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Composition | Outsourcing | Employee Turnover | Benefits

Goldcorp’s entrepreneurial and innovative spirit plays a major role in our success, and attracts and retains an exceptional pool of talented and skilled people. Our people drive our business and set us apart from our competition, which is why we consistently recruit, cultivate and retain the industry’s top talent.

Over the past several years, the worldwide mining boom has significantly increased the demand for executives with mining-related skills and experience. The talent supply in the mining business is very tight globally as fewer people have entered the mining industry over the past few decades. As a result, the Company operates in a highly competitive market for executives and the attraction and retention of talented and experienced executives is one of the key objectives of Goldcorp’s executive compensation program.

Goldcorp supports the principle that individuals have the right to participate equally in the free enterprise system, and to develop their ability to achieve their full potential within that system.

Composition

In this report we use the term “employees” to refer to full-time employees of Goldcorp. The term “contractor” refers to outside labour which is hired-in to do a specific task. (In some jurisdictions a contractor is defined as a “supervised worker” - an individual who performs regular work on-site for, or on behalf of, the reporting organization but is not recognized as an employee under national law or practice.) The term “workforce” is used to cover both employees and contractors.

As at December 31, 2010, Goldcorp’s workforce was just over 14,500. This is a 29% increase from our workforce numbers in 2010.

Goldcorp’s workforce numbers have fluctuated year-on-year depending on the status of key projects (particularly Los Filos and Peñasquito). Total workforce numbers increased in 2011 as work at a number of projects (particularly Éléonore and Cerro Negro) increased.

With the increase in construction activity at Éléonore and Cerro Negro, the percentage of contractors in our total workforce rose from 40% in 2010 to 48% in 2011. The Projects Group had the highest percentage of contractors at 76%, followed by the Mexican Region at 55%.

Outsourcing

We make extensive use of contractors during the construction of new projects and when significant upgrades are made to our existing operations. Contractors provide a source of short-term labour, as well as specific construction expertise, which is not readily available within our own workforce.

We also make use of contractors to supplement our own expertise in key areas of our operations. We have a number of long-term (or partnership) contractors who undertake critical components of our operation.

Our use of long-term contractors falls into three broad areas:

• Mining and processing: these are our core functions, and we tend to use contractors only as a supplement to our own workforce.
• Maintenance: contractors are used at most of our sites, due, at least in part, to the specialized nature of some maintenance functions.
• Drilling, explosives, security, employee transport and catering: while these functions are important to the operation of our sites, they are frequently contracted out to firms who specialize in these activities.

The total cost of contractors in 2011 was $369.3 million, compared with $204.9 million in 2010, an increase of 80%, reflecting the increase in activity at our projects in 2011.

Employee Turnover

Throughout 2011, the increase in activity in the resource sector had an impact on the employment market, with Goldcorp’s employee turnover rate increasing.

Certain skill sets, particularly in the engineering and geology fields, stayed in demand throughout 2011. As the markets continue their recovery, we expect industry employee turnover rates to continue to rise. In anticipation of this, Goldcorp has worked particularly hard at ensuring highly competitive compensation packages and maintaining a highly engaged workforce.

Employee turnover across the Company for our site-based employees was 9.9% in 2011 compared with 8.8% in 2010. This represents approximately 650 employees leaving the Company through 2011.

Employee Turnover by Gender

Turnover rates for both males and females were up from 2010. The turnover rate for females was higher than for males in 2011, but this is influenced by the smaller number of females in the total employee workforce (11%).

Benefits

We conduct market checks on a regular basis to ensure that our benefits are competitive with those of our peers in the mining industry, and also with those of potential competitors in other industries.

Canada and the US

In Canada and the US, we provide benefits, including life insurance, accidental death and dismemberment insurance, long- and short-term disability coverage, and extended health, dental and employee assistance programs, to our full-time and part-time employees at North American operations. We have both defined contribution and defined benefit pension plans for our employees in Canada, and 401k tax-deferred retirement investment plans for employees in the US. Our temporary employees are not covered.

Mexico and Central and South America

In Mexico and Central and South America, in addition to mandated minimum benefits, we provide medical coverage and life insurance. While this is the market standard in Mexico, in Central America, this is a superior benefit usually not offered by local employers. In Mexico, we also have a pension plan (defined benefit), which is not a typical employment benefit for that country.

Additional details on benefits can be found in Goldcorp’s Management Information Circular.