Journals →  Gornyi Zhurnal →  2022 →  #10 →  Back

ArticleName Labor rate setting as a framework for enhancing efficiency of mining industry
DOI 10.17580/gzh.2022.10.13
ArticleAuthor Gerasimenko O. S., Kozlova M. N.

Norilsk Nickel’s Polar Division, Norilsk, Russia:

O. S. Gerasimenko, Chief of Workforce Development and Labor Rate Setting Management,
M. N. Kozlova, Head of Department of Rate Setting of Activities in Mineral Mining of Workforce Development and Labor Rate Setting Management


Production engineering in mines of the Norilsk Division of Norilsk Nickel is experiencing considerable modification. Under conditions of continuous retrofit, production improvement and digitalization and unmanned machinery phase-in, the efficient labor management is a prerequisite of production in a transition period. It is emphasized that the Company’s top managers pay peculiar attention to the primary pitch of the production chain—exploration and extraction of rich ore to be concentrated later on and sent to smelting of nonferrous metals (palladium, nickel, platinum copper, as well as silver and gold). The increase in available ore reserves and the gain in production output are amongst the top priority trends of advancing the Norilsk Division of the Company. The article describes the labor rate setting systems adopted at Norilsk Nickel’s Polar Division and generalizes the experience gained in labor rate setting in the mining industry. The photo chronometry observations are illustrated, and the structure of the work time expenditures and losses is analyzed. The elaborated local regulatory documentation enabled a precision computation of labor force as per the actual labor conditions, labor management and occupational safety at a specific production unit. Labor rate setting almost always entails organizational changes—adjustment of operating regime, shift planning, etc., and is often a catalyzer of innovations to be introduced. Furthermore, labor rate setting enables planning, budgeting and real-time management of operations toward meeting strategic challenges in the today’s business environment.

keywords Labor rate setting, mine, time rating, labor force computation, work time loss, production efficiency enhancement

1. Akhmadeev Yu. G., Lebed O. B., Van-Chan V. Yu., Ilin V. B. History of development and increase of mineral assets in the Norilsk Industrial Area. Gornyi Zhurnal. 2020. No. 6. pp. 5–9.
2. Basic provisions on labor rate setting in nonferrous metallurgy. Moscow, 1978. Iss. I, II.
3. Genkin B. M. Labor management, rate setting and remuneration in industry : Textbook. 6th enlarged and revised edition. Moscow : Norma, 2018. 416 p.
4. Pashuto V. P. Labor management, rate setting and remuneration in industry : Learning and practical guide. Moscow : KnoRus, 2017. 318 p.
5. Bychin V. B., Malinin S. V., Shubenkova E. V. Labor management and rate setting. Moscow : Rusayns, 2017. Vol. 2. 373 p.
6. Glubokiy S. V., Borisevich I. V Labor organization and rate setting in present-day production management. Minsk : Izdatelstvo Grevtsova, 2008. 320 p.
7. Usticheva E. G. The organization of the innovation process methods of increase of efficiency of civil servants’s work in Russia. Voprosy innovatsionnoy ekonomiki. 2014. Vol. 4, No. 3. pp. 22–35.
8. Fedchenko A. A. Methodological Approaches to Studying of Labor Productivity. Ekonomika truda. 2016. Vol. 3, No. 1. pp. 41–62.
9. Kuzbozhev E. N., Ryabtseva I. F. Progress and productivity of labor. Moscow : NITs Infra-M, 2020. 174 p.
10. Lange G.-M., Wodon Q., Carey K. The Changing Wealth of Nations 2018 : Building a Sustainable Future. Washington : World Bank Group, 2018. 255 p.
11. Vaz P. H. Discovery of natural resources: A class of general equilibrium models. Energy Economics. 2017. Vol. 61. pp. 174–178.
12. Ranängen H., Lindman Å. A path towards sustainability for the Nordic mining industry. Journal of Cleaner Production. 2017. Vol. 151. pp. 43–52.
13. Lawrence S. A. Work Measurement and Metods Improvement. New York : John Wiley & Sons, Inc., 2000. 450 p.
14. Groover M. P. Work Systems: The Methods, Measurement and Management of Work. Harlow : Pearson, 2006. 79 2 p.
15. Barnes R. M. Motion and Time Study Design and Measurement of Work. 7th ed. New Delhi : Wiley, 2010. 704 p.
16. O’Neill M. J. Measuring Workplace Performance. 2nd ed. Boca Raton : CRC Press, 2006. 372 p.
17. Ensuring decent working time for the future : Report III. International Labour Conference, 107th Session. Geneva : International Labour Office, 2018. 357 p.

Language of full-text russian
Full content Buy