INTEGRATED
REPORT
2019

Capitals:

We provide fair and friendly working conditions for our employees.

GRI:
  • 103-1
  • 103-2
  • 103-3

Relations with internal Stakeholders and the external business environment are based on integrity, respect in everyday relationships and on dialogue, cooperation and involvement of each staff member in building a culture consistent with the Company’s core values.

The key policies and internal regulations governing employee matters include: ‘Core Values and Standards of Conduct of PKN ORLEN S.A.’ – providing for such issues as occupational health and safety, fair and friendly working conditions, communication and cooperation, as well as equal employment, promotion, development and in-service training opportunities; Collective Bargaining Agreements and Work Rules of ORLEN Group companies – prepared in accordance with the applicable regulations and the relevant standard adopted at PKN ORLEN; ORLEN Group’s Human Resources Management Policy; ORLEN Group’s Age Management Policy; Corporate Social Benefit Activity Rules; Employee Pension Plan. For information on those and other key documents, see the ‘Non-financial statement of the ORLEN Group and PKN ORLEN for 2019’.

Employment

In 2019, the ORLEN Group’s hiring policy was focused on recruiting top quality specialists for both day-to-day tasks and strategic projects. Expansion of the ORLEN Group’s power generation, petrochemicals, maintenance services, IT and trade activities led to a 1,055 year-on-year increase in total workforce, to 22,337 employees. In 2019, the average annualised workforce at the ORLEN Group was 21,826, an increase by 950 employees year on year.

GRI:
  • 102-8

Basic data on employment in the ORLEN Group

UoM 2019 2018
Employee relations KPIs including: [persons] 22,337 21,282
PKN ORLEN [persons] 5,447 5,250
Unipetrol Group [persons] 4,913 4,835
ORLEN Serwis Group [persons] 2,216 1,775
Grupa ORLEN Lietuva [persons] 1,429 1,631
ANWIL [persons] 1,364 1,323
ORLEN Ochrona Group [persons] 1,382 1,182
Other [persons] 5,586 5,286

Employment in the ORLEN Group by region

UoM 2019 2018
Poland [persons] 14,676 13,824
Czech Republic [persons] 5,311 5,210
Lithuania [persons] 2,119 2,018
Germany [persons] 185 178
Canada [persons] 46 52

 

Employment by gender

Workforce by type of job

Workforce by education*

* Adjustment of the 2018 data to account for a change in the assignment to educational attainment levels at PKN ORLEN

GRI:
  • 102-41

Employees covered by collective bargaining agreements

Employees covered by collective bargaining agreements, including: 2019 2018
Polish companies [%] 73 39
Foreign companies [%] 92 94

 

Trade unions – trade union membership [%] 39 40
Company Social Benefits Fund, including: [persons] 28,333 28,317
Employees [persons] 12,654 11,825
Former employees [persons] 6,750 6,692
Family members [persons] 8,929 9,800

 

Other employee data

Employee relations KPIs including:

Type of contract and gender

UoM 2019 2018
Employees by type of contract and gender:
Open-ended contract
Woman [number] 5,014 4,787
Man [number] 14,159 13,577
Fixed-term contract
Woman [number] 744 681
Man [number] 1,833 1,671
Probationary period contract
Woman [number] 114 127
Man [number] 326 317
Temporary substitution
Woman [number] 106 89
Man [number] 41 33

Type of contract and region

UoM 2019 2018
Employees by type of contract and region:
Open-ended contract
Czech Republic [number] 4,576 4,484
Canada [number] 43 49
Germany [number] 169 160
Lithuania [number] 2,073 1,977
Poland [number] 12,312 11,694
Fixed-term contract
Czech Republic [number] 593 584
Canada [number] 3 3
Germany [number] 4 5
Lithuania [number] 20 18
Poland [number] 1,957 1,742
Probationary period contract
Czech Republic [number] 141 140
Canada [number] 0 0
Germany [number] 12 11
Lithuania [number] 19 16
Poland [number] 268 277
Temporary substitution
Czech Republic [number] 1 2
Canada [number] 0 0
Germany [number] 0 2
Lithuania [number] 7 7
Poland [number] 139 111

Employment type and gender

UoM 2019 2018
Employees by employment type and gender:
Full-time
Women [number] 5,875 5,598
Man [number] 16,286 15,515
Part-time
Woman [number] 103 86
Man [number] 73 83
GRI:
  • 401-1
UoM 2019 2018
New hires by age, gender and region: 3,158 2,977
Age
< 30 [number] 1,046 1,080
30 – 50 [number] 1,642 1,562
> 50 [number] 470 335
Gender
Woman [number] 936 939
Man [number] 2,222 2,038
Region
Czech Republic [number] 732 704
Canada [number] 4 8
Germany [number] 33 23
Lithuania [number] 354 315
Poland [number] 2,035 1,927
UoM 2019 2018
Hires rate* [%] 14.1 14
Employee turnover [%]** [%] 8.9 9.9
Age
< 30 [%] 15.2 15.7
30 – 50 [%] 7 8.5
> 50 [%] 10 10
Gender
Woman [%] 10.2 11.3
Man [%] 8.4 9.4
Region [%]
Czech Republic [%] 11.9 12
Canada [%]] 21.7 5.8
Germany [%] 17.3 11.2
Litwa [%] 11.8 13.7
Poland [%] 7.2 8.5

*Hires rate – the number of new hires as a percentage of total employment.
**Employee turnover – the number of employees leaving a group over a given year / total number of employees in the group.

The proportion of temporary work contracts at the ORLEN Group is negligible and they are used on an as needed basis.

New hires and turnover rates for ORLEN Group employees are similar to those recorded in 2018.

Employee satisfaction and engagement KPIs at PKN ORLEN and ORLEN Group

Employee engagement and satisfaction surveys are conducted every two years. In the 2019 edition, the employee engagement rate for PKN ORLEN was 64%, on a par with the 2017 level. The overall employee satisfaction rate was 77%, having gone up 4 percentage points.

Employee engagement and satisfaction survey U0M 2019 2017
Number of ORLEN Group companies surveyed [number] 22 16
Number of respondents – PKN ORLEN [number] 4,192 4,005
Employee engagement rate [%] 64 65
Job satisfaction rate [%] 77 73
Average rates in Poland in 20161 and 20182
Employee engagement rate [%] 50 51
Job satisfaction rate [%] 64 66

1) Based on Aon Hewitt.
2) Based on Kincentric

Remuneration policy

The rules of remuneration in place at PKN ORLEN are laid down in the Collective Bargaining Agreement. The main components of remuneration are base pay (determined according to the Pay Grade Table and Base Pay Table) and a bonus. Employees are covered by monthly, quarterly, quarterly/annual or annual bonus schemes, depending on positions held. Employees are also entitled to receive an extra annual bonus for achievement of solidarity targets, and a number of allowances, including shift-work allowance, chemical emergency service allowance, or expat allowance. For particularly outstanding achievements, an employee may be awarded a prize, financed from the Employer Prize Fund.

On April 1st 2019, amendments to the PKN ORLEN Collective Bargaining Agreement came into effect, relating in particular to the Pay Grade Table and Base Pay Table. In 2019, Collective Bargaining Agreements/Pay Rules were also agreed upon or amended at the following ORLEN Group companies: ORLEN Laboratorium, ORLEN Serwis, ORLEN Administracja, ORLEN Projekt, ORLEN Południe, ORLEN Centrum Usług Korporacyjnych, Basell Orlen Polyolefins, Energomedia, Sigma BIS and Ship-Service.

In 2019, PKN ORLEN entered into a pay agreement for 2019, which provided for obligatory base pay rises of PLN 250 for employees graded 1 to 6 and one-off bonuses of PLN 2,100 for employees graded 7 and 8. In addition, Christmas bonuses totalling PLN 3,500 and an additional bonus on account of PKN ORLEN’s anniversary ranging from PLN 1,000 to PLN 2,000 were agreed upon, depending on the length of service. Pay agreements were signed at all ORLEN Group companies. They were adapted to each company’s financial capabilities and additionally depended on its position on the pay market.

In 2019, the average gross monthly remuneration (including base pay, bonuses, awards, allowances and overtime) at the ORLEN Group was PLN 8,316.

HR programs

Development of the Human Resources Functions and standardisation of processes across the ORLEN Group

HR and payroll solutions at the ORLEN Group evolve continually so as to effectively support its business processes. Based on the HR policy for the ORLEN Group, HR and payroll processes at the Transaction Centre are optimised on an ongoing basis. IT systems are developed to streamline staff administration activities and improve the efficiency of HR processes across the Group. A project team comprising representatives of various functions and companies was set up in 2019, tasked with standardising HR processes across the ORLEN Group. In 2019, most Group companies implemented a new system for bonus processes. Moreover, the application supporting the onboarding process was expanded and the tool can now be used at other ORLEN Group companies. The MyBenefit platform introduced by PKN ORLEN, providing employees with better access to attractive employee benefits, was deployed at some Group companies and will be rolled out further. Additionally, in 2019 PKN ORLEN implemented KCP – a work time planning and reporting tool which will be implemented at all ORLEN Group companies in order to standardise the work time management process throughout the Group. The continuous development of HR functions combined with process digitalisation improve the HR processes, guaranteeing their high quality and transparency.

Human resources management policy

People are invariably one of the key pillars of the ORLEN Group’s strategy. Activities carried out in 2019 focused on consistent implementation of the HR policy to help build an experienced team of professionals and develop leadership skills among the management staff. In addition, an employee satisfaction and commitment survey was undertaken, a Career Development Session was conducted, and the Employer’s Brand Ambassador programme was launched. Priority initiatives for the Group in 2019 were to promote its image as an attractive employer, on board new employees, support managers in the recruitment processes, work with trade unions in implementing the Collective Bargaining Agreements and encourage employees to partner with ORLEN in the pursuit of its business objectives (business awareness). Moreover, non-financial incentives for employees were being developed by expanding the benefits scheme (launch of the MyBenefit platform) and employee health initiatives were run.

Diversity policy

It is our priority to build a value-driven organisational culture which takes into account diversity aspects. For information on the implementation of the diversity policy, see ‘Corporate governance’.

GRI:
  • 404-2

Development and training

Development activities in 2019 focused on shaping attitudes and skills in diversity management, management ethics, innovation, cooperation, reviewing lessons learnt, project work, work planning and organisation, and negotiation skills. These and other dedicated training programmes supported the delivery of business strategies. The so-called ‘Career Development Session’ was introduced to help plan individual career paths, based on the assessment of an employee’s development needs and business requirements in a given business area. The session involves a friendly talk between an employee and their line manager, and hence its important component is the bottom-up feedback. Apart from being a tool used to identify development needs, the session supports the development of a culture of openness and dialogue. Its implementation was preceded by dedicated workshops for the management staff and employees.

Programmes were also run to support skills identified as important for the development of business functions in the context of future challenges, including: a programme to develop advanced analytical skills (with respect to ‘big data’) and a comprehensive programme to develop project management skills. Under these programmes, employees were developing unique skills related to Data Analytics trends and learned how to employ them for business and project management, spanning a range of topics from budget management, project team management and project lifecycle analysis, to project risk and quality management.

A comprehensive management staff development programme was continued, its themes centred in particular on fostering engaging leadership, value-based management, performance improvement and building multifaceted collaboration and innovation on a team. Moreover, the management staff were working to develop their mentoring and feedback giving/receiving skills. Further programmes were also delivered to train the management staff in preventing workplace bullying, in labour laws, and in management and business ethics. Those projects demonstrate the Company’s particular concern for management based on ethics and respect for corporate values.

In 2019, we implemented new technological functionalities of the e-learning platform, including mandatory training on such topics as AML regulations, disclosure obligations of listed companies, counteracting the adverse effects of shift work, everyday innovation and diversity. The platform content can be created and posted by individual business areas, in different formats, which makes it a handy tool for internal knowledge transfer.

The Group employees benefited from a wide range of diversified development activities. They attended tailored training events (both open and closed), designed specifically to address the needs of a given area or employee, postgraduate courses, or MBA programmes. In addition, they were offered opportunities to broaden and share their knowledge of the market through participation in trade conferences and events.

As in previous years, we continued initiatives fostering a culture of work safety, including educational projects, mandatory training and post-graduate courses dedicated specifically to PKN ORLEN, such as those focused on skills necessary to operate power generation units. The ‘Safe Driving Academy’ was also continued with a view to helping its participants master safe driving techniques and learn how to react in difficult situations on the road.

Employees also improved their foreign languages skills as part of the PKN ORLEN Language Academy and summer English courses. Training and development activities were carried out not only on a classroom basis, but also as e-learning courses.

GRI:
  • 404-1
Average training hours per employee, including: U0M 2019 2018
Women [number] 23.4 18.3
Man [number] 25.2 20.7
Managers [number] 38.5 24.5
Non-managers [number] 23.7 19.6

Age Management Policy

Age management solutions were implemented across the ORLEN Group in 2019, to address the negative effects of demographic shifts on the labour market. Activities in this area focus, among other things, on raising the management staff’s awareness of age management, promoting intergenerational diversity and communication, facilitating knowledge and skill transfers, Employer Branding efforts in relations with the outside world, especially with the local labour market, universities and schools, building successor competencies within the company, implementing dedicated staff development and mentoring programmes, and undertaking preventive healthcare measures.

GRI:
  • 401-2

Social dialogue and employee benefits

The ORLEN Group believes in social dialogue based on independence of the parties, legal compliance, as well as trust, mutual willingness to compromise, and observance of the rules. The rules of social dialogue are founded on internal regulations and generally applicable laws, which facilitates development of constructive and lasting solutions in partnership with employee representatives.

The ORLEN Group offers employee benefits, which include co-financing of employee holidays or sanatorium treatment, childcare, holidays for children and teenagers, and school starter kits. Christmas gifts for employees’ children have already become a tradition across the Group. The employer provides financial support for families with low incomes. Our employees may also apply for partial financing of sports and recreational activities, cultural and educational activities, or physical therapy treatments, as well as non-repayable allowances and repayable housing loans.

PKN ORLEN offers a uniform employee benefits package to employees of all ORLEN Group companies participating in the joint social benefits programme. Group companies covered by the programme as at December 31st 2019 included: Basell ORLEN Polyolefins, CENTRUM Edukacji, ORLEN Administracja, ORLEN Asfalt, ORLEN Centrum Serwisowe, ORLEN Eko, ORLEN KolTrans, ORLEN Centrum Usług Korporacyjnych, ORLEN Laboratorium, ORLEN Ochrona, ORLEN Paliwa, ORLEN Projekt, ORLEN Upstream, ORLEN Serwis, Płocki Park Przemysłowo-Technologiczny (the Płock Industry and Technology Park), and Fundacja ORLEN (ORLEN Foundation). The additional benefits policy applies equally to all employees, regardless of the type of their employment contract (for a fixed or indefinite period), their working time (full-time or part-time) or location. All personnel employed under employment contracts, whether full-time or part-time, are entitled to benefits from the PKN ORLEN Social Benefits Funds.

PKN ORLEN’s employees participate in the Employee Pension Plan (EPP) (also known as the third pillar of the pension system). In addition, PKN ORLEN partly covers the cost of insurance premiums under the EPP for its employees working under employment contracts who have been with the Company for at least three months, regardless of the type of contract. Benefits from the Social Benefits Fund guaranteed to former employees of PKN ORLEN and other Group companies covered by the joint social benefits programme (old age pensioners, disability pensioners, persons who opted for voluntary redundancy) include: co-financing of employee holidays or sanatorium treatment, holidays for children and teenagers, school starter kits, Christmas gifts for children, non-repayable financial support, repayable housing loans and, additionally: cash allowance for low-income employees, birthday cash benefits for former employees aged 70+ (paid every five years) and 95+ (paid every year), meetings with former employees in Senior Citizens Clubs across Poland. All ORLEN Group employees receive the same benefits regardless of their location or type of employment contract. Certain benefits, e.g. insurance, may differ depending on the employer. At PKN ORLEN, group insurance is provided to all employees who have declared their intention to participate. Employees have several options to choose from. Group insurance is also available at other Group companies, but decisions in this respect are made by each company on a discretionary basis.

In addition to the programmes described above, PKN ORLEN also supports the continuity of employment of persons whose contracts are terminated as a result of restructuring processes by offering them training packages. As part of a package, PKN ORLEN provides financing for training which a given person has indicated as useful in their further career.

As a company implementing modern-day solutions aimed at keeping the balance between work and family life, PKN ORLEN carries out the ‘Family-Friendly Employer programme, offering such benefits as additional two days off to care for a child under three years of age, two days off to care for a disabled child under 24 years of age, a nursery school for children of ORLEN Group employees, one additional hour for breastfeeding, medical care during pregnancy, baby feeding rooms, gifts for newborn babies, and providing employees on parental/childcare leaves with up-to-date information on developments across the Group. Many of the components of this programme have also been implemented by other ORLEN Group companies as part of best practice sharing.

PKN ORLEN also provides extensive medical care going beyond the scope of occupational medicine. Medical plans and preventive healthcare programmes are run in cooperation with Centrum Medyczne Medica Sp. z o.o. of Płock and the Military Institute of Medicine of Warsaw as part of a project to investigate health impacts of the work environment. In 2019, a uniform standard for medical plans was implemented across the ORLEN Group.

We also carried out preventive check-ups and delivered health promotion campaigns in the workplace, such as: medical examinations of employees’ children aged from nine months to six years under the programme called ‘Say NO to Cancer in Children’; densitometric tests, HCV tests and hearing tests, health zones and preventive check-ups in Płock, Włocławek and Ostrów Wielkopolski under the nationwide ‘Health First’ programme; open meetings for employees devoted to disability issues; Occupational Safety and Healthcare Day at the ORLEN Group.

In addition, PKN ORLEN cares about the mental health of its employees, seeing this activity as an inherent part of its corporate culture. The tasks of our Occupational Psychology Centre include provision of support and psychological assistance to employees and their families who are going through personal or professional issues. Commitment to well-being in the workplace is very important to the employees, building a sense of togetherness and mutual accountability.

Education and talent acquisition policy

PKN ORLEN works consistently to satisfy its talent acquisition and retention needs, focusing of specific target groups relevant to the Company’s business areas – current and prospective employees, as well as students and graduates of vocational schools and universities. Being aware of the need for synergies between business and academia, the ORLEN Group collaborates with the academic community.

PKN ORLEN is also committed to offering employment opportunities to the disabled. In 2019, together with several other Group companies, it joined the Work – Integration programme of the State Fund for the Rehabilitation of the Disabled (PFRON), aimed at recruiting people with disabilities from the open labour market.

Realising the need to build an HR pipeline in professions that are crucial to the industry, given especially the specific business profiles of the Group companies, PKN ORLEN engages in active partnerships with vocational schools – as a result students obtain expert support during hands-on activities and have the opportunity to take part in study visits and trainee placements offered by the Group companies. PKN ORLEN cares for the professional development of young people − students, university graduates and school leavers, by providing them with an opportunity to acquire their first professional experience on internship and work placement programmes, which are attended by dozens of university graduates and school leavers each year. In 2019, there were over 100 interns under the ‘Headed for ORLEN‘ and the ‘#Energy for the Future’ programmes run in association with the Polish Ministry of Energy, and in a programme carried out jointly with the Faculty of Power and Aeronautical Engineering of the Warsaw University of Technology. PKN ORLEN also offers development opportunities to Polish students studying abroad. This year, we were a strategic partner of the ‘Go4Poland- Choose Poland!’ programme, aimed at encouraging young talented Poles studying abroad to plan their career paths at Polish or multinational companies, public institutions operating in Poland, or foreign branches of Polish companies. As part of the programme, we provided holiday internship, workshop and mentoring opportunities. 135 individuals completed student internships, most of them in the production segment, but some also in other business areas.

PKN ORLEN also participated in various job fair events (the Activity and Entrepreneurship Fair in Płock, the JOBICON in Warsaw, the Engineering Job Fair at the Warsaw University of Technology, the London Job Fair) at technical universities, and provided students and graduates with opportunities to gain professional experience. Additionally, it was involved in a number of education and awareness projects, including the ORLEN Knowledge Day. PKN ORLEN employees delivered a Communication Workshop for students of the Pawel Wlodkowic University College in Płock, and participated in Employers Panel held with the objective of assessing the needs of employers and institutions cooperating with the Warsaw University of Technology in the field of chemical engineering.

For another year running, PKN ORLEN, ORLEN Laboratorium and ANWIL actively participated in Industry Seminars – a series of meetings at the Faculty of Chemistry of the Warsaw University of Technology. The participants are the Faculty students and leading chemical industry companies. The purpose of the meetings is to equip students with practical knowledge based on actual business cases and to inspire them to choose specific development paths with a view to getting a job with a given company. In addition, PKN ORLEN attended the Science-Industry Seminar at the Faculty of Materials Science and Engineering of the Warsaw University of Technology, and students’ meetings with employers at the Business Networking Day held at the Warsaw University of Technology, Faculty of Production Engineering and Faculty of Chemistry. Students of the Płock branch of the Warsaw University of Technology regularly visited the Płock Production Plant and were invited to the Refining Industry Open Days held as part of the European Industry Week.

GRI:
  • 403-4

Health and safety topics covered in formal agreements with trade unions

We take care to maintain a transparent social dialogue within the ORLEN Group.

Health and safety issues are mutually agreed on and covered in formal agreements with unions, effective at those ORLEN Group companies which have their respective registered offices in Poland in:

  • The PKN ORLEN’s collective bargaining agreement, drafted and registered by the Regional Inspector of the National Labour Inspectorate in Warsaw, in accordance with the provisions of Part XI of the Polish Labour Code and the Minister of Labour and Social Policy’s Regulation on the procedure to be followed in the case of registration of collective bargaining agreements, keeping the register of collective bargaining agreements and registration files, as well as forms of registration clauses and registration cards, and/or
  • Work Rules established in accordance with the provisions of Section IV of the Polish Labour Law.

Those documents provide for ensuring working conditions hygiene standards, including personal protection equipment against agents that are hazardous and harmful to human health, as well as working clothes and footwear. Occupational health and safety issues are covered by collective bargaining agreements also at the Unipetrol Group in the Czech Republic and the ORLEN Lietuva Group in Lithuania, the ORLEN Group’s foreign subsidiaries. Employees of ORLEN Deutschland, where there are no active trade unions, are not parties to any formal or collective agreements. The same holds true for ORLEN Upstream Canada, whose entire workforce is subject to occupational health and safety regulations applicable in Alberta.

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