Interview with Kamilla Ormanbetova

The Company has taken many steps to improve the social situation at the enterprises. What exactly was done in 2022?

- «NC «Kazakhstan Engineering» JSC (hereinafter - the Company) pays considerable attention to social stability in subsidiary and dependent organizations (hereinafter - SAC).

During 2022, the Company took various measures to prevent hotbeds of social tension among subsidiaries and affiliates.

For example, due to accounts payable and the seizure of accounts of some subsidiaries and affiliates, we provided financial assistance for the payment of salaries to such enterprises as «PZTM» JSC and «SMZ» JSC.

It should be noted that «SMZ» JSC received financial aid from «S.M. Kirov Machine Building Plant» JSC (hereinafter referred to as «MZK» JSC) for TJS 1 million.

In addition, also at the beginning of the winter period of 2022, working clothes (tarpaulin boots and regular boots) were purchased from the collected funds among the employees of the Company to provide material aid to the employees of «MZK» JSC.

What about working conditions?

- The Company strives to improve working conditions for the employees of the production plants. During the current period, many measures have been taken to improve working conditions for employees.

The buildings of the enterprises and their dormitories have undergone major and cosmetic repairs, the roofing has been repaired; classrooms, canteens, toilets and showers have been renovated. During the winter period, heating was provided in enterprise buildings. Unused buildings were converted into storage and office space. In addition, we refurbished work areas and façades of the buildings.

What can you say about remuneration of enterprise employees?

- In the course of the ongoing work, the Company took measures to increase salaries for employees of subsidiaries and affiliates.

By the end of 2022, the average monthly salary in the Company's group amounted to 221 thousand tenge, while the initial plan was 201 thousand tenge.

We also take into account the wage fund, which includes amounts of remuneration for worked and unworked hours, incentive bonuses and allowances, compensation payments related to the work regime and working conditions. Compared to the 2022 estimate, the payroll in 2023 is expected to increase by 8.5%.

Are there any improvements on working issues?

- The Company has reached agreements on long-term cooperation in the supply of railway products, whereby, taking into account social issues, the scope of work has been distributed among «SMZ» JSC, «PZTM» JSC and «Tynys» JSC with TD «TemirTransService» LLP to provide practical assistance.

For example, «Tynys» JSC signed a contract with «Kamkor-Vagon» LLP for the supply of 30,000 wedges in 2022. At the Company's initiative, «Tynys» JSC, together with «REAM-RTI» LLC (Russian Federation), has been working on mastering production of bushings, centralizers, filters and gerotor pump.

As part of «Samruk-Kazyna's» New Production Facilitation Program, the Company has worked to increase the range of civilian products. Under this program, «SMZ» JSC has the opportunity to produce certain types of products for the needs of subsidiaries and affiliates of «Samruk-Kazyna» JSC.

In June 2022 representatives of «NC «Kazakhstan Temir Zholy» JSC (hereinafter – «NC «KTZh» JSC) held a meeting with «ZIK» JSC on the possibility of providing the fleet of locomotives of «NC «KTZh» JSC with security systems, as well as radios and computer equipment, increasing the volume of KLUB-U maintenance, implementation of the ZIK-SKUD access control and management system and the CONWAY-P security alarm system.

The issue of supplying railway products by the Company's enterprises was also highlighted:

• «PZTM» JSC - track tools and spare parts for rolling stock;
• «MZK» JSC - spare parts and components for D100 locomotives;
• «Tynys» JSC - friction wedge, reservoir, contact network parts for freight railcars
• «SMZ» JSC - hatch covers for open wagons and flatbeds).

«NC «Kazakhstan engineering» JSC pays special attention to care for its employees. What examples are there of this thesis?

- Businesses are worthless without the people who work for them. Therefore, there is a need to continuously improve conditions for employees. Such work is constantly monitored by monitoring social tensions among the workforce of subsidiaries and affiliates, preventing wage arrears, and reducing occupational injuries.

The Company's management conducts communication work with employees of subsidiaries and affiliates on a regular basis with field visits, where issues of social stability and relations with the Company have been touched upon, preventing social labor conflicts.

A survey is conducted among employees of subsidiaries and affiliates and plans are made for the future work of the team. For 2022, such a Social Stability Survey was conducted among the workforce of «811 Automobile Repair Plant CI» JSC with the involvement of qualified specialists, who provided an assessment and made suggestions.

Sports Olympics in selected sports were held to bring the workforce together, and a separate action plan and recommendations for improving social stability among the SACs was developed.

Issues relating to the social situation of the enterprises' employees are always a priority for the Company's management.

Thank you for the conversation!