Employees

The following programs and projects are among the initiatives common to PGE Group that are being implemented in 2022:

A forum has been created for HRBPs to share knowledge, good practices and experiences. Meetings are organised periodically to ensure equal access to knowledge and information exchange. In addition, work has begun on the preparation of a list of good HRBP practices, which will constitute a set of tools and solutions used in individual companies.

• consolidating selected areas of support. In 2022, the human capital management area was consolidated in the Warsaw companies of PGE Group. The corporate centre took over the handling of HR processes for the companies: PGE Baltica and PGE Systemy SA. Consolidation of the HCM areas allows for the implementation of common HR standards and tools.

PGE Group bases the building of its market advantage and being the leader of sustainable transition on an efficient and effective organisation, taking into account diversity. The implementation of activities, especially those aimed at employees and their functioning in the company, is driven by the company’s values of partnership, development and responsibility. Hence the concern for the highest standards that go beyond compliance with generally applicable legal norms, such as the right to rest, minimum wages, respect for legislation on the non-employment of children and the ban on the employment of minors.

The aim of the diversity policy is to create a working environment that is open to different points of view, multiculturalism and diversity of ways of thinking, based on cooperation, mutual support, showing respect and ensuring fair and equal treatment, particularly in areas:

Diversity enables the exchange of knowledge, views and perspectives, the development of talents and complementary development areas, leading to effective synergies, including the development of solutions that are born out of diversity.

The diversity policy also sets out ways to monitor the actions taken to implement it. One of the indicators is the ratio of men’s remuneration to women’s remuneration by position held. At PGE Group, this ratio is as follows:

In the case of PGE SA, the pay gap is lower than at Group level and women directors even earn more on average than men in the same positions:

Identifying pay gaps allows initiatives to be taken to minimise them. PGE Group does not take into account an employee’s gender when making pay decisions, but only their skills and qualifications for the tasks at hand.

Detailed terms and conditions of employment and remuneration are determined in accordance with the regulations in force at individual employers of PGE Group and the generally applicable labour law and in accordance with the legal system (including the freedom to choose an occupation and place of work provided for in the Constitution of the Republic of Poland or the regulations on the employment of young people).

These principles indicate the highest standards of human capital management across the Group. They relate, among other things, to the issue of unification of remuneration principles in relation to the business needs of individual business segments and areas, as well as monitoring the competitiveness of total remuneration in relation to the external market and internal benchmarks, with care for its link to individual, team and Group-wide performance. Remuneration tables are created assuming a reference value and a range of minimum and maximum salaries with respect for the law, including in particular the minimum wage.

Through the implementation of the anti-bullying procedure, the responsibilities of all employee groups from board members to managers, employees and representatives of the social side have been defined. The key objective of implementing the procedure is to prevent the occurrence of any form of discrimination by raising awareness of the problem and the consequences of unwanted actions by:

• responsibility of management to counter undesirable developments,
• fostering the right principles of cooperation, mutual assistance and respect for others.

PGE Group employers periodically conduct mandatory prevention training. The anti-bullying and discrimination procedure also directs a clear message to all employees about expected attitudes and behaviour towards undesirable phenomena:

• building an organisational culture geared towards a safe working environment,
• supporting staff in situations of adverse reaction,
• building a better working atmosphere based on cooperation and commitment,
• reinforcing values in line with the Group’s Code.

The procedure describes the scheme of conduct in the event of an adverse event in the form of mobbing and or discrimination in PGE Group.

Reporting and the manner of cooperation in counteracting bullying and discrimination in PGE Group are defined by the Guidelines for Cooperation of Employers in PGE Group in relation to Inappropriate Behaviour, in force since 2021. This is an internal document with organisational solutions.

A formal confirmation of this is the Health and Safety Policy, which was adopted by the PGE SA Management Board in 2020. It sets out the framework for operations and setting the organisation’s objectives pertaining to occupational health and safety management and considers the occupational health and safety area as a key value for the organisation’s development.

It also spells out long-term strategic initiatives pertaining to the occupational health and safety area and the basic rules for their implementation. The OHS Policy was developed in cooperation with representatives of all business segments and was consulted with the entire PGE Group.

Notes and comments on its draft from the representatives of various subsidiaries and from trade union representatives had a positive impact on its final content.

The occupational health and safety policy’s scope includes PGE Group companies. On this basis, the declarations of the management boards are updated to take account of the specific nature of work in individual companies. PGE Group’s Occupational Health and Safety Policy reflects the requirements specified in the latest standard for Occupational Health and Safety management systems: ISO 45001 and the guidelines included in the Labour Code.

As part of the update of the mega-process map, process 3.8.8 Health and Safety Management was implemented in PGE Group in 2022. The objective of the process is to ensure and maintain a high standard of working conditions and to protect the health and life of employees, contractors and visitors.

OHS management and detailed solutions at PGE Group are currently embedded on a local level within the activities of individual companies. Best Practices are replicated.

In order to ensure sharing of experience and mutual learning from incidents, an IT tool has been implemented to collect information on health and safety incidents across PGE Group, including occupational accidents and high-potential incidents.

The knowledge gained in this way is capitalised in the form of additional actions in the area of occupational health and safety, which are taken throughout the Group by means of a Framework Plan for Occupational Health and Safety Improvement or in the form of alerts to the organisation in order to take pre-emptive measures in other locations.

In 2022, the Health and Safety Improvement Framework Plan for PGE Group companies included tasks in areas such as:

7 PGE Group companies (PGE GiEK, PGE Energia Ciepła, PGE Toruń, ZEW Kogeneracja SA, EC Zielona Góra, Przedsiębiorstwo Wulkanizacji Taśm i Produkcji Wyrobów Gumowych BESTGUM POLSKA and RAMB) in which 18,965 employees worked as at December 31, 2022, representing approx. 50% of all employees (FTEs), have a certified OHS management system based on the PN-ISO 45001 standard.

Occupational health and safety issues are a regular item in top management meetings (e.g. management board meetings, branch management meetings). Topics include the discussion of health and safety incidents, working conditions and other health and safety issues for employees and contractors working at the site or company. Expectations for ensuring the health and safety of their employees are disclosed in the Code of Conduct for Business Partners of Group companies.

Business partners are expected to provide safe workplaces, comply with all relevant standards and health and safety regulations. In particular – compliance with the law in terms of providing workplace instruction, taking into account information on health and safety conditions and requirements, providing appropriate protective measures and implementing appropriate health and safety training.

In 2022, PGE Energia Ciepła organised the fourth edition of a workshop for contractors. It was attended by more than 500 company representatives, who were introduced to PGE Group’s internal procedures and the purchasing portals through which PGE Energia Ciepła’s tendering procedures are conducted.

As part of the meeting, the Health and Safety requirements for contractors in the companies of the District Heating segment were discussed. The most common health and safety irregularities committed by contractors’ employees, identified during inspections carried out by the company’s employees, were presented, and it was indicated how the work in question should be carried out correctly.

Occupational risk assessment for workplaces is the foundation of health and safety management at PGE Group companies. This process is adapted to the risks and specifics of the work of individual companies.

It is described in internal normative acts. A documented occupational risk assessment is provided for all workplaces. Depending on the needs, various methods of occupational risk assessment are used, such as

The power equipment used in the companies and branches has operating instructions that contain, inter alia, information on identifying hazards to human health and life associated with the operation of the power equipment or group of equipment, and rules of conduct to eliminate the identified hazards.

Where required, job-specific manuals and other instructions describing the safe performance of work specify the activities to be performed prior to commencement of work, the rules and methods of safe performance of work, activities to be performed after completion of the work, and the rules to be followed in emergency situations which pose a risk to the life or health of employees.

In the thermal power plants and the Rybnik power plant, risk assessments are additionally carried out for tasks as part of the work orders and permits system; in 2022, more than 27,000 such analyses were carried out.

Consultations with employees on health and safety issues are carried out at individual companies mainly through the established Health and Safety Committees. Efforts are made to have an equal number of employee and employer representatives and an occupational doctor. Committee meetings are held at least quarterly during working hours.

Over 120 meetings were held in PGE Group companies in 2022. The task of the Occupational Health and Safety Committee is to consult on occupational health and safety issues, in particular: reviewing working conditions, periodic assessment of the state of occupational health and safety, issuing opinions on measures taken by the company to prevent accidents at work and occupational diseases, formulating conclusions on the improvement of working conditions and cooperating with the company in performing its obligations in the area of occupational health and safety.

In connection with the performance of these tasks, the Committee may use the expertise or opinions of specialists from outside the workplace in cases agreed with the company and at the company’s expense.

Prior to starting work, all employees receive initial health and safety training consisting of general and job-specific instruction. Depending on their position, employees undergo periodic OSH training.

The period ranges from 1 year for positions which are exposed to particular risks to 6 years for administrative and office positions. Detailed training programs are adapted to groups of positions.

Employees performing work on power equipment undergo mandatory examinations which end in obtaining a certificate confirming their competence to perform specific work. PGE Group companies have 35 qualification commissions verifying the qualifications of persons involved in the operation of equipment, installations and networks appointed by the President of the Energy Regulatory Office.

Contractors working on the premises of PGE Group companies are provided with information on, inter alia, threats to health and life occurring in the workplace, rules of conduct in the event of accidents and other situations threatening the health and life of employees, protective and preventive measures taken to eliminate or reduce risks.

Where justified, an introductory OSH training for contractors is also carried out. The 2023 Health and Safety Improvement Plan provides for quality checks on the implementation of these duties.

Operational work on power equipment in the areas of operation, maintenance, overhaul, assembly and control and measurement shall be carried out in accordance with the operating instructions for power equipment or groups of power equipment, which contain, among other things, the characteristics of the equipment, a description of start-up, operation during operation and shutdown, or deadlines for inspections, tests and measurements.

Additionally, work on power equipment is carried out in accordance with a manual for the organisation of safe work. This document describes in detail how to organise this work, specifies the requirements for functional persons, the conditions for supervising the work or the rules for the circulation of written orders, etc. Individual PGE Group companies are responsible for the provision of these documents.

Operational work that creates the possibility of particular danger to human health or life is performed on the basis of a written order. The written order is also often used in situations where this formula is advisable for safety reasons, in particular when directing contractors’ employees to work.

PGE Group attaches great importance to developing initiatives related to improving the well-being and health of its employees. PGE Group employees are provided with private medical care, which also includes occupational medicine. As part of the private medical care, they can undergo preliminary, check-ups and periodic examinations.

PGE respects its employees’ right to privacy; therefore information on health condition is not used when making HR and employment decisions.

The Centre focuses on the internal customer and supports the creation of an efficient and effective organisation. It is based on the synergy of skills, knowledge and resources of the areas of recruitment, development, HR projects, as well as internal trainers who, through their knowledge of the organisation and in-depth research of needs, are able to ensure the effectiveness of development activities.

In 2022, PGE Group Knowledge and Development Centre prepared, among other things, a series of training courses for employees as part of the 'Development Network’ program, dedicated to all employees who want to improve their soft skills.

The Centre also organised a series of Lunch&Learn educational and training meetings dedicated to various topics related to the company and its environment. In 2022, nine sessions were held, including one dedicated to sustainability and ESG issues. The Centre’s staff also organised language classes, training on the energy market or first aid premedicine.

The centre is also the primary provider of training in PGE Group, and additional health and safety training is provided based on the competencies built in the Group.

2022 was the year to emerge from the pandemic period and return to normal functioning in the area of development activities. The individual employers within PGE Group have largely returned to organising face-to-face training and meetings.

In addition, Customer Service Offices employees were able to benefit from additional support in the form of one-to-one coaching. In July 2022, the 'Academy of Expert Trainers’ project was launched. Its main objective was to identify and train a group of people with the expertise and aptitude to act as coaches, experts within the organisation. For employees, this is an opportunity to take advantage of an additional development path within the organisation and broaden their professional competences.

PGE Obrót employees also benefited from internal workshops: „Communication and teamwork”, the aim of which was to integrate participants and develop principles for effective communication and cooperation in the teams they form. The trainings were based on specially prepared, original programs, team games and interactive exercises.

At PGE Baltica, an important element of employee development is the implementation of good knowledge-sharing practices. The implementation of tasks takes place in a system: „learn, perform, teach others”. Employees familiarise their teams with the topics after participating in external training.

Meetings include elements of discussion. ToolBox Talks is another initiative consisting of weekly meetings between board members and employees. Important topics on building trust within the team, dealing with stress at work, as well as business psychology are discussed at these meetings.

The process of acquiring and sharing knowledge also takes place through cooperation on specific projects. On the construction of offshore wind farms, PGE Baltica is cooperating with a foreign partner – Ørsted. The knowledge acquired in this project will be used in subsequent offshore wind farm construction projects.

Employees in the District Heating segment develop their potential by participating in internal and external training. They also do this by participating in the various projects they carry out as part of the segment’s broad activities. Solving current problems during long-term projects is seen by employees as the fastest form of professional development. This type of involvement stimulates creativity, opens up new opportunities to use acquired skills and create new areas of knowledge within the organisation.

Employees also make use of industry newsletters made available electronically, such as a review of the national press, foreign press from the energy market and related markets.

A manager’s influence on the effectiveness of his or her team at work, but also on the development, commitment and maintenance of motivation levels, is very high. Therefore, at PGE Group, a great deal of effort is put into their development of the necessary skills and the shaping of attitudes. This is crucial given the dynamically changing labour market, volatile environment and needs. Flagship initiatives include two programs:

A pilot training program for middle and senior managers has been launched at PGE Dystrybucja: „Effective management in distributed structures effectiveness – authority – cooperation”.

Conflicts in an organisation are a common phenomenon, but if unresolved they are a serious problem and affect the functioning and image of the whole organisation. In the case of disputes, a quick response is crucial. Increasing conflict translates into stress and disrupts effective interpersonal communication, thereby reducing the quality of work.

Mediation proceedings within an organisation are intended for anyone who wishes to resolve a difficult situation amicably, ending the conflict in order to work in an atmosphere of respect and with respect for the other person. Mediation should be undertaken in any case in which both parties agree to participate – with the exception of cases that are dealt with in accordance with procedures for dealing with bullying, discrimination and inappropriate behaviour, and cases with criminal offences that should be reported to law enforcement.

At PGE Group, mediation is sought to be the primary formal means of resolving conflicts in employee-director, employee-employee and employee-employer relationships.

At PGE Group, dialogue with employees is an important element of building employee engagement. Solutions that build the company’s organisational culture and improve the well-being of employees are introduced on the basis of their opinions and diagnosed needs.

The tools of such dialogue include the „Employee Opinion Survey” and the survey of leadership competences of managers: „Leader Profile.” Through its cyclical activities, PGE obtains opinions from a large number of employees.

Due to the very positive reception of the Employee Opinion Survey organised in the companies PGE SA, PGE Systemy, PGE Energia Ciepła, PGE Baltica and the perceived benefits, more companies have declared their intention to join this initiative in 2023.

Through the statements of a random sample of employees, the broader context behind the results was identified and areas for improvement were more precisely pinpointed.

In PGE SA, for example, communication tools were developed and communication rules were defined to meet the needs of employees in individual units, changes were made to office equipment or renovations were carried out in designated areas.

Numerous training courses and workshops were held, including those aimed at clarifying or improving individual organisational processes. The development offering was also extended.

Areas assessed by subordinate managers include: communication, building relationships, motivating and building engagement, developing employees and achieving results.

The information obtained was used to further develop team management skills among the company’s management staff. Managers received individual feedback reports on their level of managerial competence.

As part of the openness and discussion with employees, there are also regular meetings between the employer and representatives of trade unions and the works council to exchange information on current activities and provide a space to discuss the employer’s situation and employees’ needs.

Last year, a total of more than 920 materials were published on PGE Group’s Intranet. 49 editions of the newsletter were delivered to employee inboxes. 10 online editions of the employee magazine „Under the Umbrella” were also published. An important development in 2022 was the introduction of a mobile app, which makes it possible to read articles from 'Pod Parasol’ on any phone with internet access.

This allows PGE Group’s corporate magazine to effectively reach an even wider range of employees, especially those who do not work in office positions. The year 2022 will also see the return, after the hiatus caused by the COVID-19 pandemic, to face-to-face meetings between management and employees on the occasion of, among other things, Energy Day.

This objective is pursued through online surveys and special e-mail boxes to which employees can send questions related to HR matters or the company’s strategy and ongoing projects.

Obtaining feedback from employees is an important element of internal communication throughout the organisation. The area of internal communication is also included in the annual Employee Opinion Survey, which is conducted by an independent research company under the supervision of the Human Capital Management Unit at PGE SA.

They can also share ideas and exchange observations on internal blogs focused on ecology, green energy and conscious consumer choices.

A meeting of the communication and marketing area is held at least once a year, attended by internal communication representatives from all PGE Group companies, in order to agree on the main lines of action and the most important objectives to be pursued, as well as to summarise the initiatives to date and their effectiveness.

At PGE Group Employers – as at December 31, 2022 – there are a total of 127 different trade union organisations. There are two trade unions operating in the Corporate Centre – Inter-Union Organisation No. 2987 of the NSZZ „Solidarność” and the Inter-Union Organisation of the Trade Union of Employees of Polska Grupa Energetyczna.

As at December 31, 2022, more than 25,000 employees were affiliated with trade union organisations operating at PGE Group employers. Trade unionisation at PGE Group is 65.8%.

Cooperation with trade unions since 1 January 2016 is regulated by the procedure: „Corporate Rules of Social Relations at PGE Group.” The Corporate Centre, companies and employers are obliged to build social relations, not only in accordance with generally applicable laws and applicable acts of internal collective labour law, but also in accordance with this procedure. The document defines the principles and model for conducting social dialogue between the Corporate Centre, companies, employers and social partners. Its main objective is to ensure social peace and implement the Group’s strategy by defining, coordinating and supervising the area of social dialogue at all levels of the organisational structure.

Thanks to the introduction of uniform rules in the area of social dialogue, the reporting process has been systematised, among other things, so that the Corporate Centre has up-to-date data to enable an ongoing diagnosis of the social situation and the mitigation of potential risks.

The basic level of cooperation between the social partners, according to the Trade Union Act, is the branch or company-employer. This is where the processes that are closest to the employees, such as health and safety at work, social issues, shaping their working conditions and wages, are implemented.

Another level of interaction is the supra-company forum of individual segments (PGE Group companies), where topics common to all employers are discussed. Social dialogue at this level takes place between the management boards of the companies and the trade union platforms, which bring together trade unions operating in individual workplaces in the segment that have converging industry interests.

The rules of cooperation in this case are usually regulated in a dedicated agreement or cooperation agreement between the social side, company managements and employers.

Relations with the trade unions are dominated by the principle of company dialogue, with talks moving to a higher level when attempts to reach an agreement at employer or company level do not work.

PGE SA and some employers in PGE Group are also participants in the sectoral social dialogue, which is conducted, among others, on the forum of tripartite teams (the Tripartite Team for the Lignite Industry and the Tripartite Team for the Energy Industry).

In accordance with its business strategy, PGE Group’s energy transition involves new investments, new technologies in electricity generation, but also a higher demand for new competences and professional qualifications of employees. The offshore wind energy sector in Poland is a completely new energy sector, the development of which requires a huge commitment, a specific strategic perspective and, most importantly, new knowledge and skills.

PGE Baltica is the company in PGE Group responsible for the development of offshore wind investments. It performs the function of a competence centre and faces a big challenge connected with the implementation of offshore investments, which are the basis for the energy transformation in Poland, therefore the company pays special attention to the process of recruitment, adaptation and development of employees. The recruitment process is carried out in a transparent manner with the highest recruitment standards.

When it comes to recruiting staff for the company’s own wind farm and PV maintenance, the company focuses primarily on candidates from outside the industry who have a technical background and/or maintenance experience and live in the vicinity of the facilities. Any new hire from outside the wind industry is first directed to accredited GWO Basic Safety Training onshore as soon as they are hired.

The new employee is then directed to training courses that provide them with the necessary qualifications and licences – SEP (Association of Polish Power Engineers) and UDT (Office of Technical Inspection) – required to work safely on the job.

PGE GiEK SA, implementing the project to establish the National Energy Security Agency, which is an important element of the transformation of the energy sector, in 2022 carried out intensive activities aimed at building a new model of human capital management both in the planned future headquarters of the new entity, as well as future branches.

To this end, HR processes were identified, standardised and made more specific as part of the development of a new process architecture, followed by the drafting of the most relevant procedures and instructions for the HR area. An initial optimal level of human resources was identified by defining the necessary level of staffing and planned personnel costs, and a model for comprehensive reporting in the area of human resources and HR analytics was designed.

The human capital management policy of the Heat segment focuses on driving the company’s transformation towards low-carbon heat production through the acquisition, development, retraining and retention of employee competences.

The aim of the measures taken is to broadly support employees and managers in shaping an internal environment that is conducive to dialogue, working in partnership, implementing change and ensuring the long-term development of the organisation.

PGE Energia Ciepła, in cooperation with secondary schools with a technical profile in the cities where the company’s assets are located, is running the 'Energy Career’ project. Vocational education is the area of education that, alongside higher education, has the greatest impact on the preparation of modern human resources for the energy industry.

Therefore, the aim of the 'Energy Career’ project is to work directly with schools and young people. It is the result of an analysis of the changes taking place in the Polish economy, the labour market and the employment structure at the company’s production facilities. A key factor in these changes is the retirement of highly qualified staff at the same time as increasing demand for industry professionals.

PGE Energia Ciepła is cooperating with 17 schools as part of the 'Energy Career’ project.

PGE Dystrybucja has been cooperating with 20 vocational schools in the company’s area of operation for several years. Within the framework of signed cooperation agreements, meetings with young people in the field, study meetings and professional excursions were conducted.

For years, PGE Górnictwo i Energetyka Konwencjonalna has been involved in the 'PGE Patronage Classes Program’, which is a project to rebuild vocational education in Poland and aims to educate high-quality human resources that meet the needs of the Polish economy, including the energy sector. PGE GiEK’s patronage classes were established in 2018/2019 and train, among others, future electricians, automation technicians, mechanics and mechatronics technicians. The program covered establishments providing education in professions in line with PGE GiEK’s business profile. Currently, approx. 540 students are being educated in cooperation with PGE GiEK.

PGE GiEK also cooperates with 17 universities. The scientific and technical cooperation allows for the implementation of scientific projects that are important for the company, the exchange of experience, the solution of problems of a theoretical nature and the practical use of the scientific potential of the universities.

PGE Group is proactive in giving opportunities and places of employment to young talents and in developing potential in a group of students. This is confirmed by PGE Group’s participation in the one-year internship program „Energy for the Future”, carried out under the auspices of the Ministry of Climate and Environment in cooperation with energy companies.