“Samruk-Energy” JSC | Integrated annual report
Human resources are our main asset

Social responsibility

Social responsibility is an integral part of the Company’s development strategy, as we are aware of our contribution to social development. 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 in the Company’s group.

In 2016, following the results of “Shardarinsk HPP” JSC, “Station Ekibastuz SDPP-2” JSC, “Aktobe CHP” JSC, “Shygysenergotrade” LLP inspection conducted by state labor inspectors operations, operations of these companies were recognized as meeting requirements of the labor legislation of the Republic of Kazakhstan and Certificates of Trust were issued.

Also, in 2016 “Ekibastuz SDPP-1 named after B.Nurzhanov” LLP won the second place in the nomination “The best collective agreement” in the area of large businesses in the national competition on social responsibility of business “Paryz”.

The Company’s group 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.

In 2016, the social stability rating for the Company’s group remained at the level of 2015 and amounted to 72 %. The indicator is still at an “above average” level, which indicates an increased focus on social development issues, as well as a positive attitude and constructive approach to addressing the emerging issues of production personnel.

The survey of the involvement of office and management personnel in 2016 was characterized by positive dynamics and increased from 65 % in 2015 to 68 % in 2016.

The most noticeable growth in indicators compared to 2015 is observed in employees’ assessment as to how their career develops (from 64 % to 100 %), setting work objectives by direct supervisor upon agreement (from 66 % to 83 %), discussion of quality and performance outcomes with direct supervisor (from 58 % to 71 %), satisfaction with the way the Company is developing today (from 58 % to 62 %), the opportunity to develop new ideas, efficient proposals to implement them at work (from 24 % to 38 %).

In 2016, management and employees reporting meetings were held at all labor collectives as part of approved Action plan for improving social stability rating and involvement of personnel in the Company’s group for 2016–2018; CEOs of subsidiaries and affiliates highlighted main operating results and activities in the field social responsibility, as well as outlined further development prospects at the meetings.

Conciliation Committees were established and operates in the Company’s group; they consist of representatives from the employer and representatives of employees whose main responsibility is to raise awareness among staff and procedures for handling complaints and inquiries.

The Company group 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:

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

So, in 2016, across the Company’s group, social payments were made in the amount of 3 082 651 thousand tenge. For the same period of 2015, social payments amounted to KZT2 703 595 thousand tenge. In the structure of payments, the main share is made up of expenses: a one-time allowance for healthcare when granting a leave – 39 %, treatment of employees in health resorts – 6 %, medical insurance – 6 %, 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 – 3 %, etc. of the total amount of social payments.

The employer’s obligations for social support of personnel under concluded collective agreements are performed in full.

As of the end of 2016, the percentage of coverage of the Company’s group personnel by collective agreements amounted to 97 % of the total number of personnel.

In addition, in order to increase motivation and encourage for labor and professional merit, the employees of the Company’s group were traditionally awarded the state, institutional and industry awards of the CIS Electric Power Council, Kazakhstan Association of oil, gas and energy sector organizations “Kazenergy”, AEL “Kazakhstan Electric Power Association, “Samruk-Kazyna” JSC and others.

In order to promote continuity of generations and power engineer occupation, “Samruk-Energy” JSC celebrated the Day of Labor Dynasties in May 2016. In the framework of this event representatives of 10 labor dynasties from different regions of Kazakhstan were presented certificates of honor and memorable gifts.

On the occasion of International Children’s Day, regular Children’s Painting Contest was held at the initiative of “Samruk-Energy” JSC Local Trade Union from June 1 to August 10, 2016, and also 110 disabled children of the Company’s group were provided with financial aid for a total of 2 200 000 tenge.

The enterprises of the group of the Company take part in charitable actions, rendering assistance to pensioners, children from low-income and large families.

On the eve of the school year employees of “Station Ekibastuz SDPP-2” JSC provided sponsor assistance by providing pre-school uniforms and autumn clothes to children from low-income and large families. “Ekibastuz SDPP-1 named after B. Nurzhanov” LLP provided children from the city orphanage with financial aid for the purchase of sports uniforms, more than 120 children from low-income families were given packages with food in honor of the holiday “Kurban Ait” as well as vouchers for children’s health camps and free of charge visits to the pool during the school holidays for children from the socially disadvantaged population of Solnechny village.

On the eve of celebration of the 71th anniversary of the Great Victory Day, the entities of the Company’s group congratulated participants of the Great Patriotic War and home front workers. Thus, the PA “Local Trade Union of Samruk-Energy” presented gift baskets with groceries to the veterans of the Great Patriotic War, employees of the “East Kazakhstan Regional Energy Company” JSC took part in campaign “Military post office” as part of social and charitable project “Zhenis”, “Alatau” Zharyk Company “ JSC provided financial assistance, “Almaty Power Plants” JSC and “Moynak HPP” JSC congratulated veterans at their homes etc.

Traditional IV Sport contest among employees of “Samruk-Kazyna” JSC group of companies was completed in September 2016. According to the team event results, the Company’s team consisting of representatives of “Alatau Zharyk Company” JSC, “Bogatyr-Komir” LLP, “Ekibastuz SDPP-1 named after B.Nurzhanov” LLP and “Station Ekibastuz SDPP-2” JSC took 3rd place with 19 bronze and 3 silver medals.

In accordance with paragraph 2 of article 48 of the Labor Code of the Republic of Kazakhstan, the Management of the Company and its subsidiaries and affiliates notify the employee and / or his representatives in writing of changes in employment conditions not later than one month. This clause is specified in collective agreements and is strictly observed by each organization of “Samruk-Energy” JSC Group of Companies.

Share of employees under labor contracts

No. Indicator Value (2016) Measurement unit
1. Total employees (headcount) as of the end of 2016  22,230 people
2. Including employees under labor contracts for 2016:  21,611 people
3. Share of total employees under labor contracts: 97 % %

Payments and benefits provided to full-time employees which are not provided to employees who work under conditions of temporary or part-time employment, broken down by core activities

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

Corporate social responsibility indicators

In order to effectively implement activities in the field of corporate social responsibility, the Company monitors the achievement of the set goals for key indicators of social responsibility activities.

No. KPI name Measurement unit 2015 Actual 2016 Plan 2016 Actual
1 Share of “Samruk-Energy” JSC in total power generation across the Republic of Kazakhstan % 24.6 No targets were available 23.9
2 “Samruk-Energy” JSC share in coal mining in the Republic of Kazakhstan % 35.6 No targets were available 35.8
3 Operating income mln. tenge 228,865 255,685 181,310**
4 Share of investment in innovative projects in the company’s revenue % 5.3 4.0 4.35
5 Share of net profit from implementation of innovative projects in the company’s total net profit % –11.9 –8.0 –6.87
6 Amount of damage from emergency situations mln. tenge 4.12 Not planned 2.72
7 Labor and environmental protection costs mln. tenge 7937.99 3 398.6 3 695.3
8 Social stability rating % 72 64 72
9 Staff turnover % 11.9 10 13
10 Degree of involvement % 65 65 68
11 Average headcount, total people  18,169 18,597 17,962
12 Training costs per employee per year thous. 25.18 23.66 25.51
13 % of training costs of payroll % 0.9 1.3 1
14 Number of accidents at work per thousand people number./1000 persons 0.5 Not planned 0.59
15 Accrued taxes subject to payment and other obligatory contributions mln. tenge 1,418.6 17,813.3 15,795
16 Share of local content in goods, works and services % 74 No targets were available 79 %

* These indicators are given in accordance with the Development Plan of “Samruk-Energy” joint-stock company
** Actual statements do not include the income of SA recognized in discontinued operations following the results of 2016 in financial statements

“Samruk-Energy” JSC | Integrated annual report
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