Norilsk Nickel continues to develop employee motivation system
In 2010 Norilsk Nickel showed an increase both in productivity and salaries. As a result, the Company managed to maintain its leading position among major businesses operating in Russian mining and metallurgy industry in terms of salary levels. In 2010 the expenditures associated with employee remuneration and social benefits increased by 15% as compared to 2009.
In 2010 the average salary for the Group’s employees increased by 14.7% as compared to 2009 and amounted to RUR 55.9 thousand, which is 2.6 times higher than the average salary in Russia and 2.3 times higher than the average salary in mining and metallurgy industry. Average salary for the employees of the Polar division amounted to RUR 63.3 thousand, 10% higher than in the previous year.
The Company increased the base (conditionally constant component) part of the salary up to 70% from December 1, 2010, in order to provide a greater degree of social protection for the Company’s employees, and appropriate adjustments were made to the collective agreement.
The main part of labor compensation fund (about 70%) is directed to the subsidiaries located in Norilsk and Taimyr municipal district.
The Company also provides its employees with a social benefits package. The total amount of funds allocated in this respect was RUB 4.6 billion in 2010. Social benefits package includes subsidized vacation and health-resort trips for employees and their families (RUB 1.2 bln.), payments for vacation tickets and luggage surcharges for the employees of northern subsidiaries and their families (RUB 1.4 bln.), complementary pension benefits and other social guarantees (RUB 2 bln).
The average value of the social benefits for each of the Group’s employees totaled RUB 57.3 thousand in 2010, which represented a 20% increase as compared to 2009.
The Company pays close attention to non-financial incentives for the employees. In 2010 5.5 thousand people received awards for their work-related achievements, long service and diligent work. 32 people received government awards, 454 people received ministry and department awards, 775 people received regional and municipal awards, 120 people received corporate awards and over 4 thousand people received Group’s subsidiaries’ awards.
ABOUT MMC NORILSK NICKEL:
MMC Norilsk Nickel, a company incorporated under the laws of the Russian Federation, is the largest diversified mining and metals company in Russia, the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition to this, MMC Norilsk Nickel produces a large number of other by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.
The key production units of the Company’s group in Russia are at the Polar and Kola Peninsulas. MMC Norilsk Nickel international assets include operations in Finland, Australia, Botswana and South Africa.
MMC Norilsk Nickel’s shares are traded at MICEX and RTS. ADRs on the Company’s shares are traded at over the counter market in the US and at the London and Berlin stock exchanges.
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