Mechel continues implementing its social programs

Mechel announces that it continues implementing its social programs at all of its subsidiaries. The programs are aimed at providing support to Mechel’s employees’ families, to the youth and elderly generation.

In spite of the world financial and economic crisis, all of Mechel’s main social programs continue to be in effect. Employees of all of the group’s subsidiaries are provided with medical services under the programs of supplemental medical insurance. This summer, as well as in the previous years, about 6 thousand children will have vacations in summer camps including 600 children going to a camp located at the Black Sea coast in August. For the first time in Mechel’s history, the company rents the whole camp to provide the children whose parents work at the group’s various plants with an opportunity to communicate and tell each other about the cities they live in and their parents’ work.

The employees are still provided with subsidized vouchers to physical rehabilitation and recreation centers. Mechel pays for the employees’ education, including higher education. Mechel’s main material aid programs continue to be effective with the focus having been made on assistance to families, women, and children. Mechel subsidizes meal at the plants’ canteens. At many of Mechel’s plants free transportation to the places of work is still provided. The group’s attention is also focused on the questions of support to pensioners and veterans who previously worked at Mechel’s subsidiaries.

Mechel is engaged in constructive dialogue with the trade unions at its subsidiaries. The trade union leaders understand the measures, which help to cope with the situation. Management of the most of Mechel’s plants has had meetings with the trade unions and supplements to the effective collective bargain agreements have been made.

Mechel OAO Senior Vice President Vladimir Polin commented: “If we compare the current scope of our social programs with that in the industry in general, Mechel is the leader in maintaining them. Many other companies abandoned their expenses for children’s recreation, medical insurance, and mass subsidies for meals."

"In spite of the seriousness of the situation, Mechel’s management considers retaining labor staff to be one of its main tasks. In this regard, Mechel’s subsidiaries didn’t make any “crisis-related” staff reduction. Furthermore, many anti-crisis measures being implemented by us are directly targeted at retaining the employees, paying out the wages, and even creating new jobs wherever this is possible. Currently, full-time working day and, respectively, pre-crisis level of salaries are reinstated at almost all Mechel's subsidiaries.”

Mechel OAO Senior Vice President Vladimir Polin continued: “As a matter of fact, everything is quite simple here. There are two strategies: one may drift with the stream and reduce its production, respectively reducing excessive personnel, or try to rebuild its output, in which case no question of massive staff reduction arises. We have definitely chosen the second option for ourselves. Qualified employees are our valuable capital. And we will do our best not only to keep it but also to provide deserving working and living conditions for our employees and their families.”