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Growing Our People

A core value of New Gold is “develop our employees.” It means employees should receive regular feedback on a job performance and development plan that supports them in reaching their full potential.

New Gold operates in Canada, the United States, Australia, and Mexico, and is involved in a joint development project in Chile. Each country and region where New Gold operates is unique, and we strive to respect and support local customs. At the same time, we are rigorous in applying certain universal standards in health and safety, as well as in our human rights and non-discrimination policies.

Scorecard 2: Health, Safety, Human Resources and Professional Development

2013 Targets
Performance
2014 Targets

Complete the implementation of the Health and Safety Management System standard across all sites.

Reduce Lost-Time Injury Frequency Rate by 10% year on year.

Reduce Total Reportable Injury Frequency Rate by 10% year on year.

Complete 95% of target lead indicators.

Achieved

The remaining seven components of the Health and Safety Management System standard were implemented across all sites.

100% of target lead indicators were met or exceeded.

71%(0.15 vs. 0.52)Lost-Time
Injury Frequency
Rate reduced

57%(2.43 vs. 4.94)Total Reportable
Injury Frequency
Rate reduced

Maintain 2013 Lost-Time Injury Frequency Rate level.

Maintain 2013 Total Reportable Injury Frequency Rate level.

Implement performance and development plans for 90% of employees.

Achieved

98%Performance and development plans completed for employees

Maintain 2013 completion levels.

Complete implementation of leadership training for first line supervisors at our operations.

Achieved

Leadership training for first line supervisors was carried out at all our operations.

Expand the values-based leadership training program to target the training of future leaders and potential successors for management positions.

Health and Safety

Our people are the core of our success and we depend on skilled, hard-working and empowered employees to contribute to our business. It is a fundamental principle at New Gold that everyone should return home injury-free after each workday, and we seek to create a culture in which everyone is motivated to do the right thing in order to keep themselves and their colleagues healthy and injury-free. While we have had considerable success in achieving and maintaining excellent health and safety statistics, we recognize the human risks that mining operations represent, and as a result the need to be constantly vigilant.

Health and Safety Performance 1, 2

INDICATORS 2009 2010 2011 2012 2013
Lost-Time Injuries (LTI) 21 15 16 16 4
Lost-Time Injury Frequency Rate (LTIFR)3 1.22 0.85 0.68 0.52 0.15
Total Reportable Injuries (TRI)4 80 96 124 150 65
Total Reportable Injury Frequency Rate (TRIFR)5 4.66 5.42 5.25 4.94 2.43
Fatalities - 1 - - -
Total Number of Employees and Contractors6 1,281 1,463 2,105 1,849 2,069
1

Subsequent to acquiring Rainy River, reporting statistics as per New Gold standards commenced in August 2013.

2

In 2011 we began reporting the Total Reportable Injuries (TRI) and Total Reportable Injury Frequency Rate (TRIFR) as per the Occupational Health and Safety Advisory Services (OHSAS), Occupational Safety and Health Administration (OSHA) and other industry standards.

3

Lost-Time Injury Frequency Rate (LTIFR) is the number of lost-time injuries per 200,000 hours worked. (Lost-Time Injuries x 200,000 hours) ÷ total hours worked.

4

Total Reportable Injuries (TRI) includes LTI, Restricted Duties Injury (RDI), and Medical Treatment Injury (MTI).

5

Total Reportable Injury Frequency Rate (TRIFR) is the number of injuries per 200,000 hours worked. (Lost-Time Injuries + Medical Treatment Injuries + Restricted Duties Injuries) x 200,000 hours ÷ total hours worked.

6

Includes employees and contractors at all sites and offices including the corporate exploration team.

 

Performance in 2013

In 2013, there were no notable safety citations, and fines for infractions were very minor in nature and did not exceed $500 across all operations.

In 2013 our Lost-Time Incident and Total Injury Frequency Rates were reduced by 71% and 57%, respectively. Our injury and incident prevention activities which focused attention in three critically targeted areas, Education/Training, Workplace Behavioural Observations and Risk Assessment/Management & Mitigation, had a completion rate of 141% and for all other measureable prevention activities a completion rate of 100%.

In 2013 days lost due to injury totalled 164 while modified alternate duty days averaged at 7.8, which is well below the average for the jurisdictions in which we operate. Furthermore, four of our six operations went without a time loss incident, two operations attained over one million worker hours without lost time and another attained over two million worker hours without a lost time incident.

All operations had safety systems audits conducted by third parties and/or regulators to ensure effectiveness and compliance with health and safety legislation and other standards such as Occupational Health and Safety Advisory Services (OHSAS) and Occupational Safety and Health Administration (OSHA).

As an operational highlight, New Afton is the first mining operation in British Columbia to achieve the Certification of Recognition from WorkSafe BC. This very important certification benchmarks New Afton against the highest safety management standards in the mining industry and those companies with the best performance and systems in BC. The standard for certification is a minimum 85% overall, and New Afton scored 92% on the Safety Management System and 91% on the Injury Management System.

All operations completed alignment of their safety systems with corporate standards and commenced use of a centralized and fully integrated health, safety and environmental reporting and data management system. During 2013 operations conducted 13,760 crew safety talks, 10,120 behavioural safety observations, and 17,993 safety inspections/audits; completed 4,170 corrective and preventative actions, and provided over 83,130 hours of safety training to workers and contractors.

Emergency Response

Every New Gold mine or project maintains highly trained and equipped emergency response teams, with members from every operational area. While every New Gold site manages its own programs and trains its emergency teams in skills that are specific to the site, all operate under the guidelines and policies of the Corporate Crisis Management Plan, which meets international standards and best practices for Incident Command and Control. All emergency team members undergo initial and ongoing training in first aid, evacuation, emergency control and firefighting, as well as many other site-specific emergency skills. In order to protect and rescue workers, teams are regularly trained and conduct exercises in a broad range of risk scenarios to maintain a high level of readiness and expertise.

Performance in 2013

A crisis management simulation is completed regularly at each site. In 2013, we embarked on a major review of the Crisis Management Plan, and simulation exercises occurred at two of our operations.

Employment Practices

In all the jurisdictions where we operate, we comply with local employment laws. We strive to create a culture of inclusiveness and acceptance that begins at the top, and carries through hiring, promotion and worker-to-worker relationships. Our reputation for safety, competitive wages and benefits, and our recognition of employee performance and opportunities for career advancement, make us an employer of choice, everywhere we operate.

Our employee development policies extend to mine and company management. We encourage employees with a promotion-from-within approach and support for continuing education and professional development. These reflect our Company’s values and are essential components for a stable, productive and profitable enterprise that takes into account the interests of all of our communities of interest, both internal and external.

Salary reviews are conducted at least annually, and are supported by surveys from reputable human resources consulting firms that indicate any changes in cost of living indices, budget constraints, job performance and years of experience.

Our commitment to fair and equitable labour practices extends throughout our operations. We adhere to the labour principles of the UN Global Compact and have identified employee development and teamwork as corporate values.

The most senior position with operational responsibility for labour aspects at New Gold is our Vice President of Human Resources, who works collaboratively with other departments to support a safe workplace, workplace diversity, equitable compensation and fair labour practices.

Performance in 2013

The 2013 average workforce turnover rate across New Gold mines was 13.5%, slightly higher than 2012 (13.0%).

In 2013, market pressures led to significant challenges at some of our operations. At Peak Mines, about 35 voluntary and 12 involuntary redundancies occurred. These were very difficult decisions made by our leadership. Several meetings occurred with the workforce to allow for an open dialogue about the redundancies and implications to morale and to the operation. We are making significant efforts to engage and empower employees, and to seek their input to identify options for cost and productivity gains. A public meeting provided an open forum to address concerns and the implications of the reduction in the workforce to the local community.

At New Afton, a reduction to the workforce of 22 people resulted from a decrease of underground development rates to match the operating plan for 2014. This change in employee numbers was anticipated during life-of-mine planning. The affected employees were provided with severance packages above those required by law in recognition of their efforts on behalf of New Gold.

Workplace Diversity, Non-Discrimination and Equity

New Gold does not discriminate on the basis of race, religion, ethnicity, national origin, gender, age, sexual orientation, citizenship, veteran status, marital status or disability. These play no factor in salary and bonus calculations. Harassment, including sexual, physical and verbal, is prohibited.

Performance in 2013

In March 2013 at the New Afton Mine, there was one complaint of wrongful dismissal based on disability related to poor communication of available benefits. This complaint was taken very seriously and was ultimately withdrawn; we settled with the complainant. Changes were made to all communications issued to the workforce outlining benefit eligibility and terms, and language was updated in all employment contract template letters as a means to mitigate future risk of issues of similar nature.

Cerro San Pedro is an excellent example of our efforts to ensure we are as inclusive as possible. The operation was recognized in 2009 as an “Inclusive Company” by the State Government of San Luis Potosí, for its employment of people with disabilities and seniors, and has been endorsed as a “Socially Responsible Company” by the Mexican Center for Philanthropy every year since 2010. In 2013, Cerro San Pedro was also recognized by the Mexican Ministry of Labour with the designation of “Family Responsible Company”.

Collective Bargaining and Freedom of Association

At all New Gold operations, workers enjoy the right to freedom of association as provided by applicable labour law. We strive to include all levels of employees in decision-making processes and have not experienced strikes or lockouts at our operations to date.

Performance in 2013

On December 31 2013, approximately 58% of the Cerro San Pedro employees – 17% of New Gold’s employees – were covered by a collective bargaining agreement, which is the same percentage as the previous year.

Employee Development

Teamwork and employee development are core values for New Gold.

We strive to have our employees develop a performance and professional development plan with short-term and long-term goals, which are reviewed regularly and assessed yearly. Our employees have access to training opportunities to support their roles and develop their careers. Specialized training is provided to operating personnel and contractors, depending on their job requirements, for skills training, compliance with standards, and safety regulations. Health and safety training is critical at all sites and is reviewed regularly for continuous improvement.

Performance in 2013

In 2012, we launched an innovative values-based leadership program with a leading consulting firm, which was designed to create principled leaders and decision-makers. This program continued through 2013 and will carry on through 2014.