Human Resources and Social Policy

Implementation of TMK’s HR Strategy in 2012:

HR management and corporate development

The Company optimised its headcount by eliminating duplicate functions across business units and enhancing corporate integration.

Our goal is to be among the best employers in the industry, to offer competitive working conditions, social guarantees and opportunities to discover and make use of the potential of employees committed to achieving best results.

TMK’s HR Strategy through 2020

We focused on a detailed headcount analysis of the manufacturing plants of the Russian division, with the Methodology for Technological and Functional HR Audit at TMK developed and implemented in 2012. The methodology serves to identify potential areas for a deeper insight into the efficiency of business processes and alternatives for better performance by way of benchmarking against pre-selected structural units with optimal headcount numbers.

Employee compensation and incentives

In 2012, the wages and salaries at TMK grew by an average 10% y-o-y, which exceeds inflation rates in the regions and countries of our presence thus helping the Company live up to its commitments. However, our payroll expenses generally remained flat y-o-y as a result of a downsizing exercise.

We aim to increase the competitive advantage and fairness of compensation offered by the Company. We strive to make all our managers highly motivated in achieving business goals by actively promoting the Management Incentive Guidelines based on the Management By Objectives Approach at TMK. Once a top management incentive scheme, in 2012 a similar approach was expanded to include line managers of TMK’s Russian manufacturing plants.

Employee development and training

In 2012, the Efficient Manager Programme became the key project for employee development, training, and appraisal which serves to foster a new generation of TMK’s managers and enhance the managers rotation efficiency, including across TMK’s plants. Throughout 2012, over 200 line managers received training under the programme, including top managers at TAGMET, the Sinarsky Pipe Plant, and the Orsky Machine Building Plant.

In 2012, TMK spent USD 4.6m on high-quality, innovative, and systematic training with a view to increasing the professional and managerial skills of our employees. TMK continued its companywide internship programme raising it to the international scale. The programme covered 148 participants, 1.5 times more than in 2011.

In 2012, TMK actively cooperated with the Ministry of Education of the Sverdlovsk Region in implementing an education promotion programme which resulted in the Mutual Cooperation and Assistance Agreement signed between the Government of the Sverdlovsk Region and the Chairman of TMK’s Board of Directors, including in the regional education promotion. Implementation of this Agreement will help upgrade the relevant vocational training colleges, create cutting-edge training grounds on the basis of TMK’s plants, increase the number of vocational training programmes in line with the Company’s needs.

In order to promote innovative activities of TMK’s young employees, we held the 8th TMK Youth Scientific and Technical Conference whose participants offered a broad range of unconventional and efficient solutions ready for manufacturing application.

Social partnership

As a socially focused company, we develop and implement our long-term programmes based on the principles of social partnership.

All TMK’s plants build partnerships with employees in close cooperation with trade unions on the basis of collective bargaining agreements and meet all obligations as responsible employers.

TMK is active in the Co-Financing Programme for the Funded Component of a Retirement Pension. As of the year-end, 5,300 employees participated in the programme, including 1,400 employees who joined it in 2012. The Company’s expenses in this area of social support amounted to RUB 22m in the reporting year.

We always strive to encourage our best employees by granting state and corporate awards. In 2012, the list of corporate awards was expanded to include TMK Badge of Merit, First and Second Class, and the Badge for Business Cooperation with TMK, with the latter designed to commend corporate clients.

Occupational safety

TMK has established modern and safe working conditions for employees in line with national and international laws and regulations as well as collective agreements. All plants are certified and audited annually for compliance with OHSAS 18001:2007 (Occupational Safety and Health Management System) international standard. Supervisory and re-certification audits conducted in 2012 confirmed compliance with the standard. The system of occupational health and safety is subject to regular control and improvement initiatives by the plants’ management, trade unions and local supervisory bodies. Planned actions in this area become part of the collective bargaining agreement. The employees are regularly trained and certified in their knowledge of and compliance with the applicable requirements.

In 2012, TMK spent over RUB 720m on health and safety measures, personal protection equipment, and compensations.

As a result of improved working conditions at 1,212 work stations, the lost time accident frequency rate fell by more than 6.5% and the occupational disease frequency continuously went down reaching zero at certain plants

The following awards were given to TMK’s plants for excellence in health and safety in 2012:

  • Seversky Tube Works was awarded by the Government of the Sverdlovsk Region with the Certificate for the First Place in the Reduction in Workplace Injuries and Diseases in the Manufacturing Industry nomination.
  • Sinarsky Pipe Plant ranked third in industrial standards and occupational health and safety in the Sverdlovsk Region.
  • Six TMK IPSCO facilities were commended for industrial safety performance in the cities of their presence.

Services & Tools

My Annual Report