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Relationships with unions

Relationship with unions

Drummond Ltd. confirms its commitment to continue working for economically viable, environmentally sustainable and socially responsible mining, through the operational management of its Corporate Social Responsibility Strategy, which contributes to meeting the Sustainable Development Goals. Through its management of its relationships with unions:

CSR STRATEGY CONTRIBUTION TO CAPACITY-BUILDING

CONTRIBUTION TO MEETING SUSTAINABLE DEVELOPMENT GOALS

PEACE AND HUMAN RIGHTS

Strengthen stakeholders’ capacities to build a peaceful, just, responsible society that promotes respect for human rights. • Training and promotion • Peace and social dialogue • Coexistence and conflict resolution

ENVIRONMENTAL PERFORMANCE

Strengthen business capabilities that ensure world-class environmental performance. • Environmental sustainability • Conservation and restoration

COMPREHENSIVE DEVELOPMENT

Strengthen local capacities for the well-being and prosperity of employees, their families and the communities in the area of influence. • Education and training • Creating opportunities • Work environment

GOVERNANCE FOR DEVELOPMENT

Strengthen local capacities for greater efficiency in planning and public administration. • Transparency and citizen oversight • Institutional and community strengthening

Target

Target 8.8: Protect labor rights and promote decent working environments, with growth opportunities, that are safe and secure for all workers.

[GRI 103-1]

Strengthening relationships with all union members remains a cornerstone for the Company. It takes on this challenge based on respect for the right of association, freedom of association, collective bargaining and, of course, complying with and fulfilling Colombian labor laws.

For this reason, managing labor relations is vitally important, not only because it is a right enshrined in the Colombian constitution, but also because Drummond Ltd. is convinced that good labor relations benefits all stakeholders, the Company’s objectives and its corporate reputation.

[GRI 103-2] [GRI 103-3] As part of managing labor relations at Drummond Ltd., continuous dialogue and fulfillment of the agreements with the different unions has allowed the parties to grow in mutual trust, so that we can describe these relationships as successful. Additionally, having opportunities for social dialogue, as a mechanism for interaction with employees and their representatives, makes it possible to conduct evaluations and monitor issues of general interest to workers, and to do so the Company has the following mechanisms that allow for direct communication:

Activating all of these mechanisms makes it easier for Drummond Ltd. to properly manage risks and prevent negative effects on the operations, such as strikes caused by collective disputes and judicial and/ or administrative processes that could harm the Company’s corporate reputation and sustainability.

Open meetings with employees, led by the Vice Presidents of Operations and Human Resources.

Regular meetings with unions within the framework of the Collective Bargaining Agreement. Visits to work sites with representatives of the trade union organizations.

Possible meetings requested by union organizations with senior management (president, vice presidents, management, superintendents).

Meetings of the Special Committee for Monitoring and Recommendations to optimize services under the Hospitalization and Surgery insurance policy. Participation on the Food and Transportation Committee.

Recreation Committee.

Open meetings with employees led by Industrial Safety and operational area managers (360º).

Participation in the labor relations network with other companies in the industry.

Visits from external stakeholders (clients, NGOs, international unions).

[GRI MM4]

During 2020 there were no strikes or closures, and there were no terminations or suspensions as a result of COVID-19. However, at the start of the pandemic there was a reduction in operations with its respective contingency plan, which made it possible to resume the normal course of operations gradually and safely. As a result, it is the only mining company in the region that continues to maintain jobs and contributes significantly to the development of the region and the country.

The Company does not have minimum time periods for reporting on operational changes; each change is analyzed independently according to its complexity and is communicated to stakeholders in a timely manner. Finally, and as a complement to all of the mechanisms of social dialogue, Drummond Ltd. employees and other stakeholders have a Complaints Channel at their disposal to submit complaints, concerns and/or claims on labor and employment issues, which guarantees absolute confidentiality. This channel has been structured and developed as a result of the Business Ethics Program and as a complement to the corporate policies on Human Resources, Human Rights and Conflicts of Interest and its Code of Conduct.

This mechanism can be accessed in the following ways:

EMAIL denuncias@drummondltd.com

TELEPHONE Ethics Line – Toll Free 01 8000 919161 Direct line 57 (5) 571 9499 Internal extension: 8499

ONLINE PORTAL FOR CITIZEN SERVICES

MAILING ADDRESS

Calle 72 No. 10-07, Suite 1302 Bogotá, D.C. All communications sent through these mechanisms are managed and answered by a committee, which includes members of Drummond Ltd.’s senior management, for purposes of guaranteeing the transparency and confidentiality of the information provided.

Drummond Ltd., in accordance with its mechanisms for social dialogue and the situation caused by the COVID-19 pandemic, has strengthened its corporate communications channel to report on operational changes through emails, memos, newsletters, press releases, billboards and newspaper and magazine publications, as it did when communicating the cutbacks in mining operations and their progressive return.

[GRI 402-1]

MINIMUM NOTICE PERIODS FOR OPERATIONAL CHANGES

[GRI 407-1]

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

Drummond Ltd. is a company that fully respects human rights and this, naturally, includes the freedom of association and the right to collective bargaining. In order to ensure these rights, we have not only made this respect, protection and promotion official through our Code of Conduct and other policies, but we also strive to fully comply with them in our everyday actions, which allows us to state that there is no risk of activities or actions inside the Company that violate the right of any worker to form unions, join or leave them, or to present a list of demands to begin a collective bargaining process.

Along these same lines, the Company has the appropriate means to communicate the steps that it has taken to promote and protect this right in all of our operations, such as:

9

Currently, Drummond Ltd. has nine labor union organizations

Corporate communications

Human rights training sessions

Human rights training sessions Institutional presentations to our stakeholders

Delivery of the Employee Manual If there are any complaints, concerns or claims regarding respect for these rights, in addition to the mechanisms provided under Colombian labor law, we also have the measures that we have mentioned above.

Milestones Challenges for 2021

For the Company, it is very important to highlight that, during 2020, Drummond Ltd. maintained employment levels with all of the extra-legal and collective bargaining benefits that its employees enjoy, and did not suspend any employment agreements, in spite of the difficult conditions caused by COVID-19 and the crisis in the domestic and international coal market. Carry out the commitments acquired in the different collective bargaining agreements and continue working to maintain good working relationships that make it possible to achieve the Company’s objectives, while encouraging the personal and professional development of its employees.

YESID SOTO GARCÍA

COMFACESAR, EDUCATIONAL AGENT IN LA AURORA, MUNICIPALITY OF CHIRIGUANÁ

“Drummond Ltd.’s commitment to its communities in 2020 was to continue contributing to improving their quality of life and including them in society in terms of job opportunities, which is a problem today at the national level. Our main objective as a Drummond Ltd. partner was to help people from the communities have a better quality of life and be included in society to receive education. We know that because of work, violence or dropping out, many people did not continue their studies, and we are here for them. We receive them, train them and help them graduate from elementary school through the Alfabetízate project.”

"Drummond Ltd.’s commitment to its communities in 2020 was to continue contributing to improving their quality of life and including them in society in terms of job opportunities, which is a problem today at the national level.”

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