Agreement with IATUO

G4-LA8, G4-11 GC-3 CPI 3.1.4

The Agreement between the employer and LUKOIL’s Association of Trade Unions (hereinafter referred to as the Agreement with IATUO) for 2015–2017 takes account of the provisions of the applicable labor law, the provisions of the 2014–2016 Master Agreement between all-Russian trade union associations, all-Russian associations of employers and the Russian Government, the industry-wide agreement of organizations operating in the oil and gas industry, construction of oil and gas infrastructure in the Russian Federation. The Agreement with IATUO provides for a number of additional guarantees and benefits for employees, compared with those outlined in the legislation and the documents mentioned above.

The Agreement with IATUO outlines the obligations mutually assumed by the Company and its employees with regard to social or employment matters, basic rules applied when dealing with labor relations matters, working and leisure hours, remuneration, health and safety, social benefits and guarantees, youth and veterans activities in view of the peculiarities of the policies and local regulations adopted by PJSC LUKOIL. G4-LA8

The Agreement serves as a milestone for LUKOIL Group entities when signing collective agreements. The obligations formalized in such agreements are consistently fulfilled, which is demonstrated by the results of collective bargaining campaigns.

Information on compliance with collective agreements is published at the IATUO website

During the reporting period, the subsidiaries of the Company concluded 47 collective agreements in Russia, 11 in foreign entities and two agreements (at OOO Karpatneftekhim and ZAO LUKOR) which were recognized for the last time in 2016 due to the sale of assets.

In 2016, 96.9% of employees were covered by collective agreements. G4-11 GC-3 CPI 3.1.4

Annual competitions held by the Russian Oil and Gas Industry Construction Trade Union demonstrate that the collective agreements made by the LUKOIL Group are among the best in the industry, confirming that the Company’s employees have an adequate level of social guarantees.

Priority issues are addressed at the meetings of the IATUO Council and at meetings between trade unions and the management, together with the employees. IATUO and trade union committees consistently monitor the social and economic situation in LUKOIL entities and in the regions of presence. The results of this monitoring are also used by PJSC LUKOIL.

In foreign LUKOIL Group entities with active IATUO organizations, in 2015–2016, agreements formalize the following obligations:

  • labor management contributing to high productivity and quality work of employees in accordance with their specialization and qualification;
  • provision of economic rights, social benefits and guarantees established by the country’s legislation and collective agreements;
  • ensuring occupational safety and employee health protection;
  • offering wages at least at the level of the current norms applied in the country;
  • having a socially responsible approach to the restructuring of entities; if there is a need to cut the number of employees, preemptive actions are taken to reduce social tension among the personnel;
  • a healthy moral and psychological climate and corporate solidarity, a creative approach to work, performance efficiency improvement, promotion of amateur creativity among employees and their family members, support of popular sports or other athletic activities by the employees or their families.
“The model of social partnership built in LUKOIL seems, to me, to be very effective: it combines the best traditions with the realities of modern life, and is in constant development. It is no coincidence that many experts, both in Russia and abroad, consider it unique”.
V.Yu. Alekperov, President and CEO of PJSC LUKOIL
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