6.4. HR Policy

Main Provisions of the HR Policy

Transneft declares the life and health of its employees its top priority, along with sufficient staffing of Transneft subsidiaries with highly qualified employees motivated for long-term labour relations.

Average number of employees at Transneft subsidiaries in 2017-2019, breakdown by federal districts, thousand people
Federal District 2017 2018 2019
TOTAL including TOTAL including TOTAL including
Managers, specialists, office staff Workers Managers, specialists, office staff Workers Managers, specialists, office staff Workers
Total across Federal Districts: 114.3 52.1 62.3 115.1 52.5 62.6 115.9 63.0 52.9
Central FD 20.1 12.0 8.0 19.9 11.9 8.0 20.1 13.4 6.6
Northwestern FD 9.6 4.1 5.5 9.7 4.1 5.6 9.6 5.0 4.7
Southern FD 10.2 4.5 5.7 10.2 4.4 5.8 10.4 5.7 4.6
North Caucasian FD 1.4 0.3 1.0 1.3 0.3 1.0 1.3 0.7 0.6
Volga FD 30.3 13.4 16.9 30.7 13.8 16.9 30.7 16.5 14.2
Ural FD 18.8 7.1 11.7 18.7 7.1 11.6 18.8 8.6 10.2
Siberian FD 14.7 6.6 8.0 14.9 6.8 8.1 15.0 8.0 7.0
Far Eastern FD 8.4 3.5 4.8 8.8 3.7 5.1 9.0 4.5 4.5
Other countries 1.0 0.5 0.5 0.9 0.4 0.5 1.0 0.4 0.5

Note: in 2019, the accounting procedure for facilities’ security personnel was adjusted.
Information on the average number of Transneft subsidiaries’ employees in 2017-2019, breakdown by type of activity, thousand people
Type of Activity 2017 2018 2019
Oil and petroleum products transportation 68.9 69.7 69.8
Safety and security at the facilities 16.8 17.2 17.2
Construction of engineering structures 8.7 8.4 8
Engineering and technical support and maintenance of oil and petroleum products transportation 16.1 16.2 17.2
Maintenance of public amenities 2.1 2 2
R&D, technical solutions, design and survey work 1.7 1.6 1.7
Total 114.3 115.1 115.9

The main goals of Transneft in terms of HR:

  • staffing Transneft subsidiaries with qualified staff, taking into account long-term and mid-term trunk pipeline system development plans and maintaining their stability;
  • increasing the flexibility of financial and non-financial incentive systems considering regional factors and the place of certain groups of professionals on the labour market; offering a competitive remuneration system;
  • improving and increasing the quality of personnel training, retraining and refresher courses in accordance with the relevant laws of the Russian Federation and the directions of the Company’s strategic and innovative development.

Social Policy

Social policy aimed at attracting, retaining and motivating employees of Transneft subsidiaries forms an important part of Transneft’s HR policy.

As part of the social policy, a range of measures is implemented to improve the standard of living and personnel efficiency, support employees, their families and corporate retirees. Within the policy, conditions are created for personnel treatment, health and recreation; healthy lifestyles are promoted and corporate culture is developed.

Medical Care for Employees

A voluntary health insurance (VHI) system is in place to ensure the Company’s personnel is provided with the necessary healthcare. All Transneft subsidiaries’ employees that have passed the probationary period are entitled to VHI. The personnel are additionally insured against accidents and illnesses, which enables reimbursement of the employee’s losses related to temporary or permanent disability, should an insured event occur.

Apart from that, better affordability of medical services to employees of Transneft subsidiaries is ensured through operation of health stations at Transneft subsidiaries’ facilities and medical examinations carried out by mobile teams of medical specialists.

In 2019, health checks at mobile medical units were available to the personnel of operating facilities of Transneft East and Transneft North in Irkutsk and Amur Regions, Krasnoyarsk Territory and the Republic of Sakha (Yakutia), as well as in Arkhangelsk Region. The doctor teams conducted health checks for 5,268 employees. Additionally, more than 6,000 employees of Transneft subsidiaries were provided with extended health checks under cardio and oncological screening programmes.

Personnel Training and Refresher Courses

Employees regularly polish their professional skills under up-to-date training programmes provided by leading industry-focused universities and secondary vocational education schools, as well as at the Company’s educational institutions.

In 2019, work continued on the implementation of centralised refresher course programmes for engineering and technical personnel in universities and the Company’s educational institutions along the major lines of operating activities:

  • operation of energy and heat&power equipment at petroleum products pumping stations and electrochemical protection systems of oil trunk pipelines;
  • operation of mechanical process equipment;
  • operation of oil and petroleum products pipeline transportation facilities;
  • automated process control systems.

In addition, in 2019, after the centralised refresher course programmes for the previous year were implemented, the learning materials and equipment used by educational institutions in the educational process were analysed, which resulted in updated training programmes and new standard lecture materials for these programmes.

The staff is mostly trained by corporate and state educational institutions that have entered into agreements with the Company, accounting for more than 65% of the total number of employees involved in training and professional development programmes for employees.

In order to provide Transneft subsidiaries with qualified personnel with higher education, targeted training of students is carried out at universities under long-term cooperation agreements.

At the end of 2019, 405 students were being trained on the terms of employer-sponsored education, including 380 bachelor programmes and 25 master programmes.

Most students majored in Engineering, Technology and Technical Sciences. For example, 220 students majored in Oil and Gas Engineering, which is 54% of the total number of employer-sponsored students.

Industrial contests are held annually:

  • Best in Profession professional excellence contest;
  • Best Volunteer Fire Brigade contest;
  • International Youth Science and Technology Conference.
Training of Transneft Group’s employees, courses taken
Name 2017 2018 2019
Managers 18,221 17,621 20,467
Specialists 42,517 41,261 47,987
Workers and office staff 48,904 47,760 49,318
TOTAL 109,642 106,642 117,772