Metalloinvest announces pay rise for enterprise employees
13 February 2020
Metalloinvest will increase the wages of its enterprises’ employees from 1 March 2020.
The payroll fund will be increased by 5%. This rise will amount to 1.7 billion roubles, taking into account deductions for social security contributions.
Most of these funds will be used to ensure guaranteed wage growth of 4% (above inflation rates in 2019).
The remaining 1% increase in the payroll fund will be allocated to pay rises for certain types of benefits, personnel categories and professions. In particular, a range of existing bonuses and supplements is expected to be increased.The relevant decisions were made at Metalloinvest’s Social Council – the collegial body of the social and labour partnership between the employees and employer. The Social Council includes senior managers from Metalloinvest Management Company and Metalloinvest enterprises, as well as representatives from trade union organisations.
Andrey Varichev, CEO of Management Company Metalloinvest, commented: “We found an opportunity to increase our employees’ income amidst the difficult situation of falling prices for iron ore and steel products worldwide. This increase must become an incentive to increase productivity and motivation among the Company’s employees. Each employee’s contribution is important. Based on the results of the group’s enterprises in the first half of the year, we will consider the possibility of an additional increase to the payroll fund in the course of the year.”
The Social Council also decided to set minimum wage at no lower than 1.8x the cost of living (previously – 1.3x).
It also decided to index by 3% the size of the nominal unit of measure for social benefits provided in 2020. The level of financial support for a number of employee categories is tied to this unit.
The wages levels at Metalloinvest’s enterprises are significantly higher than the monthly average wage in the regions where they operate. In terms of employee income, Metalloinvest enterprises are among the leaders in Russia’s metals and mining industry.
In 2014-2019, the average monthly income of the Company’s employees grew by 43-51%, depending on the enterprise, well above rises in consumer prices.
The Company’s motivation system is tailored towards increasing the efficiency and quality of work – the level of remuneration given to each employee depends on the result of their work. Bonuses are paid according to annual work results, production results, assistance in rationalization activity, operational improvements, compliance with occupational health and safety rules and other factors.
Metalloinvest has one of the best social benefit packages in the industry. Employee healthcare is provided by the Company’s own robust medical facilities, and recreation and treatment tours, including for employees’ children. The Company pays monthly allowances to pensioners and also provides employees with material support in challenging circumstances.
Areas of social support for employees are set out in collective agreements. When changing existing social programmes and introducing new ones, the employer, together with trade union representatives, conducts a comprehensive analysis and develops optimal solutions taking into account the interests of employees and the capabilities of the enterprise.
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