“SAMRUK-ENERGY” JSC | Integrated ANNUAL REPORT

“Social” category

Section “Our employees”

Human resources management represents an integral system of personnel management actions, which is implemented in line with the Personnel Policy of “Samruk-Energy” JSC for 2018–2028, and includes rules and regulations that set out key directions, ways and methods of staff relations, aimed at creating a strong, committed and responsible team.

The main goal of human resources management is the development of human potential, improvement of staff management and motivation system, creation of a social protection system.

Personnel structure

“Samruk-Energy” JSC is one of the largest employers in the Republic of Kazakhstan. As of December 31, 2018, the Company’s headcount amounted to 17,719 people.

The share of full-time employees in the reporting period was 100 %.

The structure of the Company’s staff over the past years has remained stable. In connection with the production specifics of the Company’s operations, male employees are involved in the main production areas, whose share of the total staff in 2018 was 73 %. The main share of the Company’s staff consists of employees aged from 30 to 50 years (50 %). The average age of staff in 2018 was 43 years. The average work experience is 11 years. In 2018, the turnover rate was 8 %. The number of top executives hired from among local population is 98 %.

The procedure for employment is conducted in line with requirements of the RK Labor Code and internal regulations.

The Company’s Collective Agreement provides for the minimum period of one month for notifying employees upon termination of employment contracts in connection with a reduction in headcount or number of employees in accordance with the Labor Code of the Republic of Kazakhstan.

The Company does not discriminate its employees based on gender and adheres to an equal approach in obtaining access to training and development programs, career advancement and employment at the enterprise of “Samruk-Energy” JSC group.

In 2018, the Company in conjunction with the European Bank for Reconstruction and Development launched a project on introducing the best international practices in providing equal opportunities in the energy and power sector.

As part of this project, in 2018, the EBRD consultant analyzed the national legislation, local equal opportunities initiatives, the Company’s statistical data as well as the annual admission / graduation of specialists from higher education and vocational schools in the energy professions in the context of men and women. the best international practices in the field of equal opportunities, etc. As a result of these activities, recommendations and an Action Plan for the development of equal opportunities practices were developed. In 2019, the Company plans to sign a Statement of Support for the Women’s Empowerment Principles, developed as part of UN-Women and the United Nations Global Compact.

As of December 31, 2018, the number of women who work at “Samruk-Energy” JSC group of companies was 4,699 people.

Total workforce by gender for 2018

Total workforce by employment type for 2018

Total number of employees by type of employment contract

Total workforce by region for 2018

Staff turnover by gender for 2018

Newly hired employees by gender for 2018

Newly hired employees by regions for 2018

Staff turnover by age for 2018

Staff turnover by regions for 2018

Newly hired employees by age for 2018

The composition of the organization’s employees broken down by gender age group and indicating minority representation

No.

Indicator

Employees

Share, %

1.

Gender

17,719

 

1.1.

Men

13,020

73

1.2.

Women

4,699

27

2.

Minority groups (racial / ethnic, religious, with disabilities)

17,719

 

2.1.

Kazakhs

10,485

59

2.2.

Russians

5,003

28

2.3.

Ukrainians

705

4

2.4.

Uyghurs

344

2

2.5.

Tatars

344

2

2.6.

Germans

253

1

2.7.

Byelorussians

129

1

2.8.

Koreans

60

0.3

2.9.

Others

396

2

3.

Age groups

17,719

 

31.

Under 30 years

3,233

18

3.2.

From 30 to 50 years

9,113

51

3.3.

Over 50 years

5,373

30

Development and career growth

“Samruk-Energy” JSC group of companies seeks to constantly develop and train employees. Personnel training and development is a key success factor in ensuring economical, trouble-free and efficient operation of equipment and the Company as a whole.

The Company’s key directions in the field of professional training are:

  1. training aimed at the development of professional skills and competencies for the successful solution of managerial tasks, the development of leadership competencies and change management;
  2. training in OHS-related matters, electrical safety, industrial and fire safety, environment, which is conducted as required by the RK legislation.

Thus, in 2018, as part of the leadership program, the project “Change Management – Project Sponsor” was organized for employees of 1st level CEOs, and training on change management and coaching skills was conducted for CEO-2 level employees.

“Samruk-Energy” JSC group of companies of has systematized the processes of preparation, retraining and advancing of employees qualification. Employees complete various trainings on personal efficiency management, effective communication skills, successful presentation, effective negotiations. analytical thinking, time management, effective reporting, and more. The programs is implemented both at the workplace and outside the workplace, with the issuance of a certificate or certificate of competence. There are also programs aimed at the professional growth of executives and specialists, and at preparation of a reserve for higher positions.

642 activities on staff training and development programs were carried out in 2018. The total cost of education in 2018 was 358,127 thous. tenge.

Average number of training hours per employee per year, by employee and gender category

Staff category

Total number at the end of 2018

The number of training hours for 2018

Average number of training hours per employee per year

men

women

men

women

Top management

53

9

1 631

277

31

Administrative and managerial staff

815

544

23 270

15 513

29

Production personnel

12 835

3 209

567 353

141 838

44

Service

48

206

1 013

4 321

21

Staff category

Total number at the end of 2017

The number of training hours for 2017

Average number of training hours per employee per year

men

women

men

women

Top management

54

9

1 833

306

34

Administrative and managerial staff

814

542

19 675

13 116

24

Production personnel

12 663

3 166

535 284

133 821

42

Service

50

215

883

3 763

18

Occupational health and safety

In line with 2018 Action plan for management of occupational health and safety and environmental protection issues at the group of companies, all SA have developed and, according to the established procedure, approved work plans for occupational health and safety, as well as carried out a number of organizational and preventive measures.

In accordance with Article 203 of the Labor Code of the Republic of Kazakhstan, production councils (formerly committees) for occupational health and safety were established at all SA of the Company. It comprises representatives of an employer, representatives of employees, including technical inspectors for labor protection on a parity basis.

The international standard “Occupational health and safety management system OHSAS-18001” was introduced.

“All the Company subsidiaries and affiliates’ workplaces were assessed for working conditions. In accordance with the assessment of workplaces, workplaces with harmful and dangerous working conditions have been identified. At the same time, all employees are provided with the appropriate privileges, including personal protective equipment and protective clothing in compliance with the RK legislation.

All companies of “Samruk-Energy” JSC developed action plans for improvement of working conditions of employees who work under harmful and dangerous working conditions.

The Company has introduced the practice of conducting planned and unscheduled (sudden) inspections to comply with the requirements of international standards, regulatory and legal acts of the Republic of Kazakhstan, and internal regulatory documents of the Company in the field of occupational safety and health, During the reporting period,10 scheduled inspections were conducted. 9 unscheduled (sudden inspections).

An extended meeting on occupational safety and health-related matters was held at the Company. The reports of CEOs of group of companies on the work performed in the area of occupational safety and health were heard, based on results of which the policy documents on subsidiaries’ development strategies relating to the prevention of industrial accidents were adopted.

An on-site seminar with executives who are in charge of occupational health and safety matters at the Company's subsidiaries and affiliates was held during the reporting period in order to maintain occupational safety. According to the results of the meeting, a protocol was signed, actions on analyzing incidents that did not lead to accidents and on decreasing occupational injuries rate have been developed and are implemented.

A memorandum with national company “KMG” JSC on cooperation and exchange of experience in OHS field was signed. As part of the memorandum of cooperation, executives and specialists of the Company visited “Petro Kazakhstan Oil Products” LLP (Shymkent city). Written agreements with the authorized labor agencies of Almaty, Pavlodar and Turkestan regions on cooperation in the field of OHS were signed.

In order to increase the transparency of “Samruk-Energy” JSC and its subsidiaries reports about the incidents occurred in order to prevent cases with more serious consequences (deaths, accidents), the Company’s Board of Directors approved and put into force a “Moratorium on taking disciplinary actions against those responsible for incidents occurred in the field of occupational safety and health for 2019”.

The purpose of the moratorium: increasing the transparency of the reports of “Samruk-Energy” JSC and its subsidiaries and affiliates on the incidents occurred in order to prevent cases with more serious consequences (deaths. accidents). Moratorium covers near miss, group accidents, and accidents with light and severe outcomes.

As part of the implementation of business transformation project SKE.06 “the introduction of the new model for managing integrated security of “Samruk-Energy” JSC”, the following corporate standards were approved:

  1. Evaluation of OHS and environmental protection management system by executives
  2. Carrying out of leadership behavioral security audit;
  3. OHS and EP risks assessment;
  4. Golden safety rules;
  5. Registration and investigation of incidents;
  6. Motivation of staff for safe behavior.

As part of ongoing work, risks in the area of OHS were identified, their impact and ways of managing them were analyzed.

Moreover, a vertical model of control over the Company’s contractors (customer-general customer-contractor-subcontractor) has been established.

In addition, all “Samruk-Energy” JSC companies’ standard contracts for the procurement of goods, works and services include requirements set for contractors / suppliers / responsible parties regarding their responsibility to ensure safe working environment and living conditions for their employees, as well as to conduct regular audit of observance of the Republic Kazakhstan laws in the field of occupational health and safety.

Requirements for employees of contracting and subcontracting organizations are set out in industry regulations on occupational safety and health, in contracts concluded with contracting / subcontracting organizations, as well as in internal regulatory documents of the “Samruk-Energy” JSC groups of companies. The company checks the availability of documents confirming the training and admission to work in the profession, the presence of qualification certificates; Carries out verification of compliance with the above requirements upon admission to work, as well as in the process of performing work, in accordance with the contract.

Consequently, 100 % training of employees of contracting / subcontracting organizations in safety and labor protection is provided. Also, in accordance with the requirements of the legislation of the Republic of Kazakhstan, an introductory briefing is conducted to visitors and employees of contracting organizations producing work in the territory of the organization’s hazardous production facility.

Registration, the procedure for reporting of workplace accidents was carried out in accordance with Chapter 20 of the Labor Code of the Republic of Kazakhstan “Investigation and accounting of workplace accidents” and other regulations of the Republic of Kazakhstan.

Nonetheless, despite of many preventive and corrective actions taken, 10 work-related accidents were registered in 2018: 2 of them fatal accidents, 5 with serious and 3 with light outcome.

Injury description

2016

2017

2018

Chemical burn

1

Bruise

1

1

Traumatic amputation

Electric injury (thermal burn)

4

2

Fracture

5

4

5

Combined injuries (fracture, bruises, tears of internal organs)

4

1

1

Eye injury

1

Traumatic brain injury. brain concussion

2

Total

15

7

10

The growth of occupational injuries in the reporting period was due to the introduction of a system of transparency in the registration of industrial accidents.

Actions taken to eliminate workplace accidents

The following measures are taken in order to reduce the industrial injury rate at all “Samruk-Energy” JSC group of companies:

  1. All employees are informed about circumstances and causes of accidents.
  2. All production personnel receive unplanned instructions.
  3. Unscheduled test of employees for OR, occupational safety rules knowledge is held at business units at which an accident took place.
  4. Occupational safety days with participation of CEOs of companies are organized on a monthly basis. Actions aimed at elimination of identified violations are taken according to the results of the occupational safety days.
  5. Occupational health and safety services organize comprehensive inspections of equipment. buildings, facilities and workplaces. Action plans with deadlines and persons in charge based on results of comprehensive inspections are developed.
  6. All production personnel are trained according to the Rules for training, instruction, and testing of employees’ knowledge of occupational safety.
  7. Before the repair campaign, all the SA hold seminars and meetings with engineers and technicians of structural subdivisions authorized to give assignments, manage and perform works, with practical trainings on the correct access for teams to perform works and formalize assignments.
  8. At least once every five years, enterprises are certified for workplaces according to working conditions.
  9. Scheduled replacement of equipment that exhausted its service life and posing a serious threat to production personnel is carried out.
  10. The practice of conducting leadership behavioral safety audits is implemented.
  11. The risk maps / registers at workplaces are updated, and additional trainings on identification of hazards and risk assessment for staff are held.

Personnel assessment

In compliance with existing Rules for performance appraisal of Company’s employees, the following is assessed:

  • a comprehensive (final) assessment of goals and competencies, which includes: self-assessment, review meetings, review of skills, potential assessment and provision of employees with directions on performance improvement and opportunities for development.
  • an interim review of employees performance, which is carried out every quarter with a view to monitor the degree of achievement of goals during the reporting period.

According to final assessment of administrative employees conducted on the basis of performance during 2018 (calibration session), talent grid was made, as well as recommendations for the development of knowledge, skills, competencies of employees, inclusion in the Personnel Reserve Company, as well as the revision of wage levels were made.

In compliance with the resolution of “Samruk-Energy” JSC Management Board dated 10.09.2018 (Minutes No.17) and as part of the project  “Transition to the target organizational structure” 436 employees from among administrative and management staff of “Ekibastuz SDPP-1” LLP were evaluated for compliance with the requirements of positions in 2018.

In order to establish compliance of employees qualifications with positions held, evaluate the level of professional training, staff the structural units with highly qualified specialists, increase the moral and material interest of employees, evaluation activities are carried out on a regular basis. In 2018, the regular certification of employees was held at “Ekibastuz SDPP-2 plant” JSC and an extraordinary certification at “Alatau Zharyk Company” JSC.

Our youth

The Company implements a comprehensive approach to working with young employees and engaging young professionals to work at the Company, which is confirmed by “Samruk-Energy” JSC Youth Policy for professional and personal development, development of leadership, professional and managerial competencies.

There is Young Professionals Board at the Company, which aims to create and implement a unified youth policy at the Company, build an active life position among young professionals, unite them to realize their own potential and ensure the leading position of the Company.

This youth movement strengthens its position every year. Young activists take part in production and public life. There are many creatively gifted people among them, holidays and corporate events are organized owing to their efforts. Power Engineer’s Day celebrations, leisure activities for young people, parades, club of the cheerful and sharp-witted, professional competitions “Best in Profession”, creative competition “Light Your Star” are organized with the participation of members of the youth movement.

KVN game (the game of the club of the cheerful and sharp-witted) was held among the employees of “Samruk-Energy” JSC group of companies for the first time in Astana city in 2018. The game was held in the state language under the slogan “Our strength is in unity.”

The youth asset of the Company’s group amounted to 3,813 people in 2018.

In 2018 the Company took 7 young specialists for internships as part of the implementation of “Zhas Orken” program and in order to provide young specialists with conditions for completing internships.

Almaty University of Power Engineering and Telecommunications held the Republican Olympiad (contest) in Physics and Mathematics with the support of “Samruk-Energy” JSC.

More than 60 people participated in the contest, students from nine technical universities of the country and schoolchildren were among therm. Students competed in two subjects: “Power industry” and “Thermal Engineering”. High school students demonstrated knowledge in physics and mathematics.

At present, the Company cooperates with leading domestic universities for completion of pre-graduation internship. During the reporting period, 372 students completed undergraduate internship at the Company.

Also, the agreement on completion of internships with elements of dual training was signed between Almaty University of Power Engineering and Telecommunications and “Almaty Power Plants” JSC. The dual system of education today remains one of the most effective forms of training of employees and technical specialists in Kazakhstan. The principles of dual education have already been introduced at many universities and colleges.

As part of the social partnership, “Bogatyr Komir” LLP signed the agreement on employment of young specialists under “Young employee’s internship” program with Employment and Social Programs Department of Ekibastuz city Mayor’s Office and Ekibastuz city Employment Center.

Bogatyr Komir company’s social development department together with volunteers of the united youth movement arranged a team building for young specialists of “Samruk-Energy” JSC group of companies’ subsidiaries such as “AZhC” JSC, “Almaty Power Plants” JSC, “Ekibastuz SDPP-2 Plant” JSC, “Ekibastuz SDPP-1 named after B.Nurzhanov” LLP, “First Wind Power Plant” LLP and “Energy Solutions Center” LLP, who gathered from different parts of the republic in the most picturesque place of Pavlodar region – Bayanaul National Park.

The game “TOPBrain” was held at “Alatau Zharyk Company” JSC to support intellectual employees as part of the development of the youth movement. The event was attended by employees of “Alatau Zharyk Company” JSC, which are members of the NGO “Local Trade Union “Seriktes” and guests from the Youth Association “Zharkyn Bolashak” – volunteers of “Almaty Power Plants” JSC.

Republican forum of working youth was held in Zhambyl region, which gathered young professionals from the medical, oil and gas, transport and energy industries. Such type of event was held in the republic for the first time and was organized by the Federation of Trade Unions of the Republic of Kazakhstan.

Young professionals of “Samruk-Energy” JSC power holding company, including specialists of its subsidiaries – “Shardarinsk HPP” JSC, “Moynak HPP” JSC, “Bogatyr Komir” LLP, “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2” LLP, “APP” JSC, “AZhC” JSC. Young power engineers and miners of the holding company united at the forum of NGO “Local trade union “Samruk-Energy”.

A wide range of topics and issues that are relevant today such as youth participation in all spheres of economy and politics to the theory and practice of the trade union movement in the country were discussed at the meeting of young professionals; Deputies of the RK Majilis (lower house of the RK Parliament) shared their visions and experiences with the forum participants.

Young employees of the Company actively participate in sporting events: football, volleyball, basketball, table tennis, swimming, chess, checkers, pool and etc.

Motivation and remuneration

Employee motivation is one of the basic principles of the Company’s Personnel Policy. Creating an effective system of motivation of workers contributes to the retention of highly professional specialists and stimulates them to more productive activities.

The Company’s remuneration system is based on the following basic principles:

  1. motivation of employees to achieve the goals of the Company by increasing the efficiency of individual labor, the activities of the structural unit and the achievement of the strategic goals of the Company;
  2. the competitiveness of the social package in the labor market, taking into account the regional characteristics and specifics of the business;
  3. transparency – ensuring that all employees understand the principles of forming the structure and level of remuneration while maintaining confidentiality;
  4. compliance of the wage system with current legislation.

One of the main tools for ensuring a decent standard of living for the Company’s employees is social payments and benefits. In order to create favorable conditions for effective work, employees are provided with social support in the form of material assistance and monetary compensation, and material assistance is provided for the provision of annual labor paid leave.

In addition, in 2018, the following items became components of social support for workers: employee insurance against accidents during the performance of labor (official) duties, annual medical examination of employees, sick pay, one-time health care assistance, treatment, financial assistance in receiving a work injury.

The Company, in accordance with the Collective Agreement, provides for: overtime pay, pay for work on holidays and weekends, at night, allowances and surcharges, pay for employees engaged in heavy work, work with harmful (especially harmful), dangerous working conditions, additional paid annual leave. One-time promotion in connection with the anniversary (50, 55, 60 years).

Employees who combine work with training in educational institutions are also provided with additional leave for the period of examination or adjustment sessions, the preparation and protection of the graduation project (work), and the passing of final exams.

The average salary of employees at “Samruk-Energy” JSC group of companies for 2018 increased in relation to the same indicator by 18 % – from 198,051 tenge to 234,140 tenge. The growth of the average salary of the production personnel was 18 % – from 183,641 tenge to 215,945 tenge, the administrative staff was 19 % – from 372,137 to 443,570 tenge.

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation

No.

Indicator

Value (2018)

Measurement unit

1.

Minimum wage

28.3

thous. tenge

2.

Wage of entry level employee in an organization in significant regions of operation

140.7

thous. tenge

2.1.

Men

144.9

 

2.2.

Women

136.3

 

3.

Ratio

497

%

3.1.

Men

103

%

3.2.

Women

97

%

No.

Indicator

Value (2018)

Measurement unit

1.

Minimum wage

24.5

thous. tenge

2.

Wage of entry level employee in an organization in significant regions of operation

124.6

thous. tenge

2.1.

Men

126.3

 

2.2.

Women

132.8

 

3.

Ratio

508

%

3.1.

Men

515

%

3.2.

Women

542

%

There is an integrated performance management system (IMS), which takes into account both the performance of employees and the level of development of their capacity. The variable part of the salary is directly dependent on the results of this assessment.

Percentage of employees who are subject to periodic performance and career development evaluations

No.

Indicator

Value

1.

Total number of employees (headcount) at the end of 2018

17,719

2.

Number of employees who passed formal performance assessment, incl.:

1,288

2.1.

Men

592

2.2.

Women

696

3.

The share of employees who passed official performance assessment

7 %

3.1.

Men

3 %

3.2.

Women

4 %

State awards in 2018

Full name

Reward type

Company name

 1

Aimenov Hanat Armiyanovich – Head of Government Relations and Communications Office

“Eren enbegi ushin” medal

“Samruk-Energy” JSC

 2

Serikbaev Satybaldy Abdіgaparuly – Advisor to the Chairman of the Board

“Qurmet” medal

“Alatau Zharyk Company” JSC

 3

Sharikpaev Kurmanali Mamyrkhanovich – Traction unit machinist of Bogatyrsky loading and transport management

“Qurmet” medal

“Bogatyr Komir” LLP

Social responsibility

Projects of social corporate responsibility are aimed at providing safe and comfortable working conditions, professional development, solving housing problems and improving the quality of life of employees and their families, financial support for veterans and pensioners, and support for social communities. In order to develop the principles of social partnership, occupational safety, achieve a higher level of ensuring labor rights of employees, the work on obtaining of Certificates of Trust is conducted at “Samruk-Energy” JSC group of companies.

“Samruk-Energy” JSC group of companies has introduced the system of regular monitoring of the social stability rating and the indicator of staff involvement providing for the identification of problems and alarming zones and timely response to them, including through the improvement of the social package of employees, cultural and professional events, the formation of a corporate culture and management of internal communications and etc.

Conciliation Committees were established and operate at “Samruk-Energy” JSC group of companies; they consist of employer’s representatives and representatives of trade unions’ employees, whose main responsibility is to raise awareness among staff and procedures for handling complaints and inquiries. “Samruk-Energy” JSC group of companies strives to provide a competitive social package, the availability of which allows attracting qualified employees. Compensation and benefits are designed to improve the welfare and level of social protection of employees and their families. The number of social payments and benefits provided to employees of the Company’s Group in accordance with signed collective agreements include:

  1. financial assistance for health care provided at vacation, for the birth of a child;
  2. financial assistance for burial (an employee and immediate relatives), for the treatment of retired employees, for emergency situations. etc.
  3. financial assistance in connection with loss of income (registration of maternity leave or leave due to the adoption of a newborn child);
  4. voluntary health insurance;
  5. health resort treatment;
  6. a one-time incentive payment in connection with employees anniversary celebration (50, 60 and 70 years);
  7. expenses for holding festive. cultural and sports events;
  8. payment of loans;
  9. allowance for injury and loss of primary income earner;
  10. New Year’s gifts to children, etc.

“Bogatyr Komir” LLP provides annual financial assistance to events under social partnership agreements with Ekibastuz city mayor administration, charitable support was received by city non-profit organizations and educational institutions, such as the sponsored lyceum № 6, the Ekibastuz children’s fund, and the public association “Environmental Protection” and others. Religious confessions and Ekibastuz city football club also received financial assistance.

New events were organized at the enterprise along with traditional Labor Day, International Women’s Day, Victory Day and many others. Youth activists of “Samruk-Energy” holding company’s portfolio companies supported most of them.

A five-minute break for physical exercises were organized at the structural units of the enterprise, as well as a citywide marathon in support of the famous Kazakhstani boxer Gennady Golovkin, which was attended by over one thousand people, and an e-sports competition were arranged in order to promote and develop mass sports.

The 5th Sports Festival (Spartakiada) for the Cup of “Samruk-Energy” JSC Chairman of the Board JSC was held among employees of “Samruk-Energy” JSC group of companies at the sports center of Nazarbayev University.

Sports types such as futsal, volleyball, table tennis, arm-wrestling and chess were presented at the Festival. 9 teams took part in the competition, including the Head Office of “Samruk-Energy” JSC, “AZhC” JSC, “Almaty Power Plants” JSC, “AlmatyEnergoSbyt” LLP, “Moynak HPP” JSC, “Ekibastuz SDPP-1” LLP, and “Ekibastuz SDPP-2 Plant” JSC, “Bogatyr Komir” LLP and “RES Services” LLP.

Events related to the preservation of Kazakhstan cultural heritage – the celebration of 150th anniversary of the famous akyn (poet), singer, composer Estay Berkimbayev and the 200th anniversary of Musa Shormanov, public, public official and researcher of the traditional culture of Kazakhs also took place with the assistance of our company.

Almaty Power Plants annually organizes a drawing competition among the children of employees, which is held for the sixth time. 78 works made in different genres and techniques were exhibited.

As part of the development of corporate culture, employees of energy holding subsidiaries – Alatau Zharyk Company, Almaty Power Plants, AlmatyEnergoSbyt and Samruk-Energy Head office took part in the Almaty Marathon.

“Samruk-Energy” JSC team made its debut at the International Futsal Tournament “Syberia Power Industry Cup – 2018”, which took place in Novosibirsk.

On the eve of the World Environment Protection Day, “Samruk-Energy” JSC supported the Eco-recycling “V recycling” campaign, during which solid household waste and electrical household appliances were received for further processing and disposal in Astana.

Employees of “Samruk-Energy” JSC head office collected more than 120 kg of waste paper, plastic and polyethylene products, textiles, etc. All this was sent for recycling and disposal.

“Samruk-Energy” JSC supports environmental actions aimed at preserving and protecting the environment. Separate garbage collection exists in many developed countries and it is gratifying that such experience comes to Kazakhstan and. it is essential that our capital Astana should set the tone in this. Our company’s policy in the field of “Sustainable Development” is aimed, among other things, at reducing the negative impact on the environment and society.

In order to create healthy and safe working and living conditions, the enterprises of the Group determined the procedure for providing workers with special protective equipment, milk, soap and detergents; canteens, lunch and break rooms are available at the production workshops that work according to shift work schedules.

For the employees of the Company’s group, partial and full reimbursement of expenses for health resorts and inpatient treatment is provided when they go on annual leave, as well as for the cost of vouchers to children’s health camps for the children of employees.

So, this year, employees’ children were provided with vouchers for “Edelweiss”, children health camp of Power Engineers' Trade Union.

An integrated approach to realizing opportunities for decent and productive work in conditions of equality, security and respect for human dignity, conducting an effective personnel policy will contribute to improving performance, increasing the professionalism of employees, raising corporate culture, respecting and protecting labor rights, as required by the Labor Code Republic of Kazakhstan.

The company undertakes to:

  • strengthen and develop the principles of social partnership and collective bargaining;
  • make social payments in order to retain, attract qualified employees and create motivation for the Company’s personnel.

In order to create a system of centralized monitoring of social attitudes of employees at the enterprises of “Samruk-Energy” JSC group of companies, studies to determine the social stability index and staff engagement index were conducted.

According to the results of these studies, the social stability index for “Samruk-Energy” JSC group in 2018 was 64 % and is described as average.

The degree of involvement of the administrative and management staff of the Company’s group of companies also amounted to 53 %.

An important task in the Company’s social policy is to ensure the protection of employees and their families.

So, social payments across the group of companies were made in the amount of 3,229,763 thous. tenge in 2018. For the same period in 2017, the costs of social benefits amounted to 2,902,523 thous. tenge.

In the structure of payments, the main share is made up of expenses: a one-time allowance for healthcare when granting a leave – 32 %, treatment of employees in health resorts – 6.3 %, one-time benefit in connection with employees anniversary (50, 60 and 70 years) – 3 %, financial assistance in connection with the birth of a child – 3 %, expenditures for festive, cultural and sports events – 2.3 %, etc. of the total amount of social payments.

As part of the development of corporate culture in the reporting year, the Company group held cultural and leisure events dedicated to the celebration of the Women’s Holiday – March 8, Nauryz holiday, Constitution Day, Energy Day with honoring distinguished employees and awarding state, departmental and industry awards of the CIS Electric Power Council, Kazakhstan Association of oil, gas and energy sector organizations “KAZENERGY”, ALE “Kazakhstan Energy Association” JSC, ”Samruk-Kazyna” JSC, etc.

Share of employees under collective bargaining agreement

No.

Indicator

Value (2018)

Measurement unit

1.

Total employees (headcount) as of the end of 2018

17,719

people

2.

Including employees under collective bargaining agreement for 2018:

17,151

people

3.

Share of total employees under collective bargaining agreements:

97 %

%

Payments and benefits provided to employees working on a full, part-time or temporary basis

No.

Indicator

For full-time employees

For employees with part-time or temporary employment

1.

Payments and benefits to employees

 

 

1.1.

Life insurance

Provided

Provided

1.2.

Healthcare (medical insurance)

Provided

Provided

1.3.

Compensation for disability

Provided

Provided

1.4.

Maternity/paternity leave

Provided

Provided

1.5.

Granting pension (one-time payment upon retirement)

Provided

Not provided

1.6.

Transfer of company shares into ownership

Not provided

Not provided

1.7.

Other (health resorts treatment, financial assistance in connection with the birth of a child, financial assistance for the treatment of family members, financial assistance for rehabilitation)

Provided

Provided

Human rights

Employees have the right to collective bargaining in the context of current legislation through permanent Conciliation Commissions, Committees for the settlement of social and labor conflicts.

The recruitment procedure in the Company is carried out in accordance with the Rules for the competitive selection of personnel for vacant positions and the adaptation of new employees at “Samruk-Energy” JSC using testing and by complying with principles of transparency and meritocracy. The Company follows the principles of fair and equal treatment of employees when carrying out personnel search and selection procedures, as well as in the current practice of personnel management. The company strives to strictly observe the interests and rights of employees, as well as to provide employees with equal opportunities regardless of race, nationality, language, attitude to religion, belief, place of residence, and any other circumstances. The company provides maximum assistance in preventing any form of discrimination, the use of child and forced labor, as well as the selection and promotion of personnel solely based on professional skills and knowledge.

10 trade union organizations comprising 11,904 people operate in order to regulate and protect the professional, economic and social labor rights and professional interests of the Company’s employees.

The trade union organization of the Company plays an important role in the development of proposals on laws and regulations that deal with social labor rights of employees, as well as on social and economic policies, creation of social programs and on other issues in the interests of trade union members; also it participates in the implementation of activities on social protection of employees – union members who were dismissed as a result of the reorganization or dissolution of an organization, is involved in resolving group labor disputes. The trade union role at the Company is to assist in reducing tensions during the implementation of agreed activities on streamlining of the Company’s operations, protection of interests of employees – members of the Company’s trade union in terms of compliance with labor laws, established social guarantees and compliance with contract provisions.

Number of complaints about the practice of labor relations filed, processed and settled through formal grievance mechanisms

Indicator

value

1.

The total number of complaints about the practice of labor relations filed through formal grievance mechanisms during 2018, among them

84

1.1.

Processed during the reporting period

84

1.2.

Settled during the reporting period

72

2.

The total number of complaints about the practice of labor relations filed before the beginning of the reporting period and settled during the reporting period

12

Presentation of health and safety issues in formal agreements with trade unions

Indicator

value

1.

Do official agreements (global or local) with trade unions address health and safety issues

yes

2.

If yes, information on the extent to which health and safety issues are covered by local agreements signed by an organization. Local level agreements usually address issues such as:

 

2.1.

Individual protection means

yes

2.2.

Joint health and safety committees with participation of representatives of management and employees

yes

2.3.

Participation of employees’ representatives in health and safety inspections, audits and accident investigations

yes

2.4.

Education and training

yes

2.5.

Grievance mechanism

yes

2.6.

The right to refuse dangerous work

yes

2.7.

Periodical inspections

yes

3.

If yes, information on the extent to which health and safety issues are covered by local agreements signed by an organization. Local level

agreements usually address issues such as:

 

3.1.

Compliance with recommendations of the International Labor Organization (ILO)

yes

3.2.

Actions or mechanisms for solving issues

yes

3.3.

Commitments to target performance standards or the level of applied practical

approaches

yes

Aspect “Fight against corruption, including extortion and bribery”

“Samruk-Energy” JSC updated its anti-fraud and corruption policy in September 2018. The document was developed in order to create a shared understanding among “Samruk-Energy” JSC employees and other persons about “Samruk-Energy” JSC zero tolerance for fraudulent and corrupt actions in all of its forms, and with a view to mitigate the risk of fraud and involvement of “Samruk-Energy” JSC in corrupt practices.

The text of the Policy in Kazakh, Russian and English languages was posted on Samruk-Energy’s website – https://www.samruk-energy.kz/images/2016/ku/ust_razv/politika_protiv_korrupcii.

100 % of “Samruk-Energy” JSC employees were familiarized with the Anti-Fraud and Corruption Policy in 2018. The results of test for the knowledge of the anti-fraud and corruption policy evidenced that “Samruk-Energy” JSC employees are 100 % competent in this field.

Alongside with this, in order to minimize and eliminate the risk of corruption, the Company implements a Compliance Program. The program ensures control over the execution of anti-corruption activities, including the evaluation of corruption risks. The activities implemented under the Compliance Program were described on page 25 of this Annual Report.

“Samruk-Energy” JSC and the group of companies’ officials and employees are regularly checked for facts of fraud and corruption.

Following the results of 2018, the group of companies has not recorded any confirmed facts of corruption, fraud and bribery at “Samruk-Energy” JSC group of companies.

For prevention purposes, the Company created "Samruk-Energy" JSC anti corruption action plan. Following 2018 results, all activities were fully implemented in timely manner.

Aspect “Safety and health care of residents of regions of operation”

Over the years, within the framework of corporate social responsibility, the Company contributes to the development of regions where it operates and maintains continuous interaction with local communities with regard to matters of Company’s participation in the development of local infrastructure, improving the environmental situation in the region, social support and others.

In order to facilitate the employment of the population, the enterprises of the Company’s group provide the local employment authorities with information on the availability of job openings describing working conditions and wages for inclusion in the database of current vacancies and projected jobs.

“Samruk-Energy” JSC group employees participate in charity on a regular basis: providing financial assistance to low-income families injured by natural disasters.

All employees of “Moynak HPP” JSC were provided with company housing (77 residential buildings) – comfortable 3, 4, 5 room houses with all amenities. The houses have 6 acres plot of land attached to houses with outbuildings. A point of sale for the provision of food and essential commodities was opened. There is a kindergarten for 30 children in the village of the Operation service for children of the Company’s employees. “Moynak HPP” JSC provides ongoing support to a kindergarten located in Moynak village.

“ESDPP-2 Plant” JSC is a town-forming enterprise for the village “Solnechny”, where 60 % of the total number of employees work, “ESDPP-2 Plant” JSC has social facilities: medical and preventive services, a swimming pool, a hostel of the hotel type, works on landscaping and gardening of the territory are constantly carried out.

Funds for their maintenance and operation are allocated every year from the budget of the power plant.

The Group’s entities participate in citywide volunteer clean-up events, landscaping and gardening of adjacent territories, interact with religious denominations and public foundations, provide financial assistance to retired employees, veterans of the Great Patriotic War, low-income families, disabled people, single mothers in the form of monthly subsidies, one-time money payments. grocery baskets, discount vouchers, etc.

In addition, it should be noted that “Samruk-Energy” JSC group of companies shares the main provisions of the precautionary principle. Before launching new projects and facilities, in the course of environmental impact assessment, the Company always take actions aimed at informing the public about the planned activity and its possible impact, so as to identify public opinion and consider it in the impact assessment process.

The Company developed the Plan for communications with stakeholders, which describes the activities of informing each individual group of stakeholders. Detailed information is available in “Stakeholder Engagement” section.

“Bogatyr Komir” LLP fully supports various social initiatives aimed at improving the quality of people’s live, and actively participates in urban social programs.

In 2018, works on the improvement and greening of the assigned territories were carried out – the layout of the adjacent territory, the care of lawns and greenery.

To improve social conditions and improve the quality of recreation on the territory of “Zhasybay” RC, construction and repair work was carried out in order to maintain the infrastructure of the recreation center.

3,193 people spent their vacations in vacation resort over eleven summer seasons. 1,297 children had rest in the children’s health center. 200 places were allocated for orphans and low-income families.