Annual Report 2010 - Magnitogorsk Iron & Steel Works

16 22 26 28 32 38 50 72MMK , sBusiness ModelMMK’s Missionand StrategyOJSC MMK Boardof Directors'The Company'sProductionSales MarketsFinancesCorporateGovernanceEnvironmentProtectionLabour SafetyThe corporate labour and industrial safety management system was certified for compliance with theinternational ОНSAS-18001- 2007 standards (2008). A supervision audit conducted in 2010 did not revealany non-compliance. The labour and industrial safety management system is recommended for certificationprolongation as per OHSAS 18001:2007. In 2010, under the Labour Safety Agreement 68 actions aimed atimproving labour conditions and preventing occupational diseases were implemented. 2,246 employees enjoyedbetter working conditions.Accidents in production, operation, construction, maintenance, overhauls, and modernization of facilities2009 2010Total accidents 18 19Total persons affected 18 19Fatal accidents 4 3Accidents resulting in severe injuries 2 4Frequency rate 0.790 0.886Severity rate 133.85 63.29The Company's employees are provided, in accordance with sectoral standards, with special clothes, footwear,and personal protection means. Shopfloor medical stations perform pre-shift medical check-ups of personneloperating automotive and railway transport, and heightened danger machines and mechanisms.Labour Safety Costs in 2010in million roublesDescription 2009 2010Provision of personal protective wear 127.3 146.1Purchase of polyvitamins and dietary products for employees working inhazardous conditions22.4 16.4Laboratory tests for workplace certification 17.1 17.9Purchasing of bottled mineral water for employees working in hotenvironments9.1 11.9Special dietary products for employees working in hazardous conditions 2.2 2.2Other labour safety costs 150.9 211.2Total 329.0 405.7Currently, the average employeeof MMK is a man 39 yearsold(69%), with a specializedprofessional training (86%) andsufficient experience and skills(average work record of 11 years).Managers, specialists and otherwhite collar workers account for21.8% of the total workforce, andblue collar workers, for 78.2%. Steel & Style , 10 MMK ANNUAL REPORT 71