Corporate Social Policy 

We consider social policy to be an integral part of the corporate social policy aimed at improving the quality of life of employees and their families, contributing to the sustainable development of the regions and the wellbeing of the people in areas where we operate.

ALROSA’s main approaches in corporate social responsibility are set out in the ALROSA Framework Social Policy Development and Implementation Strategy and the Social Policy of ALROSA. The implementation of the measures and programmes provided by the social policies is based on the principles of social partnership and social responsibility to the employees, shareholders and investors, state institutions and municipal authorities, local communities and society as a whole.

ALROSA’s social policy is implemented in close cooperation with Profalmaz, the inter-regional trade union of ALROSA employees (hereinafter, Profalmaz Trade Union), as well as the state and municipal authorities in the regions where the company operates. 

Our company’s social policy is implemented in accordance with the Agreement on Social and Economic Development of the Republic of Sakha (Yakutia) that was signed by the company and the government of the Republic on March 5, 2011. The agreement provides for the company’s involvement in the implementation of targeted programmes and social and economic development project of the Republic Sakha (Yakutia), as well as cooperation of the parties in mobilizing material and intellectual resources.

According to ISO 26000 international standard, sustainable business for organizations means not only providing products and services that satisfy the customer, and doing so without jeopardizing the environment, but also operating in a socially responsible manner.

Key objective of the ALROSA social policy are:

  • improved system of regulation of labour relations in accordance with the strategic objectives of the company and with due  account of the interests of the employees;
  • development and continuous improvement of corporate social programmes;
  • development of the corporate culture, promotion of a favourable moral and psychological environment in work teams and the regions where we operate;
  • preserving social stability in work teams based on trust in the leadership of the company and mutual responsibility of the leadership and employees in making and implementing managerial decisions;  
  • promotion of a system of values and priorities that make the engagement of line managers in solving everyday concerns of employees the main and most effective method of management;  
  • engagement with state and municipal authorities with the aim of creating favourable conditions for the social and economic development of the company, protection of the interests of the ALROSA employees and residents of the regions where we operate. 

Our social policies embrace and aim at key stakeholders, including employees, shareholders, government and municipal authorities, international and local NGOs, non-profit associations and the residents of the territories where we operate. 

Key Stakeholders and Main Thrusts of ALROSA Social Policy 

Employees

Municipal authorities of districts of the “diamond province”, state bodies of the Republic of Sakha (Yakutia) and the Russian Federation 

Communities including ethnic associations and residents 

HR policy:

  • skillpool development with due consideration for the specifics of the town-forming nature of the company’s operations in remote areas;
  • decent wages and a competitive social package including benefits and guarantees in addition to those provided by the Labour Code of the Russian Federation;
  • personnel training and development of employee capabilities to ensure their professional and personal growth.

Social programmes including health and housing schemes, and corporate pension plans that extend to employees and members of their families alike, and to company pensioners. 

The Agreement on Social and Economic Development of the Republic of Sakha (Yakutia) between the company and the government of the Republic of Sakha (Yakutia), which was signed on March 5, 2011 for the period up to December 31, 2020 assures long-term cooperation of the parties in the field of social and economic development of the main region of the company operations.  

The company has a regional development programme that covers nine districts of the “diamond province” i.e. Mirny, Verkhnevilyuisk, Olenek, Anabar, Suntar, Vilyuisk, Lensk, Nyurba, and Kobyai. As part of the programme, the company has signed with these districts cooperation agreements up to 2021. 

The company supports many people under a charily programme of material support and sponsorship while implementing various regional, all-Russia, and international projects in the following areas: 

  • culture,
  • education,
  • science,
  • sports,
  • public health.

The company also supports its veteran workers in eleven cities and towns of Russia and funds an organisation and holding of cultural events for veteran workers.  

The company implements its social policy in the following areas:

  • creation of safe working conditions;
  • protection of the health of employees and their family members, support of a healthy lifestyles;
  • support to and development of the social infrastructure of the company;
  • betterment of the social package for corporate employees, including a system of social and economic benefits and guarantees for remuneration, rest and leisure time, training and education and other incentives or privileges the company provides above those the labour contract provides for in accordance with the collective bargaining agreement, with the aim of improving productivity of labour and reducing the turnover of employees;  
  • improvement of employees’ living conditions;
  • private pension plans within the framework of the agreement with Almaznaya Osen (Diamond Autumn) Private Pension Fund (PPF);
  • involvment in social and economic development of the regions;
  • charity and sponsorship;
  • information responsibility and transparency, support and development of corporate and local mass media, promotion of the best traditions of the first generations of diamond miners.

Corporate Social Responsibility Management 

ALROSA corporate social responsibility management system 

The corporate social responsibility management system is aimed at:

  • Elaboration and implementation of the company’s HR policy, corporate HR standards, social partnership and corporate culture;
  • Development and implementation of corporate social programmes and sponsorship activities;
  • Support of the functioning of the social monitoring and sustainability reporting system.

The key documents in corporate social responsibility are the Social Policy of ALROSA and the ALROSA Framework Social Policy Development and Implementation Strategy up to 2021, which was developed in 2012 with the aim of defining strategic milestones in this area. In view of the importance of the underlying framework of the ALROSA social policy for a long-term perspective, the document was presented for consideration by employees and shop-floor union organizations.

ALROSA’s official position in sustainable development is of high importance for all stakeholder groups. The above documents articulate corporate commitments to leave to future generations a safe social and economic legacy, contribute to the long-term sustainable development of the country, improve the standards and quality of life of the employees, and promote a stable development of the regions, as well as wellbeing in the areas where the company operates.   

The key tools used by the management to evaluate its performance in corporate social responsibility are the returns of ALROSA functions and services and the annual sustainability report as a document consolidating fundamental management approaches and performance indicators in the economic, environmental and social spheres.

Social Partnership in the Sphere of Labour 

The company’s stable and efficient operations are possible only if based on social partnership, such as system of engagement of the employees and the employers in comprehensively regulating social and labour relations, as well as duly taking into account the rights and interests of both parties.   

ALROSA’s social policy is formed and implemented in close cooperation with Profalmaz Trade Union, an inter-regional trade union of ALROSA employees and an authorized representative of our company’s employees. We recognize employees’ right to voluntary associations and freedom of negotiations. 

Relations between the company and the employees in the social and labour sphere are based on the principles of social partnership and are stated in the collective bargaining agreement. This form of employer-employee relationships in ALROSA has a twenty-five-year history and continues to develop.  

A collective bargaining agreement between ALROSA and Profalmaz Inter-Regional Trade Union for 2011 to 2013, which is the fourth in the Company’s history, was signed on November 26, 2010 by the President of ALROSA Fyodor Andreev and Chairman of Profalmaz Trade Union Rishat Yuzmukhametov.

Social partnership at ALROSA is based on the following principles:

  • Equality of the parties;
  • Respect and accommodation of the interests of the parties;
  • Observance by the parties and their representatives of laws and other regulatory acts and internal regulations of the company that are jointly adopted or agreed by the parties; 
  • Contractual regulation of social and labour relations in the company;
  • Need for mutually acceptable compromises when negotiating terms and conditions of the collective agreement; 
  • Authority of representatives of the parties;
  • Freedom of choice in discussing labour-related issues;
  • Voluntary nature of assumed obligations. 

The collective bargaining agreement applies to all company employees who have signed an employment contract, including temporary and part-time employees, regardless of the territory they work.

In the event of major changes in the ALROSA activities, in particular, if any resolutions are taken to reduce numerical strength, or change the manning table or the possible termination of labour contracts with employees, the collective bargaining agreement contains an obligation for the company to inform Profalmaz Trade Union in writing no later than two months before the beginning of termination of labour contracts with employees and inform Profalmaz Trade Union and the territorial employment service about potential mass layoffs of the personnel no later than three months in advance.

The collective bargaining agreement stipulates the company’s obligations to take the following measures aimed at retention of HR capacity before making decisions to reduce numerical strength or change the manning table: liquidation of vacancies, internal rotation of personnel, introduction of shorter working hours, and cost-cutting including general and administrative expenses.

The company and Profalmaz Trade Union jointly implement measures aimed at assisting redundant workers with new employment. The company helps them to master new skills using the internal personnel training and development system.

The main body responsible for social partnership is the Commission for Regulating Social and Employment Relations in the company, which consists of authorized representatives of the parties on parity basis.

In 2012, Profalmaz Trade Union received five grievances with respect to labour relations. They were heard and settled by the parties without resorting to the Commission for Regulating Social and Employment Relations in the Company or courts of law, or law-enforcement agencies.