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ORLEN Group 2016 Integrated Report

II nagroda specjalna w kategorii Raport Zintegrowany | Najlepszy raport on-line

Responsible employer

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Modern management culture and friendly working environment are among PKN ORLEN’s key competitive advantages. We promote solutions that facilitate maintaining a good work-life balance. Our personal development initiatives, employee benefits, a wide range of training courses, and knowledge sharing opportunities are highly rated not only by employees themselves, but also by independent expert panels, which invariably distinguish PKN ORLEN as Poland’s leading employer.

Mirosław Kochalski,
Vice President of Corporate Governance, PKN ORLEN

Workforce

The number of ORLEN Group employees went down by 202 in 2016 and was 19,730 at the end of the year. The reduction followed mainly from the sale of ORLEN Transport and the reorganisation at ORLEN Oil and ORLEN Administracja. At the same time, the headcount in the power generation segment of PKN ORLEN, the ORLEN Upstream Group, and the maintenance units of ORLEN Serwis, ORLEN EKO and Centrum Serwisowe was increased as a result of business growth. In 2016, the Unipetrol Group acquired Spolana, an Anwil Group company. The average annual headcount at the ORLEN Group was 19,749 in 2016, down by 244 year on year.

The ORLEN Group headcount figure represents employees working under employment contracts. In rare cases, ORLEN Group companies may also hire staff under civil law contracts. There are no major seasonal headcount variations at the ORLEN Group.

Number of employees as of the end of 2016 and 2015 at the ORLEN Group companies:

 

 

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 – employees are not obliged to notify the company about such entitlements

-

total number of employees that took parental leave in 2016

40
- induding women 40

total number of employees who returned to work after parental leave ending in 2016

30
- induding 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 analysed period was 2015 (twelve months of service until December 31st 2016)

41
- induding women 41

percentage of employees who returned to work after parental leave

100%
- turnover rate of employees who took parental leave 100%

Remuneration policy

The objectives of PKN ORLEN’s remuneration policy and its application in practice guarantees equal pay to all employees, regardless of their gender.

The principles of remuneration at PKN ORLEN are defined in the Collective Bargaining Agreement. The main components of remuneration are base pay, determined with through the use of the Pay Grade Table and the Base Pay Table, and bonus. Employees are rewarded based on monthly, quarterly, quarterly/annual or annual bonus systems, depending on what job they do. Additionally, employees are entitled to an extra annual bonus payable with the achievement of the solidarity objective, there are also a number of allowances, such as a shift-work allowance, chemical emergency service allowance, or expat allowance. Outstanding achievements may be rewarded with resources from the Employee Reward Fund. The rules of bonus payments laid down in the Collective Bargaining Agreement were amended as of January 2016.

The average gross monthly remuneration at the ORLEN Group was PLN 6,960 in 2016.

In 2016, an agreement on pay rates was signed between PKN ORLEN and the trade unions. It provided for an obligatory rise in base pay by PLN 200 for each employee, a discretionary rise of PLN 100 per employee, and two one-off bonuses of PLN 1,500 each.

There were no collective redundancies in 2016.

In 2016, Anwil and ORLEN Laboratorium were involved in labour disputes, which were concluded with the signing of agreements with the trade unions.

Ratio of standard entry level wage at PKN ORLEN to local minimum wage at the main locations

Men 133%
Women 160%

 

Men’s and women’s pay by position as a percentage of the average base pay in 2016 at PKN ORLEN
  Women Men
Total 99.8% 100.1%
Clerk 56% 57%
Production process operator - 67%
Account manager 69% 70%
Specialist 92% 93%
Sales representative 97% 102%
Other 84% 87%
Production process foreperson 121% 112%
Production support engineer 80% 94%
Sales manager 113% 112%
Manager 157% 159%
Director 382% 382%

 

Ratio of basic remuneration for men to remuneration for women by employee category in 2016

Clerk 102%
Production process operator -
Account manager 101%
Specialist 101%
Sales representative 105%
Other 104%
Production process foreperson 93%
Production support engineer -
Sales manager 99%
Manager 101%
Director 100%

All PKN ORLEN employees are covered by Collective Bargaining Agreements. Collective Bargaining Agreements have also been concluded by several other companies of the ORLEN Group.

Minimum time to notify employees of planned restructuring

Pursuant to the PKN ORLEN Collective Bargaining Agreement and the agreement on the terms of collaboration with social partners in carrying out restructuring processes at Polski Koncern Naftowy ORLEN S.A. and on employee rights with respect to these processes, concluded on March 27th 2006 in Płock, the trade unions represented at PKN ORLEN are to be informed of any planned restructuring processes in advance, a specified number of days prior to such processes taking place. Depending on the process, this notification period may be:

1. 45 days (approximately seven weeks) – for any of the following restructuring processes:
  a. establishment of a new entity to take over a part of PKN ORLEN’s operations or PKN ORLEN as an employer within the meaning
      of Art. 231 of the Labour Code,
  b. transfer to another entity of a part of PKN ORLEN’s operations or PKN ORLEN as an employer within the meaning of Art. 231 
      of the Labour Code;

2. 35 days (five weeks) – for restructuring processes resulting in mass redundancies within the meaning of the Act on Special Rules Governing Termination of Employment for Reasons Not Attributable to Employees of March 13th 2003 (the „Act on Special Termination Rules”);

3. 20 days (four weeks) – for less extensive restructuring processes, for which PKN ORLEN S.A. plans individual redundancies on grounds specified in the Act on Special Termination Rules (either through employment contract termination or by mutual agreement, or involving amendment to working conditions or terms of remuneration through a notice of termination amending the contract of employment), where such terminations affect between 15 and 29 employees in a 30 day period; (approximately four weeks);

4. 7 days (one week) – for reorganisation of an organisational unit or task team, where PKN ORLEN S.A. plans individual redundancies on grounds specified in the Act on Special Termination Rules (either through employment contract termination or by mutual agreement), where such redundancies affect no more than 14 employees in a 30 day period (approximately four weeks).

The notification periods are longer than those specified in Polish law (for processes considered in items 1 and 2). Although not legally bound to do so, we provide trade unions with information on less extensive restructuring processes (item 3) and reorganisation processes (item 4), which shows that the Company collaborates with its social partners in a transparent manner and in accordance with the principles of social dialogue.

Health and safety issues covered in formal agreements with trade unions

We take care to maintain a transparent social dialogue within the ORLEN Group. The notification periods for individual processes are generally the same as those defined in generally applicable laws, but in some cases they are even more favourable.

HR Programmes

Policy for the management of human resources
In 2016, work continued on building employee engagement at the ORLEN Group. At 16 companies, an employee opinion survey and an evaluation of employee needs were carried out and initiatives were developed and launched to improve employee satisfaction and engagement. The most important of the initiatives included new communication channels for staff (intranet, newsletters, information boards, corporate press, HR inspirations), communicating employee achievements, employee volunteering programmes (Good Energy Factory) and the promotion of safety culture. Additionally, pay solutions consistent with the standards applied at the ORLEN Group were agreed and adopted at two companies, and work rules aligned with the ORLEN Group standards were introduced at three companies in 2016.

Recruitment policy
In 2016, the ORLEN Group continued its recruitment policy focusing on attracting highly qualified experts whose knowledge and skills, together with the experience and professionalism of the existing staff, will ensure the continuity and highest quality of the Group’s business and technological processes.

In implementing its recruitment policy, the Company placed a focus on attracting people whose values and attitudes are convergent with PKN ORLEN’s ethical values and codes of conduct, in order to build and strengthen a corporate culture based on the Code of Ethics as a set of clear principles and standards of behaviour.

Steps were taken to source specialists and experts and to engage with academic communities to encourage students and graduates to work with the ORLEN Group. PKN ORLEN participated in job fairs at universities of technology and in other inter university events of this type and helped students and graduates to gain hands-on job experience by organising internships and work placement programmes. We also carried out educational projects in the form of student workshops.

The Adaptation Programme, which is an induction programme allowing new employees to familiarise themselves with ORLEN Group operations, organisational culture, values and standards of conduct, was continued. Besides an introductory meeting and workshops with experts, employees participating in the Adaptation Programme took part in an e-learning session focusing on PKN ORLEN values and codes of conduct and were assisted by dedicated staff throughout the duration of the Programme.

Professional development and training

Development

Employees’ professional development and knowledge sharing were supported with various initiatives facilitating employees’ participation in interdisciplinary projects, further engagement in mobility, self-improvement, and teamwork in the implementation of best practices and uniform standards.
In 2016, PKN ORLEN’s activities in professional development and training that support staff continuity were focused both on enhancing employee qualifications to meet business goals and on shaping the desired attitudes to supporting the implementation of our strategy and increasing employee engagement. Like in 2015, the leading themes in 2016 were: the management of diversity, including that of generational diversity, engagement and innovation. To that end, we used a variety of communication methods, including lectures, workshops, discussion panels, inspirational meetings, peer mentoring, e-learning knowledge pills and gamification, depending on the needs of specific employee groups.

As a part of our leadership development effort, we continued the ‘Leader Zone’ programme – a multi-module training and development programme carried out in the form of regular workshops for managers designed to improve their skills in team management, the development of team potential, enhancement of team engagement and innovativeness, as well as enhancing the integrity of managers. Managers could also participate in training sessions designed to improve team management based on partnership relations, effective communication, difficult management situations and mindfulness.

Under the ‘Vector’ programme, in 2016, the Company continued to offer themed lectures for all employees. Their aim was to broaden the participants’ understanding of the latest trends in the industry, but most of all they were meant to inspire employees to pursue their individual development targets. Lectures revolved around themes such as the stimulation of creativity and innovation in one’s area of operation, personal effectiveness and self-motivation, diversity management and stress management. The Company also continued development projects dedicated to female employees in the form of discussion panels on challenging gender stereotypes and on effective communication. Additionally, women who returned to work after maternity leave and who wanted to combine work with care for children were offered training in personal effectiveness and growth. As part of the ‘Toolbox’ (‘Narzędziownik’) programme, the Company offered workshops based on the gamification concept. The proposed activities supported the development of employee competence in ethics, business innovation, effective communication in a diversified team, cooperation and decision making. Moreover, PKN ORLEN had its teams in GLOBAL MANAGEMENT CHALLENGE, a development programme for employees standing out due to their attitudes and achievements. Its main objective was to master business skills using sophisticated online team games.

To support the implementation of its strategy, in 2016 the Company continued with the ‘ORLEN Talent Academy’, a programme dedicated to n-1 level managers at selected ORLEN Group companies and to n-2 level managers at PKN ORLEN. Projects executed under the programme helped employees of the ORLEN Group to broaden their management skills, improve mobility, and share their knowledge and experience.

‘Ex-Change’, a mentoring programme, was continued in 2016 to further develop the ideas of peer mentoring based on knowledge sharing within the organisation. Employees who joined the programme took part in workshops aimed at developing skills necessary to act as a peer mentor. The ultimate objective of the programme is to establish a base of in-house mentors of various specialisations, develop their competence to support effective knowledge sharing, and unlock their potential in various forms of development initiatives within the organisation, e.g. in-house training.

In 2016 PKN ORLEN employees could undergo specialist training and attend postgraduate courses, MBA courses, industry conferences and seminars in Poland and abroad. They also continued to learn foreign languages as part of the PKN ORLEN Language Academy and summer English courses.

In order to help its employees to master safer driving techniques, learn how to drive in difficult road conditions and react in emergencies, ORLEN launched the Safe Driving Academy in 2016. Moreover, with a view to supporting its safety culture, the Company provided training in health and safety at work, fire protection, chemical emergency services and first aid. Our employees also participated in specialist training in the inspection of technical equipment in refineries and petrochemical plants.

Training and development activities were carried out not only in the form of on-site programmes, but also through our e-learning platform.

Employees subject to restructuring programmes were offered the Training Package, which is a programme of training in job search techniques, entrepreneurship, and specific fields selected by the employee.

Training

In 2016, PKN ORLEN trained more than 4.5 thousand employees, most of whom attended more than one training programme. Overall, more than 13 thousand training units were completed in 2016, with the average of 40 hours of training per employee.

In 2016, average hours of training per year (per PKN ORLEN employee, by gender and employee category) were as follows:

At other key ORLEN Group companies, the figures were as follows:

COMPANY Average number of training hours per employee Average number of training hours per female employee Average number of training hours per male employee Average number of training hours per manager Average number of training hours per non-manager
Grupa ORLEN* 22,1 19,7 22,2 37,2 20,0

Computation formula:
- Hours of training per employee on average = total hours of training done by employees/total number of employees
- Hours of training per female employee on average = total hours of training done by female employees/total number of female employees
- Hours of training per male employee on average = total hours of training done by male employees/total number of male employees
- Hours of training per manager on average= total hours of training done by managers/total number of managers
- Hours of training per non-manager on average = total hours of training done by non-managers/total number of non-managers
* ‘Hours of training per employee on average’, ‘Hours of training per manager on average’ and ‘Hours of training per non-manager on average’ for the following companies: ORLEN Paliwa, ORLEN Projekt, IKS Solino, Petrolot, ORLEN Eko, ORLEN CUK, ORLEN Lietuva, ORLEN Serwis, ORLEN Centrum Serwisowe, ANWIL, ORLEN Asfalt, Płocki Park Przemysłowo-Technologiczny, ORLEN Oil, ORLEN Upstream, ORLEN Koltrans, ORLEN Południe, ORLEN Deutschland, ORLEN Laboratorium, ORLEN Budonaft, Unipetrol Group
* ‘Hours of training per female employee on average’ and ‘Hours of training per male employee on average’ for the same companies as above except ORLEN Serwis

Student internships and work placement programmes

PKN ORLEN shows concern 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.

For years, PKN ORLEN has been organising internships as a partner of schools and universities, and has been involved in nationwide and international projects. In 2016, the Company organised:

More than 200 people participated in the internships and programmes.

In addition, the following educational and informational projects were targeted at students and school pupils in 2016:

Development of HR functions

HR staff supported the consolidation, restructuring and divestment processes carried out at the ORLEN Group in 2016. As part of the work, the HR and payroll solutions and IT systems were adjusted to correctly and effectively support business processes. 20 companies of the ORLEN Group have SAP HR and Self-Service systems and at 18 companies CallCenter and HelpDesk Kadrowy processing systems were implemented. Competence Centres and HR Business Partners supported the Group companies in developing new solutions for the remuneration and bonus systems.

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 PKN ORLEN’s joint social benefits programme (as at April 1st 2017): 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). Other companies have their own employee benefit programmes in place.

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. Furthermore, PKN ORLEN’s employees participate in the Employee Pension Plan (known as the Third Pillar). Starting from 2016, PKN ORLEN also covers part of the cost of insurance premiums for its employees. The Plan covers all employees working under employment contracts who have worked at the Company for at least three months, regardless of the type of contract.

Benefits are guaranteed to former employees (old age pensioners, disability pensioners, persons who opted for voluntary redundancy) of PKN ORLEN and the Group companies covered by the joint social benefits programme:

In addition:

All ORLEN Group employees receive the same benefits regardless of their location, job, or type of employment contract. Insurance coverage or other benefits may differ depending on the employer. Group insurance is offered to all PKN ORLEN 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 each company makes decisions in this respect on a discretionary basis.

Healthcare

The Company also provides extensive preventive medical care going beyond the scope of occupational medicine. Medical services and other preventive healthcare programmes were offered in cooperation with Centrum Medyczne Medica Sp. z o.o. of Płock and the Military Institute of Medicine of Warsaw. In 2016, workplace preventive examinations were carried out under the ‘Prevention Close at Hand’ (‘Profilaktyka na Wyciagnięcie Ręki’) project.

Family-Friendly Employer

 As a company implementing modern-day solutions aimed at maintaining the balance between work and family life, PKN ORLEN carried out the ‘Family-Friendly Employer’ project, offering such benefits as an additional two days off to care for a child under three years old, a nursery school for the children of ORLEN Group employees, one additional hour for breastfeeding, medical care during pregnancy, baby feeding rooms, gifts for newborn children of our employees, and sending Company updates to employees on parental/childcare leave.


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