Employee relations

Collective bargaining plays an important role in the Company. KPO respects the rights of its employees to organize a trade union and participate in negotiations of the collective agreement. Three Trade Union represent the interests of employees:

  • Public Association «Local Trade Union of KPO employees»;
  • Public Association «Karachaganak Local Professional Union of KPO employees and contractors»;
  • Public Association «Local Trade Union of Karachaganak Petroleum Operating B.V. employees and contractor companies «TRUST».

Trade unions develop a draft Collective Agreements addressing various aspects of social and labour relations and lead negotiations with the Company. In 2020, the Collective Agreement signed for 2019-2021 was effective. Provisions of the Collective Agreement are applied to all KPO employees regardless of their membership in the Trade Unions.

KPO has a few grievance mechanisms: applications to HR Controllership either directly or through Trade Union, and via the anonymous Hotline. In 2020, HR received 64 grievances and applications. The received grievances addressed such issues as labour misconduct, employment, conflict resolution, abuse of power, misconduct with contractor employees. All received grievances were reviewed and resolved.

In accordance with the Collective agreement, KPO has the obligation to raise a minimum two month (8 weeks) notice to Trade Unions in case of liquidation of the Company with subsequent reduction in staff, system or amount of remuneration leading to deprivation of employees’ conditions.

In 2020, 43 KPO employees applied for the voluntary dissolution of labour relations as part of the Voluntary Dissolution of Employment Relationship Programme of Collective Agreement, pursuant to the RoQ Labour Code dated 2017 (Art. 52).

In order to optimize costs, increase efficiency and maintain the Company’s competitiveness when the oil price is low, in November 2020 the Company has launched one-time Programme for Voluntary Dissolution of Employment Relations. 42 applications were approved under this programme.

Industrial relations

KPO has implemented the ‘Care for People’ Programme aimed at creating and maintaining favorable working conditions for employees of contractor/ subcontractor organisations.

The programme mainly focuses on creating the healthy work climate, ensuring compliance with the Code of Conduct, commonly recognized norms and standards of behavior, and also preventing causes and prerequisites contributing to manifestation of discontent and emergence of social unrest within the KPO contractors/subcontractors’ staff.

In this regard, KPO pays special attention to compliance with labour legislation and sanitary and hygienic standards of the Republic of Qazaqstan within the framework of implemented contracts for the provision of works and services.

In 2020, the COVID-19 outbreak and the current economic situation made it necessary to take unprecedented measures to ensure safety and health of all Company employees. While introducing restrictive measures KPO liaised with regulatory authorities and contractors/subcontractors in order to devise the required algorithm and mechanism of action.

As part of the support for local suppliers of goods and services, KPO organized PCR testing of contractors’ employees in compliance with the mandatory requirements regarding the implementation of sanitary and restrictive measures. In order to avoid additional financial burden on small businesses, these costs are fully recovered by KPO as of June 1, 2020.

Over the past year, suggestions, complaints and comments received from personnel were discussed and reviewed at the level of contractors’ management, various KPO directorates and contract holders with the aim of required response and corrective actions.

Cooperation between KPO and contractors / subcontractors both in the course of ongoing operations and as part of the Karachaganak project implementation has ensured operational safety and stability in the workforce.