PowerPoint Presentation · 2020. 7. 31. · PowerPoint Presentation Author: Damian Cotellessa Created Date: 7/31/2020 10:48:21 AM

Title

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Table of Contents| Remuneration Pract ices| Work Arrangements| Looking to the Future (post cr is is)

31 st July 2020

Benchmark HR Practicesfor the Mining Industry in t imes of crisis

T h i s i s t h e t h i r d s t u d y G l o b e h a s u n d e r t a k e n o n t h e t o p i c o f t h e e f f e c t s o f C O V I D f o r t h e m i n i n g i n d u s t r y , w i t h t h e p r e v i o u s t w o p r e s e n t a t i o n s a v a i l a b l e u p o n r e q u e s t ( A p r i l a n d M a y 2 0 2 0 )


2. Company Size| 65% of part ic ipants are junior or mid -t ier producers| 18% large -scale producers

Global Representation| 6 Cont inents| 30+ Operat ing Countr ies| 15+ HQ Countr ies

Respondents

| CEOs| VP HR| HR Managers| General Managers| HR Professionals| Operat ions Managers

Respondent Demographics

1 . Participants| 37 Companies

11%

26%

39%

18%

5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Junior Explorer (exploration programs beingconducted in one or more countries)

Junior Producer (eg. single-site operation in onecountry)

Mid-tier Producer (eg. multiple sites in 1 – 5 countries)

Large-scale Producer (eg. multiple sites in 5+countries with a global foot-print)

Other (e.g. Mining Services)


For staff who can't access their usual workplace (site or off ice) and who can't perform their job remotely, what measures have been implemented to manage the current situation:

Remuneration Practices

| 5 0 % o f c o m p a n i e s h a v e k e p t e m p l o y e e s w h o c a n ’ t a c c e s s t h e i r w o r k p l a c e a n d w h o c a n ’ t p e r f o r m t h e i r j o b r e m o t e l y o n f u l l p a y . T h i s i s a s i g n i f i c a n t r e d u c t i o n o f t h e 6 9 % o f c o m p a n i e s i n o u r A p r i l 2 0 2 0 s u r v e y .| A s t o b e e x p e c t e d , t h e r e w a s n o s t a n d a r d e v i d e n t f o r p a r t i a l p a y , r a n g i n g f r o m 2 5 % t o 7 5 % .

| A c r o s s t h e 3 s u r v e y s , w e h a v e s e e n t h e f o l l o w i n g t r e n d s :

i n c r e a s e d u s e o f a n n u a l l e a v ed e c r e a s e i n f u l l p a yi n c r e a s e i n p a r t i a l p a y

| M a n y r e s p o n d e n t s h a v e a p p l i e d v a r i o u s m e a s u r e s s i m u l t a n e o u s l y o r i n a p h a s e a p p r o a c h

0% 10% 20% 30% 40% 50% 60% 70% 80%

Enforce leave without pay

Enforce use of annual leave

Fully paid

Partially paid

30-Jul-20 27-May-20 9-Apr-20



For staff st i l l working at ful l capacity ( 100%) , have you:

| S i m i l a r t o o u r l a s t s u r v e y , m o r e t h a n t h r e e q u a r t e r s o f C o m p a n i e s h a v e m a i n t a i n e d s a l a r y f o r s t a f f s t i l l w o r k i n g a t f u l l c a p a c i t y

| S o m e c o m p a n i e s h a v e b o n u s e s o r p r e m i u m s f o r s t a f f w o r k i n g b e y o n d t h e i r n o r m a l r o s t e r .

76%

5%

16%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Maintained salary Increased salary Implementedspecific bonus or

incentive

Reduced salary

Yes20%

No80%

Has any salary reduction coincided with a reduction in hours?

| S i t e b a s e d e m p l o y e e s n o w w o r k i n g f r o m h o m e a r e g e n e r a l l y w o r k i n g r e d u c e d h o u r s

| W h e r e e m p l o y e e s a r e n o t a b l e t o p e r f o r m t h e i r n o r m a l d u t i e s s o m e c o m p a n i e s h a v e t h e s e e m p l o y e e s o n r e d u c e d h o u r s a n d p a y


For the next Sa lary Rev iew, the Company expects :


Are annual bonuses for s taf f work ing f rom home af fected or adjusted as compared to staf f able to work on s i te?

| More than hal f o f respondents intend to undertake thei r sa lary rev iew as usual| Others are most ly under rev iew or to be determined

53%

28%

19%

6%

0% 10% 20% 30% 40% 50% 60%

Undertaken as usual

No increases

Other (please specify)

Postponed until COVID19 restrictionsare lifted

Yes16%

No84%

| Most annual bonuses for s taf f work ing f rom home were not af fected or adju sted as compared to staf f ab le to work on s i te| For those that made adjustments , i t was typ ica l ly on a pro -rata bas is


Have you taken any spec i f ic measures to handle fat igue management on s i te?

Work Arrangements

More than 2 /3 of respondents have taken spec i f ic measures to handle fat igue management on s i te . Major i ty inc lude adjusted work hours , roster changes and/or addit ional days of f .

I f yes, please describe

| Additional Days Off

| As per Fatigue Management policy| Granted days in lieu

| Adjusted shifts/rosters| In-country breaks without having to travel

| Later starts| Reduced weekly hours

As the s i tu at ion pers is ts , the proport ion of companies implement ing fat igu e management measu res has increased s ince the last su rvey .

49%68%

51%32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May 27, 2020 July 30, 2020

Yes No

Hal f o f companies a l low FIFO workers to s tay beyond thei r extended rotat ion| Lockdown premiums tended to fall away for most companies that experienced this scenario

H a s y o u r c o m p a n y i m p o s e d a m a x i m u m d u r a t i o n a F I F O w o r k e r c a n b e o n s i t e ?


P l e a s e a d v i s e h o w r o t a t i o n d u r a t i o n s h a v e c h a n g e d d u r i n g t h e p a n d e m i c ?

Majority of FIFO operations have required longer rotations

6 / 3 to 10 / 56 / 3 to 12 / 64 / 2 to 8 / 4

Rotations dependent on:Flight availabilityTravel restrictions / quarantineOperational requirements

Only 25% of respondents confirmed no rotation changes for FIFO workers

Work Arrangements

| J u s t 1 1 % o f r e s p o n d e n t c o m p a n i e s i m p o s e d a m a x i m u m d u r a t i o n a F I F O w o r k e r c a n b e o n s i t e h o w e v e r s o m e c o m p a n i e s r e f e r e n c e d f a t i g u e m a n a g e m e n t a n d g o v e r n m e n t r e g u l a t i o n s b e i n g t a k e n i n t o a c c o u n t

| I n s o m e i n s t a n c e s , c o m p a n i e s h a d F I F O w o r k e r s o n s i t e f o r o v e r 5 m o n t h s c o n t i n u o u s l y

Yes11%

No89%


Do you of fer a cash (or lockdown) premium for staf f working extended swings?

Work Arrangements

I f yes, please describe:

| A d d i t i o n a l c a s h a m o u n t| P r e m i u m s r a n g e f r o m 2 5 % t o 5 0 % f o r a d d i t i o n a l t i m e w o r k e d| D e p e n d e n t o n s i t e / c o u n t r y

Do extended transit t imes & quarantine for F IFO workers get considered as Company t ime?

| W h e r e a p p l i c a b l e , t r a n s i t t i m e s a n d q u a r a n t i n e f o r F I F O w o r k e r s a r e i n m o s t c a s e s c o n s i d e r e d a s C o mpa ny t i m e i n w o rk c o un t ry a n d a s e m p l o y e e t i m e f o r q u a r a n t i n e i n h o m e c o u n t r y .

| W h e r e a h o t e l s t a y i s m a n d a t e d i n h o m e c o u n t r i e s , t w o t h i r d s o f c o m p a n i e s e n c o u n t e r e d w i t h t h i s s c e n a r i o p a y f u l l c o s t s .

Yes40%

No60%

Yes53%

No47%


Approx imate % of F IFO Employees Work ing f rom Home

Work Arrangements

For FIFO employees currently working from home, what is your plan to have them return to s ite?

| Only when governmentguidelines will allow it

| Only when travel restrictions are liftedand commercial flights serve locations

| Only when deemed safe by the company

| Once chartered flights can be arranged

Annual Leave

| O n e t h i r d o f r e s p o n d e n t c o m p a n i e s a c c r u e a d d i t i o n a l a n n u a l l e a v e e n t i t l e m e n t s a s a r e s u l t o f w o r k i n g a d d i t i o n a l h o u r s o r l o n g e r r o s t e r s

| 3 6 % o f c o m p a n i e s a l l o w s t a f f t o c a s h o u t a d d i t i o n a l a n n u a l l e a v e a c c r u e d

Alternative arrangements regarding f l ights for FIFO workers

| For companies required to make alternative arrangements mostly due to unavailability of commercial flights, the majority have utilized charter flights

3% 2%

25%

68%

59%

39%

29% 26%

17%

0%

13%19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

April 9, 2020 May 27, 2020 July 30, 2020

None Quarter Half Most / All


Work Arrangement Changes for FIFO in the Future

For how many months do you bel ieve the current worker arrangements can be sustained before it is no longer viable to do so?

Looking to the Future

11%

23%

9%

20%

37%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Up to 3 months 4 - 6 months 7 - 12 months Indefinite Unknown

| N e a r l y ¼ o f r e s p o n d e n t s b e l i e v e t h a t c u r r e n t w o r k e r a r r a n g e m e n t s a r e v i a b l e f o r t h e r e m a i n d e r o f 2 0 2 0 ( 4 – 6 m o n t h s )| S u r p r i s i n g l y , p r i m a r y c o m m o d i t y d i d n ’ t s e e m t o b e a d e t e r m i n i n g f a c t o r h e r e

31%

44%

56%

22%

0% 10% 20% 30% 40% 50% 60%

Going back to office and site as prior to COVID(no change)

Reviewing its offices and site infrastructure(moving away from open space, partitioning,

etc.).

Reviewing its need for office space (increasingwork from home option, etc.)

Reviewing its organisation design

| M o r e t h a n t w o t h i r d s o f c o m p a n i e s a n t i c i p a t e r e v i e w a n d c h a n g e s r e g a r d i n g w o r k a r r a n g e m e n t s i n c l u d i n g t h e i r o r g a n i s a t i o n d e s i g n , t h e n e e d f o r o f f i c e s p a c e a n d / o r o f f i c e & s i t e i n f r a s t r u c t u r e .

W h e n i s t h e c o m p a n y p l a n n i n g t o r e v i e w t h e c u r r e n t m e a s u r e s ?


H o w l o n g i s t h e c o m p a n y p l a n n i n g t o k e e p d o i n g w h a t i t i s d o i n g n o w ?

Those with plans generally intend to keep current measures between 3 and 12 months e.g.

Up to 3 months6 months3 – 6 months7 – 12 months

Many respondents stated an indefinite approach“As long as needed”“Until lockdown has ended”

The remainder largely were unknown or undetermined


| W h i l s t t h e r e w e r e m a n y d i f f e r e n t i n t e r v a l s f o r r e v i e w i n g c u r r e n t m e a s u r e s , i t w a s c l e a r t h a t i t w a s r e g u l a r

W e e k l yM o n t h l yC o n t i n u o u s r e v i e wA s s i t u a t i o n c h a n g e s / e v o l v e s

I s t h e r e a p l a n i n p l a c e s h o u l d t h e s i t u a t i o n r e m a i n u n c h a n g e d f o r 1 2 - 1 8 m o n t h s

Yes40%

No60%



Signif icant issues as i t related to FIFO Workers for Companies that had not been covered in the survey

| Monitoring mental health on sites for “stranded” employees

| Lack of medical services in country

| New employees unable to work during probationary period so were not evaluated before contract being confirmed

| Paid expatriates reluctance to return to work based on perceived risks

| Lost time due to quarantine requirements in-country

Documents

PowerPoint Presentation · 2020. 7. 31. · PowerPoint Presentation Author: Damian Cotellessa Created Date: 7/31/2020 10:48:21 AM