Human Resources
Northgate's success is in great part dependent on recruiting and retaining a competent, professional workforce. To motivate and maintain this workforce, Northgate offers a challenging and rewarding work environment, as well as a competitive compensation program comprised of salary and benefits. Northgate also maintains a staff development and succession program for its key executives and operational management.
Northgate also offers a share option plan designed to align the interests of key employees to those of its shareholders. At December 31, 2008, 5,758,500 options were outstanding under the plan. Options vest over a fouryear period and have a seven-year life to encourage a long-term view toward creating shareholder value. An employee share purchase plan ("ESPP") is also available to all full-time employees of the Corporation in Canada. Under the terms of the ESPP, each full-time employee can buy treasury shares up to 5% of their base salary at the current market price and Northgate will contribute additional shares equal to 50% of the employee's contribution.
Hourly employees at Kemess are members of the International Union of Operating Engineers (Local 115). In April 2008, a new three-year agreement was ratified, which will expire on December 31, 2011. The agreement includes an enhanced severance package, which provides for a lump-sum payment to an employee who remains at Kemess until the employee's last scheduled shift.
In April 2008, Northgate put in place Australian Workforce Agreements and a Greenfield agreement at Fosterville as part of the conversion to owner mining from contract mining. Virtually all of the employees of the contractor joined Northgate during this conversion. These agreements were designed to last for a period of one year and negotiations have already begun towards a collective agreement with the workforce at Fosterville.
On September 26, 2008, a new three-year collective agreement was ratified by the Employee Collective, comprised of the 155 production and maintenance employees at Stawell. This agreement replaces the previous three-year agreement that expired on September 26, 2008.