Labour relations in South Africa is governed by, among others, the Labour Relations Act , the Employment Equity Act, aspects of the Mine Health and Safety Act, and the Mineral and Petroleum Resources Development Act (MPRDA) and the accompanying Mining Charter. The employer/employee relationship is also influenced by the Constitution of the country and by the countrys subscription to certain international regulations and conventions, including various International Labour Organization (ILO) declarations (See box below).
While the management of employees falls under the jurisdiction of operational management, specialist human resources, training and industrial relations personnel support line management in this endeavour. Mine-based human resources and training personnel report to a group-level human resources executive. Other group functions that support the operations include a transformation department and a talent management discipline.
Relationships with the bulk of employees are governed through collective bargaining processes. There are two major unions that are recognised at the South African operations: the National Union of Mineworkers (NUM) (representing 59% of employees) and the United Association of South Africa (UASA) (9% of employees).
Recognition and other agreements enacted at an operational level regulate workplace relationships, including salaries and salary reviews, conditions of service, notice periods for operational changes, participation by employees or unions in various decision-making forums. Labour relations in Zimbabwe is governed by the National Labour Act and by the collective bargaining agreement negotiated at an industry level by the National Employment Council for the Mining Industry. About 90% of our employees and about 92% of Mimosas employees are covered by collective bargaining agreements. Workers committees are involved in operation-based interaction with management.
The International Labour Organization (ILO) was founded in 1919, in the wake of the First World War, to pursue a vision based on the premise that universal, lasting peace can be established only if it is based upon decent treatment of working people. The ILO became the first specialised agency of the United Nations (UN) in 1946. It brings together governments, employers and workers of its member states in common action to promote decent work throughout the world.
The ILO is devoted to advancing opportunities for men and women to obtain decent and productive work in conditions of freedom, equity, security and human dignity. Its main aims are to promote rights at work, encourage decent employment opportunities, enhance social protection and strengthen dialogue in handling work-related issues.
It is the global body responsible for drawing up and overseeing international labour standards. Working with its member states, the ILO seeks to ensure that labour standards are respected in practice as well as principle.
Implats is proud to be a significant source of direct and indirect employment in South Africa and Zimbabwe. As at the end of FY2007, the group employed 30,774 people in South Africa (92%) and 2,631 people in Zimbabwe (8%), giving a total employment figure of 33,405 which is 5% higher than the figure for FY2006. In addition to this, the group employed 13,783 contractors. The year-on-year increase is related to the groups expansion programmes at Marula, Zimplats and Mimosa.
In total, 3,054 employees left the group during FY2007 (resignation, retirement, dismissal, death), with the annual group turnover rising to 10%. Turnover is higher than is desired owing to competition for employment opportunities in the mining and construction industries in southern Africa. Scarce resources and accommodation shortages in the major regions in which the company operates have exacerbated the situation, as have the increasingly difficult socio-economic conditions in Zimbabwe.
During FY2007, we reviewed both our remuneration and accommodation strategy and put in place a significantly improved overall benefits package to align individual employees performance with that of the group and to enable the group to attract and retain qualified and competent personnel. In addition to wages, employees enjoy a wide range of benefits including health care; medical aid; maternity and paternity leave; pension and/or provident funds; share ownership or incentive schemes; and housing and schooling allowances.
Wage negotiations for the bulk of South African employees are undertaken through a single collective bargaining unit. The 2007 wage negotiations were successfully concluded with the signing of a two-year wage agreement with the NUM and UASA. In Zimbabwe, collective bargaining is undertaken at a national level through the Chamber of Mines, with the recognised trade union, the Associated Mineworkers Union of Zimbabwe.
*The 2006 employment figures have been amended
|Name of fund||Company contribution %||Employee contribution %||Type of fund|
|Impala – Rustenburg|
|Novel Platinum Fund||16.15% or 20.52%||7.5%||Defined contribution|
|Impala Supplementary Pension Fund||16.15% or 20.52%||7.5% by officials;|
|8.5% by union members||Defined contribution|
|Impala Workers Provident Fund||16.15%||7.5%||Defined contribution|
|Sentinel Retirement Fund||16.15% or 20.52%||7.5%||Defined contribution|
|Mine Employees Pension Fund||16.15%||8.5%||Defined contribution|
|Impala – Springs|
|Novel Platinum Fund||16.15%||7.5%||Defined contribution|
|Sentinel Retirement Fund||16.15%||7.5%||Defined contribution|
|Mine Employees Pension Fund||16.15%||7.5%||Defined contribution|
|Impala Provident Fund – Refineries||16..15%||7.5%||Defined contribution|
|Head Office Provident Fund||10.5%||7.0%||Defined contribution|
|Impala Provident Fund||16.15% or 20.52%||7%||Defined contribution|
|Novel Pension Fund||16.15% or 20.52%||7.5%||Defined contribution|
|Sentinel Pension Fund||16.15% or 20.52%||7.5%||Defined contribution|
|Mining Industry Pension Fund||5%||5%||Defined contribution|
|Zimasco Pension Fund||13.5%||7.5%||Defined contribution|
|National Social Security Authority Scheme||*||*||Government fund|
|* Amount contributed is pegged at a certain limit, currently this is Z$60,000 per employee per month. The company contributes the same amount as the employee to this fund.|
|Zimbabwe Platinum Mines|
|National Social Security Authority||3%*||3%*||Defined benefit|
|Mining Industry Pension Fund||5%||5%||Defined contribution|
|* Up to 3% of pensionable remuneration up to a maximum contribution of Z$3,900 per month per employee.|
Significant emphasis is placed on training and education at all levels within the company. A particular area of focus in South Africa is the provision of Adult Basic Education and Training (ABET) given the high levels of illiteracy. Literacy levels are currently estimated at around 35.3% at the South African operations. All employees at the Zimbabwean operations are deemed to be literate. In FY2007, 1,031 employees participated in ABET classes at a cost to the group of some R12.9 million. Since 2000, a total of 8,465 Implats employees have participated in ABET courses run by the group.
Total training expenditure in the group in FY2007 was R174 million, with employees receiving on average between 50 and 90 hours of training during the year. A wide variety of training is offered, from technical training, to safety training, to supervisor and management development. Generally, performance appraisals are conducted on an annual basis in accordance with pre-determined and known criteria.
A total of 50 bursaries were provided by the South African operations for tertiary education at a cost of R4.9 million. Of the bursaries provided, 82% were to HDSAs. In addition, 75 scholarships were provided at secondary school level, all to HDSAs.
Implats has had a talent management process (based on internal best practice) in place since 2005 which identifies internal and external individuals with promise and develops and advances those people. It includes succession planning. Various committees have been set up to assist with talent management: career management committees, shaft level committees, talent pool committees and unit level committees at the operational level.
These committees have different tasks. For example, the purpose of the unit level committee is to make sure that the best possible talent is selected in the most objective way possible at each operation while the career management committee takes the macro view, looking at talent in all disciplines across the group. The CEO forum, which is chaired by the CEO, is convened after meetings of the career management committee to conduct an overall assessment of the depth of talent available.
While we aim to provide satisfactory careers and career development plans to all employees, in South Africa, in particular, the attraction, training and development, promotion and retention of HDSAs is of particular importance. The group reports on its progress in this regard in terms of both the Employment Equity Act and the Mining Charter. (See the Corporate Governance report in the Annual Report for the most recent report on targets and progress.)
Specific mechanisms have been implemented to meet the HDSA in management target of 40% set by the Mining Charter including: skills transfer; preferential recruitment of HDSA candidates; accelerated training (an example of which is the Da Vinci Women in Mining project); and a bursary scheme. A talent management programme – undertaken at a cost of some R20 million in FY2007 – is being run across all South African operations. At the end of FY2007, 29.1% of senior and middle management were HDSAs. (HDSA excludes white women.)
The group is on track to achieve participation of 10% of women in mining (WIM) within five years and is implementing this process through specific career development plans, individual development programmes, accelerated training programmes, mentoring programmes and the creation of promotional opportunities. At the end of FY2007, 5.8% of all permanent employees and 16.5% of senior and middle management were women. Specific policies and programmes have been put in place to facilitate the entrance of women in mining, including a pregnancy policy and a sexual harassment policy. In addition, further surface change houses and underground ablution facilities have been provided.
Impala formed a partnership with the Department of Minerals and Energy (DME) and the Da Vinci Institute for Technology Management to accelerate the training of HDSA women in the mining industry. With input from Impala, the institute designed an 18-month programme which culminates in the awarding of a Master of Science degree in Technology and Innovation. The objective of the programme, which started in October 2004, is to develop HDSA women to take on technical and managerial leadership positions at Impala. Seven candidates (six from within the company and one from outside) completed the programme at cost of R1.8 million to the company. Of these, five are currently in managerial positions at Impala.
Provisions for human rights and the elimination of discrimination are entrenched in the Constitution of South Africa, by legislation and Implats own policies and recognition agreements. These include the right to freedom of association and collective bargaining, the elimination of child labour, forced or compulsory labour, and certain indigenous rights. In Zimbabwe, the right to strike is not allowed by law. A number of incidents of racial discrimination and sexual harassment were reported at the operations during the year. All incidents were investigated, the necessary hearings were held and outcomes dealt with appropriately.