Annual Report 2017
Efficiency improvement
and sustainable development
Annual Report 2017
Staff Composition

Table 33

Key indicators

Indicator

2015

2016

2017

∆ 2017/2016, %

2018(plan)

TVEL Fuel Company headcount at the year-end, persons

22,724

21,843

21,391

-2.1

-

Average Headcount of TVEL Fuel Company, persons

22,527

22,127

21,793

-1.5

22,645

Candidates and Doctors of Science, persons

235

260

284

9.2

280

Holders of MBA degree, persons

15

17

18

5.9

2

Employees employed in the industry for more than 5 years, %

82

84

82

-2.4

82

The process of production concentration led to headcount optimization. Thus, the share of newly created jobs reduced by 53.9%, and the total average headcount for the year 2017 decreased by 2.1%. Steady decrease in headcount in 2015-2017 was caused by restructuring processes, centralization of management functions and personnel outsourcing. The ultimate goal of these processes with regard to HR management is to enhance labor efficiency in TVEL FC subsidiaries to match major foreign competitors.

In March 2017, within the framework of the corporate HR policy and with the purpose of preserving labor resources, a part of staff was transferred with observance of current labor legislation of the Russian Federation from SibRegionPromservis LLC (subsidiary of SGChe JSC) to Research and Production Company VAB-70 LLC.

In the difficult economic situation prevailing at SibRegionPromservis, when production efficiency enhancement and process optimization program aimed at its financial recovery was launched by TVEL JSC, an acceptable solution was found allowing to employ laid-off specialists. 75 former employees of the subsidiary company of subsidiary of SGChe JSC were hired by agreement of the parties by VAB-70 LLC, with retention of their competencies and wages.

In addition to guaranteed transfer to a new employer, employees also received additional remuneration for their work with SibRegionPromservis.

In 2017 TVEL Fuel Company employed 1.379 workers. 982 of hired employees are men, 465 – persons under 30 years old. The largest share of the hired employees is from Sverdlovsk region (307), the smallest share – from Irkutsk region (11).

Following the results of the reporting year 1.731 persons terminated their employment with the Company*. The retirement rate by the business regions of the Company varies from 2% in the Krasnoyarsk territory to 18% in Vladimir region. The retirement rates vary by gender as well: men — 8%; women — 9%. Overall retirement rate for TVEL Fuel Company is 8%. The greatest retirement rate (13%) in the reporting period was registered for the age group under 30 years old.

* Turnover rate means voluntary dismissals as per employee category/for the whole Company divided by headcount by category/for the whole Company as of the period end × 100.

Diagram 20

Average Headcount of TVEL Fuel Company, persons

91%
Staff density
21.9%
Young specialists under 35 years old
1.4%
Unwelcome turnover
11
Workers per 1 manager
43
years
Average age
4-5
Levels of management in production
>350
RUB mln
Allocated for pay rise and indexation
3
Levels of management in office
2.2
times
Average pay in the Company is higher than average pay in Russia

Table 34

Employee Turnover
Indicator
TOTAL
Moscow
Moscow region
Vladimir region
Udmurt Republic
Novosibirsk region
Sverdlovsk region
Tomsk region
Krasnoyarsk territory
Irkutsk region
under 30 years old
30-50
above 50 years old
M
F

Number of voluntary dismissals

300

32

37

127

21

9

27

39

1

7

63

165

72

212

88

The turnover rate, %

1

2

1

7

1

1

1

1

0

1

3

1

1

2

1

Number of workers who left the company for any reasons

1,731

101

373

324

350

64

187

255

42

35

242

727

762

1,077

654

Retirement rate, %

8

7

9

18

11

5

6

8

2

4

13

6

11

8

9

Number of hired persons

1,379

116

229

245

289

42

307

107

33

11

465

657

257

982

397

Hired workers turnover, %

6

8

6

13

9

3

9

3

2

1

24

5

4

7

5

The retirement rate* by the business regions of the Company varies from 1% in six regions to 7% in Vladimir region . Overall personnel turnover rate for TVEL Fuel Company is 1%. The most mobile age group (turnover rate 3%) is comprised of employees under 30 years old. The turnover rate for men — 2%, women — 1%.

* Retirement rate means total dismissals due to any reasons by an employee category/for the whole Company divided by headcount by category/for the whole Company as of the period end × 100.

As of December 31, 2017, headcount of TVEL Fuel Company was 21.391 persons. Overall majority of subsidiaries' employees (over 98%) work under the open-term labor contracts and during normal business hours (40 hours a week). The headcount of employees under civil law contracts was 187 persons, external part-timers - 17, persons on parental and childcare leave were 396.

Table 35

Total workforce by employment contract type, pers.

Indicator

2015

2016

2017

2018 (plan)

Average headcount (open-term labor contracts)

22,250

21,780

21,383

21,954

Average headcount (fixed-term labor contracts)

277

348

410

437

Average staff total

22,527

22,127

21,793

22,391

Table 36

Total workforce by employment contract type and enterprise in 2017, persons
Average staff number
Total
MZP JSC
VNIINM JSC
AECC JSC
SGChE JSC
UEIP JSC
PA ECP JSC
KMZ PJSC
Centrotech SPA LLC
Tochmash VPA JSC
MSZ PJSC
NCCP PJSC
TVEL JSC
ChMP JSC
Ecoalliance
Men
Women

Open-term labor contracts

21,383

179

895

890

3,349

2,100

1,931

962

980

1,205

3,924

1,342

420

3,053

154

13,355

8,028

Fixed-term labor contracts

410

5

23

18

51

38

7

10

6

10

135

3

62

41

1

241

169

Total

21,793

184

918

908

3,400

2,137

1,938

972

986

1,215

4,059

1,345

482

3,094

155

13,596

8,197

Table 37

Total permanent workforce by employment pattern, persons

Indicator

2015

2016

2017

2018 (plan)

Full time average headcount

20,173

21,782

21,479

22,086

Average headcount transferred to part time mode

2,353

346

314

305

Total

22,527

22,127

21,793

22,391

Table 38

Total permanent workforce by employment type and enterprise in 2017, persons

Average staff number

Total

Men

Women

Full time average headcount

21,479

13,565

7,914

Average headcount transferred to part time mode

314

31

283

Total

21,793

13,596

8,197

Major part of the employees are men (65.4%)*. Average age of employees of the Company is 42.6. The employees under 35 years old comprise 21.9% of total staff.

* 82% of top managers in TVEL Fuel Company are men.

About 0.8% of the Company's average headcount took parental leave in 2017. The majority of them are women ( 87.9%).

Table 39

Employees of TVEL FC who took parental leave

Indicator

Women

Men

Total number of employees who were eligible for maternity leave or parental leave

145

20

Total number of employees who took maternity leave or parental leave.

145

20

Total number of employees back from maternity leave or parental leave.

198

31

TVEL Fuel Company hires mainly the local residents in the territories of presence, and involves specialists from other regions only if and when no properly qualified candidates are available at the local labor market. So, due to implementation of a new project on production sites concentration at Tochmash VPA JSC and KMZ PJSC, the share of top management rotated from other regions has increased in Vladimir region.

Diagram 21

Composition of top management in TVEL FC subsidiaries by residence in the reporting year, %

Diagram 22

Jobs creation
in TVEL Fuel Company*

* Creation of new positions at enterprises of the Fuel Company for current and new projects.

Table 40

Total workforce by categories and regions in reporting year, persons
Workforce Category
Moscow
Moscow region
Vladimir region
Udmurt Republic
Novosibirsk region
Sverdlovsk region
Tomsk region
Krasnoyarsk territory
Irkutsk region
Total in 2017

Headcount, including:

1,461

4,040

1,838

3,107

1,353

3,359

3,368

1,952

913

21,391

Key staff

0

1,398

634

1,470

556

1,229

1,463

462

369

7,581

Supporting staff

173

1,033

408

595

126

340

330

460

2

3,467

Managers

205

346

154

239

140

266

213

109

97

1,769

Specialists

1,063

1,259

631

797

516

1,452

1,340

897

416

8,371

Office workers

16

4

8

6

15

71

22

24

29

195

Indirect labor group

4

0

3

0

0

1

0

0

0

8

Table 41

Average headcount in key production enterprises of TVEL FC in 2017, persons

Enterprise

Headcount

Angarsk Electrolysis Chemical Complex (AECC JSC)

907

Electrochemical Plant (PA ECP JSC)

1,938

Siberian Group of Chemical Enterprises (SGChE JSC)

3,400

Ural Electrochemical Integrated Plant (UEIP JSC)

2,137

Total per SSC

8,382

Machine-Building Plant (MSZ PJSC)

4,059

Novosibirsk Chemical Concentrates Plant (NCCP PJSC)

1,345

Chepetsky Mechanical Plant (ChMP JSC)

3,094

Total per NFFC

8,498

Kovrov Mechanical Plant (KMZ PJSC)

972

Total per GCC

972

Centrotech SPA LLC

986

Bochvar Institute (VNIINM JSC)

918

Tochmash VPA JSC

1,215

Total for Research Complex

3,119

Diagram 23

TVEL FC total headcount by age in 2017, persons

Diagram 24

TVEL FC total top managers headcount by age in 2017, persons

SGChE JSC employs the Provision on Housing Conditions Improvement for Employees of SGChE JSC aimed at social support of its employees. In the reporting year 18 employees improved their housing conditions with help from the enterprise, and 22 employees - in 2017.

UEIP JSC won the regional stage of the Federal Contest  Russian Organization of High Social Performance in nominations  For jobs creation and development in organizations of the production sector  and  For the reduction of occupational injuries and occupational diseases in organizations of the production sector .

Staff number at SGChE JSC will be preserved.

The total headcount number at SGChE JSC, as well as those employed by TASED residents will be 5.600 by 2021.

As of January 1, 2017, the company had 3.515 employees. According to the forecasts of TVEL JSC Managing Company, by 2021 the total headcount at EDEC facilities of SGChE, the established industrial enterprises and enterprises of TASED Seversk will be 5.600 persons. According to the target figures, 1093 employees will be engaged at Proryv Project. Nearly 2.5 thousand employees will work at the enterprises formed by general industrial activities of SGChE and in the structures of TASED residents. At the same time, SGChE JSC preserves a unique technological conversion - the Conversion Center, which is designed to perform the entire industrial program in the Russian nuclear fuel production chain. In addition, extensive long-term works on decommissioning and maintenance in safe condition of former facilities of the radiochemical and chemical-metallurgical plants are to be performed by qualified personnel of SGChE JSC. It will take several decades to bring this part of the site into a safe state, and this, in its turn, will provide jobs for more than 700 people for the entire long-term rehabilitation period.