All Basic Element companies have programs to provide care for their employees and the communities where they operate. Basic Element supplements these programs with a substantial number of its own efforts. In the area of education, the company continues to support Workers of the New Generation, a program of professional education and training in twelve regions of the country, to Moscow State University, where Basic Element assists with curricula in physics, business management, public administration and economics. In the area of culture, Basic Element and its companies for many years provide support to the Bolshoi Theater.
The purpose of the "Workers of the New Generation" program is to create a new model to provide entry-level and mid-level vocational training for workers and technicians in 15 to 20 colleges. From 2007 to 2009, the project will equip 1,500 young workers with qualifications not lower than the fifth and sixth levels, and will train 2,500 workers and technicians for GAZ Group's factories, as well as establishing a training center for workers and technicians.
Responding to a lack of qualified workers, Basic Element has decided to take matters in its own hands. This year, a training program for vocational training colleges (VTCs) and technical colleges (tekhnikums) was launched. From this program, the education departments in 10 cities will receive the most up-to-date equipment, and the students who graduate will fit the requirements for being hired at our holding's emerging companies.
In Russia today, there are about 3,900 vocational schools, about 1.5 times fewer than during Soviet times. A large portion of the colleges are dealing with seriously under-qualified teachers and outdated curricula. The training programs do not take into account today's realities and the specifics of the equipment employed at modern production facilities.
Basic Element has had to deal with a similar problem. The holding's factories need 2,500 new highly qualified workers each year. In an ideal world, the newly-hired personnel,should "hit the road running," but at the moment, the situation is far from perfect. Not only the training curricula does not match the requirements of the company's plants, the new graduates receive Level 3 or 4 professional qualification, but the factories require Level 5 or 6. Consequently, in order to meet the new requirements, another six months to one year of on-the-job training is required - and such transition costs ip to 150,000 rubles per person As a result, Basic Element decided to implement Workers of the New Generation training program in thre country's VTCs.
Despite the crisis, in the next three years Basic Element's personnel will continue to assist the implementation of modern educational programs. Within these programs, Basic Element will continue introduction of new training methods and professional development of VTCs' faculty. The students will continue undergoing the brand new training program providing for up to 70% of time spent at actual production facilities, acquiring practical experience and a set of high-quality, sustainable and modern professional skills as required by employers.
