Our relationship with collaborating companies

(HR1) Percentage and total number of contracts and of significant investment agreements that include human right clauses or that have undergone human rights screening. We ensure that contracts with contractor companies and suppliers of goods and services contain clauses on human rights, that they adopt and uphold Chilean law as their basic framework of action to establish labor relations and, beyond that, respect the social, civil and political rights that are consistent with the Universal Declaration of Human Rights and the regulations of the International Labor Organization that Chile subscribes to.


Contractor companies and their workers are important to achieving our objectives.

CONTRACTOR COMPANIES MANAGEMENT AND SUPERVISION

(HR2) Percentage of significant suppliers, contractors and other business partners that have undergone screening on human rights and actions taken.

In order to focus on activities inherent to its line of business, Codelco - through civil or commercial contracts - hires specialized external companies to execute works or provide services.

During the tender processes the contractor company’s trajectory, technical competence and qualifications for performing the service or labor required are reviewed, taking into particular consideration during this assessment any potential conflicts of interest.

Contractor companies recruit, select, hire, pay, and terminate their workers, such that they act at their own risk and expense. Similarly, each contractor is responsible for labor relations with their employees and/or trade unions.

Codelco requires contractor companies to comply with labor and pension obligations to their workers and supervises compliance in these matters by means of external specialists. Furthermore, it exercises rights to information, withholding, and payment under labor laws.

The Corporation also adopts all necessary measures to effectively protect the life and health of workers who work within their facilities, whatever their status.

2011 showed a high degree of compliance of contractor companies with these obligations. However, between May and July, for a period of 55 days, sectors of contractor company workers providing services to the El Teniente Division, carried out an illegal stoppage of activities end acts of violence, which partially impacted the operational continuity of the division. The conflict ended with the signing of a direct agreement between the employing contractor companies and their employees.

 

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