The Canadian operation of Rio Tinto, a global exploration and mining company, has a presence in the Northwest Territories, British Columbia, Newfoundland and Ontario, but most of the employees (9,600) are located in Quebec. The majority of the workforce is unionized through several unions, all of which have different benefits plans. To complicate matters even more, each business unit used to have a different benefits plan for its non-unionized employees (4,800 in total) as well.
When it came time to redesign the benefits program for the non-unionized employees, a single plan that could encompass the needs of the company’s eclectic workforce was a must. “We wanted to harmonize those benefits programs and eliminate the multiple administration models and the different employee experiences,” says Martine Caplette, principal advisor, benefits, Canada. “There was some duplication, and we were looking for optimal efficiency, service and leverage.”
Drilling down the options
For Rio Tinto, converting to a flexible benefits plan was the best option. “We implemented flex because we wanted to address the needs of our diverse population and be ahead of market practice to ensure competitiveness,” Caplette says. “We made sure to preserve the value of the plans and introduced new coverage.”
In addition to the medical, dental and prescription drug coverage that forms the core of most benefits plans, all Rio Tinto non-unionized employees now have a healthcare spending account, access to critical illness insurance and a direct- payment drug card, whereas only some of the previous plans offered these features. “We also introduced different family statuses. Now we have single, couple, single parent or family coverage, which better reflects the needs of a diverse population,” explains Caplette.
The company prides itself on being a leader in the market and went a step further in the design to offer a fully flexible plan rather than the modular type, which may be more of the norm for those with flexible benefits in Quebec (see Vive la Différence ).
“It’s a very advanced and modern plan. Rio Tinto is a well-known company with a good reputation, and it’s important for us to maintain that reputation and to demonstrate that Rio Tinto can be competitive in terms of benefits,” Caplette adds.
The company also moved from in-house administration to a third-party administrator (TPA). In doing so, Rio Tinto is now able to provide employees with online enrollment, in addition to the ability to submit claims online. Employees also have access to a call centre and a Web portal dedicated to the ins and outs of their plan.
Caplette says using a TPA ensures that employees are getting a single experience in terms of administration, which was one of the main objectives of the redesign.
Processing change
Although this was a positive change for employees overall, Caplette says when they first started to announce that a change was on the way, it sparked some concerns from employees. However, she adds, “When they saw what we were introducing, most of them were pleased.”
Caplette says employees have adapted well to their new plan, which the company has dubbed “Reflexion,” and that she has received a lot of positive feedback on it. “As with any transition, there are always some minor problems, but the program itself was received positively and recognized as a pretty avant-garde plan.”
Change is never easy to implement in a large, diverse organization—especially when it directly affects employee programs—but it seems that Rio Tinto has the right elements in place to make it work. BC
April Scott-Clarke is assistant editor of Benefits Canada.
april.scottclarke@rci.rogers.com
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© Copyright 2010 Rogers Publishing Ltd. This article first appeared in the May 2010 edition of BENEFITS CANADA magazine.