ER/IR Competence GIRN, 20 th October 2011

1. ER/IR CompetenceGIRN, 20th October 2011 Andrea van Duijse VP HR Employee Engagement, ER/IR, Compliance HR Strategy & Internal Communications

2. Agenda • About Shell • ER/IR Competence Building • Governance, global standards & philosophies • Tools & Materials • Measurement • Group Exercise • Q&A

3. Challenges • ER/IR is essentially ‘learning by doing’ – how to give/get the experience before it’s needed • Deciding what’s global/generic from what’s local/specific • Risk based – eg how to negotiate to a mandate, global union agenda • Investment and focus over the long term

4. Governance & Networks VP HR Operations (HR in Country) are accountable for ER/IR Global ER/IR Net EVP HR Strategy + VP HR Operations + Internal Comms + 2 businesses (all 5 business units are represented) Downstream ER/IR Net ER/IR Specialists in country + HRM in Business Country ER/IR Nets ER/IR Manager + ER/IR Specialists in a major country

5. Global Standards & Philosophies • Shell General Business Principles • Code of Conduct • People Standards • ER Philosophy • Articulates relationship with employees • Delivers on work environment, learning & development, communications & involvement, and performance & reward • Target audience: Supervisors, Senior leaders & HR • IR Philosophy • Employees have a safe work environment, are heard, grievances addressed, enjoy competitive terms & conditions • Good employee relations are the basis • Employee – line manager relationship is key • Local solution to local issues • Respect unions where present • Target audience: Country HR Mgrs, ER/IR Managers, Country Chairs, Site Mgrs

6. Tools & materials available 1/2 Reference Materials Training Courses • HR Functional Excellence “4 Box Model” for the ER/IR Competence • Onboarding of new HR colleagues • E-learning Employee Engagement/ER/IR/Consultation Basicsfor supervisors & HR • ER/IR Sharepoint Site • ER & IR philosophies • Practical Guide to IR • Monthly external news items • Country sections • Good practices from around the world • Community, connections On-the-Job + Coaching Professional Experiences

7. Tools & materials available 2/2 • Regional webcasts • Building awareness in the HR leadership teams • Senior Business Leader briefings • ER/IR Peer Reviews for key countries • Capability building on international ER/IR • Regional webcasts, raising awareness of global union agenda • ER/IR Peer Reviews, using country ER/IR managers to review a country in a different continent • Unilever – CIPD accredited course on International ER/IR • External networks as sources of learning

8. Measurement • Annual Shell People Survey • Absence • Internal Communications surveys • Reputation tracker • Nr and type of grievances • Nr and type of disciplinary measures • Attrition rates • Use of contract labour • Market surveys • Manhours/business lost due to industrial action • The power of combining all the data and making sense out of it.

9. GROUP EXERCISE 3 Groups: (vote with your feet) – 30mins • Governance, global standards & philosophies • Tools & Materials • Measurement Round Robin in your groups • What do you have in place in your company? • What works well? What does not? Short report-out of highlights from your discussion (5 mins each)