Corporate Social Guarantees for Employees and Pensioners

Social Benefits And Guarantees

PJSC TATNEFT takes care of the welfare and social security of its employees and their families. The Company provides a package of the social benefits and guarantees to its employees. The commitments on their provision are envisaged in the Collective Agreement, which is annually concluded between PJSC TATNEFT and the workforce and covers all the employees and non-working pensioners of the Company.

The Collective Agreement provides for:

  • Incentives and guarantees to workers;
  • Social protection for young workers;
  • Support for veterans and pensioners.

The structure of the social benefits and guarantees is defined by Standard Collective Agreement of the TATNEFT Group of Companies, which is advisory rather than mandatory for all the Group’s entities.

In 2019, changes were introduced and the amounts of payment were changed under the following articles:

  • lump sum payment for annual leave;
  • one-time financial assistance in connection with the first marriage;
  • settlement rates of lump-sum material assistance to employees and retirees, who reach the anniversary age;
  • financial assistance for an employee‘s (retired person’s) family funeral expenses;
  • the amount of material assistance to employees, who are on a parental leave for caring the сhildren aged from one and a half to three years;
  • the amount of material assistance to incomplete families, who do not receive child-support payment;
  • the amount of financial assistance for each child of a multiple children family.

Social Benefits under the Collective Agreement

Employee Benefits and Guarantees

  • Financial assistance to female workers who are on leave to care for children under the age of 3;
  • Financial assistance at birth or adoption of a child under the age of 14;
  • Providing up to three working days to an employee (the father) with the average monthly wage at discharge of the baby from the maternity hospital;
  • Financial assistance in the event of the death of an employee’s close relatives;
  • Financial assistance for funeral expenses for the family of an employee in the event of his death;
  • Financial assistance to orphans under the age of 18 who lost both parents, if one of them was an employee at PJSC TATNEFT;
  • Financial assistance to family with multiple children;
  • Financial assistance to employees with dependent children with disabilities up to 18 years of age;
  • Financial assistance for retirement;
  • Lump sum payment in connection with the annual paid leave granting;
  • Provision of at least two free hours per week or one free day per month to female workers with children under the age of 16 years inclusive (disabled children under 18);
  • Financial assistance to an orphan child under the age of 18, whose parents (or one of them) suffered death at the production facilities of PJSC TATNEFT;
  • Financial assistance to single-parent families;
  • Financial assistance to employees in connection with the onset of the jubilee age;
  • Financial assistance at birth in the family of twins or triplets;
  • Allocation of funds: for the purchase of New Year's gifts for the children of PJSC TATNEFT’s employees; to women for March 8 celebration.

Benefits for Young Workers

  • Interest-free loan for the purchase of furniture and essential goods;
  • Financial assistance to employees who were dismissed in connection with the recruitment into the ranks of the Armed Forces of the Russian Federation and returned to the place of their previous work;
  • Financial assistance for the first marriage.

Benefits for Non-Working Pensioners and Veterans

  • Financial assistance to the Victory Day for participants of the Great Patriotic War, widows and home front workers;
  • Quarterly financial assistance to non-working pensioners who have worked in the system of PJSC TATNEFT for 10 or more years and retired before the establishment of the NNPF;
  • Provision to employees, who have worked in PJSC TATNEFT for 10 or more years, the possibility of early retirement at the expense of the Company with the preservation of the Company’s pensioners benefits and guarantees;
  • Financial assistance in case of the pensioner’s close relatives’ death;
  • Financial assistance for funeral expenses to a pensioner’s the family in the event of his death;
  • Financial assistance to pensioners in connection with the onset of the jubilee age.
  • Allocation of funds: for the Elderly Persons Day; to women for March 8 - the International Women's Day; to the Day of Disabled Persons.

Occupational Safety And Health

The key criterion of the Company’s social responsibility is fulfillment of obligations on creation of safe working conditions.

Recognizing the priority of workers' lives and health over the results of production activities, the Company strives to reduce risks at the workplace, preventing accidents at work, achieving a high level of industrial safety and labor protection. These tasks are ensured by an integrated management system of industrial safety, occupational health and the environment, certified for compliance with the international standards ISO 14001: 2004 and OHSAS 18001:2007.

In accordance with the international standard OHSAS 18001 the Company implemented the "Program (action plan) of PJSC TATNEFT in the area of industrial and occupational safety to prevent injuries, reduce the risk of accidents and unplanned losses for 2013-2015", which aims at preservation of life and health, as well as improvement of working conditions, reduction of accidents, major industrial risks, improvement of the equipment operation safety, as well as improvement of the facilities’ fire protection condition. The amount of RUB 1.6 billion was spent for the purpose in 2015. A similar program was elaborated for the 2016-2018 period.

One of the priorities of the Company's management to create healthy and safe working conditions is to ensure that the workers are provided with protective clothing and other personal protection equipment. In the event of work in harmful or dangerous working conditions, as well as in case of the work carried out in special temperature conditions or the polluted environment the employees shall be provided with specialized clothes, footwear and other personal protection equipment, as well as required disinfectants in accordance with specified model rules.

The Company spent RUB 80.5 million in 2015 to provide the employees with personal protection equipment, while the amount of RUB 246 million was spent to provide required working clothes and footwear.

Traning And Development

The Company has unique conditions for training and development of all the personnel categories. Currently the Company has developed and successfully operates a system of vocational education in the Company, including training and retraining of workers, professionals, as well as senior and mid-level managers.

Training of workers is carried out at the non-governmental educational institution "TATNEFT’s Personnel Training Center” and its eight branches, possessing a modern material and technical base and vast learning experience. The Centre provides training in 307 professions from drilling to the stations’ servicing, including 140 professions supervised by Rostekhnadzor of Russia. Training and advance training of the professionals are carried out by specialized educational institutions of the region and in the Russian Federation.

The priority in the Company’s work is versatile and consistent training of the senior and middle level managers. Improvement of their skills is carried out in educational institutions with a high rating in the training sector of the oil and gas industry.

18,713 employees of the Company attended training and professional development courses in 2015. This number included 10,825 workers, 4,364 managers and 3,524 professionals and employees. The amount of RUB 160 million was spent for the purpose.

Demonstrating care about the health of its employees, the Company implements a program of the voluntary medical insurance, under which the employees can receive qualified medical assistance and get rehabilitation and recovery treatment in the sanatorium-resort institutions.

Education and development

Being one of the industry leaders, TATNEFT Company pays great attention to the Personnel Management Policy. We are interested in attracting responsible and professional employees. For many years, the Company has been paying special attention to the training of future professionals, attracting students and teachers from the Almetyevsk State Petroleum Institute to participate in the Company's projects. We are improving the system of personnel training, which includes the work with educational organizations of vocational training, the Training Center of PJSC TATNEFT, and the Corporate University. We introduce new methods for assessing the competencies of employees, integrating the assessment results into the further development of each professional and manager. Being the industry customer, we participate in the formation of professional standards, and we are also the initiator of opening of the Regional Center for Qualification Assessment. All this contributes to the systematic movement of the Company towards its strategic goal: doubling the Company's internal value to at least $21.5 billion by 2025..

From 2016, the main goal of the Company in terms of staff development is to transfer training to the corporate format in order to minimize the costs associated with the training and coverage of a larger number of students

An important stage in the evolution of the personnel development system in our Company was a Corporate University opening in 2016. In 2017, the University continued to confirm its effectiveness: 3,496 persons were trained within the university walls. 157 groups attended 28 training courses, 18 events were held in the videoconference format, embracing more than 1,500 persons. The plans are even more ambitious for 2018: in addition to the existing set of educational programs based on the Corporate University sessions, it is planned to open target-oriented training programs for the EMBA, Mini MBA, a program for training high-potential HiPo employees, Young Leader Groups and others.

The professional skill improvement of managers and specialists of the Company is carried out in accordance with the plan approved by the General Director (CEO). During the development of advanced training programs, leaders of business areas decide whether to include various topics in the curriculum, which areas of study are strategically important, while excluding certain topics. Russian and foreign educational institutions are involved in the implementation of the programs.

The training of workers and experts, including the professions related to the maintenance and operation of hazardous production facilities, is carried out by PEO DPO "CPC-TATNEFT" (private educational institution of the additional vocational education institution TsPK-Tatneft (Tatneft Personnel Training Center) and its 8 branches located in the south-eastern part of the Republic of Tatarstan.

The PEO DPO "CPC-TATNEFT" has developed, coordinated and approved educational programs: 288 in blue-collar jobs, 208 advanced training programs for workers and 109 supplementary education programs for managers and professionals. 70 vocational training programs have been developed in accordance with professional standards approved by the Ministry of Labor and Social Protection of the Russian Federation.

In 2017, more than 40 thousand employees passed training and advanced training on the scale of the Company (including structural divisions and subsidiaries). The amount of about RUB 190 million was allocated for this purpose.

Housing Conditions Improvement

Provision of support to the employees in improving their living conditions is one of the important areas of the PJSC TATNEFT’s social policy. Eight multi-apartment residential buildings in the cities of Aznakayevo, Bavly and Nizhnekamsk were commissioned for the employees of the TATNEFT Group in 2018 in the framework of the social mortgage program. The total area of 876 apartments allocated to the Company's employees amounted to 52.1 thousand m2.

In order to support the employees involved in the mortgage program, the Company provides a non-recurrent interest-free loan to them for a period of 10 years for making a down payment on the housing. The loan amount ranges from 14.31 to 30% of the housing cost. There is a provision for the repayment of the loan granted to the employee from the Company's profits provided that he continues working at PJSC TATNEFT. The total size of the loan allocated to the employees of structural divisions in 2018 amounted to RUB 64.8 million.

In order to provide social support to young people, 30% of apartments entered under a program are provided to young families. At the request of young families, the apartments are equipped with furniture, the cost of which is included in the cost of housing.

Non-Governmental Pension Provision

In order to ensure social support for retiring employees, the Company has been implementing a non-governmental pension program since 1997. The program provides an opportunity for the employees to form the pension capital on a parity basis, providing them with guarantees of a decent standard of living in old age.
The rules, criteria and procedure for the non-governmental pension award, as well as three main pension schemes are established by the Regulation “On Non-Governmental Pension Provision”.

The number of PJSC TATNEFT employees involved in the corporate program of non-governmental pension support amounted to 9 thousand persons in 2018, for the TATNEFT Group - 22 thousand persons (including PJSC TATNEFT). More than 21 thousand pensioners receive additional non-governmental pension.

The main partner of PJSC TATNEFT in the implementation of the corporate pension program is JSC National Non-Governmental Pension Fund (National NPF).

Support for Non-Working Pensioners and War Veterans

The Company provides quarterly financial assistance to the state pension received for non-working pensioners who have worked in the PJSC TATNEFT system for 10 or more years and retired before the establishment of the National Non-Governmental Pension Fund.

There are veterans' councils operating in the divisions of PJSC TATNEFT, which, together with the administration and the Trade Union Committee, provide ongoing support to retirees. If necessary, the Company pays the retirees for medical treatment, operations, sanatorium and resort rehabilitation, assists in the repair of housing, the replacement of household appliances.

Support for Young Employees

PJSC TATNEFT binds its future with young professionals who are ready to contribute their strength, ability and aspirations into the Company. Therefore, the work with young people is an important element of the Company's personnel management policy.

The main objective of the youth policy is the advance and support of working youth, as well as unlocking their professional and creative potential in the interests of the Company.

The Company contributes to the positive social adaptation of working young people to changes in the society and the activities of PJSC TATNEFT.

Various social groups are the objects of the Company’s youth policy:

  • young workers and specialists under the age of 33 who came to the Company after graduating from educational institutions;
  • students enrolled to study subjects related with areas of the Company’s activity;
  • school students in the frame of a vocational guidance program;
  • sponsored orphans assigned to the enterprises of PJSC TATNEFT and the enterprises of the service section.

There is a successfully operating corporate youth organization in the Company, which is built on the coincidence principles of the economic and social interests of the Company and working youth.

Structure of the PJSC TATNEFT’s Corporate Youth Organization

Various bodies and officials are Involved in working with young people in the Company, such as the Youth Committee of PJSC TATNEFT, the Council of Young Professionals, aiming at the implementation of the Company's social programs; young employees taking initiatives; management of PJSC TATNEFT and its divisions.

Principles of the Company's Youth Policy:

  • social partnership of the administration and youth in solving economic, industrial, technical and social problems;
  • the optimal balance between the interests of the Company and the needs of young people with the view of PJSC TATNEFT dynamic development;
  • consolidation of organizational efforts and financial resources of the youth policy subjects;
  • proportionality of the rights and duties of the young workers;
  • corporate and public control over the results of the youth policy;
  • flexible combination of social security and social responsibility of the working youth towards the Company;
  • active professional, civil position of the young employee as the basis of corporate solidarity;
  • continuity of traditions.

The work with young people is aimed at the professional and labor development of young employees, guaranteeing them social support, creative self-realization of talented youth. The youth policy promotes the interaction of young people in the information space both within the Company and outside, growth of tolerance and civic consciousness, corporate patriotism and solidarity.