At Petro-Canada, we believe that effective two-way communication is critical to delivering our business strategy. Employees are a key stakeholder in our business, and we treat them as such. Our employees are informed of our plans and impacts, and their role in our successes. We make every effort to provide useful information and listen to the ideas and concerns put forth by employees.

To encourage this engagement, we use our intranet to provide a constructive forum for enhanced business communications. The intranet has become a successful vehicle for distributing news and information that affects employees. It also provides an efficient means to solicit feedback and suggestions from employees. In early 2009, we also created an interactive blog called the Water Cooler for employees to get up-to-date information and share their thoughts on current events.

After the release of each quarterly report, presentations and speaking points are provided to Company leaders to assist them in communicating our business priorities, plans and results to employees.

Senior executives periodically hold town hall meetings with employees at which employees are given the opportunity to ask questions directly, or anonymously, about the Company.

Organized Labour and Collective Bargaining Agreements

In some parts of the workforce, workers desire “collective” representation. At the end of 2008, approximately 20% of our employees were covered by collective bargaining agreements. Approximately 90% of the Company’s unionized employees are members of the Communications, Energy and Paperworkers Union (CEP), which represents refinery, marketing, gas plant and offshore production workers.

We respect the right of our employee groups to choose to be represented by a bargaining agent. Where employee groups have made that election, we bargain in good faith to reach a collective agreement that balances the needs of the business and leadership with a responsible package of wages and working conditions. We treat collective bargaining as a business process. Our negotiations are conducted in a respectful and businesslike fashion.

In December 2008, a collective bargaining settlement was reached between Petro-Canada and local 175 of the (CEP) at the Montreal refinery. The settlement reached was fair and balanced for both the Company and employees.

The balance of our collective bargaining agreements at our Canadian-based operations are in effect until early 2010.