Working conditions and employee development

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Best practice

KGHM Polska Miedź S.A. attaches enormous importance not only to production-related matters, it is also raising the standards of corporate culture to an ever higher level. Creating an environment free of any and all manifestations of discrimination is one of the constituent elements of these efforts. High standards are applicable to managing the business on an everyday basis. This means that workers are evaluated on the basis of their job performance, not on their gender, age, nationality or ethnic origin, for instance.

One of the elements of KGHM’s HR policy is gender equality in terms of access to jobs. This is a deliberate strategy to hire the best candidates. KGHM provides all people, men and women alike, identical conditions of professional development, opportunities to raise their qualifications and, above all, the very same career promotion path is open to all workers.

In its divisions in Poland KGHM employs more than 18 thousand people, with women forming a group numbering more than 1300 (7% of the staff). This stems from the distinct nature of the mining and metallurgical industry. Considering the challenging work conditions calling for extensive physical strength, historically men were chiefly hired. That is not just a Polish feature. The same situation is present in copper sector businesses and in the overall mining and metallurgical industry around the world.

Historically, there was a ban against employing women underground in mines in Poland since 1975, and this stemmed directly from the labour code. A more flexible approach has been in place only since Poland joined the European Union in 2004. This contributed to creating possibilities of educating women in mining vocations and their overall career path in this industry.

Every year KGHM invests in innovation and implementing modern technologies thanks to which one can realistically think about ratcheting up the hiring of women in production divisions. Women in KGHM work for instance in engineering positions and research units, and women are frequently encountered at the mine bottom where, for instance, they run production processes, tend to the security of raw materials extraction and conduct geological and investment work.

Today there is no shortage of examples of women holding high positions in KGHM’s hierarchy in Poland and abroad. The head of the Robinson mine in the US is Amanda Hilton, and Beata Chorągwicka-Majstrowicz is responsible for human resources in the Sierra Gorda mine in Chile. In Poland, the central directors for accounting services, communication and HR management are Agnieszka Sinior, Lidia Marcinkowska-Bartkowiak and Magdalena Wróbel. And they have gained international recognition. In 2018 Kamilla Słowikowska, a specialist in metallurgical technology in KGHM was recognized for her contribution to the development and education of young technical and engineering cadre in the publication entitled “Women in Mining”. At the time, that was the first case in which the global mining industry distinguished a woman from Poland.

KGHM Polska Miedź does not impose any employment-related obstacles on women and offers excellent conditions to develop their professional qualifications.

Work regulations at KGHM Polska Miedź S.A.

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KGHM Polska Miedź S.A. has in place Work Regulations which define the organization and management of the labour process as well as the related rights and obligations of the employer and employees. The regulations define the manner and rules of accounting for working time and granting of holidays, as well as the time and manner of remuneration. They define rules of occupational health and safety. Moreover, they describe the adopted practice with regard to rewards and distinctions, as well as punishments used for infringements of order and work discipline.

HR projects

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KGHM as a global company gives a unique opportunity to persons who want to gain access to state-of-the art technologies and equipment. They can do so by participating in the work of specialist project teams. Working in such a team is also a perfect opportunity to share knowledge and experience within the company. Below, there is a list of HR projects completed in KGHM Polska Miedź S.A. in 2021:

Competent in the mining and metallurgical sector. KGHM – a key partner in professional education Competent in the Mining and Metallurgical Sector. KGHM – a key partner in professional education is a Program under which, since 2018, KGHM supports education in professions which, according to the announcement of the Ministry of Education and Science of 27 January 2021, are the most important for Lower Silesia and which are also of key significance for our organization. The Program covers 9 schools from such towns as: Legnica, Bolesławiec, Lubin, Chojnów, Polkowice and Głogów. In 58 classes educating in such professions as: underground mining technician, electrical technician, electrician, mechatronic technician, operator of composite machines and processing devices, there are over 1900 students who can have practical training within the education in the Divisions of KGHM Polska Miedź S.A. Our patronage classes are attended by both boys and girls. This year, we were pleased to welcome over 400 first-graders with small gifts.

Since the program started, i.e. 2018:

  • educational grants were paid to the best students in the amount of PLN 441,500.00,
  • funds were transferred to purchase additional equipment and furnishing for school workshops and classrooms for teaching professional subjects in the amount of PLN 579,188.45,
  • 179 graduates were employed in Divisions of KGHM Polska Miedź S.A., where they can continue their professional development.

In school year 2021/2022:

  • 250 students are receiving practical professional education in 9 Divisions of KGHM Polska Miedź S.A,
  • a conference was organized under the slogan “Everything starts from a Master!” for Instructors of Practical Professional Education and Teachers of Professional Subjects from schools covered by the Program – a total of over 150 people, normally working in a different work environment, for which the common denominator is a STUDENT,
  • work started to develop Principles of Best Practice to come into force in KGHM Polska Miedź S.A. – continuation of activities in 2022.
Newsletter for Leaders A project performed in cooperation with the Communication Department. The period of pandemic created the need for strong support for team leaders by providing them with tools allowing them to help employees go through the hard times. The major target group consists of lower-level executives from the manufacturing area. The newsletter responds to questions that arise among the staff about the current situation in the Company and is a development guide which shows in a nutshell directions of activities in the area of specific tools, suggests professional literature, publications to study topics in depth individually. Up-to-date knowledge of the Company and the ability to develop the necessary leadership skills are an essential component of leadership competence, especially in the situation of intensive changes and turbulent times. The electronic form makes it possible to reach all the readers at the same time and to use the information provided at a time suitable to them.

 
Information hotline for employees and a mailbox @Pytania HR (@Questions HR) An initiative responding to an urgent need of all the Company’s employees and their families to get information about the situation at KGHM. The hotline was started when the pandemic situation was first announced in Poland, i.e. in March 2020, and it provides the opportunity to contact the employer to get information on procedures introduced in the Company to keep the employees safe and to ensure production continuity. The activity turned out to be particularly important when the hotline was first launched, giving employees the chance to present their fears and suggestions of safeguards to restrict the spreading of the COVID-19 virus among the staff and their families.
LinkedIn – #Rzecznictwo pracowników KGHM – #KGHM Lovers

 

 #Rzecznictwo pracowników KGHM – #KGHM Lovers is a project initiated in 2021, aiming to develop Employer Advocacy competencies and build the employer’s image in the social media by promoting the personal brands of KGHM employees and managers.
Digitalisation of HR processes In 2021, while increasing effectiveness of HR activities, the following processes were digitized: handling electronic workstation work cards, performance management, secondments (foreign and local trips, eKariera (e-Career) system and development of the eRekrutacja (eRecruitment) system). In 2021, two further modules were added to the already existing eRekrutacja (eRecruitment) module: staże (probationary period employment) and prace dyplomowe (graduate theses).
eDelegacje Application In 2021, the eDelegacje application was developed – at the end of the year, two functionalities were embedded in the production environment – handling foreign trips and the “local rides” process. Users have been trained on the operation of the application. The development of the application allows for increasing the effectiveness of handling the process and makes it possible to manage the area by accessing current data.

Engagement research In 2021, for the first time in KGHM research was carried out on engagement at the scale of the entire Head Office and Company Divisions. The strategic partner of the research was the University of Warsaw. 54.9% of our employees participated.
Implementation of leadership standards „Engaging Leader’’ in the Divisions of KGHM Polska Miedź S.A. In 2021, under this initiative, the results of research into focus groups were analysed in terms of key skills to be developed amongst the leadership staff in the Divisions. The result of this analysis was the start-up of development programs individually dedicated for specific managers or groups of managers.
Development Program Executive MBA in Innovation Management Referring to the idea of building and developing the professional competencies of the managerial staff, KGHM started an Executive MBA in Innovation Management Development Program. It is an original program of the exclusive partner of the world famous business school – IESE Business School.

The program enables its participants to utilise the resources of the largest research laboratory in Silicon Valley in terms of developing and implementing innovations.
Post-graduate studies Copper Leaders Research into family business responsibilities carried out by KGHM showed how important it is to facilitate employee development. As a result of this research, prestigious post-graduate management studies are organised for mid-level management. This project, called Post-graduate studies Copper Leaders, is based on MBA standards and comprehensively discusses the role of the leader in managing change, projects, people and finances.
Giants of KGHM Leader Academy In October 2021 a pilot program was commenced, dedicated to low-level managers, comprised of developing management skills. Under this Academy the challenge was taken up of dealing with the unstable pandemic situation by learning about the symptoms of depression and emergency aid methods.
Competence Academy 4E In 2021, actions were continued aimed at the Company’s managers related to operationalisation of the Strategy. This project is a response to the current business situation and is aimed at strengthening leadership skills, which are key from the point of view of future skills. Two editions of the Academy have been conducted, including the first which was conducted on-line. The first subject was #Strength_4E or the main pillars of the Strategy of KGHM and their significance during the pandemic. The second, „Let’s talk about the company”, initiated by engagement research, dealt with subjects related with creating a motivational working environment and the role of the manager in this process.
On-board training program for new employees In 2020 a watershed process of on-board training commenced, which was continued in 2021. Cyclical training (also online in form) for newly-hired employees is aimed at familiarising them with the company, their rapid integration into the organisation and a smooth transition to accomplishing tasks. During this training the subjects raised are related to the Mission, Vision and Strategy of our Company, the subject of activities and the production process, the rules governing the movement within the organisation, and HR questions.
E-learning language courses The pandemic year 2021 permanently solidified the foreign language services provided to all of KGHM’s employees and their families. English, German and Spanish courses are offered through dedicated language platforms available at any time and in any place.
Management of career paths and recruitment in KGHM Polska Miedź S.A. KGHM Polska Miedź S.A. ensures highly-qualified staff through an internal process and external recruitment. Care for the KGHM brand as a first-choice employer for both current as well as potential employees.

In dialogue with the labour market the image of a good employer is strengthened by displaying in job ads the organisational culture based on values and benefits for employees, i.e. the rich packet of benefits for parents, trainings and the possibility to learn foreign languages, subscription medical care, life insurance and the Employee Retirement Program.

Companies in Poland

In 2021, actions were taken in terms of global projects introduced in prior years, comprising all of the Polish companies of KGHM Polska Miedź S.A. Group, including recruitment principles using the e-Rekrutacja system.

In addition, each company advanced its own HR projects. Those involved areas such as enhancing professional abilities and qualifications, skills and improving productivity, alongside the utilization of motivational tools. To address problems associated with acquiring employees, cooperation was launched with external institutions: vocational schools, institutions of higher education and employment offices.

International companies of the KGHM Polska Miedź S.A. Group

KGHM INTERNATIONAL LTD.

In 2021, the following HR projects were advanced in the companies of the KGHM INTERNATIONAL LTD. Group:

in Canada and the USA Annual assessment and review of findings, including an analysis of wages, STIP and LTIP concerning Canada and the United States.

Support of the HR function in the process of replacing the entity which provides medical services for employees in the USA (Robinson and Carlota mines).

Replacement of the entity providing tax advisory services in employment-related matters.
in Chile Continuation of the program of professional integration compliance, pursuant to legal requirements in Chile – these laws serve a social function and require companies to employ people with certain disabilities. The company met this requirement with the support of an advisory firm by determining which employees have a certain degree of disability.

 

 

 

 

 

Management of career paths and recruitment in KGHM Polska Miedź S.A.

KGHM Polska Miedź S.A. ensures highly-qualified staff through an internal process and external recruitment. The company acts in accordance with due diligence rules and it keeps an electronic register of job candidates based on the advertisements published at https: //rekrutacja.kghm.com. The electronic registration of candidates comprises job vacancies announced by all Divisions of KGHM Polska Miedź S.A. In order to submit an application the candidate should complete the electronic template containing the necessary personal data and the requirements for the job for which the candidate is applying. Online registration is considered as valid if the application was completed within the set term, after entering by the candidate of all necessary data, confirmed in accordance with the information sent to the candidate by the system. KGHM Polska Miedź S.A. is not liable for any inability to register the application due to Internet failures, server overload, server failures and other cases of this type. Candidates are obligated to express consent to the processing of their personal data contained in the online application for the purposes of recruitment by KGHM Polska Miedź S.A., in conformity with the Act of 10 May 2018 on Personal Data Protection (Journal of Laws of 2018, item 1000) and the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons in connection with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (GDPR).

The Company ensures full discretion to candidates who submit applications and reserves the right to contact only selected persons. No information within the term set in the job announcement means that the application was not accepted. Candidates whose applications have been accepted are notified separately of the date of their job interview. Candidates who successfully pass their job interview may be, upon the candidate’s consent, entered in the Central Base of Candidates. The application is stored in the Central Base of Candidates for a period of 12 months. Changes and updates of the stored application are made on the candidate’s request. Personal data collected during electronic recruitment of candidates are used only for these processes and are not made available to third parties. The Candidate’s Communication via the https: //rekrutacja.kghm.com portal is encrypted with SSL protocol with the use of a certificate issued by a trusted certification centre. The electronic recruitment system in KGHM provides for the safety of the candidates’ stored data and for compliance with the requirements of the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/ EC (General Data Protection Regulation, hereinafter: GDPR). The candidate’s attempts to obtain access to the server, attacks blocking its functioning, breaking through the security mechanisms, interception, theft or destruction of the data of registered candidates are prohibited. Any such action results in disqualification from the recruitment process.

Training Policy in KGHM Polska Miedź S.A.

The pace of changes on the labour market in 2021 was greatly and irreversibly affected by the pandemic situation caused by the COVID-19 virus spreading very fast all over the world. In this context, HR departments stared to function in a state of constant preparedness. The pandemic surprised all employers and showed clearly the necessity to adapt quickly to sudden and unpredictable changes, accelerated digitalization and automation of management and administrative processes and transformation of on-site training into e-learning courses. The need to adjust to the new conditions, with employee health in mind, made it necessary to introduce remote or hybrid working, increased the skill of agile management and managers’ activity, contributed to caring for the employee’s well-being, created the need for continuous dialogue with co-workers as well as cooperation and leadership based on empathy and involvement.

KGHM, as a modern and socially responsible organization, adjusted to the current market requirements in an exemplary fashion. KGHM has been successful as a workplace which respects the contribution of factors for variability and diversity management, development of the employee’s key competences and careful and efficient coordination of training and development activities.

A horizontal HR model has been fully accepted and applied management system in which care has been taken to speed up digital training processes based on the Company’s long-term values and using cost-effectiveness of training.

The HR Policy is constantly evolving. Unified processes and tools are implemented to support long-term development of skills, new solutions for employee performance and assessment management, as well as modern project, program and portfolio systems. In view of the Company’s swift development, it has become a priority to identify the best employees efficiently, and then systemically prepare them to assume key roles and functions in all business operations.

In 2021, employees of KGHM were provided with:

  • the opportunity to pursue educational programs to develop professional, managerial and specialist skills,
  • the possibility of improving their qualifications through co-financing of university education, including:
    • co-financing of MBA studies,
    • doing group postgraduate management studies under the name “Copper Leaders” in cooperation with the University of Warsaw,
    •  co-financing of individually chosen post-graduate studies,
    • co-financing of higher education,
  • improvement of language skills of all Company employees thanks to access to e-learning tools,
  • implementation of the performance management process for managers and development of an employee assessment system.

The dynamics of changes in the world in recent years stressed the great role of HR and training services in the Company. It was observed that HR not only provides administrative services to its employees but also, perhaps first of all, collects and analyses data, talks and discusses, supports and suggests career paths as well as responds to challenges of the modern labour market, creating and predicting the future so as to get ahead of other companies on the labour market and prevent them from “taking over” an employee.

In 2021, the thematic scope of training and conferences in which KGHM employees participated was extended. They were provided with opportunities to acquire knowledge and competencies in the area of climate policy, sustainable development, corporate governance, compliance management or learning Spanish, in accordance with the conducted mining and production activity in the international entities belonging to the Company.

Training processes continued to be standardized and made uniform in all the KGHM Divisions and the Head Office. To a large extent, the transfer of paper documents was reduced by introducing electronic signature authorizing forms, applications and normative acts in the Company. Work was done to automate the entering of hard copy data on acquired and supplemented professional qualifications of employees. The purpose of employee development activities in KGHM in 2021 was to retain and improve human capital and to manage the Company’s intellectual capital taking into account the strategic directions in this process: 4E (Elasticity (flexibility), Efficiency, Ecology – safety and sustainable development, E-industry) as well as its long-term development plans through:

  • Securing fulfilment of the requirements defined in regulations by the employees’ participation in periodic training courses on occupational health and safety, courses and examinations entitling to take up jobs in underground mines which require specialist actions as well as other jobs in the Company,
  • Improving employee skills by the participation in training courses and other development activities, with particular focus on linguistic, managerial and interpersonal skills, as well as training on business process orientation in management,
  • Improving the qualifications of the Company’s employees and changing their education structure by continuing to co-fund graduate and post-graduate studie

The employer ensures a high level of training, in particular by aligning the contents of the training courses with the business goals. When planning activities, the Company focuses on ensuring that they fit in the best possible way to the execution of the adopted strategic priorities. Systemic competence development activities are performed by a centralized unit specialized in this area. Development needs are established regularly and constitute the basis for building a training plan and calculation of the resources needed for its performance.

These actions are performed on the basis of the procedures existing in the Company and are registered for purposes of internal and external accounting. Both the skills development activity and the utilization of the allocated budget are regularly monitored and the results are reported.

In 2021, the number of employees participating in a single training event was 36,277. Employees were afforded the opportunity the develop their skills through co-funding of the courses of higher study, post-graduate studies and MBA studies. 124 persons benefited from co-funding of their studies in 2021. The development of skills through the co-funding of higher courses of study spanned the following:

  •  MBA studies – 18 people,
  • doing group postgraduate management studies under the name “Copper Leaders” in cooperation with the University of Warsaw – 41 people,
  • individual post-graduate studies – 47 people,
  • higher courses of study – 18 people,
  • Implementation Doctorates Program – 31 PhD students from two editions (edition I – 21 participants, edition II – 10 participants). The first defences of PhD students of the first edition have been planned for September-October 2022.

A survey of family responsibility of business performed at KGHM in 2021 showed how important it is to make it possible for employees who feel such a need to grow. The respondents indicated that leadership skills should be developed even at the lowest positions, therefore prestigious post-graduate management studies were organised for middle-level managerial staff. The project was named Post-graduate Studies – Copper Leaders. The project is based on MBA standards, discussing comprehensively the role of leader in managing change, projects, human resources and finance.

Referring to the idea of building and developing the professional competencies of the managerial staff, KGHM started an Executive MBA in Innovation Management Development Program. It is an original program of the exclusive partner of the world famous business school – IESE Business School. The program is taught by outstanding professors of leading business schools in the world based on long-term experience in training managers. The program shows the participant the most recent achievement in the field of management as well as technologies of great importance for business models, now and in the future. The program allows the participants to have access to resources of the biggest research laboratory in the Silicon Valley in the field of innovation development and implementation. Experienced experts will provide advice to the participants about how to prepare and implement innovations at KGHM. The program is a platform for sharing experience for the most important managers in the KGHM Group. The program also supports the decision-making process, due to which it contributes to the achievement of greater benefits for entities from the KGHM Group. In 2021, 27 participants joined the development program.

Observing a significant decrease in the attachment of employees to the employer on global markets, KGHM has responded to this trend by offering a wide range of employee benefits, which attach employees to the company by investing in their talent and potential, taking care of their health and financial security, but also allowing their families to take advantage of non-salary benefits, such as free language courses for an additional person named by the employee. Remote participation in the courses brought benefits mostly to employees on blue-collar positions, working within a multi-shift work system.

The pandemic year 2021 permanently solidified the foreign language services provided to all of KGHM’s employees and their families. English, German and Spanish courses are offered through dedicated language platforms available at any time and in any place. The greatest number of participants chose English. The offer was extended to include a course of Spanish, which is necessary for tasks with the Group’s international assets. The courses are non-salary benefits, fully financed by the employer, contributing to an improvement of the Company’s image on the labour market.

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In 2021, online courses were conducted in the Company included training and professional courses as well as courses in the areas defined by internal normative acts. The proposed e-learning training courses are one of the forms of instruction focused on expanding knowledge. A great advantage of e-learning is the possibility of training a large number of people in a short time.

In 2021, 9,469 employees of the Company attended e-learning courses. All the e-learning courses dedicated to the Company’s employees include interactive elements to facilitate comprehension and committing the needed information to memory. E-learning training courses provide for an interactive form of learning and contain numerous additional materials, short video clips, case studies and decision-making exercises.

The following e-learning courses were provided:

  • Training on ethics:
  • Training for employees in managerial jobs (people who manage other people) on ethics, prevention of irregularities in the company (in particular, corruption, abuse and discrimination) and handling whistleblower reports,
  • Training for employees in white-collar and blue-collar positions (people with computer access) on ethics, prevention of irregularities in the company (in particular, corruption, abuse and discrimination) and submitting whistleblower reports concerning irregularities utilizing the channels in place in the company,
  • Training on Information Security Policy (Information Security Policy based on the ISO 27000 standard),
  • GDPR training,
  • Training on recognizing a conflict of interest and preventing it,
  • Training in mine rescue for managers and supervisors of underground mines who are not members of rescue teams,
  • Periodic OHS training,
  • for employers and individuals supervising employees,
  • for administration and office staff,
  • for engineering and technical staff.

The introduction of e-learning training on the Intranet platform made it possible to provide free access to training especially to blue-collar workers who do not have a computer workstation at work. This kind of training aims to make everybody aware what social risks are entailed by the failure to observe ethical principles at work, getting involved in corruption activities, cybersecurity and OHS threats, corruption, lack of transparency in relationships with clients, irresponsible energy management, failure to comply with Circular Economy or violations of human rights.

 

 

 

 

 

Occupational safety

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The life and health of employees and workplace safety in general is the chief priority in the hierarchy of values of the KGHM Polska Miedź S.A. Group. For several years the Company has advanced its vision of „Zero accidents due to human and technical errors, zero occupational illnesses among our employees and contractors”. In 2021, the Employee Safety Improvement Program „Think About The Consequences” continued as well as the Program to prevent the most common hazards to workplace safety by utilising innovative technology, in accordance with the updated Company Strategy to the year 2023.

The Company applies high OHS standards as demonstrated by the ISO 45001:2018 certificate, both towards its own employees as well as towards those providing services on the grounds of KGHM Polska Miedź S.A. The Occupational Health and Safety Policy of KGHM Polska Miedź S.A. was approved for application by Resolution no. 318/X/2020 adopted by the KGHM Polska Miedź S.A. Management Board of 17 September 2020. All work stations have identified threats. The Company has assessed occupational risks and updates  them continually. Working environments are continually monitored and periodic reviews and potential threat assessments are conducted, as well as reviews of equipment and required technical checks and approvals.

Employees undergo systematic training and continually enhance their qualifications. The Company immediately implements new regulations and legal requirements regarding occupational health and safety.

In 2021, in spite of the high threat caused by the external risk following from the coronavirus pandemic, the Company recorded once again a significant reduction in the number of workplace accidents* measured year over year, from 213 to 165 injured persons (down by 48 accidents). The number of workplace accidents in 2021 in KGHM Polska Miedź S.A., excluding accidents due to natural causes (roof collapses, destressings, tremors, rock falls) was lower by 44 (a decrease from 194 to 150). The vast majority of workplace accidents (around 96.4%) qualified as light injuries, caused mainly by contact (striking) with or by moveable/ immoveable objects, loss of balance by employees, as well as the breaking off of pieces of rock from the rockmass.

The mining operations of KGHM Polska Miedź S.A. are associated with natural threats. In particular they arise from the occurrence of mining tremors and their potential impact in the form of roof and wall collapses and de-stressings. These are very important from the safety point of view, as their occurrence can lead to serious or even fatal injuries as well as damage to underground machinery, equipment and infrastructure, along with production downtimes. The Company for many years has carried out a variety of preventive actions in its mines involving the intentional provoking of roof collapses and rock falls, comprising systematic seismological observations, on-going assessment of the rock mass and the marking off of areas of particular threat of roof collapse. The size, shape and number of chambers and inter-chamber pillars is selected, as well as the most advantageous direction of mine work advance and the optimum order of ore selection to minimise local concentrations of stress in the rock mass. So-called active methods of preventing uncontrolled roof collapses and rock falls are also applied, based on provoking dynamic events through mass blasting of mining faces and through  blasting to release stress in the orebody or its roof.

In 2021, in the mines of KGHM Polska Miedź S.A. a total of 15 workplace accidents were recorded, resulting from natural hazards from the rockmass. These incidents represented 12.6% of all workplace accidents in the mines during this period. The Company is continuously improving its safety record in the mining of the copper ore deposit.

The LTIFRKGHM ratio (Lost Time Injury Frequency Rate KGHM) in 2021, which is the total number of workplace accidents* in the Company, which is the number of accidents per million hours worked by KGHM Polska Miedź S.A. employees, was at 5.63 and at the same time it was 69.6% less than the 2010 figure and 23.0% less than the 2020 figure (7.31). This is the best result to date in the Company’s history, one achieved thanks to the attitude and commitment of all of the Company’s employees.

LTIFRKGHM IN KGHM POLSKA MIEDŹ S.A.

Changes in the LTIFRKGHM ratio over time are presented in the figure below:

KGHM INTERNATIONAL LTD. in 2021, despite the continuing difficult conditions imposed by the pandemic, once again recorded its best result in history in terms of occupational health and safety, improving on the result from 2020. In 2021, a total of 11 incidents at work were registered in the mines supervised by KGHM INTERNATIONAL LTD. in Canada and the United States of America compared to 19 registered in 2020, while the TRIR ratio amounted to 1.00

In Chile, KGHM Polska Miedź S.A. conducts mining operations in two entities, which have separate systems of OHS management adapted to the legal requirements and mining conditions in this country. These systems encompass both the employees in these entities as well as sub-contractors, and are aimed at achieving the long-term vision “Zero harm”. In KGHM Chile SpA, which oversees the Franke mine, and which also engages in its own exploration and other activities, only a single workplace accident was recorded in 2021 (compared to 4 registered in 2020), with a TRIR ratio of 0.12. In Sierra Gorda SCM (joint venture), nine workplace accidents were recorded in 2021 (compared to 11 registered in 2020), with a TRIR ratio of 0.20.

In 2021, in the entities in which the KGHM Polska Miedź S.A. Group conducts mining operations in Canada, the United States and Chile, compared to 2020, a total of 13 fewer workplace accidents were registered (a drop from 34 to 21 workplace accidents). The consolidated TRIR ratio (Total Recordable Incident Rate) for these operations reached 0.32.

Trir in KGHM INTERNATIONAL LTD.

This was 0.20 lower compared to 2020 and at the same time 90% lower than the level recorded in 2010, which is shown in the chart below:

OHS golden rules

KGHM Polska Miedź S.A. has prepared and applies the Golden Rules of OHS, as presented below:

I think before I act
I use appropriate protective equipment
I come to work rested and
sober, and not under the
influence of intoxicants
I work with properlyfunctioning tools, machinery and equipment
I react when I see unsafe
behavior or situations
I am aware of the
occupational hazards and
risks
I maintain harmony and
order at my workplace
I think of my family

The Occupational Safety Council in KGHM Polska Miedź S.A. was established on 13 March 2013 at the initiative of the KGHM Polska Miedź Management Board and representatives of trade unions. The Council operates on the basis of principles of mutual trust and cooperation. The Occupational Safety Council is an opinion-making and advisory authority with respect to matters of occupational safety and health.

The Council consists of 40 persons, including representatives of the employers (20 members), and 20 representatives of social side, i.e. the trade unions operating in KGHM Polska Miedź S.A. which are a party to the Company Collective Bargaining Agreement and the Company Voluntary Labour Inspectors in KGHM Polska Miedź S.A.’s Divisions.

The scope of the Council’s operation covers:

  • Periodic assessment of occupational safety and health (not less frequently than once a year),
  • Presenting an opinion on prevention activities taken up in KGHM Polska Miedź S.A., following from an analysis of potential accidents, workplace accidents and preventing workplace accidence and occupational diseases.
  • Presenting conclusions on improving working conditions and cooperating with the employers to discharge their duties relating to occupational safety and health,
  • Presenting conclusions on cooperation between the Employer and representatives of employees to prevent occupational risks and improve occupational safety and health
  • Presenting an opinion on the actions taken by all the participants of the occupational safety process for active participation of employees in the creation of proper conditions for occupational safety and health and their observance.

The Council meetings are held at least once a year. Because of the epidemic connected with the spread of coronavirus and actions taken by the Company aimed at reducing reduce the risk, on-site meetings of the Council have been suspended. The Council is informed once a year of the current OHS situation in KGHM Polska Miedź S.A. It should be also noted that an ongoing assessment of occupational safety in the Company is made at weekly meetings of the Vice President of the Management Board (Production) and at monthly meetings of the Management Board with the management of all the Divisions. Regular meetings on the above area are also organized with the mining and state supervisory authorities.

Best practice

Gold for KGHM

Gold for KGHM – the copper giant is a Safe Work Leader

The improvement in work safety and conditions at KGHM has been recognized once again – the Company started 2021 holding the Gold Card as a Safe Work Leader. The Gold Card as a Safe Work Leader is awarded for a period of two years by the Safe Work Leader Selection Committee operating in the Central Labour Protection Institute in the State Research Institute (CIOP). KGHM received its first card back in 2000, and its first gold card in 2002. Since that time the Company has constantly retained its position as a safe work leader.

KGHM has belonged to the Safe Work Leaders Forum since 2000. Its establishment was a joint initiative of the Central Labour Protection Institute in the State Research Institute and business circles representing various industries. The Safe Work Leaders Forum now consists of 160 businesses from across Poland. This forum is a platform for exchanging experience and knowledge on occupational health and safety among scientific communities and businesses.

– “Occupational health and safety means the daily monitoring and mitigation of the risk of injuries and diseases that may appear in the process of labour. It also involves alleviating the effects of these events, inculcating safe habits and constant improvement. In 2021, under the motto of ‘Be responsible for others’ we have continued our activities, striving in particular to continue reducing the number of workplace incidents due to technical, organizational or human causes  – said Adam Chyliński, Director of the OHS and Occupational Risk Department in KGHM.

KGHM belongs to the prestigious group of 27 businesses forming the top players in occupational safety and health in Poland known as the Gold Leaders. It is the only representative of underground mining and metal processing in this group.

Relations with the trade unions

  • 102-41
  • 407-1

In 2021, w KGHM Polska Miedź S.A. continued its dialogue with the trade unions. The most important event with respect to relations with the trade unions was the signing in February 2021 of an agreement on wages and employee benefits for that year. The main point of the agreement was the signing of an additional protocol to the Collective Labour Agreement (CLA) for the Employees of KGHM Polska Miedź S.A., which among others increased basic wage rates by 5.2% as at 1 January. Another point in the agreement was setting the minimum level of upward employee categorisation at 15%.

Given the restrictions related to the COVID-19 epidemic, some of the meetings were held through teleconferences. Apart from the usual subjects arising from the Collective Labour Agreement for the Employees of KGHM Polska Miedź S.A., the discussions involved the actions taken by the Company as regards employee health and safety.

During wage negotiations with the trade unions which were held from 25-27 January 2022, wage and employee benefits agreements were reached and signed as well as an additional protocol to the CLA introducing the following wage elements in 2022:

  • an increase in the monthly basic wage rate by 10%,
  • upward employee categorisation covering 15% of employees,
  • payment of a one-off gratification in the pre-tax amount of PLN 2 thousand per employee, contingent on:
    • achievement of planned production in the first half-year,
    • continuation of the average copper price at a level not lower than planned in the budget

In accordance with the requirements of the Good Practices of GPW Listed Companies, KGHM Polska Miedź S.A. discloses its expenditures related to the functioning of trade unions in the Company. In 2021, they amounted to PLN 12,095,619, of which PLN 11,477,698 was associated with the remuneration of trade union activists released from the obligation to provide work under the Trade Unions Act of 23 May 1991 (Journal of Laws 2019 No. 263, consolidated text of 12 February 2019).

With few exceptions, trade unions are active in the Group companies in Poland. In 2021, talks were held in these companies with the trade unions regarding questions of remuneration, rules for granting bonuses, the level of pension plan contributions, employment conditions and social matters. In most cases they concluded with the signing of agreements and additional protocols to the Collective Labour Agreements and with changes to remuneration regulations. In companies exposed to the impact of the coronavirus epidemic, agreements were entered into with the trade unions regarding the economic shutdown and the means of remunerating employees during this period.

In 2021, within the group of companies in Poland, a collective dispute was commenced but also concluded – in the company „Energetyka” sp. z o.o. However, a collective dispute initiated in prior years in the company MERCUS Logistyka sp. z o.o. remained unsettled. The above can be described as follows:

  • „Energetyka” sp. z o.o. – On 15 April 2021 a collective dispute was initiated by the trade union Zakładowe Organizacje Związkowe. Given a lack of agreement during negotiations, the dispute continued with the participation of a mediator designated on 1 June 2021. As a result of the mediation carried out, the parties concluded the dispute with the signing on 25 June 2021 of an agreement regarding the disputed questions.
  • MERCUS Logistyka sp. z o.o. – in 2021 the collective dispute initiated in 2019 remained unsettled. In 2021 negotiations in respect of this dispute were not continued but instead were postponed, however agreements were reached as regards new questions raised during the year, involving questions of remuneration and apart from remuneration.

KGHM INTERNATIONAL LTD.

In the companies of the KGHM INTERNATIONAL LTD. Group in Canada and the United States, the interests of employees are represented by trade unions only in the assets in the Sudbury Basin in Canada, while employees in the Robinson and Carlota mines and at the Ajax and Victoria projects are not represented by trade unions. In the Sudbury Basin, the trade union United Steelworkers Local 2020 (USW Local 2020) represents 95 employees.

In the companies of the KGHM INTERNATIONAL LTD. Group in South America, there is trade union representation in the Franke mine. Two independent trade unions are active at the mine covering altogether 295 employees

In the companies acting under the DMC Mining Services brand, employees are not represented by trade unions.

In 2021, in the Sudbury Basin, cooperation continued with USW Local 2020 to ensure adherence to the Collective Labour Agreement, which is in force until 30 June 2023. In the past year a substantial amount of time was dedicated to consultations and cooperation with the Union to ensure the safety of the employees of KGHM INTERNATIONAL LTD. while crossing the picket line of striking employees of the neighbouring mine belonging to the company Vale and to enable travel to the Levack mine. Throughout the year there were also numerous discussions with USW Local 2020 on protecting the safety of the employees during the strengthening of the COVID-19 pandemic and the increases in infections in the region. The relations of KGHM INTERNATIONAL LTD. with USW Local 2020 are very important for the continued functioning
of KGHM INTERNATIONAL LTD. in the Sudbury Basin, and both parties are striving to ensure that
communication remains full of mutual respect. Moreover, KGHM INTERNATIONAL LTD. supports First Nations in the Sudbury Basin through its obligations expressed in the Impact Benefit Agreements and Understanding Agreement, sharing information about the environment, potential business opportunities and job offers with each of the First Nations with whom the agreement has been signed, as well as continuously responding to any questions or concerns, thereby strengthening the ties between the First Nations in the region and KGHM INTERNATIONAL LTD.

In the Franke mine the parties to the collective labour agreement negotiated an agreement regarding the system of working time beyond the basic working time standard.

Sierra Gorda S.C.M.

There are three trade unions active in Sierra Gorda S.C.M. representing 1282 employees. Relations between Sierra Gorda SCM and its three trade unions are conducted in a very constructive and positive working atmosphere. The successful cooperation results among others from weekly meetings on various organisational topics.

In 2021, early collective negotiations were successfully held with all three unions. The successful conclusion of these negotiations given the complex pandemic and social situation, against a backdrop of rising copper prices, was a historic event in Sierra Gorda S.C.M., as well as being a seldom-seen situation in the Chilean mining industry. Sierra Gorda S.C.M. enjoys a reputation as a company engaged in dialogue which respects its trade union representatives.

Best practice

Employee-friendly Employer

Employee-friendly Employer – a member company of the KGHM Group receives a prestigious certificate

In 2021 a statuette symbolizing the Employee-friendly Employer certificate was bestowed on KGHM ZANAM – Poland’s President Andrzej Duda handed this award conferred by NSZZ Solidarność to the Company’s Management Board.

One of our overriding objectives in HR policy is to maintain partnership relations between the employer and the employees. Receiving this certificate during the pandemic has special meaning for us. During this difficult period we managed to keep the same number of employees. On top of that, we raised wages thanks to our robust financial standing. In the future, we plan to continue pursuing employee-friendly initiatives –  says Bernard Cichocki, CEO of KGHM ZANAM

KGHM ZANAM is one of the largest manufacturers of machinery and equipment for the mining sector in Poland. The company also manufactures equipment used in transloading systems, transport units and open pit mines. The company also produces rock and cast iron molds. In 2020 Oddział Górniczy KGHM Polkowice-Sieroszowice won this award.

This competition is organized by NSZZ Solidarność under the honorable patronage of the President of Poland. The purpose is to advance outstanding employers applying best practices relating to the observation of labour law regulations, especially through employment stability, adherence to the rules of occupational safety and health and the right to form trade unions. This certificate can be used for a period of three years.

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