Labour Practices

PTTEP is committed to respecting fundamental human rights by complying with all applicable legal requirements, cultures, customs and values in dealing with all of our stakeholders and avoiding any complicity in human rights abuses. Please see our Human Rights Policy which can be downloaded below in "Related Documents."

Labor Practice

PTTEP believes that human resources is an important factor that drives the organization towards success. PTTEP focuses on the development of systematic human resources management, treating employees equally, and encouraging employees to develop their professional knowledge and skills through our sophisticated competency management and performance management systems, as well as promoting their work-life balance. In addition, PTTEP’s employee engagement approach focuses on a two-way communication in order to incorporate employees’ feedback to continually improve our work process, work environment, and employees’ well-being.

PTTEP is a participant of the United Nations Global Compact (UNGC) and reports on the extent to which processes have been implemented,  the promotion of human rights and the changes in the stakeholders' ability to enjoy and exercise them. PTTEP supports the Universal Declaration of Human Rights and the fundamental rights set out in the International Labour Organization's Declaration on Fundamental Principles and Rights at Work. PTTEP strictly complies with labor laws in every country we operate. The Welfare Committee, which comprises of 22 employee representatives, representing 93% of employees from various work locations, and 7 employer representatives, was established to discuss compensation and benefits and labor rights issues on a monthly basis. In 2017, the Welfare Committee considered and discussed 66 issues related to compensation, benefits and career opportunities.

Human Capital Development

To increase the organization capability and accelerate the competency development of our staff for continuous expansion of the Company’s business domestically and internationally, PTTEP has developed and improved the capability development systems and processes by implementing the competency-based training and development, focusing on 70:20:10 development model (70% On-the-Job Training, 20% Coaching and Mentoring, 10% Formal Training). Training and development programs are provided to employees through the following channels.

  1. In-House and External Training: The Company provides in-house and external trainings, domestically and overseas, to employees and management at all levels. These trainings comprise a wide variety of courses including technical and functional training, Safety, Security, Health and Environment (SSHE) training, organizational knowledge training as well as other skills required to increase day-to-day work efficiency e.g. computer skills training, foreign language training, business administration and leadership skills training, etc.

  2. Long-term Training and Development Programs: Long-term training and development programs aim to prepare employees for roles and assignments in the Company’s current and future projects. The programs are generally provided to selected employees based on their Individual Development Plan (IDP) in 1 – 3 years. By this approach, the employees are required to undertake on-the-job training through assignments with the Company's projects or assets or be temporarily assigned to work with the Company’s business partners or services companies in Thailand and overseas.

  3. Master’s Degree Scholarship Programs for Employees: The Company provides scholarships to employees to help them pursue master’s degrees in world-class universities all over the world in the following fields.
    • Petroleum Geosciences
    • Petroleum Engineering
    • Engineering
    • Drilling and Well Engineering
    • Business Administration

 The Company also provides master’s degree scholarships for employees to study in Thailand’s reputable institutes as follows:

    • Business Administration (Executive), SASIN Graduate Institute of Business Administration of Chulalongkorn University
    • Petroleum Geoscience (International Program), Chulalongkorn University
    • Petroleum Geophysics (International Program), Chiang Mai University

Succession Planning

PTTEP has a systematic succession plan for vacant management positions resulting from retirement and reorganization in the next 5 years to support the Company’s business expansion domestically and internationally. The Career Review Board (CRB) Committee is authorized to select and appoint successors for management positions using PTTEP Management Success Profile of each business area (Asset Management, Business Development, Technical Support and Business Support) as screening criteria. These profiles comprise of Competency, Personal Attribute, Organization Knowledge and Experience required for target positions while Currently Estimated Potential (CEP) is also taken into consideration. Once the successors are identified, their individual short-term and long-term development plans will then be created with focus on technic and functional knowledge, managerial skills, personalities, and soft skills required in accordance with corporate values and organizational culture, to ensure that the successors are readily qualified for the target positions by time of requirement.

Talent Attraction and Retention

PTTEP is one of the highest compensation and best benefit providing companies, able to compete with any other organizations in Thailand. Its remuneration policy relies on 3 mechanisms as follows.

  1. In-house equality - The similarities in work type, responsibility and work condition are justified to be equality in reward offering.
  2. Inter-organizational equality - The annual adjustment of remuneration takes into account the rates employed by other oil and gas companies domestically.
  3. Incentive provision – Individual employee's performance in the previous year is evaluated before incorporated into the annual merit increase.

PTTEP also provides assistance to the employees through a number of projects such as housing assistance by contributing partly to the interest incurred from the housing loan. Other assistance includes scholarships for employee development to enhance corporate potential, preparing the retiring employees for future retirement, and the Employee Joint Investment Program (EJIP). The EJIP, from 2012-2018, is intended to encourage the employees to co-invest with PTTEP by purchasing the company's shares at the market price so that the employees are motivated to work efficiently and effectively. The company is proud to run business with fairness, encouraging all the employees to grow together with the company.

Human Rights

As part of our core principles, PTTEP is committed to respecting fundamental human rights which by complying with all applicable legal requirements, cultures, customs and values in dealing with all of our stakeholders and avoiding any complicity in human rights abuses both in our operations and throughout our value chain. We expect everyone who works for or on behalf of PTTEP adopt our core principle and take responsibility to ensure that the expectations set out in our commitment are fully met in all aspects of our business.

Human Rights Commitment
 
PTTEP Good Corporate Governance and Business Ethics, CSR Framework and Sustainability philosophy are founded on the principles of the United Nations Guiding Principles on Business and Human Rights (UNGP) and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work and is a signatory to the United Nations Global Compact (UNGC). PTTEP has been a UNGC member since 2011 and our Communication on Progress (COP) has met the UNGC Advanced Level criteria since 2015. UNGC aims to ensure that businesses positively contribute to society, both economically and socially. This is achieved through its ten overarching principles which largely fall into four categories of human rights (Principles 1-2), labor (Principles 3-6), environment and anti-corruption. PTTEP also reports our progress against the ten principles in the Communication on Progress (COP). Please visit the UNGC website for more information. In addition, PTTEP also has a Human Rights Policy which adopts the Universal Declaration of Human Rights and applies the Ruggie Framework to our company’s business. It is incumbent on all company employees to comply with PTTEP Human Rights policy and seek to work with suppliers and business partners who share our commitment to human rights. 

Network of Responsible Operation

Our Business Ethics & Code of Conducts states that PTTEP Group is committed to operating its business without causing any undue negative impacts on environment, society and with respect for the human rights and interests of our stakeholders. As a responsible operator, we’re committed to ensuring that all our employees and own operations implement human rights policy as well as continuously monitor, influence and improve the business practices of our own operations and those of our suppliers and business partners.

Partnerships
In PTTEP’s business dealings, we expect our partners to adhere to business principles consistent with our own. Permitted by rights in the Joint Operating Agreement (JOA), PTTEP works closely with a number of key global partners to share learnings, good practice and manage challenges on human rights issues. Collaboration, partnership and transparency are critical factors to identifying human right risks, taking appropriate actions and building the broad-based coalitions needed for sustained progress of our Joint Venture business.

Responsible Sourcing
PTTEP’s goal is to achieve safe and sustainable operations, minimize our environmental and social impacts. To achieve this we are committed to working with Suppliers and Contractors who sign up to our values as communicated in PTTEP Supplier Code of Conduct. PTTEP has established and maintained procedures to evaluate and select suppliers and contractors based on our core values, including human rights. We carry out risk-based due diligence assessment on critical suppliers prior to contract award and periodically review that suppliers are operating to agreed standards during the contract delivery especially on those who are working on higher risk activities.


Approach

To fully comply with our Human Rights Policy which respects human rights and avoids any complicity in human rights abuses, PTTEP developed the human rights management system which involves (1) identification of human rights risk through due diligence process (2) development of mitigation measures in response to medium/high human rights risk and (3) integrate action in business operation (4) monitoring performance and report to stakeholder. Actions and procedures we undertake to meet our commitment are:

Exercise Due Diligence

PTTEP Human Rights Management System Guideline defines requirements for PTTEP related human rights issues covering 5 key areas: employee, community, supply chain, environment and security. The human rights issues related to the vulnerable groups including children, minorities (e.g. indigenous peoples), migrant workers and the environment are also incorporated into these key issues. Risk ratings are assessed on two factors which are likelihood and impact in line with the PTT group. We conduct our risk assessment in alignment with the Group Framework, and IPIECA guidance on Human Rights Due Diligence.

Further details on Group Risk Assessment Framework can be accessed through PTT Human Rights page

Management Results

PTTEP has implemented the human rights risk assessment process since 2014 with aims to identify and mitigate human rights risks associated directly or indirectly with all of our activities. The Human Rights Risk Register incorporates all of the human rights related risks in key activities for both on-shore and off-shore assets such as seismic survey, exploration and appraisal drilling, development and production, employment practices, supply chain management, security management, and investment (M&A).

Through 2017 human rights risk assessment process, we identified the success of relocation program at one of the Joint Venture asset with highest priority for human rights risk management. To ensure effective management, PTTEP has worked closely with the operator in developing the resettlement program in line with international standards and guidelines e.g. The Equator Principles and the IFC Performance Standards, adopting practices designed to minimize the impact to livelihood of people living in the project's area of influence. The Resettlement program is currently under implementation by the operator with comprehensive consultation in combination with community development program to enable communities to restore and, in many cases, improve their livelihoods and standard of living. Mozambique Area 1 Project is the only project that requires resettlement for land access, representing 3% (1 out of 36 projects) of total operational and JV sites. This project, is part of the total 100% of our sites which has the highest human rights risk, and already has mitigation plans in place.

Please see our Human Rights Policy which can be downloaded below.