Labor Matters

OAO Severstal considers the personnel professionalism to be a competitive advantage in the achievement and preservation of leadership in the business.

The overall objective of the Company's personnel policy is the provision of economic efficiency in all directions of the work with the personnel based on complete analysis of all factors influencing the employees' motivation as well as those factors leading to the most comprehensive disclosure of their potential.

The effect of investments into human resources depends in many respects upon those leaders forming teams of professionals successfully solving production and administrative problems.
The necessity of transition to a qualitatively new level of HR management was the precondition of setting up the project on the Company top management efficiency increase through the introduction of a system of personnel competences management. As a result of realization of the said project, the Company shall receive permanent system for estimation and development of top-managers' competences and the program of actions on provision of conditions for optimal development of Severstal leaders.

In December 2001, Severstal was declared the winner of the All-Russia competition «Russian entity of high social efficiency» in the nomination «Personnel qualification and professional training».
Active work on raising motivation of the personnel is continuing. Project & objective oriented method is introduced with the aim to perfect the personnel management in the Company's Directorates. Bonuses are paid to the Directorates' employees for high quality of projects and processes accomplishment. Key indicators of workers' performance have been developed and introduced in a number of the Company's production shops. Directives on the procedure of paying bonuses to the managers and employees of steelmelting and rolling shops have been reconsidered with the purpose to increase the workers' responsibility for the fulfillment of orders.

Severstal Educational center continues its activity as an instrument of intracompany personnel training. Its activity covers workers, managers and employees training as per 32 courses in the scope of iron & steel technologies and equipment, management and safe methods of operation. The Educational center provides tutorial and consulting services, accomplishment of objective-oriented corporate programs and projects, such as «Production consulting», «TQM», «TOP-100», «Training of the management reserve for the key posts».