8

Our people

Our people are of utmost importance in implementing our strategy and achieving our objectives. We focus on supporting them and developing their skills so that they can successfully work and help us to achieve success.

People are our greatest value. Without their dedication and work we would not be able to achieve our objectives and continue our successful journey. The contribution of every employee is priceless and we are sincerely grateful for it to everyone.

As an employer, our aim is to ensure a safe and motivating working environment for our people. We wish for our employees to feel valued and esteemed at every step. People’s wellbeing and satisfaction are of primary importance for us, because we know that a happy and satisfied employee is the best recommender of the employer.

We are committed to offering people the best conditions and opportunities for development. Together we can build a strong and closely-knit team where everyone feels important and valuable.

Eve Rei

Human Resources Director

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We promote cooperation between the Group and the employees on the basis of the principle of partnership, maintaining an optimal balance of the parties’ interests in the framework of the Group’s objectives and the obligations assumed. VKG aims to offer its people stability and a sense of security with regard to the future, but achieving this is a challenge, considering the volatility of the oil market and the fickle policies of the state.


Viru Keemia Grupp is one of the largest employers in Ida-Viru County. In addition to its own 1,560 employees, the Group’s wellbeing influences the wellbeing of another several thousand people in the region, who are related to the Group via family members or the employees and family members of cooperation partners and suppliers.



The focal points of our personnel policy


  • We value
  • We recognise
  • We support the team spirit
  • We facilitate and develop future employees
  • We create a safe working environment

The most important principles of the personnel policy



Safety

We place the safety of employees, local residents and the environment above any economic, technical or other considerations. We ensure safe working conditions for our employees and demand the same from our partners.


Respect and no discrimination

Relationships in the Group are based on mutual respect and trust – we value every employee and listen to their opinions. The diversity of competences, viewpoints and experience aimed at our joint objective allows us to solve complex tasks.


Efficiency

We strive to be as efficient as possible in our activities and recruit professionals who are the best in their field, highly motivated and determined.


Honesty

We comply with high ethical standards and are honest towards our employees.


Inclusion

We believe that the achievement of our established ambitious objectives is only possible through the joint efforts and concerted activities of the Group’s employees. We invite our employees to participate in corporate processes and to actively provide feedback.



Code of Ethics


The Code of Ethics and the Principles of Operation form a master document which regulates our activities and conduct and we expect all of our employees and members of the Management Board and Supervisory Board as well as our cooperation partners to adhere to it. Not only our reputation, but also our sustainability depends on our attitude to our colleagues and the fulfilment of our work tasks. Ethical behaviour and attitudes are the basis for reliable partnership and our image as an employer.

The ethnic, gender, age and language diversity of our employees set great demands for us with regard to equal treatment, inclusion and exchange of information. The uniform rules of conduct, corporate values and ethical conduct guidelines described in the personnel policy ensure honest and fair employment relationships and the loyalty of employees.

In 2023, we received three complaints, all related to verbal offence between colleagues. We talked to the parties and they apologised and made up. Unbiased representatives of the Group handle the determination of the circumstances of incidents, the provision of feedback and the development and implementation of preventive measures. All the violations of the standards of ethics are reported to the management.

Eetikakoodeks
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About our employees


The success of Viru Keemia Grupp is based on competent and motivated employees who do their work with dedication, are loyal to the company, and jointly create value.


As at the end of 2022, the Group employed 1,193 men and 367 women. The proportion of male employees is significantly higher due to the physical nature of work. The average age of employees is 45 years, with nearly 900 employees in the age group of 35–54. As at the end of 2023, the Group employed 1,502 employees, including 1,184 men and 353 women.

The average length of service of the Group’s employees is 10 years. The Group has 129 employees whose length of service is more than 25 years and 21 of them have been working at the Group for over 40 years. There were no great fluctuations in personnel during the reporting period.

The number of employees by companies during the reporting period, as at 31 December 2022 and 31 December 2023


Several structural changes took place in the Group in 2023, the greatest being the restructuring of Viru RMT, where employees were transferred from Viru RMT to Viru Keemia Grupp, VKG Oil and VKG Logistika.


The age structure of the Group’s employees, 2022-2023


Distribution of employees by categories, 2022–2023


Ratio of men and women in the management, 2022–2023


Distribution of employees by the main area of activity, as at 31 December 2022 and 31 December 2023


Labour turnover (%)

2022
4 %
4 %
13 %
9 %
2023
5 %
5 %
12 %
7 %
Labour turnover
Voluntary turnover

In 2022, 206 new employees started work and the employment relationship was ended with 227 employees. The labour turnover rate was 12%, with voluntary turnover being 9%. The turbulent energy market changed the Ida-Viru labour market situation significantly and increased the Group’s labour turnover, particularly at VKG Kaevandused. Demographic changes, emigration from Ida-Viru County and other external factors have caused an increase in the deficit of suitable employees in the region, which has lengthened the time of recruitment of employees and put significant pressure on the price of labour.

In 2023, 177 new employees started work, with the majority of them in the age group of 25–44. The employment relationship ended with 208 employees. The labour turnover rate was 13% in 2023, with voluntary turnover being 7%.


Gross salary

2020
1 718
2021
1 744
2022
1 939
2023
2 146

90% of the Group’s employees are the residents of Ida-Viru County and through their wellbeing we contribute positively to the regional standard of living. In 2023, the salary paid at the Group was 17% higher than the average in Estonia and 49% higher than the average in Ida-Viru County. The Group’s average salary was 2,146 euros in 2023. We also offered various additional benefits and compensation to our employees in the amount of 1.6 million euros last year.

Remuneration at the Group is based on the labour market situation in the region, the salary market conditions of different sectors, the level of responsibility and skills of the employee, and other indicators which may have an effect on the bases of pay. The results of the Estonian salary survey conducted by Fontes confirm that the salaries paid at the Group are higher than the average salary of Ida-Viru County and our competitive position in the labour market is strong.

VKG applies a transparent performance pay system with clearly defined principles. Balanced working conditions and a fair remuneration system ensure motivated and loyal employees and a strong work culture. The employees’ satisfaction and commitment were also increased thanks to the Christmas benefit paid to all the employees at the end of 2022.

Employees receive additional pay for working in the evening and at night. The Group strictly adheres to the Employment Contracts Act. The working time regime is in conformity with the law and the collective agreement. If the working time of an employee differs from the provisions of the employer’s general rules, the working time is regulated in the employment contract, taking into account the nature of work, the specifics of production, and working conditions. Work is organised in shifts, if the production process is longer than the allowed working day, as well as for the more efficient use of the equipment and for increasing the production volume or providing more services.

In addition to salary, a tenure bonus is paid to the Group’s employees as well as a child birth bonus, an anniversary bonus, and a funeral bonus on sadder occasions. Parents with small children can take additional paid leave.

Commitment and satisfaction survey: VKG’s employees are satisfied with their employer


At the beginning of 2023, we conducted a survey of the commitment and satisfaction of VKG’s employees in cooperation with market research company Kantar Emor. The survey was open to all the employees of VKG and 66% of our employees responded to the survey.

On the basis of the employees’ answers, VKG’s commitment index is 67, which exceeds the average of both Estonia and the sector of industry. The personal commitment indicator – 75 points – is significantly higher than the average in Estonia. With regard to team spirit, we are at the Estonian average level, but remain below the Estonian average compared to the construction and industrial sector. Thus, we can conclude that we still have room for development in the areas of teamwork, common goals and cooperation and we can grow together. It was pleasing to see that general satisfaction with VKG as an employer was 4.1, and 45% of the respondents supported VKG’s future plans with the maximum points.



Development of our people


The Group focuses on ensuring the availability of new employees and offering development opportunities to our employees. We are also a practice place for many students. We believe that we can stay in competition and be successful as an organisation in changing market conditions only by developing and updating the skills and knowledge of our employees.

Every employee of the Group has an opportunity to improve their skills and to develop. An employee’s needs and wishes are mapped at development interviews and his or her training map is prepared on the basis of that. We support and facilitate our employees’ wishes to learn and obtain new knowledge. At the same time, our training portfolio also includes a mandatory study programme which introduces the relevant laws and regulations and out internal standards.


VKG’s priorities in the area of training in 2022:


  • development of competences that facilitate teamwork and cooperation,
  • improvement of the skills of using Office programmes,
  • implementation of the Toolkit training opportunities,
  • improvement of the level of skills of using the software used in the Group,
  • ensuring the availability of future specialists/operators for VKG Oil,
  • improvement of work-related competence/qualification.

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Training ‘I Choose’, completed by 90% of the employees, i.e. 1,461 people


In autumn 2022, we conducted – for the first time in the Group’s history – an extensive study programme titled ‘I Choose’ which covered all the Group’s employees. The ‘I Choose’ study programme was aimed at improving our safety culture, systematising our knowledge in this area, and analysing our patterns of behaviour.

As long as accidents happen in the Group’s companies, we cannot say that all is well! Colleagues who promote occupational safety organise various events to increase awareness in these matters. This is not enough, however. Without everyone’s active participation and responsible attitude, we shall never reach the level of conscious safety. Safety culture is a behaviour culture. Placing safety first and foremost and noticing any violations of safety rules must become natural for us, an integral part of everyday life – such as greeting colleagues or home folks when arriving at work or at home.

Our jobs and work duties may be very different, but there is one thing that connects us. Regardless of whether we descend to the depth of 30 metres, clean a reactor, configure high-technological equipment, bear responsibility for the functioning of a turbine, drive a truck or sit at a computer in an office – every one of us must feel protected and be sure that nothing at work endangers their health and life. At the same time, everyone must act so that their activities do not endanger themselves, their colleagues, partners, and city residents.


We have never had a project like this before and I personally am very pleased that we are training such a number of people. The employees’ conscious occupational safety training is worth all the efforts, despite the volume of preparation, organisation and subsequent activities. I also think that now is the best time for it.

Ksenia Moskvina

Safety manager

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I am so thrilled about this project! VKG’s dedication to occupational health and safety and their desire to seriously work with the human factor is very cool! I am honoured to participate in this process. I can say from experience that training influences everyone individually, but if we talk about the whole group, training has an in-depth effect on the entire safety culture.

I fully support the need to conduct a ‘base survey of safety culture maturity’ and the monitor its development. The human factor, care, trust, openness, and a grown-up attitude to work and life are the key to personal wellbeing and corporate success.

Erkki Anttila

Educator

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total for all group employees

3062

training days


By the end of 2022, the Group’s employees accumulated a total of 3,062 training days, with our colleagues being engaged in self-improvement on 103 out of 365 calendar days. These figures very clearly show that 2022 was a year of development for us and VKG’s employees learnt more than ever before in that year.

A new learning management system – Coursy


We obtained a full-service user licence for the Coursy learning management system at the end of 2022. The need for a learning management system stemmed from the large number of internal and external training courses. Many of our employees are involved in organising various training courses and events: working environment specialists, equipment operators, workplace instructors, immediate superiors, quality specialists, secretaries and manager assistants, and the training manager. In parallel to their main duties, they constantly looked for possibilities to satisfy the training needs, organising training and storing training documents.

By now, all the Group’s mandatory training courses have been transferred to the learning management system: introductory occupational safety instructions and examinations as well as the instruction materials and tests necessary for acquiring and improving qualifications. This helped make instructions and knowledge testing uniform in the entire Group and made results easily available. We automated the time-consuming organisation and documentation of tests and exams. When certificates are about to expire, the system provides automatic notifications and, if necessary, we can also make extracts ourselves.

By using the learning management system, we reach every employee individually – we map their development needs and direct them to the necessary training course.


The following was in the focus of human resource development at the Group in 2023:


  • development of first-level managers;
  • development of a follow-up safety culture programme;
  • increasing cyber awareness in the entire Group;
  • certification and improvement of qualification, harmonising the Group’s qualification system;
  • development of skilled workers.

The 2023 priorities in the area of employee development included a mid-level manager development programme, in which 249 employees participated, and a development programme for internal training instructors, mentors and tutors, with the aim to ensure the systemic internal transfer of work-related competences. In 2023, 651 employees took part in internal training.

VKG Oil’s technological equipment operator progeny project continued in 2022 and 2023. In 2022, we recruited 21 employees who started studying under the on-the-job study programme of the Ida-Viru Vocational Education Centre and working as technological equipment operators at VKG Oil. In 2023, another 14 future technological equipment operators joined the programme, while simultaneously acquiring a vocational education.

An on-the-job study group was also opened for industrial automation specialists. The graduates of the on-the-job study groups will in 2023 and 2024 be an important addition to our qualified personnel.

In 2023, we organised over 80 training days in which nearly 700 employees participated. This took 1,017 working days during which the employees were absent from their main duties to ensure that their skills and knowledge are significantly improved when they return to their workplace. We invested 500 working days into the development of the management experience of first-level managers and continue with that in 2024.


In 2023

We organized over

80

training days

Nearly participated

700

employees

It took

1017

workdays


During the reporting period, we provided internships

In 2022

42

to students/pupils

In 2023

59

to students/pupils


The group's investment in employee further education

In 2022

400000

In 2023

320000


What will the Group’s training year 2024 be like?


When mapping problems and development needs and sensing the large number of tasks waiting to be fulfilled, we established the following training priorities for this year:


  • improvement of the level of work-related qualification – creating a systemic internal training structure, developing the competence of internal training instructors and tutors,
  • development of the management skills of first-level managers (continued programme),
  • development of the knowledge and skills of automation specialists and electricians.

Internal events as an output in the valuation of employees


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We value our employees and show it with our traditions. While the Day of Chemists and the Day of Miners have by now become the favourite public parties in Ida-Viru County, we also have a number of internal events: Christmas parties, jubilee gratitude events, the School Bell Party for children starting in the 1st grade and their parents, where children receive a schoolbag equipped with all the necessary school supplies as a present.

Children safely to school


Event image
For more than 20 years now, VKG has been holding a festive day for first grade pupils in order to together enjoy the last days of summer and prepare for school. Every year, we give children cool schoolbags with all the necessary school supplies a present. During the reporting period, 140 children of the Group’s employees started their school career.

Participating in promoting safe traffic on the railway


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We take part in the fun international event called the Handcar Rally. The two-day 140-kilometre competition on rails started from the territory of VKG in Kohtla-Järve on 28 July 2023 and put the team spirit of VKG’s employees to the test. The Handcar Rally took place for the 13th time, with 14 teams from various railway companies, institutions and safety organisations. VKG participated for the fifth time, but we put out our team first in 2014.

VKG Moving for Your Health


Event image
An active lifestyle and health have become an increasingly important topic in recent years and take up an increasing part of our time every day. We promote this attitude also among our employees and invested 100,000 euros in supporting our employees’ sports hobbies in the reporting period.

For a long time, we have also cooperated with the YuMuuv team, using the app to offer our employees different monthly challenges which inspire and make it easy to take care of the most important thing – our own health. It has been proven that moving releases happiness hormones which improve our wellbeing. By moving, we keep our physical health in a good state, while also taking care of our mental health. It is also an important step towards reducing the level of stress at work.

Cooperation with educational establishments


The Group has been supporting the best students with scholarships since 2003. With the scholarships, we wish to primarily support education in the areas of engineering and chemistry and motivate successful students. The Group’s annual scholarship fund is 13,100 euros and applying for a scholarship is done via the TalTech Development Fund. The total amount of scholarships we have awarded over time exceeds 165,000 euros.

VKG’s bachelor’s degree scholarships are granted to up to two successful bachelor’s students of electrical engineering, mechatronics, earth sciences and geotechnology, environmental and chemical technology or thermal engineering at TalTech’s School of Engineering. One scholarship is 2,000 euros.

VKG’s master’s degree scholarships are granted to one successful master’s student of environmental and chemical technology, fuel chemistry and technology, thermal engineering, and electrical engineering at TalTech. One scholarship is 3,000 euros.

VKG’s professional higher education scholarships are granted to up to two successful professional higher education students of fuel technology, industrial automation, machine building technology, energy technology, chemistry technology, energy technology process control and telematics and smart systems at TalTech’s Virumaa College. One scholarship is 2,000 euros.

Since 2020, we are also awarding two VKG Medallist Scholarships to the students of the TalTech Virumaa College. The amount of VKG’s gold scholarship is 1,500 euros.

Starting from the academic year of 2023/2024, we established a scholarship for the employees of Viru Keemia Grupp and its subsidiaries studying chemistry technology (professional higher education studies) and sustainable chemistry technologies (master’s studies) at the TalTech Virumaa College. The amount of the scholarship is 1,000 euros upon the completion of each academic year. Upon completing the chemistry technology (professional higher education studies) and sustainable chemistry technologies (master’s studies) study programmes in the nominal time, the scholarship is 2,000 euros.



VKG’s scholarships support the students’ motivation in acquiring the professions necessary in the Group and give a clear signal that we expect young specialists to join our ranks.

The Group also places great importance on cooperation with schools. We strive to create an uninterrupted path of education: school – university – company, aiming to ensure a constant inflow of young people and the proper qualification and the necessary competence of our future specialists. The Group cooperates closely with the local upper-secondary schools, from the STEM programme to the Five Schools’ Contest.

During the reporting period, the Group also continued its cooperation with the programming school kood/Jõhvi operating in Jõhvi.

The Group’s team is also an active participant in various student career events, talking about exciting challenges in the industrial sector.

Cooperation with trade unions


The Group has a long-standing partner relationship with the Trade Union of Chemists. The representatives of the trade union actively participate in the development of the Group’s production safety culture, discussions on changes in the system of social benefits, and measures to create safe working conditions.

Viru Keemia Grupp has a collective agreement which establishes the Group’s social obligations towards its employees. At the end of 2022, Viru Keemia Grupp and the Trade Union of Chemists signed a new collective agreement for 2023–2024.

The new collective agreement preserved all the previously agreed social guarantees and benefits. A great emphasis is on the improvement of the working environment, which is extremely important for both parties. When discussing occupational safety and working environment topics, the parties are generally always in one mind and convinced that the working environment can be made better and safer only through cooperation. An important change was that the employer will invest even more financial resources in the training of trade union members and trustees, thereby supporting an important value of the Group – development – and helping to ensure the quality of the contribution of trustees.


As at the end of 2023

of the Group’s employees

30 %

were members of the trade union

the collective agreement covered

100 %

of the employees