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2004-3-25 / 2004-3-25
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25 2004 .

Social policy

TMKs social policy is based on an understanding of the Companys responsibility to its employees and their families, first and foremost to provide stable work and a worthy standard of living.

The implementation of the social policy at TMK is structured in accordance with the following main principles:

- TMK acts as a responsible business partner. The Company works according to legal and ethical norms of doing business, building its relations with its partners on the principles of adhering to professional standards of activity and fulfilling its financial responsibilities.

- TMK acts as a responsible employer. The Company acts in accordance with the norms of the Labour Code of the Russian Federation and often exceeds them, providing its employees with additional benefits. The Company shows concern for the working conditions and the social wellbeing of its employees. It devotes much attention to making sure that its employees have work that is meaningful to them, while helping them to develop and realise their potential.

-TMK acts as a participant in social relations in the regions where its plants are located. The Company actively works to support the wellbeing of society, strives to develop the territories where its plants are located, and makes a tangible contribution to their economic and social development.

TMK considers social partnership to be a system of mutual relations between employees, the employer, governmental agencies, and agencies of local government directed towards ensuring that mutual interests are agreed upon across the entire spectrum of labour and social relations.

TMK bases its reasoning on the idea that the joint efforts of all the parties in the social partnership are directed towards increasing the effectiveness of production, which makes it possible to create conditions for improving the material situations of its employees, increases tax payments to governments at all levels and thus assists in solving social problems in the regions where the Company has plants and promotes the development of the regions generally.

The social partnership system is based on the following founding documents and institutions:

1. The TMK Public Council for Social Partnership. This body consists of representatives of the employer and employees of TMK Groups plants represented by the chairpersons of the plant labour union committees. Its purpose is to consider matters related to the Companys social development on a consensus basis and submit proposals to improve this work.

2. Collective agreements regulate relations between employees of TMK Groups plants represented by labour union committees and the employers represented by the plant administrations.

3. An industry-wide agreement for the mining and metallurgical complex of the Russian Federation.

4. Agreements to collaborate in the socio-economic sphere concluded with the administrations of regions where TMK has plants.

The main areas of TMKs social policy are:

1. Socially responsible restructuring

The Company must do the following things to ensure socially responsible restructuring:

- constantly inform employees and labour union organisations about the goals, tasks and plans of restructuring as organisational changes are made

- strive for advantageous collaboration with newly-created companies, promoting their economic and social stability.

2. Labour Protection and Ecology

In accordance with the principles underlying the staffing policy, the Companys priorities in the field of labour protection are: (a) to preserve the life and health of employees in their labour activities, (b) provide guarantees of employees rights to labour protection, and (c) provide a healthy and safe working environment in the plants.

3. Health protection, physical education and therapeutic work, and sports

An important component of TMKs social policy is its continuing commitment to providing an appropriate benefits package to its employees. The benefits package includes: partial payment of trip tickets to holiday homes, recreation centers and health resorts to ensure quality rest and the necessary medical treatment for employees, as well as meal allowances and therapeutic programs. Employees can make use of athletic equipment, rest zones, public eateries, and a network of health care providers. A voluntary medical insurance system is also being developed.

The main goals in the field of health protection are:

- to preserve and strengthen employees health and shorten recovery times by putting into practice modern diagnostic methods and integrated therapeutic programs in the medical divisions of the Companys plants

- to strengthen employees health by implementing systems of preventive therapeutic measures, including free or partially subsidised trip tickets to health resorts and rest homes

- to improve the quality of medical service by improving the material and technical base of medical sanitary stations

- to organise special oversight over the health of employees who perform strenuous work or work with hazardous production factors, and to provide periodic medical checkups

- to provide effective organisation of medical evaluations when investigating accidents on the production lines, as well as to preserve and expand the system of medical assistance stations in the immediate vicinity of the workplaces.

4. Improving residential conditions

Efforts to attract and retain promising employees and provide incentives for them to increase their efficiency and personal responsibilities comprise the concept of the residential programs carried out by the plants of TMK Group. To ensure further development of this most important component of the benefits and guarantees provided to employees, the Company is developing and improving mechanisms of mortgage lending for the construction and acquisition of housing. In 2005 more than 200 families improved their residential situation.

5. Youth Program

TMKs staffing policy resolves that the main goal of working with youth is to attract and retain qualified young employees at the Companys plants, provide assistance in their mastery of production processes and professional growth, instill loyalty to the plant and the Company, instill the values of citizenship, patriotism and morality, create conditions for labour and rest, and achieve an optimal proportion of personnel according to age. With this goal in mind we are:

- developing and implement programs at the time of hiring, including mentoring and internships both at the plants and as at the corporate level

- promoting the participation of young employees and their families in the residential programs

- supporting young employees and their families when significant events occur in their personal lives

- providing material assistance to young employees returning to work for the Company after serving in the army

- supporting young employees who are combining work with training

- providing on-the-job training opportunities for students interested in professions that are in demand

- providing the possibility of career growth to young employees and including them in the staffing reserve according to their professional qualities

- providing professional and technical developmentconducting plant and corporate scientific and practical conferences, as well as competitions of professional mastery

- developing plant and corporate youth events

The Companys participation in the life of society.

The development of regional communities is one of the important areas of the Companys social policy that is carried out voluntarily. The Companys plants get involved in the life of their regional communities by carrying out various social programs and acts in support of socially unprotected strata of the population, providing support to childhood and youth, support for the preservation and development of the social infrastructure and objects of cultural and historical significance, sponsorship of regional cultural, educational and athletic organisations and events, participation in charitable acts, and the conducting of joint projects with the regional administrations.

 

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