Courageous Safety Leadership At Teck Robin Sheremeta VP Health and Safety Leadership Everyone Going Home Safe and Healthy Every Day 1
About Teck Coal (100%) World s 2 nd largest seaborne steelmaking coal producer >100 year resources Highland Valley (97.5%) ~15 year mine life to 2026 Mill modernization underway to expand production Red Dog (100%) Large scale, low cost zinc production ~20 year+ mine life, with potential to increase further Red Dog Fort Hills Highland Valley Elk Valley Trail Pend Oreille Duck Pond Antamina Quebrada Blanca Relincho Andacollo Refinery Mine Advanced Project Trail: Top 5 zinc/lead facility in the world Antamina (22.5%) Large, low cost copper-zinc co-product mine ~20 year mine life, with 30% expanded production Quebrada Blanca (76.5%) Current operations to 2016 Full feasibility for expansion to ~200,000tpa copper in concentrate production Andacollo (90%) Expansion completed to quadruple production >20 year mine life Market leadership, growth, diversity and cost competitive production 2 Note: References throughout to mine lives are based on Teck reserve estimates (or where indicated resource estimates) and current production rates. Actual mine lives may vary
Evolution of Safety Historic Approach Good old days : (accidents will happen) Injury frequency rate Era of Engineering: (eg. hand rails, limit switches, machine guards, etc.) Era of Legislation: procedures, laws and Regulations (eg. Mines Act) Era of Behaviour Based Safety: observations How do we close this gap? Time 3
Traditional Focus Cultural Approach Technical Programs We ve primarily focused on the technical side of safety 4
Traditional Focus Cultural Approach Technical Programs The Cultural side has been more difficult to figure out We ve primarily focused on the technical side of safety 5
Teck's Evolution of Safety Began in 2005 with our first Health and Safety Conference
Teck s Evolution of Safety Historic Approach Good old days : (accidents will happen) Injury frequency rate Era of Engineering: (eg. hand rails, limit switches, machine guards, etc.) Era of Legislation: procedures, laws and Regulations (eg. Mines Act) Era of Behaviour Based Safety: observations How do we close this gap? Era of Values Based Safety: CSL, VFL, etc. Time 7
Values and Beliefs Dictate Actions Accidents happen Nobody Listens Production over safety We don t report incidents We don t listen to each other We take shortcuts We put ourselves at risk Good old days LTI MA FA Near Hits At Risk Behaviour 8
New Values and New Beliefs Lead to Different Actions All injuries are preventable I am responsible for safety My actions impact others We report all incidents We listen to each other s concerns We lead by example We manage our risks Valuesbased Safety Everyone Goes Home Safe and Healthy Every Day 9
A New Focus at Teck The Balanced Safety System Achieving our health and safety vision requires Commitment and Leadership from every employee Cultural Approach Management Commitment Courageous Safety Leadership Visible Felt Leadership Technical Programs Standards and Auditing Risk Assessment Training and Procedures We must have effective technical Safety Programs to support the overall safety system Who and Why What and How 10
11 2009 Courageous Safety Leadership Rollout at Teck
12 The Courageous Safety Leadership Journey
1 st Major Learning - Courageous Safety Leadership had to be supported by Management in the field. Formalized Visible Felt Leadership Program Visible Felt Leadership is now an established practice when Senior Leaders visit sites. Every General Manager, Superintendent and General Foreman have formal weekly site tours focused on nothing but employee engagement around safety. 13
2 nd Major Learning Front Line Supervisors needed additional training Frontline Employees, Supervisors and Managers regularly reported their biggest challenges were: Prioritizing and managing their time Building effective relationships Having difficult conversations about performance Managing the tensions between production and safety Collaborating across the operation Understanding the bigger picture Having the confidence to lead! 14
Leadership Success Profile at Teck Supervisor Competencies Motivation & Drive Results Focused Performance Coaching Drive Business Results Commitment Safety Personal Awareness Management of Self Willingness to Learn Integrity and Honesty Discipline Excellence Teck Values Innovation Integrity Planning & Prioritization Problem Solving Organize & Mobilize Resources Strategic Alignment Teamwork Respect Working with & Leading Others Collaboration Communication Builds Relationships 15
Leading for the Future Program Framework Participants will be from across the organization and brought to one location GFs / Managers will be involved in development of the participants on site Modules will include pre work and site based follow up activities 9 months AL 1 AL 2 Pre Program Module 1 4 days Intersession 1 Module 2 4 days Intersession 2 Module 3 4 days Post Program Regular check ins with cohort in between modules Partnership between Participant and Supervisor (GF) Partnership between The Refinery and Participant s Supervisor 16
3 rd Major Learning Must Follow up with Consistent and Continuous Refreshers Developed Monthly CSL Topics for two years Developed a Refresher Course in 3 rd year. June 1 st, 2012 started rolling out CSL: Next Steps to 12,000 employees and contractors. 17
Key Success Factors Presentation/session connected with all levels of organization Everyone in the company went through the same process Absolute support from Executive level Corporate structure was created to focus on initiative Visible Felt Leadership initiative Supervisor development initiative Integrated with other strategies in safety Employees have taken principles home with them 18
Other Key Challenges Unions not fully engaged with CSL Cynicism of the past (older employees) Employees expected immediate change in organization Slow to shift culture and difficult to maintain momentum Tremendous commitment required in time and energy 19
2011 Safest Year on Record for Teck 1. 2011 Total Reportable Injury Frequency improved 18% over 2010 and lowest on record. 2. 2011 Lost Time Injury Frequency improved 11% over 2010 and severity is one third of 2010 and lowest on record. 3. Potential Fatal Occurrence and Serious Incident frequencies improved 37% over 2010. 300 Teck: Severity 2003 to 2012 5 0.70 0.60 250 4 0.50 Severity 200 150 100 50 0 2003 2004 2005 2006 2007 2008 2009 2010 2011July ytd 2012 3 Fatalities 2 1 0 0.40 0.30 0.20 0.10 0.00 2010 2011 2012 Aug YTD PFO Serious HPI 20
Teck's Evolution of Safety What began in 2005 with our first Health and Safety Conference
Teck's Evolution of Safety Has become
Here s a Few Things I ve Learned about a Values-based Approach It takes leadership and commitment from all levels of the organization but it must start at the top to be successful. It s not what we say, it s what we do that makes a difference. It takes time; a lot of time 23
But here s the real value Courageous Safety Leadership has had as much impact on our employees home life as it has on their work life. And they are Going Home Safe and Healthy Every Day 24
Thank You Everyone Going Home Safe and Healthy Every Day 25