Improvement of the Employee Incentive System at OJSC Vorgashorskaya Mine

Abstract

The description and analysis of the current position of the incentive system of the employees of OJSC Vorgashorskaya Mine are given. Comparison of two approaches to determination of labor remuneration costs - labor and market ones - is given. The last one means determination of personal interest of an employee in the stable position of a mine in the market: the higher is a worker's labor performance, the higher is his income, which is directly connected with the enterprise income. At present demand for coal is one of the main factors influencing the mining plan of OJSC "Vorgashorskaya Mine". It has been revealed that the market orientation is currently preferable for the mine. In this connection a variant of improvement of the system of bonus payment to engineering and technical workers (ETW) of the mine management apparatus, which depends on the indicator of reduction of production cost. It introduces a fund-forming indicator of premiums, called the rate of cost reduction, the numerical value of which does not remain constant for the next planning period, and changes according to changes in the cost structure. In addition, the paper proposes to add two more grades to the wage grid. This achieves the stimulation of workers with the highest discharge, who make a great contribution to the results of both the collective and the enterprise as a whole. In the new tariff conditions, the employee sees the prospects of growth of his skills, professionalism and, of course, his income.