During 2019, we continued to maintain positive and collaborative relationships with the unions that represent our employees, working cooperatively with 15 unions in eight locations worldwide. Approximately 37% of our global employee population is covered by collective labor agreements (CLA). Our operations in Indonesia, Europe and South America are all covered by a minimum of 65% representation. In North America, our workforce is not represented by unions. Our hourly employees elect to work directly with company management rather than through union representation utilizing our Guiding Principles contract that all workforce members sign when joining the organization. It is a contract that sets out how we work together within the values of the company to achieve our collective goals. Most recently updated in 2018 with input from employees, the Guiding Principles include a problem solving process that complements our broader employee grievance mechanisms described above. It is a unique approach that adds significant value to both the workforce and the company.

We engage openly with our employee and union leadership to negotiate and uphold labor agreements, recognizing that prolonged strikes or other work stoppages can adversely affect our business, our workforce and regional stakeholders. There were no strikes or lockouts at any of our operations in 2019. Collective bargaining is conducted at locations of mutual agreement with facility accommodations made onsite or in satellite offices for workers’ representatives to assemble.

Subject to certain statutory requirements, Freeport-McMoRan has retained the authority and freedom to suspend, limit, curtail or restructure its operations, as it deems appropriate, to respond to varying economic conditions. When such decisions are made, they are communicated to employees at the earliest appropriate time along with information on whose employment may be affected by the change in operations and the benefits that are available should reductions in employment occur. The company's established policies and collective bargaining agreements set forth the processes used for determining who may be affected by any reductions in workforce associated with such operational changes.

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