Integrated Annual Report of LOTOS Capital Group 2015

The strategic objective of our HR policy is to ensure optimum employment adjusted to the LOTOS Group’s business objectives. We believe that having highly-qualified, motivated, and committed employees improves productivity and is a source of our organization’s competitive advantage. 

LOTOS Group’s HR policy is based on internal procedures governing various aspects of the recruitment and employee management processes:

Our standards of conduct at work and in business relationships are described in the LOTOS Group’s Code of Ethics. In our relations with employees and other stakeholders we are also guided by the ten corporate responsibility principles of the United Nations Global Compact, which cover the areas of human rights, labour, environment, and anti-corruption.

Our priority is to build a sense of trust between the management and the rest of the employees, and to treat fairly everyone regardless of their position, length of service, trade union membership, physical appearance, age, gender, sexual orientation, religion, nationality, or political views. 

Additional tools which support building good relations between the employees and the management are the Collective Bargaining Agreement and internal procedures which standardize the HR management processes.

Under the Collective Bargaining Agreement, we provide all our employees – regardless of the form of employment and length of service – with the same social benefit package (the package is also guaranteed under the Rules of Participation in the Company Social Benefits Fund). In 2015, 98% of the LOTOS Group’s employees were covered by the Collective Bargaining Agreement.

In case of redundancies resulting from operational changes at the LOTOS Group the minimum notice period is 30 days. This period is not specified in the Collective Bargaining Agreements; it is prescribed in the labour law.

In the case of women employed at the LOTOS Group, the ratio of the lowest pay at the lowest pay to statutory minimum pay in Poland in 2015 was 1.14. In the case of men, it was slightly above 1.

How do we create organizational culture which improves productivity?

• We undertake initiatives aimed at building the desired corporate culture, which include cooperation with the Ethics Officer as part of the Ethical Conduct Programme.
• We promote ethical values which are in line with the Code of Ethics; we also conduct communication activities aimed at improving the awareness of employees and management. Examples include e-learning training on how to avoid conflicts of interest in the workplace.
• We use annual employee evaluation for open communication between managers and employees, and for joint setting and evaluating of professional and development objectives. 
• We build an employee engagement culture and improvement activities by conducting surveys of employee satisfaction. They provide an insight into our employees’ attitudes and help us monitor employee satisfaction, engagement, and opinions. We try to use the information to create a friendly environment at the organization and to achieve business objectives. 
• We maintain good relations and we cooperate with trade unions and Employee Councils.

Number of employees

In 2015, the LOTOS Group employed 4,850 people, which puts us among the largest employers in the Gdańsk Province. As a reliable employer, we ensure that our employees have full-time contracts (99% of the employees) and contracts for indefinite term (84% of the employees).

Total number and rates of new employee hires and employee turnover by age group, gender and region

Most of our employees are men (77%). People aged 30 to 50 account for over 60% of the workforce. In 2015, new hires represented over 7.8% of the total number of employees. The rate of employee departures was nearly 13.6%. The departures were mainly transfers within the LOTOS Group. They were related to reorganization and internal recruitment (e.g. in connection with the EFRA Project), the latter considered priority by us over outside recruitment.