Our Manitoba Business Unit employs nearly 80% of our total employee population. With the Reed mine closing in 2018, the 777 operation nearing the end of its mine life and the Lalor mine ramping up production, the workforce numbers continued to adjust to the business unit’s changing production profile. At year-end, Reed and 777 employed 344 people, and Lalor employed 277, up 5% and 12%, respectively, compared to 2016, reflecting the shift taking place at our operations.

To better match our workforce to the diversity of the region, in 2017 we adjusted our hiring practices to increase opportunities for Aboriginal people and for women. 14% of our employees in Manitoba identify as Aboriginal and 15% are women.

Working Together on Solutions

At the end of 2017, we marked the 90th anniversary of Hudbay’s founding. Meanwhile, we faced uncertainties as the Reed and 777 mines approach closure. To keep everyone informed about changes in the organization, we developed a video series featuring updates from business unit leader André Lauzon, who was joined by other company leaders at points, including CEO Alan Hair. The videos were followed by a live presentation from site leaders, and an opportunity that enabled employees to ask questions and contribute to solutions.

The videos, which were shown at the beginning of each shift, articulated the strategic plan, and the changes needed to keep the Flin Flon zinc plant open and prevent hundreds of job losses. Each video discussed progress against the three pillars of the plan – increase ore output at Lalor, expand processing at Lalor’s Stall mill, and reduce operating costs from the zinc plant and powerhouse. The consistent, transparent messaging and the opportunities for feedback and input about the plan were key to achieving employee support and reaching new workforce agreements with the seven unions that represent Hudbay employees in Manitoba. Additional videos and face-to-face sessions are planned as we explore all options to sustain our presence in Flin Flon.

Strengthening the Safety Culture

Outreach to employees is always an opportunity to reinforce the importance of working together to create a strong safety culture.

During the year, we focused on driving further improvements in safety performance. We took an honest look at our enforcement of safety procedures and rules, and we found instances where we could be much more consistent. For example, we have a requirement that workers be clean shaven to ensure equipment, such as respirators, works properly, but this was not being enforced consistently. We launched an initiative to help supervisors become more comfortable communicating and enforcing the rules with their teams, and to do so in a manner that treats everyone with respect.

Other activities during the year included a new contractor safety management program to ensure effective controls, processes and systems are in place and are implemented throughout the lifecycle of the contractor. Our annual training program transitioned to an online format, with an in-depth course for contractors and employees and a separate abbreviated course for visitors. We also launched an initiative around proper risk assessments and stopping work and implementing safer procedures when issues are identified.

Our updated drug and alcohol policy now includes testing for reasonable cause post-incident, if necessary, and during the year we rolled out the revised policy across the business unit.

Preparing for Changes

A key pillar of the strategic plan to potentially extend the life of the zinc plant is streamlining the organization to support a lower cost structure. Because the mine closures will inevitably result in a smaller workforce, we commenced an initiative to identify opportunities to place those affected by eliminating most contractors by the time 777 closes in 2020.

With the Reed mine as the first to close, we worked with affected employees to identify options at both the 777 and Lalor operations.

We stepped up our recruiting and training efforts to address the growing number of employees eligible for retirement, to ensure that we have the right people with the right skills in place as we execute our strategic plan for the region.