UC RUSAL Sustainability report 2015


Approach

Approach

RUSAL aims to unite its enterprises, which operate on five continents, employ people of various cultural, historical, economic and social identity[37]. The Company defines its approach to sustainable development management regarding staff relationships and sets goals for the future:

·         The Company – Best Employer Company;

·         Team – Best Professionals.

The HR Policy[38] and the Corporate Code of Ethics are the main documents that guide the Company and contain the following principles:

·         compliance with the applicable laws;

·         partnership relationships;

·         adherence to the highest ethical standards of business practices;

·         equal rights and opportunities, absence of discrimination on any ground;

·         creating the conditions for development of workers potential and implementation of their professional ambitions, using the best modern teaching methods;

·         fair and comprehensive evaluation of staff work, objectivity and transparency of procedures;

·         unified approach to remuneration.

These principles are applied to all enterprises that are included in the Company, but in practice they are implemented through various tools that can be selected taking into account national and regional specificities.

The main documents defining the approach to managing the aspects of sustainable development in terms of interaction with staff

Documents applicable to all enterprises of UC RUSAL:

·         HR Policy

·         Corporate Code of Ethics

Documents applicable to specific countries:

In Russia:

·         Collective Bargaining Agreement

·         Tariff Agreement on the Russian Mining and Metallurgical Complex

·         Internal Code of Labor Conduct

·         Regulations on Informing the Employees,
Regulations on Personal Data Protection

·         Regulations on Remuneration and Bonuses to Employees

·         Regulations on Staff Annual Performance Assessment

Abroad:

·         Collective Bargaining Agreement

 

RUSAL takes into account the views of employees and trade unions when implementing policies on staff management. Russian and foreign enterprises which are part of UC RUSAL are guided by the instruments which guarantee a number of labor rights and guarantees for employees, and are the result of cooperation with trade unions. The collective bargaining agreement (in Russia) and similar agreements in other countries of presence regulate issues such as working hours and rest periods, procedures for protection of workers' health and safety, the remuneration system, social guarantees and benefits, cooperation with trade unions as well as other issues.

Collective bargaining agreements are concluded with trade unions at most of the Company’s enterprises. Around 60% of the Company employees are members of trade unions, and 90% of employees work in accordance with collective bargaining agreements. G4-11

In 2015, the collective bargaining agreements were amended to include the establishment of compensation, benefits and guarantees to employees engaged in harmful and (or) hazardous working conditions, in connection with the entry into force of the Federal Law 421 and the Federal Law 426.

The working element of social partnerships between the Company and employees is the Social Council of UC RUSAL. The Council executes annual partnership results, discusses the results of the Company's performance and plans for future performance and changes in the provisions of the collective bargaining agreement made by the employer and other groups. In the reporting year, the following issues were discussed at the meetings of the Social Council:

·         the real content of wages (the fixed wage of an employee and indexation of wage by at least the level of inflation)

·         changes in collective bargaining agreements and the system of benefits and compensation to employees of enterprises after a special assessment of working conditions;

·         activity of trade unions to preserve social stability in labor collectives against the backdrop of the current economic situation;

·         rehabilitation of workers and their families;

·         plans and activities of the Russian Mining and Metallurgical Trade Union in the sphere of youth policy.

Key results in 2015

In 2015 the following changes were carried out:

·         improvement / [clarity] in the payment of bonuses for project work;

·         adaptation of local normative acts and automated systems on all Russian enterprises of the Company that have occurred following changes in laws regarding special assessments of working conditions;

·         establishment of common service centers which deal with issues of personnel administration and are [located at] industrial sites;

·         completion / [hiring] of staff at the new plant BoAZ;

·         implementation of programs and methods for training and staff development, including commencement of training devices and production simulators;

·         continued implementation of external talent pool programs.

The project to create a personal employee "Intranet Office" and an improvement of employee goal-setting systems are being implemented.