Social Policy

The basic principle of activities of IDGC of Centre, JSC is social responsibility.

Being a stable Company and a responsible employer, IDGC of Centre, JSC devotes much attention to ensuring social support for the employees, their family members and non-working pensioners, the promotion of a healthy lifestyle promotion, and development of corporate culture. These activities are implemented through the social policy of the Company.

The social policy of IDGC of Centre, JSC is based on the principles of equality of rights, respect and consideration for the rights and legitimate interests of the parties of the social partnership, voluntariness, the reasonableness of assumption of obligations, as well as obligation and reality of their execution.

The social policy of the Company is implemented by means of the social partnership system and is built in accordance with the Russian Federation Power Industry Tariff Agreement for 2009-2011 (considering the agreement on introduction of amendments to the Power Industry Tariff Agreement and extension of its validity for a period up to 2012), on the basis of which the Collective Bargaining Agreement of IDGC of Centre, JSC was concluded.

The interests of the employees of the Company are represented by the common shop-floor union organisation of IDGC of Centre, JSC comprising 11 primary trade unions of the branches of the Company. In IDGC of Centre, JSC the Collective Bargaining Agreement regulates social and labour relations, establishes the rights and responsibilities of the parties of the social partnership, sets salary standards and other working conditions, as well as the social safety net and benefits for the personnel. A number of bonuses and forms of compensation are provided by the Company in cooperation with the trade unions.

The social policy of IDGC of Centre, JSC provides for both material and non-material incentives for the personnel of the Company. The Company provides its employees with material assistance and a number of social benefits, bonuses and compensation.

In accordance with the current Collective Bargaining Agreement and corporate programme of insurance coverage, employees of IDGC of Centre, JSC are insured under programmes of voluntary medical insurance and personal accident and sickness insurance. Personal accident and sickness insurance agreements cover all employees of the Company. Practically all kinds of medical care are available for the personnel of the Company.

IDGC of Centre, JSC assumes a part of social responsibility for the well-being of not only its personnel, but of non-working pensioners. For the purposes of material assistance to retiring employees of the Company and the forming of the corporate pension system, IDGC of Centre, JSC implements the Programme of Non-State Pension Coverage of the employees of IDGC of Centre, JSC, which is annually approved by the Board of Directors of the Company. The Non-State Pension Coverage is realised under the agreements concluded with the NPF (Non-State Pension Fund) of the electrical power industry according to corporate and parity patterns. Non-State Pension Coverage Program provides conditions for solution of personnel issues connected with recruitment, retention and motivation of the personnel, and establishing a favourable environment for financing by the employees of their pension accruals.

In addition, each branch of IDGC of Centre, JSC has a Veterans’ Council. This organisation is the intermediary between the pensioners and the management of the Company’s branch; it helps to recognise needy pensioners, and organise co-operative activities connected with holidays and anniversary dates.

For improvement of housing conditions of the employees the Company has in operation the Regulation on the Corporate Assistance and Support of the Personnel of IDGC of Centre, JSC with respect to Improvement of Housing Conditions approved by the Board of Directors of the Company. The Regulation is aimed to ensure the social protection of the employees, to retain qualified specialists and the engagement of young and highly qualified specialists, and to develop motivation. Housing commissions have been established in the branches of the Company.

In 2011, IDGC of Centre, JSC subsidised housing leases for new staff and highly qualified specialists and interest rate payments under mortgage loan agreements.

IDGC of Centre, JSC provides a system of recognition of employees for achievement of the highest indicators of production activities, the realisation of innovative projects and long-term conscientious work. In 2011, 13 employees of the Company received state decorations of the Russian Federation, 142 employees of the Company received awards from the Ministry of Energy of the Russian Federation, 279 employees — corporate awards of IDGC Holding, JSC, 6 employees — awards of the All-Russia Trade Association of Power Industry Employers, while 574 employees received awards of IDGC of Centre, JSC. Two employees of IDGC of Centre, JSC were put on the Honours Board of IDGC Holding, JSC, and 21 employees were included in the Honours Book of IDGC Holding, JSC.

The Company pays great attention to sports and recreation activities. In 2011 were held Winter and Summer Sports Games of the employees of IDGC of Centre, JSC, while Company employees took part in the All-Russian Summer and Winter Sports Games of power engineers of the distribution power grid complex.

In May 2011, young employees of IDGC of Centre, JSC participated in the United Day of All-Russian Tree-Planting, during which more than ten thousand trees and bushes were planted.

In July 2011, representatives of IDGC of Centre, JSC traditionally took part in the All-Russia Forum SELIGER 2011.

The Company provides its employees with vouchers to health resorts, recreation and retreat centres, rest-houses, children’s holiday camps, and children’s sanatoriums. Collective leisure activities on weekends and holidays are very popular in the Company.

The Company strives to use more actively the experience and intellectual potential of the its most experienced staff in production interests, and facilitates the development of mentoring, together with realisation of cultural, leisure and social events and activities held in cooperation with such employees. In 2011, the second stage of the historical and memorial relay of the Victory Flag was held.

IDGC of Centre, JSC holds various corporate and sports events and contests among children of employees for the best children’s essay and children’s drawing on different topics. In November 2011, children of the employees of the Company took part in the Children’s Drawing Contest devoted to the Power Engineers’ Day. Every year contests of children’s drawing devoted to the Victory Day and Children’s Day are held, as well as creative photo-contests among the employees of the Company.