The Company’s management understands its responsibility to the state, society and employees of IDGC of the North-West and pays a serious attention to the system of benefits, guarantees and compensations which affects considerably the effectiveness of employees’ work, contributes to the increase of workforce productivity, optimization of production processes, stability and sustainable development of the Company in the long-run, increase of employees quality of life and positive image of the Company.
Key principles of social policy implementation
The social policy of JSC IDGC of the North-West in 2011-2012 was focused on:
- maintenance of social stability and development of social partnership in the conditions of reorganization;
- provision of social security for the personnel, their family members and veterans of the power industry in the conditions of the general financial and economic crisis;
- development of corporate culture with the purpose of motivating personnel to fulfill the Company’s mission and to solve current problems;
- creating stable favorable socially-psychological climate in the team;
- providing positive public image of the Company.
The Company’s social policy in 2011-2012 was developed in a comprehensive way with regard to the support of the composition of a social package, i.e. a package of benefits and compensation for employees, their family members and energy sectors veterans provided by the Collective Agreement of JSC IDGC of the North-West for 2012 by several target areas.
Disease prevention and health improvement of employees and their children
VHI and HAI
Voluntary health insurance (VHI) and health and accident insurance (HAI) of the Company’s employees was carried out according to the Regulation on Providing Insurance Protection of JSC IDGC of the North-West and Insurance Protection Program of IDGC of the North-West. Insurance of employees in 2011-2012 under VHI was carried out by JSC AlfaStrakhovanie, insurance under HAI was carried out by LLC Rosgosstrakh.
The following VHI programs are available to the Company’s employees:
- ambulatory care;
- emergency and rescue medical aid;
- in-hospital medical check-up and scheduled and emergency treatment;
- dental insurance;
- rehabilitation and recreational treatment (effective in branches).
Agreements for medical treatment of employees were made with over 100 prevention and treatment facilities of the Northwestern region.
Employees’ children disease prevention
We annually allocate funds to improve health of employees’ children which is especially important taking into account the climatic peculiarities of the Far North where most of the Company’s branches are situated. In 2011-2012, through a full or partial use of the Company’s funds, employees’ children visited resorts and recreational centers of the country, including resorts of Anapa, Sochi, Tuapse and Gelendzhik.
Sports propaganda
During 2011 and 2012 the Company’s team took part in the Winter and Summer Games of JSC IDGC Holding (Russian Grids). The Company’s team includes sportsmen who showed best results in qualifying competitions held during the year in branches.
One of the main components of the employees’ health improvement, healthy lifestyle promotion and disease prevention is granting the Company’s employees of opportunities of involvement in physical training and sports, conducting competitions and sports celebrations, participation in sports competitions and tournaments.
Social support of non-working pensioners and pensioners retiring from the Company
The Company’s social responsibility documented in the Collective Agreement provides expenses for material support of former employees of JSC IDGC of the North-West, who received one-time material aid on Victory Day, Elderly Day and personal anniversaries during the reporting year; relatives of pensioners-veterans were reimbursed expenses on ceremonial services.
In order to promote social and public support of veterans of the power industry, according to the order of Director General the Company a corporate holiday “Day of the Elderly People — Veterans of JSC IDGC of the North-West” is held on the last day of each quarter. On this day we invite veterans of the power industry to tea parties and festive concerts, organize excursions and visits to museums.
Target social payments, benefits and compensations to the Company’s employee
Target monetary payments and compensations are provided to employees according to the applicable norms of the Collective Agreement, the most essential of which are:
| Type of payment | 2012 | 2011 |
|---|---|---|
| One-time material aid before vacation | ||
| Compensation of traveling expenses within the territory of the Russian Federation for the employees working in the Far North regions and the districts equated to them and their dependents to a place of their vacation and back | ||
| 50% discount for the household electric energy consumption | ||
| Payments to employees at birth of a child, registration of marriage, death of relatives | ||
| One-time payment to the employees retiring after the establishment of labor pension | ||
| Deduction of 0.3% from the Salary Fund to accounts of the Primary Union Organization for organization of sporting and mass cultural events | ||
Implementation of the of Non-state Pension Provision Program
In 2011 non-state pension was received by 3,664 employees from among the retirees. In 2012 non-state pension was received by 3,682 employees from among the retirees. The amount of non-state pension depends on the employee’s official salary, period of his/her employment in the power industry, industrial and state awards.
In 2012 12 employees of the Company received state awards of the Russian Federation, 54 employees received departmental awards of the Ministry of Energy of the Russian Federation, 94 employees received corporate awards of Russian Grids, 1 employee of IDGC of the North-West was placed on the Russian Grids’ Honors Board, 12 employees were included in the Russian Grids’ Honors Book, 424 employees received awards of IDGC of the North-West.
The main purpose of the Program is providing worthy living standard of the Company’s employees at pension age, and creating the conditions for effective solving of personnel issues, such as decrease of staff turnover and keeping the employees in the power supply system. In 2011 and 2012 the Company continued cooperation with the Non-state Pension Fund of the Electric Power Industry (hereinafter the Electric Power Industry NPF) in the framework of implementation of non-state pension provision program for employees in four areas:
- Corporate Plan (financed by the Company), including the Support Program;
- Parity Plan (financed by the Company and the employee);
- Co-Financing Program (financed by the employee, the Company and the State);
- Transfer of the funded part of the state pension to NPF.
The Company understands the social meaning of material support of employees after retirement and tries to find possibilities for financing of non-state pension programs under the conditions of exclusion from the tariff rate of these expenses by regional tariff regulative authorities.
Dynamics of non-state pension provision expenses, RUB thousand
| Company/branch | 2012 | 2011 | 2010 |
|---|---|---|---|
| Executive apparatus | 5,979 | 3,979 | 3,979 |
| Arkhenergo | 7,370 | 12,777 | 26,870 |
| Vologdaenergo | 13,483 | 13,483 | 13,483 |
| Karelenergo | 5,808 | 5,746 | 5,703 |
| Kolenergo | 7,018 | 4,740 | 3,190 |
| Komienergo | 21,720 | 21,273 | 14,958 |
| Novgorodenergo | 5,050 | 4,415 | 10,731 |
| Pskovenergo | 10,881 | 10,921 | 10,921 |
| Total for the Company | 77,309 | 77,334 | 89,835 |
Development of the social partnership system
The Company effectively interacts with Primary Trade-Union Organizations (PTUO) and PTUO representatives’ council, solving shared problems of information support of the team, cultural and sporting events organization, fulfillment of the uniform Collective Agreement and uniform Regulation on Remuneration of Employees.
The Company applies a performance reward system for achievement of the maximum performance indicators, implementation of innovative projects and long-term dedicated work.
74% of the Company’s employees (10,681 employees) in 2011 and 65.8% of the Company’s employees (9,970 employees) in 2012 were members of Primary Trade-Union Organizations.