The Company’s position with regards to employment entitlement and human rights

G4-15, DMA, CPI 1.1

The Company’s position with regards to employment entitlement and human rights is expressed in the Global Agreement between the IndustriALL Global Union and LUKOIL’s IATUO, the Russian Oil, Gas, and Construction Workers’ Union and ОАО LUKOIL (hereinafter – the Global Agreement). The Content of the Global Agreement confirms LUKOIL’s commitment to the basic principles of labor relations and environment protection stipulated in the UN and International Labor Organization (ILO) conventions. G4-15

The obligations assumed under the General Agreement extend to all areas of activity and subsidiaries directly controlled by the Company, and also require the notification of the organizations with which it interacts (contractors, license holders and major suppliers). DMA, CPI 1.1

Ensuring a safe, life and health friendly working environment, cultivating a responsible attitude to occupational safety at all management levels, and ensuring the proper training of employees in this area are of paramount importance to the Company.

LUKOIL obligations are also concerned with a responsible attitude to the restructuring of entities, fair wages and benefits at the level of industry norms in the countries of its presence, providing opportunities for professional growth (especially to young employees), recognition of the value of family life and the rights of women.

These obligations have become the basis for the Social Code The document is available at the Company’s website, the Personnel Management Policy, the Functional Personnel Management Strategy as well as the Agreement between the employer and PJSC LUKOIL’s professional association for 2015–2017 and have been implemented through collective agreements signed by subsidiaries.

The Company promotes cooperation with international organizations, primarily with the International Labor Organization, to further improve the activities related to personnel management and compliance with the best international practices in the oil industry.

Principles stipulated in the Global Agreement:

  • “2.1. LUKOIL recognizes basic human rights and, in its activities, is guided by the provisions of the UN Universal Declaration of Human Rights.
  • 2.2. LUKOIL greatly appreciates the additional opportunities derived from the rich national and cultural diversity of its employees and the various populations of the regions in which it operates. This is reflected in its activities, which are built upon the following principles:
    • 2.2.1. Respect and support of the traditions of tolerance and benevolence and the preservation of national and cultural traditions, values, arts and crafts in the areas of activity of the entities of the LUKOIL Group;
    • 2.2.2. Respect for the religious beliefs of employees and local populations”.

The Global Agreement also stipulates that the Company has an obligation to respect the rights of trade unions, including the rights enshrined in the core ILO conventions:

  • “3.1.1. The right of every employee to be represented by a trade union of their choice and the basic trade union rights enshrined in ILO Conventions Nos. 87 and 98 concerning freedom of association and the right to organize workers in trade unions, as well as the right to collective bargaining. Thus, LUKOIL agrees not to oppose efforts aimed at involving the employees of LUKOIL Group entities in trade unions.
  • 3.1.2. Ruling out any forms of forced or compulsory labor banned by ILO Conventions No.29 and 105 or other documents.
  • 3.1.3. Actual ruling out of child labor banned by ILO Conventions No.138 and 182.
  • 3.1.4. Encouraging and ensuring equal opportunities and treatment of employees in the employment sector including equal remuneration for men and women for work of equal value as well as non-discrimination in the labor and employment sector as per the requirements of ILO Conventions No.100 and 111 respectively”.
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