Arch has a market-based compensation program and actively benchmarks its hourly and salaried positions to ensure market alignment relative to our direct competitors for talent. In addition, Arch and its subsidiaries offer a comprehensive benefits package to all full-time employees. This package addresses the needs of its employees and their families in the areas of medical, prescription, dental, vision, life insurance and retirement. The company also offers multiple wellness incentives, programs and tools for the well-being of our employees and dependents.
Arch and its subsidiaries are committed to providing a fair and living wage to all employees, and provide some of the highest-paying jobs — as well as some of the most attractive benefits packages — in each of the communities in which they operate. The company recognizes employees’ rights to collective bargaining and freedom of association.
Strong Corporate Culture
Average combined voluntary retention rate by Arch and its subsidiaries in 2020
Arch’s responsible and respectful corporate culture has allowed it to attract and retain an experienced, talented and high-performing workforce. The company and its subsidiaries had an average voluntary retention rate of 95% in 2020. Approximately 41% of the company’s workforce had at least 10 years of company service at the start of 2021.
Corporate-Wide Retention Rates
Arch recognizes the importance of furthering education and development of its employees through the various stages of their careers. To that end, the company offers free access to thousands of courses that are designed for personal and career development through an online education platform. A number of these courses are tailored so employees can earn Continuing Education Units (CEU), Professional Development Hours (PDH), and Professional Engineering (PE) Units to fulfill accreditation requirements. Additionally, employees are eligible for a tuition reimbursement benefit through a program designed to encourage and support development of employee skills by providing financial assistance for an approved course of study. In the past five years, Arch’s tuition reimbursement program totaled more than $1 million. These programs reflect Arch’s view that ongoing employee development is good business as well as a valuable benefit that can help attract and retain talented and skilled people.
Arch also works with universities and co-op programs to attract top candidates in key fields, while seeking to develop its in-house talent and providing opportunities for employees to increase their level of responsibility within the organization. In this way, Arch prepares a steady stream of leaders for ongoing succession and creates a strong bench. As part of this effort, employees participate in formal annual performance reviews, which create a valuable opportunity for feedback and communication on a range of matters, including career development, for both the manager and the employee.
Leadership Workshop Participation
Arch also invests significantly in the development of its next generation of leaders. Over the past five years, Arch has designed and conducted ongoing multi-day leadership workshops designed to educate high-potential corporate and subsidiary employees about Arch’s strategic direction, financial position, asset base and corporate culture, as well as to enhance leadership skillsets. More than 450 high-potential employees have participated in those workshops, with the company’s senior management team and other senior leaders participating in the training sessions.
In addition, the company holds a safety and environmental stewardship summit at its headquarters location in Saint Louis each year. More than 240 employees from all subsidiary mine sites — in addition to the senior leadership team and corporate employees — participate in this summit each year, which creates opportunities for sharing best practices across the operations while reinforcing the company’s deep commitment to excellence in these critical areas of performance.
Arch strives to adhere to the highest principles of business ethics and to foster a culture of integrity that infuses every business action and interaction. As part of this commitment, employees across all levels of the organization are educated on good corporate governance practices and ethical business conduct.
These ethics principles are reinforced in the company’s Code of Business Conduct, which details the expectations for the Arch board of directors, the company’s senior management team, and the entire Arch workforce. Every employee receives and is urged to study the code, and nearly 100 percent of the company’s salaried employees, including new hires, are expected to complete annual online training on its contents. Included in this training is a comprehensive set of anti-corruption policies and procedures, and a pledge to adhere to these policies. Key areas addressed in the code include marketplace integrity, anti-trust obligations, and best practices in federal and state lobbying activities.
In addition, employees that perform certain functions with a higher exposure to international activities — such as the sales force, legal team, purchasing department and accounting group — are trained in specific anti-corruption policies in accordance with the U.S. Foreign Corrupt Practices Act.
Arch’s legal team conducts ongoing training to ensure that the company’s ethics policies are understood, followed and embraced. Training on various aspects of our ethical expectations is a central part of the company’s previously discussed leadership workshops, which are conducted at Arch’s corporate offices an average of four times per year and attended by up-and-coming leaders from across the organization.
Arch’s board of directors has a critical oversight role in ensuring that everyone in the organization embraces ethical business practices and adheres to both the spirit and the letter of the code. Arch’s board shares the view that clear and responsible corporate governance policies are essential to the company’s long-term success.
Arch strongly encourages employees, customers and investors to report any ethical misconduct or violation through the company’s email or telephone hotlines. These lines of communication are maintained by an independent third party, and all reports are taken seriously and promptly investigated. When warranted, outside resources are secured and immediate action is taken.
In addition to the code, each Arch subsidiary requires a commitment from its employees to conduct themselves in a safe and ethical way, as set forth in their respective handbooks governing employee conduct. Specifically, each employee commits to comply with all safety, health and related laws and regulations, and to report violations or practices deemed unsafe or potentially harmful to the environment. Moreover, a fair treatment policy underscores each employee’s obligation to fellow workers and the environment through written standards designed to maintain common, honest and decent behavior.
Arch C.A.R.E.S., which was implemented in 2019 across the organization, further reinforces the company’s ongoing efforts to ensure a safe and respectful work environment. The fundamentals of the program are: (C) Courage to stand up for oneself and others; (A) positive and encouraging Attitude; (R) Respect for others; (E) Excellence in what employees do and say; and (S) Safety. The program endeavors to further ingrain mutual respect as a core value in Arch’s corporate culture. Just as employees are encouraged continuously — by the senior management team, operations management and their co-workers — to “work safely,” the Arch C.A.R.E.S. program reminds them to “work respectfully” and to strive for excellence.
Setting the Same High Standards for Suppliers
Arch expects its suppliers to conduct business in the same ethical and responsible manner that it requires of its own employees and subsidiary operations.
Arch Supplier Code of Conduct
This Supplier Code of Conduct sets forth the key principles under which suppliers to Arch Resources, Inc. and its subsidiaries (“Arch”) are required to operate.
Arch is committed to doing business ethically and safely and to following all laws that apply to it, and expects its suppliers to meet the same standards.
This Supplier Code of Conduct is to formalize Arch’s practices and to make clear that Arch expects those providing products and services to us (collectively, “Suppliers”) to meet the above commitment and help Arch maintain its reputation.
Arch specifically expects its Suppliers to:
- Act with integrity
- Suppliers are expected to never misrepresent or purposely omit material facts relating to Arch business or billings.
- Suppliers are expected to deal fairly with Arch, its employees and other suppliers.
- Suppliers are expected to not engage in the following activities:
- Defaming or lying about a competitor’s business or products;
- Making false statements; and
- Obtaining information by inappropriate means.
- Suppliers shall never offer or accept bribes, kickbacks, inappropriate gifts or hospitality, or other improper incentives in connection with Arch’s business.
- Suppliers are expected to avoid any conflict of interest relating to financial interests or other arrangements with Arch employees that may be considered inappropriate.
- Follow the law
- Suppliers shall know and follow the laws that apply to them and their business.
- Suppliers are expected to treat legal requirements as a minimum standard.
- Suppliers shall follow all applicable requirements related to safety and health, and shall notify Arch if a violation of such requirements occurs while the Supplier’s employees are on Arch’s premises.
- Suppliers are expected to notify Arch as to any material issues with the goods and services they supply — especially health and safety issues.
- Suppliers are expected to support Arch’s commitment to the environment by operating in full compliance with both the letter and the spirit of environmental laws and Arch policies and by actively encouraging care and regard for the environment.
- Keep accurate records
- Suppliers’ books and records shall be accurate and clearly describe and identify the relevant facts or the true nature of the transaction with Arch, and properly and timely classify and record entries in compliance with accounting principles.
- All claims, vouchers, bills and invoices shall be accurate and proper.
- Time spent on Arch work shall be recorded and reported appropriately.
- Arch equipment and other property and resources are expected to be used only for Arch business.
- When Arch auditors or managers ask Suppliers to respond to requests, the responses are expected to be complete and truthful.
- Treat people with respect
- Suppliers shall provide equal opportunity for employment and advancement on the basis of ability and aptitude without regard to race, color, religion, sex, national origin, age, disability, sexual orientation, gender identity or veteran status.
- Suppliers are expected to recognize and compensate employees based on their performance.
- Suppliers shall take affirmative action with respect to all employment practices affecting minorities, females, veterans and individuals with disabilities.
- Suppliers shall provide benefits without regard to race, color, religion, sex, national origin, age, disability, sexual orientation, gender identity or veteran status.
- Suppliers shall ensure that their employees do not engage in any conduct that creates an intimidating, hostile or offensive work environment.
- Protect Arch’s information
- Suppliers shall not use any Arch proprietary or confidential information, except as required by the work.
- Suppliers shall not disclose Arch’s proprietary or confidential information to any unauthorized person or company.
- Suppliers shall take appropriate action to prevent the disclosure of any of Arch’s confidential or proprietary information so that unauthorized persons do not have access to it.
- If a data breach occurs, Suppliers are expected to immediately notify Arch, and take appropriate actions to mitigate the effect of the breach.
Arch considers its reputation for fairness and integrity to be one of its most valuable assets. We want to build trust-based relationships with our Suppliers who follow the above principles. We expect our Suppliers to cooperate with our requests for information and audit access. If a concern arises, our desire is to work with the Supplier to identify possible improvements. However, if a Supplier cannot or will not correct an issue, we reserve the right to end the relationship.
Statement on Human Rights
Respect for Human Rights is fundamental to the way Arch manages its business. Arch’s Human Rights Statement, along with its Code of Business Conduct, represents the company’s commitment to providing an inclusive work environment that makes safety and respect in the workplace the top priority in everything the company does, and applies enterprise-wide and across all of the company’s operating subsidiaries. Arch’s Statement on Human Rights is structured to reflect common principles found in the United Nations Universal Declaration of Human Rights, OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles on Human Rights. The board of directors has oversight of all matters associated with the company’s human rights policy, endorses the policy fully, and has ultimate responsibility for its effective application.
Arch’s Human Rights Statement pledges the following:
- We do not tolerate any form of workplace discrimination, harassment or physical assault and we strive to make sure all employees, contractors, vendors and suppliers are treated fairly and with respect;
- We are committed to protecting the rights of women and minority groups, and we provide equal opportunity for employment and advancement on the basis of ability and aptitude without regard to race, color, religion, sex, national origin, age, disability, sexual orientation, gender identity or veteran status;
- We are committed to a diverse and inclusive workforce and take affirmative action with respect to all employment practices affecting minorities, females, veterans and individuals with disabilities;
- We do not tolerate child labor or any form of forced or compulsory labor, whether on behalf of Arch, its subsidiaries, vendors or suppliers;
- We expect our employees to report any suspected violation of the law, as well as any instances of unlawful harassment, safety concerns or human rights violations, through the established procedures in our Code of Business Conduct, which is distributed to all employees, and we have integrated this strong expectation for compliance and reporting into our continuous and comprehensive training efforts;
- We respect the human rights of all persons in the communities in which we conduct business as well as maintain our long-standing status as an industry leader in mine reclamation and environmental stewardship;
- We recognize the right to water as a fundamental human right, and we protect this critical natural resource through our water management systems, processes, and standards;
- We are committed to the principle of free, prior and informed consent with respect to any relationships with indigenous peoples’ land and resources;
- We prohibit retaliation in any form for reporting any complaint in good faith; and
- We require that all of our subsidiary operations abide by the tenets of our Statement on Human Rights, and expect our suppliers, vendors and partners to do the same.
We are committed to engaging with our communities – including residents, businesses, landowners, government officials, Tribal Nations as applicable, and other stakeholders – on all potential impacts of our subsidiary operations, including human rights. Our strong and active community advisory panels at our largest metallurgical mines — as well as the other forums we use to engage our communities — provide important and effective channels for feedback from community members on a full range of critical issues, including human rights. We recognize that we must continually listen to stakeholder feedback as regards our human rights policy and performance in order to understand, prevent and mitigate any adverse impacts of our activities.
Our general counsel is responsible for implementation and oversight of our human rights policies and programs. Our board of directors maintains ultimate oversight. With all of our subsidiary mining operations in the United States, the salient human rights risks we have identified are:
- Employee health and safety,
- Community health and safety, and
- Environmental quality and compliance.
We report our performance against these topics — as well as the extensive steps we are taking to mitigate the risks associated with these topics — in the Our Approach section of our website, which addresses a full range of environmental, social and governance matters. The steps we are taking to mitigate risks associated with employee health and safety are addressed most specifically at archrsc.com/our-approach/safety/, although many other segments of the Our Approach section of the Arch website are also pertinent. The steps we are taking to mitigate risks associated with community health and safety are addressed most specifically at archrsc.com/our-approach/community/, although — again — many other sections of the Our Approach section of the Arch website are also pertinent. The steps we are taking to mitigate risks associated with environmental quality and compliance are addressed most specifically at archrsc.com/water/, archrsc.com/air, archrsc.com/land, archrsc.com/climate and archrsc.com/waste.