Our Employees

07

At PhosAgro, we believe our people are our most valuable assets. With this in mind, PhosAgro strives to be 
“an employer of choice” and to recruit, develop and retain motivated and highly committed employees, who share the Company’s values, at all levels.

Average number of employees during the year

2011 2010 2009
Phosphate rock division 13,027 13,296 13,116
Phosphate-based fertilisers and feed phosphate division 7,942 7,880 7,726
Ammonia and nitrogen-based fertilisers division 2,811 2,920 3,012
Storage and distribution network 230 398 390
Transportation unit 85 76 72
Research and development unit 93 108 90
OtherIncludes employees at the Company, management company СJSC PhosAgro AG and certain other companies within the Group 324 505 445
Total 24,512 25,174 24,851

Employees’ Social Security

Relationships between the Company’s production units, acting as employers, and their employees are based on the principles of social partnership. The Company’s enterprises encourage their employees’ loyalty and commitment by guaranteeing extra social protection and support. This principle is a key component in collective agreements signed between the trade unions and the management of each enterprise.

We pay special attention to social security programmes for our employees, which include:

  • Programmes for the professional development of employees;
  • Social benefits, such as financial support to employees who return to work after serving in the army, also to the beneficiaries of scholarships, who join the Company after graduating from universities or colleges;
  • Support in the event of emergency situations;
  • Voluntary medical insurance;
  • Wellbeing and recreation programmes for the Company’s employees and their families;
  • The construction of housing for employees and the provisionof interest-free loans;
  • Additional provision of non-government pension benefits;
  • Various other social programmes, including sports and cultural events.

Substantial social guarantees and benefits are included in the collective agreement signed by Cherepovetsky Azot in 2011. The previous collective agreement had twice (in 2009 and 2010) been chosen as the winner in a regional collective agreement competition. It was among the first in Cherepovets to launch a programme to retain key staff by offering housing: employees are granted zero-interest 10-year mortgages with a 10% initial instalment. Between 1999 and 2010, 887 flats were purchased by employees on this basis.

PhosAgro’s enterprises in Cherepovets provide their employees with an additional non-government pension payment. A special programme called “Pensioner” was also introduced at Apatit, which includes a compensation payment to support employees during the resettlement process. The calculation of the amounts due is based on the total period worked by the employee at the Company and its enterprises. In addition, PhosAgro provides World War II veterans and the Company’s pensioners with various benefits in relation to public holidays, including Victory Day, Chemist’s Day and the Old People’s Day.

PhosAgro is one of the few companies in Russia which builds houses for its employees, and also works towards improving their social and living conditions. Between 2006 and 2010, an apartment building comprising 390 flats was built, and 65 flats were bought for employees of Cherepovetsky Azot. In 2011, a total of 137 employees of Ammophos were allocated apartments. In 2010, the Board of Directors of PhosAgro adopted a programme aimed at improving the social and living conditions of the employees of Ammophos, Cherepovetsky Azot, Agro- Cherepovets and BMF. The programme was established for a period of three years (2010- 2013) with an allocated budget of RUB 157 million. Under the programme, staff facilities are renovated, furnished and equipped with all the necessary fittings. Apatit renovates all staff facilities annually.

Each year more than 600 employed and prospective mining experts undergo training and retraining programmes at the Apatit training centre. Every retrained employee is awarded a higher qualification category, which also leads to an increase in the employee’s salary. Apatit sponsors 50 students obtaining professional qualifications that are in demand at the enterprise. Currently Apatit employs one Doctor of Engineering Science and eleven Associates of Science. All of them obtained their degrees on the job.

Motivation Programme

An important element of human resources management is the motivation of our employees. All PhosAgro’s subsidiaries have developed motivation programmes that are regulated by theirprovisions on remuneration, bonuses and compensations, collective agreements and other internal regulations. The Company and its subsidiaries pay competitive salaries, which are reviewed on a regular basis. In addition, the Company and its subsidiaries provide their employees with a number of benefits, including medical insurance and health improvement programmes, educational and private pension programmes.

Professional and Personal Development

We support our employees’ professional and personal development. The main task of the Human Resources managers at PhosAgro is to create teams of qualified specialists who have the theoretical and practical knowledge and competence required to carry out technical and support functions at the enterprises. This is achieved by attracting and retaining qualified personnel, as well as by assisting current staff to realise their potential. As part of this task, PhosAgro pays particular attention to the Company’s “talent pool”. Thus, in 2011, Apatit compiled a list of key managerial positions and a list of candidates for its operational and strategic personnel reserve cadre. PhosAgro’s other key subsidiaries will compile similar lists in 2012.

All businesses managed by PhosAgro have developed various programmes to train, develop and retrain current staff, as well as to attract and recruit new employees. We run 619 different training and retraining programmes at our training centres.

The Company has the following types of training and retraining programmes in place:

  • Training and retraining of new employees
  • Cross-training
  • Upgrading qualification
  • Internship at other PhosAgro’s subsidiaries.

The following types of training programmes are designed for the Company’s senior managers and experts:

  • Management development training
  • Strategic management training

Among these programmes is the “Master” programme at Ammophos, aimed at training production managers. Approximately 50 managers undertake this programme every year. In 2008, BMF obtained a license from the Ministry of Education of Saratov region to conduct staff training programmes for 85 specialisations. The license was renewed in 2011. BMF also encourages employees to realise their potential by participating in variousevents such as the national “Engineer of the Year” competition. Each year the company holds a creative competition called “Youth Achievements” to mark Chemist’s Day. At the Apatit training centre, over 600 mining experts are trained or retrained each year. In 2011, as part of the personnel reserve cadre training programmes, the Company’s employees underwent training in accordance with the presidential programme in the Russian Presidential Academy of National Economy and Public Administration. Promotions, salaries and the awarding of qualification categories and degrees are linked to the results of training and the ability to make practical use of the acquired knowledge and skills. In addition, as part of the programme of specialists training, in 2011 PhosAgro has signed cooperation agreements to train specialists for the Company’s core business activities with a number of universities, including Moscow State University of Environmental Engineering, St. Petersburg State Institute of Technology (Technical University), Ivanovo State University of Chemistry and Technology and Cherepovets State University.

In 2011, PhosAgro provided training for a total of 10,153 employees, including 2,579 managers and experts and 7,574 operational personnel, with each employee receiving on average 20 hours of training. The Company invested more than RUB 32 million in the professional and personal development of its employees in 2011.

Each year more than 600 employed and prospective mining experts undergo training and retraining programmes at the Apatit training centre. Every retrained employee is awarded a higher qualification category, which also leads to an increase in the employee’s salary. Apatit sponsors 50 students obtaining professional qualifications that are in demand at the enterprise. Currently Apatit employs one Doctor of Engineering Science and eleven Associates of Science. All of them obtained their degrees on the job.

Trade Unions

There are five trade unions at PhosAgro — at Apatit, Ammophos, BMF, Cherepovetsky Azot and NIUIF, and most of the Company’s employees are members of these trade unions. All of PhosAgro’s trade unions are part of regional chemical industry trade unions, and also part of the Association of Mineral Fertiliser Producers Trade Unions. The Company’s collective bargaining agreements establish the basic principles of the labour relations between the Company and its employees, employees’ labour rights and obligations, and the rights and obligations of the Company’s trade unions. PhosAgro’s management considers its relations with these trade unions and with employees to be satisfactory. The Company has not experienced any collective action by its employees in recent years.

Enterprise Employees’ union membership
Apatit 91%
Ammophos 64%
BMF 83%
Cherepovetsky Azot 62%
NUIUF 62%