Annual Report 2010 - Magnitogorsk Iron & Steel Works

Human Resources PolicyThe main factor of MMK’s strong performance is maintaining its long-term competitive ability achieved throughequipment modernization and balanced HR policy aimed at:• securing highly qualified personnel;• giving priority to developing the Company’s personnel potential over the modernization of process facilities;• ensuring adequate standards of living for its employees.The corporate PERSONAL Training Centre has developed programmes for fostering a future HR reserve coveringstages from foreman to top manager. Every year seminars and competitions are held for young specialists.In 2010, more than 36,000 employees from MMK Group underwent training under different occupational andadvanced training programmes.Key Indicators of MMK and MMK Group’s HR PolicyIndicator 2006 2007 2008 2009 2010Staff on Pay-Roll as of Year End, personsMMK Group 59 037 60 726 58 798 62 195 59 331ММК 27 079 25 015 24 123 22 334 21 475Average Monthly Wage, RUBMMK Group 16 792 21 118 23 149 23 925 29 979ММК 19 852 24 785 27 793 27 906 34 523MMK’s Labour ProductivityConv. tonne/personThousand RUB/person44.3 47.8 47.8 42.4 48.9517.3 616.1 811.2 545.9 798.0The turnover rate in 2009-2010 was 2.8-2.6%, down from 6.1-6.8% in 2006-2008.70