Corporate Social Guarantees for Employees and Non-Working Pensioners

Social Benefits and Guarantees (Collective Agreement)

OAO TATNEFT cares about the welfare and social security of its employees and their families.

The Company offers a package of social benefits and guarantees to its employees. The commitments of the Company to ensure their fulfillment are stipulated in the Collective Agreement of OAO TATNEFT concluded annually between the labor collective and management of the Company.

The Collective Agreement provides for:
- benefits and guaranties for the employees;
- social protection of young workers;
- support of pensioners.

The structure of the social benefits and guarantees for the employees of the TATNEFT Group of companies is defined by the Standard of the Collective Agreement of the TATNEFT Group of companies, which is a recommendation for all the Group companies.

Social Insurance

Being concerned about the health of its employees the Company:
- carries out insurance against accidents at work;
- implements a program of voluntary health insurance, under which the employees can receive qualified medical care and undergo rehabilitation and recovery treatment at the spa/resort type facilities.

Labor Protection

Recognizing the priority of life and health of workers in relation with their production activities results the Company:

- ensures compliance with the requirements of industrial and fire safety requirements for safe performance of works and reduction of hazardous factors impact on the workers;
- arranges recording and analysis of occupational accidents, accidents at the production facilities and occupational diseases ensuring development and control of their prevention measures implementation;
- provides the workers with the information about harmful substances used in the production process, dangerous production factors and benefits guaranteed in this connection as well as the size of compensation payments herein;
- arranges at the account of the Company mandatory periodic medical examinations of employees, annual medical examinations of women; compensates the employee the cost of preliminary medical examinations when they initially come to begin working;
- provides the employees engaged in the jobs with harmful and/or dangerous labor conditions, as well as in the work performed under special temperature conditions or pollution-related with application of certified personal and collective protection means in accordance with the established standards, monitors correctness of their use, providing for their repair, laundry and cleaning at the expense of the Company;
- organizes and finances the work of the Labor Protection Commissions in all structural divisions;
- renders assistance in the work of the authorized trade union labor protection persons, as well as arranges their training;
- ensures the annual conclusion of agreements on labor protection between the management and trade union organization, providing for their financing and implementation of the activities contained herein;
- organizes assessment of workplaces with respect to working conditions with participation of the Trade Union Committee representatives;
- compensates 50% of the value of a single daily meal of drilling and workover crews;
- provides free meals for the employees involved in overtime work to deal with incidents of more than two hours;
- provides clean drinking water to workers in all workplaces and in the field camps.

Education and Development

There is an integrated system of continuous or uninterrupted education functioning successfully in the Company, which is focused on continuous improvement and development of employees, providing highly professional and efficiently working staff for the Company.

The system of continuous or uninterrupted education includes:

- training, retraining and advanced training of workers and specialists of the Company;
- co-operation with educational institutions of secondary and higher vocational education in training of highly qualified professionals;
- creation of special purpose groups in the prestigious universities covering the Company's mostly needed areas with subsequent arrangement of various types of practical training and final employment in the divisions of TATNEFT. The Company concludes student contracts with the best students of specialized high schools;
- training and development of young workers;
- working with the personnel reserve

Improving Housing Conditions

OAO TATNEFT attaches great importance to improving the living conditions of workers.

The Company has developed and is realizing «Provision of a non-recurrent loan to employees to compensate an initial down payment for acquisition of housing under the social mortgage system of the Republic of Tatarstan», under which the Company renders assistance to the employees effecting initial down payments. There is also envisaged non-recurrent loan repayment for the employee out of the Company's profit, provided that the participant of the social mortgage system is an employee of OAO TATNEFT.

At the discretion of young families the apartments are additionally fit with furniture, the cost of which is included in the cost of housing, and also paid for in installments.

Non-Governmental Pension Coverage

The Company has been operating the non-governmental pension program since 1997. Its operation is based on the principle of social partnership, under which the Company and its employees transfer on a parity basis pension contributions into the National Non-governmental Retirement Pension Fund for pension capital formation in favor of a specific employee.

The regulation «On the non-governmental pension provision» sets the rules, criteria and procedure for appointment of non-governmental pensions, as well as three main retirement benefit schemes, under which an employee of the Company can establish its own pension capital.

Through application of various retirement benefit schemes the program covers nearly all the employees of the Company. The main objective of the program is to give each employee the opportunity to create his or her pension capital and to guarantee its preservation.

Support of Non-Working Pensioners and War Veterans

Taking into consideration the socially vulnerable situation of non-working retirees, the Company pursues a purpose-oriented policy of its retirees social support.

The Company provides additionally material aid to the state pensions of non-working pensioners who has served in OAO TATNEFT for 10 years and more than that and had retired from the divisions of the Company prior to the establishment of the National Non-governmental Pension Fund (NNPF).

Since 2006 the Company has been implementing a corporate project of addressed assistance to its old age pensioners.

There are veteran councils active in subdivisions of OAO TATNEFT, which jointly with the management and the Trade Union Committee provide continuous support for the pensioners. The Company provides financial aid to the pensioners for International Women's Day of March 8, Day of Elderly Persons, for jubilee dates.
For Victory Day the Company provides material aid to the participants of the Great Patriotic War, widows and workers of the rear.

Young Employees Support

One of the priorities of OAO TATNEFT is to support and develop the youth. The youth organization uniting all the employees of the Company under 33 has been active in OAO TATNEFT since 2000.

Full-time posts of engineers to work with the youth have been established in the Company's divisions. Allowances to salaries have been introduced for non full-time working Chairmen of the youth organization committees and young specialist boards. Interest free loan is granted for purchasing furniture and essential commodities.

The main directions of working with young people:

- vocational adaptation of newly hired young professionals;
- training and professional development;
- social protection of young workers;
- ensuring the young people creative self-realization;
- networking of the youth in the information space;
- formation of tolerance and civic spirit of young workers;
- promotion of healthy lifestyle.