3.4. Social Partnership and Collective Agreement

The Gazprom Group recognizes the freedom of professional association and the right to collective bargaining provided for by the UN and ILO documents, the Constitution of the Russian Federation, the Labour Code of the Russian Federation, and Federal Law No. 10-FZ dated January 12, 1996 “On Trade Unions, their Rights and Guarantees of their Activities”. Employer-employee relations in the Gazprom Group are based on social partnership to ensure the best balance of interests for efficient delivery of PJSC Gazprom’s objectives subject to the performance of the commitments assumed.

The key element of social partnership — the system of employer-employee relations in regulating social and labour relationships — is the General Collective Agreement of PJSC Gazprom and its Subsidiaries. It is concluded for a three-year period and seeks to achieve the following goals:

• develop the social partnership mechanism;
• through the performance of mutual commitments, encourage employees to improve their own performance and achieve the planned operational targets of PJSC Gazprom and its subsidiaries;
• establish uniform approaches to protecting employees’ interests as related to labour remuneration, employment, creating a safe labour environment, granting benefits, guarantees and compensations.

Based on the General Collective Agreement, PJSC Gazprom’s subsidiaries enter into collective agreements which take into account their region-specific features and existing practices. Collective agreements govern the matters related to social benefits, guarantees, and compensations. Subject to the provisions of the existing collective agreements and by-laws, subsidiaries can align their social packages with the specific features of their operational activities.

The Gazprom Workers’ Union Interregional Organization, one of Russia’s largest trade unions, which was created on the basis of the industrial principle, acts on behalf of all employees in collective bargaining. The organization addresses the matters of collective bargaining, represents and protects employee rights and interests in respect of social and labour relations and occupational safety, monitors compliance with labour laws and collective agreements, and takes action to prevent and resolve labour disputes.

The Gazprom Group pursues a consistent policy seeking to set up and consolidate trade union organizations. As of the end of 2019, the Gazprom Workers’ Union Interregional Organization included 650 organizations and had 355,276 members.

In 2019, collective agreements covered 100% of employees of PJSC Gazprom and its subsidiaries, 45 % of employees of PJSC Gazprom Neft and its subsidiaries, 99% of employees of Gazprom Energoholding and the companies consolidated under its management, 85% of employees of Gazprom Neftekhim Salavat, and a total of 73.3% of the Gazprom Group’s employees.

During the year, the trade union organizations conducted 473 inspections, including 263 comprehensive inspections on various issues pertaining to the compliance with the labour legislation, and reviewed 1,427 reports of which 639 were reasoned and 56 partially reasoned. Employees and retirees mostly asked questions related to the labour legislation and collective agreement.

PJSC Gazprom’s subsidiaries have labour dispute commissions in place.

In the reporting period, there were no records of conflicts between employees and employers resulting in strikes, suspension of work or collective labour disputes, including conflicts pertaining to any violation of the human rights to freedom of association and collective bargaining.

Gazprom has a strong focus on sharing its positive social partnership experience. Social and economic indicators and collective agreements of PJSC Gazprom subsidiaries and entities are annually presented to the Russian Oil, Gas and Construction Workers Union (ROGWU) to participate in the collective agreements competition, where PJSC Gazprom’s subsidiaries are frequent awards winners. In 2019, Gazprom Dobycha Urengoy LLC, Gazprom Transgaz Kazan LLC and Gazprom Tsentrremont LLC won awards in their categories.