2010
          
        
        
          AMBATOVY SUSTAINABILITY REPORT
        
        
          45
        
        
          C4. Labour Practices and Decent Work
        
        
          
            C4.3 Labour-Management Relations
          
        
        
          Negotiations are underway for a collective bargaining
        
        
          agreement between management and national employees. It
        
        
          is expected that the agreement will be finalized by the end of
        
        
          2011. Elected employee delegates represent the employees
        
        
          in the negotiation of the collective bargaining agreement.
        
        
          
            Employee Code of Conduct
          
        
        
          To make sure we operate at the highest ethical standards,
        
        
          Ambatovy has adopted a comprehensive code of conduct that
        
        
          applies to the entire workforce. The code of conduct covers
        
        
          ethical behaviour by Ambatovy employees, such as avoiding
        
        
          conflicts of interest, corruption and our zero tolerance policy
        
        
          toward sexual exploitation of any kind. It serves as an
        
        
          educational tool and outlines the principles, values, standards
        
        
          and rules of behaviour that guide operations. Ambatovy will
        
        
          require that the code of conduct be acknowledged and signed
        
        
          annually to ensure all employees and contractors understand
        
        
          and adhere to key policies.
        
        
          
            Strikes and Lockouts
          
        
        
          In total, there were two industrial actions (strikes and/or
        
        
          lockouts) of a week or longer during 2010. In the third quarter,
        
        
          construction activities at the plant site were suspended
        
        
          for 17 days in total. The disturbances primarily related to
        
        
          post-construction employment concerns for people from the
        
        
          Toamasina area. An agreement to resume work was reached
        
        
          in September, following discussions involving Ambatovy,
        
        
          worker delegates, community leaders and local politicians.
        
        
          
            Demobilization and Redeployment
          
        
        
          Ambatovy is transitioning from construction to operations
        
        
          and the majority of workers recruited for construction will
        
        
          see their contracts come to an end. This is typical of any
        
        
          large-scale construction project and the workforce has
        
        
          been aware of it for some time. As a responsible employer,
        
        
          Ambatovy developed a demobilization program to assist
        
        
          its Malagasy workforce through this transition. For those
        
        
          employees whose short-term contracts have ended, but who
        
        
          still have much to contribute to the organization, the program
        
        
          assists redeployment to the Project. For those leaving the
        
        
          Project, Ambatovy offers several services to assist in finding
        
        
          alternative work:
        
        
          3
        
        
          Redeployment Centres (BRMOs) were established
        
        
          in Toamasina and Moramanga to help demobilized
        
        
          workers find new employment opportunities with other
        
        
          organizations.
        
        
          3
        
        
          In collaboration with the Ministry of Labour, Ambatovy
        
        
          contributed to the renovation of government-run
        
        
          employment offices, which assist local job seekers and
        
        
          organizations with hiring needs.
        
        
          3
        
        
          The ATC was established in Toamasina in 2010,
        
        
          offering agricultural training to demobilized employees
        
        
          who would like to return to or start agricultural
        
        
          production.
        
        
          3
        
        
          At the end of 2010, the AIDE program was announced.
        
        
          This is a short-term financial support program
        
        
          for employees in good standing who have been
        
        
          demobilized. The program will be implemented in 2011.
        
        
          
            Training Farmers at the ATC
          
        
        
          A highlight of the demobilization program in 2010
        
        
          was the Agricultural Training Centre (ATC), which
        
        
          opened in June and specializes in agricultural training
        
        
          and techniques. The ATC was set up in collaboration
        
        
          with Madagascar’s Governance Project for Mineral
        
        
          Resources funded by the World Bank. Located
        
        
          in Toamasina, the centre offers training courses
        
        
          in agriculture, livestock, accounting and business
        
        
          administration. The centre has already trained over a
        
        
          thousand people (40% women). After seeing soaring
        
        
          numbers of registrations, the Project decided to expand
        
        
          the program. By the end of 2010, plans were being
        
        
          made for ATCs in Brickaville and Moramanga.