Conflicts and Security

Industrial relations

Continuous monitoring and analysis of the current situation in the labour collectives are performed to prevent any violations of rights of the workers from contractor and subcontractor organisations, to identify and correct any potential factors, as well as root causes and conditions bringing about day-to-day social non-conformities, infringement of the legitimate rights of the employees. Such factors as absence of acceptable day-to-day social conditions or observation of legal regulations in the contractor and subcontractor organisations may contribute to such risks.

Around 17 thousand employees from 151 contractor companies furnishing services at the Karachaganak field are being monitored by the Industrial Relations Section.

In the course of monitoring violations of labour rights KPO seeks to ensure an integrated and prompt review of all applications/complaints and to provide timely resolution of all issues. Such monitoring includes due consideration and analysis of opinions from all sides, reasonable measures to protect and reclaim labour rights of employees in accordance with the legislation of the RoQ, the Industrial Relations Policy and contractual commitments, including:

• Continuous monitoring of day-to-day social conditions, provided by contractors, full and timely payments of wages, provision of PPE, etc.;
• Organising subject forums and conferences dedicated to relevant themes (HSE, social welfare, etc.);
• Co-operation and engagement of competent labour protection authorities in the settlement of conflict situations, as well as awareness-raising and educational events;
• Fixing the minimum salary size for provision of services in the amount of KZT 830 per hour after deduction of all compulsory payments. Implemented upon expiry of contractual commitment terms under the effective agreements;
• Succession/transfer of skilled personnel from the existing contractor (whose contract term expires) to a new one. This implicit practice helps to maintain the employment level in the region and to uphold the socially stable environment in the period of service contract terminations.

Besides, as a part of the efforts to maintain the stable social environment in the contractor organisations, KPO developed and introduced a general monthly salary bonus in the amount of KZT 60 thousand, net of tax, and the prompt implementation of this measure improved financial situation of over 15,000 employees from contractor and subcontractor organisations. The general salary increase introduced as from 01 February 2022, was chosen to demonstrate equal attitude to all beneficiaries, but with substantial focus on the category of workers with the lowest wages. This decision was agreed in a meeting with engagement of the WQO Akim, Vice Minister of Energy, General Director of “PSA” LLP and General Director of KPO.

In 2022, employees of the Industrial Relations Section made 236 trips visiting over 545 work sites and compact accommodation premises, including six joint audits with the contract holders. 34 sessions of the tripartite district commission were held to discuss identified risks in the contractor and subcontractor organisations. As part of the monitoring process KPO also registers the number of Collective Agreements in the contractor companies because they serve as an indicator of compliance with the employees’ rights for freedom of association and collective bargaining. 32 contractor companies had Collective Agreements in place in 2022.

In total, 190 complaints/applications on different subjects from contractors’ employees were received and addressed in 2022. 92 % of the applications had to do with the salary payment and remuneration issues (the growth of such applications was due to the introduction of the general salary increase in the amount of KZT 60 thousand), 6 % of the applications were related to HSE matters and 2 % were dedicated to the provision of day-to-day social conditions. Apart from the written applications, the Industrial Relations Section is also processing from 2 to 20 daily phone calls and holds meetings with employees from contractor and subcontractor organisations. In general, as a result of the monitoring, audits and processing of received applications, actions on improvement of living and labour conditions were taken in 52 contractor companies monitored by the Industrial Relations Section. This, in its turn, contributed favourably into maintenance of the stable moral and psychological atmosphere in the working collectives.

Compliance with the declared labour conditions and day-today social welfare is monitored as a part of the fulfilled activities to prevent infringement of the labour rights. An integrated approach is used in the process of the above-mentioned activities: each application/complaint is analysed to ensure fullness of information.

In 2022, in relation to re-vaccination of the local population against the COVID-19 in Qazaqstan, the Industrial Relations Section held a number of online meetings with representatives of Health Department in order to exchange information on positive vaccination effects with the contractors.

Tab. 22. Examples of contractor’s applications to the KPO Industrial relations section

Security

Following the results of activity of the Security and Industrial Relations Department in 2022, 1 049 violations were found 94 % of which were related to strategy on ensuring protection of people in the event of H₂S incidents while the rest involved Material and Asset Movement Control, Policy on Prohibition of the Use of Alcohol, Drugs, Psychotropic and Toxicomanic Substances (their analogues) in KPO and violation of border of the Field perimeter. Significant number of violations is the result of activity undertaken to prevent persons not following H₂S Strategy from entering the Field.

33 internal investigations were conducted. These included seventeen applications which were submitted to law-enforcement agencies.

During 2022, KPO has revealed and prevented cases of unauthorized removal / relocation of KPO and contractors’ assets worth approx. KZT 118 mln.

Employees of the security company providing complex security services on the export pipelines have rendered assistance to the WQO law-enforcement agencies in detaining persons who illegally crossed the RoQ Border.

The use of the new Sintela security software has significantly increased overall monitoring quality, including more precise threat identification and improvement of patrolling.

In the Sustainability Report 2021 we informed on the increased security actions taken at the KPO operational facilities during force-majeure and state of emergency in Qazaqstan in January 2022. In addition, it is worth noting that considering the high employment rate of the Burlin district and the WQO residents at KPO, the Company primarily targeted at prevention of the destabilization of public order and acted in direct interaction with law-enforcement agencies and public authorities.

To minimize security risks and the Company’s impact resulting from its activities, we have determined several targets which implementation results are presented below.

Tab. 23. Our targets in security