2010
          
        
        
          AMBATOVY SUSTAINABILITY REPORT
        
        
          43
        
        
          C4. Labour Practices and Decent Work
        
        
          
            C4.1 Management Approach to Labour
          
        
        
          
            Practices and Decent Work
          
        
        
          Ambatovy is committed to being an employer of choice and
        
        
          has a number of policies in place to ensure that our workforce
        
        
          benefits from more than just a pay cheque. These include
        
        
          safe working conditions, access to training opportunities and a
        
        
          progressive working environment.
        
        
          
            Local Recruitment
          
        
        
          One of our top priorities is maximizing national employment
        
        
          and developing a local workforce capable of assuming roles
        
        
          with progressively greater responsibilities and technical
        
        
          skill development. We recognize the importance of offering
        
        
          competitive compensation, protecting workers’ rights and
        
        
          promoting training and education programs. Our goal is to
        
        
          attract and retain local employees and provide them with long-
        
        
          term career growth and opportunities.
        
        
          
            Health and Safety
          
        
        
          Ambatovy is dedicated to running a safe and environmentally
        
        
          responsible mining and processing operation. Health and
        
        
          safety are embedded in the core values of the Project. As
        
        
          a result, Ambatovy has set up an ambitious policy aimed
        
        
          at achieving a rate of zero lost-time incidents to protect its
        
        
          employees, contractors and the wider community.
        
        
          
            Training and Education
          
        
        
          Ambatovy continues to work toward establishing a standard
        
        
          of excellence for specialized technical training to maximize
        
        
          employment opportunities for the people of Madagascar –
        
        
          especially those from areas near Project sites. While
        
        
          construction has required technical expertise from around
        
        
          the world, we wish to see local talent assume highly technical
        
        
          roles as well as positions of leadership. This can only come
        
        
          from dedicated investment in training and education for our
        
        
          national employees. As we develop our local talent and
        
        
          ensure knowledge is transferred, we will transition many
        
        
          positions from the expatriate workforce to local talent.
        
        
          
            Demobilization Support
          
        
        
          While levels of employment were still high in the construction
        
        
          phase at the end of 2010, Ambatovy planned to implement
        
        
          the Assistance Initiative for Demobilized Employees (AIDE)
        
        
          program for 2011, which will provide demobilized construction
        
        
          workers with assistance as they seek new employment. While
        
        
          establishing this program is not a requirement, we believe that
        
        
          it is one way we can give back to those who played a key role
        
        
          in the construction of the Project.
        
        
          
            Open Communication and Employee Feedback
          
        
        
          Through Ambatovy’s open door policy, employees
        
        
          are encouraged to provide feedback, suggestions,
        
        
          recommendations and complaints to managers and
        
        
          supervisors. Staff may also use formalized channels through
        
        
          employee delegates. Staff representatives are elected every
        
        
          two years by local employees. These delegates represent
        
        
          staff interests before Project management. Delegates form
        
        
          the Work Council, which is consulted by management on
        
        
          financial, organizational, social and cultural issues affecting
        
        
          Ambatovy. Negotiating the collective bargaining agreement
        
        
          is also part of the Work Council’s mandate. In addition,
        
        
          Ambatovy employees are also able to lodge formal complaints
        
        
          following the reportable concerns policy.
        
        
          
            Labour Relations Targets
          
        
        
          
            Targets for Labour Practices and Decent Work
          
        
        
          
            Performance in 2010
          
        
        
          Conduct effective recruitment to prepare for operations.
        
        
          Maximize local workforce composition.
        
        
          Safety record of zero lost time incidents.
        
        
          Create effective training programs that will position local
        
        
          candidates to take on highly-skilled positions.
        
        
          Working conditions meet or exceed national requirements
        
        
          and negotiated terms of employment.
        
        
          .
        
        
          
            Results and Next Steps
          
        
        
          q
        
        
          We are on schedule for this target.
        
        
          q
        
        
          By the end of 2010, we were well on our way to meeting our
        
        
          target of >85% national employees for operations.
        
        
          q
        
        
          We did have some lost time incidents (see section C4.4),
        
        
          but preparations made in 2010 will lead to better results in
        
        
          the future.
        
        
          q
        
        
          2010 was a great year for our Training Department, as we
        
        
          finished construction of our training workshops and launched
        
        
          the technical training programs that will set our employees
        
        
          up for future success.
        
        
          q
        
        
          We have in place standard policies that comply with
        
        
          Madagascar’s Labour Code. In 2010, we experienced labour
        
        
          stoppages and have been working rigorously to ensure
        
        
          that the concerns of our workforce are heard and answered
        
        
          in a timely and satisfactory manner.
        
        
          q
        
        
          Major challenges encountered
        
        
          q
        
        
          Challenges en route to resolution
        
        
          q
        
        
          Good progress made toward goal