06. Labour relations

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 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,
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:

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

Arctic.PRO R&D marathon

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:

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:

Selection criteria:

Types of local awards and incentives (branches and companies of the Group):

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 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:

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:

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:

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


Impact of vehicles on pedestrians

Impact of moving (rotating) parts and equipment

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:

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
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:

They are approved by the heads (deputy heads) of the production units that operate such facilities and heads of emergency rescue services and units:

Plans on containment and elimination of accident consequences for each hazardous production facility should provide for:

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.