Nornickel and its employees sign an updated collective bargaining agreement

NornickelPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel” and its subsidiariesGo to the glossary continues to refine its social partnership system. An updated collective bargaining agreement of MMCMining and Metallurgical CompanyPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel"Go to the glossaryGo to the glossary Norilsk Nickel for 2022-2024 was signed today in Norilsk. It traditionally offers one of the best benefits packages in the industry and aims to create long-term wellbeing for employees and their families.

The signing ceremony of the updated collective bargaining agreement

The collective bargaining agreement includes all of the employer’s social obligations to its employees. As a responsible employer, Nornickel provides its employees with considerably more support measures than are required by law. When drafting the document, the Company has taken into account the experience of social partnerships in previous years and relevant employee suggestions. As a result, Nornickel’s collective bargaining agreement is superior to many similar agreements in the country.

One of the articles that form the foundation of the collective bargaining agreement is the annual salary indexation. This time, even before the new collective bargaining agreement was signed, the Company’s management announced an unprecedented increase in salary payments to employees at the main production sites. From 1 January 2022, salaries at the enterprises in the Norilsk Industrial District and in the Krasnoyarsk Region will increase by 20%, and in the Kola Division by 10%. At other sites, the indexation will amount to 6.7%.

An advantage of Nornickel’s collective bargaining agreement is that it offers one of the best benefits packages in the sector. The Company annually reimburses holiday travel for employees and their family members, offers medical insurance, health and leisure programmes. Nornickel’s employees have the opportunity to receive additional pension benefits, participate in housing programmes and vocational training programmes, including those for young people. Moreover, from the first day of employment, an allowance with a percentage markup is paid at the maximum rate for work in regions of the Far North.

Targeted support for certain employee categories will be increased from 1 January 2022 to improve their social protection. This includes the provision of assistance in case of certain life situations as well as various types of financial support.

Vladimir Potanin, President of Nornickel, commented: “The purpose of the updated collective bargaining agreement is not only to maintain Nornickel’s high social standards, but also to expand the rights and benefits of our employees. The Company believes it is important that each employee feels involved in the common cause, lives and works in comfortable conditions, and is able to provide for the long-term wellbeing of their family. Nornickel has ambitious development plans, which will have to be brought to life by our employees.”

Nikolay Utkin, Senior Vice President and Director of the Polar Division, stated at the signing ceremony: “The Company’s attractiveness is not only comprised of sustainable development, improvement of production efficiency, modernisation of enterprises, implementation of environmental programmes and the automation of production. In addition, it is very important that employees experience social security, work in safe modern conditions and live in a comfortable city. The Company invests a lot of effort and money in all these areas, which makes us confident about attracting highly qualified candidates to Norilsk. It also gives the employees confidence that the Company takes care of them and will provide full support in any situation. The collective bargaining agreement that we extended today, will consolidate social stability in our teams, and this will allow the Company to implement all of its ambitious plans.”

Representatives of the Company’s workforce rated highly the updated collective bargaining agreement. According to them, it corresponds to the interests and addresses the requests of the Company’s employees.

Roman Lyashko, Chairman of the Social and Labour Council, commented: “The current collective bargaining agreement serves as an example for Russian businesses and contains all the necessary norms, additional benefits and guarantees. It is very important that in the updated agreement they have been expanded for individual employees. This is an excellent document with which you can confidently go through life.”

Mikhail Chizh, Chairman of the Nornickel trade union, added: “Before the collective bargaining agreement was signed, very important decisions on compensation and payments were made. Payments were increased for women who are on maternity leave and for those employees who are on extended sick leave. This is very important. In addition, support has been increased for employees who move permanently to the mainland, compensation for dental prosthetics has been increased and much more. We have a very good relationship with the employer, we solve all issues together and constantly make all possible improvements to the collective bargaining agreement.”

For reference:

In addition to MMC Norilsk Nickel, 22 other Nornickel GroupPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel” and its subsidiariesGo to the glossary entities have collective bargaining agreements based on unified corporate standards. Collective bargaining agreements cover around 94% of Nornickel Group employees from Norilsk to Murmansk, Arkhangelsk and Chita.