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Iron Ore Company of Canada
Kari Plaster Vice President, Human Resources NOIA Conference June 19, 2012
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Check-In
Turn to your buddy.
Have a VERY brief discussion…
Is there anything which is keeping you from being fully present right now in
this moment?
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Overview
Safety
Tools
Rio Tinto and IOC
IOC’s HR Challenges
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AIFR 2003-2011
1.391.25
2.60
1.06 0.88 0.91
1.86
2.85
3.70
2003 2004 2005 2006 2007 2008 2009 2010 2011
Personal Safety
Workplace Safety
2003-2011
1 1
35
23 22
16
8
17
96
16
44
26
42
31
25
2016
2123
2003 2004 2005 2006 2007 2008 2009 2010 2011
Fatality LTI MTC
Our Journey to Zero Harm
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Overview
Safety
Tools
Rio Tinto and IOC
IOC’s HR Challenges
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Five principal product groups:
• Aluminum, Copper, Diamonds & Minerals, Energy and Iron Ore
Two support groups:
• Technology & Innovation, and Exploration
Large, Long-life, Low Cost Assets
Rio Tinto Worldwide
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Rio Tinto Alcan
Kitimat, BC
Rio Tinto IOC
Labrador City, NL
Rio Tinto Diavik
Yellowknife, NWT
In 2010
• US$8.39 billion in revenue
• 13,400 employees
• 35 operational and administrative sites
• US$1.3 billion on salaries and benefits
• US$2.1 billion contribution to national economy
Rio Tinto in Canada
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Rio Tinto
(58.7%)
Mitsubishi
Corporation
(26.2%)
LIORC
(15.10%)
World leader in mining, and processing
of mineral resources
Managing Shareholder
Major global trader of iron ore and other
minerals
Canadian corporation traded on the Toronto
stock exchange
IOC Shareholders
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What Makes IOC Unique (Kari’s View)
The Asset and its Location
-Non-Australia based, Quality and Quantity, Climate
End to End Value Chain
CEO and the Team (the diversity)
Our People
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IOC’s integrated production system stretches across 400km
Mine
Plants
Railway
Port
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Most IOC employees in Labrador City are from this province
Mayo family arrived in Labrador City in 1963
By joining IOC in 2008, Alex Mayo became the 4th generation of this family to work at IOC – A first
in IOC history!
IOC’s challenge: create a sustainable business so that Alex Mayo’s family will stay and build their
career at IOC
IOC has deep roots in Newfoundland and Labrador
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Strong contributor to the provincial and local economy
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Overview
Safety
Tools
Rio Tinto and IOC
IOC’s HR Challenges
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HR’s Role in Business
• Think Operations, Act Operations… manage HR
• Help Business Achieve Strategic Objectives
• Solutions Focus
• Help Leaders Lead
• Ensure Business has Enough People
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Add new
labour work
hours
Improve
existing
utilisation /
productivity
Key objectives Initiatives
• Focus recruitment efforts on open functions / roles
with critical impact on tonnage filled
• Address key accommodation issues that pertain to
retention and recruitment
• Raise number of certified employees for critical
roles
• Plan coverage for upcoming vacation period
• Pilot and implement new or revised policies and
incentivisation strategies to optimise performance
• Improved onboarding, training, and coaching
• Implementation and sustained use of organisational
tools throughout transformation (e.g., scheduling
process)
• Review data gathering and reporting process to
raise transparency in the organization
IOC’s HR Challenges
HR starting point January 2011
• Despite maturity of the business,
a number of foundational HR elements
and processes are not in place
− Missing HR policies/ procedures
are being identified and written
• Transitioning HR organizational
structure to support business
objectives
− Restructuring and creation/ filling
of key positions is a priority and in
progress
• HR performance not well documented
and tracked
− HR performance metrics/
dashboard to be instituted as part
of Business performance
transparency module in
Turnaround
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HR Actions Support Debottlenecking Operations
Initiatives
Policy Blitz /
Policy Tightening 1
Contracting out 2
Fill Critical
Vacancies 3
FIFO 4
Accommodation 5
Data Diagnostic 6
Supervisor Perf.
Management 7
• In addition to these specific
initiatives, the HR department has
put in place a series of structural
changes to make it better suited to
serve the business priorities
• The team is also introducing a set
of key tools and frameworks aimed
at rising management ability to drive
high performing teams (change
acceleration, solution focus
facilitation)
Onboarding and
Training 8
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Rio Tinto & Iron Ore Company
Tools
Our Vision & Culture
Our HR Challenges
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Labour Negotiations Success in 2012
I. Team Selection
− Operations and HR Leaders
− Back-office Team and Front Office Team
II. Training and Mock Sessions for Practice
• Effective Negotiations Skills Critical for Alignment
• Mock Sessions: Before, During and After
• Scenario Planning
III. Governance
• Local Tables and Common
• Steering Committee
IV. Review System and Process to Learn from Experience
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IOC – Remuneration Data 19
HR Remuneration Strategy has 4 Parts
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CAP Model (Change Acceleration Process)
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Iceberg
TOOLKIT
1111
The Iceberg – What lies beneath?
What we see and
usually attempt
to address.
What we don’t see and
often don’t attempt (or forget)
to address.”
behaviour
values / beliefs
motives
needs
personality
environment
instincts
background / upbringing
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Trust Grid
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Check-in / Check-out
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Questions?