HUMAN RESOURCES
MANAGEMENT

The UAC’s HR policy is aimed at creating and developing a team of professionals to drive the Corporation’s rapid growth. The philosophy underlying its HR policy is the desire to turn the UAC and the industry at large into an employer of choice.

The strategic goals of the Corporation’s HR policy are as follows:
• Create a continuous learning system within the Corporation that focuses on the improvement of managerial skills, facilitates professional development and communicates corporate culture;
• Form a pool of relevant educational institutions to act as a talent pipeline for future recruitment of young professionals with qualifications that meet global standards;
• Establish the systems of personnel rotation, career development and succession planning to ensure the steady career advancement of the employees;
• Reform the compensation and benefits system and introduce a performance-based incentive system.


Over

102 000

employees — total headcount across all the companies of the UAC, as of 31 December 2018

More than

47%

of the employees are primary and auxiliary production workers

More than

34%

of the employees are specialists

Corporate Code of Ethics

The UAC has a Corporate Code of Ethics1 that stipulates the ethical standards and the rules of conduct for the employees (in particular, in situations that are not covered by company regulations).

The document is an instrument of preventing conflicts of interest; it supports the implementation of anti-corruption measures and improves the internal and external relationships of the employees. The UAC’s key values are as follows:
• Mutual respect and friendliness;
• Honesty;
• Professionalism;
• Responsibility;
• Justice.

The Corporate Code of Ethics declares discrimination of any kind as unacceptable. The Corporation is committed to observing and respecting human rights and denounces discrimination by race, gender, national origin or any other status.

UAC’s responsibility to employees

The UAC’s concept of social responsibility to employees includes measures aimed at attracting and retaining professionals, increasing labour efficiency, improving the quality of working life of the companies’ employees and strengthening the public image of the Corporation, in particular by implementing the following measures:
• Ensuring consistent workload and reducing idle time;
• Monitoring the average pay levels at the UAC companies, including low-wage workers;
• Introducing performance-related pay;
• Developing the employee reskilling system;
• Developing young talent attraction and retention programmes (career guidance, employer- sponsored educational programmes, comprehensive youth programmes);
• Developing a system of social partnership.

The employee benefits and compensations targets are specified in the Collective Agreement for 2017–19 between PJSC UAC, its subsidiaries and affiliates and the Russian Aviation Industry Workers’ Union (PROFAVIA).

54,880

RUB—average 2017 salary across the Corporation

REMUNERATION

To attract professionals, the Corporation strives to maintain competitive pay ranges. The remuneration depends on the professional qualifications of the employees, their level of expertise and job tenure, as well as the socioeconomic situation in the UAC’s regions of presence.

The average pay at most of the Corporation’s enterprises is equal to or above the geographic region’s average. In 2017 the average salary in the UAC companies increased by 7.7% to RUB 54,880.

The Corporation also offers an executive compensation package which includes bonuses that are tied to the KPIs based on the current strategic development objectives of the Group. Quarterly bonuses of senior executives and medium- and top managers depend on their actual performance against quarterly objectives.

BENEFITS PACKAGE

The comprehensive benefits package offered by the UAC enables it to stay competitive in the job market.
To increase the employees’ social safety and foster an enabling working environment, the Corporation’s enterprises offer a variety of protection plans, in particular:
• Maternity grants and retirement benefits;
• Defined contribution pension plans;
• Rehabilitation, health care resort and wellness programmes;
• Holiday opportunities for employees and their children;
• Additional leaves;
• Housing benefits for employees..

The housing benefit programme is a key element of the UAC’s social security policy. The UAC offers the following housing benefits options:
• Provision of loans for down payment on mortgage;
• Grants to cover the interest on home loans/ construction loans;
• Provision of rental housing/rental assistance;
• Housing construction programmes.

In 2017 the Corporation’s enterprises spent RUB 305.5 million on their housing programmes.

Employee training and development

To meet the current and projected demand in highly-qualified personnel, the UAC has implemented multiple programmes to train or retrain its employees in the priority competencies identified by the Corporation.

The UAC’s employee training and development system includes providing career guidance for school students, encouraging them to enrol for industry-specific education curriculums at post-secondary institutions, arranging training programmes at relevant universities and vocational schools, using financial support mechanisms offered by state programmes and projects, developing and introducing occupational and educational standards, as well as training and advanced training programmes in priority competencies identified by the Corporation.



46,600

More than 46,600 employees of the UAC (45.3% of the total headcount) completed advanced training in 2017, including 22,756 workers.



50

divisional managers of the Corporation’s enterprises were trained under the UAC’s Digital Transformation corporate education programme.



Succession planning
In 2017 the Corporation created a succession pool—a leadership team to facilitate the UAC’s strategy through the development and implementation of priority projects, establishing a corporate culture, streamlining the processes and ensuring that employees at all levels are engaged in these activities. In 2017 the UAC’s succession pool included as follows:
• Leadership talent pool (to fill the senior executive positions in PJSC UAC)—16 ppl;
• Mid-level management pool (unit managers, programme and project managers)— 32 ppl;
• Bench strength (employees who can potentially fill leadership positions)—102ppl.



In December 2017 the Moscow School of Management Skolkovo held the first module of UAC’s Digital Transformation corporate education programme that was aimed at shaping a leadership team to facilitate the Corporation’s digital transformation strategy. A total of 50 unit managers from the Corporation’s various enterprises received training. The programme won the annual Skolkovo Trend Award 2017 for development digital initiatives in the aircraft industry.



In 2017 the UAC held a third WorldSkills Open Corporate Championship to celebrate the professional excellence in the aircraft industry. The Open Corporate Championship also included JuniorSkills competitions in Aircraft Manufacturing and Maintenance for students of relevant career-oriented secondary school classes. In addition, representatives of the Corporation participated in the WorldSkills National Competition 2017 held in Yekaterinburg in November.

Cooperating with educational institutions

To ensure a stable inflow of quality engineering talent, UAC has cooperated with the country’s leading aerospace engineering schools; in particular, the Corporation has opened specialised departments at a number of universities. The main fields of education are aircraft and helicopter manufacturing, aircraft engineering, design-engineering support of mechanical engineering, and avionics systems and complexes.

In 2017 the UAC, in cooperation with the Moscow Aviation Institute, introduced an educational course for employees of Russian hightech corporations as part of the programme “Managing the Transition of the Corporations to Organisational Life-Cycle”. The programme covers the main business processes of aircraft life-cycle management, including maintenance, design, manufacturing, servicing and knowledge management.

In order to attract young talent, the UAC has implemented a number of projects in cooperation with vocational schools and profession-oriented secondary schools, and organised academic competitions. The Corporation’s enterprises regularly hold Welcome Days for college and high school students.

Since 2016 the UAC has cooperated with Artek International Children’s Centre in the Crimea. The Corporation has also held biennial themed sessions for winners of aerospace competitions and contests with a view to introduce modern aircraft manufacturing technologies and the industry’s most promising projects to young talents. The summer camp features an aero lab that operates throughout the season, with support from the UAC. In 2017 the UAC launched a specialised Aero training course at Quantorium children’s technology parks in Moscow, Ulyanovsk, Samara and Ryazan that targets school students aged between 14 and 17. The participants in the course take a look into the basics of aircraft engineering, design and make their own model aircraft; in particular, they can use additive, laser and composite manufacturing technologies.

300

industry experts participated in the Future of Aviation Industry education and discussion stream

The participants who have demonstrated outstanding results in the programme offered by the Moscow technology park will be eligible for free enrolment at the Moscow Aviation Institute or the Bauman Moscow State Technical University, granted they have successfully passed their State Exams. There are plans to extend this practice to include the programmes at regional technology parks.

In 2017 the UAC once again participated in the Nauka 0+ science festival at the Lomonosov Moscow State University where it presented an exhibition display on advanced aircraft and technologies, held industry-specific quests for ‘air-minded’ high school students and delivered a series of lectures on aircraft engineering.

The UAC cooperated with the industry leaders on organising the Future of Aviation Industry education and discussion stream on a number of issues related to the global trends in aircraft engineering at the World Festival of Youth and Students in Sochi in October 2017. The stream brought together more than 300 industry experts from 10 countries across the globe.



In the 2017–18 academic year JSC Sukhoi Civil Aircraft, the UAC and the Moscow Aviation Institute, in partnership with the Shanghai Jiao Tong University (China), launched corporate Masters Degree programmes in Composite Structural Design Engineering and Product Life Cycle Management Technologies that are taught in English. The main objective of the project is to train the personnel for the Russian-Chinese long-haul wide-body aircraft programme (CR929).

Occupational health and safety

The occupational health and safety policy of the UAC is aimed at ensuring industrial safety and protecting the health of the Corporation’s employees.

The occupational health and safety system in the Corporation is governed by internal policies and procedures (administrative orders, regulations and guidelines) outlining the authorities and responsibilities of the officials on ensuring safe working conditions and occupational health and safety, the procedure of scheduling and conducting safety drills, including on electrical and fire safety, as well as the procedure for working environment specialist assessments.

In 2017 the Corporation made further progress on building a corporate occupational health and safety system which implies introducing a unified approach on key aspects of ensuring safe working conditions and providing for industry-specific compensations for each of the UAC’s enterprises.

The Corporation has participated in working groups of the Russian Ministry of Labour on the development of occupational health and safety regulations. It has also cooperated with the Russian Aviation Industry Workers’ Union, and has actively participated in public debate on draft occupational health and safety legislation. In addition, the UAC was among the initiators and active contributors of the annual industry meeting that is held as part of the Russian National Occupational Health and Safety Week and is attended by representatives of relevant ministries and agencies, integrated structures of the aircraft industry and airlines, public organisations and trade unions.

The Corporation implements multiple measures aimed at improving organisational health and safety in line with the collective agreements, in particular:
• Working environment specialist assessments;
• Mandatory pre-placement and routine medical examinations;
• Improvement of workplace lighting, modernisation of the HVAC systems;
• Collective protection equipment;
• Protective garments and personal protective equipment, as well as cleansing and decontamination agents for the employees;
• Employee training in safe working practices;
• Sporting assistance for employees.

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ENVIRONMENTAL SAFETY

Structure
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