4.5

Human Capital

HR Policy of TVEL FC is implemented in accordance with the Development Strategy of TVEL Fuel Company, and it is intended to ensure efficient use of human resources contributing to the achievement of the Company’s strategic goals.

HR Policy

Main long-term goals of HR Policy:

  • balancing employer and worker interests;
  • development of workers’ consent to effective development of their own professional and managerial capacities;
  • increase of personnel engagement to promote the company’s sustainability;
  • sustained growth of labor efficiency;
  • personnel adhering to corporate values in the course of their work;
  • development of strategically important personnel competencies and skills in order to comply with requirements to the personnel stated by international global companies;
  • engagement of each employee in solving the problems of strategic development and appealing to “collective intelligence”;
  • ensuring social acceptability of the changes made.

GRI G4-11 TVEL Fuel Company hires its employees in strict compliance with the Labor Code of the Russian Federation. The top managers are sorted out of the members of succession pool program.

GRI LA4 All subsidiaries of the Company (except for TVEL JSC) have collective agreements that cover 100% of these subsidiaries’ employees (98% of average headcount). If any considerable changes are introduced in the business, the Company shall notify their employees at least 2 months prior to the effective date of any such changes. This provision is stipulated by labor laws of the Russian Federation and by the Collective Agreement of each subsidiary.

Payments and benefits provided to the employees of TVEL Fuel Company are based on the provisions of the Labor Code of the Russian Federation, the Collective Agreements of the companies, as well as on local regulatory documents concerning social support of the employees, subject to the principles and approaches of the Uniform Industry-Specific Policy of ROSATOM and its organizations.

99.1%
staffing level
1.4%
undesirable employee turnover
5-6
skills per employee
>90%
utilization of employees
>80%
utilization of production workers
43.6
average age of employees
25.2%
young professionals under 35
11
employees per manager
4-5
levels of operations management
3
levels of office management

Estimated average headcount in 2016–2018, persons

22,662
2018
22,695
2017
22,240
2016

Staff Composition

Steady decrease in headcount in 2011–2014 was caused by restructuring processes, centralization of management functions and personnel outsourcing. The ultimate goal of these processes with regard to HR management is to enhance labor efficiency in TVEL FC subsidiaries to match major foreign competitors.

In 2015 TVEL Fuel Company hired 1,478 employees, including TVEL JSC — 50 employees. About 61.9% of the hired employees are men, around 73.7% — persons under 45 years old. Among the hired employees the largest part of the new employees is from Moscow region and the city of Moscow (40.0%), the smallest part — from Krasnoyarsk territory and Irkutsk region (2.1% and 0.8% respectively).

TVEL FC average headcount in 2015, persons

Enterprise Headcount
AECC JSC 1,034
PA ECP JSC 2,065
SGChE JSC 3,740
UEIP JSC 2,261
Total per SSC 9,100
MSZ PJSC 4,211
NCCP JSC 1,544
ChMP JSC 3,127
Total per NFFC 9,089
KMP JSC 1,090
UGCMP LLC 278
Total per NFFC 1,368
VNIINM JSC 990

1. Retirement rate means total dismissals due to any reasons by an employee category/for the whole Company divided by headcount by category/for the whole Company as of the period end × 100.

2. Turnover rate means voluntary dismissals as per employee category / for the whole Company divided by headcount by category/for the whole Company as of the period end × 100.

Key indicators, personsGRI G4-9, G4-10

Indicator 2013 2014 2015 ∆ 2015/2014, % 2016 (plan)
TVEL FC headcount at the year-end 27,162 23,717 22,724 -12.7 -
Average headcount of TVEL FC staff 29,238 25,169 22,527 -13.9 22,240
Candidates and Doctors of Science 312 281 235 -16.4 239
Holders of MBA degree 12 16 15 -6.3 16
Employees that have been employed by TVEL FC more than 5 years 76 81 82 1.7 83

GRI G4-LA1At the end of 2015 2,508 persons terminated their employment. The retirement rate1 by the business regions of the Company varies from 20.4% in Irkutsk region and 19.8% in Moscow region and in the city of Moscow up to 4.1% in Krasnoyarsk territory. The retirement rates vary by gender as well: men — 19%; women — 6%. Overall retirement rate for TVEL Fuel Company is 11.0%. The greatest retirement rate (62%) for the reporting period is registered at the age group 55–64.

Turnover rate2 by the business regions of the Company varies from 6.0% in Moscow and Moscow region up to 0.6% in Sverdlovsk region. Overall personnel turnover rate for TVEL Fuel Company is 1.5%. The most mobile age group (turnover rate is 5.6%) is comprised of employees up to 24 years old; male employees are more mobile than female (3.0% against 1%).

In 2010–2014 due to implementation of the policy in the field general industrial activities the Company managed to create and maintain more than 1,500 workplaces. Moreover, about 3,000 new skilled workplaces are scheduled to appear before 2019.

As of December 31, 2015, TVEL Fuel Company headcount was 22,724 persons. Overall majority of subsidiaries’ employees (over 98%) work under the open-term labor contracts and during normal business hours (40 hours a week). As of the end of 2015 the headcount of employees under civil law contracts, external part-timers and women on maternity and childcare leave was 763 persons.

The Company upholds the principle of equality and tolerates no gender discrimination: male and female employees working in the Company get the same salary, regardless of categories.

Total Staff by Categories at the Year -End, persons

Category 2013 2014 2015 ∆ 2015/2014, %
Average headcount as per consolidated circuit (total), including: 27,162 23,717 22,724 -4.2
Key staff 9,921 8,608 8,169 -5.1
Supporting staff 5,699 4,144 3,798 -8.3
Managers, including: 2,538 1,964 1,881 -4.2
Top Management (General Directors, their Deputies) 96 97 109 12.4
Specialists 8,589 8,717 8,639 -0.9
Employees 317 256 216 -15.6
Indirect labor group 98 28 21 -25.0

The greatest part of the employees is formed by men (62.8%). Average age of employees of the Company is 43.6. The employees under 35 years old comprise 25.2% of total staff.

TVEL Fuel Company mostly hires the local residents, and attracts specialists from other regions only if and when no properly qualified candidates to the vacancy are available at the local labor market.

TVEL FC Total Staff (Headcount) by Age, 2015, persons

TVEL FC Total Top Managers by Age, 2015, persons

Composition of Top Management in TVEL FC Subsidiaries According to Place of Residence in 2015, %

GRI G4-LA3About 1.0% of the Company's average headcount took parental leave in 2015. The majority of them are women (over 92%). Over 90% of the employees, who took parental leave, return to the Company later on, and 76% of them keep working in the Company after 12 months.

Workforce by categories and regions (persons, 2015)

Category Moscow Moscow region Vladimir region The Udmurt Republic Novosibirsk region Sverdlovsk region Tomsk region Krasnoyarsk territory Irkutsk region Total in 2015 Total plan for 2016
Headcount, including: 1,827 4,295 2,481 3,164 1,518 2,656 3,692 2,070 1,021 22,724 22,240
Key staff 26 1,495 966 1,515 582 970 1,731 457 427 8,169 8,270
Supporting staff 243 1,118 493 627 191 246 324 546 10 3,798 3,743
Managers, including: 275 406 188 241 158 180 229 113 91 1,881 1,811
Top Management (General Directors, their Deputies) 16 11 12 10 10 22 10 10 8 109 109
Specialists 1,261 1,272 810 773 572 1,186 1,372 929 464 8,639 8,171
Employees 17 4 11 8 15 71 36 25 29 216 237
Indirect labor group 5 0 13 0 0 3 0 0 0 21 6

Personnel Engagement Rate in TVEL FC

83%
2015
81%
2014
76%
2013

Personnel Engagement

Personnel engagement, employees involvement in business and success of the Company have direct impact on business performance and efficiency. The Company carries out a set of arrangements aimed at increase of personnel engagement, encourages the employees to move from formal performance of obligations as per job description to their activity improvement.

Personnel engagement rate increased in 2015 by 2 percentage points and made 83%. This defined the leading position of TVEL Fuel Company among production divisions of the nuclear industry.

Engagement study is conducted under the unified industrial slogan: “ROSATOM cares about your opinion”. Arrangement plans aimed at increase and retention of personnel engagement are approved and implemented at the annual management meetings on study findings analysis in 12 enterprises of the division. In general, annual surveys allow to estimate the employee satisfaction with work conditions according to 19 factors, as well as to determine the share of employees who:

  • recommend their company as a good employer to their relatives and friends;
  • attempt to make the most of their opportunities while fulfilling their obligations, improve enterprise processes and come up with improving proposals;
  • intend to keep being employed by the Company in future.

Comprehensive efforts within the year research project are made both through local plans of activities implemented by the subsidiaries, and through execution of the unified divisional projects. Thus, in 2015 TVEL Fuel Company accomplished the projects in the following key directions:

  • Career development and employee involvement in enterprise management and development;
  • Remuneration subject to personal contribution to the enterprise economic growth;
  • Remuneration for team progress;
  • Internal competition of small groups1: small groups that show rapid results in the established goals achievement get a higher rating and remuneration.

1. The staff is managed by the small group leader elected by voting from among its members.

Engagement by TVEL FC Subsidiaries Based on Study Findings in 2013–2015, %

Engagement
rate
TVEL FC TVEL JSC AECC JSC NCCP JSC PA ECP JSC ChMP JSC MSZ PJSC SGChE JSC VNIINM JSC KMZ JSC UEIP JSC Tochmash
VPA JSC
UGCMP LLC
2015 83 87 93 75 92 83 80 78 83 91 78 85 66
2014 81 82 74 75 93 84 77 75 89 74 84 88
2013 76 83 76 62 90 74 67 74 62 84 87 82 63

Guided by the values of ROSATOM

NATALYA S.
SOBAKINSKAYA
HR Director
Today the employees of TVEL JSC are characterized by wide interchangeability and knowledge of related professions/operations: each production worker has 5 to 6 professions/skills. As the result, an employee now has significantly greater value to the Fuel Company: the qualification of employees has become so high that it is increasingly difficult to replace them. We highly appreciate our employees’ willingness and readiness to increase their professional level.

What are the current employment standards?

The employment standards have traditionally been very high in the nuclear industry. The high technology and knowledge-intensive industry requires best-qualified personnel. One of the most recent major changes was that process improvement skills are now required from employees in every position. Today, in addition to competently and reliably lead the processes, an employee is expected to be willing to improve personal performance, participate in the enterprises’ development projects and be proactive in pursuing specific improvements...

The Company has always been assigned with ambitious tasks. The technologies and modern equipment alone is not enough to fulfill them. Of equal importance is the overall engagement and teamwork...

In the recent years, ROSATOM State Corporation has applied the engagement management concept. In industry terms, engagement implies that an employee speaks positively of the enterprise, has no desire to get a job at another organization and strives to do more than is required by the job description. The Fuel Company managed to achieve significant progress in increasing the engagement from 58% to 83% within 6 years.

In our opinion, a person may be called engaged when he or she knows and understands the Company’s goals and his/her role in achieving them, has the required resources to contribute to the achievement of the said goals, in particular, knowledge resources. An engaged employee works in what he/she perceives is a team of like-minded people, enjoys support from the manager and colleagues and has a high internal motivation.

In 2015 we applied the new approach to strategic decision making and the methods of arriving at such decisions through strategic sessions across the company, from top-managers to each unit. The new approach is supposed to help align the positions on all the main aspects of the Company’s development, enable each employee to embrace the assigned goals, understand what needs to be done and see what key projects influence the development strategy of the Fuel Company.

At this point, we register a high level (70%) of employee satisfaction with the available training and development opportunities. The Company has made huge investments into human resources. As the result, the employees obtain unique competencies, and the Company gets an impetus for further development. In 2015, a total of 23,000 employees were trained, which is one third more than the 2014 figure. More than RUB 100 mln was invested in the training.

Another essential factor is the satisfaction of employees with their career opportunities. One of the Company’s priorities is to offer its employees an opportunity for further career and professional growth. In 2014 50% of senior managers in the Fuel Company were appointed from the succession pool, and in 2015 the figure increased to 60%, which is in line with the global best practices.

As to specific victories, I would like to mention was taking control over the Career Opportunities factor, which is considered to be one of the most unmanageable factors. In the recent years the satisfaction with this factor has increased from 24% to 65%. One of the reasons is that the Fuel Company has introduced the institution of small group leaders as an important element of operations management. Today, being a small group leader is an honor that many people try to achieve.

What skills and qualities are most important in the HR function, in terms of efficiency?

First of all, as an HR officer, you should be able to predict the business needs. It is not always clear how the technologies and the processes may change in the future, and what new products may appear. At the same time, we must be prepared to provide the business with the relevantly trained employees right at the moment when they are needed. Another factor of assessing the effectiveness of the HR function is labor efficiency. The world’s top high-technology companies achieve superior financial results with a small team of highly trained professionals. The Company’s team consists of highly trained professionals, therefore one of the priorities is to develop new areas and new products and create high tech jobs in order to fully realize the potential of the employees. At the same time, every product has to be cost-effective and must contribute to the sustainability of the Fuel Company’s business. If we come produce good products but our labor efficiency is low, we’ll have no future in the market. And a third essential factor is personnel engagement.

740
Motivation and reward policy in TVEL Fuel Company is aimed at maintenance of salary competitiveness. The salary increase and indexation amounted RUB 740 mln in the reporting period.

Motivation and Reward

In 2015 the average salary level in TVEL Fuel Company, TVEL JSC not included, made RUB 73,223, which is 10.8% higher than the previous year average salary rate.

GRI G4-EC5 Ratio of standard entry level wage of TVEL FC subsidiaries to minimum wage shall vary from 1 to 1.5 (Moscow and Moscow region, Novosibirsk region and Tomsk region), and 2 to 2.5 (Krasnoyarsk territory).

Arrangements 2015:

  • salary indexation in all subsidiaries, except for TVEL JSC (indexation — over 6.7%, in certain subsidiaries selectively as per several lower grades — up to 15%);
  • increase of annual premium rate in certain subsidiaries (increase by per cent corresponding to salary indexation per cent);
  • selective reconsideration of the employees’ personal additional incentive following the results of the annual assessment;
  • review of remuneration system and benefits efficiency in the Company’s enterprises; collection, of the employees’ proposals for alteration of salary disclosure documents.

Arrangements planned for 2016:

  • payment of up to 50% of annual premium in advance (in order to increase the employees’ social security level due to volatile economic environment and rise in inflation);
  • salary indexation in all subsidiaries of TVEL Fuel Company, except for TVEL JSC (scheduled indexation % — not less than consumer price index, scheduled indexation term — September 1, 2016);
  • there might be increase of annual premium rate in certain enterprises (increase by per cent corresponding to salary indexation per cent);
  • selective reconsideration of the employees’ personal additional incentive following the results of the annual assessment;
  • updating of local salary and benefits disclosure documents to improve efficiency (reconsideration of annual premium calculation, approaches to PAI identification following the results of the assessment, etc.);
  • elaboration and implementation of measures aimed at increase of variable part of total remuneration depending on personal and collective labor efficiency.

Average Wage in TVEL FC Subsidiaries, rub.

Ratios of average wage in the subsidiaries of TVEL Fuel Company compared to average wage in regions of operations*

Region 2013 2014 2015
Moscow 2.5 2.6 2.6
Moscow region 1.6 1.7 1.7
Vladimir region 1.5 1.5 1.6
The Udmurt Republic 1.8 1.8 1.8
Novosibirsk region 2.1 2.1 2.2
Sverdlovsk region 2.2 2.4 2.3
Tomsk region 1.8 1.9 2.0
Krasnoyarsk territory 2.3 2.6 2.4
Irkutsk region 2.2 2.4 2.4

* Including TVEL JSC.

Basic KPI for TVEL FC Management

Basic KPI for Top Management Basic KPI for Vice-President Basic KPI for Directors of Subsidiaries:
  • Lost time injury frequency rate (LTIFR);
  • No industry-based INES incidents of above level 2;
  • Labor efficiency;
  • Proceeds from sales of new products;
  • Semi-fixed costs cutting, etc.
  • Cost of products manufacture;
  • Operating efficiency;
  • Labor efficiency;
  • Proceeds from sales and foreign orders portfolio, as well as on new products of the Company.
  • Investment activity integrating efficiency indicator;
  • Lost time injury frequency rate (LTIFR);
  • Fulfilment of government contracts, investment projects;
  • Full cost of unit sold.

GRI G4-51, G4-52 KPI System for Top Executive Management and Junior Management

Business performance management system applied by TVEL Fuel Company is based on generating of KPI list ensuring comprehensive development of division for the Company’s top management. Maximum preference is given to such spheres as nuclear, radiation, industrial safety and ecology; gain of operational efficiency; increase of nuclear products and industrial operation markets share, where the Company improves its performance by introduction of new products.

GRI G4-54, G4-55 Remuneration consultants are not engaged in determining of the remuneration rate. Remuneration rate must be approved by ROSATOM.

In 2015 the ratio of total annual remuneration of the President of TVEL JSC to average annual remuneration of all TVEL Fuel Company employees (except for remuneration of the President) was 55.7.

In 2015 increase in total annual remuneration of the President of TVEL JSC as compared to average annual increase in remuneration of all employees (except for remuneration of the President) was 18.5%1.

1. Average annual remuneration of all TVEL FC employees was calculated including TVEL JSC.

Non-Material Benefits

System of non-material benefits for the employees of TVEL Fuel Company is aimed to encourage professional growth, increase in efficiency and performance, attainment of the goals and the best final results of activities, enhancement of the work quality and arrangement of conditions for creative activity.

Achievements of the employees of the Company were marked with state awards, awards of ROSATOM and TVEL JSC in accordance with the Uniform Industry-Specific Award Policy.

During the year 2015 in celebration of commemorative days and anniversaries more than 2,900 workers and veterans of TVEL FC received rewards and bonuses for work achievements, contribution to development of enterprises, the Fuel Company and nuclear industry, in particular:

  • national awards — 2 employees;
  • awards of ROSATOM — more than 1,700 persons, including merit badges and anniversary medals “70 Years of Nuclear Industry in Russia” — 338 workers and veterans, labor merit badges “Veteran of Nuclear Power and Industry” — 451 workers;
  • awards of TVEL JSC — more than 900 persons.

TVEL JSC staff was awarded with the Certificate of Merit by ROSATOM for conscientious work, significant contribution to development of the nuclear industry and high achievements in the field of industrial provision with fuel of nuclear power industry.

Remuneration scheme for President, Vice Presidents of TVEL JSC, Directors General of the companies included into the management system of TVEL Fuel Company

HR Development and Training

Traditionally, HR development and training is in the focus, and it is one of the top priorities of HR policy of TVEL Fuel Company.

The development and training mission is focused on creation of an environment for employees to achieve the business goals while increasing the level of their professionalism, corporate culture and personnel management technologies.

The purpose of HR development program is to support business priorities of ROSATOM.

Priority development programs at the Company’s enterprises:

  • Program on Succession Pool Formation and Development: “ROSATOM Heritage”, “ROSATOM Capital” and “ROSATOM Talents”;
  • creation of teaching resource centers for further training of the personnel to manage the improvements;
  • development of the Institute of Internal coaches;
  • development of professional societies, as the points of growth for the TC leadership in the market, technology, efficiency growth rates;
  • Safety culture development.

Scope of training per one employee by category and gender in the reporting year

Employees’ satisfaction with the possibilities of training and development ensured by TVEL FC, %

71%
2015
63%
2014
78%
2013
TVEL FC founded the Institute of Internal Coaches in 2011. The Internal Coaches are the Company’s employees who provide on-the-job training to their colleagues. To become an Internal Coach, the employee needs to pass the selection procedure, take additional training and be properly certified. By the end of 2015, 84 employees of TVEL FC were qualified as the Internal Coaches (in 2014 — 73 employees).

Personnel Training

According to HR Development and Training Provisions, the Company’s subsidiaries regularly implement training programs to enhance competencies of their managers, as well as ordinary workers.

GRI G4-LA9, LA10 Total number of TVEL FC employees, who underwent training during the reporting year made 23,789 persons (which is 30% more than 2014). Average length of training in 2015 for each employee of the Company was 51 hours.

Investments into employees training were equal to RUB 105 mln in 2015.

In 2015 the number of the employees satisfied with opportunities of training and development in TVEL Fuel Company increased by 8 pp. (up to 71%).

GRI G4-HR7 Total scope of training in policies and procedures related to human rights amounted to three hours. The training included familiarization with the following documents:

  • corporate code of conduct;
  • provision on trial period upon hiring;
  • Order “On Organization and Conduct of Medical Examination of Employees”;
  • provision on salaries and benefits;
  • provision on voluntary health insurance;
  • labor safety induction program.

This kind of training is mandatory for each employee, which means 100% coverage of the staff.

Educational events that contribute to development of skills are implemented by efforts of the internal coaches, as well as the external providers of training services.

There is no program for assistance on transitioning to new work/new mode of living for the retired or dismissed employees.

Key priorities for 2015 in the sphere of HR training and development:

  • personnel recruitment and development;
  • efficiency management;
  • culture management;
  • HR processes management.

Formation and development of succession pool and succession plans

TVEL FC pays great attention to development of succession pool and training of managers.

Training in this sphere is built on the following principles:

  • Correlation with business strategy and industry development;
  • Focus on the most advanced international leadership development practices;
  • Analysis of the uniform industry-specific development system for managers.
84
internal coaches
on improvements
9,000
people trained
10
trainings on
improvement tools
12
packages of measures on managing the improvements
4
Process Factories
4
Improvement Weeks
80%
of employees file SFI
18%
reduction of training
costs per employee

Leader Forums are unique practices for Russia

Engineer Leader Forum is a proven communicative format for TVEL Fuel Company that allows solving several problems at once:

  • involve the engineering staff in the process of continuous development of TVEL FC enterprises;
  • improve the skills and enhance the intellectual potential of the Company;
  • develop motivation for professional growth;
  • use off-line engineering ideas generated during “brainstorming” and searching for optimal solutions to real industrial problems based on TRIZ methodology (Theory of Inventive Problem Solving).
Two global objectives pursued by Leader Forums are solutions to technical problems of a particular enterprise and training the engineers to apply TRIZ tools. Leader Forum reveals those who understood and mastered TRIZ tools better than others. They will further take part in the training program of specialists on TRIZ tools, i.e. they will become experts themselves and will train new staff in order to have new TRIZ specialists within ROSATOM.

Leadership Forums: Geography

Leadership Forums were held in 2015
engineers were trained in the use of TIPS
employees were included in a mobile team for solving complicated technical problems
solutions are currently being implemented
solutions for 36
production tasks
RUB mln total economic effect


Employees’ satisfaction with the carrier possibilities ensured by TVEL FC

64%
2015
43%
2014
34%
2013

2015 was the year of obtaining the approvals on the regulatory documents for formation of succession plans, formation and development of managerial personnel reserve (MPS):

  • Uniform Industry-Specific Procedure for Career Planning and Succession to Managerial Positions in ROSATOM and its organizations;
  • Uniform Industry-Specific Guidelines to Create and Develop Managerial Succession Pool in ROSATOM and its organizations.

The succession planning and MPS formation are based on the results of Annual Performance Assessment “RECORD”. The key instrument to formulate and approve the succession plans for the Company’s managerial positions shall be the review of personnel capacity in the form of round tables held at all levels of management. The decision to include an employee in the MPS list is taken following the results of an independent evaluation, which contains the assessment of potential, motivation and compliance with corporate values. An employee may be included into the succession plans on the basis of his/her manager’s decision taken with due regard for his/her achievements in the past period.

Preparation of reservists of senior, middle and entry-level managers to career development is carried out in accordance with industry-specific development MPS programs “ROSATOM Assets”, “ROSATOM Capital” and “ROSATOM Talents”. The development programs are focused on raising the level of corporate and managerial competencies of the MPS participants.

Personnel Efficiency Assessment

In 2015 the Company continued to successfully apply the annual personnel efficiency ssessment system.

Altogether about 14,500 men and 8,000 women were covered by the assessment.

Professional Competitions

Every year TVEL Fuel Company organizes professional contests where workers of most common trades compete for “The Best in Trade” Award. The competition covers such professions as turner, fitter for instrumentation and automation, electric and gas welder, condensation-evaporation plant operator, laboratory chemist, machine and mechanical works supervisor, dosimetrist and others.

In October 2015 the following occupational competitions took place:

  • laboratory chemist (ChMP JSC);
  • supervisor (MSZ PJSC)
  • locksmith for maintenance gas separation equipment (UEIP JSC);
  • electrician for electrical equipment maintenance and repair (PA ECP JSC);

66 workers from 14 enterprises of TVEL Fuel Company took part in competitions.

On July 30–31, 2015 at SGChE JSC and Pribor-Service LLC there were held contests of finalists of All-Russian Professional Competition "The Best in Trade" in nominated category "The Best Dosimetrist" and the XIV Branch Professional Efficiency Contest among the workers of the organizations of ROSATOM on professions "dosimetrist" and "fitter for instrumentation and automation".

33 dosimetrists from 22 constituent entities of the Russian Federation and 27 fitters for instrumentation and automation, including dosimetrists from 8 enterprises and fitters from 6 enterprises of the Company took part in the contests.

The employees of the Company's enterprises took the three top awards (1, 2 and 3 places) in All-Russian Professional Competition and Branch Professional Efficiency Contest in nominated category "The Best Dosimetrist", as well as 1 and 2 places in nomination of "Fitter for Instrumentation and Automation" among young and experienced workers.

From October 30, 2015 till November 3, 2015 Ekaterinburg hosted the WorldSkills National Blue-Collar Occupations Championship Hi-Tech. 220 young specialists from 100 leading Russian companies of 30 regions of Russia, as well as foreign specialists participated in the Championship. Workers and experts of the Company's enterprises appeared with the team of ROSATOM. The employee from MSZ PJSC took the first prize in nominated category "CAD Engineering Graphics".

In the period from July to December 2015 the contest was held for the Best Solution/Development in 7 categories:

  • Best Engineering and Process Solution;
  • Best Design Work;
  • Best Development of New Production/Best Solution for Reconstruction and Building;
  • Best Work in the Sphere of Management;
  • Best Business Solution for Development of Entrepreneurial Activity in CATU;
  • Best Solution for Environmental Safety.
  • Best Communication Program (since 2015).

There were nominated the works on creation and application of innovative technologies, design projects, environmental activity, financial-economical and HR management, business efficiency enhancement, as well as communication programs.

74 corporate author teams took part in the contest. Following the results of the applications processing, 23 corporate author teams were awarded (95 laureates).

Interaction with Educational Institutions

Recruitment of promising young people is one of the top priorities in HR policy of TVEL Fuel Company. By hiring young specialists, the Company intends to preserve and strengthen its position in the sphere of science and advanced technologies in the years ahead.

Cooperation with educational institutions is carried out on the basis of the communication plan on work with universities and graduates which is continuously updated on an annual basis.

With a view of occupational guidance for schoolchildren the Company’s enterprises organize excursions, meetings with young specialists, various information and educational activities.

TVEL FC Succession Pool and Succession Plans

Indicator 2013 2014 2015 2016 (plan)
Number of employees included to succession pool 153 151 215 237
Number of employees included to succession pool and running for major posts 153 106 139 103
Number of employees included to succession pool and transferred to major posts 26 50 89 76

Elements of annual personnel efficiency assessment system applied in TVEL FC

Assessment type Target group Results of the reporting period

“RECORD” assessment

Managers, specialists, employees (MSE)

98% of MSE headcount was assessed; this figure corresponds to target indicators. All TVEL FC subsidiaries took part in the assessment.

Following the results of assessment there were made recommendations concerning alteration of personal additional incentives, choice of training program and recruitment of employees to succession pool

Corporate employee assessment system by professional and personal competences pursuant to corporate values

Staff

95.8% of staff headcount was assessed.

Following the results of assessment there were made recommendations concerning reconsideration of personal additional incentives. The average grade for professional competences grew by 2% as compared to the previous year.

In 2015 4.2% of employees were not covered by the assessment. These are women, who were on parental leave, the employees, who worked at the Company for less than 3 months, the employees, who were withdrawn from subsidiaries under the restructuring processes

657
people will be offered an internship in 2016

The major areas of cooperation with educational establishments of higher and secondary education are the following:

1. Long-term planning of demand for specialists in terms of industry-specific training (for 2016–2026).

2. Ensuring the awareness among students and graduates on possibilities of professional growth in the enterprises of TVEL Fuel Company, as well as TVEL FC and ROSATOM brand promotion.

3. Arrangement of educational and on-the-job trainings at the premises of the Company's enterprises.

4. Implementation of joint educational programs, special courses within the sphere of main departments:

  • Branch of the 9th Department of MEPhI NRNU and complex branch of the Department of D.I. Mendeleev University of Chemical Technology of Russia and M.V. Lomonosov Moscow State University of Fine Chemical Technologies at VNIINM JSC;
  • Specialized Department of “Design and Engineering Support of Mechanical Facilities” of Stoletovykh Vladimir State University at Tochmash VPA JSC”;
  • Specialized Department of Seversk Institute of Technology of MEPhI NRNU “Radiochemistry” at the premises of SGChE JSC.

5. Running of special competitions for recruiting young specialists with advanced capabilities (Young Professionals Tournament “TeMP”).

In 2015 the enterprises of TVEL Fuel Company offered a training study course for 619 students of higher educational institutions and vocational secondary schools. In 2016 the Company expects 657 students to take their practical training.

Over the reporting period the Company employed 102 graduates of the higher educational institutions and vocational secondary schools, 6 of which took target preparation classes for employment by TVEL Fuel Company.

Staff Recruitment and Assessment

Implementation of Major Corporate Social Programs in 2015

Corporate social program Funds allocated under the program in 2015, RUB mln Basic facts
Voluntary health insurance (VHI) 158.0 99% of TVEL FC employees are insured under VHI policy
Accident and health insurance 10.2 86% of TVEL FC employees are covered by accident and health insurance
Sanitary and resort treatment, recreation of children 152.0 3,711 employees got vouchers to sanitary and rehabilitation resorts in 2015, where 1,065 are persons working in harmful conditions and 1,783 are children Maximum amount of each voucher in 2015 was equal to RUB 50,400 for a 21-days leave
Assistance in improvement of housing conditions 95.1 739 employees have improved their housing conditions under the program, including 383 young specialists under 35
Benefits to employees in difficult situations 58.4 The amount of benefits does not depend on the official position. Types and criteria of benefits provision are unified
Sports and cultural events 115.4 The enterprises of TVEL FC held more than 922 corporate and sports competitions in 2015. Total number of participants — over 18,500 of workers and members of their families
Assistance to non-working pensioners 494.4 There are over 40,000 non-working pensioners registered in the organizations (personnel service, veterans’ council, trade unions) of TVEL Fuel Company. Average amount of assistance per 1 pensioner is RUB 12,400 per year. 1,520 pensioners got vouchers to sanitary resorts
Non-state pension provision (NPO) 151.0 By the end of 2015, 16% of TVEL FC workers were involved in the non-state pension program; the highest rate was achieved at PA ECP JSC (33.7%), UEIP JSC (31.1%) and MSZ PJSC (28.1%). The major part of pension accruals under the NPO program was accumulated at Non-State Pension Fund “Atomgarant”
1,340.5

RUB mln

expenditure on social programs

GRI G4-LA2 Social Programs Implementation

In addition to mandatory social guarantees, benefits and privileges envisaged by the labor laws, the Company’s subsidiaries developed for the employees working on a full-time basis the corporate social programs such as:

  • non-state pension provision;
  • voluntary health and industrial injuries insurance;
  • assistance in housing programs;
  • sanitary and resort treatment and recreation of employees and their children;
  • provision of meals to employees;
  • assistance to non-working pensioners;
  • organization of sports and cultural events;
  • benefits to employees in difficult situations;

TVEL FC social programs represent a strong motivating factor. According to personnel engagement surveys, up to 65% of employees find their social package satisfactory.

Total amount spent by the Company on its social programs in 2014 is RUB 1,340.5 mln or RUB 59,000 per worker.

GRI G4-HR4, G4-LA8Interaction with Trade Unions

Primary trade unions function in all enterprises of TVEL Fuel Company. Each employee may join a trade union that represents the interests of the workers. Management of ROSATOM and TVEL FC supports self-organization of the employees. The share of employees being members of trade unions reaches 98% in some subsidiaries.

The Fuel Company interacts with trade unions under the social partnership program. The management acknowledges the important role of trade union in implementation of corporate social programs and in employees’ awareness rising. Social stability at the enterprises and in the cities of presence of TVEL Fuel Company is the result of cooperation between TVEL JSC and the Russian Union of Nuclear Power and Industry Workers (RUNPIW), subsidiaries of the Company and primary trade unions, veteran councils and other workers’ associations.

On December 17, 2014 in Moscow the Industrial Agreement on Nuclear Energy, Industry and Science for 2015–2017 was signed between ROSATOM, All-Russian Industrial Association of Employers “Employers’ Association for Nuclear Energy, Industry and Science of Russia” and RUNPIW. This agreement stipulates general concept of social and labor relations regulation in the nuclear industry, including mutual commitments of the parties concerning remuneration, labor conditions and safety, work and rest schedules, employment, social guarantees, benefits and privileges for employees. Pursuant to the Industrial Agreement and Collective Agreements the social programs are applicable to all subsidiary companies’ employees, whether an employee is a member of any trade union or not.

Association of primary trade union organizations of the Company's subsidiaries operates in TVEL Fuel Company. Management of TVEL JSC and RUNPIW holds regular meetings with participation of the chairmen of primary trade unions and HR directors (3 meetings were held in 2015), as well as the meetings of the Company's expert working group and the trade union (5 meetings were held in 2015).

Interaction with the branch trade union plays an important role. There is certain improvement happening from year to year in the institution of public representatives responsible for labor protection of labor - people from the workforce, who in addition to their main duties perform supervisory functions on labor protection, record violations of labor protection requirements, submit proposals for elimination of violations and improve working conditions, participate in days of labor protection, etc. Within the recent years the enterprises of TVEL Fuel Company organized the works and implemented the system to assess the work of public representatives. Following the results of such assessment the Company organized moral and material incentives for their activities.

0.14
LTIFR in TVEL FC in 2015

Occupational Health and Safety

Health and Safety Management System

The main directions, directives and commitments in the sphere of safety and health of the Company’s workers are recorded in the TVEL JSC Health and Labor Protection Policy.

Responsibilities of managers, professionals and other labor protection workers are regulated by TVEL JSC Health and Safety Management System (HS MS). Local regulatory documents on labor protection include instructions, lists, logs. The company organizes trainings and assessment of knowledge, inspections, briefings, including for representatives of contracting organizations.

On an annual basis TVEL JSC holds meetings of technical directors and managers for nuclear and radiation safety, occupational safety and environmental protection. During such meetings participants exchange their thoughts, share best practices with the colleagues and report on the measures taken to address the problems. All participants are notified about the occurred accidents, causes of such accidents and the adopted measures of organizational and technical nature. Following the meeting results the participants adopt the respective decision including the instructions for further reduction of accidents and the measures to improve working conditions. In 2015, within the framework of the meeting a special attention was paid to assessment of working conditions, including the issue of benefits and compensation.

The complex and special-purpose inspections on security assurance are held and in the course of such inspections the functioning of OSH management system and implementation of measures is assessed. The inspections also cover enterprises’ subsidiaries and contracting organizations rendering their services in the territory of the enterprises included into the management system of TVEL Fuel Company.

Health and Safety Management in TVEL Fuel Company

TVEL JSC and AEKhK JSC were announced as winners in “Occupational Safety and Health Management” at the Russian National Competition “Russian Business Leaders: Dynamics and Responsibility 2015”, organized by the Russian Union of Industrialists and Entrepreneurs.

System-based application of the guiding principles of the Policy, being the uniform methodology for identification and assessment of occupational risks, allows the Company to reduce the impact of harmful and hazardous production factors in the workplace, to allocate targeted funds to solve the most important labor protection problems. Priority goals and objectives aimed at reducing occupational risks are an integral part of the planning process; they are included in Occupational Safety and Health Objective Achievement Program. The Program is updated annually and it includes tasks and measure to improve the activities in the sphere of occupational safety with the implementation of permanent control.

GRI G4-LA5, G4-LA8 In the subsidiaries of TVEL JSC the Occupational Safety and Security Tripartite Committees, comprising the representatives of management, workers and unions, were established (such committees cover 97% of the total number of TVEL Fuel Company’s workers).

Owing to preventive measures in the sphere of labor protection during the period 2010–2014, TVEL Fuel Company managed to uphold the downward industrial injuries tendency at the enterprises included into the management system of TVEL Fuel Company.

Employees satisfaction with working conditions

84%
2015
74%
2014
72%
2013

Dynamics of the indicators on occupational
health and industrial safety in TVEL FC* GRI G4-LA6

Indicator 2013 2014 2015
Industrial Injuries Frequency Rate (IIFR)** 0.27 0.12 0.23
Injury Rate (IR)*** 0.03 0.01 0.03
Occupational Diseases Rate (ODR)**** 0.01 0.00 0.00
Absentee Rate (AR)***** 5,956 5,527 4,060
Lost Day Rate (LDR)****** 1.50 0.11 1.90

* Data on CFR-3 contour.

** Accidents per 1,000 employees per year.

*** IR = (total number of injuries / total hours worked) x 200,000

**** ODR = (total occupational diseases) / total hours worked over the same period) х 200,000

***** AR = (total days lost (absence due to disability of any nature) / total days worked over the same period) х 200,000.

****** LDR = (total days lost due to injuries / total hours worked over the same period) х 200,000.

Safety is a shared responsibility

КKIRILL G.
BOCHAROV
Director of the Nuclear, Radiation, Industrial Safety and Environmental Protection Department
Occupational health and safety, improving working conditions, ensuring nuclear, radiation, industrial security and environmental protection have always been top priorities of TVEL JSC and the companies included in the management system of the Fuel Company in carrying out the processes that support the production. Safety is a shared responsibility.

By implementing the measures aimed at improving the working conditions and ensuring occupational health and safety in the Fuel Company, we have managed to maintain the downward trend in industrial injury rates in the recent years. Presently, a key performance indicator known as LTIFR (lost time injury frequency rate) is applied to the accountable managers of TVEL JSC and entities included in the management system of the Fuel Company. The indicator is calculated as the number injuries divided by total hours worked in the reporting year (hours) and rated as 1 mln man hours. The LTIFR indicator was introduced across the industry to enable benchmarking against global best practices. For example, LTIFR of top foreign companies amounts to 0.5, while the industry level for ROSATOM State Corporation is around 0.4. To encourage responsible behavior and reduce injury rates not only in the subsidiaries, but also in organizations formed as the result of restructuring and optimization, it was decided to include the injuries that took place in the subsidiaries of the enterprises in the indicators for the entire Fuel Company starting from 2015. In 2015 the injury rates further improved as compared to 2014, if we compare the figures related to the same scope of reporting.

The effectiveness of activities aimed at ensuring nuclear and radiation safety in the companies included in the management system of the Fuel Company has been proved by the absence of events of INES (International Nuclear and Radiological Event Scale) level 2 or more, and personnel radiation exposure in dozes exceeding the irradiation dose limits specified in the regulatory documents. Effective average annual irradiation doses and occupational collective dose are reducing and are currently lower than the industry average.

TVEL JSC makes every effort to meet global best practices. The Fuel Company has introduced a corporate integrated system for managing quality, environmental safety, operational health and safety and energy in line with the international standards ISO 9001, ISO 14001, BS OHSAS 18001, ISO 50001 and the GR-R-3 standard of the IAEA. Today, the Fuel Company is faced with quite ambitious tasks to implement the new versions of the ISO 9001:2015 and ISO 14001:2015 standards and to develop the safety culture as an element of the integrated management system of the Fuel Company.



For managers responsible for cooperation with contracting organizations there was introduced the new KPI in 2015, “Absence of falls from height”, which is aimed at encouraging the actions on prevention of falls from height by workers of TVEL Fuel Company and of the contracting organizations.

In 2015 the industrial injury rate as compared to 2014 increased due to the fact that starting from 2015 the calculation of the injury rate includes also injury cases happening not only in the CFR 3 enterprises, but also in their subsidiaries (CFR 4). CFR 3 and CFR 4 comprise 71 organizations in total.

In 2015 one person from contracting organizations was injured in the production (MC TechService LLC).

Most industrial injuries occurred due to organizational faults, such as failure of managers and specialists to ensure labor safety in accordance with the requirements of the regulating documents, as well as failure of the injured persons to observe labor and production discipline, labor protection rules and regulations.

There occurred no mass accidents and emergencies at hazardous facilities.

Registration of accidents and generation of reports is carried out on the basis of the following regulatory documents:

  • Labor Code of the Russian Federation (Articles 227-231);
  • Provisions on Specifics of Investigation of Industrial Accidents in Certain Sectors and Organizations (Appendix No. 2 to the Decree of the Ministry of Labor and Social Development of the Russian Federation No. 73 dated November 24, 2002).

Within the Occupational Safety and Health Objective Achievement Program for 2015 the following actions were fulfilled: technology and equipment modernization, improvements in working conditions, awareness and competence of personnel, development and improvements of the safety culture focusing on reduction of injuries.

The results of occupational hazards evaluation outlined the priority goals and objectives for operational health and safety to be included into the Program 2016.

On February 08, 2015 the molder-press operator of research and technological laboratory in Chemical-Metallurgical Plant of SGChE OJSC fulfilled transportation of a reservoir of 8.5 litres. In carrying out this work depressurization happened to the reservoir and the contents being transported was set on fire. The worker suffered body burns of varying degrees. The injured person received required medical care.

Following this accident there was held an investigation with elaboration of compensatory measures, as well as unscheduled inspections were carried out in the enterprises of TVEL Fuel Company, including technological processes review for safety.

SGChE JSC fulfilled all its obligations in the event of an accident. In addition, the company rendered financial assistance to the injured and his family in order to ensure the treatment. At the end of 2015 the employee returned to work.

Industrial injuries at TVEL FC enterprises, persos*

* Data for 2015 are given on CFR-4 contour.

Average industrial injuries frequency rate (IIFR) in TVEL FC subsidiaries**

** Accidents per 1,000 employees per year.

In 2015 the enterprises of TVEL Fuel Company elaborated action plans to improve the working conditions and safety taking into account the General (Combined) Action Plan for the Prevention of Accidents. The general plan was prepared by TVEL JSC on the basis of the analysis of the main causes of injuries for the period 2014 — beginning 2015 and it provided measures to equipment maintenance, storage organization, training and admission to independent work, documentation. Action plans monitoring in the enterprises was done on a quarterly basis. Following the results 2015 the actions were fulfilled with due account of the Industrial Agreement at the level exceeding 0.5% of production costs.

The main task for 2015 was also a special assessment of the working conditions (SAWC), the implementation of which will continue in 2016. The annual industrial meeting is scheduled for September 2016, in the framework of which there will be examined the SAWC results and proposals for the future.

In each TVEL Fuel Company’s organization, operating hazardous production facilities, there were adopted industrial safety measures within the year 2015. The basic industrial safety measures include the following: industrial safety expertise, making the schedules and executing maintenance of technical devices, buildings and structures of hazardous industrial facilities, ensuring functionality of the production control and supervision. Implementation of such measures allowed reducing volumes of hazardous chemicals, thus lowering the hazard class of the production facilities.

No violations of safety parameters or limits of the effective and equivalent doses set by the nuclear and radiation safety regulations were registered at the subsidiaries of the Company in 2015.

All production enterprises of the Fuel Company operate within the approved effective dose limits applicable to the personnel, no Group A personnel is available (individuals exposed to the effective dose of 100+ mSv and more1 over a period of 5 successive years, or effective dose of 50+mSv and more during any one year).

The following limits of the efficient dose are set in accordance with the Radiation Safety Standards 99/2009: Group A personnel — 20 mSv a year (on the average) over any 5 successive years, but not more than 50 mSv a year; population — 1 mSv a year (on the average) over any 5 successive years, but not more than 5 mSv a year.

Group A Personnel Distribution by Individual Irradiation Dose in 2014, %

Indicator 2013 2014 2015
up to 1 mSv 61.1 (6,301 persons) 60.6 (5,835 persons) 61.2 (5,667 persons)
1–2 mSv 23.7 (2,446 persons) 21.1 (2,033 persons) 21.2 (1,963 persons)
2–5 mSv 11.6 (1,197 persons) 12.9 (1,241 persons) 13.4 (1,238 persons)
5–20 mSv 3.6 (377 persons) 5.4 (524 persons) 4.2 (391 persons)

РGroup A personnel distribution by individual irradiation dose in 2015, %

Average annual effective dose, mSv

Maximum effective dose for personnel, mSv

In 2014 the Department of Nuclear, Radiation, Industrial and Environmental Safety of TVEL JSC together with the Inspectorate for Control over Safety of Nuclear and Radiation Hazard Facilities of TVEL JSC carried out 16 inspections, including 3 unscheduled inspections by the orders of the TVEL JSC Management. The inspections revealed 532 violations (497 in 2014).

For the purposes of prevention and mitigation of the impact of hazardous and harmful production factors during the operations in hazardous and harmful conditions, the workers are provided with special and properly certified clothing, footwear and individual protection means for free. Average cost of individual protection equipment per each worker exposed to hazardous or harmful labor conditions in 2015 amounted to RUB 11,400.

In accordance with provisions of the federal laws, TVEL Fuel Company organizes regular medical examination of its workers involved in operations with hazardous and harmful factors. Workers involved in operations in harmful conditions are entitled to privileges and bonuses in accordance with applicable laws of the Russian Federation and the “List of Occupations and Positions of Workers and MSE Entitled to the Early Retirement and Benefits for Working in Unfavorable Labor Conditions”, including: medical and preventive meals, compensations, extra leaves, etc.

In 2015 the enterprises of TVEL Fuel Company:

The subsidiaries of TVEL Fuel Company implement programs of voluntary health insurance, accidents and sickness insurance, and health resort treatment.

­>180
The investments into improvement of working conditions and occupational safety of the workers were equal to more than RUB 180 mln in 2015.

Industrial sites of the Company’s subsidiaries are subject to regular control of the content of harmful chemicals in waste water, emissions from ventilation systems, radiation and chemical status monitoring, organization and performance of all kinds of supervision in accordance with the production control programs.

A special assessment of working conditions serves to carry out the assessment of conditions and labor safety at the work places, while determining the extent of deviation from the parameters of the production environment and work process; following the results of such assessment the arrangements are scheduled for improvement of the labor conditions.

Structure of revealed violations, %

All subsidiaries provide regular labor safety training to their workers in accordance with GOST 12.0.004-90 and fire safety training in accordance with the Federal Law No. 69-FZ "On Fire Safety", as well as all types of briefings and tests with respect to the above mentioned spheres. The Company takes preventive measures to mitigate industrial injuries and occupational illness.

In 2015 each employee of the Company involved in functioning and maintenance of nuclear and radiation-hazard facilities took on the average 58 hours of training in standards of nuclear and radiation safety.

Information about training of TVEL FC employees involved in functioning and maintenance of nuclear and radiation-hazard facilities in NRS Standards in 2015, persons

Enterprise Total hours of training Average training hours per employee
TVEL JSC 196 38
VNIINM JSC 520 70
KMZ PJSC 390 75
SGChE JSC 8,201 71
NCCP JSC 1,916 68
ChMP JSC 950 65
PA ECP JSC 6,078 72
MSZ PJSC 1,901 73
UGCMP LLC 830 42
AECC JSC 1,450 68
UEIP JSC 2,867 24
UralPripor LLC 107 6
Total in TVEL FC 25,406 58

The Company spent grand total of RUB 1.2 bln or RUB 56.1 thous. per each employee on labor protection arrangements in 2015.