4.1. Human resources policy

General principles of employee relations

NCSP Group’s balanced human resources policy, aimed at recruiting highly qualified professionals, developing the skills of employees, providing decent wages and fostering a strong corporate culture, has been a key factor in its successful development.

The employee incentive system at NCSP Group is based on competitive pay packages linked to employee performance. Considering the specifics of the Group’s business, special attention is paid to occupational health and safety.

The Group had an average of 6,914 employees in 2012.

Since 2007, labour relations at Group companies have been governed by collective agreements that guarantee employees favourable and safe working conditions, social benefits and guarantees, opportunities for training, and a number of additional types of material incentives. The collective agreements provide for additional compensation for work in difficult or hazardous conditions, as well as for multi-skilling and increased workloads.

In March 2013 PJSC NCSP management and employees signed a new collective agreement effective starting 1 May 2013 and valid till 2016. The agreement established a new mechanism of annual wages indexation by 5% across all wage rates and tariffs. It also introduces new piece rates for handling of a range of cargoes and expands the range of employees eligible for additional benefits.

The collective agreement regulates issues concerning pay and benefits for employees, discipline and occupational health and safety. The agreement also guarantees the rights of unions, and defines the obligations of the employer and union organizations in implementing the collective agreement.

The new version of the collective agreement was developed through dialog with a representative body that included representatives of unions operating at PJSC NCSP.

Training

Improving the professional skills of NCSP Group workers, as well as specialists and management personnel is apriority integral part of the Group’s human resources policy.

The human resources departments of Group companies have a common approach in their programs for training operational staff. All Group employees undergo training, instruction, professional development, evaluation and re-evaluation, and certification in 48 trades and engineering fields. This not only enables the Group to effectively respond to its companies’ changing needs for skilled workers, but also to meet the requirements of the Federal Environmental, Technological and Atomic Oversight Service and provide services to outside companies and generate additional revenue. The training center provided $18,000 in services to outside organizations in 2012.

In 2012, 4,389 employees participated in various education programs offering retraining, professional development and other training, including in occupational health and safety. NCSP Group spent more than $386,000 on employee training programs in 2012.

Table: Employee training in 2012, including in occupational health and safety

Company Spending on employees, ‘000 USD Employees trained, total Operational staff Specialists Office staff Managers
NCSP 58 2 912 1 301 1 280 99 232
IPP 12 67 28 11 28
NCSP Fleet 93 690 313 281 96
BSC 11 85 77 4 0 4
NLE 56 225 90 95 40
NSRZ 19 119 49 22 48
NGT 38 31 24 7
PTP 99 260 34 178 21 27
Group total 386 4 389 1 892 1 895 120 482

Benefits

NCSP Group has made it a priority to pursue a policy of corporate social responsibility toward its employees and has introduced a system of benefit packages at its companies. Collective agreements give employees the right to additional incentives such as additional paid personal days for women with children under the age of 18, severance packages for retiring employees, bonuses for certain anniversaries and years of service and other benefits. Employees also receive additional lump-sum bonuses upon the birth of children and monthly childcare allowances for children up to 18 months of age. Support is also provided for multichild families, families with disabled children and pensioners.

NCSP Group supports its employees during difficult times such as the death of a loved one, illness, fire, theft, natural disasters, and other circumstances. In order to promote the health of employees, the collective agreement provides reimbursement of expenses for regular medical examinations (for professions requiring periodic checkups and in the hiring process), and provides annual compensation equivalent to the average monthly salary to cover vacations taken for health and treatment purposes. NCSP Group spent $5.8 million on additional social benefits for its employees in 2012, 49% more than in the previous year.

In addition to benefits for its current employees, NCSP Group provides support for former employees who are now retired. The Group has a Port Veterans Council that deals with issues concerning provision of quarterly material assistance, as well as social security for veterans and their social and domestic issues. Employees who have worked for the Company for at least 20 years with a faultless record are awarded the title of Novorossiysk Commercial Sea Port Veteran Employee, which entitles them to a cash bonus and a number of other benefits.

The Group spent $563,000 on additional social welfare benefits for retirees in 2012.

Social partnership with unions

NCSP Group works closely with the Krasnodar Union of Port Workers (PRMP, founded in February 2001). The Group and PRMP, within the context of a social partnership, have developed a special social security program for PJSC NCSP employees who are members of the union.

  • The following social programs are being implemented within the context of union activities:
  • Women and Children program. Benefits upon birth of children, benefits for multi-child families, monthly benefits for women on maternity leave with children up to three years old, etc.;
  • Anniversaries and Holidays program. Benefits for participants of local conflicts for February 23, benefits for union members, etc.;
  • Best on the Job program. A competition is held among port employees to select the best in each department;
  • Health program. Partial reimbursement for medical expenses;
  • Cultural Events program. Expenses for organization of New Year celebrations for children, tickets for various events;
  • Sports program. Partial reimbursement of expenses for attending sports leagues, renting fitness rooms, holding various sports competitions;
  • Solidarity Foundation program. Benefits for parents with disabled children, sanatorium-spa treatments for employees, summer camps for children with intensive English language programs, group vacations for union members, excursions, etc. The program also provides third-party liability insurance for union members. All union members are insured for accidents occurring in the workplace or on the way to and from work.

Occupational health and safety

Stevedoring operations by their nature can pose certain risks to the health and safety of employees, so NCSP Group takes occupational health and safety very seriously. The Group has introduced the Occupational Safety Management System (OSMS) to ensure safe working conditions at its companies. The system regulates the process of monitoring, certification and reporting for each division, and establishes a special occupational safety day.

As part of its work in the area of occupational health and safety, the Group is working actively to certify its employees, and 1,770 employees were certified in 2012.

Although the Group has not yet managed to eliminate workplace accidents completely, their number was minimized to only 29 incidents in 2012.

All Group companies have carried out various measures in the area of industrial safety in 2012, including evaluations of industrial safety, technical certifications, audits, monitoring, reviews, and inspections of equipment and installations at hazardous facilities. The companies have also prepared plans to undertake similar activities at subsidiaries in 2013.

Additionally, companies held training exercises for potential emergency situations, including drills on the Plan for Containment and Management of Emergency Situations and the Plan for Prevention and Management of Oil and Oil Product Spills.

A number of documents related to industrial safety underwent industrial safety reviews and were registered with Russia’s Federal Environmental, Technological and Atomic Oversight Service (Rostekhnadzor).

Risk and liability insurance

NCSP Group carries insurance for a broad range of risks and liabilities, including property insurance, losses due to interruption of operations, civil liability insurance for hazardous enterprises, optional health insurance and group accident insurance.

NCSP Fleet and Baltic Stevedoring Company anniversaries: something to be proud of

In the 20 years since it was founded, PJSC NCSP Fleet has become the largest towing and tugboat company in the country. The company now has 695 employees, many of whom have been working in the port fleet for over 30 years and have a wealth of experience, both in routine operations and emergency situations such as fighting the fire on the Bulgarian tanker Khan Asparuh in October 2001 and coming to the aid of the bunkering ship Prometheus. These successful operations prevented environmental disasters and saved the lives of many crew members. PJSC NCSP Fleet workers have been repeatedly commended by the Russian Transport Ministry and the regional governor for their valiant efforts. To mark the PJSC NCSP Fleet’s anniversary, the company presented awards to 12 employees.

LLC Baltic Stevedoring Company celebrated its tenth anniversary in 2012. Since its inception, LLC BSC has consistently pursued its goals and achieved excellent results, assuredly securing its position as one of the fastest growing companies in the Kaliningrad Region and one of the leading companies in Russia’s container shipping market. Thanks to its hard work year in year out, day in day out, LLC BSC is making a considerable contribution to the growth and prosperity of the NCSP Group.

In the relatively short period since it was founded, LLC BSC has mastered the latest technologies, formed a close-knit team of professionals, and withstood the difficult times of the crisis to grow further and improve its performance.

  © PJSC «Novorossiysk Commercial Sea port» 2013