ZAPORIZHSTAL JSC COLLECTIVE AGREEMENT: RESULTS OF THE FIRST HALF OF THE YEAR

NEWS

In the first half of the year it was foreseen to carry out 127 measures but actually 124 were executed. In the first half of 2010 Zaporizhstal over fulfilled its obligations in steel production by 19,3 thousand tons, rolled products by 12,7 thousand tons, however the obligations were not carried out on production of 24,8 thousand tons of pig-iron.

Non basic products, consumer goods and services at the amount of 200 million UAH have been produced, which is 50 million UAH more than accepted in the collective agreement.

Losses due to rejected material have reduced by 17,9 % against the obligations to reduce them by 10 %.

As per section 3 “Labour and environmental safety” all 25 measures have been fulfilled.

As per section 4 “Methods, systems and order of labour payment” the planned measures are being carried out taking into account the current financial situation at the Works. The monthly average wages of one worker at the Works in the 1st half of 2010 have shown a growth of 10 % (293,33 UAH) against the corresponding period of last year, including one worker of the industrial and production personnel — a 9,9% growth (304,86 UAH).

As per section 5 “Social policy” all the 32 measures are being carried out. The social policy of Zaporizhstal JSC, which is guaranteed in the collective agreement, is carried out based on several areas of focus. Medical aid was rendered to the workers of Zaporizhstal at “VitaCenter” Ltd, incorporating a polyclinic and a hospital, and also in sanatorium-dispensary and recreation center “Metallurg”, where treatment is also rendered. 584 children of Zaporizhstal workers have visited the Children’s care center “Sputnik” and “Molodaya Gvardiya”.

During the first half of the year 457 workers improved their health and were offered an opportunity to rest (with the Works paying the major portion of the cost of accommodation from its means) in 9 sanatoriums in the Crimea and Western Ukraine. Accommodation cards were also given to workers and their families to improve their health and to rest in the recreation center “Metallurg”.

1554 Zaporizhstal workers improved their health in the after-work sanatorium, two specialized check-ins (for treatment and health improvement of workers with diseases of digestive organs and blood circulation) were organized.

All the enterprise workers according to the current regulation are given material aid for health improvement when they go on annual leave. More than 14 million UAH was spent in the first half of 2010.

The donors who donated blood on blood donation days, and in case of extreme need for treatment of Zaporizhstal workers have received material aid in the form of grocery baskets and additional meals at the amount of 180 000 UAH.

The development of the medical base at recreation center “Metallurg” in the village of Novokonstantinovka has proceeded. In the first half of the year current repair of hydro massage baths and physiotherapeutic equipment has been fulfilled. Bandaging and dental materials have been obtained.

On rendering of address help to socially unprotected categories of the population connected with the Works 275 000 UAH was spent from the means of the Works.

For the purpose of social protection of non-working veterans of Zaporizhstal JSC in the accounting half-year period they were paid quarterly additional pension and were rendered material aid on holidays. On these purposes 1 047 000 UAH was spent.

About 5000 workers (more than 25 % of the total number of workers), living in the remote districts of the city, were regularly transported on 54 routes to the Works and back to town.

Expenditures on maintenance and repair of social and cultural facilities, preschool institutions were financed in the limit of the means provided for this purpose. Losses on housing maintenance were covered.

Despite of all the difficulties in that period, 16 measures planned in section 6 “Employment of workers” are being carried out. Staff employment was carried out in connection with the necessity, first of all, in the main shops qualified specialists were employed, and also graduates of educational institutions, who have successfully graduated and have positively showed themselves during the training period in the plant’s shops.

The plan for preparation and improvement of professional skills in the 1st half of the current year was fulfilled, 3650 persons were trained. Regularly and to the fullest extent means were provided to equip study rooms and auditoriums. At the enterprise introductory internship, industrial, technological and pre diploma training of students of educational institutions, technical schools, colleges and pupils of vocational schools, according to concluded agreements were carried out.

Turnover of employees in comparison with the similar period of 2009 has decreased by 0,1 % (from 1,1 % to 1,0 %).

All 7 measures proposed in section 7 “Youth outreach” for the first half of the year have been fulfilled. More than 770 young workers of Zaporizhstal have improved their know-how of labour. Professional skill competitions have taken place in the Works’ shops regarding basic skill in which 682 young workers participated. Mass youth cultural and sports events also took place.

To protect economic interests of the enterprise custody of property of the joint-stock company, data safety and trade secrets were provided.

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