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Bougainville Copper Agreement

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  Workforce - Training & Education
 
 
 

During construction, the workforce rose to over 10,000 people. Demobilisation following the completion of construction contracts reduced the figure to 7,553 at 31 December 1971. With the institution of the operating phase, the company ended 1972 with a workforce somewhat in excess of 3,000 employees, of which 70% were Papua new Guineas .

 

Bougainville Copper placed strong emphasis on education and training of indigenous people. In 1971, just under 2,500 persons participated in company training, including 95 students sponsored to scholarships in tertiary institutions of Papua New Guinea . A new training centre was opened at Panguna early in 1972 to cater for apprenticeship training in all trades used on the mine site. Apprentices in training totalled 240, company scholarship holders attending tertiary institutions throughout Papua New Guinea included 22 at the University, 28 at the Institute of Technology and 38 at the Lae Technology College . Training courses for skilled, semi-skilled and junior supervisory personnel continued.

 

In 1973, approximately 3,500 of Bougainville Copper's employees were involved in production activities with a further 500 in training. Service contractors dependent on company operations employed approximately 1,000 people. There were 330 apprentices in training covering a variety of trades. At the certificate level there were 100 trainees preparing for supervisory appointments. In the semi-skilled occupations, a total of 1,000 operators and repairmen qualified during the year. Professional education was being provided for 50 scholarship holders at tertiary education centres in Papua New Guinea .

 

Localisation of the Bougainville Copper Limited (BCL) workforce made good progress during 1974. The company's high priority for its localisation program was supported by a comprehensive training organisation. Approximately 77% of the workforce was Papua New Guineans. During the year a record total of 1949 people received vocational training in a variety of categories. In addition 322 apprentices in various crafts were in training. Scholarship holders at Papua New Guinean tertiary education centres had increased to 62. At year-end there were 80 trainees at the certificate level preparing for supervisory appointments.

 

Training of the BCL workforce progressed satisfactorily during 1975 despite a high turnover in the ranks of skilled Papua New Guineans. More than 3,600 employees completed short training courses. Over 850 employees were involved in management training courses and 37 apprentices had completed training.

A record of 112 apprentices completed their indentures early in 1976, leaving 272 in training. Tradesmen trained in prior years were commencing to assume supervisory roles, having gained job experience and completed courses in supervisory instruction. On the administrative side, Papua New Guinea Nationals were undertaking management responsibilities within BCL.

 

By 1977, over 300 tradespeople had qualified through the Mine Training College and some 70% remained with BCL either practising their trade or undertaking further taining for supervisory functions. A further 280 were training under the apprenticeship scheme. At the end of 1977, the workforce strength stood at 3,916 of which 3,063 were Papua New Guinean citizens.

 

As the project was the only large scale open cut mine in Papua New Guinea in 1978, local recruitment of sufficient numbers of appropriately trained employees was not possible. Since commencement, BCL had undertaken an extensive educational and training program to develop employees' own capabilities. In the early days of the mine's development, emphasis was placed on developing employees for operating positions involving work of a routine nature. As employees matured and their experience levels expanded, increasing attention was given to developing their supervisory skills so that they could take over more responsible positions. The investment in the Mine Training College and its facilities stood K3.9 million, while its teaching and administrative staff establishment totalled 61.

 

Apprenticeship recruits came from many provinces of Papua New Guinea and lived in single quarters built by BCL. The periods of apprenticeship varied between three and four years. Both formal classroom work and on the job training were undertaken. From 1970 to 1978, a total of 403 people completed technical apprenticeships in many trades including metal welders, motor mechanics, refrigeration mechanics, panel beaters, plumbers, electricians, heavy equipment fitters, painters and signwriters. The content of courses had altered over time to cater for changing needs and to ensure consistency with courses sponsored by the Papua New Guinea Government elsewhere in the country.

 

A wide range of courses suitable for school leavers entering the workforce, for example ‘English in a Business Environment', ‘Office Procedures', and various management skills were taught, either by BCL's own teaching staff, or by overseas lecturers and management consultants. National staff, who held management positions, were sent to external educational institutions to attend specialist courses. Some employees were seconded for extended periods to mining operations in Australia to gain practical experience. The benefits gained from exposing employees to outside ideas and techniques were substantial.

 

BCL granted scholarships for students to study for degree courses at either the University of Papua New Guinea in Port Moresby or the Papua New Guinea University of Technology in Lae. Scholarship holders were not bonded to BCL on graduation, so were free to choose employment wherever they wished. In 1978, 53 students holding company scholarships studied for their degrees in ten different disciplines. Of these, 15 gained their degrees, and 14 joined BCL as graduate cadets.

 

BCL continued to emphasis the employment and training of Papua New Guinea Nationals at all levels of management as part of its localisation program. The speedy recruitment of skilled staff became of great importance after the introduction of the Employment of Non Citizens Act 1978. This caused a number of problems for BCL in its recruitment of overseas personnel. The procedures involved in obtaining work permits and visas became extremely protracted. The efficiency and profitability of BCL's operations began to be adversely affected. In order to comply with the Act, information prepared from the manpower strategy begun in 1979 was forwarded to the Department of Labour and Industry as BCL's Training and Localisation Plan. From 7 February 1981, work permits had to be issued to non-citizens for positions in the organisation approved by the Government.

 

At the end of 1980 BCL's total manpower was 4,293 of which 3,416 were Papua New Guinea Nationals. An innovate staff development system had been formulated that allowed an individual to self regulate and measure his/her progress towards more senior levels in the organisation.

 

In its tenth year since beginning operations (1981) BCL was the country's largest industrial employer with a workforce of over 4,000. Of those 80% were Papua New Guinea Nationals. In the ten years a total of 600 Papua New Guinean citizens had completed their apprenticeships with the company and an even greater number had attended other training and development courses.

 

Reduction and deferment of some activities resulted in a decline in employment numbers. By the end of 1982, total manpower fell from 4,178 to 3,930 – 3,174 of whom were National employees. Training throughout the year saw 455 employees receive Technical training and 346 Operator training. In addition, Supervisory/Management Training Programs were attended by 340 employees, and 76 apprentices received their indentures. The existing Bougainville Mining Workers' Union Award was extended for a period of two years to 30 June 1984.

 

Under conditions of the Employment of Non-Citizens Act, BCL was required to submit regular Training and Localisation Program to the Department of Labour. Continued emphasis was placed on the development of Papua New Guinean employees in areas of greater responsibility within the company.

 

A major occupational health program was implemented in 1983. As part of this program the workforce was given a comprehensive medical examination over a two-year period. The health examination was done in conjunction with a plant occupational hygienic survey conducted by the concentrator environmental group. BCL was the first company in Papua New Guinea to undertake such a comprehensive study. New aspects were added to the health program including the formation of a Hazardous Goods Committee to review all aspects of the transport, handling and use of hazardous goods throughout BCL, analysis of dust and noise exposure in the mine crusher and civil works areas.

 

The Professional Cadet Scholarship increased to six awards in 1987. Under this scheme students were selected from secondary schools to go into years 11 and 12 in Australia , and then directly into Australian tertiary courses. BCL hoped that many of the cadets would return to seek employment within the company. Apprentice training, management training, support for studies and other training within Papua New Guinea and overseas, bursaries for attending local primary and secondary schools demonstrates some of the efforts BCL made to develop its people.

 

Eleven BCL apprentices competed in the New South Wales regional Work Skills Competition in February 1987 for the first time. The results were very encouraging. BCL with the approval of the Papua New Guinea Apprenticeship Board affiliated with the International Work Skills Organisation to enable BCL to enter 11 apprentice competitors in the 1988 International Work Skills Olympics in Sydney .

 

The major thrust of BCL's program of education, training and staff development was always directed towards developing the Papua New Guinea workforce. This proved to be the cornerstone of BCL's commercial success. In the early days of the operation the prime objective was to train employees to fill operating positions. In its latter years, the emphasis moved to higher-level general and management training to meet individual and company needs. However, apprentice training was always BCL's high priority. The scope of training is evidenced by the following statistics.

 

Total training Training

since 1970 in 1987

Operations – earthmoving equipment and all heavy and light vehicles 4,880 780

Apprentices – trade training in multiple disciplines 950 290

Sponsorships and Scholarships – for undergraduate and postgraduate

study in Papua New Guinea an overseas 320 40

Cadets – electronics, powerstation and communications training 30 20

Post Trade Training – higher technical certificate 200 20

Graduate – development program 130 100

Management and organisational development program 280 20

Essential Services – medical, fire, safety and security 4,870 140

Supervisory and Administrative training 3,480 550

 

The emphasis placed on training and the development of work skills did not come cheaply. In 1987 BCL employed 93 full-time training staff of whom approximately half were employed in the Mine Training College with the remainder being full-time training staff located in the operational areas of the company to develop on-the-job work skills. The direct cost of this training was K6.3 million, or 12% of the total wages and salary costs. Indirect costs would probably have doubled this figure.

 

This commitment to employee training benefited the Papua New Guinea economy as a whole. Although every effort was made to retain skilled employees to gain maximum benefit from the BCL training investment, trained employees who did leave BCL and remain in Papua New Guinea , continued to make a contribution to the country. Many of the 400 tradesmen who left BCL commenced their own businesses in towns and villages, while other ex-employees started commercial ventures such as trade stores, pig farming, horticulture and commercial fishing. Some graduates who benefited from BCL's sponsorship and development program left to work for, or establish, professional businesses such as consultancies, legal firms and medical practices.

 

At the end of 1990 the company employed 23 people of whom 10 were citizens of Papua New Guinea , and continued to support 11 citizens of Papua New Guinea in tertiary studies. By 1993 BCL had no employees. From 1993, the affairs of the company were managed by CRA minerals (PNG) Pty Ltd (now Rio Tinto ). Regular contact is maintained with the Papua New Guinea Government.

 

In 1999 BCL continued to use the services of Rio Tinto Minerals (PNG) Limited (RTM) under modified terms of the management agreement which had been in place since mining commenced. RTM provided management services ‘at cost'. Under the original agreement a management fee was payable based on mine production in addition to reimbursement of costs.

 

 
     
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