Labour relations
UN Global Compact
Principles
Principle 3:
Businesses should uphold
the freedom of association
and the effective recognition
of the right to collective bargaining.
Principle 4:
Businesses should uphold
the elimination of all forms
of forced and compulsory labour.
Principle 5:
Businesses should uphold
the effective abolition
of child labour.
Principle 6:
Businesses should uphold
the elimination of discrimination
in respect of employment
and occupation.
Employees
and social policy
Human capital is one of the key factors contributing to the Company’s successful development. Recognising its
importance, the management of the Norilsk Nickel Group is committed to creating conditions that would
contribute to employees’ performance and engagement, and exercises a comprehensive approach
to HR practices. 103-2
Respect for employees and their rights lies at the heart of the Norilsk Nickel Group’s business.
Guided by the declarations and conventions of international organisations, the Constitution and Labour Code
of the Russian Federation, the Company absolutely rules out employment of children and minors in harmful
and/or dangerous working conditions. The Company strictly complies with the rules prohibiting employment of
women in harsh and dangerous working conditions in the mining industry. The Company respects and protects
the rights of working mothers.
The Company provides its employees with equal opportunities to exercise their labour rights regardless of
gender, age, race, nationality, origin, property, social and official status, place of residence, religious
views and political beliefs, as well as other circumstances unrelated to their professional skills. All
employees have equal opportunities to unlock their professional potential; their performance evaluation is
impartial and fair. Employees are selected and promoted solely on the basis of their professional abilities,
knowledge, and skills.
The Company puts in place programmes for development and social support of its staff and helps them exercise
their social and economic rights in respect of social security, education, family welfare, right to housing,
freedom of artistic expression, and participation in cultural life. for social support, education, family
welfare, right to shelter, freedom of creativity, and participation in cultural life. The Company observes
its employees’ trade union rights, which form an integral element of the right to association and right to
negotiation.
The Company employees’ working hours (weekly hours of work, daily (shift) hours of work, work start and end
time, break start and end time, shifts per day, working/non-working day alternation, specialised working
time patterns for certain categories of employees, including night work and overtime work) are established
by the Company’s internal labour regulations approved by it with due regard to the opinion of the labour
union. The Company has a standard working week of 40 hours as determined by the applicable Russian laws and
regulations. Employees involved in harsh, hazardous and/or dangerous work enjoy a reduced working week of
not more than 36 hours. Women employed in the Far North and equivalent areas are accorded 36 hours of work
per week unless reduced by the Russian regulations. The Company arranges for accurate time and attendance
control of each employee.
HR management
assessment
To assess HR management and make efficient decisions, the Company continuously monitors HR metrics, analyses
the structure of staff costs, labour productivity, and performance of social, adaptation and other
programmes. The Company plans to introduce continuous monitoring of staff engagement and satisfaction,
and conduct a comprehensive HR management assessment starting
from the end of 2018. 103-2
Staff turnover2 401-1
| Indicator |
2013 |
2014 |
2015 |
2016 |
2017 |
| Employments |
10,103 |
13,220 |
15,607 |
15,166 |
11,262
|
| Employee inflow ratio3, % |
12.2 |
16.5 |
19.1 |
18.8 |
14.6 |
| Separations |
13,738 |
12,812 |
14,277 |
15,413 |
15,232 |
| Employee turnover4, % |
12.1 |
11.3 |
10.7 |
10.5 |
10.3 |
| Employee outflow ratio5, % |
16.7 |
15.6 |
17.1 |
19.2 |
20.0 |
1 Including salaried employees and external part-timers.
2 Russian companies of the Group.
3 The ratio of new employments to the total employments as at the end of the period.
4 The ratio of resignations, dismissals for breach of labour discipline, and negotiated
terminations, to the annual average headcount.
5 The ratio of all separations to the total employments as at the end of the period.
Staff composition
The Group’s average headcount
in 2017 was 77,991 employees
in Russian companies, and
959 employees in foreign
subsidiaries.
The headcount decrease across
the Russian operations by 3.8%
against the previous year was due
to the disposal of non-core assets
and implementation of a programme
to improve labour productivity and reduce costs.
The number of FTEs1 at the Russian companies of the Group as at the end
of 2017 stood at 76,900. Most of them work full time (>99%) and on the basis
of unlimited employement contracts (>96%). As at the end of 2017, there
were 598 employees working under
civil contracts. 102-8
The Company is a major employer in
the Norilsk Industrial District and the Kola Peninsula and as such has a significant impact on these
region’s labour markets. The Company has no policies in place providing for the preferential hiring
of locals; staff selection is based on potential employees’ skills, qualifications, and education.
103-2
In 2017, the Company employed 1,029 new permanent staff members from other regions of Russia.
In the reporting year, Bystrinsky GOK (Trans-Baikal Territory) started an ambitious recruitment exercise.
As part of the large-scale recruiting campaign, we informed over 9 million people from 26
Russian regions about the construction of GRK Bystrinskoye providing advice on the working conditions
and available jobs. We used a free employment hotline. In nine months, we hired 1,900 highly qualified
workers, engineering service officers and managers. Residents of the Trans-Baikal Territory accounted
for 80% of employees at Bystrinsky GOK commissioned in 2017.
In 2017, the share of top executives
representing local communities stood
at 98.0%. Russian citizens accounted
for 99.5% of the Russian operations’
total headcount. 202-2
Group’s personnel structure
by territory, %
Headcount of the Group’s
foreign operations, employees
Personnel structure
by gender1, %
Personnel structure
by category, %
Personnel structure
by education, %
Headcount by employment, gender, and region, employees
| Indicator |
2017 |
| Total |
Male |
Female |
| Total headcount in Russia as at the latest reporting date |
77,498 |
54,887 |
22,611 |
| Outstaffed personnel employed under civil contracts as at the latest reporting date |
598 |
393 |
205 |
| Salaried personnel as at the latest reporting date |
76,900 |
54,494 |
22,406 |
| Salaried personnel employed under fixed-term contracts (temporary and seasonal jobs) as at the
latest reporting date
|
2,927 |
1,519 |
1,408 |
| including in the Norilsk Industrial District |
1,582 |
XXX |
XXX |
| including in the Krasnoyarsk Territory (except for the NID) |
53 |
XXX |
XXX |
| including in the Kola Peninsula Industrial District (Murmansk
Region)
|
197 |
XXX |
XXX |
| including in Moscow and other regions of Russia |
535 |
XXX |
XXX |
| including in the Trans-Baikal Territory |
560 |
XXX |
XXX |
| Salaried personnel employed under unlimited contracts (permanent jobs) as at the latest
reporting date
|
73,973 |
52,975 |
20,998 |
| including in the Norilsk Industrial District |
50,817 |
XXX |
XXX |
| including in the Krasnoyarsk Territory (except for the NID) |
3,509 |
XXX |
XXX |
| Including in the Kola Peninsula Industrial District (Murmansk Region) |
12,782 |
XXX |
XXX |
| including in Moscow and other regions of Russia |
4,165 |
XXX |
XXX |
| including in the Trans-Baikal Territory |
2,700 |
XXX |
XXX |
| Full-time employees as at the latest reporting date |
76,150 |
54,030 |
22,120 |
| Part-time employees as at the latest reporting date |
69 |
16 |
53 |
Employments and separations (by gender, age, and region of operation) in 2017
| Indicator |
2017 |
| Employments |
11,262 |
| including male |
8,387 |
| including female |
2,875 |
| Indicator |
2017 |
| including 29 y. o. and below |
4,070 |
| including 30 through 44 y. o. |
4,986 |
| including 45 y. o. and above |
2,206 |
| including in the Norilsk Industrial District |
5,203 |
| including in the Kola Peninsula Industrial District (Murmansk
Region)
|
1,206 |
| including in the Krasnoyarsk Territory (except for the NID) |
740 |
| including in Moscow and other regions of Russia |
1,387 |
| including in the Trans-Baikal Territory |
2,726 |
| Separations |
15,232 |
| including male |
11,126 |
| including female |
4,106 |
| including 29 y. o. and below |
4,059 |
| including 30 through 44 y. o. |
5,438 |
| including 45 y. o. and above |
5,735 |
| including in the Norilsk Industrial District |
9,959 |
| including in the Kola Peninsula Industrial District (Murmansk
Region)
|
1,566 |
| including in the Krasnoyarsk Territory (except for the NID) |
1,054 |
| including in Moscow and other regions of Russia |
941 |
| including in the Trans-Baikal Territory |
1,712 |
Employee outflow ratio by region in 2017, %
| Indicator |
2017 |
| Kola Peninsula Industrial District (Murmansk Region) |
12.1 |
| Krasnoyarsk Territory (excluding the NID) |
29.6 |
| Moscow and other regions of Russia |
20.0 |
| Norilsk Industrial District (NID) |
19.0 |
| Trans-Baikal Territory |
52.5 |
Employee inflow ratio by region in 2017, %
| Indicator |
2017 |
| Kola Peninsula Industrial District (Murmansk Region) |
9.3 |
| Krasnoyarsk Territory (excluding the NID) |
20.8 |
| Moscow and other regions of Russia |
29.5 |
| Norilsk Industrial District (NID) |
9.9 |
| Trans-Baikal Territory |
83.6 |
Employee outflow ratio by gender and age in 2017, %
| Indicator |
2017 |
| Employee outflow, total |
19.8 |
| Employee outflow, male |
20.4 |
| Employee outflow, female |
18.3 |
| Employee outflow, 29 y. o. and below |
28.0 |
| Employee outflow, 30 through 44 y. o. |
14.7 |
| Employee outflow, 45 y. o. and above |
22.7 |
Employee inflow ratio by gender and age in 2017, %
| Indicator |
2017 |
| Employee inflow, total |
14.6 |
| Employee inflow, male |
15.4 |
| Employee inflow, female |
12.8 |
| Employee inflow, 29 y. o. and below |
28.0 |
| Employee inflow, 30 through 44 y. o. |
13.5 |
| Employee inflow, 45 y. o. and above |
8.7 |
Employees on maternity and/or childcare leave in 2017
| Indicator |
2017 |
| Employees on maternity and/or childcare leave as at the year-end |
1,883 |
| including male |
40 |
| including female |
1,843 |
| Employees back from maternity and/or child care leave over the year |
784 |
| including male |
46 |
| including female |
738 |
1 Unless otherwise specified, the indicators are hereinafter given for the Group’s Russian
operations.
HR management
Staff development
Training
Training plays an important role in Nornickel’s personnel development.
The Company has put in place staff training programmes across all functional areas, including production,
machinery repairs and maintenance, procurement, sales, finance, and IT. All staff categories are engaged in
training, from top managers to workers. Training is a continuous process throughout an employee’s career to
ensure consistent expansion and improvement of knowledge and competencies, and enhancement
of professional skills in line with the Company’s growth needs. 103-2
404-2
MMC Norilsk Nickel has the Model Regulation on Professional Training
in place, which the Group companies
use a basis to develop their internal training regulations.
The Group’s employees can benefit
from free staff training, retraining,
skills improvement, and internship programmes funded by the Group companies. The Company engages external
education providers (universities, professional development institutions, research institutes, training
centres, and consultants), and trains employees at its own corporate training centres. The Group’s key
training hubs are the Norilsk Nickel Corporate University (Norilsk) and the Kola Staff Development Centre
(Monchegorsk), which provide training to more than 52,000 employees a year.
After completing the programme,
the trainees are encouraged to send their feedback on the curriculum.
In 2017, Nornickel’s training programmes covered 95,000 employees.
The increase against 2016 is due to
the implementation of comprehensive risk control and professional development programmes, and hands-on
training on the new software
(SAP HCM, SAP ERP, etc.)
In 2017, Bystrinsky GOK trained staff under 70 programmes, both in-person
(at universities and institutions of the Trans-Baikal Territory and the Company’s corporate training
centres) and online. Average annual volume of training per employee trained in 2017 amounted to
70 hours. The Company used advanced distance learning technology to cut training hours. In 2018, we will
continue exploring new training formats.
MMC Norilsk Nickel’s R&D centre, a joint project run by Nornickel and the Siberian Federal University, was
shortlisted at the Russian Mining Excellence Awards as an HR Project of the Year. More than 70 final year
students and postgraduates who major in mining and metals receive training at the centre. It also offers
professional improvement and retraining to the staff
of Nornickel and other Group companies.
Key personnel training indicators 404-1
| Indicator |
2013 |
2014 |
2015 |
2016 |
2017 |
| Employees covered by professional training, retraining and skill improvement1, ‘000
|
47.9 |
54.1 |
63.1 |
70.0 |
95.0 |
| including blue-collar employees |
26.6 |
31.5 |
35.3 |
37 |
54 |
| including managers |
13.6 |
13.8 |
18.2 |
22 |
26 |
| including white-collar employees |
7.7 |
8.8 |
9.5 |
11 |
15 |
| Total training man-hours, ‘000 |
5,250.5 |
5,079.2 |
5,824.1 |
5,666 |
6,630
|
| Average annual hours per employee trained |
109.6 |
93.8 |
92.2 |
80.8 |
70.0
|
| Average annual training hours per employee (based on average headcount) |
63.3 |
63.5 |
71.2 |
69.8 |
85
|
| including blue-collar employees |
– |
– |
– |
77.9 |
95
|
| including managers |
– |
– |
– |
72.4 |
83
|
| including white-collar employees |
– |
– |
– |
31.9 |
44
|
| Professional training costs, RUB mln |
608.9 |
661.5 |
669.1 |
760 |
896
|
| Costs per employee trained, RUB |
12,711 |
12,220 |
10,589 |
10,841 |
9,459
|
1 The 2017 figure exceeds the average headcount as over the year one employee could take part
in more than one training session.
Talent pool
In 2017, the Company focused on designing and implementing training and development programme for the talent
pool members and their mentors, with
99 mentors covered over the year.
We developed a new comprehensive talent pool development programme based on cutting-edge education
technologies.
The programme offers a combination of classroom and online sessions to enable transition from easy-to-follow
on-the-job programmes to a free choice of resources for professional development.
In 2017, we proceeded with our project to automate talent pool management using SAP HCM. The new system will
help standardise talent pool management methods across the Company, consolidate relevant data into a shared
database, and boost the efficiency
of talent pool building.
In 2018, the Company will keep rolling out the talent pool management programme across the Group’s facilities
in the Norilsk Industrial District.
Development projects for target personnel categories
| Target category |
Project |
Priorities |
Coverage in 2018,
employees
|
| Highly qualified workers |
Mentor Academy |
- Professional skills competitions
- Mentor training
- Recognition, corporate forum of mentors
- Participation of Nornickel’s best workers
in WorldSkills Russia
|
> 6,300
|
| Line managers (foremen) |
Foreman University |
- Foreman of the Year contest
- Mind sport tournaments for foremen
|
> 4,100
|
| Young employees
aged 18 to 35
|
Leader, movement
of young professionals
|
- Norma NN (active leisure)
- NIKоNN (mind sports and quests)
- Creativity (contests, festivals and КВNN)
- Induction and Career Guidance (support for young employees, meetings with school
students)
- Initiatives (projects to address social issues)
- The Leader of the Year annual competition
for the most promising young talent teams
|
> 17,000
|
Career guidance, cooperation
with educational institutions
The Company’s career guidance initiatives are integrated into the relevant regional programmes and target
children and youths aged below 35.
Annually, all Norilsk educational institutions and teachers actively involved in the Company’s career
guidance initiatives take part
in the contest promoting innovative practices in vocational counselling.
The Company engages its young specialists in providing career guidance to reach out directly to school
students and shape a positive attitude towards working with Nornickel.
The Company has established close cooperation with educational institutions. Its facilities invite students
to take part
in the Career Start-Up programme
of paid pre-graduation internships
and work placements. The Programme cooperates with 25 Russian universities. In 2017, 400 students joined the
programme, with the top-performing ones awarded Nornickel’s corporate scholarship and 88 hired by
the Company after graduation.
In total, the programme covered more than 700 students, with 106 graduates employed in 2017.
Conquerors of the North is a business game to engage students in solving real business tasks. Nornickel was
the first metals and mining company in Russia
to use this methodology with students.
In the span of two summer months,
the programme participants are offered to take a hands-on training experience and compete in a multi-stage
business game with a focus on teamwork to try and tackle some of the Company’ real tasks. The Company
engaged its own experts to provide mentorship support
to the participants.
The Company prioritises the following training areas:
- underground (subsurface) ore mining;
- mine surveying;
- mineral processing;
- mining electrification and automation;
- mine and underground construction;
- industrial and civil construction;
- ground vehicles, hoisting/conveying and road machinery;
- mining machinery and equipment;
- power and electrical engineering;
- operation of transportation vehicles and systems.
Nornickel places a strong emphasis
on engineering education in Russia, contributing to the promotion of relevant professions. In 2017, we
supported CUP MISIS Case and CUP Technical, case-solving championships among students of Russian technical
universities. During the contest, students dealt with cases related to Nornickel’s operations and gained
insight into the Company’s business processes.
Key career guidance events
Exhibitions and excursions
Schoolchildren and student work brigades
Social skills training programmes
for high school students
Open days and public lectures
Conquerors of the North business career guidance game for interns
Intellectual quizzes What? Where? When?
Dedicated lessons: Company’s Lessons, Norilsk Nickel – Dreams
Continued
Career Start-Up internship programme
Arctic Wave festival
of R&D discoveries
Career contests: Add Colours to Your Town, My Parents’ Job is
Safe, I Would Become a Worker, Dreaming of a Future Career
Additional education programmes for students
of dedicated universities
Average salary
in the Norilsk Nickel Group, RUB ’000 per month
Incentives and rewards
In 2017, the Company continued implementing the grading framework which links each job and related
remuneration to its significance for business processes. This should help
the Company to deliver on its business objectives and strategy, secure maximum return on investment in
human capital, engage and retain the best talent. Grading relies on the points factor method of job
evaluation that takes
into account knowledge and skills,
the complexity of tasks, and level of responsibility. In 2017, we graded 93% managers and white-collar
employees across all companies of the Group.
This year, the Company is planning
to complete the roll out of the grading framework.
| Remuneration policy goals |
Remuneration policy principles |
- Recruitment
- Employee retention
- Promotion of productive attitude to work
- Administrative efficiency and transparency
- Compliance with legal requirements
|
- Progressive remuneration system in line with the job grading framework
- Streamlined approach to salaries and wages
- Motivation of employees to achieve goals and objectives
by improving performance
- Competitive salary
- Promotion of the Company’s image as a responsible and reliable employer
|
Key compensation indicators 202-1
| Region |
Remuneration package, RUB ‘000 |
Average monthly salary, RUB ’000 |
Average monthly salary, RUB ’000 Regional payroll percentage
of the aggregate payroll, %
|
Minimum monthly compensation to statutory minimum monthly wage1, % |
Statutory
minimum wage
|
| Group average |
– |
104.1 |
– |
– |
– |
| Kola Peninsula Industrial District (Murmansk Region) |
82.7 |
77.2 |
12.4 |
1.00 |
14,281
|
| Krasnoyarsk Territory
(excluding the NID)
|
51.3 |
50.0 |
2.4 |
1.17 |
10,592
|
| Moscow and other regions of Russia |
286.0 |
276.9 |
14.6 |
1.81 |
18,742
|
| Norilsk Industrial District (NID) |
111.7 |
102.2 |
68.1 |
1.46 |
16,130
|
| Trans-Baikal Territory |
77.3 |
75.4 |
2.6 |
2.09 |
8,947
|
1 The minimum wage in the Company does not depend of the gender of an employee.
Remuneration package structure in the Group’s Russian entities in 2017, %
Employee awards
To motivate and financially incentivise
its employees to work efficiently and productively, and deliver the highest operational results, the Company
has put in place a structured system of incentives and rewards of various categories and levels: government
awards, ministry and agency awards, regional and municipal awards, corporate Nornickel awards, and internal
awards granted by the Norilsk Nickel Group companies.
To recognise employee achievements, the Company has a range of corporate awards,
including:
- MMC Norilsk Nickel badge of honour;
- MMC Norilsk Nickel titles of honour: Best Executive, Best Specialist, Best Worker;
- MMC Norilsk Nickel certificate of honour;
- MMC Norilsk Nickel certificate of commendation.
In addition to the corporate award, the employee receives a one-off bonus. MMC Norilsk Nickel badge of
honour, the highest corporate award, entitles its owner to a one-off payment, as well as a lifetime
corporate pension.
The nominees are selected and recommended for decoration in accordance with the group-wide Regulation on
Employee Incentives and Awards effective in MMC Norilsk Nickel and Russian entities comprising the Norilsk
Nickel Group.
Employees become entitled to local awards granted by the Group companies in case of invariably strong
performance or significant operational achievements.
Awards are linked to:
- professional holidays;
- anniversaries of standalone units / facilities;
- employee anniversaries.
Selection criteria:
- diligent and efficient fulfilment of responsibilities, improved labour productivity, proactivity and
other achievements, long-standing and impeccable work;
- participation in sports, cultural, or other events aimed at promoting a healthy lifestyle, developing
the corporate culture, etc.
Types of local awards and incentives (branches and companies of the Group):
- Honoured Worker title;
- Labour Veteran title;
- certificate of honour;
- certificate of commendation.
In 2017, 3,589 Company’s employees were awarded for outstanding production achievements and many years of
diligent service, including 37 employees honoured with government awards,
223 — with ministry and agency awards, 1,160 employees who received awards from regional and municipal
authorities, 245 and 1,924 employees who were granted corporate and local awards
of the Group companies.
Social policy
The social policy of the Group is implemented in a consistent manner based on the feedback principle.
To make changes to the existing programmes, develop new ones and close those that have achieved their goals
and objectives, the Company conducts an in-depth comprehensive review and selects the best solutions
in terms of social interests, economics
of the Company, and the interests of its employees. We are constantly monitoring the implementation of our
programmes
to ensure timely identification of possible weaknesses.
The social package includes the following benefits and compensations:
- health resort treatment and vacation
to employees and their families
at subsidised prices;
- payment of return travel and baggage costs to a place of vacation to employees in the Far North and
equivalent areas, and their families;
- one-off financial aid in the face
of certain life events, or hardships;
- additional employee pensions and other types of social guarantees under the existing collective
bargaining agreements and local regulations.
Health improvement programmes
For many years, the Norilsk Nickel Group has been running a programme of rehabilitation and health resort
treatment for its employees and their families.
The harsh climate of the Far North and the nature of the Group’s operations require special care of the
employee health, which makes health improvement and wellness a priority of the corporate social policy.
In 2017, the Company decided to provide the NID’s employees with recreation and treatment at Chinese resorts
in spring and winter. This came on the back
of flight restrictions in summer due
to the reconstruction of Norilsk Airport.
Co-Funded Pension
Plan Programme
Co-Funded Pension Plan, a corporate private pension programme, has been running since 2007. As at the end of
2017, it saw 15,700 participants from among employees of 20 companies, with some 6,000 receiving pensions.
201-3
The programme provides for two pension plans: Parity and Corporate. Under
the Parity Plan, pension savings are co-funded by the employee and
the Company on a par (equal) basis.
The Corporate Plan is designed for highly skilled employees and/or employees with highly sought-after
occupations; within this plan, the Company finances private pension plans for such employees.
In 2017, an average participant contribution amounted to 2.7% of the employee’s salary or the Company’s
average of RUB 2,700.
Participants of the Co-Funded Pension Plan in 2017
| Indicator |
2017 |
2018 (plan) |
| Total participants |
15,700 |
17283 |
| Kola Peninsula Industrial District (Murmansk Region) |
2,763 |
3,204 |
| Krasnoyarsk Territory (excluding the NID) |
0 |
0 |
| Moscow and other regions of Russia |
21 |
25 |
| Norilsk Industrial District (NID) |
12,916 |
14,054 |
| Trans-Baikal Territory |
0 |
0 |
Co-Funded Pension Plan highlights
| Indicator |
2017 |
| Total Company costs, RUB ’000 |
500,707.3 |
| Participant’s contribution |
|
| Average contribution per participant, % of wages |
2.7 |
| Average monthly contribution per participant, RUB |
2,659 |
| Company’s contribution under the Parity Plan |
|
| Average contribution per participant, % of wages |
2.7 |
| Average monthly contribution per participant, RUB |
2,644 |
Social expenses, RUB mln
| Indicator |
2017 |
2018 |
| Plan |
Actual |
Plan |
| Health resort treatment and vacations of employees and their families |
2,145 |
1,953 |
2,040
|
| Reimbursement of round trip travel expenses and baggage fees to employees
and their families
|
3,427 |
2,960 |
3,186
|
| Pension plans |
1,173 |
1,004 |
1,186
|
| Housing programmes |
2,272 |
5,476 |
6,760
|
| Relocation assistance to new employees |
446 |
299 |
345
|
| Social projects for employees (development of target categories, sporting events
and holiday celebrations)
|
663 |
667 |
600
|
| Voluntary health insurance |
232 |
204 |
247
|
| Financial aid and additional benefits to retired and former employees
and their families
|
257 |
215 |
255
|
| Other payments and social expenses (healthcare services, severance pay, etc.) |
1,440 |
1,626 |
1,723
|
| Expenses related to social programmes and benefits for employees |
12,054 |
14,405 |
16,342
|
| Key health improvement programmes |
Participants
in 2017
|
| Zapolyarye Health Resort (Sochi) |
9,230
|
| Kolsky Health and Spa Centre (Monchegorsk) |
1,685
|
| Non-corporate health resorts, including: |
6,974
|
| Rossiya and Belokurikha health resorts (Altai Territory) |
547
|
| Rosa Springs Health Resort (jointly with the Imeretinsky resort)
(Sochi)
|
4,994
|
| other non-corporate health resorts |
1,433
|
| Vacation for children (including Anapa and Bulgaria) |
1,539
|
| International vacation programme |
6,833
|
| Total participants |
26,261
|
Housing programmes
In 2017, the Company adopted a Housing Programme Policy putting in place a single pool of principles and
approaches to developing, approving and implementing housing programmes for employees with the highest
qualifications and most relevant expertise as a way to boost long-term staff retention across the Group’s
operations.
In the reporting period, the Company continued implementing Our Home and My Home corporate social programmes
launched back in 2010 and 2011, respectively.
Our Home programme is intended for
the employees of Polar Division, Polar Transport Division and Kola MMC.
My Home programme covers 14 Group entities operating in Norilsk, the Taimyrsky Dolgano-Nenetsky Municipal
District and Murmansk Region. Since the start of the programme, 3,397 apartments have been granted to the
Company’s employees. In total, the Company has purchased 3,826 ready-for-living apartments, including 422 in
2017.
As part of the programmes, the Company purchases ready-for-living apartments
in various Russian regions at its own expense and provides them to eligible employees under co-financing
agreements. The Company pays up to
a half of the apartment cost (but in any case no more than USD 35,000), with
the rest paid by the employee within
a certain period of employment with
the Norilsk Nickel Group (from five
to ten years). The cost of housing
remains unchanged for the entire period of the employee’s participation in
the programmes. Ownership rights are registered at the end of the programmes, but the employee may move in
immediately after receiving the apartment.
In 2014–2017, apartments were purchased in the Moscow and Tver Regions, as well as in the Krasnodar
Territory, with the Company seeking
to buy properties located in close proximity to enhance the employees’ living standards by developing
additional infrastructure and
optimising the scope of maintenance tasks assigned to the property management company.
To boost the appeal of housing programmes for employees and, consequently, increase the Group’s retention
rate, Nornickel is running the Temporary Assistance Programme for Employees of Polar Division and Kola MMC
in Acquiring Residential Property. The new housing programme based on subsidised mortgage loans was launched
in 2016–2017. It is designed to provide
a wider choice of residential locations, with employees entitled to an interest-free loan to make a down
payment
and a partial reimbursement
of the mortgage interest.
The pilot results showed strong demand for the programme from employees seeking to improve housing
conditions, and its effectiveness in retaining highly qualified staff. Some 200 employees have already taken
part in the pilot,
with over 110 people tapping into
the allocated funds. This prompted
the Company to roll it out on an ongoing basis, which resulted in the new Corporate Social Subsidised Loan
Programme for Employees of
MMC Norilsk Nickel and Russian entities comprising the Norilsk Nickel Group.
The launch of the programme is scheduled for Q1 2018.
Support to new employees
Nornickel provides financial support
to newly employed staff relocating
to Norilsk and the Taimyrsky Dolgano-Nenetsky Municipal District, including young specialists, workers,
engineering staff and managers.
The Company reimburses the following expenses of newly employed staff:
- travel expenses;
- baggage transportation;
- living costs for the first three years.
On top of that, the Company also pays a one-time relocation allowance to support the employee at the new
place of work.
With 267 employees joining the relocation support programme in 2017,
it now boasts 1,715 participants.
Sporting and mass public events programme
The Company promotes sports and healthy lifestyle to solidify the corporate team spirit and maintain a
positive work environment. It organises sporting events and competitions attended by its employees, their
families, and the local community. The events include the annual Polar Division Olympics, Kola MMC Olympics
in 16 sports, Norilsk Nickel Ski Track health marathon, “Dad, Mum and I – a Sporty Family” corporate
competition, swimming, ice hockey, futsal, volleyball, basketball, alpine skiing, snowboarding competitions,
and sport events dedicated to the Metallurgist Day and other high days and holidays. In 2017, some 30,000
people took part in our sports events. Also, our facilities in Norilsk feature gyms attended by over 6,000
employees.
Programmes supporting former employees and their families
The ongoing support of its former employees is part of the Company’s corporate social policy.
The Company’s Veterans programme has been designed to support unemployed pensioners who permanently reside in
Norilsk. The conditions for programme participation depend on the employee’s length of service or permanent
disability status. Financial aid is paid from
the charitable contributions made
by the Company.
The former employee financial aid programme establishes the amount
of the benefit paid upon retirement
by reference to the employment period.
The Pensioner Financial Aid Fund provides financial aid to former employees who retired prior to 10 July 2001
provided they had been employed by the Company’s units for more than
25 years and permanently reside outside of the Norilsk Industrial District.
The Fund relies on voluntary monthly contributions from employee salaries
and equal charitable contributions from
the Company’s budget.
The Company also provides targeted assistance to its former employees
and their families to pay for health improvement and medications, funeral services, and helping in financial
distress.
Support of employees
with disabilities
The Company fully complies with
the legislation regarding employment
of people with disabilities. As per the employment quotas that vary depending on the region and company
size,
the share of such employees may come up to 3% of the average headcount.
The Company reserves positions that best suit employees with disabilities and provides necessary working
conditions, including work and rest schedule,
the duration of annual and additional paid leaves, and specialised
workspace equipment.
Occupational health
and safety
As one of the world’s leading non-ferrous metal companies, Nornickel seeks to excel in occupational health
and safety (OHS). The Company is aware of its responsibility for ensuring health
and safety of all employees engaged
in its operations, both its own
and third party. 103-2
Nornickel’s Occupational Health and Safety Policy gives precedence to the life and health of employees over
operational performance while also demonstrating the Company’s commitment to creating a safe and healthy
environment and fostering sustainable employee motivation for safe workplace behaviour.
Zero work-related fatalities is the Company’s key strategic priority in OHS.
The Company has approved and implemented the following standards:
- Prevention and Control Activities with regard to Health and Safety Processes;
- Safety Behaviour Audit;
- Power Source Insulation;
- High Altitude Operations;
- Provision of Personal Protective Equipment;
- Safety Requirements for Boarding and Alighting Company’s Motor Vehicles during Inter-Facility
Transportation;
- Accident Investigation;
- Procedure for Organising
and Conducting High-Hazard Operations;
- Safety Requirements for Interaction of Vehicles and Pedestrians at Production Sites and Facilities;
- Hazard Identification, Assessment
and Management of Occupational Health and Safety Risks;
- Management of technical, technological, organisational
and HR changes.
As part of the standard implementation during the year, the Company was actively engaged in the Risk Control
and Implementation of the Framework
to Manage Technical, Technological, Organisational and HR Changes projects aimed at building a continuous
and effective system to identify and control significant OHS risks and changes within the Group.
Health and safety management 403-1
The Group companies take preventive and control measures including:
- second-party OHS management audits (cross-company audits of the Group companies involving the OHS heads
and experts from other Group companies);
- internal OHS management audits;
- activities as part of the OHS monitoring system at each facility, including:
- multi-stage control;
- ad hoc, targeted and comprehensive OHS inspections;
- safety behaviour audits;
- compliance and certification audits
as part of the OHSAS management system;
- independent external audits of the corporate OHS management system and occupational safety culture.
Safety culture level
in the Norilsk Nickel Group
(Bradley Curve indicator)
The Norilsk Nickel Group has been conducting annual assessments of the occupational safety culture at
its key assets since 2014. This is done to define priority areas to further improve the corporate
health and safety management system and mitigate injury and accident risks.
In December 2017, the safety culture level as per the Bradley Curve stood at 2.63 against 1.4 in
March 2014 which saw the first assessment.
Improvements in the safety culture metrics came on the back of greater personnel involvement in
occupational health and safety, OHS leadership
on the part of the production facilities’ management, and enhancement of risk assessment and
management expertise.
Prevention of occupational
diseases
The Company continuously implements measures to prevent occupational diseases. Employees undergo compulsory
pre-employment, regular and ad hoc medical examinations and check-ups organised at the Company’s expense.
Those that have contact with hazardous materials are subject to additional examinations at occupational
pathology centres (regularly and upon recommendation from a medical board).
In 2017, 6,294 employees passed such health examinations.
he Company’s facilities have their own medical aid posts (centres) to perform pre-shift and pre-trip checks
and provide medical assistance to employees. In case of hazardous production factors identified in the
course of the special assessment of working conditions, the Company provides employees with free personal
protective equipment (PPE), including respiratory protection (respirators, gas masks), hearing protection
(earmuffs, earplugs), eye protection (glasses/goggles with UV filters, visors), skin protection (gloves,
protective and regenerative creams, protective outwear). In 2017, the Group’s costs related to personal
protective equipment, medical examinations and maintenance of medical aid posts amounted to RUB 2,632.5 mln,
RUB 391.9 mln, and RUB 213.4 mln, respectively.
The Company provides employees working in harmful and hazardous conditions with free foods, milk,
and other equivalent food products
for therapeutic purposes in compliance with the applicable Russian legislation
and corporate policies. In 2017, foods
and milk costs across the Group
amounted to RUB 1,468.2 mln.
The health improvement and resort treatment programme is an important element of Nornickel’s social
policy.
In 2017, the Company failed to improve
its LTIFR due to a significant increase in incidents at Polar Construction Company, including a group
accident at Zapolyarny mine where in July 2017 there was an explosion during shaft sinking. Based on the
investigation results, the Company developed a remedial action plan implemented as scheduled.
All production accidents are investigated in accordance with the applicable Russian laws. Investigation
results serve as a basis for developing measures to be taken promptly to eliminate the root causes.
Fatalities breakdown in 2017 by type
of accident: explosion — four incidents, injuries caused by falling and flying objects, and energy-related
injuries —
one incident each.
Initiatives to reduce material OHS risks
Rockfall
- Mechanised solutions for fracture scaling at mine openings (12 new special-purpose mining machines purchased in 2017);
- mechanised solutions for installing anchor and mesh support (5 self-propelled roof bolters purchased, another 11 units to be purchased in 2018);
- switch to new anchors – self-drilling anchors and steel and polymer anchorages; self-drilling anchors are used for installing temporary and protective anchorage support at Polar Division mines;
- installing protective covers on special-purpose machinery used for lifting workers in the process of underground capital construction and mine preparation works at Polar Division, Polar Construction Company and Kola MMC operations (83 units installed across the Group: Polar Division – 62, Kola MMC – 12, Polar Construction Company – 9).
Impact of vehicles on pedestrians
- In 2016–2017, the Company introduced personnel and machinery positioning and radiocommunications systems at every mine;
- in 2017, the system was put in operation:
- at Komsomolsky, Kayerkansky, Zapolyarny, and Taimyrsky mines of Polar Division;
- at Severny mine (Severnaya, Kaula-Kotselvaara, Tsentralnaya, and Zapadnaya mines).
Impact of moving (rotating) parts and equipment
- The Company’s units that operate conveyors continue to roll out the corporate fencing, safety units and devices requirements (“Requirements”) approved by the Company’s First Vice President and COO;
- for each conveyor at Polar Division, the Company developed and approved safety data sheets available at the workplaces of conveyor operators;
- to implement the Requirements, the Company installed protecting fences on conveyors ganged with motor stopping systems along their entire length, run-off switches and overfilling sensors, temperature sensors, belt catchers and other safety devices on 309 conveyors.
Health and safety performance indicators for accident prevention
| Indicator |
UoM |
2013 |
2014 |
2015 |
2016 |
2017 |
| Audits conducted: |
| by health and safety committees |
‘000 |
> 35 |
> 33 |
> 33 |
> 31,5 |
> 30,8 |
| Target audits conducted by managers, senior
specialists and committees of the Group’s enterprises
and business units
|
‘000 |
16 |
7.7 |
8.4 |
6.8 |
8.7 |
| Ad hoc audits |
‘000 |
21 |
6.3 |
8.1 |
8.8 |
15.3 |
| Comprehensive audits of health and safety
and dedicated management systems
|
pcs |
157 |
160 |
163 |
167 |
221 |
| Coupons removed from the books of employees
violating health and safety requirements4
|
‘000 |
6.4 |
4.4 |
3.9 |
3.4 |
2.9 |
| Employees subject to disciplinary action for the violation
of health and safety requirements
|
‘000 |
8 |
7 |
8 |
9 |
8 |
| Employees with reduced bonus payments |
‘000 |
> 17 |
> 14 |
> 15 |
> 15 |
> 13,6 |
| total |
RUB mln |
|
> 67 |
> 56 |
> 55 |
> 74 |
| Employees incentivised for health and safety involvement and lower workplace injury rate as per
the audit results
|
‘000 |
> 7 |
> 5 |
> 9 |
> 5 |
> 5,6 |
| total |
RUB mln |
> 42 |
> 35 |
> 78 |
> 51 |
> 41 |
Special assessment of working conditions
In 2017, in accordance with the Federal Law On Special Assessment of Working Conditions, the Company carried out a special assessment of working conditions at Polar Division, Polar Transport Division, Norilsknickelremont, Polar Construction Company, Norilsk Support Complex, Norilskpromtransport, Norilskgeologiya, NTEK, Norilskgazprom, and other production facilities. The special assessment covered 11,500 workplaces and over 16,000 employees, with expenses across the Group exceeding RUB 14 mln, including RUB 3.5 mln for MMC Norilsk Nickel.
Staff training in health and safety
In 2017, the Company arranged for the pilot testing (assessment of knowledge and skills) of line managers in charge of mines and mining facilities at Polar Division and Kola MMC as part of the project to develop and roll out a model of professional competencies for line managers of mining facilities. The results were used to assess the adequacy of the competency model.
To benefit from the opportunities offered by interactive safety briefings, comprehensive programmes were put in place enabling remote briefings for employees and testing capabilities for the key mining jobs.
New employees and employees with a track record of up to three years received dedicated adaptation health and safety training that covered around 3,900 people in 2017.
The mines of Polar Division and Kola MMC installed and pilot tested the Pre-Shift Examiner software and hardware systems.
In 2017, health and safety pre-certification briefing, basic training and certification covered 39,100 employees of the Group, including 17,300 from MMC Norilsk Nickel. The Group's health and safety training expenses amounted to RUB 129.9 mln, including RUB 77.1 mln spent by MMC Norilsk Nickel.
In April 2017, Nornickel held a corporate workshop for its managers and experts on such topics as special assessment of working conditions, efficient use of personal protective equipment, health and safety management at related entities, as part of the Russian Health and Safety Week.
In 2017, we started installation works at the underground training base of Anhydride mine (Kayerkansky mine).
Safety communication campaign
The Company continuously runs the Occupational Health and Safety communication programme.
In 2017, the programme focused on the following areas:
- media support of the key OHS initiatives: OHS Month, drawing competitions (All Accidents are Preventable, Good Health – Great Opportunities), participation in the Russian Health and Safety Week, support to the Risk Control and Implementation of the Framework to Manage Technical, Technological, Organisational and HR Changes projects, and the Workers' Control pilot project;
- the Activist project in the Murmansk Region aimed at creating a shared communication environment for the residents of Monchegorsk, Norilsk and Zapolyarny to discuss relevant issues and make a joint contribution to addressing those. The project provided for an extensive coverage of Nornickel’s efforts in achieving zero fatalities and reducing injury rates, dedicated polls and a health and safety comics and cartoon competition;
- information support to the introduction of the positioning and radio communications system at mines;
- meetings between the management of various levels and employees, media coverage on the Company’s strict compliance with OHS requirements;
- posting relevant OHS information on the Company’s website.
Provision of personal protective equipment (PPE)
Shop area employees at production units are exposed to hazardous and harmful workplace factors (underground work, operation and maintenance of mining equipment and heavy self-propelled vehicles, extreme climate, etc.) For that reason, in addition to implementing technical and organisational security measures, the Company also provides employees with personal protective equipment (PPE). Employees working in contaminated conditions are provided with free-of-charge wash-off and decontaminating agents.
To supply the most efficient and comfortable PPE in line with the corporate standard, the Company’s units and the Group companies run preliminary tests on PPE, including the most advanced equipment from leading manufacturers.
To facilitate ultimate control over the safe working behaviour, employees with a track record of up to three years wear special red helmets with the word “Warning” on them and protective clothing with “Warning” chevrons that make them stand out.
In 2017, the Group purchased personal protective equipment for a total of RUB 2,632.5 mln, or RUB 40,000 per employee provided with the free-of-charge PPE, including RUB 1,080.3 mln, or RUB 50,000 per employee spent by MMC Norilsk Nickel.
Engagement of employees in safety management
Most of the Group companies (including subsidiaries, branches, and structural production units) run official joint health and safety committees (councils) made up of the management, employee and trade union representatives. The Group companies with such joint committees employ over 57,600 people (around 75% of the Group’s total headcount).
Authorised representatives of trade unions and staff in occupational health and safety (1,135 employees) have been elected to participate in preventive activities across the Group’s production units. In 2017, they took part in over 25,000 audits and submitted over 8,300 health and safety improvement proposals.
Health and safety topics covered in formal agreements with trade unions
The Company and most of its production units, including Kola MMC, Norilsknickelremont, Polar Construction Company, NTEK, Yenisey River Shipping Company, Norilskpromtransport, and Norilsk Support Complex, have entered into collective bargaining agreements with employee representatives (including trade union organisations). The collective bargaining agreements contain occupational health and safety provisions and cover some 55,400 Group's employees (approximately 72.5% of the Group’s total headcount).
Health and safety indicators for 2013–2017
| |
2013 |
2014 |
2015 |
2016 |
Including |
2017 |
Including |
| Males |
Females |
Males |
Females |
| The Norilsk Nickel Group companies |
| Fatal production-related accidents |
12 |
8 |
14 |
13 |
13 |
0 |
7 |
7 |
0 |
| FIFR |
0.1 |
0.07 |
0.12 |
0.11 |
0.06 |
| Production-related accidents resulting in lost time injuries |
94 |
56 |
74 |
43 |
37 |
6 |
51 |
48 |
3 |
| LTIFR |
0.8 |
0.48 |
0.62 |
0.35 |
0.43 |
| Total number of recorded production-related accidents in accordance with the Russian labour laws (minor + severe + fatal) |
106 |
64 |
88 |
56 |
50 |
6 |
58 |
55 |
3 |
| Severe injuries |
22 |
12 |
17 |
11 |
11 |
0 |
13 |
12 |
1 |
| Occupational diseases |
206 |
226 |
271 |
339 |
317 |
22 |
361 |
329 |
32 |
| Occupational disease rate |
1.75 |
1.95 |
2.27 |
2.83 |
3.07 |
| Occupational injury rate |
– |
– |
– |
0.47 |
0.49 |
| Lost day rate |
86.97 |
64.22 |
69.84 |
54.40 |
73.65 |
| Absentee rate |
– |
– |
– |
3.15 |
3.04 |
| Total number of recorded production-related accidents among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws |
– |
13 |
19 |
17 |
15 |
2 |
16 |
14 |
2 |
| including fatal accidents |
– |
5 |
5 |
7 |
7 |
0 |
1 |
1 |
0 |
| Norilsk Industrial District |
| Fatal production-related accidents |
9 |
4 |
10 |
11 |
11 |
0 |
7 |
7 |
0 |
| FIFR |
0.11 |
0.05 |
0.12 |
0.13 |
0.09 |
| Production-related accidents resulting in lost time injuries |
62 |
41 |
40 |
30 |
26 |
4 |
37 |
37 |
0 |
| LTIFR |
0.74 |
0.48 |
0.47 |
0.36 |
0.46 |
| Total number of recorded production-related accidents in accordance with the Russian labour laws (minor + severe + fatal) |
71 |
45 |
49 |
41 |
37 |
4 |
44 |
44 |
0 |
| Severe injuries |
14 |
7 |
10 |
9 |
9 |
0 |
10 |
10 |
0 |
| Occupational diseases |
173 |
180 |
243 |
272 |
269 |
3 |
273 |
270 |
3 |
| Occupational disease rate |
2.06 |
2.18 |
2.86 |
3.27 |
3.40 |
| Occupational injury rate |
– |
– |
– |
0.49 |
0.55 |
| Lost day rate |
75.83 |
54.5 |
65.57 |
60.81 |
99.09 |
| Absentee rate |
– |
– |
– |
3.14 |
3.10 |
| Total number of recorded production-related accidents among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws |
– |
12 |
17 |
15 |
13 |
2 |
8 |
8 |
0 |
| including fatal accidents |
– |
5 |
5 |
7 |
7 |
0 |
0 |
0 |
0 |
| Kola Peninsula Industrial District (Murmansk Region) |
| Fatal production-related accidents |
2 |
3 |
4 |
1 |
1 |
0 |
0 |
0 |
0 |
| FIFR |
0.1 |
0.15 |
0.19 |
0.05 |
0.00 |
| Production-related accidents resulting in lost time injuries |
17 |
9 |
14 |
4 |
3 |
1 |
4 |
3 |
1 |
| LTIFR |
0.83 |
0.44 |
0.66 |
0.21 |
0.21 |
| Total number of recorded production-related accidents in accordance with the Russian labour laws (minor + severe + fatal) |
19 |
12 |
18 |
5 |
4 |
1 |
4 |
3 |
1 |
| Severe injuries |
5 |
4 |
6 |
0 |
0 |
0 |
1 |
1 |
0 |
| Occupational diseases |
33 |
42 |
28 |
63 |
44 |
19 |
87 |
58 |
29 |
| Occupational disease rate |
1.61 |
2.04 |
1.32 |
3.36 |
4.57 |
| Occupational injury rate |
– |
– |
– |
0.27 |
0.21 |
| Lost day rate |
213.2 |
83.86 |
81.36 |
25.09 |
9.87 |
| Absentee rate |
– |
– |
– |
3.27 |
3.15 |
| Total number of recorded production-related accidents among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws |
– |
0 |
1 |
1 |
1 |
0 |
3 |
1 |
2 |
| including fatal accidents |
– |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Krasnoyarsk Territory (excluding the NID) |
| Fatal production-related accidents |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| FIFR |
0 |
0.15 |
0 |
0 |
0.00 |
| Production-related accidents resulting in lost time injuries |
9 |
6 |
9 |
4 |
4 |
0 |
7 |
5 |
2 |
| LTIFR |
1.33 |
0.89 |
1.34 |
0.59 |
1.05 |
| Total number of recorded production-related accidents in accordance with the Russian labour laws (minor + severe + fatal) |
9 |
7 |
9 |
4 |
4 |
0 |
7 |
5 |
2 |
| Severe injuries |
3 |
1 |
1 |
2 |
2 |
0 |
2 |
1 |
1 |
| Occupational diseases |
0 |
4 |
0 |
4 |
4 |
0 |
1 |
1 |
0 |
| Occupational disease rate |
0 |
0.59 |
0 |
0.59 |
0.15 |
| Occupational injury rate |
– |
– |
– |
0.59 |
1.05 |
| Lost day rate |
76.52 |
164.7 |
88.57 |
55.60 |
53.99 |
| Absentee rate |
– |
– |
– |
2.89 |
3.06 |
| Total number of recorded production-related accidents among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws |
– |
1 |
0 |
0 |
0 |
0 |
2 |
2 |
0 |
| including fatal accidents |
– |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Moscow and other regions of Russia |
| Fatal production-related accidents |
1 |
0 |
0 |
1 |
1 |
0 |
0 |
0 |
0 |
| FIFR |
0.16 |
0 |
0 |
0.1 |
0.00 |
| Production-related accidents resulting in lost time injuries |
6 |
0 |
10 |
5 |
4 |
1 |
1 |
1 |
0 |
| LTIFR |
0.95 |
0 |
1.52 |
0.45 |
0.15 |
| Total number of recorded production-related accidents in accordance with the Russian labour laws (minor + severe + fatal) |
7 |
0 |
10 |
6 |
5 |
1 |
1 |
1 |
0 |
| Severe injuries |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Occupational diseases |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Occupational disease rate |
– |
– |
– |
0.0 |
0.00 |
| Occupational injury rate |
– |
– |
– |
0.54 |
0.15 |
| Lost day rate |
134.4 |
8.08 |
66.71 |
55.62 |
48.55 |
| Absentee rate |
– |
– |
– |
3.11 |
2.63 |
| Total number of recorded production-related accidents among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws |
– |
0 |
0 |
1 |
1 |
0 |
0 |
0 |
0 |
| including fatal accidents |
– |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Trans-Baikal Territory |
| Fatal production-related accidents |
– |
– |
– |
– |
– |
– |
|
|
|
| FIFR |
– |
– |
– |
– |
– |
– |
0.00 |
| Production-related accidents resulting in lost time injuries |
– |
– |
– |
– |
– |
– |
2 |
2 |
0 |
| LTIFR |
– |
– |
– |
– |
– |
– |
0.41 |
| Total number of recorded production-related accidents in accordance with the Russian labour laws (minor + severe + fatal) |
– |
– |
– |
– |
– |
– |
2 |
2 |
0 |
| Severe injuries |
– |
– |
– |
– |
– |
– |
|
|
|
| Occupational diseases |
– |
– |
– |
– |
– |
– |
|
|
|
| Occupational disease rate |
– |
– |
– |
– |
– |
– |
0.00 |
| Occupational injury rate |
– |
– |
– |
– |
– |
– |
0.41 |
| Lost day rate |
– |
– |
– |
– |
– |
– |
14.57 |
| Absentee rate |
– |
– |
– |
– |
– |
– |
1.53 |
| Total number of recorded production-related accidents among contractors’ employees engaged at the Group’s sites, in accordance with the Russian labour laws |
– |
– |
– |
– |
– |
– |
3 |
3 |
0 |
| including fatal accidents |
– |
– |
– |
– |
– |
– |
1 |
1 |
0 |
Key injury indicators 403-2
| Indicator |
UoM |
2013 |
2014 |
2015 |
2016 |
2017
|
| FIFR |
|
0.1 |
0.07 |
0.12 |
0.11 |
0.06 |
| LTIFR |
|
0.8 |
0.48 |
0.62 |
0.35 |
0.43 |
| Total production-related accidents in accordance
with the Russian labour laws
|
pcs |
106 |
64 |
88 |
56 |
58 |
| Fatal production-related accidents |
pcs |
12 |
8 |
14 |
13 |
7 |
| Minor injuries |
pcs |
50 |
305 |
411 |
719 |
7191 |
| Potentially dangerous incidents2 |
pcs |
– |
349 |
976 |
1 845 |
1 711 |
| Occupational diseases |
pcs |
206 |
226 |
271 |
339 |
361 |
| Total number of production-related accidents among
the contractors’ employees engaged at the Group’s sites,
in accordance with the Russian labour laws3
|
pcs |
– |
13 |
19 |
17 |
16 |
| including fatal accidents |
pcs |
– |
5 |
5 |
7 |
1 |
| Occupational health and safety expenses |
RUB mln |
4 095 |
7 446 |
10 748 |
8 515 |
8 708 |
| including per employee |
RUB mln |
51 |
95 |
134 |
106 |
114 |
1 The increase in the number of minor injuries and potentially dangerous incidents was due to the
introduction of the corporate Accident Investigation Standard,
awareness-raising activities, and better understanding among employees of how reporting minor injuries and
potentially dangerous incidents helps eliminate
their causes and, therefore, prevent incidents with more severe implications.
2 The indicator has been recorded since 2014.
3 The indicator has been recorded since 2014.
4 Removal of coupons is a preventive measure that enables the Company to register the number of
gross health and safety violations which did not cause accidents,
and subject the culprits to disciplinary actions and financial penalty.
Safety management
in contractors
Contractors’ operations (repair, construction and installation works at the existing facilities) are
classified as high-hazard operations and governed by the respective corporate standards. In 2018, the
Company is planning to develop and launch a dedicated occupational health and safety standard for
contractors. Work permits or operations certificates, and work execution plans (project implementation
plans, guidelines, etc.) shall contain safety requirements to be met
in the process of organisation and
the performance of works. The Company monitors compliance every shift. Prior
to commencement of work, contractors’ workers undergo induction and target briefings on health and safety,
including security measures as per the work execution plans.
Emergency
preparedness 103-2 403-3
The Group companies take great care
in maintaining emergency preparedness, as the Group embraces mining, concentration and smelting operations,
operates over 300 hazardous production facilities, and uses various hazardous substances (toxic, explosive,
oxidising, etc.) in its processes.
The Company complies with the requirements of Federal Law No. 116-FZ On Industrial Safety of Hazardous
Production Facilities dated 21 July 1997, and ensures preparedness for the management of accidents at
hazardous production facilities.
For the emergency preparedness purposes, the Company develops, approves and implements action plans on containment and elimination of accident consequences at hazardous production facilities (hazard classes I, II, III) in compliance with Federal Law No. 116-FZ and the Regulation on Drafting Plans on Containment and Elimination of Accident Consequences at Hazardous Production Facilities approved by Resolution No.730 of the Russian Government dated 26 August 2013.
Action plans on containment and elimination of accident consequences at hazardous production facilities are reviewed and approved as required. Actions plans are effective:
- for underground mining facilities – six months;
- for open-pit mining or mineral processing facilities – one year;
- for hazard class I facilities – two years (excluding facilities specified in (a) and (b));
- for hazard class II facilities – three years (excluding facilities specified in (a) and (b));
- for hazard class III facilities – five years (excluding facilities specified in (a) and (b)).
They are approved by the heads (deputy heads) of the production units that operate such facilities and heads of emergency rescue services and units:
- in the Norilsk Industrial District (NID) – the Norilsk Paramilitary Mine Rescue Unit (Polar Division, Industrial Safety), Gas Safety Service and Fire Safety Service of Polar Division;
- in the Kola Peninsula Industrial District (KPID) – Kola MMC Emergency Rescue Service comprised of two emergency rescue units (the Pechenga Paramilitary Mine Rescue Unit and Monchegorsk Paramilitary Mine Rescue Unit).
Plans on containment and elimination of accident consequences for each hazardous production facility should provide for:
- potential scenarios of initiation and evolution of accidents;
- sufficient resources and capabilities for containment and elimination of accident consequences (resources and capabilities), alignment thereof with accident management requirements, and engagement of professional emergency rescue units, if necessary;
- coordination of resources and capabilities;
- composition and deployment of resources and capabilities;
- procedures to ensure instant availability of resources and capabilities at dedicated facilities indicating organisations responsible for maintaining resources and capabilities at required levels of preparedness;
- organisation of on-site accident management, communication and warning systems;
- on-site communication systems between Polar Division and other organisations participating in containment and elimination of accident consequences;
- initial response actions subsequent to an emergency alert;
- facility personnel and emergency rescue team actions;
- actions taken to ensure safety of employees and residents;
- supplies, engineering and financial support for accident management.
To ensure readiness for containment and elimination of accident consequences at hazardous production facilities, Polar Division signed contracts with the Norilsk Paramilitary Mine Rescue Unit (Polar Division, Industrial Safety) for mine rescue services and the maintenance of auxiliary rescue teams' equipment. Auxiliary mine rescue teams were set up at Polar Division and Kola MMC hazardous production facilities (hazard classes I and II) engaged in mining operations, pursuant to Federal Law No. 116-FZ and the Procedure for Establishing Auxiliary Mine Rescue Teams approved by the Emergency Ministry's order No. 765 dated 29 November 2013.
Auxiliary mine rescue teams attend monthly classes and realistic training sessions with medical support of the training process. They include theory and drills on using mine rescue equipment, safety rules, first aid (including underground and unbreathable air conditions) and psychological training, and training with self-contained breathing apparatuses.
To teach employees how to respond to an emergency at a hazardous production facility, the Company stages drills as per the action plans on containment and elimination of accident consequences, and in cooperation with professional emergency rescue services and forces (the Norilsk Paramilitary Mine Rescue Unit (Polar Division, Industrial Safety), Gas Safety Service, Fire Safety Office of Polar Division in the NID; Kola MMC Emergency Rescue Service in the KPID).
Pursuant to the order of the President of MMC Norilsk Nickel, the Company has set aside financial reserves of RUB 50 mln for accident management at Nornickel hazardous production facilities. Kola MMC allocated RUB 25 mln for the same purpose.
Polar Division and Kola MMC business units have put in place surveillance and warning systems, and systems for communication and support in case of an accident to ensure emergency preparedness. Mines are equipped with radio and positioning systems for employees, and telemetry system for underground machinery to track their locations. Hazard class I and II facilities operate local warning systems.
Improvement
of social and working
conditions
The Group companies operate more
than 2,050 sanitary, amenity, sports
and fitness, catering, healthcare,
and recreational facilities with a total area of over 340,000 sq m. The Company
is committed to providing comfortable social and working conditions.
From 2003, the Group has been implementing the programme for
the improvement of social and working conditions. Since its launch, we have overhauled 228 social facilities
and purchased 394 relocatable buildings, investing a total of RUB 4,232.3 mln.
The programme’s initiatives will
be completed in the mid term
(within three years).
In 2017, the programme covered eight units and Group companies located in Norilsk, the Taimyrsky
Dolgano-Nenetsky Municipal District, and the Murmansk Region. They completed the overhaul
of 31 social facilities and purchased
19 relocatable buildings to be used
by employees to change, warm up
and take meals. The Company
renovated a total area of 15,555 sq m
and improved social and working conditions for 4,543 employees.
Total costs amounted to RUB 639.3 mln, including RUB 478.4 mln spent on design works and overhauls, and RUB
160.9 mln invested in equipment purchase.
In 2018, Nornickel plans to complete overhauls at 30 social facilities,
including 4 sports and fitness facilities. The programme’s estimated budget
for 2018 is RUB 703.9 mln.
