Press release
Pavlograd
Pavlogradugol (DTEK) has introduced a
new remuneration system designed specially for the company in line with
approaches of the international consultancy Hay Group. Hay Group consultants, DTEK
and Pavlogradugol managers, as well as trade union organizations worked
together to adapt the system. After this innovation is in place, the average
salary is expected to go up by over 22% against the base period in 2009.
Five fundamental principles are at the
core of the new system: fairness, simplicity, flexibility, transparency and
competitiveness. When developing the system, designers described all positions
in the company, assessed them and classified into a certain grade - importance
for the company. Each grade has a minimum and maximum basic salary. Employees
can influence the size of their salary by improving performance, skills as well
as personal and professional responsibility. The salaries will be reviewed at
least once a year following the annual appraisal of employees.
The company needed a new remuneration
system because the bonus system based on piece-rate approach applied at all
coal mines in Ukraine showed substantial weaknesses. A survey revealed that it
was hard-to-understand and failed to motivate employees to improve their
performance and skills.
The new salary system will divide a
bonus of each employee into two components: a bonus for the overall performance
of the company (department) and a bonus for personal achievements. Individual
performance of employees will be appraised by their managers every month.
Pavlogradugol employees will retain all
types of benefits and allowances set by the Ukrainian Law, e.g. for night
shifts, work on weekends and holidays, for long service, etc. Pavlogradugol
will pay these benefits above salaries and bonuses.
"To make the new system effective,
we have engaged experts from all levels of Pavlogradugol and trade union
organizations to develop and introduce this new model. We will continue to
improve it. In the longer term we plan to introduce a similar remuneration
system at DTEK's second coal mining plant - Komsomolets Donbassa Mine",
commented Yevgeniy Romashchin, Director for Coal Production and Enrichment,
DTEK.
"The new remuneration system was studied
by our territorial committee and discussed with DTEK and Pavlogradugol
managers. When developing it, we initiated and introduced a range of additions
and amendments. Today we continue to eliminate weaknesses of the system. I hope
that starting from February 2010 our employees will see a raise in their salary
compared with 2009. The principles of this system will be clear to each worker
of the company", shared Sergey Yunak, Chairman of Dnepropetrovsk
Territorial Organization of Coal Workers
"I dare call the new remuneration
system ground-breaking. Finally, we can abandon the long-outdated bonus system
based on piece rate approach. Today the top priority is safety of employees,
transparency of the remuneration system and an increase of the guaranteed and
constant component of the salary. These are the key advantages of the new
modern system", mentioned Viktor Grek, Chairman of Regional Association of
Independent Trade Union of Western Donbass Miners.
Profile:
DTEK is the first private
vertically-integrated power company in Ukraine. It belongs to the financial and
industrial group System Capital Management (SCM). DTEK enterprises form an
efficient chain of coal mining and enrichment, electricity generation and
distribution.
The coal division of DTEK includes
Pavlogradugol (runs 10 mines), Komsomolets Donbassa Mine and five enrichment
plants. In 2009, the DTEK's sales accounted for 24.4% of Ukraine's coal
mining industry 24.4%.
The generation division comprises
Vostokenergo and associated company Dnerpoenergo, of which DTEK owns 47.5%. In
2009, the share of these businesses in Ukraine's thermal generation made:
Vostokenergo – 25.3%, Dneproenergo – 20.5%.
DTEK’s Service-Invest and PES-Energougol
represent the electricity distribution division. Their purchase share in the
state-run enterprise Energorynok made 7.7% in 2009.
For more information, please visit: www.dtek.com
Pavlogradugol (DTEK) is the biggest coal producing company in
Ukraine. It comprises 10 coal mines and other structural units. Following 2009
performance, the coal output of Pavlogradugol accounted for 19% of total
Ukrainian production.
Hay Group is the biggest international
consultancy in strategic management, operating since 1943 in 47 countries. It
has over 7,000 clients, including companies active in different branches of
both private and state economy sector.
Press office of Pavlogradugol (DTEK)
Tel.:8(0563)268187
E-mail: y.kolomoets@pu.dtek.com.ua
