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Social partnership

The system of social partnership, developed by the Company right after its establishment, provides tools to successfully address social, labor and operational issues in the best interests of the employer and employees.

LUKOIL is committed to principles and standards, established by conventions of the International Labor Organization. The company respects the right of employees to be represented by a trade union organization of their choice, as well as all other basic rights, related to freedom of association, self-organization in trade unions and collective bargaining.

The Company's obligations to its workforce, set forth in the Social Code of PJSC LUKOIL, are particularized in the course of collective negotiations with trade union organizations and enshrined in agreements between the Company and a trade union association, as well as in corporate regulations.  According to these agreements, the Company shall guarantee freedom of collective negotiations in Russia and

  • provide an opportunity to representatives of trade union organizations to be engaged in the management activities of LUKOIL Group companies;

  • to consider opinions of trade union organizations, as required by the Labor Code of the Russian Federation, the Industry Agreement, the agreement between the employer and the trade union association and collective bargain agreements of LUKOIL Group companies. 

The International Association of Trade Union Organizations of PJSC LUKOIL (IATUO) is a nonprofit organization that protects labor, occupational, social and economic interests of LUKOIL Group's employees and unites efforts of the workforce to meet operational challenges.

IATUO works with national trade unions in countries where LUKOIL companies operate, its foreign trade union affiliates functioning as part of national industrial trade unions.

IATUO's Focal Areas:

  • Protection of social, economic rights, labor and occupational interests;

  • Social partnership;

  • Human rights advocacy and control over labor legislation compliance

  • Health, safety and environment protection;

  • Communication, promotion, analytics;

  • Administration

  • Global operations

Trade union organizations and IATUO act as authorized representatives of employees. Being in regular negotiations and consultations with the Company's management, they represent and communicate opinion of employees on issues, related to their rights and actions taken by the management.

The effective agreements between LUKOIL Group companies and trade union associations in Russia and abroad, as well as collective bargain agreements are an effective tool to successfully handle operational and social tasks.

The specific feature of LUKOIL's social policy is that the employer preserves basic corporate social guarantees and delivers on commitments under collective bargain agreements even in times, tumultuous for the company and the country's economy. 

The agreement between a trade union and LUKOIL is the primary document that regulates social and labor issues, including general terms of remuneration, health and safety, labor guarantees, social privileges for employees, their families, retirees and other aspects. 

Collective bargain agreements, based on the agreement between LUKOIL and trade unions, aim to improve labor conditions, remuneration, social support packages and other aspects with regard to the local specifics. Social and labor relations bilateral commissions of companies that acceded to the agreement, enter guarantees and privileges in collective agreements, consistent with the company's financial capabilities, but not below the level, established by the agreement basic agreement between LUKOIL and trade unions.

LUKOIL's IATUO and IATUO member trade union organizations control compliance of LUKOIL Group companies with labor laws to avoid any infringement of rights of the employees and preserve healthy mental and psychological environment. The human rights advocacy by the trade union association is based on the core principles of the Company's social responsibility and provides for a scope of consistent measures, envisaging that trade unions:

  • participate in lawmaking together with state and local authorities;

  • participate in agreement-based regulation of social and labor relations as part of social partnership;

  • consult on observance and protection of employee's rights;

  • give pre-trial and judicial protection to employees;

  • provide informational and methodological support on legal issues;

  • participate in agreement-based regulation of social and labor relations as part of social partnership;

  • support social and labor relations bilateral commissions, involving representatives both of the employer and employees and supervising compliance with collective bargain and labor agreements;

LUKOIL and IATUO have always been consistent in their joint efforts to protect the best health and safety interests and rights of employees.

Working closely with HSE teams of LUKOIL Group companies, IATUO trade union organizations pay special attention to the quality of occupational safety drills, prevention of accidents and occupational diseases, medical services, availability of personal and collective protection equipment, HSE awareness and promotion. 

A valuable contribution to better HSE performance is made by a technical inspectorate and authorized representatives of trade unions, who efficiently control all operations, take preventive measures, oversee HSE compliance and deliver trainings and drills. IATUO is also a body to control compliance of contractors, operating on the Company's sites, with corporate safety standards.

LUKOIL and IATUO cooperate with IndustriALL Global Union, the world's largest global federation of trade unions with the membership of over fifty million workers of 140 countries. The cooperation is regulated by the Global Framework Agreement, concluded between IndustriALL Global Union, Russian Oil, Gas and Construction Workers' Union, PJSC LUKOIL and LUKOIL IATUO. Intended to ensure compliance with best practices, applied to guarantee rights of trade unions, occupational safety and health, environmental protection and quality working conditions across LUKOIL Group companies in various locations, this agreement serves as a platform for social dialogue and a tool to improve labor relations.

Cooperating with the International Labor Organization since 2012, LUKOIL participates in the Partnership for Youth Employment in the Commonwealth of Independent States. The aim of this partnership is to increase efficiency of youth employment policies and initiatives in Azerbaijan, Kazakhstan and Russia through regional cooperation and exchange of best practices with the focus on the local specifics.

Uniting their efforts with relevant ministerial bodies, social partners and other stakeholders, the parties to the initiative have developed a road map to facilitate youth employment, tested innovative programs in several substituents of the Russian Federation (in the Kalmyk Republic, Khanty-Mansi Autonomous District and Perm Region). Ministries developed and adopted a tripartite Youth Employment Action Plan in Kazakhstan that defined priorities of youth employment policies. Azerbaijan developed a new state employment strategy and implemented various initiatives to facilitate youth employment in cities and rural regions. A joint committee, established to supervise the project progress, holds regular meetings to ensure the project's efficient management. The completion of the project is slated for 2022.