Respect for people is one of the principles of our Code of Ethics and was made explicit in our strategic positioning defined in September 2019. The Conduct Guide reinforces our principles of respect, honesty, and responsibility in our conduct with stakeholders. We also have a Corporate Human Resources Policy.
In accordance with our Strategic Positioning and as an expression of work relations management permeated by dialogue, valuing employees, respecting their representations, and by balancing employee desires and our corporate objectives, we affirm our policy of permanent union negotiation, with the consolidation of Collective Labor Agreements, in which the objective conditions of labor relations are broken down into social and economic clauses.
As of December 2019, we were 46,407 employees at the parent company, along with 99,224 employees of service providers operating in our units.
The entry of our Brazilian employees is done through a public selection process which are carried out with equal base salaries for men and women, and according to Brazilian law, 20% of vacancies are reserved for black candidates and 5% for people with disabilities. In 2019, 288 people joined our parent company, of which 55 were women and 233 were men.
In 2019, we launched three voluntary resignation programs, one of which focused on retired employees, one specific for areas undergoing a divestment process, and one for employees in administrative areas. The total number of employees who chose to leave due to the programs is 17,590 as of December 2019. The total severance paid as a result was BRL 5.83 billion, representing a financial return of BRL 28.34 billion in avoided costs in December 2019. Historically, our turnover rate has been at low levels, with the exception of 2014, 2016 and 2017, due to these programs. In 2019, employee turnover rate was 1.75%.
Our employees direct compensation, is assessed annually through market surveys conducted by specialized consultants, such as Willis Towers Watson and the Korn Ferry Hay Group. The results show that the salaries we pay are in line with the best practices in the oil and gas market. In the latest survey, developed by the consulting firm Willis Towers Watson in 2019, our monthly average was compatible with the third quartile of the market, composed of 50 companies operating in the O&G segment. This position has remained stable since 2007. The salary values practiced, without regional distinction, are reviewed and corrected annually through negotiation with unions representing each professional category.
The relationship between the total annual compensation of the highest paid individual and the average salary of all other employees is 5.9, where the highest paid person is the CEO. The minimum entry wage is BRL 4,634.28 and is equivalent to 4.64 times the current national minimum wage, without any differentiation by gender.
In addition, we have a variable compensation program for our employees that aims to align individual performance with our global goals and increase engagement so that everyone feels responsible for our results.
When calculating the variable remuneration of all employees, we consider four global performance metrics: 2 financial and 2 environmental – Gross Debt, Variation in Value Added (Delta EVA), Intensity of Greenhouse Gas Emissions and Leaking Oil and Derivatives Volume. In addition, each employee or executive has specific goals defined in their scorecard. A common employee will have 35% of their bonus based on our overall performance, 55% on their specific goals and 10% on their discretionary assessment.
We offer post-employment benefit plans that cover 96% of our employees, considering that the plans are optional and not imposed.
We make the Multidisciplinary Health Care (AMS) Health Benefit available to our active and retired employees as well as their dependents. AMS offers medical and dental assistance, as well as self-management health and pharmacy benefit programs. In 2019, AMS served 284,979 beneficiaries distributed in every state of Brazil. The Benefit coverage ratio is 70% for the employer and 30% for the employees, as defined in ACT 2019-2020.
We offer educational benefits to contribute to the training and education of employees and their children.
All employees who have proven the birth or adoption of a child are eligible to take maternity or paternity leave. In addition to the legal determination, our employees have the right to extend maternity leave, reaching a total of 180 days, and to extend paternity leave, reaching a total of 20 days. The extension of maternity leave in case of premature birth (before the 37th week of gestation) is also guaranteed.
In addition to the benefits mentioned above, we have implemented other measures aimed at the well-being of our employees, such as the granting of hourly allowances to employees with disabilities and employees who have children with disabilities, who are enrolled in the Special Assistance Program (PAE) and that need assistance with medical appointments and/or therapies. The allowance for employees who have children with disabilities has been extended to up to 240 non-cumulative hours per year. In 2019, 363 employees were entitled to the aforementioned bonus.
Relationship with Labor Unions
The topic of Labor Union relationships is present in our Code of Ethics (items 2.5 and 2.6), as well as in the HR policy (guideline 6). It is also worth mentioning that we have been signatories since 2003 to the Global Compact, whose principle 3 provides for the effective recognition of the right to collective bargaining. According to item 2.5 of our Code of Ethics, we recognize the right of free association of our employees, respect and value participation in unions, and do not practice any type of negative discrimination in relation to our unionized employees.
About 97% of our employees are covered by collective bargaining agreements, the rest being covered by individual labor agreements.
The readjustment of our salary tables is done through collective bargaining with unions representing the oil and maritime categories. The 2019/2020 Collective Bargaining Agreement (ACT), which established a 2.3% increase in wage and benefits tables, was approved by 78% of employees at union meetings.
We maintain a policy of permanent dialogue and negotiation with employee representatives. An example of this are the meetings of the permanent committees, held periodically with the unions to deal with issues such as the work regime, health insurance plan, and monitoring of the collective agreement, which aim at both improving working conditions and facilitating negotiations for entering into collective agreements, mitigating the risk of strikes.
When we talk about diversity, we embrace inclusion and fairness to foster an environment favorable to the expression and recognition of employee identities and the consolidation of relationships based on respect and trust. Diversity management is carried out through the principles of respect for differences, equal opportunities, and non-discrimination.
Health and Safety
Our goal is to operate within the best global safety standards. One of our top metrics in 2019 is the Total Recordable Injury (TRI) per million man-hours below 0.7 and ambition of zero fatalities.
The Commitment to Life Program consists of actions focused on preventing accidents and preserving life and the environment. The actions that make up the Commitment to Life Program are structured based on the results of our health, safety, and environment management (HSE) assessments, the basic causes identified in the accident investigation processes, and the environmental scenarios of the last few years. Since the launch of the first Commitment to Life Program in 2016, we had a significant reduction in the Total Recordable Injury (TRI) from 2.15 to 0.76 in 2019.
To support a culture of safety ten Golden Safety Rules were defined. To do this, we considered the most frequent accidents in the oil and gas industry and in our history. Training about the Golden Rules is mandatory for all our employees in Brazil and abroad.
The risks related to the processes and activities developed in our operations are controlled and described in the Environmental Risk Prevention Program (PPRA). According to the risks mapped in the PPRA and monitored by our Occupational Health Service area, there is not a high incidence of occupational disease in our processes.
Our employees are invited to carry out specific monitoring exams every six months and/or annually, based on the identified risks.
Based on the health profile of our workforce, we offer employees health programs, such as:
_ Program for the Control of Chronic Non-Communicable Diseases (CNCD);
_ Mental Health Program;
_ Labor Potential Restoration Program (PRPL)
_ Periodontal Disease Control Program
_ Healthy Diet Program
_ Physical Activity Promotion Program; and
_ Alcohol, Tobacco, and Drug Prevention Program.
Our program for promoting physical activity is available for all employees.
Besides, we developed ten health campaigns like the “Health Trail,” using our corporate portal and the health plan Portal to publish monthly interactive posts, with health guidelines related to relevant and prevalent aspects in the employee population , such as diet, physical activity, mental health, family health, breastfeeding, etc. Among the health events, “Health Week”, “Flu Vaccination Campaign” and “Healthy Longevity” were some of the highlights.
In conjunction with health authorities, we are aligned with the Public Vaccination Campaigns.
Through the Traveler’s Health Program, we guide and monitor employees on business trips to regions endemic for communicable diseases, who undergo prior medical and dental evaluations.
We are committed to the principle of respecting, raising awareness, and promoting Human Rights in our activities, and to act in accordance with the precepts of the Federal Constitution and with the international treaties and conventions ratified by the government, such as the International Charter of Human Rights and Declaration of Fundamental Principles and Rights in the International Labor Organization-ILO, as well as the institutional commitments assumed by the company such as the United Nations Global Compact; Women Empowerment Principles – UN Women; National Compact for the Eradication of Slave Labor – InPacto; Enterprise Racial Equality Initiative; Open Charter Enterprises for Human Rights; Gender and Race Pro-Equity Program; and Declaration of Corporate Commitment to Combat the Sexual Exploitation of Children and Adolescents.
The Human Rights Guidelines direct our operations regarding respect for Human Rights in all regions where we are present, and throughout the life cycle of our projects and operations.
Our human rights activities can be divided into three main fields:
Combating Discrimination and Promoting Diversity – Employees
We communicate our commitments to human rights to the internal public through our Code of Ethics and Conduct Guide (which all employees must sign a term of acknowledgment), the Social Responsibility Policy, the Human Resources Policy, and notes on our internal portal.
In the last five years, our corporate university has trained more than 3,300 employees with 14,570 man-hours trained in courses focused on human rights, with the aim of avoiding practices that can harm our company and society, with 274 employees trained in 2019 with a total of 1,233 man-hours. In addition, the topic is developed in the training course for new employees, when studying Conduct Management.
In our Ombudsman’s Office we have specific group for receiving and following up on workplace violence reports. As of 2019, moral and sexual harassment complaints involving company employees began to be investigated by this team, allowing specialized treatment in interactions with victims, the accused, and witnesses, as well as the analysis of the collected information. Cases that are considered valid are submitted to the Disciplinary Measures Committee to define accountability and consequences.
In relation to the right of free association, we have established in our code of ethics that we commit ourselves to recognize the right of free association of our employees, respecting and valuing their participation in unions, and not practicing any type of negative discrimination in relation to unionized employees.
In the HR policy, one of the guidelines is to implement sustainable agreements for our company through constructive dialogues, based on ethics and transparency, aiming to overcome differences in negotiations with employees and their representatives.
We have a Modern Slavery public statement, published in compliance with the UK Modern Slavery.
Modern Slavery Statement 2019.pdf Modern Slavery Statement 2019
Regarding Diversity, in 2018, we launched the Gender Equity Action Plan at the IV Petrobras Diversity Forum, attended by our CEO, representatives of the Executive Board and the Board of Directors. This plan seeks to have a positive impact on the work environment and the development and functional career of women, in addition to making commitments with the external environment. Some of the initiatives enabled the creation of gender indicators in the management succession selection process, communication campaigns that inspire women in STEM (Science, Technology, Engineering and Mathematics) careers, and specific training, such as diversity and prevention of workplace violence.
Mitigation and Prevention of Human Rights Violations – Communities
Maintaining a long-term community relationship based on dialogue and transparency is one of our commitments. To achieve this, we seek to know the dynamics of the communities that neighbor the places where we operate, their social players, and develop relationship plans, which the Company monitors and evaluates.
Petrobras’ actions seek to foster the development of collaborations to strengthen ties, promote networking, and generate mutual benefits, allowing for respect for the social, environmental, territorial, and cultural rights of the communities. Committees, meetings, lectures, visits, and investments in socioenvironmental programs and projects are promoted, aligned with the objectives of our business and contributing to the conservation of the environment and improvement of the living conditions of the communities where we operate.
For more information, see Communities.
Prevention of Human Rights Violations – Supply Chain
Prevention of Human Rights Violations – Supply Chain
Our commitment to human rights in the supply chain is expressed in our Guide to Ethical Conduct for Suppliers and in our Social Responsibility and Human Resources Policies.
These documents reinforce that our suppliers must promote dignified and safe working conditions for their employees and combat child and slave labor, in addition to promoting diversity, gender and racial equality and the inclusion of people with disabilities. Before signing a Contract with us, every supplier must complete and sign the Declaration of Compliance with the Guide to Ethical Conduct for Suppliers and our Social Responsibility Policy.
All our service contracts include a clause that requires service providers to refrain from using child labor and slave-like labor or degrading working conditions. Contracts for the construction and assembly of refining process units, and contracts for civil construction services, which are at greatest risk for human rights violations, there is a social responsibility clause in the contracts.
To encourage and recognize good practices from our suppliers in relation to gender equity, race equality and inclusion of people with disabilities, we have instituted specific awards for these initiatives within the Best Petrobras Suppliers Award.
Ethical Conduct Guide for Suppliers.pdfEthical Conduct Guide for Suppliers
We believe that creating and strengthening bonds of trust with the communities where we operate is important to promote a favorable environment for the development of our business.
Thus, we adopt standards and processes that guide our performance in Social Risk Management and Community Relationship in our investment projects and in our operations. These processes seek to prevent the violation of human rights in the communities where we operate and to strengthen bonds of trust with the communities around us.
We recognize that positive and negative social impacts and risks are inherent to activities in the oil and gas industry. Among the positive aspects, we can highlight the generation of revenue for states and municipalities, the generation of jobs, and the implementation of a large portfolio of socio-environmental projects. Negative impacts are generally linked to the process of exploration, production, refining and transportation of oil products. Some of these include: pollution, proximity to pipeline installations and industrial units, impacts on traffic, noise, and the risk of oil touching the coast.
We identify, analyze, and respond to social impacts related to the communities in our operations through the community relationship process. The diagnosis and analysis of the communities surrounding our operations are carried out by multidisciplinary teams based in the operations units, to recognize the local reality and direct actions related to the communities.
Using specific diagnostic tools, we identify the impacts and risks of changes caused by a specific action. In this process, municipal indicators are consulted, such as Municipal Human Development Index (HDI-M), Gini Index and Social Vulnerability Index, and also specific data from communities mapped in the territory, such as, social actors, traditional people groups and communities, conflicts, or any impacts and risks arising from our activities.
Once the information is gathered and systematized, we elaborate community relationship plans to provide answers to questions of the community surrounding the operational unit in question.
Currently, there are 23 community relationship plans, representing 96% of our operations.
In March 2020, we established a corporate approach to the issue of resettlement. We have established guidelines that apply to all our units regarding the removal and resettlement of individuals or communities affected by our projects or activities.
Guidelines For The Removal And Resettlement Of Communities.pdf Guidelines For The Removal And Resettlement Of Communities
In its relationship with indigenous peoples and traditional communities, Petrobras complies with the current legislation as National Policy for the Sustainable Development of Traditional Peoples and Communities and the Normative Instructions of the National Indian Foundation – FUNAI, the Palmares Cultural Foundation-FCP and the National Historical and Artistic Heritage Institute (IPHAN). Moreover our Corporate Resettlement Guideline states that indigenous peoples must be informed, in appropriate and accessible language, about projects that may occur on their land and have the opportunity to give or deny consent to a project before it starts. If the removal and resettlement of indigenous or quilombola communities is essential, it will be necessary to first carry out a free and informed consultation directed at these communities.
Social and Environmental Projects
Our social responsibility policy foresees support for social and environmental projects, contributing to the communities where we operate and, in an extended way, to society, aligned with the business objectives and helping conserve the environment and improve living conditions.
Our voluntary social and environmental investment is a tool to support the sustainability of our business. We develop socio-environmental solutions in relevant topics and territories where we operate, seeking to consolidate our relationship with stakeholders, generate technical and scientific information, and strengthen our reputation by disseminating our values.
Our socio-environmental investments contribute positively to communities located in the areas in which we operate, driving cultural, economic, social, and environmental changes that are linked to the Sustainable Development Goals (SDGs): (1) Poverty Eradication, (4) Quality Education, (5) Gender Equality, (6) Drinking Water and Sanitation, (8) Decent Work and Economic Growth and (10) Reducing Inequalities, (13) Action against Global Climate Change and (14) Life below Water.
In 2019, our Petrobras Socio-Environmental Program supported projects in the following areas: Education, Educational Sports, Child and Adolescent Rights, Biodiversity, Water, Forests and Climate.