OREANDA-NEWS. On 04 March 2009 Uralkali announced that in spite of the global economic turmoil it will continue to invest in its main personnel related social programs and plans to allocate about 250 million rubles to them over the course of 2009. 

As a result of the unfavorable market environment, Uralkali reduced its output by 50% in Q4 2008 and is operating at 25% capacity in Q1 2009. Like many other large manufacturers, Uralkali has had to revise its expenses and cut costs. However, remaining strongly committed to corporate social responsibility, Uralkali has decided not to make redundancies or reduce the number of business days and will retain its full social package for its employees. Uralkali's social package is considered to be one of the most attractive among companies operating in the Perm Territory and equates to a benefit of about 10% on top of the average corporate pay. The corporate social package includes work meals, medical services, trips to job sites, sanatoriums, resort services and various social benefits under the Collective Bargaining Agreement.

In 2009 Uralkali will increase financing for some of its social programs, including 63.9 million roubles allocated to corporate bus services, a 16% increase over 54.8 million roubles in 2008, used by the company’s employees to get to our cites, some of which are located as far as 15-20 kilometers from the city. Investment in corporate meal programs will be increased by 42%, amounting to 48.8 million roubles in 2009 vs. 34.3 million rubles in 2008.

Additionally, Uralkali plans to provide 18.4 million roubles to its labor veteran assistance program, including quarterly subsidies (adjusted for inflation) to former employees and Veteran Council expenses. The company will allocate 35.3 million rubles to help its employees pay interest on home loans taken before the economic downturn. Uralkali will also continue to finance its professional development programs and will contribute 3.8 million rubles for higher and secondary occupational education for its employees.

Based on the 2008 results, the average monthly wage paid by the company amounted to 23,727 rubles, making Uralkali the most attractive employer in Berezniki, where its main facilities are located. All of the company's employees were provided with annual bonuses, based on the 2008 results. Bonuses were also granted to the winners of the contests "Working Millions" and "Labor Culture." However, in accordance with the Uralkali’s remuneration system, the variable wage component (monthly bonuses), which depends on the company’s output, has been temporarily reduced.

Headcount was reduced by 66 in 2008 out of 8747, less than 1% of Uralkali’s total staff numbers. In addition, Uralkali plans to reduce staff numbers by 21 more positions in Q109. Primarily as a result of structural changes, these reductions affect vacancies, rather than employees. As a priority all of the employees affected by job cuts are offered jobs within other subdivisions of the company.

Elena Samsonova, HR Director, Uralkali:

"We are making every possible effort to ensure that our employees are not affected by the current unfavorable economic situation. The company has resisted massive personnel reductions and continues to implement its essential social programs. Despite the adverse economic environment, Uralkali was able to pay bonuses to its best employees. The company regards its employees as its key assets that need to be protected no matter what the situation."

Irina Kolesnik, Chair of the Uralkali Trade Union Organization:

"Despite the difficult start to the year Uralkali has preserved all its social programs under the Collective Bargaining Agreement. Our members appreciate the company’s efforts and they remain committed to the long term success of the company."