The company recognizes that offering fair and competitive wages is an important factor in attracting and retaining the best employees, and in building strong community support.
In all jurisdictions where it operates, PotashCorp's entry level wages are significantly higher than the local minimum wage.
Comparison of Entry Wage Levels to Local Minimum Wage 2007 |
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| ($/hr) | US | Canada | Trinidad | Brazil |
| PotashCorp's Entry Level Wage | 13.29-18.97 | 18.80-24.14 | 5.45 | 2.16 |
| Local Minimum Wage | 5.85-7.50 | 7.16-7.86 | 1.50 | 0.74 |
| % Entry/Local | 227-253 | 263-307 | 363 | 292 |
| Source: PotashCorp | ||||
PotashCorp's Pension Plans
The company sponsors plans that provide pension and other post-retirement benefits for most of its employees. A properly funded pension plan helps attract and retain a dedicated workforce and supports long-term financial planning and stability for the organization.
Pension Plan Coverage for PotashCorp Employees |
|
| Jurisdiction | Plan Coverage |
| Canada | Substantially all Canadian employees are participants in either a defined contribution or a defined benefit pension plan. |
| United States | Defined benefit pension plans cover a substantial majority of US employees. Contributions meet or exceed minimum funding requirements of the Employee Retirement Income Security Act of 1974 ("ERISA") and associated Internal Revenue Service regulations and procedures. |
| Trinidad | The company has contributory defined benefit pension plans that cover a substantial majority of its employees. |
| Brazil | The company and employees participate in a government-sponsored plan. |
| Source: PotashCorp | |
Due to the long-term nature of these plans, the calculation of expenses and obligations depends on various assumptions such as discount rates, expected rates of return on assets, projected salary increases, retirement age, mortality and termination rates. These assumptions are determined by management and reviewed annually with the company's actuaries. Committees of management and employee representatives manage the benefits program and the board has oversight responsibility.
POTASHCORP's PENSION PLAN ASSETS AND OBLIGATIONS |
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| ($ million) | Dec 31, 2005 | Dec 31, 2006 | Dec 31, 2007 |
| Benefit Obligations | 595.3 | 626.4 | 623.4 |
| Fair Value of Plan Assets | 480.8 | 519.9 | 638.2 |
| Source: PotashCorp | |||
A diversified blend of equity and fixed income investments makes up the investment portfolio. Assets such as private equity, real estate and hedge funds are not used substantially at this time.
ASSET ALLOCATIONS OF POTASHCORP'S SIGNIFICANT PENSION PLANS |
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| Asset Category | Dec 31, 2005 | Dec 31, 2006 | Dec 31, 2007 |
| Equity Securities | 67% | 66% | 64% |
| Debt Securities | 33% | 34% | 36% |
| Total | 100% | 100% | 100% |
| Source: PotashCorp | |||