EVRAZ

General Strategy

EVRAZ’s reputation is synonymous with the calibre of its employees. We have always taken the view that the Company’s principal asset lies in its people. We respect our employees and place a strong emphasis on the safety of their working environments, encourage educational development and contribute towards the well-being of their local communities.
The number of Group employees totalled approximately 110,000 as of 31 December 2010.

Employees’ Social Programmes

In 2010 EVRAZ implemented a range of social programmes for employees that in many instances, also extended to their families. The investment in social programmes in respect of employees in Russia exceeded US$53 million (RUB1.5 billion).

These included:  

• Employee insurance plans encompassing life, accident and occupational illness insurance and the co‑financing of a voluntary medical insurance programme;
• Recreational activities for employees and their families;
• Support of health programmes (sporting events, healthy eating plans, etc.);
• Support of youth, veteran and women’s organisations;
• Co-financing of employee pension plans; and
• Mortgage schemes.

In North America, employer of choice initiatives were introduced at all our North American facilities. These included the development of local educational projects for the benefit of prospective professional employees, the implementation of apprenticeship programmes and the expansion of service awards and employee recognition programmes. Human Resource specialists at all the North American EVRAZ facilities regularly participate in career fairs to attract new talent and promote the steel industry to students.

The focus on employee safety is very prominent at EVRAZ’s North American facilities where each site has safety committees to oversee a variety of education, prevention and awareness programmes.

At EVRAZ Highveld Steel a Wellness Committee addresses health and social issues among employees including HIV/Aids and tuberculoses. Employees and their families receive free HIV/Aids counselling, testing and anti-retroviral medication from EVRAZ Highveld.

A primary health care policy also serves to assist employees with common health issues such as tuberculosis, diabetes and high blood pressure. In addition, the Corporation’s Employee Wellness Programme provides free counselling on various matters including mental health, alcohol and substance abuse and financial planning.

Investments in employee programmes in the Czech Republic totalled US$1.5 million (CZK24.8 million). This expenditure encompassed pension and life insurance programmes, sport and recreational activities and various events organised by the trade union.

Employees Development and Talent Management

EVRAZ sees the development of its employees as one of the core constituents of the Company’s success and progress. All the educational programmes launched within the Company have a common purpose, born of a conceptual EVRAZ Academy of Development. The primary goal is to create an evolutive environment that provides our employees with opportunities to appreciate and share best practices, while also offering real possibilities for personal and professional advancement.

EVRAZ brings two distinct approaches to bear in the development of its employees:

• The development of middle managers – particularly plant managers – in terms of general business knowledge and management skills; and
• Talent management and the evolvement of high potential employees (HiPos).

Talent management issues are supervised by a special Talent Committee comprising key EVRAZ executives, all of which are actively involved in, and personally responsible for, tutoring and overseeing any given pool of HiPos. The concept behind the development of high potential employees is based on bespoke programmes specifically designed to address the Company’s strategy and immediate business goals. One of the flagships in this respect is EVRAZ New Leaders Programme, the purpose of which is to develop a new generation of senior managers to ensure continuity of leadership within the Company.

The ultimate objective, having identified eligible candidates, is to develop them into qualified managers who share the Company’s values, understand its strategy and possess the knowledge and skill sets required to contribute to EVRAZ’s ongoing growth.

Work on actual projects being undertaken by EVRAZ and familiarisation with the challenges faced by the Company lie at the heart of the programme which actively utilizes the expertise of EVRAZ’s senior executives.

The EVRAZ New Leaders programme commenced in 2009 and, in the space of two years, approximately 60% of the 92 graduates who worked on 16 different projects have received further promotion. In 2011 the EVRAZ New Leaders programme is focused on Engineers and Production Managers against a background of growing demand for such expertise in Russia and overseas.

Cooperation with Labour Unions

EVRAZ’s cooperation with labour unions is based on respect for the opinion of our employees and the principals of social partnership, equality and openness. EVRAZ is an active member of working groups involved in the formulation of sectoral and regional tariff agreements and was the first steel company to establish the ‘Social Councils’ in Russia and Ukraine in which representatives of the respective trade unions participate. This mechanism serves to broaden the framework of social partnership and encourages the discussion of topical issues raised by our employees.

Trade unions contribute to monitoring the Company’s social welfare schemes and discussing the ways to refine and extend such benefits. We value such contributions and intend to maintain trade union involvement in the implementation of certain social projects of EVRAZ.