In 2011, no activities were identified at the LOTOS Group which could put at risk the right to freedom of association or collective bargaining.

Eight trade unions are active at the LOTOS Group companies based in Gdańsk and five trade unions operate at companies located in southern Poland.

The LOTOS Group’s trade unions include MZZ Pracowników Ruchu Ciągłego (Inter-Enterprise Trade Union of Continuous Operation Employees), ZZ Inżynierów i Techników (Trade Union of Engineers and Technicians), Wolny ZZ Pracowników Grupy LOTOS (Free Trade Union of Grupa LOTOS Employees), KM NSZZ Solidarność w Grupie LOTOS (Inter-Enterprise Committee of the Independent Self-Governing Trade Union Solidarność in Grupa LOTOS), Branżowy ZZ GL (Industry Trade Union of Grupa LOTOS), MZZ Obrony Pracowników (Inter-Enterprise Trade Union of Employees’ Defence), KZ NSZZ Solidarność Petrobaltic (Enterprise Commission of the Independent Self-Governing Trade Union Solidarność Petrobaltic), and ZZ Pracowników Ruchu Ciągłego Petrobaltic (Trade Union of Continuous Operation Employees Petrobaltic). The unions representing the LOTOS Group’s employees are members of all the three nation-wide trade union federations: KK NSZZ Solidarność (National Commission of the Independent Self-Governing Trade Union Solidarność), Forum ZZ (Trade Unions Forum) and OPZZ (All-Poland Alliance of Trade Unions). Three out of the eight trade unions based in Gdańsk are multi-employer organisations, which also represent workers employed at companies located in the south of Poland.

The rate of growth in trade union membership serves as clear evidence that the right to trade union participation and the principles of union self-governance and independence are observed within the LOTOS Group. As at the end of Q4 2008, trade union membership was declared by 38.5% of all employees, compared with 41.1% as at the end of Q4 2011. LOTOS Ochrona has the largest proportion of trade union members relative to total headcount (74%). The largest trade union active at the LOTOS Group is Wolny Związek Zawodowy Pracowników Grupy LOTOS (Free Trade Union of Grupa LOTOS Employees), with 612 members as at the end of 2011.

Out of six unions operating at Grupa LOTOS, two enjoy presumption of representativeness: Międzyzakładowy Związek Zawodowy Pracowników Ruchu Ciągłego (Inter-Enterprise Trade Union of Continuous Operation Employees) and Związek Zawodowy Inżynierów i Techników (Trade Union of Engineers and Technicians). Their members account for 18.5% and 14.1% of total workforce, respectively.

Employee consultations through Employee Councils

Seven Group companies have Employee Councils in place, while all the companies with headcounts in excess of 250 have set up OHS Committees to facilitate employee participation in the area of occupational safety. The Committees serve as platforms through which employees enforce their right to be consulted on health and safety matters.

The right to information and consultation, within the meaning ascribed to it in the Act on Information and Consultation of Employees, is exercised through the Employee Councils. Access to information provided by the LOTOS Group employers is broader compared with that prescribed by law.

The ballot to elect the second Grupa LOTOS Employee Council, a body of seven members, was held in 2010. Three members were re-elected for the second term of office.

The Grupa LOTOS Employee Council enjoys a special position within the LOTOS Group, as it operates at the LOTOS Group’s parent company. Thus, the scope of information provided to the Council covers all employers comprising the LOTOS Group. The Council holds monthly meetings with Grupa LOTOS management, which have become an important platform of communication with employees.