Human resources review

HUMAN RESOURCES

Anglo American Platinum Limited (Amplats) currently employs 51,945 full-time employees and 4,434 contract workers. Productivity decreased in 2012, from 6.32 m2 to 6.05 m2 per total operating employee per month, primarily as the result of safety-related work stoppages and the two illegal strikes in the second half of the year.

The Company’s code of ethics and business principles declares that “we promote workplace equality and seek to eliminate all forms of unfair discrimination”.

The average attrition rate for critical and scarce roles in the Company in 2012 was 12.09%, excluding voluntary separation (VS). The turnover rate for the year in all other roles was 5.16% (5.58% including people taking voluntary severance packages), compared with 5.73% in 2011 (7.03% including voluntary severance).

Given current market conditions and the likely impacts of Amplats’ recently announced portfolio review, there will be a reorganisation of human resources in the Company in 2013.

EMPLOYEE RIGHTS

South Africa is a signatory to the Universal Declaration of Human Rights, which is in turn reflected in South Africa’s Constitution. The Company has incorporated human rights principles into its code of ethics and business principles. These apply to all our operations, including our operations in Zimbabwe. We recognise the right of our employees to freedom of association and to collective bargaining. All Company employees have the right to freedom of association under the South African Constitution and the Labour Relations Act, 1995. This right is also entrenched in the Company’s code of ethics, business principles and employee-relations policy. The Company recognises trade unions with significant representation among its employees, and these in turn participate in collective bargaining forums with management. Some 80% of the Group’s employees are represented by trade unions and associations.

Our remuneration practices are determined according to local market conditions and we strive to ensure that we pay wages that are, as a minimum, adequate to satisfy the basic needs of our employees and their families. We promote diversity and do not tolerate unfair discrimination or the inhumane treatment of employees including through any form of forced labour, physical punishment or other abuse. Our workforce has the right to work in an environment free from harassment or intimidation. Our extensive training initiatives support the entrenchment of these employee rights.

Non-discrimination

The Company’s code of ethics and business principles declares that “we promote workplace equality and seek to eliminate all forms of unfair discrimination”. This principle is consistent with the Employment Equity Act, No 55 of 1998. All forms of unfair discrimination and harassment are dealt with in terms of the Company’s behavioural and/or grievance procedures. Furthermore, the Company has subscribed to all Government and industry agreements and also subscribes to Government agreements to ensure non-discrimination against foreign labour. The Company has amended its policies and procedures to ensure non-discrimination against foreign migrant labour.

EMPLOYEE RELATIONS

The relationship between the recognised unions and Amplats has been regulated by a collective agreement, the Employee Relations Recognition Agreement (ERRA). In 2011, Amplats concluded its employee relations values charter with the recognised unions. The charter embraces the current Company values and is used as a guide when the Company and the unions engage each other on any employee-related issue. The application of the charter’s behavioural and grievance procedures in relation to affected employees has a fundamental influence on the determination of case outcomes.

The four trade unions currently recognised through the ERRA have been the National Union of Metalworkers of South Africa (NUMSA), the National Union of Mineworkers (NUM), the United Association of South Africa (UASA) and the Togetherness Amalgamated Workers’ Union of South Africa (TAWUSA). Together, these unions have represented some 80% of Amplats’ workforce.

The parties to the ERRA committed themselves to working together to gain employees’ understanding of and support for the Company’s vision, values and strategies. The ERRA offers five partnership structures for dialogue and consultation, to ensure that issues or disputes are dealt with speedily and sound relations maintained between Amplats and the recognised unions’ representatives. There is also a current wage agreement in place between the recognised unions and the Company, which regulates the wages of employees and other terms and conditions of employment until 30 June 2013.

Amplats renegotiated a two-year wage agreement with the unions in 2011. In terms of this agreement, employees in the A and B bands of employment received a 10% increase in 2011 and qualified for a 9% increase in 2012. Employees in the C to D1 bands received an 8.5% increase in 2011 and qualified for an 8% increase in 2012. (If the 12-month average year-on-year consumer price index reached 8% in 2012, then the wage increase would be 8% plus 2% for the C and D1 bands, and 9% plus 2% for the A and B bands.)

The minimum wage increased to R4,500 and R5,000 for surface and underground employees respectively. The living-out allowance and the minimum homeowner’s allowance for permanent enrolled employees increased by 5% to R1,654 per month and R2,500 per month respectively.

Despite the existence of the ERRA and the currency of the wage agreement, in 2012 Amplats faced unprecedented demands for wage increases and changes to other terms and conditions of employment outside the recognised structures. These demands were formulated by “strike” or “workers” committees that operated outside the recognised union structures. They were accompanied by an unprotected strike action lasting eight weeks between September and November 2012, and also by sporadic work stoppages at different operations. The committees demanded that salaries be increased to between R12,500 and R16,000.

The unprotected strike affected the mining and processing operations in the areas around Rustenburg and north of Pilanesberg. It was resolved only approximately nine weeks after the start of the unrest. Altogether 12,000 employees were dismissed as a result of the unprotected strike. They were later reinstated.

The total number of employees directly involved in the unprotected strike was 30,568. The strike lasted 66 days, which amounted to a total of 4.6 million man-hours lost in production, and a loss of R185 million in wages.

Characterised by violence and intimidation, the strike had a huge impact on the business. Operations reopened on 16 November 2012, following the signing of a return-to-work agreement between the parties on 15 November.

The strike or workers’ committees disclosed their allegiance to the new Association of Mineworkers and Construction Union (AMCU).

  After the signing of the return- to-work agreement, a number of operations continued to experience disruptions in the form of work stoppages and other demands.

Following an in-depth review of the global financial market and various aspects of its business in 2012, Amplats has decided to propose a restructuring of its operations. This restructuring exercise may result in the retrenchment of approximately 14,000 employees. Details are included on page 12 of this report.

Amplats will commence with the normal cycle of wage negotiations in 2013.

PEOPLE DEVELOPMENT

Amplats uses an integrated and holistic human resources development strategy that enables it to identify individual potential and to develop each employee. All employees are provided with the opportunity to obtain skills and competencies in order to advance along a predetermined career path, based on opportunity and suitability. The following enabling measures are in place to ensure sustainability:

  • Unambiguous, up-to-date career paths for all disciplines and job categories.
  • Current learning continuums linked to the career path for each discipline and job family.
  • Assessment methodologies appropriate for developmental purposes.
  • Suitable associated documents and templates used to record information regarding assessment, performance and development.

Progress has been achieved by implementing systems and processes that:

  • apply the appropriate assessment methodology to determine employee potential
  • translate assessment results into an Individual Development Charter (IDC) for each employee
  • prioritise the developmental and training needs of employees according to career-path requirements
  • ensure that there is a training plan for employees in line with their respective development needs
  • action the training plan for employees in the lower-level categories

During 2012, a total of 3,856 employees were assessed for potential and 2,326 new IDCs were developed. To date, 13,010 A to D1 employees have an IDC in place based on identified developmental needs. A further 1,976 employees were promoted as part of our skills development plan in 2012. Amplats runs several ongoing training initiatives for employees. The two main aims of the training are, firstly, to support and build employees’ competence in their current roles at Amplats; and, secondly, to prepare them for potential future roles within the Company. Included among the training on offer are the following:

  • Leadership and management development programmes
  • Fast-tracking programmes in engineering and mining
  • Operational skills development
  • Conventional training in mining
  • Conventional training in engineering
  • Training in mechanised mining
  • Adult basic education and training programmes
  • Training in dealing with corruption

The Company’s Human Resources People Development Way was launched during June 2012. The team designed supporting documentation to explain the 70:20:10 elements of the Anglo American learning delivery system. (70% of learning should take place on the job, 20% should be derived from peers and 10% should result from formal learning such as a course.) Further details on human resource development are included in the Company’s annual Sustainable Development Report.

TRANSFORMATION

On its journey of transformation the Company is required to consider the legislative requirements set out in the revised (2010) Mining Charter and the Employment Equity Act (No 55 of 1998), both of which ask that employers show progress in ensuring that their workforce profiles become mirrors of the economically active population (EAP) of the country. The Mining Charter specifies that the representation of historically disadvantaged South Africans (HDSAs) in large companies ought to have reached a minimum of 40% by 2014.

Amplats continues successfully to implement the transformation aspects of employment equity. At the end of 2012, its proportion of HDSAs in management positions reached 58.3%, while its proportion of women in mining stood at 12.7%. As required by the Employment Equity Act and its amendment regulations, Amplats submitted a consolidated employment equity report to the Department of Labour for the 2012 reporting period ending 31 May. A summary of this information is shown in the employment equity table provided on page 154.

Overall, the Company’s employment equity status shows satisfactory progress towards achieving equitable representation of designated groups across all occupational levels and categories of the workforce. When compared with the previous report (31 May 2011), the 2012 report showed improvements in designated employee categories as follows: from 37% to 39% in the senior management category; 53% to 56% in the professionally qualified, experienced specialist and mid-management categories; and 69% to 70% in the skilled technical and academically qualified worker, junior management, supervisor, foreman and superintendent categories.

Women in mining

In the Mining Charter, the representation of women in the country’s mining companies by 2014 is stipulated based on a minimum demographic representation of 40% of HDSAs at the top, senior, middle and junior management levels; and on figures for economically active women in the country.

In the third quarter of 2012 the economically active population (EAP) profile for women was as follows: African women: 33.9%; coloured women: 5.0%; Indian women: 1.1%; and white women: 5.3%. When based on the 40% for HDSAs, the targets for women in all four levels of management become 14.2% for African women, 2.2% for coloured women, 0.6% for Indian women and 2.3% for white women.

The percentage of women in management positions within the Company at the end of 2012 was as follows: 13% in top management; 11% in senior management; 22% in middle management; and 20% in junior management.

The number of women employed by the Company increased from 5.1% to 12.7% of all employees between 2005 and 2012; while the number of those in core skills grew from a very small 405 to 4,674 (10% of the total number of employees in those skills).

Progress has been made possible by the introduction of fast-tracking programmes, targeted recruitment and improvements in the working environment. Changes to the working environment include the supply of sufficient and suitable change houses, the provision of appropriate personal protective equipment, and the formation of women’s forums at all operations. A women-in-mining portfolio was created in 2006, and charged with attracting, developing and retaining female employees.

These interventions have contributed to our winning the award for the top gender-empowered company in the resources category for the past three years (2010, 2011 and 2012).

The employment of African women remains a key challenge and efforts have been in place to increase their participation. Between 2011 and 2012 there were no changes in the number of women in senior management or junior management, but the numbers employed in middle management increased from 9.5% to 10.5% when assessed against the Mining Charter’s 2014 minimum target of 14.2% cited above.

 

The total number of employees directly involved in the unprotected strike was 30,568.

COMMUNICATION POLICY AND STRUCTURES

In 2012, the Company implemented an employee communication policy, with the following objectives:

  • To promote the empowerment of line management, the emphasis being on line managers’ responsibility as the Company’s primary communicators with employees.
  • To provide a common approach to communication within the Company.
  • To ensure an understanding of the communication roles and responsibilities of all parties in the Company.
  • To provide a framework of support resources for line managers, making it easier for them to achieve sustainable success in their communication with employees.
  • To monitor and audit the effectiveness of employee communication, thereby ensuring an understanding of how to improve on its weaknesses.

The policy also details the structures of communication at various levels of the organisation (one example is supervisors having face-to-face meetings with their teams to discuss production and safety issues).

SUSTAINABILITY AND GOVERNANCE HUMAN RESOURCES REVIEW

21361

Mogalakwena Mine’s Groenfontein community farming project

 

 

20915

Community glass beading project, Rustenburg

 

20933

Leke Seloana, Nhkanhla Mboweni and Virginia Legong, instrument technicians

 

SUSTAINABILITY AND GOVERNANCE HUMAN RESOURCES REVIEW

SOCIAL AND HUMAN CAPITAL INDICATORS

for the year ended 31 December 2012

SOCIAL INDICATORS

table2
 

HUMAN CAPITAL INDICATOR

table3