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ArticleName Employment remuneration increase: goal and achievement
DOI 10.17580/tsm.2018.11.01
ArticleAuthor Kotlyar B. A., Okunkov A. M.

“TSNOTORGMET” Consulting Centre, Moscow, Russia:

B. A. Kolyar, Managing Director, e-mail:


The All-Russian Industrial Association of Employers “Association of Manufacturers of Mining and Metallurgical Industry” (AMROS), Moscow, Russia:
A. M. Okunkov, Executive Director


The authors propose changes to the Industry Tariff Agreement for mining and metallurgical industry for 2017–2019 years (ITA) and Collective Employment Agreements (CEA) which are necessary to meet the terms of the Decree of the President of Russia Federation of May 7, 2018 No. 204 “On national objectives and strategic tasks of Russian Federation’s development in the period up to 2024”. In order to increase the employee’s income the companies should pay special attention to implementation of the national project “Workforce productivity and employment support”. Also the workforce productivity increase should be achieved not only by means of realization of investment projects, but also through implementation of modern management technologies. Based on the analysis of data collected from the participants of the contests “Mining and metallurgical enterprises with high social effectiveness” the authors recommend the introduction of index “the rate of growth of average salary for one percent of growth of workforce productivity” in order to achieve the annual workforce productivity growth of at least 5%. The normative method of payroll budget calculation is recommended with introduction of the respective provisions to ITA and CEA. The necessity to increase the share of profit used for performance based employment remuneration is justified in the article. Social partnership relationship should be developed and best practices of mining and metallurgical industry should be implemented in order to motivate the employees to improve working hours utilization, workforce productivity increase and increase of operational effectiveness being main conditions for high living standards of all grades of employees.

keywords Decree of the President of Russia, workforce productivity, employee’s remuneration, profit, remuneration, working hours, social partnership

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