Personnel Costs

This component of JSC IDGC of the North-West employee social package provides a number of target payments and compensations to employees under the relevant Collective Bargaining Agreement 2014, of which the most essential payments are:

• one-time pecuniary aid for annual leave — RUB 199 million;
• compensation of traveling expenses for employees who in the Far North regions and the areas equated to them as well as their dependents to a place of their vacation and back within the Russian Federation — RUB 49 million;
• 50% discount on household electricity consumption — RUB 25 million;
• payments to employees on occasion of their child birth, marriage registration, death of relatives — RUB 16 million;
• one-time payment to employees retiring upon receipt of labor pension — RUB 15 million.

The Company’s social payments relating to its own employees totaled RUB 181 million in 2014 (excluding non-staff personnel, including voluntary health insurance, accident and health insurance).

In 2014, the Company effectively built relations with the Primary Trade Union Organizations (PTUO) and PTUO representatives’ council, solving shared problems of information support of the group, of cultural and sports events organization, fulfillment of the uniform Collective Bargaining Agreement and uniform position on labor remuneration of the employees. There were no violations of the terms and conditions of the Collective Bargaining Agreement in the reporting year.

67.9% (10,368 people) of the Company’s employees are the members of primary trade union organizations.

In accordance with the Russian Power Industry Tariff Agreement and the applicable Collective Bargaining Agreement, in the reporting year the Company transferred RUB 26 million to the accounts of primary trade union organizations of the Company’s branches and executive body in order to hold cultural and sports activities.

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Growth of the Employer’s expenses on implementation of social policy, RUB millionExpenses on benefits, guarantees and compensations for the Company’s employees and retirees, voluntary health insurance and accident and health insurance, as well as contributions to NGO and primary trade union organizations.

In 2014, a significant increase of the Employer’s expenses under the Collective Bargaining Agreement was due to an increase of pecuniary aid payments to employees having the main annual paid leave, as well as due to the increased costs of compensations for electricity consumed by employees’ households.

JSC IDGC of the North-West has a system of incentives for employees for the achievement of the highest performance indicators, implementation of innovative projects, conscientious work over many years, professional excellence, and contribution to the development of power industry of the North-West.

The award giving policy implemented by the Company, which contributes to the strengthening the social motivation of employees, is based on the following principles:

• unity of the requirements to the procedure of employee rewarding;
• objectivity of rewarding;
• proportionality of reward to merits;
• differentiation of awards;
• combination of material and moral principles.

In total, during 2014, the Company’s employees who made the most significant contribution to the development of power industry received 1,939 awards.

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Distribution of awards across the Company in 2014