Russian operations of Norilsk Nickel have established a social partnership framework aimed at reconciling the interests of employees and employers on matters pertaining to the regulation of social and labour relations.

The Company meets all obligations under the Labour Code of the Russian Federation, collective bargaining agreements and joint resolutions.

In regulating labour relations, employee interests are represented by trade unions and social and labour councils.

Trade union organizations

Trade unions of the companies located in Norilsk and on the Taimyr Peninsula form a single Trade Union Organisation of PJSC MMC Norilsk Nickel, its Subsidiaries and Affiliates. Trade unions of the companies operating in the Murmansk Region are joined under two umbrella trade union organisations – Regional Trade Union Organisation of Kola MMC Employees and Primary Trade Union Organisation of Kola Mining and Metallurgical Company.

As at the end of 2017, 10.9% of employees engaged in Norilsk Nickel’s Russian operations were members of trade union organisations.

Trade union organisations of Nornickel and its subsidiaries, Kola MMC and its subsidiaries, GRK Bystrinskoye, NordStar Airlines and Zapolyarye Health Resort are all members of the Trade Union of MMC Norilsk Nickel Employees, an interregional trade union organisation. In the reporting year, the relationship between the employer and the Trade Union was governed by the Social Partnership Agreement signed in 2014 to formalise implementation procedures for joint initiatives ensuring sustainable performance, operating and financial excellence, employee welfare, health and safety, and enhancement of social benefits.

Social and labour councils

The Group's companies located in the Norilsk Industrial District, Taimyrsky Dolgano-Nenetsky Municipal District and Murmansk Region established social and labour councils back in 2006 to represent the interests of employees who are not members of trade unions. Chairs of the local councils make up the Social and Labour Council of MMC Norilsk Nickel and the Social and Labour Council of Kola MMC. To ensure regulation of social and labour relations, negotiation, drafting and signing of collective bargaining agreements, holding of bilateral consultations, respect of the employees' labour rights and participation of employee and employer representatives in out-of-court settlements, the Russian companies of Nornickel set up the following collective decision-making bodies: collective bargaining commissions, labour dispute commissions, social benefits commissions/committees, social insurance commissions, health and safety commissions/committees, social and labour relations committees, etc.

In 2017, the share of employees represented by social and labour councils across the Norilsk Nickel Group stood at 82%.

Collective bargaining agreements

The collective bargaining agreements of Nornickel’s Russian companies comply with the applicable laws and meet the majority of employee expectations.

In 2017, many of the Group’s Russian companies entered into new collective bargaining agreements or extended the expired ones. Collective bargaining commissions also amended some of the agreements during the reporting year. The need to make those amendments was mostly related to adjustments in wage rates arising from legislative changes, organisational structure transformation and introduction of a new automated HR management system. One of the key changes was the review of the payroll system, which led to an increase in the fixed (guaranteed) part of the salary. The payroll adjustments were made in strict compliance with the applicable laws subject to the consent of every given employee. As a result, the Collective Bargaining Commission of MMC Norilsk Nickel reviewed old wage rates and salaries and approved the new ones which came into effect on 1 April 2017.

There were no social or labour disputes during the reporting period.

In 2017, the share of employees covered by collective bargaining agreements stood at 80%Including entities that have no collective bargaining agreements in place but have approved local regulations that make MMC Norilsk Nickel's Collective Bargaining Agreement effective at these entities, including foreign assets..