Social Policy

North-Western Phosphorous Company is aware of its responsibility to the community and is committed to creating new jobs, making its tax and extra-budgetary payments on time, ensuring workplace and environmental safety at its facilities and promoting a favourable social environment in its local region.

NWPC’s social policy is aimed at developing a healthy social and psychological climate among its employees. The Company has devised a human resources policy to promote a working atmosphere that encourages each person to reach his or her potential. The Company is improving its personnel motivation system to provide each employee with opportunities for career development and remuneration adequate to his or her professional level and personal contribution to the Company’s performance, as well as social benefits and opportunities for education and advanced training.

The Company's main social objectives are:

• Comply with the terms of the licence agreement;
• Provide health resort and summer vacations for Company employees and their families;
• Promote medical care and preventive treatment for employees;
• Engage employees in sports and physical education;
• Organise recreational activities for employees, their families and Koashva residents in order to foster corporate spirit and pride in the Company;
• Coordinate activities with the Kirovsk administration and fulfil obligations under social and economic cooperation agreements.

In 2017, the Company approved a new Collective Agreement with improved benefits. For instance, all lump-sum payments to employees for marriage, birth of a child or death of a close relative were increased by RUB 5,000. The Company will pay RUB 10,000 to families of deceased employees who served ten or more years. The Collective Agreement also introduces rewards for employees inducted into the Hall of Fame. The NWPC social package outlined in the Agreement also includes voluntary supplemental medical insurance for all employees.

The Collective Agreement provides for significant financial investments in the health programme. NWPC employees and their families can receive health resort treatment at the Acron Hotel resort in Veliky Novgorod once every two years or enjoy summer holidays at the Vesna spa hotel in Adler or the Brigantina resort in Anapa every three years. NWPC spent approximately RUB 12 million on the employee wellness campaign in 2017.

Since 2016, an increased number of NWPC employees will be able to obtain discounted season passes to gyms and swimming pools in Kirovsk and Apatity. In 2017, employees also had the opportunity to practice table tennis. The Company rents a sports centre for training and continues to provide individual support to employees involved in professional sports.

NWPC boasts its own hockey, volleyball and soccer teams that compete on the municipal and regional levels.

As a socially responsible company, NWPC is committed to supporting solutions to social problems in Murmansk region. Under social and economic partnership and cooperation agreements with the government of Murmansk region and the municipal administration of the city of Kirovsk, the Company is investing in the cities of Apatity and Kirovsk, as well as Koashva settlement, located near the Oleniy Ruchey deposit, and contributing financially to both the regional social sector and charitable causes.

Under its annual bilateral agreement with the Kirovsk administration, NWPC allocated more than RUB 400 million to the Kirovsk city budget.

NWPC’s other important goal is to revive Koashva settlement and make it attractive for Company employees and other residents, including young people. Under the agreements, NWPC repaired and equipped Kindergarten No. 30, School No. 10, the Children’s Art School and the Recreation Centre, as well as the library, medical station and pharmacy, and built athletic fields and playgrounds. In 2017, RUB 50 million was allocated to finance education, culture and sports in Koashva settlement and another RUB 50 million was spent to develop social infrastructure, including housing repairs for orphaned children, road maintenance, holiday events, and upgrades to playgrounds and gardens.

Charity is among the Company's most important community activities. NWPC provides financial assistance to junior sports schools and teams transporting team members to tournaments and organising local competitions. In 2017, NWPC was the general sponsor of the Transpolar Ball regional ballroom and sports dancing contest, and in early 2018 the Company supported the 84th Festival of the North annual global sporting event in Murmansk region. The Company also congratulates WWII veterans on Victory Day and supports employees’ children who qualify for regional contests, competitions and other events.