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System for work salary management of employees
“Kremikovtzi” AD operates as per system for salary management, which defines the way for distribution of work salary resources of Company and divisions for respective periods during the year; determination and alteration of general basis monthly salary; determination and alteration of allowances and incentives; Calculation of individual monthly gross salary.
The System organizes the items as per:
- Work salary and labor payment of the employees and workers in the Company, according to existing legislation and Collective Labor Contract and exactly:
- Establishing of general salary at appointment;
- Regulations for next level and qualification;
Work salary in “Kremikovtzi” AD is in direct dependence on:
- Personal and collective labor results;
- Achieving of personal qualification and education degree;
- Individual contribution in productivity increasing, production quality and repair activities;
- Development on the post in proven professional skills, qualification and re-qualification;
- Effectiveness from implementation of raw materials, materials and resources in the production;
- Financial results of the Company;
- New ideas for implementation of innovations with real economic effect;
- Labor and technological disciplines and Labor safety;
- Ratio on the stage of general salaries as per designation and categories of employees, according to real requirements for qualification degree and education;
Designation characteristic is a basic document, by which Employer fixes requirements to the employee for work designation
The work designations in the Company are selected by three levels in 15 degrees scale on the base of requirements. Respective general monthly salary is established.
Employees’ estimation is accomplished in accordance with requirements for work post and personal qualities of employee as per post requirements.
Raised employee’s degree in the Company will be given, when they correspond of following requirements:
- Required education and professional qualification;
- Continuous labor results;
- Labor activity.
Proposals for degree rising is an obligation of Chiefs, according to Head of structure section. Employees in the Company are in their own right to submit personally requests to Chairman of respective committee for higher degree.
Established general monthly salary on the base of estimation accomplished from direct Heads and confirmed by Heads of structure sections and they are important for concluding of additional agreements between employees and Employer.
In case of disagreement of workers and employeås with estimation and/or established general monthly salary they have a right to lodge a claimant as per established regulations from the date of estimation and/or determination of general monthly salary.
2 systems of work salary are applied in the Company:
1. Piece system /Piece payment/;
2. Time-work bonus system /Time payment/;
Structuring of individual monthly gross salary of employees as per labor attitudes is accomplished every month. The general monthly salary is not guaranteed and can not be guaranteed, if the employee had not executed due to own fault the obligations as per Labor Contract.
The size of personal monthly gross salary of the employees in Company includes:
Personal monthly salary for actual worked time during the month or payment, worked during the month as per labor standards.
Additional labor payments:
* According to current legislation and Collective Labor Contract.
* For coordination of activities, with purpose to achieve the targets of TPM and Six Sigma in the structure sections of Company.
* For achieved positive results with implementation of System for Total Production Maintenance, by systematic execution of “the steps”.
-Bonuses for increasing of the labor productivity, improvement of the quality indexes and decreasing of the cost of the production:
- Monthly, as per Scheme for labor productivity. The potential possibility for stimulation payment – the bonus is up to 30 % of the general monthly salary for the actually worked time.
The major indexes forming the additional stimulation payments are the following:
* Volume – first quality production only;
* Cost of production;
* Quality of production, as per the approved normative;
The scheme comprises all workers and employees that have termless labor legal relationship with the Employer.
- Daily – when reaching of high production results for structurally determining activities, as per approved indicators and their stages of execution for the day or shift;
- Additional bounties to the individual general monthly salaries of the personnel may be determined and approved by a motivated order of the Executive Director of the Company or officials, which are exclusively appointed by him, based on:
* fulfillment of urgent assigned tasks – development of new and non-standard decisions for concrete problems
* useful initiative
- The Bounties could be:
* individual
* collective
- At the end of the calendar year the workers and employees could be paid bonuses for achievement of good annual results of the Company activity.
* The order and conditions for the additional stimulation shall be agreed with the Trade unions – a party of the collective labor code.
The compensation of the inflation processes is performed as per an agreed compensatory mechanism together with the Trade unions, being a party of the collective labor code.
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