KEYS TO THE DEVELOPMENT AND LONG-TERM RETENTION OF THE WORKFORCE OF THE FUTURE

Coal Age; Aug2006, Vol. 111 Issue 8, p46-47, 2p

Section: OPERATING IDEAS When I first went to the Midwest, what immediately got my attention was the relative youth of today's workforce. It's a treat for me to talk to the employees on each shift and spend time at our mines. Today, I look into the eyes of these 20-something-year-olds and realize the huge responsibility we have in providing young people with all of the tools to help them be safe, healthy and productive for the next 40 years or longer, so they in turn, can provide energy solutions that provide American families with a better quality of life. For years, surveys in the East have shown that the average age of the workforce was in the low to mid-50s. Most of the industry recognized that it needed to get on the ball and hire young people-the next generation. At my current Peabody Energy Midwest locations, the average age is now 38. As the company expands, and with every group it hires, we will continue to bring on board younger talent. Coal companies should realize two important points: the U.S. coal industry is sitting on the opportunity of a lifetime to train, hire, develop, and mold the workforce of the future; and, the coal industry will have more than ample human resources to fill all of its needs, whether, it's hourly, technical, or managerial, for many years to come. We just have to be smarter about how we attract and retain the best and brightest in the industry. Coal markets are among the most robust I've seen in my career. Global energy consumption is projected to increase by more than 70% by 2030 as emerging economies develop their coal resources and increase their per-capita energy use. The U.S. Energy Information Administration's (EIA) International Energy Outlook forecasts that coal will fuel this growth, projecting coal use to nearly double to 10.6 billion tons per year, which is 2 billion tons higher than the projection made just two years ago. With such huge growth before us, how do we as an industry prepare the workforce of the future? Peabody is seeing a tremendous interest in the excellent career opportunities we provide. At a recent job fair in Illinois, for instance, the company received six applicants for every job available. The new Peabody Center of Excellence training center in West Virginia has already graduated two new miner groups through a nine-week training program that provides a level of skills training that is four times longer than the state requirement, and we provided various training programs for more than 1,700 employees there. And word about this program is spreading fast: We had over 1,000 unsolicited applicants in just three months. That's significant when you consider that each new miner class takes 20 students. Let's look at Virginia Tech (VT) as an example. (Editor's note: Hull serves of VT's board of directors) VT has a lot of bright young people that want to be mining engineers, including many young females. We need to cultivate these future leaders. We've lived through the lean years when

out of the entire VT graduating class, the coal mining industry hired less than a handful of graduates. We can't afford to let any of these students get away. Today VT and many other colleges are elated that they are swamped with bright people wanting to be mining engineers. As an industry, we have to be prepared to meet the changing needs of our changing world. Consider the perspective offered in The New York Times best seller, The World is Flat. It's a thick book, more than 400 pages long, with parts that reference a lot of common sense ideas. One of the points it makes repeatedly is that, if a task can be done offshore cost-effectively, it will be done offshore--mainly in India and China. All of these young people in America that think they are going to get computer related or customer service jobs when they get out of school are in for an awakening. If you compound the lower wages and the increased productivity of what can be done offshore, there is no doubt where the work is going to go. It's increasing every day. As an example in the book, large firms processing income taxes will take a person's name and social security number off a return and give it to someone in India. They will calculate and complete the return, and it will be accurate. The company charges the customer a large fee for a service that cost them a fraction of that amount. Legal briefs can be handled the same way. Instead of having someone in Boston research something, why not have someone Google it in China? Coal mining is one job that can not be outsourced. What's the best opportunity for young people today to get a satisfying, high-paying job in the United States? They need to find an industry that Americans do well. Secondly, they need to locate an industry with plentiful resources here in the United States. Those two points describe the American coal industry. We are the best at what we do and the resources have to be mined locally. The worldwide production of coal is going to increase for some companies, but America's energy needs for decades to come will be supplied more and more by the American coal industry With employees working right here in the heart of our country. It's indeed an exciting time to be involved in the coal mining business. A few key points could help in the process of developing the workforce of the future: Develop a well-defined hiring standard and stick to it --Develop an extensive search to find the right candidate with the right qualifications and skill set. And don't waiver on your standard. One mine manager recently told me he'd interview 50 people to get a good candidate if necessary. That's the right approach. The talent is out there and can be found. Establish a comprehensive training program for new/apprentice employees --Peabody's Centers for Excellence are being developed regionally offering best practices, virtual technology, advanced curriculum and hands-on skills applications for key career tracks with courses ranging from nine weeks for new miners to nearly one year for engineering graduates. New miners have the opportunity to learn how to operate continuous miners, roof bolters and other mining equipment using virtual technology before they graduate to the real thing. This vastly improves safety, the skills and the confidence of our employees. They visit the mines and they learn a lot of different things about mining. And the programs that we are doing in Appalachia are being rolled out in the Midwest and West.

Establish a trial/orientation period of at least 60 days --Establish clear goals and expectations during an initial trial period. That way both parties have a clear understanding of deliverables. Maintain zero tolerance for drugs in the workplace --Mining companies need to use random drug testing and enforce it consistently as a matter of safety and best practice. Similar to most companies, Peabody offers an Employee Assistance program that provides counseling to help with issues such as substance abuse. We test an entire shift at a time at my locations in addition to contractors. Aggressively use technology to continuously improve the safety and health of the work environment --Often the terms health and safety are used interchangeably, but they are different. The health issues such as noise, dust, ergonomics, etc. are going to be huge going forward. This is obviously an area where SME and NIOSH can help. Young people today will have to work 40 years if not longer. What do you think the life expectancy will be 40 years from now? How much has the world changed in the last 30 or 40 years? It will change exponentially and retiring at 65 or 70 might not be reality for some of these young workers. Treat people with the dignity and respect that they deserve --Managers should set high goals and expect employees to meet them. Employers should care and demonstrate that they care. Mine managers need to recognize the culture of employees wanting to spend more time with their families. Companies should encourage participation in outside activities that lead to a well-rounded life and a happier employee. Companies need to recognize the impact of excessive overtime and nonsensical shift rotation policies on personal health and family issues. Managers should keep people thoroughly informed and very well-trained. Above all else, management needs to insist that everyone works safely. There is no better way to show respect for an individual than to demand that they work safe. In summary, companies should hire selectively, train thoroughly, implement an orientation period, get drugs out of the workplace, use technology aggressively, and treat people with dignity and respect. That formula will lead to success for the mining workforce of the future. ~~~~~~~~ By Larry Hull Hull is a newly named group executive for Peabody's Colorado operations (E-mail LHull@PeabodyEnergy.com). He is a mining engineering graduate of Virginia Tech where he has been recognized as a Distinguished Alumnus and he has a master's degree in management from the Massachusetts Institute of Technology where he is honored to be a Sloan Fellow. This article was adapted from a speech he delivered at a luncheon sponsored by the Pittsburgh section of SME at the National Coal Show in Pittsburgh, Pa., during June.