Annual report 2013

Social programs

The Company has a working system of social programmesSee Appendix 4 for Russian-based Group enterprise statistics. to enhance employees’ efficiency through social benefits and targeted grants.

Healthcare and health resort treatment programmes

For many years, the Company has been implementing a health resort treatment programme involving employees and their families. The benefit was used by 26,335 people in 2013 at a total exceeding 1.5 billion roubles.2

1,600 Company workers’ children spent their vacations at children’s recreations institutions on a programme worth 162 million roubles.

The decreasing share of health expenditures in the social programmes is due to changed statistical methods as, since 2012, workers’ and their families’ travelling expenses, reimbursed by the Company, are counted as another item in personnel expenditure calculations.

Corporate air travel programme

The Company runs an air travel programme for Far Northern enterprise personnel to afford vacation trips. The employer reimburses workers’ and their families’ out and return fares and freight charges once a year, while previously the benefit was available once every two years. The relevant expenditures exceeded 3 billion roubles in 2013 as the Group managed to keep corporate tariffs at the previous year’s level.

Pension programmes

True to the social responsibility principles, Norilsk Nickel implements corporate pension programmes to promote long-term employment and improve retired workers’ life. Corporate pensioning is an essential aspect of its social policy.

Since the autumn 2013, the Naslediye non-government pension fund (previously Norilsk Nickel non-government pension fund) takes part in the implantation of the Company pension programmes. The fund managerial staff has been changed to enhance its efficiency.

Every worker has the opportunity to add a non-government pension in addition to the occupational one on the Share-Based Pension programme, which includes several pension plans1. The programme allows make pension accumulations well in advance with parity employer/employee contributions to the employee’s personal Naslediye account.

22,300 took part in the programme and 4,170 received corporate pensions by the end of 2013.

The Corporate Pension Supplement programme envisages grants to retiring employees with average Company work records of 30-33 years as they leave the Far North. The programme involved 884 workers in 2013, and the Company spent 476.7 million roubles on it.

All told, the Company allocated 1.1 billion roubles on pension programmes.

Share-Based Pension programme funding, 2011-2013, million roubles

Housing programmes

The Company continued in 2013 with the implementation of the Our House/My Home corporate housing programme, which aims to end an end to key personnel shortages and establish reliable core HR at NN Group enterprises in the Far North2.

The programme was amended in 2013 to promote workforce mobility within the Company as its participants were allowed to retain programme membership when transferring to other Norilsk Nickel branches.

The Company vouches to purchase 500-550 apartments a year for its employees, as outlined in the Collective Agreement for 2012-2015.

With a 1.4 billion roubles budget, the programme involved 832 branch employees, 239 Kola MMC workers and 231 office employees in 2013.

Programme effectiveness is demonstrated by the low labour turnover rate in the Zapolyarny Branch as compared to the entire Group.

Norilsk Nickel’s project was highly commended by the jury of the Managerial Association’s contest People Investor 2013 under the motto, “Companies investing in people.” The Our House/My Home programme was recognised as one of the best social efforts in human resource management by Russian and transnational companies.

The easy-term loan programme helps young people to purchase housing property in Norilsk and the Taimyr Dolgan-Nenets Municipal District. Promising and highly proficient employees up to 35 years of age and holding a Company job for longer than 12 months are eligible, including those invited to work from other regions.

Housing purchase loans were received by 127 employees in Norilsk and the Taimyr Dolgan-Nenets Municipal District in 2013. Their average age was 29 and their average labour record 4.3 years.

All told, the Company allocated 1.6 billion roubles to fund housing programmes in 2013.

Installation programme

Participants in the Installation progamme benefit from grants to new employees in Norilsk and the Taimyr-Dolgan-Nenets Municipal District. They are entitled to the reimbursement of travel expenses, including:

  • Fares and freight charge compensation (the ceiling reimbursable freight charge was set in 2013 at 45,000 roubles);
  • One-time installation grant up to 50,000 roubles;
  • Housing rent grants for the first three years of employment, to a maximum of 15,000 roubles a month.

The programme involved 1,095 employees in 2013, with total expenditures amounting to 125.3 million roubles.

Socially oriented projects

The available system of corporate sport and mass fitness events allows the Company to attract workers and their families to regular athletic pursuits and develop its corporate culture.

The following corporate competitions were held in the Norilsk industrial district in 2013: the Norilsk Ski Track fitness marathon, the Metallurgist Day corporate running race, the corporate futsal championship, and the Norilsk Nickel Grand Prix international futsal tournament. Not only Norilsk athletes were competing: there were guests from the Kola MMC, OJSC Yenisei River Shipping Company, and OJSC Arkhangelsk Merchant Harbour. Sochi and Monchegorsk hosted the Dad, Mum and Me Are a Sporting Family away tournament and corporate swimming, basketball and volleyball tournaments.

More than 28,000 employees engaged in sports activities in 2013.

Alongside with the ambitious corporate sport programme are annual mass events involving not only Company workers, but also a wide range of local people.

Programme to improve staff social conditions

The Russian-based Group enterprises possess over 2,000 social facilities with a total area exceeding 300,000 sq m.

The programme incorporates a comprehensive approach to project repairs, including design, capital repairs with engineering networks and communication lines replaced, and the equipment of projects. Extensive capital repairs on 25 social facilities have been completed, and their use has resumed. Labour conditions were improved for 3,903 workers, 1815 of them in the Norilsk industrial district. Related expenditures amounted to 361,738,000 roubles – a 5.5% increase since 2012. Programme per capita expenditures increased to 5,870 roubles.

Number of social facilities, %

Improvement of Social Conditions: per capita programme expenditures, 2011-2013, thou roubles