Human capital is our crucial and most important resource and as such people are subject to special protection and are at the centre of attention of the Company’s corporate bodies. KGHM Polska Miedź S.A. aspires to create an organisational culture whose cornerstone is cultivating relations predicated on absolute respect for employees’ dignity and personal rights regardless of their place of work and professional status.
The KGHM Declaration on Human Rights Protection defines our approach to human rights protection. Employee dignity and personal rights are subject to absolute protection, and any mutual relations are based on respect thereof. As a global Group active across the world’s markets, KGHM applies standards of work and employee relations as required by local law, as well as by international institutions, such as the International Labour Organization (ILO) or UN Global Compact. Regulations and policies take account of the interests of employees and mutual relationships, based on the best practices, irrespectively of the jurisdiction of the Group company’s place of operation.
KGHM Polska Miedź S.A. applies impartial and fair criteria of employee assessment, being guided by knowledge, professional skills, social skills and the quality of work. The Company’s culture has created a work environment and venue free from discrimination. No form of discrimination is tolerated, in particular due to gender, race, age, origin, religion, handicap, world view, social status, marital status, disability, political party and trade union membership and the form of employment.
In 2020, the companies of the Group employed 34,116 people, i.e. 0.6% less than in the prior year. The employment structure is presented below:
| 2020 | 2019 | change (%) | |
|---|---|---|---|
| KGHM Polska Miedź S.A. | 18,440 | 18,444 | (0.0) |
| KGHM INTERNATIONAL LTD. | 2,006 | 1,944 | +3.2 |
| Sierra Gorda S.C.M.1 | 789 | 794 | (0.6) |
| Domestic Group companies | 12,872 | 13,137 | (2.0) |
| Other Group companies | 9 | 9 | – |
| Total | 34,116 | 34,328 | (0.6) |
Employment in KGHM Polska Miedź S.A. was stable and at the end of 2020 it was 18,531 people (0.4% more than at the end of 2019) The annual average employment in KGHM Polska Miedź S.A. was 18,440, as shown in detail in the following table:
| 2020 | 2019 | Change (%) | |
|---|---|---|---|
| Mines | 12,430 | 12,440 | (0.1) |
| Metallurgical plants | 3,604 | 3,635 | (0.9) |
| Other divisions | 2,406 | 2,369 | +1.6 |
| KGHM Polska Miedź S.A. | 18,440 | 18,444 | (0.0) |
In 2020, average employment in the companies of the KGHM Polska Miedź S.A. Group in Poland decreased as compared to 2019 by 265 FTEs (or by 2%). This change affected mainly blue-collar positions and was caused by adjusting employment to current needs resulting, among others, from market situation and changes in the organisation of work.
In 2020, average employment in international companies of the Group rose as compared to 2019 by 57 FTEs (or by 2%): the headcount in Sierra Gorda S.C.M. fell by 0.6%, while in KGHM International LTD. Group it went up by 3.2%.
The decline in employment in Sierra Gorda S.C.M. was caused by reduction of employment in the individual areas in connection with the cost savings plan. The rising headcount in KGHM INTERNATIONAL LTD. was mainly due to an increase in production capacity in the Robinson mine in the USA.
Following the acquisition of assets outside Poland, since 2015 KGHM Polska Miedź S.A. has implemented an employee mobility program. In view of the international operations of the KGHM Polska Miedź S.A. Group, a policy of international mobility has been adopted as the basis for action in conformity with the due diligence procedures. In order to unify the rules for international delegation of employees and improve the functioning of the mobility process, the International Mobility Policy in the KGHM Polska Miedź S.A. Group was introduced on 27 April 2020. The Group also adopted the Procedure for Implementing International Mobility Policy in the KGHM Polska Miedź S.A. Group. Delegation of employees to companies in Chile, Canada and the US represents an investment of major significance for the KGHM Polska Miedź S.A. Group. The policy not only satisfies the local requirement for personnel, but also develops the employee’s professional potential, which increases the Company’s competitive edge. In 2020, 15 employees in total were delegated, of which 4 returned, 8 continued the delegation started before 2020, while 3 started their delegation.
The global nature of the KGHM Group also translates into risk related to human capital. The Company wants to recruit and retain the best employees necessary among other things for the execution of development projects. The effectiveness of recruitment processes is also undergoing constant improvement. Since 2015 an employee mobility program has also been in place. It defines in detail the rules of delegating employees abroad. The program guarantees the consistency of human resources management policy with best market practices and ensures continuity of risk management (including legal, tax, immigration risks) in the process of delegating personnel to work abroad. In employee international mobility there is an opportunity to transfer knowledge, experience and best practices among the KGHM Polska Miedź S.A. Group’s companies.
KGHM Polska Miedź S.A. has in place the Work Regulations which define the organisation 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, the work regulations describe the practice with regard to rewards and distinctions, as well as penalties for breaches of work order and discipline.
