Staying focused on safety, health and innovation will drive company success despite the uncertainties of a resurgent COVID-19 pandemic and volatile fluctuations in the price of copper, said Josh Olmsted, President and Chief Operating Officer-Americas, during a recent virtual town hall with nearly 2,300 employees.
It’s easy to get distracted because of concerns about the pandemic, commodity prices and any number of other national and global issues, Olmsted said. It is important during uncertain times to focus on things we can control such as staying safe on the job and executing plans that will make the company stronger and more productive.
“Let’s not let the distractions take us away from focusing on executing our plans, keeping all of us safe, keeping our communities safe and keeping the business safe,” Olmsted said during the hour-long online town hall on August 24.
He was joined by Steve Higgins, Senior Vice President and Chief Administrative Officer, and Dr. Richard Vinroot, Vice President and Medical Director, in a wide-ranging presentation followed by a question-and-answer session with employees.
“The market’s going to be what the market is,” Olmsted said about the erratic fluctuations in the price of copper over the past few weeks. “We can’t control that. We can control how we work and what we work on. Look for opportunities to drive value. Look for opportunities to work together. Look for opportunities to help just make things better in general whether that’s operationally, efficiency, productivity or working together with respect to people. That in and of itself will set us up to be successful longer term.”
Of particular concern is a slight uptick in the number of safety-related incidents, Olmsted said. Most were of low severity, but the increase could indicate that people are distracted, highlighting the need to stay focused on the job at hand.
Businesswise, following Freeport Edge behaviors will keep the company in a strong position to weather the challenges created by the pandemic and its effects on the global economy. Freeport Edge encourages employees to Aim High, Pursue Value, Collaborate as One Freeport, be Empowered to Act, and Develop and Coach Our People.
Embedding those values in the company culture leads to greater efficiency, productivity, innovation and a great place to work, all key elements in helping Freeport stay strong through the highs and lows of market swings, Olmsted said.
While there has been some sharp fluctuation in the day-to-day commodities market, copper prices remain near historic highs and above $4 per pound, which is “a very, very nice place to be,” Higgins said.
Focus on fighting COVID-19
The town hall also addressed the company’s efforts to navigate the coronavirus pandemic.
While the company does not require employees to get a COVID-19 vaccination, employees are strongly encouraged to learn the facts and get vaccinated if appropriate. Higgins said he does not know what the next steps will be but what is known is that our existing health and safety protocols are working.
Those requirements include maintaining social distancing of at least 6 feet and wearing a face covering when that distance cannot be ensured.
Vinroot added that while vaccinations are not required by the company, they have proven to be safe and effective and are a good idea. Vinroot participated in clinical studies of the Pfizer vaccine last year and currently is participating in trials of a third booster shot to enhance its long-term effectiveness. He has not gotten the virus or had any adverse effects from the vaccinations, he said.
The decision as to whether to get a vaccine is a personal one that needs to be respected by the company and co-workers, Olmsted said.
“We all have our own beliefs,” he said. “We all bring those things to the table. But we all stay focused on how we are going to continue to support, drive, execute and manage the business as a whole working together. So, I just encourage everybody to think similarly with respect to vaccines and just respect folks and the decisions that they make.”
Global optimism and uncertainty
On other topics, Higgins said the volatile fluctuations in the price of copper over the past several weeks were driven in part by uncertainty over rising COVID-19 cases and the impact that might have on the global economy. There also were signals that demand for copper might be waning in China. Those factors, coupled with a strong dollar, drove jittery speculative investors out of the market, at least temporarily, triggering the rapid price drops.
Regardless of those short-term market fluctuations, the outlook for copper remains strong, Higgins said. Demand in China appears to be picking up, and it remains healthy in Europe. In the United States, a booming construction industry that accounts for about 40 percent of domestic consumption is fueling high demand.
In the long term, the technologies needed to reduce carbon emissions rely heavily on copper, which should continue to fuel demand, Higgins said.
Olmsted added he remains optimistic, despite the short-term challenges.
“We are set up really well to finish the year strong,” he said. “But the only way we are going to be able to do that is if we continue to do what we’ve been able to do at this point and that is work together, collaborate and look for opportunities to identify additional value and stay focused on the things we do control.”