Sustainable development

Staff composition

FESCO’s employees come from various age groups.

Personnel movement

FESCO has an effective HR policy in place and uses a variety of staff recruitment methods which help it maintain a stable personnel turnover rate in terms of dismissed employees. In 2021, it stood at 15.4% for voluntary resignations and 20.8% for all reasons for resignation. The turnover value is largely driven by the specific operations of the Group’s shared service centre, FESCO Service Centre (FSC), which recruits employees to fill initial-level job positions where they perform operating functions and gain experience, and subsequently can take a higher-level job in any other company.

Code of Corporate and Business Ethics

FESCO vigorously supports and strictly respects employment regulations and employees’ rights and freedoms, offers equal opportunities, and guarantees employee protection against any form of discrimination. FESCO’s ethical conduct rules apply to employee relations through its Code of Corporate and Business Ethics, which states that the Company has no work limitations based on gender, ethnic origin, religion, or any other grounds or circumstances unrelated to employees’ business qualities.

The Company follows the principles of an honest, fair, and open policy in respect of both its own staff and external counterparties:

• promoting open attitudes in business communication;
• ensuring workplace management conducive to effective teamwork and employees’ satisfaction with their job;
• creating and maintaining a stable favourable moral environment for personnel to ensure an open exchange of opinions facilitating efficient implementation of tasks assigned and to unlock staff members’ potential;
• creating conditions for staff training and skill enhancement.

The Code of Corporate and Business Ethics applies to staff relations with external counterparties.

Incentives

Financial incentives

FESCO strives to create comfortable working conditions for its employees and provides them with competitive salaries and corporate benefits.

The remuneration system contemplated by FESCO’s strategy is focused on increasing transportation volumes and profit margins, improving the quality of cargo forwarding services, and enhancing labour efficiency. The incentive scheme provides for remuneration payment depending on employees’ operating and financial performance and personal contribution.

Social protection

FESCO provides its employees with social protection and benefits over and above those provided for by the Russian labour laws, which helps increase labour efficiency and performance. All FESCO employees hold voluntary health insurance policies and can receive free medical care at the country’s best healthcare facilities specified in the insurance contract. The VHI programme also covers outpatient care, hospital services, preventive vaccination, dental care, treatment procedures, round-the-clock trauma services, diagnostic testing, healthcare at home, and emergency medical services. In 2021, VHI costs amounted to RUB 72 million.

Trade unions

FESCO’s trade unions are represented by six shop-floor trade unions consolidated into regional trade union organisations of Vladivostok and the Primorye Territory and forming part of three public organisations: the Primorye Territory Public Organisation of Sea Port Workers of the Russian Dockers’ Union, the Water Transport Workers Union, and the Russian Seafarers’ Union which is affiliated with the International Transport Workers’ Federation.

In their activities, the trade unions of dockers and seafarers represent and protect the rights and legitimate interests of the trade union members in matters associated with labour relations and coordination of the trade union organisations’ efforts to protect trade union members’ individual and collective social, labour, professional, and other related rights and interests.

In 2021, 46.7% of all FESCO employees were trade union members, with management accounting for 9% of such members and production personnel for 91%.

In 2021, the trade unions provided social support to trade union members and their families in the following areas:

• financial support (in connection with illness, death, child birth, marriage registration, employees’ anniversaries, retirement, as well as for families with multiple children and those raising disabled children);
• issuing letters of acknowledgement to trade union members for their professionalism and proactive attitude;
• social team-building events (tours to the Primorye Star waterfall, the Race of Heroes sporting event, professional skills competitions).

FESCO’s trade unions actively contribute to the raising of future generations by arranging social events for trade union members’ children on holidays. In 2021, two large projects were implemented in this area: a tennis and chess tournament in celebration of the Defender of the Fatherland Day and a Job Safety drawing contest in celebration of the Children’s Day. In 2021, the trade union also carried on its tradition of buying tickets to children entertainment centres for the Children’s Day and compensating for New Year children’s events.

As part of the social efforts to combat COVID-19, the trade unions of the Primorye Territory representing FESCO’s employees provided food packages to their supported pensioners and supermarket certificates to the trade union members vaccinated under the state anti-COVID-19 policy.

Personnel training

In 2021, the Personnel Training process methodology was redesigned, which provided a basis for putting together our own portfolio of internal training sessions, developing a training schedule, and specifying pinpoint business needs for the development of FESCO employees’ specific skills.

We continue to rely on the 10/20/70 training principle where remote on-the-job training for the development of soft skills accounts for 70%, internal training conducted by FESCO’s internal training specialists with a focus on personalised work with the staff, post-training support, and residual knowledge testing for 20%, and external training to develop employees’ key skills and knowledge in their respective professional areas for 10%.

A professional development programme was launched in 2021 for employees of the C.I.T. container terminal providing FESCO with container examination services for detecting defects. A total of 35 employees were trained, accounting for 3.4% of all remote training programmes completed.

FESCO expanded considerably the functions of its corporate library enabling employees not only to read professional literature but also participate in webinars with guest speakers and in corporate competitions held in partnership with Alpina Digital.

Internal coaching became one of the most important aspects in the Personnel Training development in 2021. Thanks to the professional training of employees, the HR Directorate built a team of internal coaches who set about developing that area within the Company.

Recruitment and onboarding

When mapping out employee journey, FESCO abides by the following principles:

• simplicity, clarity, and individual approach;
• special focus on people and professions creating maximum value for the Group;
• focus on HR process automation and employee-friendly services.

The onboarding programme includes:

• an updated welcome course (with onboarding process gamification fine-tuned, knowledge base consolidated, and information on FESCO in general revised);
• a welcome letter for new hires;
• a package of onboarding remote training courses (occupational health and safety, cyber security, first aid);
• a feedback form for new hires.

In the reporting year, the Personnel Recruitment process methodology was redesigned to delimit responsibilities of the business and HR units and describe the main personnel recruitment types, forms, and methods used by FESCO.

In 2021, the number of received job requisitions increased by 9%, with the number of persons recruited growing by 44% thus affecting the percentage of filled jobs, which totalled 49% of received requisitions.

The percentage of fulfilled requisitions was improved for the following vacancy categories:

• commercial personnel: by eight working days;
• blue-collar workers: by 47 working days;
• middle management: by eight working days.