Human rights and labor practices at Codelco
(HR1) Percentage and total number of contracts and of significant investment agreements that include human right clauses or that have undergone human rights screening. In Codelco, in addition to complying with national regulations in human rights issues, we fully adhere to and respect the Universal Declaration of Human Rights. We implement best practices everywhere we develop projects, making sure, in turn, that worker contracts or investment agreements comply with the Chilean labor law, which includes human rights clauses.
VALUES, ETHICS AND BEHAVIOR IN THE WORKPLACE
Codelco Lives its Values
The first year of our Value Statement was focused on its dissemination, socialization, and reflecting on its contents. This year, we have sought to move toward its realization in each working day. For that reason, in October we had “Value Week”, with reflection activities in all divisions and work centers on a day especially dedicated to this purpose.
In this celebration, all workers in the company had the opportunity to put forward a co-worker who represents Codelco’s values, which allowed us to discover the enormous amount of workers who embody the Corporation’s values. Finally, a worker from each division, Project Vice Presidency, and the Corporate Offices was selected, and was awarded with the “Codelco Pride” award in a ceremony which closed the week.
Code of Conduct and Business Ethics
(4.8 / HR10 / 4.6 / SO2)
4.8 Internally developed statements of mission or values, codes of conduct, and principles
relevant to economic, environmental, and social performance and the status of their
implementation.
HR10 Percentage and total number of operations that have been subject to revisions and/or
impact assessments in human rights matters.
4.6 Processes in place for the highest governance body to ensure conflicts of interest are
avoided
SO2 Percentage and total number of business units analyzed for risks related to corruption.
In 2011 a new version of the Code of Conduct
and Business Ethics was launched, which is aimed at all those
who work in or for Codelco, i.e. own workers, collaborators, upper
management, directors, contractors, consultants, etc., at
every company unit. It’s a document aligned with international
standards in the areas it addresses, and helps us to realize our
Value Statement in our day to day work, since our values are
translated into behaviors and attitudes so that we can organize
our management and practices, putting them into the core of our
decisions.
Conducts governed by this code are those related to respect for people, the environment, and the community, as well as practices related to corruption, discrimination, conflicts of interest that attempt against the rights of the Corporation, and involvement of the company in political activities. When any situation or conduct violates any of the areas described in this document, it shall be investigated and, if warranted, sanctioned within the framework of this code.
(HR1)
Percentage and total number of contracts and of significant investment agreements that
include human right clauses or that have undergone human rights screening.
Codelco also respects Convention 87,
on Freedom of Association and Protection
of the Right to Unionize, and
Convention 98 on the Right to Organize
and Collective Bargaining, subscribed
by Chile and the International Labor
Organization (ILO).
Report Line
The Report Line is a space dedicated to reporting noncompliance
with the Code of Conduct and Business Ethics, which can be
accessed by telephone or on line. It is operated from abroad by
the specialist company EthicsPoint, guaranteeing security and
confidentiality of the information received. It operates 24 hours
a day, 7 days a week, 365 days a year.
(MM7 / HR10)
MM7 He extent to which grievance mechanisms were used to resolve disputes relating to land use
customary rights of local communities and Indigenous Peoples, and the outcomes.
HR10 Percentage and total number of operations that have been subject to revisions and/or
impact assessments in human rights matters.
All workers, independent of their contract or position
within the company, have access to this resource. Furthermore,
this service is extended to the whole community. Any person who
considers that someone in the company, employee or contractor,
has infringed the regulations stipulated by the Code of Conduct
and Business Ethics can use this resource.
(HR11) Number of complaints regarding human rights that have been submitted, actioned, and resolved through formal conciliatory mechanisms. The report line is a secure and effective mechanism, which generated investigative processes for each of the 120 complaints received during 2011.
(SO4 / HR4)
SO4 Actions taken in response to incidents of corruption. (R)
HR4 total number of incidents of discrimination and corrective actions taken. (R)
Counting closed cases and sanctioned cases, four corruption
incidents and five discrimination incidents were recorded.
Within the framework of Law 20,393, which regulates companies in matters of bribery, money laundering and terrorist financing, we have implemented a crime prevention model in our Chilean divisions and subsidiaries, which allows mitigating the risk of committing crimes under this law. In addition, the Board of Directors approved the “Crime Prevention Manual” that defines policies, procedures, organizational and functional structure, roles and responsibilities within this model, which will undergo its certification process during 2012.
Training in anti-corruption policies and procedures
(SO3)
Percentage of employees trained in organization’s anti-corruption policies and procedures. (R)
No worker may use his or her position or condition as an
employee to obtain undue benefits. Codelco employees are not
allowed to accept any kind of gift for any purpose, in relation to
the performance of duties derived from their position. Within
this context, during 2011, around 1,500 workers were trained in
company anti corruption policies and procedures.
UNIONIZATION AND PARTICIPATION
We want to occupy a prominent place in the industry, by displaying all our ability to work on the basis of a harmonious relationship with our workers, while respecting the role of trade union organizations and trade unions as their legitimate representatives, with the belief that their quality of life constitutes a fundamental aspect of the concept of quality and business excellence.
(HR5 / LA4)
HR5 Operations identified in which the right to exercise freedom of association and collectivebargaining
may be at significant risk, and actions taken to support those rights.
LA4 Percentage of employees covered by collective bargaining agreements.
In Codelco there is a high degree of worker unionization.
Codelco respects the warranties and facilities stipulated under
Labor Law regarding unions and their leaders. Thus, 99.4% of
worker-level staff (rol B) is currently a member of trade unions,
and approximately 52.4% of supervisors (rol A) are as well. In
total, unionization reaches 86.6 % of the Corporation’s direct
workers, distributed among 26 unions.
(LA5) Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. Employees participate in the Codelco Board of Directors through two representatives, positions represented in 2011 by Raimundo Espinoza Concha, representative for the Copper Workers Federation (FTC), and, until May of 2011, Jaime Gutiérrez Castillo, representing both the National Association of Copper Supervisors (ANSCO) and the Copper Supervisors Federation (FESUC). They also participate through unions and and joint committees, instances that have a direct relation to their interests as workers.
There are also permanent, formal instances for communication and team work between Codelco employees and its management. Through these, employees are in direct knowledge of any changes in the organization or its management that is reached by the Board.
Two important agreements were signed in 2011 between Codelco and its workers: the “Framework Agreement: Labour Dialogue for Codelco’s Future and Competitiveness” with the Federation of Copper Workers (FTC) and the “General Agreement: The Future of Codelco is a Shared Responsibility” with the Codelco Supervisors and Professionals Federation Union (FESUC). These agreements recognize the workers and trade unions’ contribution in responding to the Corporation’s current and future challenges, and Codelco’s leadership in strengthening labour dialogue, exercising freedom of association and collective bargaining.
In addition, we developed 7 collective bargaining processes in the Radomiro Tomic (1), Chuquicamata (1), El Teniente (3), and Ministro Hales (1) Divisions, and in the Corporate Offices (1), which gave rise to the respective conventions and collective labor agreement.
WORKER TRAINING AND DEVELOPMENT
We want to maximize the capabilities of each worker in Codelco. We attract, develop and promote talent. We believe that every person has enormous potential they can put at the country’s service, and it is our responsibility to create the spaces for them to develop (Code of Business Conduct)..
(LA10) Average hours of training per year per employee by employee category and gender. We promote the development of our employees through a series of training programs aimed at the each employee’s needs and areas of interest. During 2011, 13,879 workers were trained in 7,281 courses, which meant an investment of US$ 13.86 million.
