Integrated
Annual Report 2011

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Grupa LOTOS S.A. - Integrated Annual Report 2011
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Diversity and equality of opportunities

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In 2010, the Warsaw Stock Exchange introduced the following provision to the Code of Best Practice for WSE Listed Companies: “The WSE recommends to public companies and their shareholders that they ensure a balanced proportion of women and men in management and supervisory functions in companies, thus reinforcing the creativity and innovation of the companies’ economic business.” As a listed company, Grupa LOTOS shares the belief that employment diversity may increase a company’s competitiveness and strengthen its development prospects. However, gender diversity is not always a key factor in HR decision making, particularly in the industry in which Grupa LOTOS operates. The Company manages the Gdańsk refinery. Due to the nature of its activities, a great part of the Company’s employees are engineers and specialists in hydrocarbon production and processing. In Poland, as well as in other parts of the world, this segment is dominated by men. This is also confirmed by the prevalence of men among engineering students in Poland. The tendency is reflected in the Company’s employment structure. Despite the policy of equal opportunities in the recruitment process, women are more numerous in back-office functions, whereas men – in production and technology. 

Composition of the management and supervisory bodies of Grupa LOTOS by age and gender is as follows:

Item Total as at Dec 31st 2011 %
up to 30 years old    
Supervisory Board 0 0.00
30 - 50 years old    
Supervisory Board 5 83.33
over 50 years old    
Supervisory Board 1 16.67

 

Item Total as at Dec 31st 2011 % of all employees

up 30 years old

   
Board 0 0.00
Senior management 0 0.00
Lower management 2 0.15
Back-office staff 76 5.72
Production staff 117 8.80
Total: 195 14.67

30 - 50 years old

   
Board 1 0.08
Senior management 28 2.11
Lower management 83 6.25
Back-office staff 365 27.46
Production staff 285 21.44
Total: 762 57.34

over 50 years old 

   
Board 3 0.23
Senior management 13 0.98
Lower management 41 3.09
Back-office staff 166 12.49
Production staff 149 11.21
Total: 372 27.99

  

The ratio of men’s base pay to women’s base pay by position held at Grupa LOTOS is as follows:

Base pay at Grupa LOTOS according to gender,
as at December 31st 2011
Employee category Women Men Ratio of men’s base pay to women’s base pay
Number Minimum base pay Number Minimum base pay
Supervisory Board 1 3,454 5 3,454 100%
Board 0 - 4 20,728 -
Senior management 7 17,000 34 13,063 77%
Lower management 41 5,748 85 7,000 122%
Back-office staff 355 2,400 252 3,490 145%
Production staff 1 3,818 550 3,000 79%
Relation of minimum base pay   2,400   3,000 125%


Grupa LOTOS wants to offer attractive base pay rates to its employees. However, the Company needs to take into account the nature of a given labour market and certain internal considerations. In 2011, the ratio of men's base pay to women's base pay was 125%, in favour of men. The largest disparities exist in the case of the Finance and Accounting Centre – a self-financing back-office unit, which has to take into account the effect of staff expenses on its profitability. In 2011, several new junior accountants were employed at the Centre to stand in for employees on maternity or parental leave. Since the position requires fewer qualifications and lower education, it entails lower remuneration. The temporary substitute employment contracts are the reason behind lower remuneration of women working in the back-office area.