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Social policy and charity

In 2012, ALROSA’s social policy aimed to achieve the following objectives: improve the corporate social programmes; raise the level of social benefits offered to employees; retain and develop its staff; and improve the quality of life of employees and their families.

On 26 December 2012, the Management Board approved the draft of the ALROSA Social Policy document for the period until 2023. The final version was approved in March 2013. The Social Policy is a framework document in which the Company declares its intention to submit social policy reports using the GRI standard, and to seek new approaches for the improvement of social benefits as part of a social partnership with the Profalmaz trade union.

One of the priorities of the Company’s social policy is to keep its employees healthy. Given the harsh climate, as well as taxing and potentially harmful working conditions at the main production facilities, that policy places a special emphasis on disease prevention, as well as health resort treatment. The “Health and recreation for employees and their families” corporate programme has been in place for many years. As part of that programme in 2012 the Company paid for 12,910 health and recreation holiday packages worth RUB 604 million, including local packages for children and stays at local health resorts.

169,4

RUB mln
Zdorovye programme expenditures

The Company is also running the Zdorovye programme, which aims to provide specialised medical help to its employees. Some 2,271 people underwent medical tests and received medical treatment as part of that programme at medical facilities in the Republic of Sakha (Yakutia) and other parts of Russia in 2012, including 342 pensioners and employees’ children. Spending on the Zdorovye programme reached RUB 169.4 million.

These programmes have resulted in a 13.5% reduction in morbidity leading to loss of workdays, as compared to 2011.

In 2012, the Company set up a new division, the ALROSA Medical Centre, which has subsumed the healthcare department of the social-development directorate and the Company’s healthcare units in western Yakutia. The Medical Centre employs a total of 259 people and includes 42 medical stations. Their remit includes:

  • organising and implementing a series of measures aimed at providing timely and high-quality medical help to employees and members of their families, as well as retired former employees, under the procedures spelt out in the relevant corporate documents;
  • preserving and restoring employees’ health, keeping them in good working shape, and facilitating professional longevity.

In the medium term, the Company will develop approaches to the formation of the optimal structure of the Medical Centre, taking into account the possibility of incorporating the health resorts owned by the Company in the Republic of Sakha (Yakutia) into that Centre.

172,6

RUB mln
Culture and Sports programme expenditures

A healthy lifestyle led by the employees is one of the key components of effective and productive labour. It also helps to improve labour discipline and reduce crime in the region. In order to improve the moral and physical health of its staff, ALROSA funds the Culture and Sports programme. Spending on that programme reached RUB 172.6 million in 2012.

The Company has a programme to build housing in the city of Orel in order to enable its veteran employees, who have spent long years working in the far north, to spend their retirement in better climes. The local housing in Yakutia vacated by the pensioners who move to Orel enables the Company to attract qualified specialists. ALROSA spent RUB 201.5 million on the programme in 2012, with 181 flats provided to retired and active employees.

The Company also provides various forms of assistance to employees who buy their own housing. In 2012, employees bought 77 flats using a corporate mortgage programme. In accordance with the provision on compensating interest paid by the employees on mortgages taken out at MAK Bank, the Company paid out RUB 27.6 million in compensation in 2012. Spending on housing under the provision on corporate support for ALROSA employees who buy their own housing reached RUB 25.9 million.

1 837,5

RUB mln
Charity expenditures

The Company spent RUB 1, 837.5 million on charity in 2012. It has made donations to the Future Generations Fund of the Republic of Sakha (Yakutia); the republic’s Ministry of Education (for a programme to support orphans and children left without parental support); the St. Petersburg State University Development Fund; the Ammosov North-Eastern Federal University Development Fund; and the Skolkovo Institute of Science and Technology Fund. The Company also provided financial assistance to the Dinamo ice hockey club, and contributed funds for the construction of a church in the town of Vilyuysk.

In accordance with the Agreement on Social and Economic Development of the Republic of Sakha (Yakutia), and in order to specify the mutual obligations of the parties to that agreement, in October 2012 the Company signed an agreement on the transfer of housing and utility assets to the ownership of municipal entities of the Mirny District, and on financing the maintenance of those assets. Under the terms of that agreement, the Company has undertaken an obligation to finance the maintenance of housing in the town of Udachny until 1 January 2014; in the settlement of Aikhal until 1 January 2015; and in the town of Mirny until 1 January 2016. The agreement also details the Company’s commitments to finance refurbishment and routine repairs; resettlement of residents from housing declared unfit for habitation; demolition of housing declared unfit for habitation; installation of energy meters at residential buildings; and the replacement of lifts. The programme will cost a total of RUB 2.4 billion, including the 537.6 million spent in 2012.

As part of the Regional Development Programme, the Company provides support to the indigenous communities of deer farmers and fishing villages in the far north of Yakutia. By providing material support to the nomadic communities of the province in their agricultural activities and traditional crafts, as well as organising charity initiatives for children living in these communities, the Company supports local employment and helps to increase the local population’s income levels, thereby contributing to social stability in the region. Spending under the Regional Development Programme reached RUB 74 million in 2012.