SUMMARY
The main objective of this paper is to provide significant new knowledge and experience on conducting Labour Risk Audits and the implementation of Labour Risk Management Programmes in order to create and maintain labour stability and strengthen the operation's social license to operate. Unsatisfactory labour practices and welfare conditions pose an operational and reputational risk to all projects, in addition to potential labour instability and the resultant negative effects on project and operational efficiencies, the perceptions of local communities and their future support during the operations phase could be positively or negatively influenced by the experience of local workers on site, which, in turn, could affect the project's social license to operate. The Yemen Liquefied Natural Gas project (Yemen LNG) will be, at over $US4 billion, the largest project in the country's history and utilised Labour Risk Audits and Labour Risk Management in order to create workforce stability and to retain and strengthen their social license to operate. At the peak of construction up to 12,000 workers of at least 60 nationalities were present on site, which in its itself posed unique challenges to the management of labour relations in a culturally diverse context. The Labour Risk Audits covered areas such as organisational design, human resources administration and the terms and conditions of employment, while Labour Risk Management focused on legal compliance in terms of Yemeni Labour Law and related legislation, welfare (i.e. camp standards, living conditions and catering), demobilisation of workers, and the monitoring of labour risk indicators (e.g. grievances). The paper describes the results and ratifies the need for Labour Risk Audits and Labour Risk Management on similar projects, as all could benefit from a stable and productive workforce, which in turn will also enhance the company's reputation and ensure a continued social license to operate.
