HR Management

HR management at ALROSA embraces all major areas of human resources: evaluation, recruitment, training and development, concern for employees’ health and healthy lifestyle, provision of safe working condition, social benefits, and a social safety net. Along with plans, which are standard for other big companies, ALROSA has corporate programmes that are tailored according to the company’s unique nature. 

A Snapshot of the Personnel

The total number of ALROSA employees as at the end of the 2012 came to 31,373 people or 1.5% more than in the preceding year.

Around 94 % of our employees work in the national Republic of Sakha (Yakutia) and just over 6 % is employed in other regions of the Russian Federation. 

Geographic distribution of ALROSA personnel

Our company’s mining division employs more than 43% of all employees.

Breakdown of ALROSA personnel by categories 

The ratio of men and women in subdivisions of ALROSA is determined by the specifics of the mining industry that employs significantly more male employees than the female staff, particularly as production workers. In 2012, men accounted for 61.2%, and women, for 38.8% of the staff.

Breakdown of ALROSA personnel by sex and age1

The age composition of personnel remains fairly stable: the share of employees between 31 and 50 years of age declined by 3.3% over the last three years and the share of younger people increased by 1.3% over the same period. An average age of our employees in 2012 was 40.7 years.

The age composition of the company’s supreme management bodies has changed2. The share of executives between 32 and 50 years of age increased from 28.1% to 41.5% from the year previous. Accordingly, the 50 plus age bracket shrank to 58.5% in 2012 against 79.1% in 2011. However, men continue to dominate numerically over women as senior managers. For instance, men account for 85.4% and women, only for 14.6% of executive positions.

Practically all staff (99.9%) are full-time employees, and 95.2% have permanent labour contracts while 4.8% have fixed-term agreements3.

Personnel Turnover

Regions

Share of total number of recruited staff 

Moscow
113 people

1.4%

Yakutsk, Rep. Sakha (Yakutia)
15 people

0.2%

Mirny District, Rep. Sakha (Yakutia)
7,806 people

95.2%

Mirny
5,228 people

63.8%

Udachny
760 people

9.3%

Aikhal
1,191 people

14.5%

Lensk
627 people

7.6%

Other 
262 people

3.2%

Personnel turnover at enterprises of the mining division does not exceed 6.0%.

Mirny MPD

4.6%

Nyurba MPD

5.9%

Udachny MPD

4.6%

Aikhal MPD

6.0%

Personnel turnover among men (12.5%) is higher than among women (5.7%)4.

Personnel turnover by age groups:

up to 30 year of age (inclusive)

16.1%

31–50 years of age

19.5%

above 50 years of age

6.5%

34.5% of the leavers left the company due to the termination of their fixed-term employment contracts (expiration of the term of temporary work, shift rotation, or seasonal work)

Workers

76.8%

Specialists

17.0%

Office workers

1.4%

Senior managers

4.8%

In 2012, after receiving partially paid parental leave to care for a child under three years of age, 399 people5 came back to work, of which 97.5% were women and 2.5% were men. The share of employees continuing to work after the leave account for 81.0% across all categories of employees.

Equal Opportunities

Legal regulation of labour and associated relations in ALROSA is based on the principles and norms of international law and in accordance with the standards of the International Labour Organization (hereinafter, ILO). Effective legislation is carried out in the company in accordance with the standards of the ILO and the applicable law.

Discrimination is not allowed in ALROSA. All employees have equal opportunities to exercise their labour rights regardless of sex, race, nationality, language, origin, property, or social status, age, place of residence, religion, political beliefs or membership or non-membership in public associations, or any other circumstances unrelated to business qualities of an employee.

With respect to labour relations, we pay attention to protecting the rights of vulnerable categories of employees (women, indigenous people and young adults), providing equal opportunities for all, including professional and career growth.

Protection of Social Minorities

Women

Indigenous People 

Young People

Strict observance of norms and standards prohibiting the employment of women in hard and hazardous jobs in the mining industry.

Guaranteed application of the principle of equal remuneration for men and women workers for work of equal value (ILO Convention 100), such as base tariff rates of remuneration for similar positions are established without discrimination based on sex.    

In 2012, local residents representing indigenous people of the Republic of Sakha (Yakutia) account for 83.5% of personnel recruited by subdivisions of the company (rotational shift workers excluded).

The share of the Yakut indigenous people in the total population of Mirny District of the Rep Sakha (Yakutia)6

8.8%

The share of the indigenous people among ALROSA personnel

10.1%

The share of representatives of the indigenous people among the recruited employees in 2012

9%

Prohibition of employment of young people under 16 years of age.  

Prohibition to employ young people under 18 years of age in hard and/or hazardous jobs. 

A system of onboarding, assistance, mentoring and development for young employees. 

Share of individual social groups in total staff size and among managers 

Skills-pool Development

Strong competition for skilled labour remains a major trend on both the international and Russian labour markets. Companies find it increasingly difficult to find and keep talented people who are in great demand. The task is even more complicated for ALROSA since most of its production facilities are located in remote areas of Western Yakutia, far away from major cities with a developed infrastructure and in severe climatic conditions. Despite these challenging conditions, ALROSA was able to gain a reputation of an attractive employer thanks to its HR policy aimed at minimizing specific risks and solving the most urgent tasks.

Key Thrusts of ALROSA HR Policy 

Risk Factors

Tasks

HR Policy

Predominant influence on the economy of the region

Specifics of the mining industry

Transition to underground mining

Severe climatic conditions

Remoteness of Western Yakutia from developed infrastructure 

Local employment. Creation of a favourable social climate in the region.

Availability of skilled personnel. Skills-pool formation and management.

Minimization of costs related to inviting human resources from other regions.  

Optimization of the age composition of personnel, recruitment and retention of young people. 

Policy aimed at recruiting local personnel. Support of dynasties.

A programme of pre-university career guidance. Training and re-training of employees in accordance with the company technical development programme. 

Continuous education and development of personnel on the basis of a corporate staff training and education system.  

Extensive social package including some benefits and privileges inscribed in the collective bargaining agreement, well beyond and above Russian laws. 

Work with young specialists, fringe benefits and privileges for young employees, which are spelled out in the collective bargaining agreement, as well as social programmes and infrastructure (kindergartens, cultural and sports facilities, etc.). 

At ALROSA, we value human resources as a strategic competitive advantage for us. This is a key principle of our corporate HR management. The highest level of professionalism of our employees and their unique experience in working in severe climatic conditions, succession of generations and professional dynasties, and distinctive corporate spirit form invaluable capital that must be sustained and developed.

The efforts of the company in development of skillpool capacity are aimed at creating conditions for professional and career growth for employees, as well as embedding the feelings of corporate allegiance and loyalty to the interests of the company. 

More than half of our employees have higher and secondary vocational education while the share of university graduates among managers and specialists increased by 4.5% over the last three years.

One-third of the employees in the mining division have higher and secondary vocational education while male employees in this division have on an average 5.1 skill-grade level.

Personnel development, grooming and replacement in the company are centralized through the HR Training Centre and its training workshops. In addition, young workers and technicians receive training at the independent non-profit organization Regional Technical College, vocational schools No. 28 and No. 30, and a technical school in Mirny.

Training of workers is carried out in accordance with the list of training programmes that includes more than 100 professions and special-purpose training courses. In 2012, 8,511 employees (more than 41.3 % of the total number of workers) took part in training and skill development and other courses.

Engineers, technicians, and managers can upgrade their professional skills and education at special corporate programmes that include skills-specific in-house and travelling workshops, training courses and seminars.

The company compensates employees for travel expenses to and from their place of education, as well as for rent and standard per diem expenses for business trips. This is an important additional factor in employee motivation for education.

An important task facing the company is further improvement of business processes. In 2012, our financial services employees underwent training in SAP system document handling for the overall purposes of deploying an integrated management control system within ALROSA.

Key training programmes at HR Training Centre in 2012 

  

ALROSA HR & SKILLPOOL CAPACITY

On November 21, 2012 a career guidance tour to Nakyn operation site was organized for high-school students from the town of Nyurba. The trip began with an introduction to the safety rules that should be followed at industrial sites. The children visited the Botuobinskaya pipe sitethat was the first diamond production site in ulus. The guide told the students about the history and development prospects of the diamond industry. The event continued with a visit to Processing Plant No. 15, a mining and transportation workshop, the tailings storage site, the Nyurba open-pit mine, which operates around the clock, and a rotation shift workers’ camp. . The school children got acquainted with the process flows of the enterprise, and asked questions to the employees about specifics of different occupations, job types, wage levels, and career opportunities.

Employee Motivation

Remuneration of our employees is differentiated depending on the job complexity and a need to compensate for harmful conditions of work, resulting from its difficulty, health hazards and danger level.  These compensations are supplemented with other incentives and cost-of-living adjustments, as well as fringe benefits, which enable our employees to make the most use of their professional and creative potential.

Bearing in mind that the company does not allow the employment of women in hard and dangerous jobs, out-payments to men and women, who have the same tariff grades, will differ to the amount of fringe benefits or compensatory surcharges for hard and hazardous working conditions.

Today, the wage level in ALROSA corresponds to the leading positions accepted by ore mining companies in Russia.

In 2012, the average wage per one employee in our company grew by 25.5% and came to RUB 79,100. Over the reporting year, ALROSA implemented a series of measures aimed at increasing the incomes of employees and improving the remuneration systems. ALROSA, for instance, introduced a 5-10% longevity increment for employees who have worked for the company for five years or more, thus creating another incentive for durable employment.  

Employees of enterprises in the Far North and similar areas, which are characterized by extreme natural and climatic conditions, receive payments in accordance with the established regional coefficient and Northern allowances. The size of out-payments adjusted to the regional coefficient amounts to 70% of the base tariff rate for the employees in Mirny, 100% of the base tariff rate for the employees in Udachny and Aikhal. Out-payments with Northern allowances depend on the seniority record of service in the Far North and may be as high as 80% of the base tariff rate.

A minimum salary in the Company, as calculated based on the basic tariff rate for pay-grade I of the ALROSA Unified Tariff System, is 2.4 times more the established minimum salary in the Republic of Sakha (Yakutia).

Fringe Benefits and Guarantees

ALROSA provides a high level of social benefits and guarantees that, in addition to wages and salaries, serve as an important incentive for employees while also helping the company to motivate, attract and retain personnel. In addition to statutory benefits, the company’s employees are entitled to additional compensation in accordance with the collective bargaining agreement and current social programmes.  

Fringe Benefits and Guarantees under Collective Agreement 

Areas

Fringe Benefits and Compensations to ALROSA Employees under the collective bargaining agreement 

Personnel employment and training

Creation of conditions for skill improvement under educational and professional growth programmes for employees. Taking into account the employee’s aptitudes and aspirations and on the basis of annual evaluation of personnel

Working hours and leisure time 

Provision of additional paid leave of two calendar days to employees who participate in voluntary neighbourhood safety patrols

Remuneration and  labour norming

Quarterly indexation of wages to compensate for the growing costs of consumer goods and services 

Benefits and compensations

Monthly compensation to rotation shift workers for their travel expenses from their place of residence to assembly points (applicable to residents of eight uluses (districts) of the ‘diamond province’);

Compensation for daily commuting expenses; 

Paid return fare and a baggage allowance for holiday trips, biannually;

Compensation for holiday trips of an employee and his or her family members, biannually and within the territories of the Russian Federation and the Commonwealth of Independent States;

Annual compensation for travel expenses of children who are full-time students; 

Annual compensation for travel expenses of minors or adult children attending general education schools, for single parents employed by the company; 

Compensation for travel expenses, accommodation and per diem expenses to employees who combine work with study and who are sent by the company to study;

Supplementary monthly payments in the amount of 30% of the minimum tariff pay-grade level 1 and adjusted to the regional coefficient to the employees who take a parental leave to care for a child under three years of age;

Lump sum payment to employees returning from the military service in the amount of two base through tariff rates according to pay-grade level 1;

Additional payment to employees with possess critical skills or are eligible to fill in critical positions at the company’s subdivisions in the areas of the Far North:

  • Lump sum payment equal to two monthly post salaries;
  • Paid travel expenses of the employee and members of his or her family, travelling from any point within the territory of the Russian Federation and a baggage allowance up to five tonnes per family;
  • Additional payment that would compensate for the lack of or an incomplete additional rated  wage increase for the record of employment in the regions of the Far North; 

Payment of travel expenses and a baggage allowance up to five tonnes in connection with the departure from the regions of the Far North;

In case of death of close relatives of an employee, the employee and a member of the family of the diseased employee or pensioner of the company shall be entitled to :

  • Lump sum material support in the amount of six minimum tariff rates of pay-grade level 1;
  • Compensation for the expenses related to the transportation of the remains of the deceased;
  • Compensation of return fare for the person accompanying the remains of the deceased to the funeral site.  

Social support, benefits, pension coverage, health service, and housing 

Private pension plan under Pension Fund Almaznaya Osen (Diamond Autumn);

Additional medical coverage under voluntary medical insurance (VMI) programmes;

Centralized purchase of and payment for health and resort treatment vouchers for the employees and their children including reimbursement of the costs from the employee’s own funds in the amount of 20% to 30% of the costs incurred;

Provision of vouchers for spa treatment and rehabilitation to the employees: biannually or annually in off-season periods;

Presents for newborns and New Year's gifts for children;

Improvement of housing conditions and provision of housing to company employees;

Funding of the housing projects in central regions of Russia (town of Orel) for retired veteran workers of the company who wish to leave the Republic of Sakha (Yakutia).

Benefits and guarantees to young employees 

Compensation for expenses for housing lease contracts equal to the minimum tariff rate of pay-grade level 1;  

Assistance with employment of the second family member when a younger member joins a  company subdivision; 

Payment of fees for pre-school institutions in the amount of 50% of the established fee when two or more children of the family attend.

Occupational health and safety, environmental safety 

Voluntary insurance against industrial accidents and occupational diseases; Quarterly bonuses to authorize occupational safety representatives for their active involvement and high quality of the performance of their functions.

The company’s system of non-financial incentives includes corporate awards (honorary distinctions, certificate of honour, etc.) and recognition (citation, under titles such as "Best in Profession", "Best Innovator" and "Best Inventor"). In accordance with the ALROSA Regulations on Honours and Awards, there are the following honorary distinctions and awards: Honoured Worker of ALROSA and Veteran Worker of ALROSA (distinctions) and ALROSA Certificate of Merit (certificate of honour).

Photographs, brief biographical data, descriptions of achievements of the honoured employees, who were awarded the honorary title “Honoured Worker of ALROSA” or a Certificate of Merit are recorded in the Book of Fame of our company, and the pictures of honoured employees, are posted on the Wall of Fame. The diplomas of honorary titles and certificates of merit are presented by the company’s president on behalf of ALROSA or on his personal behalf in a festive atmosphere.

In accordance with the Regulation on Labour Competition, the company’s organization units post pictures of the winners in competition and the best workers on the Wall of Fame.

The rewarding of the best employees and honouring veterans takes place in a festive environment at a corporate ceremony. This event is usually timed to coincide with the annual ALROSA extended management leadership team meeting or anniversaries and other important events in subdivisions and with National Day of Metallurgist, the professional holiday of diamond miners.

In 2012, corporate awards were presented to 375 employees, of whom 352 people were awarded the honorary title of “Veteran Worker of ALROSA”, while 49 of our employees were decorated with official awards of the Russian Federation and the Republic of Sakha (Yakutia).  

Social Investments in Employees

The company’s traditions of social responsibility with respect to the life of its employees are more than fifty years old. Many changes have taken place during this time but the principles of partnership, cooperation and voluntary corporate initiatives, which are aimed at improving the social position of the employees, remain unshakable. According to the main goal of ALROSA’s social policy, top priority is accorded to corporate programmes for development and social protection of the company’s employees.

Over the years, the company has been implemented a series of programmes, including Rehabilitation and Recreation of Employees and their Children, Health, Culture and Sports, Housing, and Non-State Pension Coverage.

All of these programmes are designed to create the conditions for additional motivation to work in the company, securing professional staff, and maintaining a healthy psychological climate among staff.

Health Protection

In order to improve the efficiency and the structure of health services, as well as unify the approach, in April 2012, ALROSA established a corporate medical centre that covers all the key areas of health care, including:

  • health service support at the shop floor level (employee health service offices staffed with physicians or paramedics in a workshop that provide first aid, vaccinations, and medical check-ups of employees before field trips and the start of work shifts, etc.); 
  • methodological guidance for the medical centres and institutions within the ALROSA health and rehabilitation network (social programme Rehabilitation and Recreation); 
  • implementation of a voluntary health insurance (VHI) programme that covers the provision of highly-specialized care during medical examinations and treatment of employees and their families (social programme).

In addition to arduous and hazardous working conditions in the core operation units, the social policy accords a special place to prevention of diseases and organization of rehabilitation treatment and recreation for employees and their families.

Over the years, the company has operated the Rehabilitation and Recreation of Employees programme and the Children programme, which offer subsidized vouchers for spa treatment and rehabilitation to the employees, biannually or annually in off-season periods (October 1 through April 1), with employees paying 30% and 20% of the costs (for adults and children, respectively) and the balance being covered by the company). 

Employee recreation and rehabilitation takes place mainly at ALROSA year-round R&R facilities, which feature modern medical equipment and staffed with highly professional personnel.  

Employee Coverage by Recreation and Rehabilitation Services in 2012

Employee Coverage by Rest and Rehabilitation Services in 2012

4 570 people

Sanatorium and Preventorium Facilities at ALROSA Production Sites in Western Yakutia 

Corporate Health Resorts and Spa Facilities at the Black Sea Coast (family members, children included)

182 people

Other Sanatorium and Spa Facilities 

Gornyak (Minier), Mirny

Zarnitsa (Summer Lightning), Udachny

Kedr (Cedar), Lensk

The G.E. Choldukov Sanatorium,

Kempendya, Suntarsk District

2 659 people

Prometheus Rehabilitation Center, Nebug, Tuapse District

2 978 people

Golubaya Volna (Blue Wave) Sanatorium, an ALROSA subsidiary, Gelendjik

164 people

ALROSA Vacation Home, Anapa 

 

 

Organized Children’s Rehabilitation and Recreation Facilities

At ALROSA Production Sites in Western Yakutia 

  • Orlyonok (Little Eagle) rehabilitation camp, Mirny District
  • Almaz (Diamond) children’s rehabilitation camp
  • Children’s day-care centers (playgrounds) under the auspices of the corporate cultural and sports complex. 

2 461 people

Children’s rehabilitation and recreation camps outside the Republic of Sakha (Yakutia) 

92 people


In 2012, the corporate health programme issued a total of 13 106 vouches equal to RUB 720.42 million, local children’s recreation and rehabilitation facilities included. 

The Health Programme provides for medical examination and treatment of the employees and members of their families, as well as company employees who are now pensioners, under the voluntary medical insurance scheme at medical institutions at the place of residents and specialized medical centres in other parts of the Russian Federation.

In the framework of the Health Programme, the company’s health service carries out annual preventive medical examinations of the employees, immunoprophylaxis, and immunization against flue.

In 2012, social investment in the employees under the Health Programme came to RUB 171.2 million, RUB 164.5 million went to the provision of health services via the voluntary medical insurance scheme. The implementation of public health measures in 2012 helped to reduce morbidity with temporary disability by 9.8% as compared with 2011.

Corporate Culture and a Healthy lifestyles

One key area of our social policy is aimed at creating conditions for our employees’ professional and career growth and embedding the feelings of corporate allegiance and loyalty to the interests of the company. 

Creation of conditions for comprehensive rest and leisure of the employees and residents contributes to a healthy lifestyle, as well as better social and psychological climate. The Culture and Sports Complex of ALROSA is responsible for managing the organization and coordination of cultural-mass and recreational sports activities. There are 14 cultural institutions and 22 sports organizations. There are more than 250 athletic and fitness centres and clubs that operate on a regular basis and embrace some 12,000 people.  Children under 12 years of age and children with disabilities under 16 years of age have free access to the ALROSA sports facilities and clubs.

Cultural and sports projects are implemented under the corporate Culture and Sports Programme, which unlike other social programmes, is both inward and outward oriented and has a significant impact on the creation of a favourable social environment for the company’s employees, as well as local residents. 

The ALROSA Culture and Sports Complex annually organizes and/or actively participates in important projects in the region’s cultural and sports life. 

In 2012, the company’s cultural and sports complex organized and took part in 560 recreational sports and mass athletic events. The culture arm of the Culture and Sports Complex held 2,823 events over the reporting period. 

Key 2012 Sports and Cultural Events of the ALROSA Cultural and Sports Complex 

Key 2012 Sports Projects

Key 2012 Cultural Projects

  • Fifth International Deti Azii (Children of Asia) Sports Games;
  • Russia Premier League futsal championship;
  • 12th round of the Russia Premier League Futsal Tournament;
  • Russia Boxing Championship among Girls and Juniors; 
  • Powerlifting Cup of the Far East;
  • Checkers Championship of the Republic of Sakha (Yakutia); Basketball Championship of the Republic of Sakha (Yakutia);
  • Boxing Championship of the Republic of Sakha (Yakutia) among Young People; 
  • Futsal Tournament of the Republic of Sakha (Yakutia);
  • Volleyball Tournament of the Republic of Sakha (Yakutia);
  • Taekwondo Tournament of the Republic of Sakha (Yakutia);
  • Table Tennis Tournament of the Republic of Sakha (Yakutia);
  • Judo Tournament of the Republic of Sakha (Yakutia);
  • Figure Skating Republican Tournament;
  • Free Calisthenics Republican Tournament;
  • Archery Republican Tournament;
  • Alpine Skiing and Snowboard Republican Competition; 
  • Powerlifting Championship of Mirny District;
  • 14th Chess Team Tournament of the Diamond Province;
  • Olympics of ALROSA work collectives;
  • Olympics of student of the Republic of Sakha (Yakutia);
  • ALROSA Swimming Olympics;
  • ALROSA Shooting Olympics;
  • ALROSA Short-Track Tournament;
  • Profalmaz Trade Union Ice Hockey Cup; 
  • Republican song and dance festival of the Olonkho Land;
  • 19th Republican Tuoy-Khaya-2012 Festival;  
  • Ysyakh district folk festival;
  • Europes Hopes district festival & competition;
  • Second Tour of the Theatre Spring of 2012 District Festival;
  • Sparks of Creativity City Festival among Children;
  • Art Exhibition dedicated to Mirny (pictures from private collections of Mirny artists);
  • Photographic exposition – Young Yakutia competition;
  • Photographic exposition dedicated to the Great patriotic War;
  • Orthodox Yakutia – a solo photographic exposition of Father Sergiy Klintsov, abbot of the Transfiguration Cathedral in Yakutsk;
  • St Petersburg Operetta Theatre guest tour;»;
  • The Valaam Choir concert;
  • The Turetsky Art Group and Choir concert;
  • Terem-Quartet concert;
  • Concert of the Virtuosos of Yakutia - State Ensemble of Violinists of the Republic of Sakha (Yakutia); 
  • Concert of ARCO ARTICO string ensemble;
  • Concert on the day of remembrance of Vladimir Vysotsky;
  • Series of official jubilee ceremonies & events dedicated to the 55th anniversary of Yakutalmaz Company and the 20th anniversary of OJSC ALROSA including, inter alia:
  • Fifth Festival & competition Spiritual Faces of ALROSA;  V
  • New Year Official Reception & Ball of the ALROSA President; 

In 2012, ALROSA spent RUB 172.6 million on different events under the Culture and Sports Programme or 23.3% more than in the preceding year.

Housing

The company operates a special Housing Programme that helps employees to improve their housing conditions. The programme is based on new approaches to strategic management of relations in of housing and is aimed at the skillpool capacity building. It also focuses on expansion of the opportunities of employees to improve their housing conditions through mobilization of personal funds and corporate support instruments that help employees to buy houses and apartments.

Key Results of the Housing Programme in 2012 

Target  groups of employees

Goals

Instruments

2012 Results 

Competent young and invited specialists 

Intake and retention of skilled personnel

Formation and use of the dedicated corporate housing stock. Provision of housing to employees on the basis of gratuitous use agreement concluded with an employee maximum for three years.  

Housing that was released by pensioners when moving to Orel was given to company specialists on the basis of gratuitous use agreements.

Company employee who need better housing conditions 

Motivation and retention of personnel. Improved social protection. Reduced personnel turnover.

Mortgage lending schemes for ALROSA employees for 2011-2018 and other instruments of corporate support for employees buying homes.

77 employee families received mortgage credits. The total rebate on bank interest rates on loans amounted to RUB 27.6 million.

Employees who have a service record of 15 years or more (pension-age employees who wish to migrate) 

Improved social protection of ALROSA pensioners. Motivation for long-term employment relations.

Release of housing units for a dedicated corporate housing stock.

Housing construction in Orel for company employees who leave the Far North, primarily on the basis of housing swap contracts.  

In 2012, compensation for employees who move to Orel amounted to RUB 201.5 million. A 140-apartment block was built in Orel. 

181 contracts on the transfer of title were signed.

150 apartments on northern production sites were released and added to the dedicated corporate housing stock for relocation of pensioners. 

The company provides dedicated corporate assistance to employees who buy housing at their own expense. The assistance is given in the following forms:

  • rebate on bank interest rates on mortgage loans for buying housing in accordance with the ALROSA Employee Mortgage Loan Scheme for 2011-2018;
  • instalments and with a real estate mortgage (mortgage security);
  • employees buy housing units on the basis of equity participation with the company;
  • swaps of employee privately owned housing units for units owned by the company in the regions where it operates, as long as such housing units are not part of the dedicated corporate housing stock.  

Private Pension Plan

The Programme of Non-State Pension Coverage or the ALROSA Private Pension Plan is aimed at providing a decent standard of living for our employees once they retire and at attracting, retaining and motivating employees for a long-term and efficient work.

The ALROSA system of additional or supplementary pension coverage was introduced in 1998.

Types of Pensions under ALROSA Private Pension Plan

Pensions from ALROSA Funds

Pensions with Employee Equity Participation

Non-state long service pension, including a non-state survivors’ pension, provided the loss of breadwinner did not happen due to the fault of the company, shall be due and payable to employees who have service record of 15 years or more.    

Pension with employee equity participation (a non-state pension under a reciprocal pension contract) shall be due and payable to employees regardless of the service record in the company and may be paid over a fixed period of time or for life.

Non-state special-award (gratuity) pension shall be due and payable to company employees who have been awarded an honorary title and/or a corresponding corporate or state decoration.   

 

As of 2012, the corporate pension scheme added a new type of pension, which is the non-state survivors’ pension due to an industrial accident resulting in the death of an employee. This type of pension shall be due and payable to each member of the employee family, who has the right to such pension regardless of the record of service of the deceased employee and whether or not the lethal accident was caused by the fault of the employee or the company (except in the cases where the employee was under the influence of alcohol, narcotic or toxic substances, or when the death of the employee was due to action or inaction that law-enforcement organs qualify as a criminally punishable offence).  

 

A corporate pension is paid for life, and the economic instruments used for its calculation are subject to continued change due to a variable value of the wage, readjustment of pension out-payments, and other factors.

The programme of supplementary pension plan is carried out through the Almaznaya Osen (Diamond Autumn) Private Pension Fund, which started working with the funded portion of the retirement pension in state pension insurance, which allows employees to safely deposit their pension contributions and receive a guaranteed investment income. The founding organizations of the fund are OJSC ALROSA, Profalmaz Inter-regional Trade Union, and Derzhava Commercial Bank. As of 2002, the Almaznaya Osen (Diamond Autumn) Private Pension Fund ranks among the biggest non-state pension funds in Russia and has a code certificate that its management systems complies with the requirements of GOST R ISO 9001:2008 standard.


1 In ALROSA, the group of employees below 30 years of age includes the 30-year-old men and women. 
2 Members of the ALROSA Supervisory Board and Executive Committee.
3 This is consolidated data for the 14 main subdivisions of ALROSA that jointly employ more than 80% of personnel.
4 The breakdown of personnel turnover by gender and age groups is based on consolidated data for the 14 main divisions of ALROSA. 
5 This is consolidated data for the 14 main subdivisions of ALROSA.
6 All-Russia Population Census, 2010.