UC RUSAL Sustainability report 2016


Recruitment

Provision with labour resources

The selection of highly qualified staff capable of fulfilling the strategic objectives of the Company is a special priority in the operation of UC RUSAL. The Company uses a comprehensive approach, involving vocational guidance among pupils, interacting with specialised higher and secondary specialised educational institutions, search for the employees with adequate skills in foreign markets, and improving the skills and motivation of existing employees.

At all production facilities, regardless of their country of residence, the Company applies common approaches and staff selection principles. The staff selection system is based on the evaluation of the candidate's set of competencies and personal characteristics. Within the framework of the professional selection the skills and ability to cope with the assigned tasks is tested, helping to determine the future professional suitability of the candidate. All candidates, regardless of the position to which they aspire, are interviewed face-to-face in each country of UC RUSAL operation. HKEx Appendix 27 KPI B1

An open employment policy has a positive impact on foreign labour markets, given the large number of projects that are implemented in Company that require different analysts.

Interaction with educational institutions

UC RUSAL cooperates with educational institutions that provide training to mining and metallurgical professionals to create an external talent pool. The Company is approaching the dual education model: in the course of training, the students not only acquire knowledge at the university or college but also acquire experience and useful skills at the production facility.The following programmes were operating in the reporting period:

                     targeted selection and scholarships for students, and

                     international educational programmes.

Programme for targeted student selection

The targeted selection programme is aimed at providing production facilities with a talent pool of skilled young engineers. Over RUR 6 mln are allocated annually for the implementation of the programme.

The programme provides an opportunity for school graduates to apply for and study at the university in the Company-relevant specialties. The curriculum includes an in-depth study of general subjects and additional subjects, scientific work, as well as sessions at the production facilities of the Company in occupational health and safety, UC RUSAL Business System and the Code of Ethics. The participants of the programme undergo internships at the production facilities annually.

The scholarship holders of UC RUSAL are the talented and excellent students who actively participate in the scientific and technical activities of the educational institutions. Candidates are nominated by the leadership of educational institutions. In addition to the scholarships (up to RUR 5,000 per month, depending on the academic progress), students are paid accommodation in the dormitory for the entire period of their studies, as well as a compensation for the travel to and from the place of residence and place of internship at the production facility. At the end of the training, young professionals will have to work for at least three years at the UC RUSAL companies in their cities.

In 2016, the programme was expanded, and the procedures for planning and job placement for the graduates were established. The newest member of the programme was the Volgograd State Technical University.

Number of students studying under the Targeted Selection Programme:

Educational institutions

Persons

2014

2015

2016

Siberian Federal University 
(students from Krasnoyarsk and Sayanogorsk)

31

51

44

Irkutsk State Technical University 
(students from Bratsk and Irkutsk)

9

18

16

Ural Federal University 
(students from Kamensk-Uralsky and Severouralsk)

4

14

6

Siberian State Industrial University 
(students from Novokuznetsk)

4

4

15

Ural State Mining University 
(students from Severouralsk)

4

4

16

Kamensk-Uralsky Polytechnical College 
(students from Kamensk-Uralsky)

25

18

Krasnoyarsk Industrial Metallurgical College 
(students from Krasnoyarsk)

11

5

11

Volgograd State Technical University 
(students from Volgograd)

9

Total

63

121

135

Completed training and came to production

10

Thanks to the careful training of the young steel workers, the production facilities of the Company receives specialists who, when they start to work, are ready at once to participate in the solution of strategic tasks, make proposals for the development of production and introduce high-tech technology.

The students of the first admission under the Fellowship Programme (2012) are already beginning to come to production. In 2016, six graduates began to work at the Krasnoyarsk aluminium smelter, five of them became members of the reduction production team, and the other girl held the position of laboratory technician at the Central Plant Laboratory.

International training programme for students from Guinea, Guyana and Jamaica

UC RUSAL is implementing an international educational programme to train the local labour of Guinea, Guyana and Jamaica. Under the programme, young people between the ages of 18 and 35 are enrolled in leading Russian universities, People's Friendship University of Russia, Moscow State University of communication routes, Siberian Federal University, Ural Federal University and Ural State Mining University. The Company undertakes all costs related to their education and staying, organises the internship at its production facilities in Russia and employs them at UC RUSAL production sites in their home country after graduation.

In 2017, the first graduation of the students trained under UC RUSAL International Programme is expected; training will be completed by 19 people: 17 citizens of Guinea and two of Guyana. They already have jobs of the production facilities; they will therefore return to their countries at the end of their studies having a guaranteed job. HKEx Appendix 27 KPI B1

Number of students enrolled in the International Education Programme

 

2016

Total persons, including:

118

Students from Guinea, persons

85

Students from Guyana, persons

5

Students from Jamaica, persons

28

Example. At the Institute of non-ferrous metals and materials science of the Siberian Federal University in Krasnoyarsk, 25 young people from Jamaica continued their education (2015/2016 academic year). The applicants first studied Russian and passed the introduction programme, then started their main course in the area of specialisation. During their studies, they would also undergo internship at the Russian production facilities of UC RUSAL, particularly at the Achinsk alumina refinery. Jamaican students note that the education received in Russia is highly valued in their country, while the acquisition of engineering and technical skills offers a good start in life.

Internal talent pool

The Talent Pool programme is aimed at achieving the critical strategic goal of UC RUSAL, the achievement of which is supervised by the shareholders: to prepare a pool of professional, highly qualified employees for all managerial positions.G4-LA10

A list of key positions that have a maximum impact on the performance of the Company has been approved. These positions are being assessed to determine the risk of vacancies; a competency scale has been developed to determine the level of readiness of the succession candidate to work in a higher position; individual development plans are prepared for the candidates for these positions. For the middle and lower level talent pool (for positions of line managers), a line of requirements is also developed, their professional knowledge and the level of development of managerial competencies are assessed.

The training of the talent pool is diversified by management levels. Succession candidates improve competencies such as 'formation of professional team', 'cooperation and collaboration', 'business thinking', 'achieving results', 'striving for improvements', etc.

In 2016, the number of succession candidates with new assignments doubled in comparison to 2015, indicating an activation of the Company's management renewal processes.

In addition to 'vertical' development, the employees of UC RUSAL production facilities can have 'horizontal' development: the Internal Competition programme provides employees with the opportunity to rotate by production facilities. Information about open positions is regularly published on the internal information portal.

Development of managerial competencies in the talent pool in 2016

Level of position

Number of trainings

Number of people trained

Talent pool for the MD level

4

55

Talent pool for the MD-1 level

22

396

Lower talent pool levels (MD-2, 3, 4)

49

468

Total persons trained

75

919

Movement of talent pool, persons

 

2014

2015

2016

Number of persons in the talent pool

1,406

1,670

1,611

Of whom have been appointed to senior positions during the reporting period

22

51

Recruitment in foreign countries

In foreign countries, the Company's HR policy is targeted at local residents, especially those living in close proximity to the production facilities. UC RUSAL production facilities not only provide timely information about open vacancies but also conduct preliminary training for those seeking employment. HKEx Appendix 27 KPI B1

In Guinea, information about vacancies is disseminated through the training service, as well as in local prefectures and communes. A database of CVs of succession candidates is formed from among the local population by the training service. Teachers of local educational institutions are recruited for training, and regular internships are organised for young professionals (graduates) at the production sites.

In Guyana, 64% of the total number of workers hired in 2016 were recruited from nearby localities. The information about existing vacancies is reported on a monthly basis at the meetings of production committees and is posted on the information boards of the business units. Meetings are held several times a year with residents, who, among other topics, discuss employment, as well as local labour legislation. In-house internships are offered to enable employees to master the use of new equipment and devices and to take an open position with these skills. For example, in 2016 the representatives of the local Hururu community were trained in welding. HKEx Appendix 27 KPI В4.1

The policy of dismissal and compensation in Guinea and Guyana is in line with the local law, the rules of the enterprise and the agreements between trade unions and the administration of the production facility. HKEx Appendix 27 KPI B1

In Armenia, cooperation has been established with higher and secondary vocational educational institutions, and students undergo intenship at production facilities. For example, in 2016 at the ARMENAL foil mill’ 49 students underwent production and pre-graduation internships. New employees are also recruited through cooperation with local employment centres and recruitment agencies: vacancies are posted on the internet and in local mass media. Compliance with local labour legislation is ensured by regular monitoring of current changes by the Legal Service: officials attend training and awareness-raising seminars on labour law. HKEx Appendix 27 KPI В4.2

Leave entitlement

The possibility of reconciling family and work is considered by UC RUSAL an important component of social policy. The Company guarantees the granting of maternity leave until the child reaches the age of three on the application of one parent, including the father. In this case, the parent taking the leave is entitled to return to work to the same position he or she held before the leave. HKEx Appendix 27 KPI B1

Maternity and paternity leave in 2016 G4-LA3

 

Russia

Foreign countries

Number of employees entitled to leave, persons

1,229

26

Number of employees taking leave, persons

381

12

Number of staff members who have returned to work after leave, persons

375

7

Return to work rate,%

31%

27%