generating records annual report 2014

Human Capital. Labor Protection

Pursuant to the Concern’s development strategy, safety, increase in economic efficiency in the domestic and external markets, stability, and technology leadership remained the main objectives in 2014. The strategy implementation determines priorities in work with personnel, because such important objectives cannot be achieved without qualified and committed employees.

HR POLICY TRAINING, MAINTAINING QUALIFICATION, AND ADVANCED TRAINING OF PERSONNEL

THE GOAL OF THE CONCERN’S HR POLICY CONSISTS IN PROVIDING THE COMPANY WITH COMPETENT AND QUALIFIED EMPLOYEES WHICH IS POSSIBLE ONLY IF THERE IS A PERSONNEL MANAGEMENT SYSTEM CAPABLE OF RESPONDING TO CHANGING MARKET REQUIREMENTS QUICKLY AND PROPERLY.

The Concern resolves current tasks in the HR area also through successfully functioning system for training, maintaining qualification, and advanced training of personnel.

Key components of the efficient functioning of the Concern’s HR system are personnel training and psychological assessment. The Concern’s employees undergo training in accordance with the requirements of legislative instruments and regulations issued by federal executive agencies and local regulations of Rosatom State Corporation and the Concern.

The Concern’s employees undergo training according to training programs prepared by the Concern’s training and apprenticeship units and educational institutions.

Routine Performance Evaluation and Career Development

Employees subject to routine performance evaluation and career development, pers.

11 288

Men

54%

Women

46%

Managers

30,86%

Specialists

69,14%

Training for Employees

Indicator

Hours of training, total

Hours of training, per 1 employee

Total hours of in-house training (in TAU NPP and subdivisions)

3 651 579

97,5

Total hours of training with third-party providers

1 217 778

32,5

Total hours of training, including:

4 869 357

130

Managers

1 015 694

155

Specialists and white collar workers

1 821 148

125

Blue collar workers

2 032 515

124

In order to make perfect practical skills in production process management, training and apprenticeship units of nuclear power plants (TAU NPP) were equipped with technical training aids, including comprehensive simulators (CSs).

In 2014, in accordance with the Concern’s regulations TAU of Balakovo and Kola NPPs were certified, CS of FTNPP was admitted for training, analytical simulator for training operating personnel of power unit No. 4 of Beloyarsk NPP obtained permission for use. 42 sample items of NPP equipment, 15 stands for performance of various operations on NPP equipment, 8 dummy systems and items of equipment of NPP, and 10 stands modeling various operation mode of NPP equipment were put into operation in TAU NPP.

In order to ensure standardized approaches to professional training of personnel the Concern operates the Instructor School. 345 NPP instructors attended advanced training courses in 2014.

In 2014 in-house training of employees of operating NPPs in TAU NPP and NPP subdivisions totaled 3,646,183 hours. On average, each employee of operating NPPs received 105.5 hours of in-house training.

In order to enhance safety and economic efficiency of maintenance and repair of NPP equipment and systems the Concern has prepared and implements the Program for Manning, Training, and Retaining Electrotechnical Personnel of NPP, Program on Upgrading the Status of Foremen at NP Repair Services, and Program for Development of Training System for Maintenance and Repair Personnel.

The Concern has also introduced standard programs for preparation to a position. In 2014, 67 training programs were updated.

The Concern’s employees attend annual training in external educational institutions for additional vocational education (hereinafter, external education). The main providers of external education for the Concern are such institutions as Non-State Educational Institution CPE “Rosatom Central Institute for Continuing Education and Training”, National Research Nuclear University MEPhI, Rosatom Corporate Academy, and Federal State Educational Autonomous Institution of Additional Professional Training Petersburg Power Institute of Professional Upgrading.

Each year managers and specialists of nuclear power plants – holders of permits issued by Rostekhnadzor authorizing work in the fi eld of nuclear energy use – attend a qualification maintaining course provided at National Research Nuclear University MEPhI. In 2014, 296 employees of NPPs attended a qualification maintaining course.

In the reporting period the Concern successfully carried out activities in personnel evaluation and development, including the corporate program on teaching the English language, trainings on commitment and mentoring, and managerial skills development programs. As a part of managerial skill development, training was provided on the programs “Work Planning and Organization”, “7 Skills of Highly Efficient People”, and “Change Management”.

As required by regulations, NPP employees undergo routine assessment of knowledge they need to perform their job functions. Assessment cover rules and standards of nuclear energy use, industrial safety, labor safety, radiation safety, fire safety, basic rules of nuclear plant operation, job descriptions, and operating procedures.

NPP personnel training also includes psychological and psycho-physiological training provided by specialists from psycho-physiological support laboratories (NPP PPSL). In 2014, 10,020 NPP employees attended psychological training, and 8,144 NPP employees underwent psycho-physiological examination.

In 2014, NPP PPSL specialists participated in committees investigating 38 violations and 89 deviations in operation of nuclear power plants. Based on the investigations, PPSL specialists developed corrective actions aimed at prevention of the same breaches in the future.

The achieved level of safety culture and commitment of personnel to the principles of safety culture are evaluated systematically at all NPPs.

Pursuant to the Concern’s regulations in 2014 Bilibino, Novovoronezh, and Leningrad NPP-2 were certified by PPSL.

The main personnel characteristics are provided in Appendix 14.

Due to specifics of nuclear power industry, the issue of highly qualified personnel availability is one of the most important for the Concern to achieve its strategic goals and ensure its economic stability. The Concern has a multi-level human resource development system in place: starting from professional orientation work with secondary school and university students and completing with preparation of personnel for critically important top management positions.

HUMAN RESOURCE DEVELOPMENT

“SCHOOL – INSTITUTION OF HIGHER EDUCATION – DIVISION”

The Concern is directly interested in attracting best students and graduates for work at NPPs and other organizations forming part of the management circuit. Professional orientation starts at school. In the cities where NPPs are located “nuclear classes” are created to serve as a basis for holding specialized academic competitions in physics and mathematics for secondary school students.

IN LATE 2014, MULTI-PROFILE ENGINEERING ACADEMIC COMPETITION “FUTURE OF RUSSIA” STARTED WITH THE CONCERN’S SUPPORT. OVER 800 SECONDARY SCHOOL STUDENTS TOOK PART IN THIS ACADEMIC COMPETITION. THIS FEDERAL-LEVEL ACADEMIC COMPETITION WAS ORGANIZED FOLLOWING THE ASSIGNMENT GIVEN BY PRESIDENT OF THE RUSSIAN FEDERATION V.V. PUTIN AND WAS HELD FOR THE FIRST TIME. THE CONCERN WAS CO-ORGANIZER OF THE ACADEMIC COMPETITION ON THE SUBJECT OF NUCLEAR ENERGY INDUSTRY AND TECHNOLOGIES: NOW SATELLITE TOWNS OF NPPS COULD ALSO TAKE PART IN THE COMPETITION. WINING THE ACADEMIC COMPETITION GIVES HIGH SCHOOL GRADUATES ADVANTAGES AND BENEFITS WHEN ENTERING LEADING RUSSIAN INSTITUTIONS OF HIGHER EDUCATION IN THE TECHNICAL FIELD AS WELL AS ADDITIONAL POINTS WHEN ENTERING THE PROGRAM OF EMPLOYER-SPONSORED EDUCATION ON THE SUBJECT OF NPPS FOR PROFESSION ORIENTED SPECIALIZATIONS IN 2015.

Among the leaders in training of personnel for the Concern are such institutions of higher education as National Research Nuclear University MEPhI with branches (Volgodonsk, Obninsk, and Seversk), Ivanovo Power Engineering Institute (IPEI) (Ivanovo), Tomsk Polytechnic University (TPU) (Tomsk), Voronezh State Technical University (VSTU) (Voronezh), and Ural Federal University (UFU) (Yekaterinburg). Employer-sponsored education has become a tradition for the Concern. Since 2014 each prospective student must conclude an agreement on employer-sponsored education with the Concern as a prerequisite for entering the employer-sponsored selection. If such employer-sponsored students are successful in their studies, they receive additional financial support in addition to their study allowance, attend practical training at NPPs, and obtain an employment offer upon completion of the educational institution. In 2014, 121 students were accepted to the first academic term as part of the Concern-sponsored education program.

Each year the Concern participates in professional orientation activities for students of leading technical institutions of higher education. In 2014, the Concern organized business games for students as a part of the Rosatom’s Career Days which took place in Tomsk, Yekaterinburg, and Moscow. The winners were awarded with a study allowance of Rosatom State Corporation and received advantages applicable to practical training and employment in the Concern’s organization. Also, in 2014, the Concern took part in industry-specific contest of young professionals TeMP which is a large-scale event organized in order to select the best students studying engineering specializations in Russian institutions of higher education. Students and graduate students had to solve real production tasks – business cases prepared specifically for the contest, with support of experts, employees of the Concern and other organizations involved in the industry. TeMP is a unique site: students solve real tasks suggested by companies, and it permits employers to select the employment candidates who are most suitable for the real production environment. On the other hand, during the contest students interact with representative of their future employer, because company experts provide direct advice to participants, and it permits graduate students to make conscious choice of their future place of work.

The graduate students who aspire to work at nuclear power plants have to meet demanding requirements: the mandatory prerequisite is the average grade point of at least 4.2 and successful attendance of practical training at NPP.

Indicators of Efficiency of Personnel Reserve, % of Appointments from the Personnel Reserve in 2014

Appointments from the personnel reserve to critically important positions

34,48

Participants of the personnel reserve who received the appointment

29,90

CAREER AND SUCCESSION MANAGEMENT. DEVELOPMENT OF PERSONNEL RESERVE

Career and Succession Management is a process intended to provide the availability of prepared successors for company’s management positions as well as to manage career expectations of employees increasing their level of involvement. Development of personnel reserve is one of the links of career and succession management.

The Concern successfully implements the unified industry-specific system for development of personnel reserve for various position levels: Rosatom’s Talents for initial management level, Rosatom’s Capital for medium management level, and Rosatom’s Legacy for top management level. Employees who have potential to management activities, are motivated to achieve high results, professional growth and development become selected to the personnel reserve.

Each year employees are selected to the personnel reserve. As of late 2014, 318 employees of the Concern who completed training on the development program were included into the reserve.

PERSONNEL INVOLVEMENT

A survey held in late 2014 among personnel showed that the Concern in terms of its working environment and team spirit is close to the level of the best employers in Russia: 79% of employees consider the Concern the best place for work, make every effort to achieve goals, and take pride in their work (at the companies considered the best employers in Russia the level of personnel involvement is 84%).

Following common corporate values makes it possible for the Concern to achieve strategic goals.

SPEAKING

Involved employees always speak positively about the organization.

STAYING

Involved employees really want to stay in the organization.

STRIVING

Involved employees make extra effort to contribute to the success of the organization.

ETHICAL PRACTICE

Following common corporate values makes it possible for the Concern to achieve strategic goals

The Concern has prepared and approved the following: Corporate Ethics Code, Ethics Regulation Panel, and Regulations on the Authorized Ethics Officer. G4-41, 56-58

The Ethics Code defines the ethical basis of activity of the Concern, its branches, and employees. It covers ethical principles, basic mechanisms of their execution, and the Concern’s commitments in specific areas of activity, including its relationship with Rosatom State Corporation, society, and business partners. Ethic Councils are created and Authorized Ethics Officers are selected at all NPPs. More details about the Ethics Code are available at: http://www.rosenergoatom.ru/partners/Ethical_practice/. In 2014 an updated version of the Ethics Code was prepared; its adoption is scheduled for 2015.

In 2015, Committee on Settling the Conflict of Interests was established. The objective of the Committee is to make sure the Concern’s employees comply with their duties on prevention and settlement of confl ict of interests and to perform anti-corruption activities.

The Concern’s activity is based on corporate values which are common for the entire nuclear power industry:

One step ahead

Accountability

Efficiency

One team

Respect

Safety

Rosatom’s Person of the Year

Rosatom’s Person of the Year is an industry-wide competition of professional achievements of employees who work for companies of Rosatom State Corporation.

SPECIAL NOMINATIONS OF THE GENERAL DIRECTOR OF ROSATOM STATE CORPORATION:

CORPORATION-WIDE NOMINATIONS – NOMINATIONS FOR ALL EMPLOYEES OF ENERGY INDUSTRY COMPANIES:

DIVISIONAL NOMINATIONS – NOMINATIONS FOR EMPLOYEES OF THE ELECTRIC ENERGY DIVISION:

Labor Protection

Ensuring safe working conditions for nuclear plant employees and contractor personnel is the Concern’s key objective in labor protection, and one of the key operating principles.

In 2014, the Concern continued systematic work to improve safety level, including reduction of industrial injuries and reduction of the impact of harmful factors on personnel. Matters of health and safety are included in the Corporate Agreement in the Area of Labor and Social Relations concluded between employer and the trade union for 3 years. G4-LA8

In the reporting period, 2 the Concern’s employees suffered injuries (Beloyarsk and Kalinin NPPs), both cases are classified as severe.

Number of Injuries at Operating NPPs in 2007-2014

2007

2008

2009

2010

2011

2012

2013

2014

Balakovo

0

0

0

0

0

0

0

0

Beloyarsk

0

0

0

1s

1f

0

0

1s

Bilibino

0

0

0

0

0

0

0

0

Kalinin

0

0

0

0

1s

0

0

1s

Kola

1

0

0

0

1s

0

0

0

Kursk

0

0

0

0

1f

0

0

0

Leningrad

0

0

0

0

1

0

0

0

Novovoronezh

0

1

1s

1

0

1

0

0

Rostov

0

0

0

0

1s

0

0

0

Smolensk

0

0

0

0

0

1s

0

0

Total:

1

1

1s

2 (1 s)

6 (2 f, 3 s)

2 (1 s)

0

2 s

Dynamic Change in Injuries at Concern’s Operating NPPs in 1992-2014 *

* All injuries happened to men

- Minor injuries

- Severe injuries

- Fatalities

Standard Regulations on the Labor Protection Committee (Commission) were approved by Order of the Ministry of Labor of Russia No. 412n dated June 24, 2014. The Order was registered with the Ministry of Justice of Russia under No. 33294 dated July 28, 2014 and entered into force from August 29, 2014 (published in the Rossiyskaya Gazeta, issue No. 185 of August 18, 2014). G4-LA5

Based on the Standard Regulations, labor protection committees (commissions) were established at each NPP by orders of Deputy General Directors – Concern’s NPP Branch Directors with due regard to opinion of the trade union organization. There are no such committees in the headquarters.

Committees are an integral part of the labor protection management system as well as one of the form of employees’ participation in labor protection management. Committees operate pursuant to the principles of social partnership.

WORK WITH CONTRACTORS

Contractors’ employees working at the operating NPPs suffered five accidents involving injuries in 2014 (among them two fatalities), in 2013 six accidents involving injuries occurred (three of them were severe injuries).

Out of five accidents involving injuries in 2014 three happened to employees of Atomenergoremont JSC. In order to analyze the causes of increase in injury rate, extraordinary inspection was carried out resulting in implementation of a specific program for remedial actions at Atomenergoremont JSC.

Among six accidents involving injuries suffered by contractors’ employees at NPPs under construction, five accidents were caused by falling from height (including four fatalities and one case of severe injury due to falling into an unfenced opening).

Dynamic Changes in Injury Rate among Contractor’s Personnel

NPP

Injuries, total:

2013

2014

At construction facilities of the Concern’s operating NPPs

Balakovo

-

3 (1f)

Kalinin

1(1s)

1

Kursk

2

1f

Leningrad

1

-

Smolensk

2 (2s)

-

Total

6(3s)

5(2f)

At construction facilities of the Concern’s NPPs under construction

Baltic

1 (1f)

-

Beloyarsk, power unit No. 4

5 (1f,2s)

2 (1f,1s)

Leningrad NPP-2

6 (1f,5s)

1f

Novovoronezh NPP-2

2 (1f, 1s)

3 (2f, 1s)

Rostov, power units Nos. 3 and 4

2 (2s)

-

Total 16 (4f,10s) 6 (4f, 2s)

General decrease in the amount of accidents involving injuries among contractors over the last years was achieved thanks to the implementation of standard approaches to the organization of the labor protection management system at NPP construction sites, including the following:

ECONOMIC INDICATORS OF LABOR PROTECTION EXPENSES

These funds were spent on the following:

NPP

Expenses (thousand rubles)

Balakovo

471 121

Beloyarsk

141 014

Bilibino

156 966

Kalinin

1 022 303

Kola

4 806 241

Kursk

510 826

Leningrad

1 093 694

Novovoronezh

498 313

Rostov

529 306

Smolensk

813 042

TOTAL

9 273 725

Key Results in Labor Protection in 2014
1

Planned activities aimed at enhancing labor protection at operating NPPs and NPPs under construction were put into practice.

2

The condition of labor protection at NPPs was checked according to safety inspection schedule for 2014.

3

Labor protection workshops were held for deputy general directors of general contractors involved in NPP construction.

4

A set of actions on implementation of the Federal Law “On Special Evaluation of Labor Conditions” No. 426-FZ was performed.

Priority tasks for 2015
1

Implementation of a set of actions on providing proper labor conditions for employees during construction and startup of NPP facilities.

2

Exclusion of conditions that may lead to injuries.

3

Not to exceed the Lost Time Injury Frequency Rate (LTIFR) value of 0.15 which is the most ambicious indicator in the industry.