Employment relations

LUKOIL is a large employer in Russia and abroad. We endeavor to apply uniform principles and approaches to working with our employees in all countries and regions of operation, taking into account local cultural specifics and legislative features. The principles and standards set forth in our Human Capital Management Policy and other local regulations are mandatory for all LUKOIL Group entities.

Human Capital Management Policy dictates that we conduct our activities under the principle of equal rights and opportunities and consider any form of violation of human dignity and discrimination on any grounds unacceptable.

The Company does not tolerate discrimination based on gender, race, age, or other grounds. The hiring process applies an equal opportunity approach to local applicants abroad, to men and women, to applicants with limited health abilitiesFor applicants from special groups, jobs are provided based on statutory regulations and job openings that meet labor requirements. For example, the quota for hiring people with limited health abilities in the Company is 2–3% of the average number of full-time employees and is set separately for each region of LUKOIL’s operations.", to members of the indigenous minorities of the North, and to other social groups.

Recruitment in foreign countries

Our basic approach in all countries where we operate is to comply with legal requirements and employ the best professionals. In the Republic of Iraq, for example, foreign companies are required to hire at least 50 percent of the average headcount from local candidates. In the Republic of Uzbekistan, this number is at least 80 percent. (This requirement applies to both full-time employees and contractors.) We offer opportunities for locals to fill vacant positions and provide training if needed. In Bulgaria, Italy, Romania, and Belarus the share of local hires was 99 percent, in Uzbekistan — 93 percent, and 60 percent in IraqGiven our broad geographic presence, some indicators such as the share of local hires and the average salary are disclosed for each significant region. See Appendix 6 for the definition of a significant region. In 2020, six foreign countries mentioned in this paragraph of the Report are considered significant regions. Local employees are all employees of Group’s organisations, excluding seconded employees (defined in Appendix 6).".

Local employment in LUKOIL MID-EAST LIMITED (Basra, Republic of Iraq)

In Iraq, candidates are hired from the local employment center database and external sources (media, recruitment agencies, and so on). Applicants from communities located near the deposit are considered first. Created specifically for the project, the Joint Local Recruitment Committee, which includes representatives of LUKOIL and national partner companies, conducts the initial screening on a competitive basis (testing and interviews). Candidates who have successfully passed the screening sign an employment contract, which must include salary, schedule for additional payments and cash incentives, working hours, and the procedure for determining terms of each shift.

We provide mandatory and continuous safety and HSE training for all local personnel (new hires and existing employees). On-the-job training for employees is organized to improve qualifications and get promoted. In addition, annual professional training is offered to specialists at training centers in Iraq, the UAE, Turkey, and Egypt, along with internships at the Group’s Russian entities.

LUKOIL provides employees with career development opportunities. In 2020, more than seventy employees successfully completed a workplace internship program (Shadowing) and were appointed to supervisory (junior management) and engineering positions; three people interned to fill superintendent level positions (mid-level operations manager).

Employees with appropriate qualifications are hired for management positions in our foreign entities. If personnel with the necessary qualifications and capabilities are not available on local markets, Russian employees are appointed to managerial positions in order to promote the same corporate culture throughout LUKOIL Group and to expand their capabilities by gaining professional experience in international projects. For this purpose, the Company has a pool of employees who can be rotated. Thus, the risk of a loss to efficiency is mitigated and the need for highly qualified and managerial personnel is promptly satisfied, regardless of the situation in local labor markets. At the same time, the opportunity to work in different business and cultural environments is a motivation for employees who value diversity.

Information about local managers in foreign LUKOIL Group entities in significant regions of operation
2018 2019 2020
Senior managers, people 89 89 88
including locals 28 29 31
Share of local senior managers, % 31 33 35
Notes.

  1. The indicators of the “Our employees” section are calculated based on the headcount of employees in accordance with the GRI approaches, unless otherwise stated. At the same time, similar indicators may be presented in the Annual Report based on the average headcount.
  2. Senior managers include the CEO (Managing Director / General Director) and their deputies for functional areas.
  3. Local senior managers mean employees who are permanently registered in or are citizens of foreign countries.

Gender equality

Despite the specifics of the oil and gas industry and the traditional prevalence of male employees, LUKOIL has maintained a balanced gender structure for many years.

We provide equal career development opportunities to all our employees. Gender monitoring of personnel job categories is carried out regularly. In doing so, we respect the desire of employees to achieve a balance between family and work. Parental leave, for example, is available to both women and men. We also encourage employee initiatives to develop groups based on specific interest. For example, a women’s club has been functioning at the refinery in Nizhny Novgorod since 2013.

Personnel gender structure of LUKOIL Group in 2020
Note.

The “Managers” category includes: CEO of a LUKOIL Group entity, Deputy Heads, Chief Engineer, Chief Accountant, Head of a branch, TPU, or another standalone business unit, other managers.