Employees
Sustainability website / Our People / Employees
We maintain a safe workplace that is based on mutual respect, fairness and integrity. We provide industry-leading career development opportunities, competitive remuneration and fair and non-discriminatory workplaces. Xstrata’s operations aim to maximise the number of local people employed wherever possible, to share the economic benefits of our presence with neighbouring communities and families.
We respect our employees’ right to collective representation, just compensation, job security and opportunities for development. We value diversity and treat all employees and contractors fairly, providing equal opportunity at all levels of the organisation without bias according to race, nationality, religion, gender, age, sexual orientation, disability, political or other opinion or any other basis. Xstrata is committed to uphold the UN Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work.
Xstrata employs 37,698 permanent employees and 22,323 contractors (average for 2007) in South Africa, North and South America, Australia, the Caribbean and Europe. Xstrata’s Group General Manager, Human Resources reports to the CEO. Each commodity business is fully resourced to manage its human resources requirements within the Group’s policies and procedures.
Labour relations and union representation
Labour relations and union representation / Non-discrimination / Retention and recruitment
Xstrata’s workforce is predominantly unionised. Within the Group there are examples of various workplace relations models, including individual agreements and collective bargaining agreements. Approximately 57% of permanent employees are represented by collective agreements. All employees are free to join a union of their choice and to be represented collectively. We do not believe that any country in which Xstrata operates represents a risk to freedom of association and collective bargaining and we uphold this right at every managed operation.
As set out in Xstrata’s Sustainable Development Policy, we consult, communicate and provide appropriate support to employees during significant organisational changes including closures, acquisitions, mergers and divestitures. Minimum notice periods vary across the Group and range from a minimum of one week in North America to up to 12 weeks in Europe. Notice periods are generally specified in workplace agreements.
Non-discrimination
Labour relations and union representation / Non-discrimination / Retention and recruitment
Xstrata’s Sustainable Development policy states that we do not tolerate any form of workplace discrimination, bullying, harassment or physical assault and we provide a fair and non-discriminatory employee grievance system. Xstrata’s anonymous ‘ethics line’ exists for incidences where employees, contractors, suppliers, business partners or others are not able to raise issues with line management directly (see Governance, Ethics and Engagement section).
In 2007, eight incidents of discrimination were reported, reviewed and resolved. Two incidents were reported at Xstrata Nickel’s Koniambo project in New Caledonia, relating to racially intolerant comments or behaviour. One of these incidents has been reviewed and remedial action has been taken. The investigation into the second incident is ongoing. Five incidents of discrimination were reported at Xstrata Alloys operations in South Africa. Two of the cases related to sexual harassment or discrimination and one employee was dismissed as a result of the investigation. Three cases related to complaints about racist language and have been fully investigated. Disciplinary action has been instituted against the employees concerned. One incident of workplace harassment was reported during the year at the Tampakan Project in the Philippines. Following an investigation, disciplinary action was taken against the person responsible.
Retention and recruitment
Labour relations and union representation / Non-discrimination / Retention and recruitment
The mining industry is currently facing a global shortage of skilled employees across a range of disciplines. The ability to attract, retain or train people with the appropriate skills is critical to Xstrata’s continued success and ability to grow and operate effectively, and has been identified as a principal risk facing the Group. In addition, Xstrata’s lean management structure places reliance on a number of key people both at the executive and operational level, requiring appropriate retention measures and succession planning.
We aim to attract and retain the best people at every level of our businesses and to provide them with the resources they require to achieve and maintain our operational excellence. We provide industry-leading career development opportunities, well structured employment contracts and fair and competitive remuneration.
Xstrata’s management model is highly devolved and comprises a very lean corporate centre of some 50 people and five fully resourced, standalone global commodity businesses. The role of the corporate centre is well defined to minimise bureaucracy and avoid overlaps with the business unit activities. Rational risk-taking is sponsored to stimulate innovation and an entrepreneurial spirit at every level.
We believe our devolved management structure and supportive environment for rational risk-taking are important retention measures, offering unparalleled opportunities for development and entrepreneurial leadership, minimising bureaucracy and allowing every employee to play an active part in our success. Training, education and development programmes are another important retention tool. Formal succession planning is annually reviewed at the commodity business and Group levels.
In 2007, employee turnover rose to 7.4%, up from 5.2% in 2006. Turnover was particularly high in Australia and South Africa, where competition for skilled labour is very strong, although year-on-year retention in these regions improved compared to 2006.
Commodity businesses conduct periodical employee engagement or satisfaction surveys. Xstrata Copper divisions conduct annual surveys with the most recent results showing employee engagement of between 70% to 85%. Xstrata Nickel conducted a voluntary global employee satisfaction survey in the fourth quarter of 2007 with an overall participation rate of 48% and employee engagement levels of over 83%. Gallup has been engaged to conduct employee engagement surveys across all Xstrata Alloys operations and offices in 2008.
Every employee’s performance is reviewed on a six-monthly or annual basis. Other methods used to gauge employee satisfaction and engagement include monthly employee communication meetings, suggestions boxes, exit interviews, newsletters, intranet feedback mechanisms and employee representative committees. Feedback from surveys and other mechanisms is used as an input into the development of business plans and working practices.
A total of 335 employees lost their positions in 2007 due to non-compliance with Xstrata’s corporate policies and expectations. A total of 174 terminations were due to transgressions of Xstrata’s Business Principles. Non-compliance with health and safety procedures accounted for 30 terminated positions while the remaining 131 employee contracts were terminated as a result of overall poor performance. No terminations were made due to non-compliance with environmental policy or procedures.
Transition assistance programmes are made available to employees made redundant or retiring from the Group and include pre-retirement planning, retraining for those intending to continue working or seeking alternative employment and job placement services.
Through the acquisition of Falconbridge in 2006, Xstrata acquired a number of defined benefit pension plans in North America. The net liability at 31 December 2007 was $222 million. The majority of employees participate in defined contribution plans and industry-wide schemes.