Annual report 2007 - Magnitogorsk Iron & Steel Works ...

10
Number of Employees
MMK’s average payroll personnel number in 2007 was 61,309, which is 5,737 more than in 2006.
Managers, specialists and employees account for 21.5 % of the total number of personnel, and workers, for 78.5
%. Over 83% of the MMK Group’s employees have special professional education. The average age of employees is
38 years, with the average record of work of 9 years.
The number of OJSC MMK’s employees as of December 31, 2007, amounted to 25,031 (with the average payroll
number for 2007 standing at 26,049 persons, which is 1.3%, or 347 persons less than in 2006 ).
The decrease in the number of employees in 2007 is attributable to the optimization of production activities
in the OJSC MMK divisions and the transfer of a part of functions for maintenance and repair of the main process
facilities from OJSC MMK to specialized subsidiaries.
In 2007 the average wages in OJSC MMK increased by 24.8% and amounted to RUB 24,785, RUB 4,933 more than
in 2006.
The labour productivity in OJSC MMK in 2007 reached 47.8 equivalent tons per person, which is 3.5 equivalent
tons per person (or 7.9%) more than in 2006.
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The change of the labour productivity occurred due to:
Commissioning of new equipment;
Perfection of labour management ( organizational and technical measures, and providing higher financial
incentives to the personnel for better performance ).
30, 000
25, 000
20, 000
15, 000
10, 000
5, 000
0
MMK
Severstal
Average Wages, RUB
Novolipetsk
Uralskaya Stal
Nizhnetagil
West Siberian
Magnitogorsk