ORLEN ORLEN Group 2017
Integrated Report

Responsible Employer

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The ORLEN Group offers its employees fair working conditions, an attractive employee benefits package, and development opportunities. The ‘Top Employer Polska’ title we received once again is testament to the world-class quality of our HR practices and standards. Our top talents and modern organisational culture will help us continue on a growth path.

Employment

In 2017, the ORLEN Group's hiring policy was focused on recruiting top quality specialists to perform day-to-day operations as well as to execute strategic projects. Expansion of the ORLEN Group’s power generation, logistics, procurement, IT, and retail business led to an increase in total workforce by 532 employees y/y, to 20,262. The average annualized headcount at the ORLEN Group was 20,004, an increase of 255 persons y/y.

Basic data concerning of the ORLEN Group employment

Employment at the end of 2017 and 2016 in the ORLEN Group entities

2017   2016
  4,980 PKN ORLEN 4,786  
  4,720 UNIPETROL GROUP 4,576  
  1,648 ORLEN SERWIS 1,605  
  1,612 ORLEN LIETUVA GROUP 1,582  
  1,268 ANWIL 1,244  
  1,098 ORLEN OCHRONA GROUP 1,055  
  4,936 OTHER* 4,882  
  20,262 TOTAL 19,730  

*2017: including ORLEN Południe - 716, ORLEN Laboratorium - 614, ORLEN Centrum Usług Korporacyjnych - 455
*2016: including ORLEN Południe - 827, ORLEN Laboratorium - 604, ORLEN Centrum Usług Korporacyjnych - 446 

 
Gender
2017   2016
  74% MEN 74%  
  26% WOMEN 26%  
 
Management boards if the ORLEN Group entities
2017   2016
  89% MEN 89%  
  11% WOMEN 11%  
 
Supervisory boards of the ORLEN Group entities
2017   2016
  79% MEN 84%  
  21% WOMEN 16%  
 
Type of work
2017   2016
  54% BLUE COLLARS 56%  
  46% WHITE COLLARS 44%  
 
Education
2017   2016
  22% VOCATIONAL 23%  
  35% SECONDARY 35%  
  2% PRIMARY 3%  
  41% UNIVERSITY 39%  
 

Key workforce data for PKN ORLEN

Employment structure in professional groups and age structure in PKN ORLEN

Gender
2017   2016
  79% MEN 80%  
  21% WOMEN 20%  
 
Type of work
2017   2016
  43% BLUE COLLARS 44%  
  57% WHITE COLLARS 56%  
 
Education
2017   2016
  16% VOCATIONAL 16%  
  18% SECONDARY 19%  
  66% UNIVERSITY 65%  
 
Age structure
2017   2016
  11% LESS THAN 30 YEARS OLD 11%  
  31% BETWEEN 31 AND 40 YEARS OLD 32%  
  31% BETWEEN 41 AND 50 YEARS OLD 30%  
  22% BETWEEN 51 AND 60 YEARS OLD 23%  
  5% MORE THAN 60 YEARS OLD 6%  
 

Other workforce data for PKN ORLEN

Total number of persons employed under employment contracts: 4,980*.

Type of employment relationship
Women   Men
  869 Indefinite term 3573  
  124 Fixed term 336  
  11 Probationary period 34  
  19 Temporary substitution 14  
 
Region
Women   Men
  790 Płock 3267  
  233 Other 690  
  1023 Total 3957  

*Number of employees as at December 31st 2017. The figure includes persons with 'suspended' status, i.e. those on parental, unpaid, rehabilitation or maternity leaves.

 

Workforce at PKN ORLEN as at December 31st 2017 - 376 employees.

Age group
less than 31 155  
31-40 132  
41-50 65  
51-60 18  
more than 60 6  
Total 376  
 
Sex
Women   Men
  98 Sex 278  
 
Region
Płock   Other
  230 Region 146  

 

Return to work and turnover rates after parental leave, by gender (PKN ORLEN)
The total number of employees entitled to parental leave is not known – the employees are not required to notify such entitlement  
Total number of employees that took parental leave ended in 2017: 52
– including women 52
Total number of employees who returned to work after parental leave in 2017: 30
– including women 30
Total number of employees who returned to work after parental leave and who were still employed twelve months after their return to work – the period under analysis was 2017 (twelve months of service until December 31st 2017) 35
– including women 35
Percentage of employees who returned to work after parental leave: 100%
– turnover rate of employees who took parental leave 100%

Remuneration policy

The rules of remuneration are determined by the Corporate Collective Labour Agreement. The basic element of remuneration is the basic salary – specified on the basis of the Remuneration Scale and the Table of Basic Salaries as well as the bonuses. Dependent on the occupied position, the employees are subject to monthly, quarterly, quarterly and annual or annual system of bonuses. Furthermore, the employees are entitled to an additional annual bonus dependent on the realisation of so called the solidarity aim as well as to remuneration allowances due for, among others: shift work, chemical rescue or expatriate allowance. For particular achievements, the employer may award a prize from the Employer’s Prize Fund.

In 2017, the PKN ORLEN Corporate Collective Labour Agreement was updated in the range of the Remuneration Scale and the Table of Basic Salaries as well as employment and promotion rules. In 2017 there were no collective labour disputes, terminating, suspension or concluding the collective agreement.

In 2017, the average gross monthly remuneration (including base salary, bonuses, prizes, packages and overtime payment in the ORLEN Group was equal to PLN 7,298.
In 2017, there were no wage agreement signed with the union trades in PKN ORLEN. Therefore, the employer issued the regulation, which assumed discretionary pension increases in the amount of PLN 200 per one employee and one-off prizes in the total amount of PLN 4,600.
In 2017, no collective redundancies were performed.

Ratio of men’s base pay to women’s base pay at PKN ORLEN in 2017, by position
Clerk 98%
Production process operator -
Account manager 103%
Specialist 102%
Sales representative 107%
Other 104%
Production process foreperson 95%
Production support engineer 115%
Sales manager 99%
Manager 104%
Director 104%

 

Men's and women's base pay by position as percentage of the average base pay at PKN ORLEN in 2017
  Women Men
Total 99.0% 100.2%
Clerk 55% 54%
Production process operator - 66%
Account manager 68% 69%
Specialist 91% 91%
Sales representative 95% 100%
Other 87% 89%
Production process foreperson 120% 112%
Production support engineer 83% 94%
Sales manager 112% 110%
Manager 154% 158%
Director 359% 369%

 

Ratio of entry level base pay at PKN ORLEN to local minimum pay at main locations
Men 115%
Women 144%

Collective bargaining agreements

All PKN ORLEN employees are covered by collective bargaining agreements.
Collective bargaining agreements are also in place at other companies of the ORLEN Group. At the Polish Group companies, they cover 36% of the employees. ORLEN Lietuva and Unipetrol have concluded collective agreements with their trade unions, which are similar to collective bargaining agreements under the Polish law. Accordingly, the percentage of the Group employees covered by collective bargaining agreements or similar arrangements (at foreign companies) is approx. 66%.

HR programmes

Human resources management policy
People are invariably one of the key pillars of the ORLEN Group's strategy. Important elements of the Group’s growth strategy included employee opinion surveys, evaluation of employee needs, as well as initiatives to improve employee satisfaction and engagement. Satisfaction and engagement were surveyed at 17 ORLEN Group companies. The most important of the initiatives included launch of new communication channels (newsletters, information boards, inspirations for managers), communicating employee achievements (recognition boards), development of project management skills (project management trainings, message boards for sharing ideas, project round-up meetings).
In 2017, priority was given to continuous development of employees' knowledge, managers’ involvement in team development, and the ORLEN Group’s image-building activities.

Recruitment policy
Steps were taken to hire specialists and experts and to engage with academic communities to demonstrate the wide range of opportunities offered to employees of the ORLEN Group.
PKN ORLEN participated in job fairs organised by technical universities and offered internship and traineeship placements for students and graduates. The ORLEN Group companies worked with secondary technical schools and technical universities to align their curricula to the workforce and skills needs of the industry, and to help potential future employees develop necessary skillsets while still at school.
The Group also continued the Adaptation Programme for newly hired employees to become familiar with the ORLEN Group’s activities, organisational culture, values and principles of conduct.

Development and training

The criteria that define directions of our training policy are specified by reference to the business strategy. In 2017, our employee advancement activities focused on specialist skills and promotion of the desired organisational culture, in particular with respect to the building of an engaging workplace and innovation.

Important elements of the training policy in 2017 included building leadership through development of management skills in line with an approach that managers have the greatest influence on stimulating employee engagement at a company. The tools used to this end included a management skills development programme designed to improve managerial skills, develop employee competencies, motivate the workforce and increase engagement.

In 2017, the ORLEN Group applied best market practices and various tools to support the development of employees' professional skills. Employees attended specialist training programmes (both open and closed), postgraduate courses, MBA programmes, and coaching and mentoring courses. In addition, they were offered opportunities to broaden and share their knowledge of the market and the industry with others through participation in trade conferences and events. A very strong focus was placed on fostering a work safety culture through various educational projects and obligatory training schemes. Training and development activities were carried out not only on a classroom basis, but also as e-learning courses. Employees also continued to learn foreign languages as part of the PKN ORLEN Language Academy and summer English courses.

With a view to promoting safety culture, in 2017 the ORLEN Safe Driving Academy was continued. It aims to help the participants master safe driving techniques and learn how to react in difficult situations on the road.

In 2017, over 4,000 employees were trained at PKN ORLEN, and the average number of training hours per employee reached 29. Overall, more than 9,500 training units were completed in 2017.

Training at selected ORLEN Group companies

COMPANY Total number of employees used in calculations Average training hours per employee Average training hours per female employee Average training hours per male employee Average training hours per manager Average training hours per non-manager
PKN ORLEN 4,980 28.77 31.98 27.94 39.65 27.35
ORLEN Serwis (excl. foreign companies) 1,520 19.83 19.83 19.83 59.25 18.24
ORLEN Lietuva Group (data for ORLEN Lietuva only, without other companies of its Group) 1,382 63.89 61.94 64.63 58.78 64.67
ANWIL Group 1,268 31.74 28.31 32.38 31.47 31.79
ORLEN Ochrona Group 1,098 40 26 41 101 35
ORLEN Południe (data for ORLEN Południe only, without other companies of its Group) 626 19 17 20 31 19
ORLEN Laboratorium 614 17.24 16.10 20.69 39.82 15.81
Centrum Usług Korporacyjnych 455 30.04 30.06 29.90 61.10 21.51
ORLEN KolTrans 389 20.06 18.38 20.35 80.48 18.42
ORLEN Paliwa 357 9.39 7.21 10.99 14.62 8.63
ORLEN Oil 315 34.98 34.66 34.82 85.67 26.56
ORLEN Centrum Serwisowe 313 8.72 8 8.85 26 8.49
ORLEN Upstream 96 31.91 24.8 35.86 25.88 33.82

The table does not include the Unipetrol Group data because of structural changes that took place in 2017; in the case of the ORLEN Lietuva Group, the figures are for the parent only.

Student internships and work placement programmes

PKN ORLEN cares for the professional development of not only its own employees, but also young people − students, university graduates and school leavers, by providing them with an opportunity to gain their first professional experience as interns and on work placement programmes.

In 2017, among the initiatives undertaken by PKN ORLEN were internship programmes ‘Headed for ORLEN’ and ‘#Energy for the Future’, and group internships organised as part of PKN ORLEN’s partnership with secondary schools and universities. More than 200 people participated in the internships.

Additionally, educational and informational projects were carried out, including the ‘ORLEN Knowledge Day’ (a series of meetings at universities held to present PKN ORLEN’s business and innovative projects), PKN ORLEN’s participation in career fairs (Job Fair in Płock, Absolvent Talent Days in Warsaw and in Łódź), and in the nationwide Case Week project, during which representatives of our power generation, IT and environmental protection areas prepared and held meetings and case study sessions with the students of Warsaw universities.

Development of the HR functions

In 2017, the purpose of cooperation between HR teams within the ORLEN Group was to develop a Group-wide HR Policy – a joint document outlining principles of cooperation on ongoing projects. As part of the efforts, the HR and payroll solutions as well as IT systems were adjusted to effectively support business processes. Further, all HR and payroll processes for the entire ORLEN Group were optimised at the Transaction Center (CT).

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 principles of social dialogue are founded on generally applicable laws and internal regulations, including the collective bargaining agreement and separate detailed agreements, 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 the co-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 April 1st 2016 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 - Dar Serca (ORLEN GIFT FROM THE HEART 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 also participate in the Employee Pension Plan (known as the third pillar of the pension system). In addition, PKN ORLEN covers part of the cost of insurance premiums 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 guaranteed to former employees of PKN ORLEN and the Group companies (old age pensioners, disability pensioners, persons who opted for voluntary redundancy) covered by joint social benefits programme:

  • Co-financing of employee holidays or sanatorium treatment.
  • Co-financing of holidays for children and teenagers.
  • Co-financing of school starter kits.
  • Christmas gifts for children.
  • Non-repayable allowances.
  • Housing loans.

In addition:

  • Cash allowances for low-income employees.
  • Birthday cash benefits for employees aged 70+ (paid every five years) and 90+ (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 offers assistance to employees terminated in connection with the restructuring processes. To support continuity of their employment it offers training packages as part of which the Company finances training courses which may prove useful in the employee’s future career, as specified by the employee.

Health and safety issues covered in formal agreements with trade unions

OHS issues are provided for in the Group companies’ applicable internal regulations, namely:

  • The Company’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.

These documents provide for the organisation of working conditions that meet OHS standards. We take care to maintain a transparent social dialogue within the ORLEN Group. The notification periods for individual processes are as defined in generally applicable laws, but in some cases they are even more favourable.

Medical care

Medical services and preventive healthcare programmes, including those going beyond the scope of occupational medicine, were offered in partnership with Centrum Medyczne Medica of Płock and the Military Institute of Medicine of Warsaw. In 2017, workplace preventive examinations were carried out under the 'Prevention Close at Hand' project.

Family Friendly Employer

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 old, two days off to care for a disabled child under 24 years old, 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.

Awards and certificates

The HR policies and practices of PKN ORLEN were surveyed by independent organisations. The analyses covered basic and additional employee benefits, working conditions, training programmes, professional career development and the Company’s organisational culture management were analysed. Following the surveys, the Company was awarded a number of distinctions, including the Top Employers Poland 2017 certificate, The World’s Most Ethical Company titles, and The Most Desired Employer in the Opinion of Professionals and Managers title in the power, gas, oil and chemical industries category in a survey performed by Antal International, a recruitment firm.



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