HUMAN RESOURCES POLICY
Format Version: 01, 04/28/2011
CONTENT
1.
OBJECTIVE .................................................................................................................................. 1
2.
SCOPE ........................................................................................................................................ 1
3.
POLICY CONTENT ........................................................................................................................ 1 3.1 General premises for policy compliance .................................................................................. 2 3.2 Policy Content ......................................................................................................................... 2
4.
GLOSSARY .................................................................................................................................. 6
HUMAN RESOURCES POLICY
Format Version: 01, 04/28/2011
APPROVED BY Executive Committee , November 10th, 2011.
VERSION
001
1. OBJECTIVE Describes the purpose of the policy and its content.
Cementos Argos and its subsidiary companies believe in the importance of the development of its human capital, safety, and well-being at work within a culture based on a global phylosophy that promotes high performance, team work, and self-management, looking for business sustainability by balancing between revenue generation and good working conditions. The Human Resources policy was established by the Executive Committee in order to provide the Company, its leaders, and employees a framework to align their actions and decisions, on a daily basis, in order to promote and maintain good human resource practices.
2. SCOPE Defines the general framework for the application of the policy.
The Human Resources Policy applies to all regions where Cementos Argos and its subsidiaries (Company) operate to include employee / management relations as well as third parties with whom the Company does business.
3. POLICY CONTENT Defines the conduct desired by the organization in order to orient and clarify the decision-making.
HUMAN RESOURCES POLICY
Format Version: 01, 04/28/2011
3.1 General premises for policy compliance Leadership committed with people management Human Resources areas provide HR expertise, define policies, and establish guidelines focused on the proper talent management. Organizational decisions made by leaders and the daily relationship among them and their employees are the main scenarios for the implementation and monitoring of the policy, for that reason commitment and alignment are required. The Human Resources function provides expertise, policy definition, and guidelines focused on employee development. On a daily basis, managers and leaders are committed to implementing and monitoring these policies to ensure that all employees are provided opportunities to develop their skills and abilities. Employee involvement The company encourages employees to take the initiative to ensure the proper management and adherance to this policy. Framework for employee relations development Good employee relations are based on mutual respect, tolerance, and good communication. These policies are aligned with the Sustainability Policy, the Good Government Code, and the Global Compact, by continuosly monitoring legal issues, working conditions, and quality of worklife. 3.2 Policy Content Human Resources management in the Company is based on the application of the following elements which constitute the Human Resources policy: Labor law compliance Employee and union relations will be developed in strict compliance with applicable country or state laws, guaranteeing the rights and responsibilities of all parties, including third parties that provide services to the organization. Productivity, competitiveness, and decent working conditions All business activities must generate value in an efficient and effective manner. These activities should be based on formal and fair models from the recruitment process and ongoing improvement of working conditions. The Company ensures that in all of its facilities it will promote the dignity and respect to others to maintain their rights and provice good working conditions. Page 2 of 7
HUMAN RESOURCES POLICY
Format Version: 01, 04/28/2011
Discrimination and harassment prohibition The Company is committed to the principles of equal employment opportunity and fair treatment for all employees while complying with all of the laws prohibiting discrimination and harassment in the workplace. The Company strictly prohibits any type of discrimination during recruitment, hiring, compensation, benefits, promotions, transfers, disciplinary actions, and dismissals. Harassment of any kind is also prohibited based on differences of race, color, religion, national origin, gender, age, disability, sexual orientation, marital status, union membership, political affiliation, or any other characteristic protected by applicable laws. Forced labor prohibition The Company prohibits the use of involuntary labor, labor under threat, coercion, or physical punishment. Child labor prohibition The Company respects the rigths of children to develop their full physical and mental potential. In accordance with applicable laws in any country or region where the Company operates, it will not directly hire or permit the usage of anyone under the minimum age. Respect for freedom of association and the collective bargaining The Company recognizes and respects the right of all employees to choose whether or not to organize or join organizations of their choosing and to establish collective bargaining agreements according to applicable laws, with no reprisals for exercising this right. The corporate Vice President responsible for human resource management plans and develops policies regarding collective bargaining process. Due process The company ensures a fair and equitable process in the resolution of policy violations. Occupational Health and Safety The Company promotes healthy and safe working conditions in all its operations, to prevent accidents and illnesses. In all cases where any incident occurs, plans for mitigating its impact will be given priority to correct the condition. Employees‘ safety takes precedence over the continuation of operations or preservation of equipment. The Company encourages and promotes the principle of personal responsibility for safety in the workplace. Each employee is trained and recquired to be alert to risks at his/her worksite and the company maintains a continuous improvement management process to ensure compliance with applicable country or state laws. Responsibility over the talent processes The general design of the human resource processes is the responsibility of the corporate Human Page 3 of 7
HUMAN RESOURCES POLICY
Format Version: 01, 04/28/2011
Resources Vice President, while management and operation is a responsibility of each Strategic Business Unit (SBU) leader. For the corporate areas, the Human Resources Vice Presidency is also responsible for management and operation of the processes. Organizational structure The organizational structure of the Company has seven levels, starting at level zero (0) for members of the Executive Committee (CEO and Vice Presidents) through level 6 in the operations. In general, each position has a subordinate relationship to the next higher level. Each Vice President of a region or a country, through his/her Human Resource Manager, is responsible for managing the organizational structure and monitoring the variables associated with the structure such as number of people hired, open positions, organizational design costs, and setting up procedures and approval authorities. Corporate Talent management The Company will appoint, according to the needs of the different businesses and corporate priority, employees to positions within the company. The corporate Vice President responsible for human resource management will establish the procedures necessary to reposition the employee to achieve organizational goals. A list of potential employees will be maintained and appointments will be made based upon resource recquirements and company initiatives. Human resources management based in a competencies model Talent management and Human Resources processes are carried out according to the corporate competecies model defined by the Executive Committee taking into account the recommendation of the Vice President responsible for human resources management. The cross-competencies are defined by the Executive Committee while the specific competencies for each Vice President are defined by themselves, with consideration of efforts required for similar positions in different Vice Presidents. Performance management Performance management is a continuous process for which the company’s leaders are responsible; it involves monitoring the employees’ performance by planning, following-up, and assessing the achievement of specific goals. The Company establishes a formal measurement system that provides for the review and monitoring of the employees performance. Employees develop their goals according to the standards and expectations of performance and their achievement of results are used for decisions about promotions, transfers and personnel actions associated with the human resource processes. When a promotion takes place, it is an essential requirement that employee has had good performance in his/her current position. People development The Company will promote employee growth and education in accordance with business interests, allocated budgets, and specific procedures. The two forms of additional education are: Page 4 of 7
HUMAN RESOURCES POLICY
Format Version: 01, 04/28/2011
• Corporate education as a tool for development of employees where the involvement is a priority for the Company. The identification of the needs for corporate education is the responsibility of the corporate Vice President responsible for human resources. • Technical education as a tool for theVice President development of employees in his/her current or future positions. The identification of the needs for technical education is responsibility of the SBU areas and its leaders with the support of the local human resources. Compensation as an instrument for talent attraction and retention Total compensation (base pay, variable pay, and benefits) is an instrument for attraction, retention, and employees satisfaction. The design of compensation programs applicable to the corporate office, SBUs or countries are developed in coordination with the corporate Human Resource Vice President, taking into account internal equity, external competitiveness, and business sustainability. The Company guarantees that compensation complies with all current labor laws and collective bargaining agreements. Compensation in collective agreements The compensation management of the employees covered by current collective baragaining agreements is made according to these agreements to ensure compliance. Compensation in collective bargaining agreements is the result of the bargaining process and from the point of view of the Company, complies with the definitions of compensation in those agreements. Well-being programs at work The well-being programs are to improve the working conditions for the employees, while working to enhance productivity and performance. Internal promotion In order to fill open positions within the Company, internal promotion has priority over external recruitment, as long as the internal candidate has the required skills and knowledge to fill the position. Working hours The Company will not exceed the legal working hour limits applicable in the countries where its operations take place. Vacations and time-off Time-off as a mechanism of work life balance is necessary for productivity in workplace and a fundamental factor for maintaining employee health and safety. The Company will provide vacations for its employees and other time-off according to labor law applicable in the countries where its operations take place.
Page 5 of 7
HUMAN RESOURCES POLICY
Format Version: 01, 04/28/2011
Contractors’ management The Contracting Handbook is the framework in the different countries where the Company develops its operations. The guidelines are to be adapted depending on cultural and legal issues related to each country.
4. GLOSSARY Defines the concepts and terms most frequently used in the policy that are basic to its understanding and application.
Page 6 of 7
