Labor Relations

At year-end 2015, our workforce consisted of approximately 34,500 employees and 37,500 contractors. We work cooperatively with 27 unions worldwide. Approximately 48 percent of our employee population is covered by collective bargaining agreements, 9 percent of which is covered by agreements that will be renegotiated during 2016. Our policy is to ensure fair treatment and work conditions for all employees, including rights to freedom of association and collective bargaining. Employees have the right to exercise freedom of association at all of our operations. During 2015, PTFI and the employee union agreed to a new two-year Collective Labor Agreement at our Grasberg operation in Indonesia. During the successful and collaborative negotiation process, there were no work stoppages.

Due to the market downturn in 2015, we revised our production plans to adjust for the lower commodity prices. Unfortunately the lower production meant our workforce also had to be reduced. About 1,100 positions in the Americas were eliminated in 2015. The stress of facing possible job loss takes its toll on everyone, that is why we focus on transparency and fairness when conducting a reduction-in-force process.

In North America, eligible impacted employees were offered voluntary resignation packages, early retirement programs, severance packages and outplacement services. Employees were also encouraged to transfer to other locations when qualified for an open position.

At El Abra in Chile, we implemented a short-duration shutdown and the 648 employees who were laid off during that time were provided supplemental severance benefits. The plant safely and peacefully restarted with new schedules and crew assignments.

Percentage of Employees Under Collective Bargaining Agreements
By Operating Region
South America
North America

Subject to certain statutory requirements, Freeport-McMoRan has retained the authority and freedom to suspend, limit, curtail or restructure its operations, as it deems appropriate, to respond to varying economic conditions. When such decisions are made, they are communicated to employees at the earliest appropriate time along with information on whose employment may be affected by the change in operations and the benefits that are available should reductions in employment occur. The company's established policies and collective bargaining agreements set forth the processes used for determining who may be affected by any reductions in workforce associated with such operational changes.