Annual report 2013

Basic Principles

Personnel management strategy

Human capital is the Company’s most precious possession and one of the main vehicles for its successful development. Norilsk Nickel managers are fully aware of this and make a point of providing labour conditions that enhance efficiency and involve staff in the meeting of corporate goals. The Company also guarantees the transparency of personnel management methods.

In 2013, the Company launched its human capital development programme, aimed at the implementation of Norilsk Nickel business strategy through the greatest possible efficiency, attained with consideration for mining development trends.

Increased efficiency is among the top priorities of the Company’s personnel policy. In keeping with its corporate strategy, the Company drafted, in 2013, a project to implement an efficiency management system, which envisages achievement evaluation with KPIs and competence evaluation with the 360 Degrees method.

Human rights

MMC Norilsk Nickel bases its activities on respect for every worker. Observance of the labour, social and economic rights of both staff and the local population complies with the Constitution of the Russian Federation, the standards of the International Labour Organisation and the relevant legislation in the Company’s areas of operation.

The Company grants every employee equal opportunities in terms of his/her labour rights irrespective of gender, age, ethnicity, social and property status, official position, residence, religious and political convictions, and other factors not pertaining to professional competence. All employees have equal opportunities for self-fulfillment in labour, and are entitled to the just and unbiased evaluation of its results. Personnel placement and promotion depends solely on workers’ proficiency, knowledge and knowhow.

The Company develops programmes for personnel development and social support, and implements its staff’s social and economic rights of social welfare, education, protection of family, dwelling, free creativity, and participation in cultural activities. The Company observes its staff’s right to unite in organisations of their choice, which is an inalienable part of the freedoms of association and negotiation.

The Labour Ethic Code observed in all Company subdivisions contains the rules of corporate conduct, and moral norms valid in contacts within the Company and with interested parties outside it.

Proceeding from the premises of international organisations’ declarations and conventions, and the Constitution and the Labour Code of the Russian Federation, the Company completely rules out underage employment and the employment of persons under the age of 18 on harmful and hazardous jobs. The Company strictly complies with the prohibition of women’s work on hazardous/severe mining jobs, and respects and observes mothers’ rights.

The Company recognizes the right of Far Northern indigenous ethnic minorities to preserve their identity in the territories it uses, and promotes initiatives to preserve and develop their culture.

Norilsk Nickel proceeds in its overseas economic activities from human rights and the constitutions of the host countries: Australia, Botswana, Finland and South Africa. The legal basis of its approach to labour and other relevant relations complies with the universally recognised international legal norms and principles, ILO standards, and the host countries’ national legislations.

Personnel characteristics

The average headcount of the Group enterprises increased slightly in 2013 to 83,000 in Russia and 2,000 abroad. As before, the majority (71%) of the Russian-based enterprises staff is concentrated in Norilsk and the Taimyr (Dolgan-Nenets) Municipal District. The Northwestern Federal District, particularly the Kola Peninsula, is another area where the Company employs a considerable part of its staff (18%).

Those in the 30-49 age bracket make up a majority of the staff (55.5%). They possess considerable work experience and retain fine physical condition. This category of workers increased slightly in 2013 as the share of young employees – those below 30 years of age, shrank from 23.4% in 2012 to 22% in the reporting year.

The share of employees with higher education increased to 27.4% (25.9% in 2012) due to the increase of the managerial and expert staff.

Distribution of Russian-based enterprise staff, 2011-2013, %

Distribution of Russian-based enterprise staff according to category and Gender, 2011-2013, %

Distribution of Russian-based enterprise staff according to education, 2011-2013, %

The staff turnover in Russia slightly increased against 11.8% in 2012 to 12.1% (10.8% in the Norilsk industrial district). Dismissal by personal wish made up 75.7% of the total, and 7.8% were dismissed for discipline violations and other misdemeanours. 57% of persons dismissed by personal wish were below 45 years of age.

Distribution of Russian-based enterprise staff according to category and Gender, 2011-2013, %

2011 2012 2013
Higher 24.7 25.9 27.4
Undergraduate 0.4 0.5 0.4
Secondary vocational 20.0 20.1 20.1
Primary vocational 21.2 20.8 20.4
Secondary general 33.7 32.6 31.8

Distribution of Russian-based enterprise staff according to category and Gender, 2011-2013, %