The outcomes of the Joint Working Group’s collaborative efforts.

In connection with the implementation of the amendment to Section 2.2 of the "Procedure on Determining Average Salary" ("Amendment to Procedure") approved by the Minister of Labor and Social Protection on 17 March 2022, Oyu Tolgoi LLC (Company) and the Trade Union Committee of Oyu Tolgoi LLC’s Mining Employees (TUC) established a Joint Working Group to review the underlying reasons for the decision to make changes in the average salary components and determine the next steps.

The Joint Working Group collaborated from 6 March to 20 March 2024, released a joint conclusion that deliberated on the underlying reasons for the decision and transitioned to the next step on 26 March 2024 to come up with a mutually beneficial solution that aligns with the interests of both the business and employees. To date, the Joint Working Group has held a total of 20 meetings, with the last two meetings conducted in an extended format, involving all leading members of the TUC.

Taking into account the impact of implementing the “Procedure on Determining Average Salary” and other factors arising from it, as well as the principle of long-term and sustainable benefits, and to reduce the impact on our employees, the Company and Trade union agreed on a package of proposals aimed at ensuring the health and well-being of all our employees and their families and reached the following decision:

Base salary increase for all employees of Oyu Tolgoi LLC by 4% effective from 10 April 2024 and paid out starting from 10 May 2024;
Health & Accident insurance coverage extended to include up to 2 family members (in addition to the employee), starting in August 2024;
MNT1,000,000 (one million) as support for the employee's health and well-being to be availed when an employee takes annual leave physically or during a roster break, once a year, starting from 25 April 2024;
Starting from 10 April 2024, employees who commute between their home and their normal place of work will receive an MNT 300,000 increase in meal and transportation allowance to subsidise their meals and transportation.
Establish a joint working group to develop the project scope and plan for the career framework review for the engineering and technical personnel in alignment with the Rio Tito standards, and start implementation in Q3 2024;
The average salary component used for calculating overtime and night shift allowances for employees will include the following allowances and payments effective from 10 April 2024. It will be reflected in the payroll system of Oyu Tolgoi LLC and the relevant procedures:
Base salary;
Roster allowance;
Non-standard working condition allowance;
Continuous maintenance payment;
Continuous operations allowance;
Annual Leave Salary.
The parties worked together to find a solution that was the most feasible and mutually beneficial, considering the situation of both the employees and the company. It has been critical to ensure that we can ramp up a safe and sustainable business so that we have a long-term safe workplace with fair remuneration.

This solution is inclusive, extending benefits to all employees, and can be promptly implemented without the need to await the next renewal of the Collective Agreement.

During the extended working group meeting, the parties reviewed the implementation of the 2022-2025 Collective Agreement signed between Oyu Tolgoi LLC and the TUC of Oyu Tolgoi LLC’s Mining Employees. It was concluded that the following benefits, payments, and incentives provided to all employees and their families, excluding base salary and health insurance, amounting to approximately 58 billion MNT per annum, are significantly beneficial:

Annual bonus
Life insurance and benefit for permanent disability
Meal and Transportation allowance
Retirement payment
Redundancy payment
Parental leave
Bereavement payment
Retirement saving fund contributions from the employer
Long service recognition
State and sectorial award monetary incentives
Health and accident insurance
Public holiday payment
Global nomads study tour
Children’s Day gift etc.
For more information on the implementation of the Collective Agreement, please click here to view the video.

Oyu Tolgoi LLC has consistently been the most preferred employer in the business sector, thanks to our unwavering commitment to prioritising the well-being of our employees and their families, and our close collaboration with TUC.

We are dedicated to further enhancing our reputation as the employer of choice through ongoing joint initiatives and are confident that you will stand by us as we implement changes and provide support throughout the process.

About Oyu Tolgoi LLC (www.ot.mn)

Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia and Rio Tinto. Located in the South Gobi, Oyu Tolgoi commenced shipment of product to customers in July 2013. Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. For Oyu Tolgoi, nothing matters more than safety. The business operates under the principle that if a job cannot be done safely, it will not be done at all.

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https://www.ot.mn/the-outcomes-of-the-joint-working-group-s-collaborative-efforts/