UC RUSAL Sustainability report 2016


Approach

Management approach

UC RUSAL HR policy is based on the principle of partnership between the employees and the employer and aims at creating a corporate environment that is encouraging the dynamic development of the Company. The strategic goal of UC RUSAL and its group companies is to be a better employer, a company that has a professional team, results-oriented and open to new opportunities. Proactive, vibrant and highly educated people are the most valuable asset of the Company.

 

The HR policy and the Code of Ethics set out the main corporate principles, including: HKEx Appendix 27 KPI В4

          compliance with the requirements of labour laws of the countries of operation;

          adherence to high ethical standards of business practice;

          equal rights and opportunities for workers, non-discrimination on any grounds, waiver of child and forced labour;

          creation of conditions for the development of workers' potential and the realisation of their professional ambitions with the best modern teaching methods;

          fair and comprehensive evaluation of staff performance, objectivity and openness of procedures; and

          consistent approach to remuneration.

Social partnership

UC RUSAL and its group companies provide benefits and social guarantees, the volume of which is determined with the active participation of trade unions. Collective bargain agreements (in Russia) and similar agreements in other countries of operation regulate such matters as hours of work and rest, health and safety of workers, wage system, social guarantees and benefits, partnership with trade unions. G4-LA8, HKEx Appendix 27 KPI B1

The leaders of trade union organisations have the right to exercise trade union control over the compliance by employers and officials with labour legislation, including matters relating to employment contract (agreement) and other social and labour matters. HKEx Appendix 27 KPI В4.1

In Russia, collective bargain agreements are concluded at most of the Company's production facilities. About 60% of the Company's employees are members of trade union organisations, with 95% of employees working under the terms of collective bargain agreements. G4-11

The working body of the social partnership is the UC RUSAL Social Council, which annually evaluates the results of the social partnership, discusses the Company's work and plans, performance of the terms of the collective bargain agreement on the part of the employer and other matters. The meetings of the Social Council are one of the mechanisms to make the Company's leadership aware of the needs of labour collectives and to take them into account in the decision-making process.HKEx Appendix 27 KPI В4.1

Employee communication mechanisms

Employees can contact the direct supervisor, the authorized representatives of the labour collectives, the leadership of the production facilities in where they work, or the management company with questions, complaints and proposals relating to labour relations. To do so, they can use the different mechanisms and forms of communication listed below: G4 EMS 'Mechanisms for complaints about labour practices'

          The managers of the production facilities hold regular (weekly/monthly) meetings with workers and review personal matters.

          On a monthly basis, “information days” are held at the production facilities with the participation of management, and employees are given the opportunity to get answers to questions on different topics.

          Employees can send electronic messages through their account, call the hotline, or use a box for written communications located at the entrance to the production facility.

          In emergency and contingency cases, employees can contact 24-hour services at the corporate phone numbers of the dispatchers of fire service and the “Production Control Unit” of the production facility (relevant numbers are located in the Company's corporate portal and on the information boards of the Business Units).

          Orientation programme is carried out monthly for newly recruited staff, in which they are also informed about the possibilities of protecting their rights and communicating their questions.

          Employees may make contact through trade unions or trade union delegates (in foreign countries), as well as through corporate ethics officers. HKEx Appendix 27 KPI В4.1

          The collective bargain reporting meetings are held annually. Employees' representatives are involved for the renewal/signing of the collective bargain agreement, and joint discussions are held about the articles of the collective bargain agreement. Business leaders meet with trade union leaders representing the interests of employees to address specific issues.

          In foreign countries (Guyana, Guinea), the issues of interest for the employees are discussed during meetings of the leadership of production facilities with the local communities.

          Information on changes in labour legislation is posted in the corporate portal and on the information boards of production facilities.

          The minimum period of notification to the employees about significant changes in the activity of the production facilities is defined by national law. G4-LA4, GD3

The information obtained by the Company using these communication mechanisms is communicated to the leadership of the production facilities and the Management Company if the situation requires the involvement of the leadership, as well as in the framework of the annual reporting process. HKEx Appendix 27 KPI-В4.2, G4-37

In cases of a dispute arising between the employee and the leadership of the production facilities, the leadership strives to resolve the conflict by negotiations. Individual disputes, where the employee and the employer fail to settle differences by negotiations, are considered by the Labour Disputes Commissions (LDC). They are composed of the representatives of the HR Directorate, the Legal Department, and member(s) of trade union. The Commission considers the application within 10 calendar days from the date of the worker's application in the presence of the employee, decision is taken in the form of minutes of meetings, a copy of which is released to the worker with the acknowledgment of receipt. The decision of the LDC is binding and is executed by the employer within three days of the date of its entry into force. The Company does not apply prosecution or other pressure to its employees who have used the complaint and communication mechanisms. G4-HR4

Quantitative methods of evaluation (face-to-face surveys, questionnaires, computer surveys) are being used to monitor the level of satisfaction/involvement of staff at the production facilities. Employees are asked to evaluate working conditions, training programmes, quality of services provided by the medical centre or the catering operator. G4-26