Canadian HR Reporter

CANADIAN HR REPORTER March 6, 2017 14 FEATURES damages award included certain amounts that he would have re- ceived and earned under the AIP and LTIP. e employer appealed, relying on the new language it had intro- duced in 2010 to its AIP and LTIP plans, which purported to limit an employee's entitlements on ter- mination. e employer argued that despite refusing to sign off on the changes, by continuing his employment, the employee had acquiesced to the amendments and was therefore bound by them. e appeal was dismissed. In arriving at its decision, the Court of Appeal agreed with the trial judge that by seeking a "sign-off " to the purported amendments, the employer acknowledged it could not unilaterally impose a change that was so highly material to an employee's compensation. By refusing to sign off, the em- ployee made it clear he rejected the amendments. Accordingly, there was no acquiescence. In any event, applying its rea- soning in Paquette, the court found that a provision that no bonus is payable when the termi- nation occurs prior to the bonus payment date is insufficient to deprive a terminated employee of the bonus she would have earned during the period of reasonable notice, as a component of dam- ages for wrongful dismissal. Key takeaways • When considering whether an employee is entitled to her bonus over a notice period, make sure the bonus plan language is care- fully considered to determine whether it adequately removes the employee's common law en- titlement to a bonus payment. • When drafting the bonus plan language, a simple statement requiring "active employment" or "No bonus is payable if ter- mination occurs prior to payout of the bonus" is inadequate. e language has to limit entitlement clearly and unambiguously. • Language limiting an employee's entitlement to bonuses should be brought to his attention prior to the start of his employment. • When amending bonus plan lan- guage, seek legal advice to ensure the amended plan is enforceable. • If litigating an employee's en- titlement to a bonus, submit evidence on the appropriate calculation for the bonus or risk, having the court apply an averag- ing formula. Nafisah Chowdhury is a partner at Miller omson in Toronto. She can be reached at (416) 595-2655 or nchowdhury@millerthomson.com. Simple statements inadequate BONUS < pg. 13 CORPORATE SOCIAL RESPONSIBILITY Boosting the bottom line, employee well-being through sustainable energy Goldcorp's Ontario mine plans to transition away from traditional diesel fuel By Brent Bergeron L ooking to improve its bot- tom line from an efficiency perspective — while also improving the health, comfort and safety of its on-site workers — Goldcorp has an ambitious plan in the works. e 15,000-employee gold pro- ducer is planning to transition away from vehicles running on traditional diesel fuel by fully elec- trifying one of its up-and-coming Canadian sites, the Borden Gold Project, acquired in 2015. is move represents a major shift in operational approach that will al- low the company to use battery electric vehicles (BEVs) for almost all the requirements at the site. This exciting initiative is an opportunity to positively impact employees' well-being while gen- erating significant economic ben- efits and driving down Goldcorp's overall greenhouse gas (GHG) emissions. Borden will not only showcase Goldcorp's commitment to sus- tainable and responsible mining, but also prove out that electrifica- tion is a smart business choice that will keep the sector competitive. e Borden project is located in a northern Ontario community with a long history of supporting the forestry and transportation sectors. e region is now ready- ing itself to welcome the min- ing industry as a new means to grow employment and economic opportunity. e Borden project is currently in the pre-feasibility stage of de- velopment, with on-site activities involving drilling and sampling to define and quantify the mineral resource. Once Goldcorp proves out the deposit at the site, it will move to- wards the advanced exploration phase in the second half of 2017, which is when the first electric vehicles — provided by Canadian companies Sandvik Mining & Rock Technology and MacLean Engineering — are expected to be put to work. "Moving a mine site from diesel fleet to BEVs is no small feat, and represents a shift in thinking we hope the industry will embrace once they see the business case in action at the Borden project," says Kerry Falk, marketing man- ager at Sandvik Mining & Rock Technology. "Not only will there be a notable improvement in on-site air quality due to an overall decrease in fuel use, there is also a lot of cache re- lated to demonstrating the use of battery-operated equipment that will be used daily — advances in technology that we as a com- pany are very proud of, and will contribute to a better workplace overall." While the initial driver for the transition to electric vehicle fleets in underground mining has been the cost savings from reduced ventilation requirements, "it's the human health dividend of battery- powered mobile equipment — re- moving diesel particulate matter from the underground environ- ment, along with less noise and less vibration — that will have an immediate, beneficial impact on mine workers," says Stuart Lister, MacLean's director of marketing and communications. "e 'mine of the future' not only has a nice ring to it, it will actually mean something sub- stantive and tangible for the min- ers themselves. is is a corner- stone of the sustainability legacy that Goldcorp is building with Borden." Environmental gains In addition to significantly im- proving the health and safety performance of the mine, mov- ing away from diesel will also help Goldcorp reduce its overall environmental footprint. In an in- creasingly competitive sector fac- ing greater emissions regulation in every jurisdiction worldwide, making sites more operationally efficient — in addition to the en- vironmental and health benefits — is a big win. The company's battery and electric mobile equipment will eliminate all greenhouse gases (GHGs) associated with the movement of ore and waste rock, equal to roughly 50 per cent of the total GHGs on site, or 5,000 tons of CO2 per year, and will reduce maintenance and energy costs. With the decrease in emissions comes a reduction in under- ground ventilation needs. e use of an efficient, on-demand venti- lation system will provide added benefits: e Borden project will require 50 per cent less ventila- tion than a standard diesel under- ground mine. By moving away from diesel and achieving other reductions associated with the use of clean technologies, Goldcorp can avoid more than 7,000 tons of CO2 and eliminate three million litres of diesel fuel, one million litres of propane and 35,000 megawatt hours of electricity every year — which represents a reduction in operating costs of $7.5 million per year. Eliminating diesel will also improve working conditions by removing diesel particulate and other gases such as NOX and SO2 from the workplace. One of Goldcorp's values is to embrace advances in technology that make good business sense not only from a dollars-and-cents per- spective, but that also positively impact the environment as well as its people, who are the most valued assets. Mining is an energy-intensive industry — as much as 15 per cent of site operating costs come from the consumption of electric- ity, diesel, propane and natural gas — so focusing innovation efforts toward a big cost driver makes obvious business sense. Year over year, over the life of a mine site, those savings and emissions avoided add up, with a great over- all benefit. Skill development Borden will rely on digital and smart controls, including tech- nology where vehicles are oper- ated remotely to maximize equip- ment use for continuous mining underground. is remote capability benefits employees by minimizing the time spent underground, which decreases overall risk, as well as encourages new skill develop- ment for those interested in mas- tering the operation of remote control technology. Mining as a sector is continu- ing to innovate, with fascinating advances that challenge pre-con- ceived notions and beliefs about how mining is done. Goldcorp has chosen to work with trusted and leading industry partners to help the company step outside its comfort zone and expand how it thinks about taking resources out of the ground. This project is an important step to take care of its people and the planet, while also mak- ing sure the business continues to drive productivity and economic improvements. As work progresses this year at Borden, Goldcorp is hopeful that demonstrating the numer- ous benefits of BEVs will serve as an example of leadership in in- novation, clean technologies and health and safety that will be ad- opted by other mining companies, big or small, worldwide. With this flagship project, the company aims to generate new awareness that the "mine of the future" can deliver great gains both for corporate performance and for employees. Brent Bergeron is Goldcorp's execu- tive vice-president of corporate af- fairs and sustainability, based in Vancouver. The remote capability benefits workers by minimizing time spent underground.

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