Human Rights and Labor Practices

“In Codelco, respect for persons is non-negotiable. Because of this, all people deserve fair and dignified treatment”. (Code of Conduct and Business Ethics).

 

Codelco, besides complying with national regulations regarding human rights, fully adheres to and respects the Universal Declaration of Human Rights, and has set a challenge of aligning all policies to the principles and considerations established in ISO 26000 standard on social responsibility.

 

HR1Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. The company implements good practices were projects are developed, including these criteria and, supervising that contracts or investment agreements comply with Chilean labor law

 

 

Code of Conduct and Transparency

4.6Processes in place for the highest governance body to ensure conflicts of interest are avoided. SO2Percentage and total number of business units analyzed for risks related to corruption. The Code of Conduct and Business Ethics – circulated among all collaborators, contractors, consultants, suppliers, and clients of the company – promote the values and basic conduct guidelines for all workers at every company unit.

 

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.

 

Any situation, behavior, event, or incident that presents or may present any risk to the life, health, safety and physical integrity of people or goods shall be investigated and sanctioned within the framework of this code.

 

SO4Actions taken in response to incidents of corruption.(R)

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 online. 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.

 

MM7The 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. All workers, independent of their contract or position within the company, have access to this resource. From October 2010 this service has even been 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.

 

Each complaint received is put through an analysis and investigation process, which includes a complete record for each case. Results are informed to each division’s authorities so they can adopt the corresponding measures. The report line is a secure and effective mechanism, which generated investigative processes for each of the 64

 

SO4Actions taken in response to incidents of corruption.(R) The report line is a secure and effective mechanism, which generated investigative processes for each of the 64 complaints received during 2010:

 

 

Number and type of sanctions during 2010

 

HR4Total number of incidents of discrimination and actions taken (R)

Training in Anti-Corruption Policies and Procedures

 

As is indicated in the Code of Conduct, corrupt practices are unacceptable at Codelco. We remark that no worker may use his or her position or condition as an employee to obtain undue benefits. Codelco employees are not allowed to accepti any kind of gift for any purpose, in relation to the performance of duties derived from their position.

SO3Percentage of employees trained in organization’s anti-corruption policies and procedures.(R) Within this context, during 2010, 771 top managers at Codelco were trained in company anticorruption policies and procedures.

 

Unionization and Participation

 

LA4Percentage of employees covered by collective bargaining agreements. 99.4% of Codelco working-level staff (rol B) is currently a member of unions, and approximately 71.4% of supervisors (rol A) are too. This indicates that global unionization reaches 94%, taking into account workers with permanent contracts.

 

LA9Health and safety topics covered in formal agreements with trade unions.The above has allowed the progress of a series of agreements that have characterized labor relations within the Corporation. Some of these refer to collective work agreements, housing plans, retirement incentives, career development, quality of life at work, safety, among others.

 

 

 

Pension Plans

 

EC3Coverage of the organization’s defined benefit plan obligations. (R) The Corporation complies with all obligations stipulated by the Chilean Pension System, withholding the corresponding premiums and subsequently delivering them to the Pension Fund Administrator (AFP) chosen by each employee.

 

Additionally, Codelco has voluntarily established well-structured personnel severance programs that include benefits encouraging early retirement. These benefits focus on improving economic conditions during retirement, pension benefits, scholarships for employees’ children, training to improve employability, and health coverage.

 

Codelco’s Largest Exit Plan in the Last Decade

An exit plan are measures geared towards ensuring company competitiveness in the long term adapting staff size and reducing average age among workers. In September 2010, a process focused on senior workers (close to retirement age) and workers with chronic professional illnesses was set into motion.

 

The exit plan consisted of a voluntary severance process, in exchange for a series of benefits previously agreed upon with the trade organizations, respecting and safeguarding the conditions agreed upon in collective negotiations.

 

It was a process developed independently at each division and headquarters, and ended with a total of 2,218 workers covered by the retirement plan at a cost of US$288 million. Benefits consisted of an economic incentive as well as a supporting incentive destined to the exiting workers’ prevision and health coverage.

 

 

 

Gloria Tallia, Vice-Presidency of Sales:

“This plan arrived at the most opportune moment”.
“I want to make the most of my free time, my home, my family, my granddaughter, reading and traveling…” Gloria always thought that when she reached retirement age, she would do so a happy woman, with the satisfaction of having fulfilled her commitments, and with the belief that room must be made for younger generations. She says she will always remember Codelco and her colleagues. “I am fond of this company, because this is where I was formed. My trajectory in Codelco has been amazing.”

 

 

Manuel Díaz Valdés, Ventanas Division:

 “I find that the opportunities offered by this plan are fabulous for me”.

Until December 31st, 2010, he was one of the eldest employees in the Division. He filed for the retirement plan and immediately decided to enjoy more time with his family, especially his parents, who are still alive and whom he had little time to visit. “Since I have been working I have been waiting for an opportunity to hang my hardhat and return home peacefully. I am leaving with sadness; 48 years is a lifetime and it has been the only place I ever worked.”

Quality of Work Life

 

LA8Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. (R) Within the framework of the Policy on Quality of Life, during 2010 Codelco carried out a number of programs directed towards workers regarding education, advise, and prevention and control of the risk of serious illness.

 

Policy on Alcohol, Drugs, and Tobacco (PADT):

During 2010, the program’s goal of early detection of drug and alcohol abuse was met, performing 3,042 tests and increasing average coverage to 16% of the corporate headcount. The program was supplemented with educational outreach material and massive education activities as well as activities directed at specific supervision groups and monitors.

 

We improved the divisional health services’ internal resolution capacity for dealing with severe cases, whereas complex cases were referred to specialized clinics or therapeutic communities under corporate agreements awarded by Codelco.

 

Promotion of Health and Healthy Lifestyles:

• MINSAL “healthy workplace level” certification was maintained in the Codelco Norte and Salvador divisions, whereas the El Teniente Division achieved the “companies who promote healthy lifestyles level” certification.
• Audiovisual material was updated and distributed, and e-learning courses on self-care, healthy lifestyles, and stress prevention and management were made available to employees.

 

Psychosocial Risk in the Workplace:

A pilot psychological counseling program via internet was implemented in the Corporate Headquarters.

 

From this experience we can suggest that implementing online counseling could benefit people who work in outof- reach areas, allowing us to quickly face psychosocial risk or labor stress situations.

 

Occupational Physical Activity, Sports, and Recreation:

During 2010 physical activity associated to the prevention and recovery from cardiovascular and musculoskeletal problems was prioritized, as they constitute a high rate of morbidity and medical leaves. Among other initiatives, we highlight the following:

• Physical activity for primary health care therapeutic groups in divisional health services.
• Educational campaigns on physical activity in at-risk work areas and groups.
• Fitness programs during the work day.
• Preparation of self-diagnosis tools and self-care guidelines.
• Sports and recreational activities in sport facilities, extended to family members and community organisms.
• Maintenance and improvement of available sport facilities in the divisions.

 

Healthy Eating Habits:

•  Weekly dietary guidelines were delivered through the intranet portal and email, and in Corporate Headquarters a cart with healthy food was implemented.
• Workshops on hygiene and food manipulation were given to cafeteria administrators at each division.
• A healthy lifestyle program and lectures on healthy diets were presented to Andina Division workers in weather “lockdown” shifts.

 

Ergonomics:

• This year, the Corporate Ergonomics Board, grouping professionals related to this discipline in the different Corporation divisions, developed the ergonomic criteria for LHD shovels and control rooms.
• A pilot project for the construction of a conceptual and methodological framework to analyze and diagnose organizational variables and workload was developed for the Andina Division Superintendence of Services.
• Codelco presented its Experience in the Development of Ergonomics at the VII Ergonomics Congress: Ergonomics in the Bicentennial, a Look into the Future.
• A second edition of the Introduction to Ergonomics course was prepared through e-learning, together with the University of Concepción, and was made available on the Codelco Campus Platform and also in CD format.

People Training and Development

 

LA11Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.The Corporation promotes the development of workers by means of a series of training programs focused on employee’s needs and areas of interest.

LA10Average hours of training per year per employee by employee category. During 2010, Codelco invested US $ 12.96 million in training, achieving a total of 13,339 workers trained through 6,641 courses.

 

 

Within the social responsibility framework , Codelco granted 2,000 Scholarships to the children of contractor and subcontractor company workers, to aid financing their higher education.
Using Sence surplus, Codelco finances the annual execution of social training programs, which benefit – among others – contractor and subcontractor company workers and their family members.

Investment and Procurement Practices

 

HR1Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. Codelco, in its investment and procurement practices, ensures that all contracts with contractor companies and with suppliers of goods and services contain clauses on human rights, adopting and supporting Chilean law as the minimum framework of action for establishing labor relations, and, furthermore, respecting social, civil and political rights, coherent with the Universal Declaration of Human Rights and the regulations of the International Labor Organization subcribed by Chile.

 

Management and Supervision of Contractor Companies

HR2Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. In Codelco, the main business activities are usually carried out by personnel subordinate to the Corporation; while other activities, such as the execution of works or service provision, are carried out by specialized contractor companies. The relationship with these companies is established under civil or commercial contracts.

 

Labor relations within contractor companies providing services or execute works for the Corporation are of the exclusive responsibility of said contractors.

 

In spite of the above, and to verify contractor company compliance with labor regulations, Codelco exercises information, withholding, and payment rights with regards to labor and social security obligations. Besides, Codelco takes all necessary means to effectively protect the life and health of workers who work within its facilities, regardless of their subordination.

 

The Corporation defines and executes on-site labor and social security supervision programs over the different contracts subscribed in divisions and Corporate Headquarters. During 2010, contractor companies showed a high degree of compliance with obligations.

 

Participation in Public Policies

 

National Regulations

Codelco participates in development and modification processes of environmental and occupational health and safety regulations, through the legally designed processes. The following are some of the regulatory processes in which Codelco has participated, directly or through industry organizations, during 2010:

• Development of the Calama particulate matter reduction plan (PM10) and Air Quality Management Plan.
• Discussion of mine closure regulation.
• Negotiations part of a legally binding international instrument for mercury control.
• Review of emission standards for wastewater surface discharges DS 90/2000.
• Development of an emission standard for copper smelters.

 

International Regulations

Codelco contributes to the discussion of international regulations through its participation in mining and metals industry associations (such as the International Copper Association and the International Molybdenum Association). These organizations coordinate the participation of the industry, provide authorities with available scientific information, and, provide the necessary studies and research to generate information.

 

Labor fines

As all companies, Codelco is required to comply with a rigorous labor law, being audited permanently by the corresponding organisms and sanctioned when noncompliance is detected.
SO8Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.El Salvador, Andina, Ventanas and El Teniente divisions were fined for noncompliance with applicable labor law: