Implats, a significant employer in the PGM sector in both South Africa and Zimbabwe, employed 54 991 people as at 30 June 2008, of whom 63% were permanent employees and 37% contractors. The increase in people employed in FY2008 was mainly attributable to the new capital projects started in the year. The significant number of contractors employed on major capital projects and recruitment for the Marula ramp-up and Zimplats expansion, created additional job opportunities at Implats.
Southern Africa is currently experiencing a serious shortage of skilled personnel, particularly in the mining industry. This is an underlying reason for the continued high turnover of staff recorded by the group in the past. Turnover levels at Marula (13%) and Mimosa (12%) were the highest, with overall group turnover at 9%. This compares with an estimated average for the industry of around 18%. Although employee retention initiatives implemented during the year (discussed below) were successful, the retaining of skilled employees is extremely challenging.
Attracting and retaining talented individuals who subscribe to Implats' vision, continue to be important drivers of our group's human resource management strategy. Particular cognisance is taken of the need to attract and retain women and historically disadvantaged employees.
Efforts to attract talent include:
Housing: Implats is increasingly involved in the provision of housing in the areas where we operate. Housing is an attractive recruitment and retention strategy, and has many positive social benefits as it improves the quality of life of employees, their health and wellbeing and that of their families. The group spent R307 million on housing for employees, in both South Africa and Zimbabwe in FY2008 with R350 million allocated to this in FY2009.
ESOP: The ESOP implemented in 2006 has provided some 28 000 employees with a material stake in the growth of the company. The concept of the ESOP and the time to maturity of the investment are still not well understood by those it is meant to benefit. This problem is exacerbated by the lack of saving and the inflationary environment in South Africa. An extensive ongoing education programme has been necessary to explain the value of remaining with the scheme.
Reward schemes: The Ama-Ching-Ching Bonus Scheme, implemented towards the end of the 2007 financial year to improve productivity, had a positive and visible initial impact. However, the benefits, in terms of improved production and productivity, were not as long lasting as had been hoped, largely as a result of the industry skills shortage where numerous jobs (for which rewards are unrelated to performance) are available.
The short-and long-term employee incentive schemes were reviewed and monitored to ensure that their fixed costs to the organisation were controlled. However, the effectiveness of the group's retention schemes and fixed remuneration principles, as related to middle and senior management, was reviewed. Several retention mechanisms were implemented to retain specific critical and scarce supervisory and technically skilled employees. Quarterly benchmark audits ensure market competitiveness and internal equity regarding both fixed and variable rewards.
Other initiatives: Talent management and graduate recruitment programmes were implemented throughout the group. Implats bursary holders are studying in key disciplines at tertiary education institutions in South Africa. Interventions such as the increase of learnerships, the upgrade of facilities available for learning and the implementation of skills development programmes to address critical vacancies, portable skills and accelerated development of high-potential employees focus on attraction and retention. Talent management focuses on career progression, individual development, mentoring and succession planning.
In South Africa, Implats made good progress towards achieving targets for employment equity and women in mining. At the end of FY2008, 33% of senior and middle management in South Africa were HDSAs (FY2007: 29%). When white women are included, this increases to 45% (FY2007: 40%). The Mining Charter requires that 40% of managers be HDSAs (including white women) by 2009.
At end FY2008, 7.8% and 18.3% of employees at senior and middle management level respectively were women (FY2007: 5.8% and 16.5% respectively). The Mining Charter requires that 10% of all employees be women by 2009.
Formal employee relations are governed by collective bargaining and recognition agreements, underpinned by the applicable labour legislation of the country of operation. Around 96% of the total workforce is unionised or subject to a collective bargaining agreement. A two-year wage agreement entered into in July 2007 with South African unions provided for a CPIX-based increase from 1 July 2008. The agreement was subject to the prevailing level of CPIX, which was 11.6% for June 2008.
Implats - Annual Report 2008
| Forward-looking statements