Chapter 5.

Social responsibility

«Вокруг света под русским флагом»

Headcount of RusHydro in 2016

Occupational safety expenses in 2016

Human resources development expenses

An integrated approach to human
resource development

  • There is a special branch – Corporate University of Hydropower for implementation of RusHydro educational projects
  • There is a comprehensive program of pro-active human resources development and a system of corporate elevators (school – university – company)

Charity

  • The largest program «Clean Energy» is aimed at the creation of a favorable social environment in all regions of RusHydro HPPs operation

Charity expenses in 2016

Planned charity program of PJSC RusHydro for 2017

Cooperation with High Schools

СОТРУДНИЧЕСТВО С ВУЗАМИ

In May 2016, the volunteer movement of PJSC RAO ES of the East celebrated its second anniversary. Volunteering successfully integrates into the Company’s personnel strategy and program of corporate social responsibility. We are very grateful to everyone who responded to the initiative to develop volunteering in the Far East of Russia. Such a project has many positive aspects, including professional orientation of children, an opportunity to acquaint them with the profession of power engineers and create a decent future for them, as well as provide them with opportunities for personal development.

V.E. Pak, Director of Human Resources Department
of PJSC RusHydro

5.1. Human Resource Development

Всероссийский фестиваль энергосбережения «Вместе ярче»

The RusHydro Group’s employees ensure successful business and stable operation of Company’s industrial enterprises.

RusHydro creates favourable conditions for the work and realization of personal and professional growth of the personnel. Particular attention is paid to social support and to the system of material and non-material incentives, which are aimed at increasing the interest of workers in achieving fruitful results.

5.1.1. Human Resource Policy

The employees of RusHydro Group are the main Company’s assets. The Group’s enterprises in Russia and abroad employ professionals with extensive production experience and vast technical knowledge. RusHydro’s HR policy is aimed at developing the employees’ potential, which is vital for implementation of the Company’s strategic goals.

At the same time, RusHydro seeks to maintain stability in the Company by implementing a socially responsible position in relation to its employees. In particular, the Group protects the social and economic rights of workers, ensures their material stability and social guarantees.

The Personnel Management and Organizational Development Department deals with issues related to personnel management in PJSC RusHydro. The system of personnel training and development in the Company is regulated by the following local regulatory documents (acts):

  • Regulations on the organization of training for employees of PJSC RusHydro26;
  • Regulations on performance appraisal of the personnel of PJSC RusHydro branches27;
  • Regulations on the formation of a database of candidates for the positions of PJSC RusHydro branches28;
  • Regulations on work with the staff reserve of PJSC RusHydro29;
  • The concept of pro-active HR development “From the New School to the Workplace”.

The provisions, updated in 2016, are aimed at implementing the processes of personnel assessment and development, considering the best practices of manufacturing companies and changes in labor legislation.

5.1.2. Personnel Characteristics

As of December 31, 2016, the headcount of RusHydro Group, including employees of RAO ES of the East (in the Report boundaries), was 68,833 people (including facilities on the territory of the Russian Federation and abroad). The headcount of RAO ES of the East was 50,693 people as of December 31, 2016.

The majority of RusHydro’s employees are full-time employed (98.5% for PJSC RusHydro and 99.8% for RAO ES of the East) under terms of a perpetual labor contract (88.5% for PJSC RusHydro and 97.1% for RAO ES of the East).

RusHydro’s workforce broken down by gender and employment type

 GenderFull-time employmentPart-time employmentPerpetual labor contractFixed-term labor contract
PJSC RusHydro and subsidiaries (except RAO ES of the East)M11,68510110,4011,385
F6,1851695,644710
Total17,8727016,0452,095
RAO ES of the EastM34,1333833,580591
F16,4368615,642880
Total50,56912449,2221,471
RusHydro GroupM45,81813943,9811,976
F22,62125521,2861,590
Total68,43939465,2673,566

RusHydro Group personnel structure broken down by contract type and region, persons

 Federal district/ regionPerpetual labor contractFixed-term labor contractTOTAL
PJSC RusHydro and subsidiaries (except for RAO ES of the East)Central2,941133,053
Southern59949648
Northwestern94928977
Far Eastern2,0509873,037
Volga3,338663,404
Siberian2,9602983,258
North Caucasian2,8912863,177
Republic of Armenia301114415
Republic of Tajikistan17154171
Total16,0452,09518,140
RAO ES of the EastCentral22027247
Far Eastern48,6881,44250,130
Urals3142316
Total49,2221,47150,693

Number of RusHydro Group employees by country and region as of December 31, 2016, persons

Country, regionNumber of employees, persons
Russian FederationFar Eastern Federal District53,167
Volga Federal District3,404
Central Federal District3,300
Siberian Federal District3,258
North Caucasian Federal District3,177
Northwestern Federal District977
Southern Federal District648
Ural Federal District316
Foreign countriesRepublic of Armenia415
Republic of Tajikistan171

The gender composition of RusHydro is heterogeneous, depending on the category of employees. There are 3 times more men than women among managers while there are 1.7 times more women than men among specialists and office workers. As for workers, the number of men exceeds the number of women 4 times due to the specific nature of RusHydro Group’s activities.

Only 28% of RusHydro Group employees are under 35 years old. RusHydro has the attraction of young employees as one of the key tasks is HR-management. For this purpose, the Company implements the concept of advanced development of the Company’s personnel potential (see below).

RusHydro also hires contractors and subcontractors for construction and maintenance services. In 2016 they were involved in the construction of a number of hydroelectric power plants and thermal power plants.

The Company is improving management structures. Activities are carried out with the aim to improve the efficiency of branches management, to strengthen security measures and to increase the reliability of the power facilities operation.

Headcount of RusHydro Group by gender and category as of December 31, 2016, people

Headcount of RusHydro Group by genderand category

RusHydro Group personnel structure by age, persons

 <2525-3435-4445-54>55TOTAL
PJSC RusHydro and subsidiaries (except of RAO ES of the East)4755,0175,1864,0653,39718,140
RAO ES of the East1,74412,19213,65912,21110,88750,693
RusHydro Group2,21917,20918,84516,27614,28468,833

The proportion of employees eligible for retirement during the next 5 and 10 years, broken down by region

Federal district/ regionNumber of employees as of December 31, 2016, personsIn 5 yearsIn 10 yearsTotal in 10 years (cumulative
persons%persons%persons%
PJSC RusHydro and subsidiaries
Central3,05344414.52207.266421.7
Southern6488012.311217.319229.6
Northwestern977848.6585.914214.5
Far Eastern3,0372939.634111.263420.9
Siberian3,25846214.238311.884525.9
Volga3,40438811.446413.685225
North Caucasian3,17740712.843813.884526.6
Republic of Armenia4156916.67718.614635.2
Republic of Tajikistan171137,62112.33419.9
RAO ES of the East
Central2472811.3166.54417.8
Ural3167423.44413.911837.3
Far Eastern50,1306,21212.46,47912.912,69125.3

Seasonal employment

RusHydro Group attracts additional workforce seasonally. In particular, in 2016:

  • Five seasonal workers were hired in PJSC Krasnoyarskenergosbyt.
  • One employee was temporarily included in the activities of CJSC MEC-Energo in the Republic of Armenia. Seasonal employment was associated with control over water releases from Lake Sevan.

JSC DRSK (RAO ES of the East) involved temporarily 50 employees in the organization of the children’s health camp “Energetik” during the summer school holidays.

RusHydro Group personnel structure by categories and sex, persons

 GenderManagementSpecialists and office workersWorkersTOTAL
PJSC RusHydro and subsidiaries (except for RAO ES of the East)M2,6672,8866,23311,786
F9064,0281,4206,354
Total3,5736,9147,65318,140
RAO ES of the EastM5,8824,48523,80434,171
F1,8608,6076,05516,522
Total7,74213,09229,85950,693
RusHydro GroupM8,5497,37130,03745,957
F2,76612,6357,47522,876
Total11,31520,00637,51268,833

Dialogue between labor and management

RusHydro created public reception offices and a specialized feedback channel “Line of Trust” with the aim to build the communication between management and workforce, to inform employees and to consult with them, and also to get a feedback from employees. Meetings and discussions between the management of RusHydro and trade unions are held in the process of signing new collective bargaining agreements or by changing the conditions on the demand of the parties.

PERSONNEL RECRUITMENT

The personnel selection in the RusHydro Group is carried out on a competitive basis (including for any management positions). This approach allows to recruite motivated specialists who meet the qualification requirements and are potentially capable of professional development. The main criterion for selection is the qualification of the candidate for the position. There are no restrictions on gender, age and nationality: all candidates are allowed to compete for vacant positions.

PERSONNEL ASSESSMENT

The assessment of the employees’ qualification (including for management positions) in the Company is carried out by the Branch of PJSC RusHydro – the Corporate University of Hydropower, using various methods for assessing professional and managerial competencies, including the use of Assessment Centre.

Also, the Company’s personnel are certified on compliance with the requirements of their position. Employees’ professional, business and personal qualities are assessed, as well as the results of their achievements. The managers, specialists and employees of the Company are assessed regardless of gender, once every three years.

he share of employees, evaluated for their performance and career development in 2016, by gender and by category, % of total number of workforce

5-1-2-2_EN

5.1.3. Measures to ensure the availability of qualified personnel

In order to achieve its strategic goals, RusHydro Group participates in the creation and implementation of professional standards, develops professional and managerial competencies of employees, implements programs for the professional orientation of talented students. For this purpose, the Company implements programs for Advanced Human Resource (HR) Development, creates a personnel reserve, and provides training for employees. The system of material incentives is adjusted to create favourable conditions for work and career growth

PROGRAM FOR ADVANCED HUMAN RESOURCE DEVELOPMENT

The concept of pro-active HR development “From the New School to the Workplace” was adopted in 2010. Its main goal is to provide the Company with quality trained specialists and at the same time, to build a system of natural reproduction of labor the regions of its presence, to generate interest to hydropower industry and to attract young residents of the regions to the professions of energy sector for successful work in RusHydro Group.

Measures to ensure the availability of qualified personnel

Measures to ensure the availability of qualified personnel

Goals of the Program “From the New School to the Workplace”

SCHOOL

Providing the required number of entrants in the energy Universities with necessary knowledge.

UNIVERSITY

Providing the required number of young specialists with necessary knowledge and skills.

COMPANY

Raising the level of competencies of employees of PJSC RusHydro.

Provide the Company with the necessary amount of qualified specialists.

Form a positive employer brand in the regions of presence.

As part of the implementation of the concept of pro-active HR development, there was developed a system of “Corporate lifts”, which is aimed at attracting and accompanying future specialists from school age as well as increasing the prestige of engineering professions:

  • “Corporate lift – New School” – informs schoolchildren about the importance of the hydropower professions, develops engineering abilities, introduces schoolchildren with the activities and specifics of the Company through basic and additional educational programs, provides career guidance, helps with admission to profile universities.
  • “Corporate lift – Higher educational institution, technical schools” – creates effective mechanisms for selection and evaluation of entrants in accordance with the Company’s targets, supports the future employees training, creates conditions for the continuous development of the scientific and engineering potential of the Company and profile universities.
  • “Corporate lift – “Company” – enables adaptation and development of Company’s young professionals, organizes mentoring and knowledge transfer system, and forms an effective competence development environment, works with personnel reserve.

An integrated system also makes it possible to reduce the costs of additional training and newcomers training.

The main results of the corporate lift “New School” in 2016:

  • 496 students took part in the “Energoclasses” in 2015/2016 academic year;
  • 158 people were trained in the centres for the development of children’s and youth technical creativity;
  • VI Summer Power School – 2016 was held in Cheremushki on the basis of the RusHydro training-industrial and informative-innovative Centre, it was attended by 39 schoolchildren from 15 regions of Russia;
  • the sectoral Olympiad “Energy of Education” was held for pupils of 7-11 grades, 1,108 people took part in the event;

the first graduates from the Energoclass project, the participants of the Summer Power School, and former students of profile higher education institutions became employees of the stations of PJSC RusHydro throughout Russia – Zeyskaya HPP, Uglichskaya HPP, Cascade of Verkhnevolzhsky HPPs, and others.

Measures for the implementation of the pro-active HR development Program “From the New School to the Workplace”

CORPORATE LIFT
NEW SCHOOL

CORPORATE LIFT
HIGHER EDUCATIONAL INSTITUTION,
TECHNICAL SCHOOLS

CORPORATE LIFT
COMPANY

  • Profile “Energoclasses” – pre-university preparation of schoolchildren are open in Volzhsky, Kodinsk, Uglich, Balakovo, Nevinnomyssk, Novosibirsk and Novocheboksarsk, Novobureysk and Cheremushki
  • Centers for children and youth technical creativity are being opened
  • The corporate Olympiad in physics “Energy of Education” is held
  • The Summer Energy School is organized
  • Educational and methodological materials, educational and educational literature on hydropower are published
  • Agreements with technical colleges and technical schools of the Russian Federation are concluded
  • The Company participates in management bodies through the Board of Trustees, participates in dissertational councils
  • The Company conducts harmonization of educational programs and professional hydropower standards developed by RusHydro
  • Career centers operate in the Sayano-Shushensky branch of Siberian State University and the National Research University branch
  • An annual competition of student projects on hydropower “Energy of development” is held
  • The Spring Energy Student School is organized
  • Employees included in the talent pool of various levels pass and take part in the Company’s development projects
  • Company’s training-industrial and informative-innovative Centres are being established
  • Young workers are provided with their current social needs package, including corporate support for improving housing conditions

CORPORATE LIFT
NEW SCHOOL

  • Profile “Energoclasses” – pre-university preparation of schoolchildren are open in Volzhsky, Kodinsk, Uglich, Balakovo, Nevinnomyssk, Novosibirsk and Novocheboksarsk, Novobureysk and Cheremushki
  • Centers for children and youth technical creativity are being opened
  • The corporate Olympiad in physics “Energy of Education” is held
  • The Summer Energy School is organized
  • Educational and methodological materials, educational and educational literature on hydropower are published

CORPORATE LIFT
HIGHER EDUCATIONAL INSTITUTION,
TECHNICAL SCHOOLS

  • Agreements with technical colleges and technical schools of the Russian Federation are concluded
  • The Company participates in management bodies through the Board of Trustees, participates in dissertational councils
  • The Company conducts harmonization of educational programs and professional hydropower standards developed by RusHydro
  • Career centers operate in the Sayano-Shushensky branch of Siberian State University and the National Research University branch
  • An annual competition of student projects on hydropower “Energy of development” is held
  • The Spring Energy Student School is organized

CORPORATE LIFT
COMPANY

  • Employees included in the talent pool of various levels pass and take part in the Company’s development projects
  • Company’s training-industrial and informative-innovative Centres are being established
  • Young workers are provided with their current social needs package, including corporate support for improving housing conditions

INTERACTION WITH UNIVERSITIES

Within the framework of interaction with universities, the implementation of activities aimed at qualitative training of young specialists for the RusHydro Group was continued in 2016:

  • Agreements are in force with Moscow Power Energy Institute (MPEI), Siberian Federal University (SFU), Moscow State University of Civil Engineering, Peter the Great St.Petersburg Polytechnic University, Amur State University, and specialized technical schools. In 2016, the Company signed an agreement with Far Eastern Federal University, and donated 30 million rubles to the University Fund.
  • In 2016, the Company opened new scientific and training laboratories “Hydraulic Structures” and “Electrical Systems” in the Volga branch of the MPEI.
  • Career centres are organized in the Sayano-Shushensky branch of SFU and Volga branch of MPEI (work is conducted during all 4 years of training – corporate courses, assessment of competence development, familiarity with the standards of the company’s activities, assistance in career planning, organization of production practices).
  • The graduate thesis are useful for the technological process of RusHydro.
  • The competition of students’ projects on hydropower “Energy of Development” is held every year, the best students take part in the final of the All-Russian Engineering Competition held by the Ministry of Education and Science of the Russian Federation.
  • RusHydro is the organizer of the annual All-Russian Scientific and Practical Conference “Hydroelectric Power in the 21st Century”, which was held in the Sayano-Shushensky branch of SFU in 2016.

The Spring Energy Student School is being held in partner universities of the Company.

PERSONNEL TRAINING

Training and development of RusHydro Group personnel is a strategically important task for the Company. It is related to the need to carry out new types of professional activities, as well as to improve the skills and training of personnel. The system of continuous training of personnel allows to develop the competencies of employees in accordance with the requirements for the positions held, as well as for the purpose of moving them in the framework of the training of the personnel reserve. In addition, the Company has the opportunity to undergo professional retraining, including in the compliance with professional standards.

The Corporate University of Hydropower (the branch of RusHydro) – was established in 2007 to implement educational projects in the Group

Expenditures for the personnel development of PJSC RusHydro in 2016 amounted to 123.4 million rubles. These costs include the training and development of the Company’s personnel, including professional competitions for operational personnel, which are held every two years. The cost reduction in 2016 is related to the cost optimization program adopted by the Company, the transfer of a number of training events to the remote format, as well as to changes in the number of employees who needed normatively mandatory training.

Expenses for development of HR potential of RusHydro, mln rubles

Expenses for development of HR potentialof RusHydro, mln rubles

Basic Formats of Training

FormatPeriodicity
Skills upgradingAt least once every three years
Professional education and trainingIn accordance with the requirements of the supervisory authorities, if it is necessary to obtain a new profession
Professional retrainingConducted in connection with the production need to perform a new type of professional activity or to obtain additional qualifications for the personnel reserve training
Corporate trainingСarried out when it is necessary to solve specific tasks for the Company
Internal technical trainingAnnually
Short-term training programs (seminars, conferences, forums)Annually, the content depends on the production need
Distance learningAnnually, the content depends on the production need

In 2016, the average number of training hours per employee increased for the managers of RAO ES of the East, as well as for the workers of PJSC RusHydro and RAO ES of the East. The average number of training hours for managers of PJSC RusHydro has decreased noticeably (from 77.3 hours/person to 38.6 hours/person), due to a non-linear frequency of normative training of management staff.

Average number of training hours per employee in 2014-2016, broken down by category, hours/person

 YearManagementSpecialists and office workersWorkers
PJSC RusHydro and subsidiaries (except for RAO ES of the East)201447.135.235.4
201577.350.749.3
201638.624.129.7
RAO ES of the East201445.216.929.0
201536.513.728.2
201640.513.534.3

Average number of training hours per employee in the reporting year, by gender and category (RusHydro Group), hours/person

 Total number of training hours for employeesNumber of employees in this categoryAverage number of training hours per employeeAverage number of training hours per employee
MFMFMF
Management
PJSC RusHydro and subsidiaries (except for RAO ES of the East)116,04821,9142,66790643.524.238.6
RAO ES of the East275,31438,0755,8821,86046.820.540.5
Specialists and office workers
PJSC RusHydro and subsidiaries (except for RAO ES of the East)106,18860,5812,8864,02836.71524.1
RAO ES of the East102,98773,5754,4858,60723.08.513.5
Workers
PJSC RusHydro and subsidiaries (except for RAO ES of the East)215,26811,9056,2331,42034.58.429.7
RAO ES of the East947,91977,42923,8046,05539.812.834.3

In 2016, 11,831 people were trained at the Corporate University of Hydropower (including face-to-face – 1,898, remotely – 9,933). Training was provided to employees of PJSC RusHydro and its subsidiaries. The production staff was more than 52% of the total amount of trained personal at attendance-based programs in 2016.

For the year 2016 Corporate University of Hydropower:

  • 69 training events were conducted;
  • 1,898 employees of the Company were trained, including 389 people – using webinars, 1,509 people – using face-to-face format.

Starting from 2015, PJSC RusHydro has been actively participating in the implementation of the project to train young workers in accordance with WorldSkills standards.

For the period 2015-2016, 16 teams have been trained in the younger age group, who took part in the regional and all-Russian stages “JuniorSkills” and “WorldSkills Hi-Tech” in the competence “Electrical Installation”. To date, PJSC RusHydro is the only company that represents teams in junior direction that consist of orphans.

Volunteers – the Company’s employees – conducted preparation for competitive stages and accompanied children at the championships. As a result of participation in the championships, the expert community assigned the tutors the status of “Expert in the program of early vocational guidance and vocational training of schoolchildren Juniorskills”, which gives the right to independently initiate regional championships of working professions and develop competitive tasks for competitors.

Professional training of personnel by categories in 2016, people

Professional training of personnel by categories

RAO ES OF THE EAST PERSONNEL TRAINING

With the aim to attract young specialists, RAO ES of the East companies annually finance targeted training programs of higher and secondary vocational education for students, attract students for industrial and pre-graduation practice. Some of the company employees participate in the work of the examination commissions of universities and/or in the educational programs implementation. According to the programs of higher professional education, 344 people were trained at the expense of the Holding Company’s funds in 2016, the volume of funding for higher education amounted to 5,508 thousand rubles.

NEW LEARNING MECHANISMS

In 2015, corporate simulators were put into operation to practice electrical switching and equipment control at the 17 major HPPs. The simulators feature computer modeling of the operation modes of equipment installed at HPPs, including control processes. The simulators were developed in accordance with the wiring diagrams of HPPs with maximum similarity to real control panels, relay protection, and cabinets of technological systems, switchgear and drives. Due to this, it is possible to practice, as close to reality as possible, the skills and sequence of performing actions by operating staff to ensure safe and reliable operation of HPP.

In 2016, the order of PJSC RusHydro was issued30, according to which the operational personnel of the branches should undergo special simulators training at least once a quarter. Trial training using a simulator was conducted in 15 branches. In addition, a virtual simulator was developed to upgrade operational personnel skills in terms of conducting operational negotiations, fixing commands and orders, maintaining operational documentation, and giving (receiving) teams and permits.

Another RusHydro project in the field of simulator training is the creation of a training ground for personnel of HPP Technological System Management Services on the basis of the Volzhskaya HPP and the Volga Training Centre of the Corporate University of Hydropower.

In 2016, the work was started to create this training ground:

  • project documentation has been developed and approved;
  • 11 training programs have been developed, which will be implemented at the training ground;
  • the equipment has been delivered.

It is planned that the creation of the training ground will be completed in 2017.

Specialized training programs were developed in the reporting year in the framework of the previously adopted professional standards. In total, it is planned to develop 99 programs and training modules in accordance with professional standards. In 2016, 12 programs and training modules were developed.

Competitions of professional skills

Professional excellence competitions are one of the tools for identifying and training highly qualified specialists, as well as the way to transfer experience from the best representatives of the profession. During the competition the possibility of computer simulators, systems for automated knowledge testing and operators training are demonstrated, modern technical means of training, automated personnel testing and training are introduced and professional experience is shared.

In the year of 2016, the RusHydro Group held the VII All-Russian competitions for operational personnel of the hydroelectric power plant, in which teams were accepted, including branches of PJSC RusHydro, subsidiaries of the Group and other energy companies. The next All-Russian competitions for HPP operational personnel will be held in 2018.

“Competitions of professional skills are one of the elements of the personnel training system developed at RusHydro. This year, the organizers made every effort to introduce reasonable difficulties at all stages, making them more interesting. The competitions were held at a high level, I believe that our company is among the best in terms of holding such events.”

N.G. Shulginov, Chairman of the Management Board – General Director of PJSC RusHydro

WORK WITH THE PERSONNEL RESERVE

The provision of subsidiaries and branches of Group with qualified personnel, especially engineering specialties, is one of the most important tasks of the Company, which the Corporate University of Hydropower successfully solves. The Company has formed a personnel reserve. It includes managers and specialists of RusHydro Group, who have the ability to manage activities that meet the requirements of their position, passed selection and systematic targeted qualification training.

In the reserve, the following groups of candidates are being formed, preparing to be included in the management activities step-by-step:

  • the personnel reserve for the leading position of the Branch;
  • the personnel reserve for the leading position in the RusHydro subsidiary;
  • the personnel reserve of young specialists of RusHydro Group.

The training program for the young specialists of the RusHydro Group includes four training modules, which are conducted with the involvement of advanced energy specialists, in the format of project sessions and internships. Based on the results of reserve-participant preparation, an individual and career development plan is drawn up for each person, also decisions are made on appointing to a vacant superior position, including in project teams.

In 2016, more than 70 employees of the Company completed training under the program of training the operational personnel reserve for the positions of structural subdivisions heads of the branches and began to protect the graduate thesis. The training program included analysis of the best corporate, industry, international practices, creation of proposals for the development of production activities of PJSC RusHydro.

Since 2009, PJSC RusHydro has been conducting a corporate competition “Internal Power Source”, aimed at the formation of a highly qualified managerial personnel reserve. In 2016, the third competition was held. Its results were summed up at the International Forum of Young Power Engineers and Industrialists “Forsage-2016”, which was the final stage of the competitive selection. As a result of the competition, 28 employees of RusHydro branches and subsidiaries up to 30 years old (of which six employees were from RAO ES of the East) became winners and entered the Group’s long-term future reserve.

Reservists of RusHydro Group participate in the modular training and development program, forums, competitions, project activities of RusHydro, as well as in the work of professional communities established during the forum.

Since the beginning of the project, 55% of the past years’ “Internal Power Source” graduates have moved up the career ladder, and 9 of them have taken leading positions.

5.1.4. Motivation system and social guarantees

MOTIVATION SYSTEM

The motivation system plays a great role in the Company. It includes material and non-material incentives for personnel and is aimed at increasing the productivity of the Company. Also, bonuses are a significant part of wages.

In order to implement the socially responsible position of PJSC RusHydro, the Company’s Social Policy was developed and approved in 2013. The document establishes the main principles, goals and objectives for the social development of PJSC RusHydro and its subsidiaries in the regions of presence.

The goals of the Social Policy are:

  • to develop RF government projects and implement the Company’s social responsibility;
  • to develop practices of mutual accountability and social partnership;
  • to increase the attractiveness of PJSC RusHydro as an employer in order to apply and retain the best specialists.

The objectives of the Social Policy are:

  • to create an institutional environment for attracting and retaining young specialists;
  • to build high employee commitment to the goals and principles of PJSC RusHydro;
  • to improve labor relations, taking into account the interests of the employer, employees, shareholders, and the state.

Personnel wage structure, %

Personnel wage structure

Ratio of standard wages of entry-level employees to the level of minimum wage in the significant regions of activity

 Ratio of standard wages of entry-level employees to the level of minimum wage in the significant regions of activity
PJSC RusHydro executive administration (Central Federal District)5.6
PJSC RAO ES of the East (Central Federal District)9.2
PJSC RAO ES of the East (Far Eastern Federal District)10.9
Electricity generation companies (RusHydro Group, except RAO ES of the East)
Central Federal District3.5
Volga Federal District5.92
North Caucasian Federal District4.64
Far Eastern Federal District4.29
Southern Federal District2.85
Siberian Federal District5
Republic of Armenia1
Electricity and heating generation companies (RAO ES of the East)
Far Eastern Federal District1.7
Central Federal District1
Ural Federal District1.95
Electricity generation facilities construction companies
Central Federal District4.6
Far Eastern Federal District5.58
North Caucasian Federal District3.43
Repair and construction companies
Central Federal District2.13
Volga Federal District2.1
North Caucasian Federal District2.13
Far Eastern Federal District1.74
Southern Federal District2
Siberian Federal District3.3
Institute (research and design) companies
Central Federal District1.38
Siberian Federal District1.1
Northwestern Federal District1.4
Supply (retail) companies
Central Federal District2.7
Volga Federal District1.4
Siberian Federal District1.4
Other companies that are essential for CSR
Far Eastern Federal District2.8

AREAS OF SOCIAL POLICY

Work with youth and educational programs

Families and maternity support

Health care, promotion of a healthy lifestyle

Pension support

Housing program

Socio-professional adaptation of orphans

In its social policy, PJSC RusHydro aims to follow international standards and best practices in terms of human rights, labor relations, environment, anticorruption and stakeholder engagement. The Company follows the provisions of the Guidance on Social Responsibility (International Standard ISO 26000) and the general principles of the UN Global Compact (UNGC Corporate Sustainability) in terms of human rights, labor relations, environment protection, and anti-corruption.

RusHydro Group provides benefits to employees who work full-time in all significant areas of activity, in particular:

  • voluntary medical insurance;
  • insurance against accidents and illnesses;
  • compensation for disability/invalidity;
  • maternity/paternity leave.

The guarantees and privileges, included in the collective agreement, are applicable to all employees who have concluded an employment contract with the Company, regardless of the conditions of employment (full-time employment, temporary or part-time employment).

In accordance with Article 74 of the Labor Code of the Russian Federation (on changes organizational or technological working conditions) and Article 75 of the Labor Code of the Russian Federation (on changes of the organization’s property owner, changes in the subordination of the organization, reorganization), the employee is notified in a simple written form not later than 2 months after the material change of employment contract takes place.

VOLUNTARY MEDICAL INSURANCE AND INSURANCE AGAINST ACCIDENTS AND ILLNESSES

Voluntary medical insurance is part of the social package of PJSC RusHydro employees. Under the contract of voluntary medical insurance and insurance against accidents and illnesses, the Company’s employees are provided with out-patient services, emergency and planned in-patient treatment, emergency medical care, and travel insurance. Also, workers are vaccinated against a number of diseases and can undergo medical and preventive examinations. This program covers 100% of the Company’s employees, except for part-time employees and those on probation. The company facilitates the purchase of voluntary health insurance policies for members of employees’ families at corporate prices.

NON-GOVERNMENTAL RETIREMENT PLANS

The non-state retirement plan (hereinafter – NSRP) program has been implementing in PJSC RusHydro since 2007. The stable Company’s partner is JSC Non-State Pension Fund of the Electro Energy Industry.

In 2016, NSRP PJSC RusHydro included several pension plans designed to finance the pension savings of different target groups of employees.

The most numerous in terms of the number of participants is the Parity Plan, which is financed on the basis of parity participation by the employee and the Company. Also, the programs of NSRPs fully funded by the Company are created for employees with significant experience in the industry and awarded with state and industry awards (Supporting Program) and for the well-deserved former employees of the industry (Veteranskaia program).

More than 50% of employees took part in non-state pension plans of PJSC RusHydro in 2016. In the RAO ES of the East, the number of participants in the parity plan was about 15% of total number of the Holding employees at the end of the reporting year.

In 2016, RusHydro, signed a memorandum of cooperation with the non-state pension fund VTB Pension Fund in the framework of the St. Petersburg International Economic Forum. In December 2016, RusHydro and NPF VTB signed an agreement on non-state pension funding for the corporate pension program.

IMPROVEMENT OF EMPLOYEES’ LIVING CONDITIONS

PJSC RusHydro continues to implement the program to improve living conditions of the Company’s employees. Young specialists under the age of 30 who do not have their own houses, professionals who were invited to work at the branch and in this connection moved from another area, and highly qualified specialists have the priority right to participate in the program.

The main form of corporate support to improve the living conditions is compensation of expenses related to the payment of interest on the mortgage to the bank, and housing rental costs. In exceptional cases, operating staff of the branches, which are of particular value to the Company, can receive target interest-free loans for up to 10 years to improve their housing conditions.

In 2016, 66 RusHydro branches’ employees received target interest-free loans.

RAO ES of the East also pays special attention to retaining qualified specialists at enterprises. In this regard, in 2016, the Holding concluded an agreement with the Government of the Khabarovsk Region and Agency for Human Capital Development in the Far East on the development of housing construction and housing hiring for power engineers.

The Government of Khabarovsk Region has committed itself to the development of housing construction and the selection of land for the affordable housing construction. PJSC RAO ES of the East plans to develop corporate housing programs to attract employees to new facilities and ones that are under construction. The Holding together with the Agency intend also to develop a set of proposals to the executive authorities with the aim to stimulate construction and reduce housing cost.

COLLECTIVE AGREEMENT

The collective agreement regulates social and labor relations at the enterprise and takes into account the mutual interests of employees and the employer.

Human rights

The basic approach taken by RusHydro Group in the field of human rights is to fulfil all legal requirements of the Russian Federation. The Group does not conduct its activities and does not enter into investment agreements in areas with a high risk of human rights violations. RusHydro Group guarantees its employees respect for their rights to work, to rest, to financial support in old age and in case of disability. These rights are exercised in accordance with the requirements of the Labor Code of the Russian Federation.

Employees of RusHydro Holding’s member companies are able to fully exercise their right to freedom of association. There are trade unions, which have been organized and operate freely in most companies of RusHydro Holding.

In 2016, collective agreements concluded in 2014 continue to operate in all branches of the Company. Among the Group’s employees, 65,918 people (95.8%) were covered by collective agreements in 2016.

PJSC RusHydro and a number of its subsidiaries are members of the All-Russian Industry Association of Electric Energy Employers, which adopted the Industry Tariff Agreement (ITA), which forms a single industry standard for regulating social and labor relations in the industry and sets a minimum level of guarantees for employees. The existence of such a standard facilitates the conduct of a dialogue between the parties of social partnership at the level of the companies of the industry and the holding company, helps to compare and evaluate the level of guarantees provided to employees.

RusHydro regularly carries out a dialogue with representatives of trade union organizations during the conclusion and modification of collective agreements of branches and subsidiaries. Disagreements may arise when discussing the working conditions of employees, but the parties in the overwhelming majority of cases find opportunities for constructive dialogue and removal of the arising disagreements. This helps to provide the necessary level of social stability, to avoid social tension and the emergence of collective disputes.

In October 2016, the Company had disagreements with the trade union on labor remuneration issues for employees of the Luchegorsky coal mine; several dozen workers announced a strike. The protest action was discontinued after the management of JSC LUR assumed the obligation not to conduct any staff reductions, as well as to accept the regulation on employees bonuses and accept the collective agreement on social benefits and guarantees.

To support young families, the Company provides them with one-off payments in connection with the registration of marriage, the birth of a child; childcare allowance for up to three years; compensation of expenses for the maintenance of children in pre-school educational institutions.

Granting maternity and paternity leave (RusHydro Group)

 201420152016
MFMFMF
Total number of employees that were entitled to parental leave in the reporting period, persons3,4172,0023,7982,1943,852,383
Total number of employees that took parental in the reporting period, persons481,277531,399461,489
Total number of employees that returned to work in the reporting period after parental leave ended in the reporting period, persons255712052918568
Total number of employees that had to return to work after parental leave ended in the reporting period, persons541,2064482062940
Return to work rate in the reporting period, %46.347.345.564.529.060.4

The Company creates conditions for the formation of professional dynasties and tries to increase the prestige of engineering professions. To attract young qualified specialists to the industry, the Company pays stipulated payments to workers’ children who are trained for power professions with “good” and “excellent” grades, as well as encourages employees for mentoring.

Benefits are also provided for employees wishing to adopt a child, become foster parents or guardians – this is compensation for the costs of medical services, visits to sports clubs, development groups, etc. Employees-adoptive parents also receives monthly incentive payments.

The Company compensate the payment of season tickets to sports clubs and sections in the amount of 50%. The compensation exists for employees and their children in the framework of maintaining health and promoting healthy lifestyles.

In 2016, the Board of Directors of PJSC RusHydro approved a new version of the standard Collective Agreement of RusHydro branches for 2017-2019. The new version of the agreement has been finalized taking into account changes in labor legislation and labor protection legislation of the Russian Federation.

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