As of December 31, 2018, headcount of TVEL Fuel Company was 22.469 persons. Overall majority of subsidiaries' employees (over 98%) work under the open-term labor contracts and on normal business hours (40 hours a week). As of the end of the reporting year the headcount of employees under civil law contracts was 10 persons, external part-timers - 635, employees on maternity and childcare leave - 342.

About 1.5% of the Company's average headcount took parental leave in 2018. The majority of them are women (96.5%).

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.

2019 ARRANGEMENTS

• payment of up to 50% of annual premium in advance (in order to increase the employees’ social security level due to volatile economic environment and rise in inflation);
• salary indexation in all subsidiaries of TVEL Fuel Company, except for TVEL JSC (scheduled indexation % - not less than consumer price index);
• there might be increase of annual premium rate in certain enterprises (increase by per cent corresponding to salary indexation per cent);
• selective reconsideration of the employees’ personal additional incentive following the results of the annual assessment;
• updating of local salary and benefits disclosure documents in order to improve their efficiency (reconsideration of annual premium calculation, approaches to PAI identification following the results of the assessment, etc.);
• elaboration and implementation of measures aimed at increase of variable part of total remuneration depending on personal and collective labor efficiency.

KPI SYSTEM FOR TOP EXECUTIVE MANAGEMENT AND INFERIOR MANAGEMENT

When entering employment in case of residential mobility relocation payment is provided. Upon termination of employment only payments identified by Russian Labor Code are made.

Remuneration consultants are not engaged in determining of remuneration rate. Remuneration rate must be approved by ROSATOM.

NON-MATERIAL BENEFITS FOR EMPLOYEES

System of non-material benefits for the employees of TVEL Fuel Company is aimed to encourage professional growth, increase in efficiency and performance, attainment of the goals and the best final results of activities, enhancement of the work quality and arrangement of conditions for creative activity.

Achievements of the employees of the Company are marked with state awards, awards of Rosatom and TVEL JSC in accordance with the Uniform Industry-Specific Award Policy.

During the year 2018 in celebration of commemorative days and anniversaries, about 3 thous. workers and veterans of TVEL Fuel Company received rewards and bonuses for best performance, contribution to development of enterprises of the Fuel Company and nuclear industry, in particular:

• national awards - 5 employees;
• awards of Rosatom State Corporation – more than 1.000 persons, including merit badges – 174 workers and veterans, labor merit badges “Veteran of Nuclear Power and Industry” – 161 persons;
• awards of TVEL JSC – more than 1.000 persons.

DEVELOPMENT OF STAFF CAPACITIES

People are an important asset of the Fuel Company, which provides internal stability and business modernization. Traditionally, HR development and training is one of the top priorities of HR policy of TVEL Fuel Company.

The purpose of HR development program is to support business priorities of Rosatom State Corporation.

Priority development programs at the Company’s enterprises:

• Program of Succession Pool Formation and Development: “Rosatom Assets”, “Rosatom Assets. Basic Level”, “Rosatom Capital” and “Rosatom Talents”. The program is aimed at increasing management competencies in accordance with a single value model, as well as involving staff in key sectoral strategic projects and industry tasks.
• The globalization participants development program Global Professionals aimed at client-oriented approach development, readiness for change, innovation and knowledge acquisition according to international standards.
• Еraining program in the field of safety culture aimed at building workers’ understanding of general principles of safety culture, developing a leadership position in terms of safety, creating an atmosphere of openness and trust in the team.

Development of Succession Pool and Succession Plans

TVEL Fuel Company pays great attention to development of the succession pool and training of the Company's managers.

Training in this sphere is built on the following principles:

• correlation with business strategy and industry development;
• focus on the most advanced international leadership development practices;
• analysis of the uniform industry-specific development system for managers

Demand for Qualified Staff is met by

• long-term planning of demand for young specialists in terms of industry-specific training (for 2018-2028);
• cooperation with base universities and implementation of target training of required specialists;
• carrying out of special contests for recruiting young specialists with advanced capabilities (TeMP Young Professionals Tournament).
• participation of workers in industrial and national professional skills competition under WorldSkills standards;
• implementation of joint educational programs, special courses within the sphere of main departments at enterprises of the division;
• internal mentorship system in key jobs;
• development of professional skills at relevant higher educational institutions and vocational secondary schools;
• implementation of rotation of senior executives of the division.

The succession planning and MPS formation are based on the results of Annual Performance Assessment “RECORD”. The prime tool used to form and approve the managerial succession plans of the Fuel Company is the review of personnel capacity by holding round tables at all levels of the Fuel Company management. The decision to include an employee in the MPS list is taken following the results of independent evaluation, which contains the assessment of potential, motivation and compliance with corporate values. An employee may be included into the succession plans on the basis of his/her manager's decision taken with due regard to his/her achievements in the past period.

Preparation of reservists of senior, middle and entry-level managers to career development is carried out in accordance with the industry-specific development MPS programs “ROSATOM Assets”, “ROSATOM Assets. Basic Level”, “ROSATOM Capital”, and “ROSATOM Talents”. The development programs are focused on raising the level of corporate and managerial competencies of the MPS participants.

PERSONNEL EFFICIENCY ASSESSMENT

The Company has been successfully implementing the RECORD annual personnel performance assessment system the main objective of which is to ensure compliance of professional and technical knowledge and skills level and positions held or planned.

The assessment is carried out to solve the following tasks:

• confirmation of the compliance of the current level of professional and technical knowledge and skills of the assessment participants with the requirements established in accordance with the local regulatory legal acts of the Company;
• database creation concerning the level of professional and technical knowledge and skills of industry employees applying for filling open managerial positions;
• motivation for advanced training and professional growth;
• obtaining information for the development and updating of training and development programs.

The key principles of assessment are objectivity and relevance. Objectivity is achieved by evaluations calibration (alignment of evaluation criteria for employees of different divisions subordinate to one superior manager) by heads of departments and the superior leader at round table. Assessment of corporate values is performed only in relation to the behavioral indicators of the employee associated with his/her professional activities and influencing his/her performance.

PROFESSIONAL COMPETITIONS

For 10 years TVEL Fuel Company has been holding professional skills competitions, since 2016 they are oriented to WorldSkills standards.

The III industrial Rosatom Championship WorldSkills – AtomSkills 2018 was attended by 450 participants and about 500 experts, the TVEL Fuel Company team consisting of 139 skilled specialists, 69 participants and 70 experts, participated in 20 contests of 27. The team of TVEL Fuel Company won 3 gold, 5 silver and 3 bronze medals.

The Company representatives won a gold and two bronze medals in the WorldSkills Russia Skills of the Wise National Competition for professionals over 50 years of age. Representatives of TVEL Fuel Company won the V National Championship of cross-industry vocational professions WorldSkills Hi-Tech in three nominations and were awarded two gold and one silver medal.

PARTNERSHIP WITH EDUCATIONAL INSTITUTIONS

Recruitment of promising young people is one of the top priorities in HR policy of TVEL Fuel Company. By hiring young specialists, the Company intends to preserve and strengthen its position in the sphere of science and advanced technologies in the years ahead.

Cooperation with educational institutions is carried out on the basis of the communication plan on work with universities and graduates; the plan that is being continuously updated on an annual basis.

With a view of occupational guidance for schoolchildren the Company’s enterprises organize excursions, meetings with young specialists, information and educational activities.

The major areas of cooperation with educational establishments of higher and secondary education are the following:

• raising awareness among students and graduates on possibilities of professional growth in the enterprises of TVEL Fuel Company, as well as TVEL FC and ROSATOM State Corporation brand promotion;
• arrangement of educational and on-the-job trainings at the premises of the Company's enterprises;
• implementation of joint educational programs, special courses within the sphere of main departments:
  • Branch of the 9th Department of MEPhI NRNU and complex branch of the Department of D. I. Mendeleev University of Chemical Technology of Russia and M. V. Lomonosov Moscow State University of Fine Chemical Technologies at VNIINM JSC;
  • Specialized Department of “Design and Engineering Support of Mechanical Facilities” of Stoletovykh Vladimir State University at KMZ VPA JSC;
  • Specialized Department of Seversky Institute of Technology of MEPhI NRNU “Radiochemistry” at the premises of SGChE JSC;

In 2018, the enterprises of the Company offered practical training to 600 students of higher educational institutions and vocational secondary schools, 38 of them were employed by TVEL Fuel Company. In 2019, the Company expects 500 students to take their practical training.

Over the reporting period the Company employed 81 graduates of the higher educational institutions and vocational secondary schools, 12 of which took target preparation classes for employment by TVEL Fuel Company.

VOLUNTEERING ACTIVITIES

2018 has been declared the Year of the Volunteer. At all times in the history of human race, people helped the needy voluntarily and free of charge. Volunteering activities are aimed at building a socially responsible society. It is based on altruism, unselfishness, generosity, publicity, humanism, mercy, compassion, compassion and humanity.

Rosatom State Corporation approved an initiative for the development of volunteering in the context of a sustainable development management system building. Corporate volunteering has a great social effect and, besides, it is good both for the employees and for the State Corporation. Employees have the opportunity to improve their professional and interpersonal skills, develop their leadership potential. A company with a corporate volunteering system demonstrates a high level of social responsibility, which contributes to its overall competitiveness, strengthens the employer’s brand and helps build more effective interaction with stakeholders.

In 2018, the Change support team (CST) in the nuclear industry was launched, within which the CST on volunteer movement was organized.

TVEL Fuel Company actively joined it and took part in the first environmental retreat of Rosatom State Corporation in Obninsk. Together with the city veterans, representatives of the authorities and students of MEPI, they planted trees as required by the city.

Another initiative was implemented at the end of 2018, “Santa Claus-in-charge”. Essentially, employees of TVEL JSC and VNIINM JSC voluntarily initiated and carried out a charity event to support children with disabilities from a boarding school in the town of Vyazniki, the Vladimir region. Caring people of TVEL JSC and VNIINM JSC together with Rusatom Overseas JSC collected more than 200 gifts from a wish-list and sent them to children for a New Year’s Day.

The close work with Rosatom State Corporation allowed TVEL Fuel Company to outline the principles of volunteering, understand the importance of such activities and define the directions and the scope of the movement development in 2019. The very first steps proved that actions of the CST KPI of the volunteering movement cover more comprehensive subjects. In this regard, it was decided to expand the geography of sustainable development activities, which was approved and supported by the management of Rosatom State Corporation. TVEL Fuel Company will continuously develop and promote initiative in this sphere at its enterprises.

For example, TVEL JSC plans to organize a United Donor Day, which will unite non-indifferent people wishing to join a voluntary charity event for blood donation.

Also it plans to continue tree planting in the cities of presence together with Rosatom State Corporation.

Activities sheet is drawn, and organizers will inform about them during the whole calendar year.

YOUTH MOVEMENT

The youth as the most active part of the staff has always been the indicator of changes and driver of the Company’s development.

In December 2016 the Fuel Company approved the Concept of the Unified Youth Policy and determined its priorities:

• promotion of the Rosatom strategy and Values, strategic objectives of TVEL Fuel Company;
• strengthening of business reputation of TVEL JSC;
• implementation of social ideology.

The Unified Youth Policy supposes participation of young specialists in historical work, development of corporate science, establishment of new production units in order to provide the flow of workforce into the cities of presence, increase of personnel engagement, in implementation of the strategic initiatives of TVEL JSC “Social Responsibility”, “Environmental Responsibility”, etc.

Sectoral policy in the field of the youth movement was approved in 2018. Following the results of the Youth Congress, Director for Global Development of TVEL JSC D.A. Bazhenov was elected as Divisional youth representative at TVEL Fuel Company, as well as leaders of the youth core bodies at the Company’s enterprises.

In the reporting period, the format of the youth movement activities was reviewed, the 2019 agenda was set, a pool of active participants having their own projects and eager to actively engage in activities was formed.

INTERACTION WITH TRADE UNIONS

Every employee has the right to join a trade union organization. Primary trade unions function in all enterprises of TVEL Fuel Company. The management of the Company and Rosatom support their employees’ membership in trade union organization. Share of employees being the members of trade unions reaches 98% in some subsidiaries.

Within the framework of social partnership development program, the management of TVEL JSC regularly holds quarterly joint meetings with the Russian Trade Union of Nuclear Energy and Industry Workers (RUNPIW) and the chairmen of primary trade union organizations of TVEL Fuel Company. Participants of those meetings discuss the issues related to the activities of TVEL Fuel Company and development prospects. Besides, 2 meetings of working groups were held jointly with RUNPIW in 2018.

OCCUPATIONAL HEALTH & SAFETY

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM

The main directions, directives and commitments in the sphere of health and safety of TVEL Fuel Company’s workers are recorded in TVEL JSC Health and Labor Protection Policy.

System-based application of the guiding principles of the Policy, the uniform methodology for the identification and assessment of occupational risks allows the Company to reduce the impact of harmful and hazardous production factors in the workplace, to allocate targeted funds to solve the most important labor protection problems.

Priority goals and objectives aimed at reducing occupational risks make an integral part of the planning process; they are included in Occupational Health and Safety Objective Achievement Program. Goals are updated annually and assume the special assessment and the improvement of working conditions, reducing injuries, increasing awareness and competence to perform job tasks in a safe manner. In 2018 these positions were also a priority.

Development and improvement of safety culture is the priority direction within the corporate Integrated Management System. In 2016 TVEL JSC initiated the process of incorporation of safety culture into the Management System. Organizational and functional structure and core elements of development and improvement of safety culture in TVEL Fuel Company were developed and introduced.

Standard of the Fuel Company “Procedure for Development and Improvement of Safety Culture” is implemented by TVEL JSC, which is a single document regulating the development of safety culture in TVEL JSC and its subsidiaries. Introduction of the Standard includes working out of the documentation for development and improvement of safety culture, training of personnel, self-evaluation and external evaluation of the safety culture level. In accordance with the Standard the Company undertakes to develop and implement the single comprehensive plan of actions for improvement of the safety culture on a yearly basis.

Occupational Safety Management System in TVEL JSC define duties of managers, specialists and other workers in issues of labor protection. Local regulatory documents on labor protection include instructions, lists, logs. The Company organizes trainings and assessment of knowledge, briefings, including for representatives of contracting organizations.

The enterprises have installed and are continuing to install video systems at hazardous production sites in order to monitor technological processes and prevent injuries. TVEL JSC holds annually the meetings of technical directors and managers for nuclear and radiation safety, occupational safety and environmental protection. During such meetings participants exchange their thoughts, share best practices with the colleagues and report on the measures taken to address the problems. All participants are notified about the occurred accidents, causes of such accidents, and organizational and technical actions taken. Following the results of the meeting, a decision was adopted with instructions for further reduction of injury rates and the measures to improve working conditions.

The complex and special-purpose inspections on security assurance are held to assess the functioning of OHS management system and implementation of measures. The inspections also cover enterprises' subsidiaries and contracting organizations rendering their services in the territory of the enterprises included into the management system of TVEL Fuel Company.

In the subsidiaries of TVEL JSC there have been established and are functioning the Tripartite Committees on Occupational Safety and Security, composed of representatives of management, workers and unions (such committees cover 97% of the total number of TVEL Fuel Company's workers), including CFR 3 and CFR 4). All operating collective agreements of the Fuel Company contain the provisions dealing with occupational health and safety issues.

The institution of public representatives responsible for labor protection is continuously improved from year to year; these are employees, who in addition to their main duties perform supervisory functions on labor protection, record violations of labor protection requirements, submit proposals for elimination of violations and improve working conditions, participate in days of labor protection, etc. In recent years, trade unions and enterprises of TVEL Fuel Company have organized and implemented evaluation system for public representatives performance. Following the results of such evaluation, the Company made arrangements for moral and material incentives for their performance.

EMPLOYEES SAFETY AND HEALTH ARRANGEMENTS IN 2018

In the reporting period, the Injury Reduction Program was developed and implemented in the companies included in the management system of TVEL Fuel Company, their subsidiaries and contract organizations.

The management of TVEL JSC and its subsidiaries have taken personal obligations in the sphere of security provision and communicated them to employees. Videos “The whole truth about security” were released. Staff incentive mechanisms have been implemented, including the holding of contests The Territory of Safety and Most Caring Person.

Arrangements were made to strengthen safety responsibility for contractors’ operation at the sites of enterprises, a standard form of industrial safety agreement (annex to the contract) was refined, and guidelines for interaction with contractors was developed.

Strategic sessions on activities in the field of occupational safety and safety culture were held in 2018 to exchange best practices, develop new approaches to HR management for safety reasons.

To display the rights of an employee, as stipulated by the Labor Code of the Russian Federation, the possibility of using Stop- Cards is implemented in cases when discharge of work-related obligations may be unsafe for an employee.

The Company adheres to principles of Zero Injury concept, including participation in Vision zero business club.

PA ECP JSC automated pre-shift medical examinations. UEIP JSC created simulators for teaching safe methods of working at height and electrical work.

TVEL Fuel Company has introduced the practice of carrying out no-notice trainings on various topics, including those of “personnel action at failure of transmission lines with simultaneous shutting-down of automatic load transfer system”, “personnel actions during short circuit at substation” since 2018.

Video systems to monitor technological processes and prevent injuries were installed at hazardous industrial sectors of enterprises. In 2019, it is planned to ensure data entry from monitors on a real-time basis to workstations.

Four comprehensive safety inspections were carried out in the reporting period (including occupational safety inspections) at MSZ PJSC, NCCP JSC, Centrotech LLC, ChMP JSC.

RESULTS 2018