Employee rights, trade unions

At RusHydro Group, employees are free to fully exercise their right to freedom of association. Most of RusHydro Group’s companies have trade unions in place, with a total of 35,882 members in 2018. [407-1]

On December 11, 2018, Chairman of the Management Board – General Director of RusHydro, Nikolay Shulginov, and the senior management of RusHydro had a meeting with the leaders of the Far Eastern sections of the All-Russian Electric Trade Union.

At the meeting, memorandum No. 56 pr/2 was signed with a view to developing social partnerships at all levels, improving a social dialogue between authorized representatives of employers and employees at RAO ES East Subgroup, as well as maintaining the existing social benefits.

All of RusHydro Group’s generation branches and 40 subsidiaries have collective bargaining agreements in place. In 2018, 96% of the Group’s employees were covered by collective bargaining agreements.

The collective bargaining agreements signed at RusHydro Group regulate the social and labor relations taking into account the interests of employees and the employer. [102-41]

RusHydro and its 12 subsidiaries are members of the All-Russian Industry Association of Employers of the Power Sector «ERA of Russia», while another 3 subsidiaries have joined the Industry Tariff Agreement for the Electrical Power Industry of the Russian Federation. the Industry Tariff Agreement provides a single standard for regulating social and labor relations in the industry and sets a minimum level of guarantees for employees. This standard significantly facilitates the dialogue in social partnerships at the levels of industry companies and the Group, enabling RusHydro to compare and assess the level of guarantees provided to employees.

All companies that are “ERA of Russia” members comply with the key provisions of the Industry Tariff Agreement pertaining to the amount and frequency of indexation of the minimum monthly rate of pay, additional benefits and guarantees such as one-off payments made prior to a paid leave, financial assistance provided in the face of certain events (marriage, childbirth, death of close relatives), one-off payments to retiring employees, compensation to families in cases of work-related fatalities and deaths caused by common diseases or home accidents, as well as other benefits provided for by the Industry Tariff Agreement if the company is financially able to make the payments (50% discount of the regular charge for electricity and heat, compensation of childcare expenses, monthly compensation payments to employees on childcare leave, etc.). Notably, RusHydro provides employee benefits and guarantees that are higher than those set forth in the Industry Tariff Agreement in terms of both scope and amounts paid.

Pursuant to the Labor Code of the Russian Federation, specifically article 74 concerning changes in organizational or technical conditions of labor, article 75 concerning changes of control and restructuring, employees must be notified in simple written form within at least two months from the date of such material changes in an employment contract. In collective bargaining agreements, Section 4 “Employment” also makes reference to the Industry Tariff Agreement, which reflects duties of employers and trade unions in the event of material changes in employment contracts. [402-1]

More information on the Industry Tariff Agreement is available at: http://www.orael.ru