MMK expands employee benefits package

The Magnitogorsk Iron and Steel Works (MMK) Collective Agreement for 2024–2026 includes a number of benefits, from wage indexation to an increase in subsidies for the purchase of housing.

The new Collective Agreement increases subsidies and paid benefits considerably: the size of cash bonuses has been indexed, the list of situations where paid social leave is available has been expanded, and one-time payments to employees upon the birth of a child have been increased to RUB 22 thousand.

MMK’s management is focused on the development of housing programmes. Subsidies for the purchase of housing by young workers who win professional skills competitions have doubled, to RUB 500 thousand. In addition, under its preferential mortgage programme, MMK compensates employees for up to 50% of mortgage interest paid (up to RUB 20 thousand per month) over a period of five years. The programme is available not only to employees living in Magnitogorsk but also to those who have mortgages in other communities that are home to MMK Group’s production sites. In just the first three months of 2024, 536 employees applied to take part in the programme.

By Metallurgist’s Day, the wages of blue-collar workers (who account for 80% of the Company’s entire workforce) will increase by 10%–15% depending on their pay grade, while the wages of managers and other white-collar employees will be raised by 5%–10%. This will be the second salary increase at MMK this year, following a rise of 10% for all employees in January. Including the January indexation, salaries at MMK will increase by over 20% on average in 2024 compared with the previous year.

“The new version of the Collective Agreement, which has been signed by Company management and the union committee, aligns the interests of both employees and employers by incentivising social partnership,” said Pavel Shilyaev, CEO of MMK. “Benefits and wage increases for MMK Group employees are constantly monitored by Company management.”