Competitiveness based on Values

The Group intends to overcome the challenges it faces by taking advantage of synergies across its operations and encouraging employee commitment based on shared values, a corporate vision and an attractive value proposal.

OUR APPROACH

The corporate strategy for human resources underpins the overall business strategy, especially in complex economic conditions, and is based on four pillars:

  • An organisational model that exploits synergies amongst the Group’s operations to remain competitive.
  • A corporate culture based on the Charter of Values and respect for human rights.
  • The development of employees’ talents and skills.
  • Strengthening employees’ commitment and managing labour relations using the highest standards.

The Group wants its workforce to make a strategic contribution to the business. In 2016, in order to tackle the twin challenges of competitiveness and costs, work processes were reviewed and duties reorganised in some departments. The aim was to identify simple and effective management models with clearly delineated responsibilities, in line with the Group’s desire for continuous improvement. More efficient administration meant reducing the duplication of activities and this in turn led to downsizing across all the operations, particularly at the supervisor level. Only Antucoya increased its headcount, in order to meet its design capacity in line with the production plan. In 2016, the Antofagasta Minerals workforce, including company employees and contractors, totalled 18,026 people.

SHARED VALUES

Regarding the Mining Group’s culture, in 2016 the focus was on responsibility for safety, which is a core value. Outstanding employees were recognised on a Group level and in each operation. The executive leadership programme was updated as a result of the Safe Map safety culture survey, implemented across the Mining Group in 2015. The incorporation of the Zaldívar Mine into the Mining Group meant its inclusion in the shared values culture. 

Workforce1201420152016
Direct Employees 4,683 4,586 4,977
Contractors 19,542 14,892 13,049
Total Workforce 24,225 19,478 18,026

 

1 Annual averages. Includes operations and projects from the four mines and the Corporate Centre, and full-time and fixed contracts. Up to 2015 it included Michilla Mine and after 2016 it includes Zaldívar.

Integrating Zaldívar into the Mining Group has been a challenge both on an operating and organisational level, and has required significant effort in all areas of human resource management.

Some of the initiatives carried out in 2016 were:

  • Implementation of the Performance Management System for Zaldívar.
  • Training agents at Zaldívar to convey the Charter of Values to approximately 600 employees.
  • Distribution of the Code of Ethics and obtaining undertakings from all employees to comply with it.
  • The Group’s value proposal was communicated via the “Discover Antofagasta Minerals” campaign.

As a result, great progress has been made in the successful integration of the organisation’s culture and the full use of synergies with other Group operations.

Antofagasta Minerals’ talent management system ensures employees are competent, committed and take responsibility for their own development, while contributing to sustainable business growth. The priority is to strengthen existing roles through a performance management system, while offering training and transfer opportunities.

In 2016, a US$1.5 million investment secured 152,197 hours of training, averaging 30.6 hours per employee. Training examples include the executive leaders’ programmes, the internship programme and regulatory compliance training.

To guarantee the necessary competencies and skills, we have run a young professionals programme for the past seven years. A total of 142 professionals have been trained, of which 31% are women. In 2016, in line with business criteria, a shortened version was held, with three women and four men, focusing on operating specialisations.

To maintain sustainability, our ongoing strategy is to identify the most appropriate skills for each task and to prioritise internal promotion. However, due to the restructuring and streamlining, fewer roles were filled internally than in 2015, with a total of 52% of key roles and 27% of supervisory roles being filled internally.

The Group commits to its employees with a clear and attractive value proposal that emphasises the advantages of being part of a young and growing Group. The Value Proposal, published in 2015, confirms that Antofagasta Minerals’ management is based on values, is committed to the development of its employees and the country, and is focused on maintaining its leadership on the basis of innovation, safety and excellence.

QUALITY OF LIFE AND BENEFITS

One measure of the quality of employment offered by the Group is the standard of employees’ safety at work. Another is the quality of the facilities at the mine site. A third is salary levels, which are well above the national legal minimum wage. The Group requires its contractors to offer the same advantages to their own employees.

The operations are constantly improving their camps and their recreational areas and activities. Benefits, which include complementary health and life insurance policies, as well as well as fair pay, incentives and working hours, are set out in the employment contracts and collective agreements.

During collective labour negotiations held at Los Pelambres, Antucoya and Zaldívar in 2016, joint committees were formed to analyse both health and family protection systems, benefits, employee development and mobility, and proposing improvements where necessary.

GENDER DIVERSITY

The company recognises the importance of improving gender diversity and equal opportunities for women. In 2016, Antofagasta Minerals had 431 women employees, equivalent to 9% of its workforce. Of these, 10% were heads of departments. The Group has one female Vice-President and two female Board directors. The training programme for mine operators’ apprentices and young professionals has successfully included more women and plans were made to set a gender diversity strategy and develop action plans in 2017 to promote the integration and development of women across the Group.

The Mining Group values and respects the participation of employees in matters of interest to them through bodies such as joint committees and unions. Good work relations are based on good working conditions, trust and ongoing dialogue. Potential conflicts have been proactively addressed and agreements reached that are beneficial for both parties. Up until 2016, none of the mining operations in the Group has faced an employee strike.

Work relations are formally based on legal compliance and the Group’s values and Code of Ethics, which are predicated on respect for human rights1. Furthermore, to ensure compliance with United Kingdom legislation and regulations regarding Modern Slavery, a review was made of the Group’s Work Regulations and Policies.

UNIONS

In 2016, supervisors at Centinela formed a new union, bringing the current total to 10 unions in the Group: three at Los Pelambres, four at Centinela, two at Zaldívar and one at Antucoya. The percentage of unionisation and coverage of the collective labour agreements is 68% of employees. During the year three collective negotiation processes were held at Los Pelambres, Zaldívar and Antucoya resulting in collective agreements that will remain in force until 2019.

In accordance with the recent Labour Reform law (No. 20,940), effective 1 April 2017, the Group is redesigning its personnel management models –wages, contracts and services– and adjusting its collective instruments and agreements to ensure consistency across all areas of the business. Measures include intensive training in legal matters for supervisors and executives and working with unions to incorporate new rules and requirements into work schedules.

1 Chilean legislation guarantees basic protection of employees’ human rights, such as minimum wages, maximum working hours, decent working conditions, freedom of association and the prohibition of forced labour and child labour.

 

Performance

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