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OCCUPATIONAL SAFETY

In pursuance of the applicable laws of the Russian Federation and the Republic of Tatarstan, as well as regulatory enactments and regulatory technical documents on occupational safety Kazanorgsintez PJSC carries out targeted activities in order to improve the Company’s system aimed at provision of accident-free operation, creation of healthy and safe working conditions, and prevention of workplace injuries and occupational diseases.

In 2011, the Company implemented Occupational Safety and Health Management System and obtained a Certificate of Compliance of this System to the requirements of international standard OHSAS 18001:2007 and GOST 12.0.230-2007. In 2018, the certification agency Bureau Veritas (Bureau Veritas Certification Rus JSC) performed the certification audit of the Occupational Safety and Health Management System with the confirmation of the certificate validity.

A standard of the Integrated Management System entitled “Hazard Identification, Risk Assessment and Management” was developed according to the Occupational Safety and Health Management System. As per the procedure defined by STO IMS 000-4.3-000-48 “Hazard Identification, Risk Assessment and Management” the Hazard identification and Risk estimation were carried out in the Company’s divisions. Occupational Safety and Health Management System is an important element in prevention of industrial accidents and occupational diseases, it allows identifying existing risks at an early stage and taking measures to reduce or eliminate them. Over 4000 hazards were identified for 99 divisions. Following the calculations’ results the main share of risk is classified as “low” which is acceptable for safe performance of work subject to observance of occupational safety requirements. For the risks classified as “medium” a “Program for achieving Occupational Safety and Health goals” was developed to decrease the risks to an acceptable level.

The Company’s activities on exercising employees’ and employers’ labor rights were as well certified. As a result of the work performed, Kazanorgsintez PJSC was among the first large enterprises of the Republic of Tatarstan to obtain a “Certificate of Trust to Employer” and to be included in the register of employers who guarantee the observance of employees’ labor rights.

Management and Trade Union Committee of Kazanorgsintez PJSC yearly develop and implement the Agreement on Occupational Safety. In accordance with the Agreement 60 actions for the amount of 41 626.95 thousand rubles were scheduled for 2018, out of which 57 actions for the amount of 36 499.58 thousand rubles had been carried out. Occupational conditions for 1 531 employees including 137 women were improved. By the Agreement with Management and the Trade Union Committee of the Company 3 actions had been postponed to 2019 for objective reasons.

In 2018, the expenditures related with occupational safety amounted to 544 659 thousand rubles (in 2017 – 549 120 thousand rubles) including the expenditures for special meals, safety clothes, acquisition of regulatory technical documentation on occupational safety, preventive medical examination, training in occupational safety, actions under Collective Employment Agreement, conducting a special assessment of working environment and etc.

Some 648 managers and specialists of Kazanorgsintez PJSC had pre-certification training (Occupational safety training) in 2018. During the year Company’s employees continued training in the requirements of the “Occupational safety rules for elevated jobs” approved by order No.155n of the Ministry of Labor of Russia dated 28.03.2014. In 2018, some 363 workers and specialists passed such training.

The employees involved in harmful and/or hazardous jobs as well as in jobs associated with contamination are given a certified personal protective equipment free of charge in compliance with the Lists of safety clothes, safety shoes and other personal protective equipment to be given to division employees, approved by the General Director of Kazanorgsintez PJSC and agreed upon with the Trade Union Committee.

Occupational safety and health division monitors the timely provision of safety clothes, safety shoes and other personal protective equipment as per the Standard industry sector codes. No interruption in provision of safety clothes and safety shoes was revealed in 2018.

All new employees of the Company shall pass medical examination in the Company’s polyclinic. Employees involved in harmful jobs receive special meals and milk, and attend annual preventive medical examination.

Each year Kazanorgsintez PJSC develops and implements Plan of financing the preventive actions to reduce workplace injuries and occupational diseases according to the Rules of financing preventive actions to reduce workplace injuries and occupational diseases of employees and of financing health resort treatment of employees involved in jobs associated with harmful and/or workplace factors. The financing is performed at the expense of insurance payments for Compulsory Social Insurance against Industrial Accidents and Occupational Diseases to be duly transferred to the Social Insurance Fund of the Russian Federation. In 2018, pursuant to this plan the Company financed the acquisition of personal protective equipment for employees to the amount of 6 857 323 rubles.

Over a period of 3 years Kazanorgsintez PJSC has been participating in the All-Russian contest “Safety and success” on the best work arrangement as related to working conditions and safety. In 2018, Kazanorgsintez PJSC was ranked first in the nomination “The best in the field of working conditions and safety among manufacturing organizations” in the Republic of Tatarstan.

Workplace accidents

The number of accidents in 2017 made 1. In 2018, there were 5 cases, of which 1 was serious and 1 was fatal. Frequency coefficient = 0.61.

All accidents have been investigated according to the requirements of occupational safety laws. Guilty persons were revealed and measures to eliminate violations have been developed.

In compliance with Federal Law “On Compulsory Social Insurance against Industrial Accidents and Occupational Diseases”, all employees of Kazanorgsintez PJSC performing work under an employment agreement (contract) are insured against work accidents and occupational diseases. Insurance fees are paid as required by the applicable procedure and within the specified period.

In pursuance of the requirements of Article 212 of the Labor Code of the Russian Federation, Article 9 of Federal Law “Ad-hoc evaluation of working conditions” No.426-FZ of 28.12.2013 in the Company there are Commissions for the organization and conduct of Ad-hoc evaluation of working conditions in the Company’s divisions and Central Commission for Ad-hoc evaluation of working conditions for the Company. The order of the General Director of Kazanorgsintez PJSC approved the Central Commission’s decisions. Actions to modify the terms and conditions of employment agreements with employees were carried out in compliance with the requirements of the Labor Law of the Russian Federation. Extra fare of insurance contribution to the Pension Fund of the Russian Federation, compensation payments and additional leaves to employees involved in jobs associated with harmful and/or workplace factors were applied taking into account the class (subclass) of working conditions following the results of Ad-hoc evaluation of working conditions in divisions and as per legal requirements. At the moment the Ad-hoc evaluation has been carried out at 99% of workplaces. 4404 workplaces have been evaluated, of which 2441 were having acceptable occupational conditions (class 2) and 1963 – with harmful occupational conditions (class 3). Employees involved in jobs with harmful conditions have the compensation in accordance with the law. Based on the results of Ad-hoc evaluation of working conditions actions are developed to improve occupational conditions. Employees familiarize with the results of Special Evaluation Study of occupational conditions within the time period established by the law.

Information of the status of occupational safety is communicated to employees

• at meetings on results of the Company activities regarding occupational safety and health to be held on a regular basis under the guidance of the Company’s Chief Engineer;

• at daily teleconference briefings;

• by means of orders and directives;

• via the Company multi-copy newspaper.

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ПАО "Казаньоргсинтез"

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