First Corporate social agreement signed in Kazakhstan

February 28, 2020, the signing ceremony of the Corporate social agreements on cooperation and interaction between the Federation of Trade Unions of the Republic of Kazakhstan and the Consortium “Karachaganak Petroleum Operating B. V. was held at the Trade Unions House in Nur-Sultan city.

The agreement was signed by the acting Chairman of the FTURK Satybaldy Dauletalin and the General Director of the KPO Edwin Blom.

The corporate social agreement is the basic document for the development of social partnership between the largest company and the National Trade Union Association. Such as this agreement is signed for the first time in the history of independent Kazakhstan noted acting chair of the FTURK.

«Today corporate social responsibility of business is a global trend. It is enshrined in the UN Global agreement. We consider that corporate social responsibility is another tool to protect the employees’ labor rights. I would like to note the special significance of the agreement signed today for the development of social and labor relations in our country and emphasize that we will always support the efforts of business in implementing the principles of corporate social responsibility. This agreement will be a new opportunity to strengthen cooperation in the social and labor sphere, in the development of industrial agreements and collective agreements» noted Satybaldy Dauletalin.
He expressed special gratitude to the initiator of this agreement ex-chairman of the FTURK Yeraly Tugzhanov.

Satybaldy Dauletalin also expressed gratitude to Mr. Edwin Blom for supporting the initiative of the Federation of Trade Unions and contributing to the development of the ideology of corporate and social responsibility, and noted the effectiveness of the collective agreement concluded in KPO.

“It defines – indexation of wages, payment of sick leave in an increased amount, providing material support to the families with many children, payment for sanatorium resort treatment, agreements of acts of the employer with trade Union organizations, and other. Signing of this agreement will encourage other large employers to support the initiative of FTURK and will serve as an incentive to sign new corporate social agreements and create more beneficial conditions for employees» noted Mr. Dauletalin.

For his part, General Director of KPO Edwin Blom expressed his gratitude to the Federation of Trade Unions of the Republic of Kazakhstan.

“I am honored that KPO was chosen as the first company to sign a corporate social agreement. Our company has been working for many years with three trade Union organizations that protect the interests of 4 thousand employees of KPO and 15 thousand employees of the company’s contractors. It is no coincidence that collective agreement, which signed between KPO and these trade Union organizations, was recognized as one of the most successful agreements in Kazakhstan this year, “said Edwin Blom.

According to him, KPO pays special attention to the issues of nationalization of staff. Today, the company is implementing the fourth program of staff nationalization, in which the content of local staff in engineering and professional positions has reached 96%, and 76% of Kazakhstan’s staff in the management team.

The company has already spent 225 million US dollars to improve the skills of Kazakhstan’s KPO employees on specially organized training.

“I am sure that the signing of this agreement will make a great contribution on improving social conditions for our employees. This gives us the opportunity to create our common vision and structure of how to continue doing business with the help of a collective agreement. We will continue working to improve our partnership with our three trade unions and with the FTURK and this will be based on our common goals, which are aimed to leave a sustainable legacy for the future generation of Kazakhstan” concluded general director of KPO Edwin Blom.

The corporate social agreement is the basic document for the development of social partnership between the largest company and the National Trade Union Association.

The parties intended to strengthen cooperation in the field of observance and protection of social and labor rights of employees, creating decent working conditions, ensuring labor protection, health and environmental safety of employees by the cooperation.

Prevention measures and prevention of labor conflicts, and maintain social stability in society will be provided among the priority areas of cooperation.

P.S: The Federation of Trade Unions of the Republic of Kazakhstan is the largest public organization in the country with a total of 2 million members. FTURK consists of 17 territorial and 24 branch trade unions. FTURK activities are aimed for protecting the social and labor rights of employees based on the principles of social partnership. Today we have 120 thousand collective agreements in Kazakhstan, which are covering 45 percent of whole enterprises. At 98 percent of these enterprises, there are established and functioning industrial trade unions.

Karachaganak Petroleum Operating B. V. is one of the world’s largest oil and gas condensates of KarachaganaIk mines in the North-West of Kazakhstan, covering an area of more than 280 square kilometers. The company is a leader in the gas industry of Kazakhstan.

In 2018, KPO reached a record production level of 148 million barrels of oil equivalent of stabilized and unstabilized liquid hydrocarbons, crued and fuel gas. Being social responsible company KPO during its production activity seeks to ensure the effective use of the potential of Karachaganak in order to achieve maximum social and economic benefits for the local people of the republic of Kazakhstan.

For more information please visit website of FTURK: