Labor Management

Samruk-Energy Group of Companies is mainly aimed to increase a performance level, worthy remuneration and secure occupational safety. These aims demonstrate a commitment to the principles of social responsibility before shareholders, employees and local publics. 

Official salaries of the employees of Samruk-Energy Group of Companies are set according to the approved staff schedule depending on qualification of an employee and difficulty of a work to be performed.

REMUNERATION SYSTEM OF SAMRUK-ENERGY GROUP OF COMPANIES IS AS FOLLOWS:

• Motivation for the employees to achieve the Company objectives by enhancing efficiency of an individual activity, activity of the organization department and meeting the strategic objectives of the company;
• Competitiveness of a social package in the labor market, taking into account the regional specific features and particularities of business;
• Transparence is ensuring that all employees understand the principles of formation of a remuneration structure and level when observing confidentiality;
• Compliance of the remuneration system with applicable legislation;
• In 2013, an average salary of the employees of the enterprises of the Company Group of Companies increased by 6.8 % as compared to 2012 in relation to the similar indicator – from KZT 128,278 to KZT 136,981. Increase in average salary of the production personnel in 2013 as compared to 2012 was 5%, including a level of average salary of the personnel of acquired companies (from KZT 119,486 to KZT 125,333).

Social indicators*

*Forecasting data (2013-2015 plan) are given as per the Development Strategy of
Samruk-Energy JSC for 2012-2022

Relational Range of Standard Salary of Initial Level and Determined Minimum Salary in Essential Areas of the Company Activity 

The Company and its subsidiaries and affiliates annually monitor the labor market in areas of presence and adjust a salary rate based on obtained data. 

Minimum salary rate in the Company in 2013 was KZT 56,824, this exceeds the similar indicator by 7% as compared to the previous year. Minimum salary rate in 2013 as per the Law of the Republic of Kazakhstan On Republican Budget of the Republic of Kazakhstan is KZT 18,660.

Skills Development Program 

As per the Development Strategy of the Company for 2012-2020, it provides the implementation of large projects on upgrading/optimization/restructuring of the current electric power capacities and creation of new ones, development of a capacity of renewable energy sources.

In this regard, the Company has established the system of development of personnel professional skills. The system is built on implementation of particular, energy-specific training programs, using visual aids, experimental models and simulators. 

Training is conducted within the company or intracorporate training centers: 

Almaty Power Plants JSC – has a Training center which coordinates personnel training, performs training, retraining, further training on main energy-related occupations, and for employees who operate hazardous production facilities, arranges corporate workshops;

Almaty Zharyk Company JSC – has 6 training bases where the courses are conducted to improve professional skills, promote and spread the advanced methods and techniques of repair and operation works, introduce state-of-the-art technologies, new devices and appliances used when maintaining equipment of substations, electrical distribution systems;

Bogatyr Komir LLP – has up-to-date training center to train the personnel on such issues as occupational safety and to examine them. The training center has the following equipped rooms: mining and transport equipment and machinery, railway transport, hoisting machinery, locksmith’s trade and electric wiring trade, occupational safety.

Training at the corporate training centers is based on dealing with the problems specific to the certain organization, attracting own or outside trainers.

To develop a base of personnel professional development, the projects are currently implemented on establishment of new modern training center on the base of Almaty Zharyk Company JSC. Today, a feasibility study for construction of a training center is being developed.

Share of employees for which periodic assessments of performance and career development are conducted

Moreover, it is expected to arrange probation for employees of Samruk-Energy Group of Companies in 2014 on the base of one of the leading companies in the world – France national operator – Electricite de France. Probation topics include a study of experience in arranging and introducing the Smart Metering & Smart Grid. Also, this company is considered as a partner on development of training programs and providing the competent experts as lecturers.

Developing and improving the system of the personnel professional development, in-house training and development of personnel skills, the Company pays a lot of attention to upgrading the system of vocational education and training of the Republic of Kazakhstan: participates as an expert in establishing the National qualification system of the Republic of Kazakhstan (expertizes the professional electric power standards, expertizes a methodological base on development of qualification frameworks, professional standards) and implements the dual training programs with pilot educational institutions:

Almaty State College of Power and Electronic Technologies, trade 3rd and 4th grade wireman on maintenance of automatic equipment and measuring tools;

K. Pshembayev Ekibastuz Vocational Lyceum No. 18, trade Wireman on equipment maintenance and repair.

To achieve the objectives of the Company efficiently, Samruk-Energy Group of Companies introduces the system of personnel performance appraisal. Thus, performance of 8% of the employees of Samruk-Energy Group of Companies was appraised officially in 2013.

Diversities and Equal Opportunities

The Company tends to vest all employees with equal opportunities to implement their capacity during the labor activity, appraise their performance fairly and without prejudice, select and promote the employees based on professional abilities, skills and knowledge only.

Structure of the company personnel by sex and age group, with indication of minorities and other indicators of diversity

Governing authorities of Samruk-Energy Group of Companies

Labor Contracts

The most of companies of Samruk-Energy Group use labor contracts which determine mutual relations of the employees and an employer within the social partnership, mutual responsibility of the parties, provide the employees with additional benefits and guarantees aimed to ensure a social protection of the employees. 

Obligations secured in the contracts are discharged consistently. Bilateral commissions on settlement of socially labor disputes operate in a constructive way.

In 2013, a labor contract was elaborated and approved between the Company and its labor collective which representative is a newly established Federation of Power Engineer Trade Unions Public Association.

The labor contracts are elaborated and concluded according to the Article 282 of the Labor Code of the Republic of Kazakhstan. The labor contracts are elaborated with participation of chairmen of the trade committees which experience is between 10 and 35 years old. The labor contracts are concluded for three years. Legal review is performed prior to conclusion of the labor contracts.

Share of employees covered with the labor contracts

Period of Short Notice on Considerable Changes in the Organization Activity and whether it is Determined in a Labor Contract 

According to Item 2 of Article 48 of the Labor Code of the Republic of Kazakhstan, the Management, Company and its SAAs inform an employee and/or his/her representatives in writing about the changes in labor conditions not later than one month beforehand. This item is stipulated in the labor contract and rigorously observed by each company of Samruk-Energy Group of Companies.

Occupational Safety

In 2013 as compared to 2012, rate of industrial injuries in the Company SAAs had decreased significantly.

Measures Taken in Subsidiaries to Eliminate Industrial Accidents

All Subsidiaries take the following measures to reduce and eliminate industrial accidents:

• Circumstances and cases of accidents are communicated to all employees;
• Extraordinary briefing is arranged for all production personnel;
• Extraordinary assessment of knowledge of rules for technical maintenance, accident-prevention rules and the occupational safety regulations is conducted for employees from subdivisions where an accident happened;
• Monthly the Days of Occupational Safety are conducted with par-ticipation of the first chief executives of the enterprises. Conducted Days of Occupational Safety resulted in development of the measures on elimination of detected violations;
• Occupational Safety Services arrange the integrated surveys of equipment, building and structures, working places. The integrated surveys result in development of action plans with deadlines and responsible persons;
• All production personnel are trained according to the Rules for occupational safety training, briefing and assessment of knowledge of the employees;
• Prior to repair, all Subsidiaries conduct the meeting workshops with engineers and technicians of organization departments entitled to issue the orders, manage and superintend the works, with practical training on proper access of a team to execution of works and issue of an order;
• The working places are attested for labor conditions no less than once every five years at the enterprises;
• Equipment which depleted its life and being of serious hazardous to production personnel is replaced according to the schedule;
• Each case of industrial injury is considered at the meetings of Boards of Directors/Supervisory Boards of the Company Subsidiaries; 
• All the Company Subsidiaries introduce the international standard OHSAS-18001 Occupational Health and Safety Management System.

All the Company Subsidiaries introduce the international standard OHSAS-18001 Occupational Health and Safety Management System.

Existing Programs of Education, Training, Consulting, Risk Prevention and Management to Assist the Employees, their Families and Representatives of Population with Regard to Severe Diseases

According to the Decree of the Government of the Republic of Kazakhstan dated January 25, 2012 No.166 On Approval of a List of Harmful Occupational Factors, Trades at Which Obligatory Medical Examinations are Conducted, Rules for Obligatory Medical Examinations (hereafter – the Decree), the employees of Samruk-Energy Group of Companies undergo preliminary and periodic medical examinations. 

In order to develop professional base of personnel development a project of establishment of new modern training center on the basis of Almaty power plants JSC  is presently implemented. 

Medical examinations are conducted by health care institutes which are licensed to conduct medical activity on appraisal of professional aptitude by state of health. According to the results of preliminary and periodic medical examinations, the commission recommends a group of actions focused on health promotion of an employee, particularly a hospital examination and treatment, rehabilitation treatment, sanatorium-resort therapy and referral to a sanatorium-preventorium.

Also, in accordance with abovementioned Decree, a certain category of employees undergoes pre-shift medical examination. An educational work is conducted to reduce a morbidity rate among the employees.

Thus, in 2013 in AZC JSC the personnel of the company health unit according to the approved Annual Working Plan conducted the workshop with all AZC JSC employees which called Methods of struggle against the spread of socially significant diseases (HIV-AIDS, tuberculosis, viral hepatitis).

Samruk-Energy Group of Companies regularly conducts immunization for its employees and applies other forms of immunity maintenance to prevent diseases. 

All Subsidiaries have developed Action plans on improvement of labor conditions of employees who work in harmful and hazardous labor conditions.

Number of employees who work in conditions with considerable presence or high risk of diseases such as hearing loss, coronary heart disease and hypertony

Policy and Requirements to Health and Safety of the Employees of Contractors and Subcontractors

When selecting the contractors and subcontractors, each company of Samruk-Energy Group is governed by its in-house documents and documents on occupational safety as adopted in accordance with legislation of the Republic of Kazakhstan.

Examples of such documents are: Safety regulations when operation of heat machinery equipment of power plants and heating systems of the Republic of Kazakhstan and Safety regulations when operation of electric plants of the Republic of Kazakhstan.

WHEN SELECTING AND PERMITTING THE CONTRACTORS AND SUBCONTRACTORS, SOME REQUIREMENTS OF SAMRUK-ENERGY GROUP OF COMPANIES ARE GIVEN BELOW: 

• Availability of own base of a contractor or subcontractor; Job specifications and work experience; 
• Availability of attested vehicles (crane trucks, hydraulic ram, man lifts) and drivers; 
• Availability of a license or certificate; List of persons responsible for safe operation; 
• Availability of a certificate of competence with mark as follows:
• About assessment of knowledge on rules for technical maintenance, safety regulations and fire regulations; 
• About assessment of knowledge of rules of the State Committee for Industrial and Mining Safety Supervision; 
• About assessment of knowledge of special rules; About medical examination; Availability of HSE policy; 
• Execution of HSE policy and monitoring; 
• Feedback from other organizations about a contractor or subcontractor (about experience, personnel, quality of works performed); 
• Permit for use of purchased equipment in Kazakhstan.

Percent of the Employees of Contractors and Subcontractors who have been Trained Properly on Occupational Safety 

Prior to permit to work, the contractors and subcontractors shall obligatory undergo introductory briefing conducted by Occupational Safety Service of a corresponding company of Samruk-Energy Group. If the contractor personnel do not undergo the introductory briefing, it will not be permitted to works at the enterprises. Thus, all contractors and subcontractors which provide Samruk-Energy Group of Companies with services shall be properly trained on occupational safety.

Emergency Planning, Action Plans and Training Programs in Case of Disasters/Emergencies and Disaster Control Plans 

As in any production activity, there is a risk of an incident which can inflict harm to the Company, its employees and environment in whole. In case of such incidents, Samruk-Energy Group of Companies has the programs aimed to minimize their effect and protect the employees.

Such programs are elaborated according to the Laws of the Republic of Kazakhstan On Civil Defense and On Natural and Man-Made Emergencies and approved by an authorized agency at the place of Subsidiaries activities. The programs on emergencies include:

• Civil Defense (CD) Plans for peace and war times;
• Training plans for management, CD units and remaining staff;
• Training programs for CD unit staff and the company personnel not included in the CD unit on such matters as Civil Defense and emergency responses.

ACCORDING TO THE APPROVED PROGRAMS AND TOPICS, MANAGEMENT AND PERSONNEL OF THE CD UNIT ARE TRAINED AS WELL AS THE REMAINING OPERATING STAFF OF THE COMPANIES AS FOLLOWS:

• Possible emergency response;
• Exercise of a mechanism of interaction with CD specialized units in case of localization of industrial accidents and other emergencies;
• Recovery of natural and man-made emergencies, reclamation works.

To obtain skills and knowledge how to protect and act in emergencies, all category of trainees are systematically involved into various-level training and drills arranged by Department of Emergency in the places where Subsidiaries are located.

Based on these programs and according to the approved action plans, all employees of Samruk-Energy Group of Companies are provided with regular training. Meanwhile, the priority is to exercise in practice the training points on the most specific emergencies peculiar to facilities of Samruk-Energy Group of Companies. To obtain skills and knowledge how to protect and act in emergencies, all category of trainees are systematically involved into various-level training and drills arranged by Department of Emergency in the places where Subsidiaries are located. Particularly, in addition to in-house training and participation in training, Subsidiaries of Samruk-Energy Group of Companies closely cooperate with training and educational centers under the Department of Emergency in towns where they are located.

Rate of Injuries and Fatal Cases among Population with Participation of the Company Assets, including Judicial Decisions, Settlements and Pending Legal Proceedings Relating to Diseases 

Along with the advantages related to the use of electricity, there are also risks which sometimes result in incidents and accidents with participation of population. These events are often related to casual contact with power transmission lines and unauthorized tampering into operation of electrical equipment. Each case of accident is investigated officially. Measures are elaborated on improving safety against electric shock in PTL protective zone. 

Explanatory work is conducted for population with explanation of electric current danger and safety precautions nearby PTL, attracting mass media and local authorities:

• 1 fatal accident was registered in 2011. An official investigation certificate dated November 04, 2011 was drawn up;
• 4 fatal accidents were registered in 2012 – March 2, April 3, April 14 and June 26, 2012;
• 9 accidents were registered in 2013, six of them are fatal accidents. These accidents were registered dated April 30, May 3, May 29 (2), June 10, June 14, June 29, June 31, July 23, 2013 correspondingly.