Guided by the International Labor Organization Conventions, the Gazprom Group adheres to international standards on freedom of association, wages, working time and conditions, remuneration, social security, paid vacations, occupational safety, etc.
As of December 31, 2016, the number of the Gazprom Group employees totaled 467,400.
Gazprom Group’s employment structure as of December 31, 2016
At the same time, the number of employees at the Gazprom Group’s core companies focused on gas production, transmission, underground storage and processing totaled 237,400.
The Gazprom Group’s employee motivation system includes both financial and non-financial incentives and is aimed at attracting and retaining qualified personnel, as well as increasing employees’ commitment to high performance.
The remuneration systems across the Gazprom Group’s subsidiaries establish basic salaries and salary scales commensurate with qualifications and professional aptitude, recurring performance-related bonuses, supplementary payments and increments depending on working conditions and scope of duties, non-recurring bonuses (including for putting production facilities into operation, completing the construction of facilities, introducing new equipment, saving energy resources, discovering new hydrocarbon deposits), and compensation based on work results.
The unified corporate norms for remuneration are outlined in the Model Regulation on remuneration for employees of the Gazprom Group’s subsidiaries approved by Gazprom’s Order No. 377 dated December 20, 2012.
The incentive tools for top managers of Gazprom and its core subsidiaries focused on gas production, transmission, underground storage, processing and marketing approved by the Company’s Board of Directors Resolution No. 927 dated December 19, 2006, include:
- the annual bonus system taking into account the corporate and individual key performance indicators of the Company in the reporting year. The list of corporate indicators includes unit costs for gas production and for gas transportation, gas sales volume in physical terms, cost saving on purchases of goods (work, services), and commissioning of priority production facilities;
- the equity participation program for Gazprom top managers aimed at motivating the Company’s key officers to increase the market value of Gazprom’s shares in the long term.
As a motivation tool for the Gazprom Group employees, the Company has introduced a system of incentive awards from the Russian Government, the Russian Ministry of Energy, and Gazprom.
The employer-employee relationship at Gazprom is governed by several basic documents.
The list of the most important documents is as follows:
- Industry Agreement for the companies engaged in the oil and gas industry and in the construction of oil and gas industry facilities in the Russian Federation;
- Industry Tariff Agreement for the power industry of the Russian Federation;
- General Collective Agreement of Gazprom and its subsidiaries for 2016 through 2018;
- Collective agreements of Gazprom’s subsidiaries and organizations.
Gazprom’s social policy is an integral part of the human resources policy and is aimed at maintaining the Company’s competitive advantage in the labor market and creating an effective system of social security for employees.
The underlying principle of social security is a social partnership based on a constructive and mutual dialogue between employees and employers, which is aimed at regulating social and employment relationships.
The scope and principles of the social policy are outlined in the key social document – the General Collective Agreement of Gazprom and its subsidiaries.
Vladimir Kovalchuk, Chairman of Gazprom Profsoyuz interregional trade union, and Alexey Miller signing General Collective Agreement
At present, Gazprom implements a social policy that provides social security for employees, motivates them for long-term and efficient work at the Company, offers benefits, guarantees and compensations, healthcare services and health resort treatment, various types of private insurance, and supplementary pensions, and creates comfortable and safe working conditions.
Gazprom runs a housing assistance program based on mortgage loans to support employees facing housing problems.
The social and employment relationships across the Gazprom Group are regulated in accordance with the Russian labor legislation, the General Agreement signed by Russian trade unions, employer associations, and the Government, the Industry Agreement for the companies engaged in the oil and gas industry and in the construction of oil and gas industry facilities, collective agreements, and other local regulations of the Gazprom Group’s organizations.
The Group’s social policy is aimed at ensuring that the partner relationships between employees and employers are well-balanced.
The interests of over 277,000 employees of the Gazprom Group are represented by the Gazprom Profsoyuz interregional trade union.