The most important aspect of our operations is to make sure everyone who works for us returns home safe and sound at the end of each workday. Our health and safety management systems failed tragically in 2009 when two of our employees and two contractors working for us were fatally injured on the job. This is unacceptable to us, and our entire company felt these losses.

We have programs and specific measures in place to avoid injuries, but it is clear that we have much more work to do to strengthen our safety culture if we are to reach our goal of having no fatalities, no injuries and no occupational illnesses – a condition we call “zero harm.” A highly skilled work force that actively pursues zero harm and is deeply committed to mutual care and peer protection is the key to success. Our Human Performance Initiative is dedicated to eliminating hazards and human errors that cause accidents. Although this culture change is taking hold, we are still concerned that productivity takes precedence over safety and health in some cases, and we are working to change that. 

Our incentive plan for executive management includes a substantial penalty if there are employee fatalities. As a result of the deaths that occurred in 2009 and other factors, executive management did not any receive incentive compensation. All employees lost a portion of their incentive compensation because of the fatalities.

We have other work force challenges, particularly as we reduce our work force to address new economic realities and the need to find and retain the best talent to meet our future business goals. We must fully engage our work force and find ways to foster an environment that makes people want to work and stay here.