary (No. 85) the monitoring team established the facts of unpaid work by prisoners who were not informed about the applicable wages. Moreover, prisoners who are involved in on-site maintenance and service activities and work full working days are paid only 50 % of the minimal wages. Penitentiaries do not provide their prisoners with the opportunity to perform paid work in order to improve the prospects for their employment upon release. During the monitoring visit to Bucha penitentiary (No. 85) the number of prisoners working in the production area totaled 226 although according to the financial plan of the facility this number was to be 159. This situation created the conditions for unfair remuneration: in 2013 prisoners were making, on the average, only 370 UAH per month. NPM also found multiple facts of institution administrations’ signing tolling contracts with businesses (specifically, on making of knitted garments and other products), with application of the minimum rates for labor costs. For example, the labor costs of “Gloria Jeans” Company per one T-shirt made by prisoners of Seleznivka penitentiary (No. 143) were only 0.11 UAH. Similarly, in Berdychiv penitentiary (No. 70) the prisoners’ pay per one pair of gloves was 0.05 UAH. Therefore, the contracts made by these institutions were economically unfeasible for prisoners as they excluded any possibility of fair wages. Examination of labor remuneration of a team of maintenance workers at the trailer assembly site in Bucha penitentiary (No. 85) revealed that within 3 months (from August through October 2013) 7 prisoners were officially paid only 10 UAH per month, which amounts to degrading treatment and may be deemed nothing else but slave labor. Another problem is that SPSU inadequately finances expenses for remuneration of on-site service personnel engaged out of prisoners. It should be noted that such costs are financed from the state budget as per Line Item 2111 “Wages”, jointly with the expenses for remuneration of hired personnel. Indeed, the wages of this category of prisoners were paid at a rate less than half of the minimal amount established by law, despite the fact that most of these prisoners, given the continuity of the support technological cycles at penitentiary institutions (canteens, inter-regional hospitals, laundries, etc.), worked at least 8 hours per day, including weekends and holidays. Work on weekends and holidays, in violation of the requirements of the Labor Code of Ukraine, was not remunerated at all. There are instances of unjustified deductions from prisoners’ wages. In 2011 the State Penitentiary Service of Ukraine signed a memorandum of cooperation in the field of insurance with a private joint stock entity “Ukrainian

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