Annual Report 2012

Employees

Employees form the core of the Group’s profitable business and sustainable corporate growth. Acron Group invests considerable funds in its motivation and professional growth system for employees, which guarantees every employee fair remuneration for his/her work, a high degree of social security and comfortable working conditions, and provides every employee with equal and broad opportunities for career promotion. The Group’s obligations are set forth in the Collective Agreements.

Employee dynamics and HR highlights

As of December 31, 2012, Acron Group had 15,644 employees, up 10% year-on-year. The Group is systematically hiring new employees to support investment projects for construction of mining and processing facilities, as well as new production units at existing processing plants.

Employee turnover

Employee turnover is an important sustainability indicator. In 2012, the level of employee turnover at the principal production facilities remained at an acceptable level: 7.9% at Acron, 7.6% at Dorogobuzh, and 9.4% at Hongri Acron.

Trade unions

Trade union organisations operate at the Group’s production facilities. The primary trade union organisations include 69% of personnel at Acron, 36% at Dorogobuzh and 100% at Hongri Acron.

Motivation

Acron Group wants employees to be committed to achieving excellence in operations and in their professional and career development. The Group understands that an effective motivation system is the best way to drive productivity. The Group is committed to personnel motivation using cuttingedge methods and creates an effective system of monetary, non-monetary and moral incentives.

Monetary incentives

Salary

Acron Group maintains a competitive salary level for its employees. In 2012, the average monthly salary of employees at the principal production facilities of the Group was:

  • Novgorod-based Acron: RUB 34,300, 20% higher than the average monthly salary in the Russian chemical industry and 63% higher than the average monthly salary in the Novgorod region (RUB 21,000).
  • Dorogobuzh: RUB 27,700, 34% higher than the average monthly salary in the Smolensk region (RUB 20,600).
  • NWPC: RUB 54,000, 56% higher than the average monthly salary in the Murmansk region (RUB 34,600).
  • Hongri Acron: RUB 13,300.

In 2012, pursuant to the Collective Agreements, the Group performed salary adjustments: 10% at Novgorod-based Acron and 10% at Dorogobuzh. At NWPC, salaries were individually adjusted for 60% of employees. At Hongri Acron, the average salary increased 15%.

Bonuses and compensations

Acron Group employees’ salaries include bonuses for meeting key operating goals, compensation for specific labour conditions and schedules, incentive benefits and extra payments for professional skills.

Payments and social benefits

Under the Collective Agreements, the employee social package includes extra leave, labour safety payments and material assistance. In 2012, Acron spent RUB 144.8 million, Dorogobuzh spent RUB 35.2 million, and Hongri Acron spent RUB 144.3 million (under the social insurance programme) on social payments under the Collective Agreements and otherwise.

Non-monetary incentives

An extensive system of social programmes embracing health care, housing programmes, support for families with children and unemployed retirees (former employees) boosts employee motivation and helps attract and retain highly qualified experts and young people.

Healthcare

Acron Group HR policy makes special provision for the physical and psychological health of employees, with:

  • On-site health clinics equipped with modern therapeutic and diagnostic equipment, and emergency medical care available 24 hours a day: outpatient clinics, rehabilitation treatment, medications, regular preventive exams, and additional exams under voluntary health insurance programmes (in 2012, a medical unit was established at the Oleniy Ruchey mine site).
  • Theropeutic resort treatment at Group-owned and third-party recreation centres at a discount, including members of employees’ families, and sports and recreation camps for children.
  • Opportunities to be engaged in fitness and sports: for employees and members of their families the infrastructure includes stadiums, fitness and sports centres and children’s sports clubs. Acron and Dorogobuzh hold annual corporate sports tournaments attended by thousands of employees. In 2012, Acron constructed a new all-purpose facility capable of hosting competitions for volleyball, basketball, badminton and indoor soccer.

Support for families with children

The Group is committed to comprehensive support for employees with children and guarantees:

  • One-time cash compensation when a child is born.
  • Monthly subsidies for mothers or fathers caring for children under the age of three.
  • Reimbursement of the costs of staying at recreation centres for children up to 18 years of age.

Social support for unemployed retirees

Acron Group undertakes to:

  • Pay one-time compensation to retiring employees.
  • Provide regular monetary support for unemployed retirees.
  • Preserve the right of unemployed retirees to enjoy corporate medical care and discounts on resort health treatment.
  • Hold social and cultural events for retirees.

Support for young specialists

The Group provides young specialists who come to Acron and Dorogobuzh from other regions with reimbursement for moving expenses and partial rent reimbursement during the first five years of employment. Young specialists may also choose to live up to five more years in apartments owned by the Group. Acron works to improve employees’ housing conditions by partially reimbursing their mortgage interest.

Moral incentives

Another motivating factor is the employee incentive system, which includes both corporate and governmental awards.

In 2012, almost 2,500 Acron employees were given corporate awards: listings on the Honours Board and in the Book of Honour, letters of appreciation, company commendation and the title of Corporate Veteran of Labour. Forty-three employees were awarded Certificates of Honour and commendations from the Ministry of Industry and Trade of the Russian Federation, and two employees received Russian governmental awards: the Medal of the Order for Merit to the Fatherland, II Class.

Over 400 employees of Dorogobuzh were given corporate awards, 22 received commendation letters and Certificates of Honour from Smolensk region officials, and four were distinguished with commendation from the Ministry of Agriculture and the Ministry of Industry and Trade of the Russian Federation.

Two NWPC employees were conferred with titles of Honoured Chemist of the Russian Federation and Honoured Miner of the Russian Federation, four employees were awarded merit certificates and commendations from relevant Ministries, and ten employees were given commendation letters from the mayor of Kirovsk.

Roughly 400 employees of Hongri Acron are given corporate honorary degrees and awards each year. The pride programme includes:

  • Awarding distribution employees with the corporate titles of Best Salesperson, Experienced Salesperson, Service Celebrity, Best Family, etc.
  • Holding competitions among employees and giving the winners honorary titles: Excellent Worker, Top Worker, Banner-Bearer of March 8th (for women), and Top Team.

Workplace and industrial safety

Effective systems to reduce production risks and enhance a stringent operating culture are a strategic policy of workplace safety. The workplace safety programme is primarily targeted at ensuring uninterrupted safe operations and minimising occupational injuries. In 2012, Acron (Veliky Novgorod) registered six industrial accidents, Dorogobuzh recorded four accidents, NWPC registered one industrial injury, and Hongri Acron registered one accident.

Industrial and workplace safety policy envisages the following set of measures:

  • Bringing buildings, structures, rooms, construction and industrial sites in conformity with norms required by construction rules and regulations.
  • Diagnostics of equipment to ensure safe operation, as well as diagnostics of commodities and materials.
  • Certification of workplace labour conditions.
  • Training, instructing and quizzing workers on industrial and workplace safety.
  • Provision of protective clothing, safe shoes and other individual protection gear.
  • Obligatory regular medical exams for workers.
  • Transparency and access to information related to workplace and industrial safety and environmental protection.

Comprehensive improvement and design concepts for Acron Group’s facilities

In 2012, in the context of Fair Work Programme, the Group approved a standard of conformity with industrial and technical aesthetics, which is based on unification of isolated projects, technical solutions and design considerations for both reconstructed and future planned facilities in compliance with the architectural concept of comprehensive improvement.

In the context of comprehensive improvement, Acron and Dorogobuzh elaborated new design projects for decorating offices and other spaces, made repairs, and improved landscaping, industrial sites and adjacent motorways.

Talent pool creation and personnel training

The key objective of the Group’s personnel policy is to attract both the sector’s best experts and promising young specialists, providing them with every opportunity to discover their professional and creative potential and grow their careers. The Group boasts an effective multistage programme for employee training, professional education and retraining for new opportunities and career development.

Students and recent graduates

Acron and Dorogobuzh are interested in engaging high-school students from Novgorod and Smolensk regions for further training in popular disciplines.

As part of its cooperation with local secondary schools, Acron Group organised:

  • In-depth study of related disciplines in specialised classes taught by university lecturers.
  • Awards for winners of academic contests in relevant subjects.
  • Meetings of the Group’s experts with teachers, students and parents, and tours of the Group’s facilities.

Another important HR activity is organising apprenticeships for undergraduates to transition into subsequent employment.

Acron and Dorogobuzh invite undergraduates in their third and fourth years of study for apprenticeships and familiarisation with available jobs and corporate culture. This programme includes:

  • Signing a fixed-term labour agreement.
  • Providing accommodation for the apprenticeship period.
  • Learning about the profession and labour conditions at the facilities.

Students who do well in their apprenticeships and are ready to join Acron or Dorogobuzh after graduating sign letters of intent with the Group (university students in the fourth year, students of professional colleges in the third year).

Students are guaranteed:

  • Scholarships for the entire training period.
  • Industrial and pre-graduation practical training.
  • Employment after graduating.

Young specialists

Young specialists are employees under 30 (inclusive) with higher professional degrees in specialities in demand at the facilities and who are hired within a year of graduation. The apprenticeship and adaptation programme helps young specialists adjust to their new jobs. Every employee is assigned to an apprenticeship manager, who draws up an individual plan. The apprenticeship takes up to a year and a half to let the young specialist both develop professional skills and learn about the Group’s activity, study workplace and industrial safety, and attend scheduled training events (seminars and workshops). After the apprenticeship, each young specialist must pass certification to assess his/her business and personal qualities, knowledge and skills gained during the apprenticeship, as well as prospects for professional and career growth.

The system of bonuses and compensatory payments for young specialist includes a one-time monetary allowance upon hiring, weekly additional payments for meeting apprenticeship plan goals, and a bonus for passing the certification test, subject to successful apprenticeship completion.

Training and career

Acron Group pursues three key HR policies to improve employees’ education and qualifications, and to provide them with opportunities to master related skills and professions:

  1. Professional training and retraining, including teaching professions and apprenticeship.
  2. Training and retraining under labour safety regulations.
  3. Improving qualifications: improving workers’ qualification degrees, courses, workshops and training, talent pool classes, tuition support for university and postgraduate studies.

Corporate training programmes play the most important role in the improved qualifications system. Acron and Dorogobuzh operate centres equipped with state-of-art technologies for training chemical production workers. Teaching is provided by both in-house experts and outside lecturers from leading universities and organisations.

In 2012, over 3,100 Acron employees and over 1,253 Dorogobuzh employees took advantage of opportunities to improve their qualifications and professional skills.

Hongri Acron personnel are trained both in-house and by third-party organisations. Corporate specialist training includes several areas: introductory training for new employees, everyday training and training programmes, trainings upon transfer to another job, training upon promotion, and special training programmes to prepare dedicated specialists. In terms of staff development, the Company uses its 100 Technologists training programme to attract specialists with technical degrees.

Acron has established 11 certifying committees (by core activity) for regular assessment of its top management and specialists. The goal of assessment is to verify an employee’s conformity with his/her position and determine his/her promotion prospects and professional growth profile. In 2012, 146 employees passed certification, 47 of them improved their qualification category and two of them were recommended for talent pool enrolment.

Back to top
sustainability-employees.jpg
sustainability-families.jpg
sustainability-workplace.jpg