EMPLOYEES AND CONTRACTORS

“I am proud to have been the only finalist and also winner from the mining industry. This shows us that mining is becoming more open to incorporating and developing women. This award tells us that it’s possible to reconcile motherhood and still perform optimally and efficiently in this industry.”

Katharina Jenny
Corporate Safety and Health Manager

A wide diversity of talent is required to address the challenges of mining in the future, as well as a culture of innovation and values aligned to our business objectives. We actively manage and develop mining talent and seek the commitment of employees and contractors to our values.

CONTEXT

The mining industry is in constant flux. Innovation, automation, new technologies as well as new generations of employees and contractors are an important challenge. Are we ready for these changes? Which working model will best adapt to future society? Discussing this with more than 19,000 employees and contractors, union leaders and workers’ families is critical to understand the importance of organisational changes the mining industry will face in the future. Rather than resisting these changes, we must channel them and manage their impacts, so they become a source of opportunity both for Antofagasta Minerals as well as the labour force. 

Antofagasta Minerals has a workforce of 19,441 people, including employees and contractors, at our operations, projects, exploration programmes and corporate offices. Contractors account for 74% of our workforce. Centinela has the largest proportion of employees and contractors with 37%, followed by Los Pelambres with 33%, Zaldívar with 13%, Antucoya with 10% and our corporate offices with 7%.

MANAGEMENT

We continue to reinforce our 2013 labour strategy built on four pillars: culture, talent management, organisational effectiveness, and labour relations and engagement. In 2018 efforts were focused on integrating the new Diversity and Inclusion (D&I) Strategy into these four pillars. Our challenge is to align our 14,000 contractors with both our operating model and D&I Strategy.

People      
  2018 2017 2016
No. of employees and contractors 19,441 19,498 18,026
No. of employees 5,108 5,026 4,977
No. of contractors 14,333 14,472 13,049

The D&I Strategy “We are diverse, we choose inclusion”, approved by the Board in 2017, focuses on the inclusion of more women, people with disabilities and employees with international experience.In 2018 the strategy was rolled out across Antofagasta Minerals and D&I targets were incorporated into individual performance agreements at managerial level. These targets account for 5% of annual performance bonuses.

In 2018 the Board approved a new Charter of Values which includes the D&I Strategy, among other additions.

We are working to effect cultural change across Antofagasta Minerals to create an inclusive organisational environment that embraces and strengthens diversity, allowing all employees to achieve their maximum potential. For this purpose, we have focused on raising awareness, education, generating inclusive work environments and updating expectations about workers’ behaviour.

In 2018 9% of the workforce was female, 21% of women were promoted and/or had development opportunities, and the participation of women increased in the succession planning talent pool for key managerial roles.

In 2018 four of Antofagasta Minerals’ female executives were appointed to the boards of our operating companies, marking a milestone on the path to diversity and inclusion.

The Head of Risk and Compliance, Anna Gretchina, joined the Los Pelambres board; the Head of Competitiveness, Rosario Orchard, joined the Centinela board; the Corporate Manager of Safety and Occupational Health, Katharina Jenny, joined the Antucoya board; and the Technical Processes Manager, Cecilia Arrué, joined the Zaldívar board.

In addition, three of our female executives joined the Group’s operating company boards: the Vice President of Human Resources, Ana María Rabagliati, joined the board of Ferrocarril de Antofagasta a Bolivia; senior lawyer Carla Araya joined the board of Parque Eólico El Arrayán SpA as alternate director; and Finance Manager, Paula Aguirre, joined the board of Inversiones Hornitos S.A. 

Non-Chileans or Chileans with professional experience abroad.

Promociona programme: a public-private initiative begun in 2017 that supports leadership development for highpotential women to increase their participation in senior management roles and on boards.

Sexual harassment: in 2018 we prepared and rolled out the first Sexual Harassment Protocol. We also adhered to the Chilean government’s sexual harassment campaign.

Collaborative alliances: together with other mining companies, we participated in an initiative coordinated by Santo Tomás University’s Cielo research centre to develop an Early Warning System to reduce loss and improve retention of female employees. We are also involved in the women and mining working group , a public-private initiative to develop a new work/life balance protocol to promote female participation in the sector. Other mining companies and associations, organisations such as Women in Mining, the Chilean Ministry of Mining and the Chilean Ministry of Women and Gender Equity also participate in the latter initiative.

Training: we held several training sessions as part of the D&I Strategy communications campaign. Company executives were trained in inclusive leadership and unconscious bias. At the operational level, awareness-raising talks were held on D&I issues.

Monitoring D&I: in 2017 and 2018 we developed a diversity baseline and monitored the progress and perception of the programmes. In general, there was a positive perception and acceptance of the Strategy’s dissemination programmes.

 

In 2018 we focused on improving the talent management system. Changes were introduced to increase the mobility of diverse and global talents, reviewing the female talent pool and identifying roles for people with international experience. We also updated our training modules according to our operating model and defined training programmes for each role. At the supervisory level, role requirements and development and training programmes were updated.

Antofagasta Minerals wants to attract and strengthen the talent of new generations through different programmes:

  • Young Graduates Programme: for the last eight years, we have sought to recruit into the talent pipeline young people with potential to take on key executive roles. In 2018, 19 young people took part.
  • Apprentices Programme: offers job opportunities to young people from local communities.
  • Eleva Programme: a public-private initiative to develop technical skills in the regions where we operate for mining of the future.

In 2018 we invested almost $4.7 million on 259,316 hours of training, providing an average of 51 hours of training per employee.

Nine of the 10 young technical professionals taking part in 2018 and doing their dual apprenticeship at Antofagasta Minerals were hired by Antucoya, thanks to the Eleva Programme.

It is a public-private initiative that seeks to prepare for future mining by improving people’s skills and job opportunities and providing relevant and high-quality technical-professional training at all levels. Antofagasta Minerals is represented on the organisation’s board of directors.

Eleva is part the Consejo de Competencias Mineras (CCM, Mining Skills Council) and counts on the participation of the Ministry of Economy, Ministry of Education, Ministry of Labour and Social Security, Ministry of Mining,
National High-Grade Mining Programme, National Service for Training and Employment (SENCE), Mining Council and Fundación Chile as an expert adviser.

For more information on the Eleva Programme and the Consejo de Competencias Mineras see:
http://www.plataformaeleva.cl
http://www.ccm.cl

Life quality

For Antofagasta Minerals, decent working conditions are a key factor for creating commitment to the organisation. The comfort of mining camps, catering, ease and comfort of transport, recreation activities and continuity of working conditions in different posts are highly important and fundamental to the good quality of working life.

Measures implemented this year include the opening of ALMA rooms at Centinela, Zaldívar and Los Pelambres mining operations. This initiative provides the necessary infrastructure to allow working mothers to extract and store breastmilk and is an important step towards diversity and inclusion and implementing occupational health maternity standards.

We also improved our facilities to make them more comfortable and enhance the working conditions of our employees and contractors. For example, the so-called “Winter Operation” upgraded the Hualtata Refuge, located at an altitude of 3,600 metres in the Andes. Los Pelambres keeps this shelter to protect and house workers when they are unable to descend from the mine due to adverse weather conditions. It has basic supplies such as water, electricity and telecommunications, as well as resources to provide food, accommodation, cleaning and recreational activities.

This year we also implemented the Digital Signature, a new system allowing employees at all operating companies to request benefits without needing to move from their post.

The salaries of our employees and contractors can also contribute to a better quality of life. Antofagasta Minerals has set a minimum wage of $665 per month (equivalent to Ch$425,850), 41% higher than Chile’s legal minimum wage.

Labour relations

As part of its vision for the future, Antofagasta Minerals is committed to the development of collaborative, constructive and long-term labour relations to achieve mutually-beneficial common goals and a shared outlook.

Within this framework, and to engage with employees on our future vision, Operational Model challenges and regional engagement strategy, in 2018 we continued to train our different work teams and union leaders on labour relation issues.

Antofagasta Minerals has 10 unions: four at Centinela, three at Los Pelambres, two at Zaldívar and one at Antucoya, together representing 76% of all employees. In 2018 two collective labour agreements were successfully negotiated at Los Pelambres and will remain in force until 2020. In 2019 negotiations are scheduled for three labour agreements with supervisors at Los Pelambres, one with supervisors at Zaldívar and one with employees at Antucoya. These binding agreements cover salaries, employment benefits and other work conditions.

Antofagasta Minerals has formal consultation and complaint mechanisms such as the Reporting Line which can be accessed by all employees, contractors and union leaders.

INSPIRING WOMEN

Women in Mining (WIM), a global organisation which has been tracking women in mining since 2006, named the top 100 inspirational women in mining in 2018. Three of Antofagasta Minerals’ employees were chosen out of 642 nominees: Laura Cristoffanini, Cecilia Arrué and Angie Caro.

FEMALE LEADERSHIP

The “Executive of the Year” award, given by Mujeres Empresarias (Businesswomen) and the magazine Revista Capital, acknowledges the most important female executives in different business sectors in Chile. Katharina Jenny, our Corporate Safety and Health Manager, was chosen from 200 candidates and became the only finalist from the mining industry. The award recognises her professional career, management capacity, leadership, innovation and influence.

Contractors conduct key tasks in our business and represent 74% of the workforce. They provide permanent support services to the operation such as maintenance, transport and catering, and temporary services related to projects, mainly the construction of new installations or expansions. The number of people who provide project contractor services can vary significantly each year depending on the size of the projects being executed. For example, Centinela hired more than 2,000 contractor workers for its expansion.

The Company has established control mechanisms to make sure contractors meet Antofagasta Minerals’ standards and guidelines on labour, environmental, social and ethical matters, and is committed to auditing contractor companies’ labour standards as well as their adoption of good practices. We require contractor companies to meet all the country’s laws and regulations, as well as our Charter of Values and Code of Ethics. In addition, contractors must comply with the UK’s Modern Slavery Act.

We establish standards in contractor companies to ensure a safe workplace and quality employment. For example, we set the same ethical minimal wage for contractors as for employees and a number of basic benefits that include life and health insurance. These requirements are included in contracts and regularly audited.

Centinela and Los Pelambres establish performance agreements with contractor companies, containing KPIs to measure performance on safety and health, labour disputes, labour demands and site stoppages, among other topics.