eurochem-annual-report-2011

Business review
Sustainability continued
Employees
Our employees are directly responsible for the Company’s current success and our HR policies play
a fundamental role in driving and supporting EuroChem’s growth. In order to retain the very best staff,
we operate a fair employment policy to keep our teams motivated and productive. Throughout the Group’s
businesses, we remain committed to investing in health and safety and fair remuneration, while rewarding
outstanding performance. This is because we fully realize that in the end, in a commodity business, what
really differentiates one company from another is the quality of its workforce.
A strong focus on empowering lower management has allowed us to maintain a lean and effective
structure even as we decrease staff at existing production units and take on new employees for our potash
developments. As a result, the ratio of management to total staff has reduced to a 12%/88% split. Our
targeted employee engagement initiatives have brought staff turnover at production units to an enviable
3.4%, down from over 10% in 2006. Productivity, measured by tonnes of output by employee, remained
in line with 2010 at 1,358 tonnes per employee.
In 2011, the growth in average monthly remuneration slightly outpaced productivity as a result of the highly
skilled workforce intake for the development of our Gremyachinskoe and Verkhnekamskoe potash deposits.
Local communities and state authorities
We are committed to being an exemplary corporate citizen in the countries and regions of our presence
and are engaged in a continuing dialogue with state authorities and local communities. We are the top
regional employer in the areas of our presence and a leading contributor to regional and federal budgets.
In 2011, EuroChem spent a total of RUB 455m on social and charity programmes, up from RUB 412m
in 2010 and surpassing the our previous record of RUB 445m invested in 2008.
2008 2009 2010 2011
Income tax 9,295,501 2,437,953 4,699,114 7,851,478
Property tax 286,543 362,536 488,890 570,059
Mining tax 212,551 117,220 122,249 170,370
Land tax 142,621 181,217 190,549 207,088
Environmental fees 36,025 76,364 111,920 94,092
2008 2009 2010 2011
Social and charitable expenses 445 203 418 455
In 2011, the Russian Union of Industrialists and Entrepreneurs recognised EuroChem’s corporate
responsibility achievements with one of its “Russia’s Best Companies” awards: in our case for
“Development of Non-Financial Reporting in the Chemical Industry”. The award was given to EuroChem’s
corporate sustainability report for its transparency and the quality of our dialogue with stakeholders.
60 EuroChem Annual Report and Accounts 2011
i
EuroChem corporate social
responsibility reports are available at
www.eurochem.ru/sustainability/social-reporting
Staff turnover at production units
%
2011
2010
2009
2008
2007
2006
3.4%
3.4%
2.6%
5.7%
7.3%
Management to total staff ratio
%
2011
2010
2009
2008
2007
2006
10.2%
12.3%
12.7%
13.5%
13.4%
13.3%
13.9%
Average monthly remuneration per employee
RUB/month
2011
2010
2009
2008
2007
2006
35,109
31,700
29,790
25,220
20,305
16,025
Production output per employee
Tonnes
2011
2010
2009
2008
2007
2006
Permanent employees
As at 31 December
2011 20,801
2010 19,614
2009 20,034
2008 21,526
2007 22,897
764
1,173
1,051
924
Production Service Logistics Sales, admin and other
1,358
1,360