Employee relations

Collective bargaining plays an important role in the Company. KPO respects the rights of its employees to organize a trade union and participate in negotiations of the collective agreement.

The following three Trade Union organizations represent the interests of Company employees: Public Association “Local Trade Union of KPO employees”, Public Association “Karachaganak local professional union of KPO employees and contractors” and Public Association “Local trade union of Karachaganak Petroleum Operating B.V. employees “TRUST” and contractor companies”.  As part of their duties, Trade Unions develop a draft Collective Agreements addressing various aspects of social and labour relations. The provisions of the Collective Agreement are applied to all KPO employees regardless of their membership in the Trade Unions.

In the end of 2018, a new Collective agreement for 2019-2021 was signed between KPO and Trade Unions. Amendments in new agreement primarily referred to payment issues, social compensation and benefits as well as other issues related to the improvement of social conditions of employees. 

KPO has two feedback mechanisms for grievance: applications to HR Controllership either directly or through Trade Union and the Hotline. In 2018, HR received 30 grievances and 16 applications. The grievances received addressed such issues as dereliction of labour discipline, employment, resolving conflict situations, abuse of authority in job duties, misconduct with contractor employees. All received grievances have been reviewed and resolved.

In accordance with the Collective agreement, KPO has the obligation to raise a minimum two months’  notice to Trade Unions in case of liquidation of the company with subsequent reduction in staff or change of the system or amount of remuneration leading to deterioration of employees’ conditions.

In 2018, 24 KPO employees applied for the voluntary dissolution of labour relations as part of the Voluntary Dissolution of Employment Relationship Programme of Collective Agreement, pursuant to the RoQ Labour Code dated 2017 (Art. 52).

In order to prevent any risks of forced labour and/or violations of employees’ rights to hold meetings or to have a collective bargaining, KPO regularly provides clarification sessions for contractor organisations on legislation requirements, internal procedures and policies. Such violations could not be excluded in case of lack of monitoring over observance of legislative requirements in some contractor and subcontractor organisations.