Social support of people

Our activities in the social arena cover employees’ health improvement, protection of mothers and children, organising employees’ rest and meal breaks, social assistance to pensioners and veterans, developing and training people and encouragement of the best employees.

At 31 December 2010, our workforce numbered 84,891, distributed among the divisions as follows:

Improving our employees’ health is a priority social objective in all our businesses.

In 2010, we allocated about $20.0 million to the Severstal’s Health programme, whose main task is to promote the health of metallurgists.

In Cherepovets we have arranged over 34,000 professional medical check-ups under this programme. We have also launched an action plan to improve labour conditions and the treatment-diagnostic process, to reduce the incidence of disease among employees.

In 2010, our financing of Severstal Medical Unit programmes exceeded US$16.0 million. In 2010, the Medical Unit's maternity home won the second national competition, Best Maternity Homes in the Russian Federation.

We allocated over US$5.0 million to improve the health of Cherepovets employees in 2010, which enabled over 9,000 metallurgists and their children to improve their health in resorts and country houses/camps, with 5,000 metallurgists undergoing rehabilitation and health improvement in the Rodnik sanatorium.

About 15,000 Cherepovets employees enjoy daily meals arranged by Organisation of Working Supplies, where quality services go hand in hand with healthy nutrition principles. As a result, the incidence of digestive disease in 2010 decreased 9.1% compared to 2009. One of the priorities of the Severstal’s Health programme is to motivate employees and their families to take up sports, and we allocated over US$800,000 to this. In 2010, over 4,000 metallurgists regularly attended 145 health and fitness groups, which accounts for 18% of the total staff of the Cherepovets Metallurgical Works. We organised more than 300 mass sport events, enjoyed by 15,000 participants.

Last year the Cherepovets Steel Mill completed the construction of residential houses within the Corporate Housing Programme. Housing was provided after payment of an instalment of no less than 15% of the price. Employees pays the balance monthly over 10 years as long as they continue to work for us. Costs for the improvement of living conditions, such as hostel maintenance, and provision of favourable credit facilities for buying housing, were US$5.8 million.

Employee training and development

We strive to create an environment conducive to developing our employees and unlocking their professional potential, promoting a corporate culture based on expertise, personal initiative and responsibility.

Working with young professionals

Various divisions recruit students who suit our requirements, and every year, hundreds of students work as trainees with us. We run business seminars to help selected students learn about Severstal and its values, and get some career guidance.

We determine our need for graduates annually. For example, at the Cherepovets Steel Mill we will need 111 graduates in 2011. We select them based on their internship results, and presentation of their degree thesis.

We then help them build their careers by promoting them, for example as line managers or technical experts.

Our major mining businesses also offer career guidance at local schools, and school students can aim to be selected for special classes where teaching is focused on field-specific disciplines, physics and mathematics. We then encourage them to apply to leading mining universities, and currently we work closely with the Moscow State Mining University.

In addition to cooperating with higher educational institutions, we have created training centres at our major businesses in Vorkutaugol, Karelsky Okatysh and Olkon, where we have obtained licences for educational activities. All our businesses budget for technical and professional training.

Career development at Severstal

Severstal employees get ample opportunity for personal and professional growth and development. We encourage their desire to develop and learn, incorporating it into the management culture we promote. We work systemically to identify and satisfy training needs, to help employees acquire the necessary qualifications and competence.

Every year, company professionals and managers participate in industrial and functional seminars and conferences, to improve their qualifications and exchange experience with their colleagues. Engineering refresher programmes are intended primarily for employees developing new types of products. Those employees who have vast knowledge of technology and production of our strategic products, can teach others, acting as tutors during advanced qualification courses for foremen, and adaptation seminars for young professionals.

Our major businesses have their own centres where employees receive training in the most popular professions.

Besides developing their professional skills, employees have an opportunity to improve their management skills and personal performance by participating in relevant programmes organised both by us and by specialist educational institutions.

We place great emphasis on identifying potential successful managers among our employees and on training them intensively. We promote opportunities for employees to develop their careers and realise their potential through a system of HR committees, within specific functions, divisions and at company level.

Corporate training programme for managers – Achieve More Together

Last year we embarked on a corporate training programme called Achieve More Together, created specifically to improve the quality and efficiency of projects undertaken by Severstal’s Business System. Its five modules help managers acquire the knowledge and practical skills needed to make changes.

It places great importance on inter-modular work (applying acquired skills in the workplace), as well as videoconferences, communication with experts and managers, and support from business unit HR managers.

About 300 managers from the Severstal Resource and Russian Steel divisions took part in the programme's first module in October 2010. The second module (February 2011) enabled participants to familiarise themselves with the personnel management system and tools we use, and how to use these in their professional activities. The module’s major subjects include organisational structure, personnel selection and adaptation, the cycle of management of business performance and succession, and legal aspects of personnel management.

To support production managers who are taking part in the programme, we also see possibilities for their individual development through coaching and command sessions, with ongoing feedback from the programme's experts and coaches. By 2013 the programme will have involved over 1,000 managers.