Integrated Report of KGHM Polska Miedź S.A.
and the KGHM Polska Miedź S.A. Group
for 2020

HR Policy of KGHM Polska Miedź S.A.

The HR Policy has been defined for the Parent Entity, which underscores that the Employees of KGHM are its most valuable capital – it is they who create the unique corporate culture and build the Company’s market position.

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KGHM’s Employees are its most valuable capital – it is they who create the unique corporate culture and build the Company’s market position, but also engage in environmental activity and activity for local communities. For years now, we have consistently invested in the labour market and actively influenced the process of educating young people, creating an integrated future-oriented organisation.

Magdalena Wróbel
Executive Director for Human Relations

In order to secure the achievement of its strategic objectives, the Company has for many years consistently invested in the labour market and actively influenced the process of young people’s education. The company acts with due diligence towards its employees, since it is people that play a key role in the development of all areas of the business model, build the global standing of the Company and make us an integrated organisation open to the future. KGHM recruits the best experts and specialists. As a result, the Company employs people with the greatest potential, who can truly address its needs. The work of each of these persons is equally important to the success of the entire organisation.

The uniqueness of the pursued HR policy is attested to by the fact that KGHM Employees are people who not only are talented and highly qualified, but also act in conformity with KGHM values, are open to changes, seek innovative solutions, and are willing to share their knowledge and experience. Most importantly, however, KGHM Employees, regardless of their job titles, see their personal development as a challenge which contributes to the benefits achieved by the entire organisation.

The development of KGHM has also driven changes in human capital management inside the Company. Recently, the implementation of the HR policy has been modified. A consistent set of key processes and tools have been implemented to support long-term development of skills, new solutions have been prepared for employee performance and assessment management, internal communication has been improved, and focus has been made on 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 2020, KGHM Polska Miedź S.A. provided its employees with opportunities to pursue educational programs to develop professional, managerial and specialist competencies, including:

  • the opportunity to improve their qualifications through co-financing of university education, including:
    • co-financing of MBA studies – 30 people,
    • group post-graduate studies entitled “Financial security of a company” in cooperation with the Warsaw School of Economics – 62 people,
    • co-financing of individually chosen post-graduate studies – 30 people,
    • co-financing of higher education – 27 people,
  • improvement of language skills for all Company employees through access to online e-learning tools – the program is available to all employees,
  • improvement of language skills for all Company employees through the possibility to participate in traditional language courses: English, Spanish and German languages,
  • implementation of the performance management process for managers and development of an employee assessment system to the level of department directors,
  • IT tools to support recruitment of the best quality staff, mainly e-Recruitment,

KGHM as a global Group 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.

KGHM Polska Miedź S.A is cooperating with external stakeholders in projects aimed at adjusting the way prospective employees are educated. It runs a project entitled “Competent in the industry”, which is addressed to students of technical and industry schools. It also cooperates with the Ministry of National Education in creating new key professions for the company, as KGHM representatives took part in the project of developing the Sectoral Qualifications Framework (SQF) for the Mining Industry. SQF sets out the expected effects of education at each stage of formal and informal education in building competences needed by employees working in the mining industry. SQF is one of the elements that guarantee proper relations between employee qualifications and competences and their theoretical and practical knowledge.

The project was carried out under the auspices of the Education Research Institute and run by the consortium of the Mining and Geoengineering Department of the AGH University of Science and Technology and JSW Szkolenie i Górnictwo Sp. z o.o. The project involved consultations with representatives of the mining industry. It utilised questionnaires, in-depth interviews and workshops. The experts involved in the project included, in addition to KGHM Polska Miedź S.A. representatives, also the representatives of AGH, PGNiG, LW Bogdanka, JSW, PGE, JSW Innowacje, GIPH, WUG and GIG.

In 2020, KGHM Polska Miedź S.A. and Jan Wyzykowski University signed a dual education agreement. The cooperation will include engineering studies in three specialisations of the Mining and Geology field: Deposit Exploitation Techniques, Mining Machines & Equipment and Prospecting. The agreement with the Jan Wyzykowski University stipulates, among other things, that the courses will be co-financed by KGHM and students from the Mining and Geology faculty will be able to benefit from apprenticeships in the company’s divisions. Students who are KGHM employees will be able to formally classify their professional work as apprenticeships. The best students will qualify for a scholarship program and, at the end of the academic year, KGHM as the Patron may additionally award a one-time scholarship payment of PLN 3000 for special achievements to one student of the University.

A Curriculum Committee will be established comprised of KGHM and University representatives, which will adapt the curriculum to the needs of the copper industry and analyse student apprenticeship programmes.

Dual education programs are a modern form of education which follows the effective education trends adopted in countries of Western Europe. It combines traditional academic studies with professional practice in a business enterprise. Linking theoretical knowledge with practical aspects shortens the period of professional adaptation and prepares students for full-time work immediately after graduation. Cooperation with the Jan Wyzykowski University is the first such initiative of the copper company at the higher education level. Among students of vocational and technical schools, KGHM runs the programme entitled “Competent in the mining and smelting industry”.

HR PROJECTS in KGHM Polska Miedź S.A. in 2020

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Digitisation of HR processes To improve efficiency, digitisation of HR systems became a priority: some processes were introduced already in 2020, while others will be implemented in the next two years.
Launch of onboarding training program for new employees (also online) Periodic training courses are dedicated to newly engaged employees, and their objective is to get to know the company, induct into the organisation quickly and proceed smoothly to perform tasks. The training addresses topics related to the Mission, Vision and Strategy of our Company, the object of activity and the production process, the rules of movement around the organisation, HR matters.
Execution of development project for COPI Division As part of the project dedicated to the employees of the COPI Division, the management competencies were evaluated by the 360 degrees method. As a result of this evaluation, individual development plans for each manager were created and are the basis for organizing an individual development path for each of them. As part of the project, also two training courses were delivered: “Constructive feedback” and “Streamlining team communication.”
Continuation of the “Competent in the industry” project.

The project is aimed at preparing the future staff in professions that were defined by the Division as crucial for maintaining the production line.

Program figures:

  • educational scholarships granted in the amount of PLN 145 thousand,
  • 1,912 pupils in patronage classes in school year 2020/2021,
  • 9 patronage schools,
  • provision of equipment to school workshops in the amount of PLN 170 thousand,
  • organisation of apprenticeships for 388 pupils and of 242 practical classes.
Dual education The declining number of students in mining-related majors at the key universities might cause problems for the Company in the future as it may be difficult to recruit people with relevant qualifications for performing broadly defined supervision functions. Therefore, a decision has been made to establish cooperation with the Jan Wyzykowski University and to launch the Mining and Geology profile in a dual education procedure. Pursuant to the agreement, the dual program will allow students to combine traditional university studies with the opportunity to gain professional experience. KGHM Polska Miedź S.A. has a real impact on the contents of curricula and the company’s employees are lecturers at the University. Student apprenticeships are held with the Company, which allows students to gain knowledge and skills that are important in terms of KGHM’s needs.
Participation in AGH-UST Job Fair In early 2020, KGHM Polska Miedź S.A. participated in the job fair organised by the AGH Career Centre in Kraków. Selected Company products were presented: copper granulate from Cedynia Wire Rod Division and silver granulate from Głogów Copper Smelter. The offer included also a possibility to go on a virtual trip to the mines and plants of Polska Miedź with the use of the VR technology.
HR process restructuring at KGHM INTERNATIONAL LTD. Reorganisation of KGHM INTERNATIONAL LTD.’s processes related to HR and administrative services. As part of reorganisation in HR areas:
  • the organisational structure was modified along with modifications of employment contracts,
  • KGHM Polska Miedź S.A. manages the HR and administration processes of KGHM INTERNATIONAL LTD. and exercises ongoing supervision over these processes in cooperation with the President & CEO of KGHM INTERNATIONAL LTD

Activity in the KGHM Polska Miedź S.A. Group

Companies in Poland

In 2020, the companies in Poland continued the projects implemented in the previous years, among others the project covering all Group companies in Poland, i.e. the e-Recruitment 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 utilisation of motivational tools. To address problems associated with acquiring employees, cooperation was launched with external institutions: vocational schools and employment offices. Agreements were concluded also with institutions of higher education, which enable execution of joint research & development projects, among others, organisation of workshops, training courses, lectures and industry panel discussions.

POL-MIEDŹ TRANS Sp. z o.o. in Lubin took actions aimed to establish a Centre for Training and Examination of Train Drivers and Train Driver Candidates. The Centre for Training and Examination of Train Drivers will start its operation within the Company’s structures upon being entered in the list of centres maintained by the President of the Office of Rail Transport (assumed date of entry: Q2 2021). The Company provides substantive and financial support to schools and universities offering education in railroad professions. The support given to schools is aimed at rebuilding vocational education in the railroad industry and ensuring qualified personnel in the future.

Anti-COVID measures implemented by the HR Division

In connection with the regulations, recommendations and restrictions introduced by the Government regarding the state of epidemic associated with the spread of the SARS-CoV-2 virus and since it was necessary to ensure safety and continuity of work, the companies introduced internal orders defining, among others, work organisation, including rules of remote working, and other regulations arising from the needs driven by the state of epidemic. They focused mainly on the creation of safe work conditions and protection of employees from infection.

The HR Division became actively involved in the measures preventing the effects of the SARS-CoV-2 virus pandemic. Guided by two goals: safety of people and production, initiatives were undertaken in several key areas:

  • Organised and operated communication channels for employees (HR hotline open 24/7, e-mail box for employees, through which employees were able to receive answers to questions about the state of pandemic, the safety procedures in effect in the Company, work organisation during the pandemic and other). Coordinated the flow of information between employees and the OHS function (coordination of access to personal protective equipment, implementation of employee ideas, etc.)
  • Managed the flow of information (regular conference calls with Head Office and Branch managers)
  • Developed the SAP absenteeism report which enabled an ongoing analysis of the scale of infections and helped in decisions on precautionary delegation to remote working if an employee was in contact with an infected person (implemented by COPI in cooperation with the HR Service Unit)
  • Updated and introduced a new functionality of the “Holiday leave requests” application, which made it possible to monitor potential risk of infection by employees who went on holidays to places that were considered to be potential infection sources (implemented by COPI in cooperation with the HR Service Unit)
  • Prepared and published a newsletter for mid-level managers providing key information about the pandemic situation (biweekly)
  • Conducted a study on the effectiveness of remote work
  • Organised training sessions on “Remote team Management” (for managers), “Improving efficiency of remote work” (for employees)
  • Organised a webinar entitled “How to survive the lockdown without going crazy”
  • Changed the procedure for carrying out professional courses on the TEAMS platform
  • Introduced e-learning OHS and GDPR courses
  • Developed and implemented the rules for safely referring employees to vocational courses
  • Inspected and supervised over courses executed by eternal providers in the times of COVID-19 – visits to verify compliance with safety/sanitary standards adopted by the Company
  • Cooperated with the Copper Health Care Centre and developed the best procedure for the times of COVID-19 for safely referring employees for medical examination
  • Managed the process of apprenticeships for students from schools benefiting from endorsed schools (reorganisation/halting of apprenticeships/practical courses for students)
  • Developed and implemented methods and tools used for online recruitment.
  • Developed methods and tools used in the online onboarding process.

KGHM International LTD

In 2020, the following HR projects were advanced in the companies of the KGHM INTERNATIONAL LTD. Group in Canada and the USA:

Assets in the Sudbury Basin in Canada
  • cycle of training workshops for leaders of production assets and HR teams in the field of communication, conflict management and employee wellbeing,
  • preparation of a staff succession plan for key management functions in mines, covering the following processes: identification of key leadership roles in the organisation, creation of competency profiles of leaders, determination of potential of employees and assessment of their development needs, talent development plans and monitoring of their accomplishment progress.
Robinson and Carlota mines in the USA
  • deployment of a modern recruitment platform and automation of candidate selection process,
  • training program dedicated to 75 representatives of the management staff, delivered in cooperation with the University of Nevada, Reno Extended Studies,
  • update of descriptions of jobs in mines: adaptation to organisational needs and current market trends,
  • employee appreciation program supporting the leaders in developing the culture of employee engagement appreciation in the organisation,
  • audit of the employee training process and of the process of foreigner employment legalisation in the USA.
  • relocation of certain functions from KGHM INTERNATIONAL LTD. to KGHM Polska Miedź S.A. Head Office and other business units of the KGHM International LTD. Group.
Sierra Gorda S.C.M. In 2020, in particular the following HR projects were advanced in Sierra Gorda S.C.M.:
  • introduction of new work systems: 14×14 and 8×6, and renewal of permit for 4×3 and 7×7 work systems, approval of new jobs for work in special conditions,
  • introduction of a diversity and integration policy,
  • introduction of a new competency model based on production successes,
  • transformation of HR processes into the online form,
  • introduction of a remote work system for administrative jobs,
  • construction of new welfare facilities for mine employees,
  • deployment of web applications for: employee transport requesting system, workwear requesting system, COVID-19 information campaigns, online surveys and polls, module concerning employee wellbeing for the purpose of facilitating quarantine of employees and their families,
  • introduction of a campaign and projects in connection with the COVID-19 pandemic regarding employee safety, information about pandemic situation, preventive measures, information for external companies about current pandemic situation in the company and the applicable procedures.

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

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KGHM Polska Miedź S.A. secures highly qualified personnel through the process of internal and external recruitment. It protects the KGHM brand as an employer of first choice for current and prospective employees.

The company acts in accordance with due diligence rules. It keeps an electronic register of job candidates based on the announcements published at 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.

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 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).

Training processes in KGHM Polska Miedź S.A

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Given the international scale of business, cultural differences and unique characteristics of the industries, in which the Group operates, each company undertakes many different activities associated with employee training. The purpose of employee development activities in KGHM in 2020 was to retain and improve human capital and to manage the Company’s intellectual capital taking into account the Company’s new 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 organisation of 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 studies.

The Company’s employees may improve their qualifications in the context of expected organisational and technological changes by participating in training courses, conferences, studies and post-graduate studies. The employer ensures high level of training among others 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 centralised unit specialised 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 competence development activity and the utilisation of the allocated budget are regularly monitored and the results are reported.

In 2020 the number of employees participating in a single training event was 32,384.

To reach the largest group of employees we conduct e-learning training courses. One of the greatest advantages of e-learning is that training can be conducted at a convenient time. Moreover, e-training contains interactive elements to facilitate comprehension and committing to memory the needed information. In 2020 KGHM Polska Miedź S.A.’s employees obtained access to the following e-learning training courses:

  • 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 receiving 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 family).
  • GDPR training,
  • Periodic OHS training:
    • for employers and individuals supervising employees,
    • for administration and office staff
    • for administration and office staff

The Information Security Policy training, the GDPR training and the periodic OHS training have been designed for all employees of KGHM Polska Miedź S.A who use computers in their daily work. This course aims to inculcate safe behaviours on the web. 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.

E-learning language courses

In 2020, foreign language courses conducted by the e-learning method were launched. The employees of KGHM Polska Miedź S.A. are able to participate, free of charge, in English and German courses on two independent language platforms. As an employee benefit, the service is fully financed by the Employer.

Both platforms offer nearly endless learning material in the form of ready-made lessons for practising language skills for everyday life, such as Travel English, and for professional purposes, e.g. Business English. The platforms offer complementary ranges of exercises: one platform has been designed for self-studying, while the other is geared more towards communication in the world of business, through direct conversations with native speakers.

The pilots of the platforms generated a lot of interest among the Company’s employees. In 2020, more than 2 thousand employees took advantage of both platforms. In order to reach the largest possible number of employees, the campaign was regularly promoted through flyers, posters and press and media releases, among others on Intranet and Extranet employee portals and in the CUrier internal magazine.

Interest in online learning continues to grow, especially during the still persisting COVID-19 pandemic and in connection with safety restrictions among employees. The idea of online courses was a good fit with the reality that the year 2020 has brought us. Hopefully the pandemic situation in Poland and globally will soon change for the better, but online language courses will remain as a tried and tested form of learning accepted by KGHM Polska Miedź S.A. employees.

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