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.Three Trade Union represent the interests of employees:

  • Public Association “Local Trade Union of KPO employees”;
  • Public Association “Karachaganak Local Professional Union of KPO employees and contractors”;
  • Public Association “Local Trade Union of Karachaganak Petroleum Operating B.V. employees and contractor companies “TRUST”.

Trade unions develop a draft Collective Agreements addressing various aspects of social and labour relations and lead negotiations with the Company.  In 2019, the Collective Agreement signed for 2019-2021 was effective. Provisions of the Collective Agreement are applied to all KPO employees regardless of their membership in the Trade Unions.

KPO has a few grievance mechanisms: applications to HR Controllership either directly or through Trade Union, and via the anonymous Hotline. In 2019, HR received 35 grievances and applications. The received grievances addressed such issues as labour misconduct, employment, conflict resolution, abuse of power, misconduct with contractor employees. All received grievances were reviewed and resolved.

In accordance with the Collective agreement, KPO has the obligation to raise a minimum two month (8 weeks) notice to Trade Unions in case of liquidation of the Сompany with subsequent reduction in staff, system or amount of remuneration leading to deprivation of employees’ conditions.

In 2019, 42 KPO employees applied for the voluntary dissolution of labour relations (24 employees in 2018, 45 employees in 2017) as part of the Voluntary Dissolution of Employment Relationship Programme of Collective Agreement, pursuant to the RoQ Labour Code dated 2017 (Art. 52).

Industrial relations

KPO has implemented the ‘Care for People’ Programme aimed at creating and maintaining favorable working conditions for employees of contractor/ subcontractor organisations.   

The programme mainly focuses on creating the healthy work climate, ensuring compliance with the Code of Conduct, commonly recognized norms and standards of behavior, and also preventing causes and prerequisites contributing to manifestation of discontent and emergence of social unrest within the KPO contractors/subcontractors’ staff.  

In July 2019, a new Industrial Relations division was established as part of the KPO Human Resources Controllership.  Its main duties include:

  • Continuous monitoring and analysis of the work environment in contractor/ subcontractor organizations;
  • Communication and hands-on interaction with the management and representatives of employees of contractor/ subcontractor organizations and people responsible for organization of work processes and compliance with labour legislation, and also with collective bargaining associations (trade unions, working committees, industry councils).

Pursuant to the documents developed in 2019 and approved by the RoQ Ministry of Energy - Industrial Relations Policy and Integrated Actions Plan for resolving of socio-economic issues and for prevention of protest actions in KPO contractor organizations, KPO has set the following targets:

  • Minimize risks of conflicts and escalation/ complication of socio-economic situation within the KPO presence;
  • Timely detect and rectify causes and prerequisites for the creation of social unrest due to degradation of staff morale;
  • Ensure compliance of the current contract/subcontractor production and economic activities with the labour regulations and internal KPO policies and procedures in industrial relations. 

To achieve the Company’s ambition for 2019, KPO initiated regular on-site tours to operational worksites, where contractor/subcontractor companies’ representatives perform their production and business activities with engagement of the larger number of people. In the course of such tours KPO representatives visit and inspect workplaces, bus muster points, rest and meal facilities, accommodation camps (if available), and first-aid stations.  

Also, regular random surveys were conducted addressing matters, such as completeness and timeliness of salary payments and other benefits, satisfaction with quality and assortment of meals, accommodation conditions, and provision of personal protective equipment. 

Based on the received data, four KPO departments (contract holders) and the management of nine major contractors were issued notifications to eliminate identified shortcomings in terms of provision to personnel adequate social and living conditions addressing sanitary and hygienic requirements.

Therefore, activities conducted during 2019 since the establishment of the Industrial Relations division has been contributing towards social stability within the area of KPO responsibility and to prevention of social unrest among contractor/subcontractor personnel.