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Compensation and Benefits //

Why It Matters

Employees care about their compensation and want to feel valued for their contributions to the company. We believe that rewarding people through a well-designed compensation and benefits program enhances our ability to attract, retain and motivate talented and loyal employees. This is especially relevant in a country such as Mexico, which has a large, active mining sector, thereby making the labour market for qualified workers very competitive.

Management Approach

Competitive rewards

As part of our commitment to be an employer of choice, we offer competitive wages and benefits, as well as safety and production bonuses. We also offer a remote location bonus for workers at our Guanaceví mine, the most remote of our sites, where longer commute times make recruiting and retention an ongoing challenge.

For our Non-Union employees we consider different factors such as results achieved during the year, market salary analysis and internal equity to determine a competitive salary. They are also entitled to either production bonus that is paid on a monthly basis or an annual bonus that considers production and individual results.

Union employees are regulated by the annual wage increase negotiated with the union and they can also earn bonuses for achieving production and safety goals.

Pay equity and benchmarking

Men and women receive the same starting remuneration for the same position at all of our operations, as well as the same bonus for positions that are eligible. Every year we participate in an annual survey organized by the Mexican Chamber of Mining (CAMIMEX) to ensure that our compensation packages and salaries are competitive regardless of work location. The survey is conducted by an external consulting firm and includes data from 36 mining companies operating in Mexico.

Employee benefits

Our employee benefits include public health care, life insurance, paid vacation days and savings fund contributions. Non-union employees also get private medical fund insurance. In Mexico, a certain suite of benefits is mandatory by law, including a retirement savings plan called AFORE, in which the employee, company and government contributions can total up to 11.8% (5.15% company, 1.125% employee and 5.525% government) of an employee’s salary per year, to a maximum of 48,000 pesos (equivalent to approximately $3,200 Canadian dollars).

Our Performance In 2017

  • Total wages and benefits for our workforce in 2017 were $40.7 million, slightly higher than in 2016 ($39.7 million), as our workforce population remained similar to 2016.
  • Our entire workforce in Mexico earned at least 60% more than the minimum salary mandated by local laws. At our corporate headquarters in Canada, we offer compensation and benefits in line with industry standards.
  • While we tailor benefits at each of our mining sites to local needs, we strive to ensure employees across all of our operations have access to similar offerings. For that reason, we expanded medical coverage for major expenses to non-union employees in El Cubo, which brings them in line with our other sites.
  • At our Guanaveci site, some employees expressed concern about everyone’s bonuses being tied to overall production goals rather than personal production goals. A proposal is under discussion to change the bonus structure to a 50-50 split between both sets of goals.
  • There were 76 employees who took maternity/paternity leave, of which 73 returned to work during the year, with the other three expected to return in 2018. Mexican law entitles women to three months off (45 days before delivery, 45 days after) and fathers to five days off.

2018 Priorities

  • Upgrade Human Resources Policies and Procedures, implement a management software and evaluate key positions and talents.