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1.700.00The health and safety of Northam employees takes precedence over all production objectives. Health and safety is a key material issue and forms an important part of Northam’s strategy.
Northam’s approach to health and safety is guided by extensive legislation and regulations, notably the Mine Health and Safety Act No 29 of 1996. The health, safety and environment (HSE) board sub-committee is responsible for overseeing compliance with health and safety laws and regulations that may have an impact on the company. Operational health and safety ultimately remains the responsibility of the general manager at each operation, while day-to-day safety management is delegated to the operational managers, who are supported by the mine health and safety departments. All employees and contractors receive safety induction training on an annual basis, and intermittently during the year, for example, when they return from leave.
All employees who participated in the strike were required to undergo normal induction upon their return to work.
The operations maintain policies and procedures, detailed records and reports on safety matters, accidents and their severity, transgressions and remediation work. This information is analysed and used to improve safety performance. Reports on health and safety are submitted to the HSE board sub-committee, which is tasked with health and safety matters for further interrogation and oversight.
Northam encourages the participation of employees and management in all health and safety matters. Given fairly strong labour union affiliation at Zondereinde in particular, employees participate in the union’s health and safety committees through their elected officials. Some 84% of Zondereinde’s workforce is affiliated to a union while 22% of employees at Booysendal belong to a union.
Accordingly, these employees may participate in and contribute to the union’s elected health and safety committees.
At Zondereinde, the joint management and employee-represented health and safety committee meets on a monthly basis or more frequently if required. The committee is responsible for the identification of critical issues that may have an effect on the health and safety of employees and the environment as well as for inspections, audits and accident investigations, identifying areas for training and development, and providing personal protective equipment. The committee’s main focus is on empowering employees to take responsibility for their own health and safety, and the health and safety of others, by identifying and reporting potentially hazardous situations.
The operational HSE committees hold monthly meetings, which are chaired by each operation’s general manager and attended by two full-time health and safety representatives who have been elected by employees. Safety representatives receive training in safety and also attend mine production meetings where safety concerns are discussed.
Free issue personal protective equipment (PPE) is supplied to employees and a comprehensive code of practice was drafted in F2013 for the allocation of PPE for occupational-specific requirements.
Zondereinde’s HSE committee aligns its activities with the joint health and safety committee.
There are three health and safety committees in place at Booysendal, these include:
Incidents and accidents are discussed and reviewed at this level and common risks are identified and deliberated as a preventative measure. Other issues raised during the year include PPE for women, remuneration of safety representatives, additional safety training as well as approvals of codes of practices, procedures and standards.
In total 64 safety representatives were trained at the new on-mine training centre during the year.
In line with the material issue of operating safely and efficiently to protect the lives and livelihoods of all employees, all incidents are considered very seriously at Northam, and continuous efforts are made to ensure the reinforcement of operational standards and responsibility.
Analysis of safety incidents indicates that injuries are generally associated with the following:
Traditionally, handling of materials and falls of ground have been the main contributors to injuries at Zondereinde – with employees involved in construction, development and stoping activities most at risk.
A particular safety theme at Zondereinde during the year was highlighting the need to adhere to safety standards. Focused training and disciplinary measures were introduced to manage the prevalence of behaviour-based safety transgressions:
At Zondereinde, the Du Pont safety management programme was instituted in 2012. This system focuses on incident investigations to ensure that the correct hazards, risks and root causes are detected in incident investigations, and the requisite training is provided. This is supplemented by coaching in the completion of hazard identification and risk assessment documents. The system is further enhanced by coaching in visible felt leadership. All management levels are coached in the various aspects of visible felt leadership.
No fatalities were reported during the year under review (F2013: 1).
Northam defines a lost time injury (LTI) as an injury which results in one to 13 days of lost time while a reportable injury (RI) is an injury which results in lost time of 14 days or more. The LTI and RI incidence rates are based on 200 000 man-hours worked.
Efforts to reduce the number and severity of injuries at Zondereinde continued during the year. The total number of injuries recorded was lower year-on-year as a result of substantially fewer shifts worked owing to industrial action. Expressed in terms of rates, however, injury rates deteriorated marginally as fewer man hours were worked during the strike. Pleasingly, however, Zondereinde reported a fatality-free year.
After the conclusion of the strike, safety personnel, in consultation with other service departments, assisted mining crews to ensure that workplaces that had not been operational for the duration of the strike were subjected to thorough risk assessments. Risks were duly scrutinised and recorded, and remedial action plans were prioritised and executed.
The “making safe” of workplaces was the most urgent priority at the start-up of operations after 21 January 2014. Safety officers intensified on-the-job training activities and management exercised due diligence in declaring working areas safe. Abnormally high ambient temperatures in some workplaces and where ground conditions had deteriorated over time, were the main impediments noted. However, these challenges were resolved during the making safe process.
In F2014, 113 LTIs were reported at Zondereinde, of which 57 were reportable. The primary causes of LTIs in F2014 were related to materials handling and to falls of ground.
The DMR imposed three Section 54 safety-related work stoppages at Zondereinde during the year under review. Two followed routine visits and another after an in loco investigation into a reportable injury. The stoppages were all restricted to specific working places, which were stopped for a period of three days each.
To date, Zondereinde has adopted and implemented the following Mining Industry Occupational Safety and Health (MOSH) initiatives:
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| Fatalities – Zondereinde | 0 | 1 | 2 | 5 | 1 |
| Lost time injury incidence rate per 200 000 hours worked – Zondereinde | 1.70 |
1.50 | 1.91 | 1.34 | 0.83 |
| Reportable injury incidence rate per 200 000 hours worked – Zondereinde | 0.86 | 0.83 | 0.88 | 0.74 | 0.52 |
| Fatal injury incidence rate per 200 000 hours worked – zondereinde | 0.00 |
0.01 | 0.02 | 0.06 | 0.01 |
In F2014, Booysendal achieved one million fatalityfree
shifts. Booysendal’s total lost time injury incidence
rate (LTIIR) was 0.27 per 200 000 hours worked
(F2013: 0.53) and the reportable injury incidence rate
(RIIR) was 0.21 per 200 000 hours worked (F2013:
0.33). To date, no fatalities have been recorded
at Booysendal. There were no safety-related work
stoppages at the operation during the year.
Booysendal recorded five LTIs in F2014 of which four were reportable. The primary causes of LTIs for F2014 were falls of ground, trucks and tramming, and materials handling. The early examinations initiative known as THINK FALL OF GROUND was initiated in F2013. It provides for officials to go underground every Monday and Friday morning to ensure that employees are entering their worksites safely. Any deviations are rectified immediately. This drive continues and has resulted in significant improvements in examination techniques.
The mine’s trigger action response programme has been incorporated into the daily early morning examination process and continues to inform the mine’s safety initiatives.
| F2014 | F2013 | F2012 | F2011 | |
|---|---|---|---|---|
| Lost time injury incidence rate per 200 000 hours worked – Booysendal | 0.27 |
0.53 | 0.19 | 0.65 |
| Reportable injury incidence rate per 200 000 hours worked – booysendal | 0.21 | 0.33 | 0.05 | 0.22 |
As a mining company, Northam is subject to stringent health and safety laws and regulations that change from time to time. In the event of changes to health and safety legislation, the company may incur additional costs in order to comply with any new laws and regulation.
Northam seeks to comply fully with applicable health and safety legislation, and to ensure that all the employees adhere to group safety standards. The primary occupational health risks identified at Northam in F2014, which were the key health focus areas, included:
HIV/Aids and TB have been targeted aggressively with a strong focus on prevention, through education initiatives and community involvement, as well as a monitored employee wellness programme, which includes the provision of ART. There has also been focus on drugs and alcohol, and their effects on employee performance.
An integrated and holistic healthcare service, for primary health and occupational health, is provided to Zondereinde employees and contractors through Suremed® and Life®. This service is provided on site and at a network of medical facilities where employees reside and is available to all employees who contribute to the schemes. It provides on-site paramedics with emergency response vehicles, social workers and physiotherapists. A network of doctors, specialists and dentists is also contracted to the scheme. Five hospitals are available to employees in the area, as well as the Netcare® and Life® network countrywide. In addition, Suremed® administers a comprehensive TB and HIV/Aids management programme at Zondereinde.
Zondereinde’s occupational health programmes cover:
Booysendal’s medical facilities are located at the Mashishing medical station. The Suremed® scheme offers healthcare services to Booysendal employees, contractors and their families. The scheme’s healthcare services include:
Through the Suremed® scheme, families in Mashishing, Middelburg, Nelspruit, Burgersfort and Steelpoort areas have access to these facilities.
During the year, 10 397 medical surveillance examinations were undertaken at Zondereinde (F2013: 12 500), 650 of which were entry, 796 exits and 8 951 annual examinations.
The results of surveillance examinations undertaken during the year were satisfactory and no concerns were raised.
| F2014 | F2013 | F2012 | F2011 | |
|---|---|---|---|---|
| Entry examinations | 650 | 1 231 | 1 407 | 1 484 |
| Exit examinations | 796 | 2 263 | 1 073 | 926 |
| Annual examinations | 8 951 | 9 006 | 8 260 | 8 118 |
| Total examinations | 10 397 | 12 500 | 10 740 | 10 528 |
| Total number of employees (including contractors) | 8 788 | 9 148 | – | – |
A total of 3 464 medical surveillance examinations were undertaken at Booysendal (F2013: 9 586), 1 334 of which were entry, 598 exits and 1 532 annual examinations.
The results of surveillance examinations undertaken during the year were satisfactory and no concerns were raised.
| F2014 | F2013 | F2012 | F2011 | |
|---|---|---|---|---|
| Entry examinations | 1 334 | 2 294 | 4 160 | 1 427 |
| Exit examinations | 598 | 2 347 | 1 496 | 77 |
| Annual examinations | 1 532 | 1 271 | 500 | 56 |
| Total examinations | 3 464 | 5 912 | 6 156 | 1 560 |
| Total number of employees (including contractors) | 1 421 | 1 915 | – | – |
Northam has a comprehensive HIV/Aids policy in place which covers employee care, education programmes, information confidentiality and non-discrimination. All Northam employees have access to professional counselling and support including VCT and ART.
The Northam HIV/Aids programme focuses on the following priorities:
Zondereinde’s HIV/Aids programme comprises:
In F2014, 1 049 employees were registered on the VCT programme (F2013: 1 088). Of these, 210 tested positive. A total of 902 employees currently participate in the HIV/Aids wellness programme.
Zondereinde’s peer educator programme includes 15 employees who form part of the support structure that provides counselling and training for employees infected and affected by HIV/Aids.
During the 11-week strike, more than 60% of the employees registered on the Suremed® HIV/Aids programme defaulted on their ART treatment. A number of these employees were admitted to hospital owing to compromised health. As a result, the medical aid scheme embarked on a targeted strategy to identify the defaulters and make arrangements for them to receive their ART treatment. Upon return to work, employees’ viral loads were checked and medication was adjusted in order to ensure that the treatment remains appropriate and effective. At the end of F2014, the rate of defaulters had declined to 20.5% and viral loads had improved as a result of the focused strategy.
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| VCT encounters – Zondereinde | 1 049 | 1 088 | 1 659 | 271 | 1 840 |
Booysendal’s HIV/Aids peer education group is managed by a core contractor, Minopex. The contractor aims to educate employees about chronic illness, the spread of contagious diseases and prevention measures. Minopex encourages employees to undergo VCT and to ensure that effective intervention, assistance and referral systems are in place. They manage the proper distribution and supply of preventative promotion material.
The numbers of employees registered on the VCT programme and taking ART medication are not recorded at Booysendal as this information is kept confidential.
In South Africa, TB is a significant health risk due to the symbiotic relationship between TB and HIV. Northam runs a highly effective, directly observed treatment regime, which is aligned to the TB guidelines of the World Health Organisation.
In F2014, 97 new cases of TB (F2013: 70) were identified at Zondereinde. A total of 109 employees were discharged from the programme. A total of 68 employees remained on TB treatment at the end of F2014 (F2013: 63)
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| New cases of TB – Zondereinde | 97 | 70 | 85 | 93 | 127 |
In F2014, 6 (F2013:2) new cases of TB were identified at Booysendal – all of whom were receiving treatment.
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| New cases of TB – Booysendal | 6 | 2 | 3 | – | 3 |
Excessive noise exposure is one of the most pervasive health hazards in mining. Prolonged exposure to hazardous noise causes loss of hearing acuity, which occurs gradually and is known as noise-induced hearing loss (NIHL). Northam ensures that it is legally compliant by guaranteeing that the noise associated with underground equipment is contained to below 110dBA. All Northam employees are issued with personal protective equipment to ensure that any exposure to noise levels above 85dBA over an extended period of time is limited.
Training in the use of personal protective equipment and prevention of NIHL is ongoing as part of the mines’ hearing conservation programme overseen by a hearing conservation committee.
In F2014, 20 incidences of NIHL were detected and referred for compensation (F2013: 43), of which two were compensable (F2013: 25).
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| New cases of noise induced hearing loss – Zondereinde | 20 | 43 | 44 | 18 | 9 |
Booysendal has a hearing awareness campaign in place, as well as a hearing conservation committee, which holds quarterly meetings. In F2014, 41 incidences of NIHL were detected (F2013: 28) of which one received compensation (F2013: 0). There were 41 new cases of NIHL reported in F2014 (F2013: 28).
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| New cases of noise induced hearing loss – Booysendal | 41 | 28 | 19 | 17 | 7 |
The use of hydropowered mining equipment at Zondereinde helps to reduce employee exposure to both noise and dust. Bushveld Complex rock does not contain quartz, thereby eliminating the threat of silicosis and occupational lung disease. Neither operation reported any such cases.
Drugs and alcohol are not tolerated in the workplace. At Zondereinde tests are conducted on a daily basis, and particularly after any safety incident. Employees who test positive are subject to disciplinary procedures along with assistance/rehabilitation offered to overcome dependency.
During F2014, a total of 3 578 employees were tested for drugs and alcohol at Zondereinde. A decrease in drug use (22 employees tested positive in F2014) and alcohol use (two employees tested positive in F2014) in the workplace was recorded.
Booysendal does not report on the number of alcohol and drug tests, but does implement a strict no tolerance policy.
Northam upholds the basic labour rights of the Fundamental Rights Convention of the International Labour organisation (ILO), through the implementation of fair employment practices. In terms of policies, Northam’s policies and practices comply with South Africa’s employment equity requirements. All employees are treated fairly, irrespective of origin, race or gender.
All Northam employees are expected to adhere to the code of ethics – supervisors and managers are required to take all reasonable steps to ensure that the people for whom they are responsible are aware of and uphold the guidelines set out in the code. This includes consistent demonstration of exemplary behaviour, activities to foster a culture in which employees understand their responsibilities and feel comfortable to raise concerns without fear of retaliation or victimisation, ensuring mandatory policies, standards and procedures are accessible and understood, and responding promptly to legitimate concerns.
The corporate human resources and transformation manager is tasked with overall responsibility for employment equity and is, therefore, responsible for providing strategic direction and priorities in respect of equity and transformation.
A senior manager, tasked with overseeing the operation’s human resources function, is in place at each operation and reports to a general manager. The general managers and chief executive officer are ultimately responsible for the management of human capital while the social, ethics and human resources committee assumes board level oversight of the management of human capital.
The social, ethics and human resources committee is responsible for ensuring that employees are equitably and fairly rewarded in alignment with company standards and their industry peers. The committee complies with the Companies Act No 71 of 2008 in terms of its social and ethical obligations. It is also responsible for governance of employment contracts and the remuneration packages of senior management, ratifying their appointments, setting mandates, approving short-term incentive schemes and bonuses, and overseeing shares in line with the Northam share scheme.
Mine-based human resources departments are responsible for the implementation and achievement of human resource priorities, including all aspects of the Mining Charter, focusing on:
Wage negotiations at Zondereinde started on 31 July 2013 and were marked by disputes from the outset. Following the intervention of third-party facilitators and extensive talks, the National Union of Mineworkers (NUM) was granted a certificate of non-resolution and proceeded with strike action on 3 November 2013.
The strike continued for 79 days until 21 January 2014. Losses amounted to 48 000oz of PGM production and revenues of R750.0 million while employees lost R151.0 million in wages.
The two-year wage agreement reached included increases in basic wages of 8.5% to 9.5% for Category 2 to 8 employees, and a 9% increase in the living-out allowance. Category 9 to 10 employees’ increases ranged from 7.5% to 8% with a livingout allowance increase of 7%. The settlement also included an ex gratia payment of R3 000 per employee upon return to work. The terms for payment of the ex gratia amount were elected by individual employees – either upfront or over time.
While engagement with labour around wages and conditions of service will always be a dynamic process, Northam management actively seeks to build constructive and progressive relationships, and to avoid any unnecessary work stoppages, which will inevitably have a negative impact on the company’s performance and the welfare of employees. The company has an established protocol and communication strategy in place to deal with industrial action, which includes maintaining open channels of communication with unions, employees, shareholders and investors, labour relations experts, mediators and facilitators, security services and the media. See page 82 on stakeholder engagement and communication.
The company also acts in compliance with the Labour Relations Act No 66 of 1995 and may use established processes, inclusive of legal relief when necessary, to bring any form of strike action to a swift resolution. The company is committed to engage and negotiate with any union that achieves the necessary representation levels.
There was no industrial action at Booysendal during F2014.
All employees, contractors and suppliers have the right to freedom of association and to act out this freedom within the bounds of the law, collective agreements and the rights of others. Employees and their elected representatives must shoulder the duties and responsibilities that attain to this right.
Wages and other conditions of service are negotiated on an annual basis. At Northam operations, unions registered with the Department of Labour (DoL), which represent at least 15% in any particular bargaining unit, receive organisational rights including:
When a registered union reaches a representative threshold of 33.3% within a bargaining unit, it acquires the right to bargain for that particular unit. The company aims to engage in good faith to reach agreement on matters such as wages, substantive conditions of service and other matters of mutual interest.
At Zondereinde, employees are divided into three bargaining units. Category 2 to 8 comprises operator level employees, Category 9 miners and artisans, and Category 10 officials. A total of 84.3% of the workforce in these bargaining units is covered by collective bargaining agreements.
At Booysendal, Murray & Roberts Cementation Proprietary Limited (MRC) is currently unionised and holds regular structured meetings with NUM while Minopex holds employee forum meetings from time to time.
| Category 2 to 8 | Category 9 | Category 10 | Total | |||||
|---|---|---|---|---|---|---|---|---|
| Complement | 5 935 | 389 | 366 | 6 690 | ||||
| NUM | 4 874 | 84.1% | 151 | 38.7% | 121 | 33.3% | 5 146 | 78.6% |
| Solidarity | 19 | 0.3% | 92 | 23.6% | 113 | 31.1% | 224 | 3.4% |
| UASA | 14 | 0.2% | 79 | 20.3% | 55 | 15.2% | 148 | 2.3% |
| Total | 4 907 | 84.7% | 322 | 82.6% | 289 | 79.6% | 5 518 | 84.3% |
| Category 2 to 8 | Category 9 | Category 10 | Total | |||||
|---|---|---|---|---|---|---|---|---|
| Complement | 56 | 9 | 82 | 147 | ||||
| NUM | 27 | 48.2% | 6 | 67.0% | 1 | 1.2% | 34 | 23.0% |
| Total | 27 | 48.2% | 6 | 67.0% | 1 | 1.2% | 34 | 23.0% |
At Zondereinde. Northam has formal structures in place to facilitate consultation with organised labour including:
Northam is committed to fair and progressive employment practices where long-term employment opportunities are provided to employees to grow and develop their potential. Remuneration practices take account of the demanding skills required in the mining industry, as well as the difficulty of attracting skilled historically disadvantaged South Africans (HDSA) to work in remote locations.
Northam’s employment practices and policies are governed by South African legislation and regulations such as the Mine Health and Safety Act, the Employment Equity Act No 55 of 1998, the Skills Development Act No 97 of 1998, the Skills Development Levies Act No 9 of 1999, the Basic Conditions of Employment Act No 75 of 1997, the Labour Relations Act, the MPRDA, collective bargaining and recognition agreements with organised labour.
A formal grievance policy is in place, providing for both individual and group grievances at Zondereinde. During F2014, three grievances were submitted. These have been referred for resolution in the current financial year. In F2013, nine grievances were submitted, relating to unfair labour practice, and were resolved in F2014.
Full-time Northam employees receive the following benefits:
Minimum notice periods prior to the implementation of significant operational changes that could substantially affect employees are prescribed by legislation.
In F2014, Zondereinde employed 6 638 full-time employees and 2 150 contractors (F2013: 6 916 full-time employees and 2 232 contractors) and the operation’s total employee turnover was 358 (4.0%).
Given the emphasis on local employment, engagement with the Thabazimbi municipality provides a platform for management to discuss required skills levels and competencies amongst the local populace.
Zondereinde’s migrant labour contingent comprises 30.9% of its permanent workforce and 32.3% contractors – sourced from South African provinces other than Limpopo and the North West. The operation’s foreign labour workforce, drawn from beyond South Africa’s borders, comprises 31.3% of permanent employees.
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| Number of employees and contractors – Zondereinde | 8 788 | 9 148 | 9 163 | 8 927 | 8 724 |
| Employee turnover rate (%) – Zondereinde | 4 | 1 | 7 | 7 | 8 |
In F2014, Booysendal employed 174 full-time employees and 1 247 contractors (F2013: 143 fulltime employees and 1 772 contractors).
Booysendal’s employment policies and those of its contactors give preference to local employees and South African citizens as part of its commitment outlined in its social and labour plan (SLP). Booysendal has recruited 42% of its workforce from local communities as part of its stated SLP commitment.
All contractors on site are obliged to commit to the company’s local recruitment targets, and they are required to submit a monthly report detailing the number of local employees, resignations and terminations. The employment of migrant labourers is discouraged at Booysendal, particularly in the mine’s unskilled categories.
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| Number of employees and contractors – Booysendal | 1 421 | 1 915 | 2 468 | Not reported | Not reported |
The welfare and living conditions of employees is a key concern for Northam. The MPRDA and the Mining Charter provide the company with direction in respect of the provision of housing and accommodation for employees and contractors.
At Zondereinde the Mining Charter targets are beyond its reach for F2014. To this end, the accommodation and home ownership strategy is currently being reviewed and accelerated in order to meet the necessary requirements by 2017. The company continuously engages with the DMR and provides regular updates on progress made to achieve set targets.
A six-a-side committee, consisting of six NUM representatives and six hostel managers, meets regularly and is chaired by the corporate human resources and transformation manager.
The majority of Zondereinde’s workforce comes from labour-sending areas – other countries, provinces and regions where they have their primary homes and families – and most employees have indicated that they would not like to be permanently housed in the area. A total of 2 797 employees are provided with a living-out allowance while another 2 884 live in hostels provided by Northam.
The living-out allowance for each category forms part of the annual wage negotiations between Northam and organised labour.
Employees in company-provided accommodation are provided with meals, which are overseen by a dietician who draws up meal plans and rigorously monitors energy, macro and micro nutrient content. An average of 4 586 meals were served to employees every day during F2014.
By the time of going to print some 1 640 single units were created in terms of the hostel conversion programme. A further 1 280 units will be converted during F2015. During F2014 alone, the company spent R31.3 million on upgrading hostels.
In 2005 Northam introduced the Mojuteng housing project to promote home ownership among its employees. Employees are offered a home loan, a debt consolidation facility and a structured housing subsidy, which helps employees to increase disposable income levels and results in higher home loan approval rates.
A total of 359 housing units have been sold to employees at Mojuteng near Zondereinde. An additional 29 stands are being prepared for the construction of houses for the benefit of employees. For the Mojuteng township in F2014, Northam paid
R51 107 to the Thabazimbi Municipality for services. The project is managed by Northam Properties (Norprops) and costs incurred are debited to the cost of sales. Norprops has a loan account with Northam, which is repaid in terms of houses sold.
Booysendal employees and contractors live predominantly in the towns and villages surrounding the operation, including Mashishing, Steelpoort, Burgersfort, Ngwaabe and Jane Furse. The mine only provides single unit accommodation for employees and core contractors at Tshufi residence where a total of 185 employees and contractors currently live (F2013: 184). The remaining employees and contractors opt to receive living-out allowances.
The Northam Toro Employee Empowerment Trust, a profit-share scheme, was established in August 2008 and represents the interests of 6 530 employees who fall into Category 2 to 10 at Zondereinde. In F2014, Northam contributed R9.2 million to the trust (F2013: R24.0 million). The trust’s net income for the year was R3.0 million (F2013: R4.3 million) and the net interest of the beneficiaries was R94.2 million (F2013: R127.2 million) at 30 June 2014.
The Toro Trust intends to distribute benefits to employees in three stages over a 15-year period, with the first payment of R54.8 million having been made in 2013. The creation and intent of the Toro Trust was communicated via a robust internal communications campaign to educate employees on its functioning and the benefits it creates.
During this time, Northam launched an internal communications campaign to help educate employees about the purpose of the trust, how it works, who will benefit and its value creation. The Toro Trust is governed by a board of trustees comprising representatives of management, the unions and independent trustees.
South African employment equity legislation is aimed at redressing the imbalances of the past through equal opportunity, non-discrimination and affirmative action. To rectify these imbalances, Northam focuses on the participation of black South Africans and women. The Mining Charter requires 40% of management to comprise HDSA employees by 2014. Northam achieved a 45% HDSA level of management in F2014 with 39% at Zondereinde (F2013: 37%) and 64% at Booysendal (F2013: 31%).
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| HDSAs in management (%) – group |
45 | 37 | 35 | 45 | 33 |
| HDSAs at board level (%) – group |
44 | 56 | 64 | 62 | 62 |
| Occupational levels | Total workforce (number) | Target (%) | Actual (%) | |||
|---|---|---|---|---|---|---|
| HDSAs | Women in mining | HDSAs | Women in mining | |||
| Zondereinde | Senior management | 8 | 40 | 10 | 25 | 13 |
| Middle management | 66 | 40 | 10 | 33 | 9 | |
| Junior management | 191 | 40 | 10 | 41 | 9 | |
| Booysendal | Senior management | 6 | 40 | 10 | 67 | 0 |
| Middle management | 19 | 40 | 10 | 26 | 0 | |
| Junior management | 69 | 40 | 10 | 74 | 35 | |
The employment equity and training committee structure, although equitably and transparently constituted, has had significant challenges in successfully achieving its objectives. The company is currently engaging with recognised organised labour structures and officials from the Department of Labour in addressing these challenges and realising requisite goals and targets.
Northam’s corporate human resources and transformation manager is responsible for employment equity, strategic direction and the priorities of equity and transformation.
It is important for Northam to attract and retain HDSAs and women in management positions in order for the company meet the 40% HDSA and 10% women in mining targets respectively. Detailed plans are being put in place to finalise departmental employment equity plans and to find ways of retaining appropriately competent individuals.
Northam’s employment equity plan is compliant with the requirements of the Mining Charter and the Employment Equity Act. Northam submits its employment equity plans and progress reports to the Department of Labour annually. The Mining Charter annual report was submitted to the DMR in Polokwane in April 2014 for both Zondereinde and Booysendal.
Northam’s transformation priorities are informed by constructive, productive and sustainable working relationships with organised labour and key stakeholders. Structures have been defined to ensure efficiency and focus on the implementation of these initiatives.
The composition of the employment equity and training committee has been revisited, and will be finalised in structure and mandate by 30 September 2014. Although the current structure is compliant with the requirements of the Employment Equity Act, the implementation of key interventions and monitoring of impact and outputs of the structure was not effective.
Northam’s engagement and consultation with women is undertaken by the employment equity and training committee at Zondereinde and the future forum at Booysendal, and is informed by consultation with local branch structures of the NUM.
The following major barriers and challenges have been identified by these structures:
To address these challenges, Northam continues to implement the following interventions:
In F2014, Northam employed a total of 537 women (F2013: 469), of whom 12% were working in the core disciplines of mining, metallurgy and engineering. Women made up 7% of the workforce at Zondereinde (F2013: 7%) and 20% at Booysendal.
| F2014 | F2013 | F2012 | F2011 | F2010 | |
|---|---|---|---|---|---|
| Women in mining (%) – Zondereinde | 7 | 7 | 7 | 7 | 7 |
Northam’s training and development programme aims to ensure that employees have the support they need to improve their competence and knowledge in the workplace and to grow as individuals. This programme includes:
Northam’s training and development policy stipulates that emphasis be placed on the competence and competitiveness of employees as well as their personal development. The impact of training and development interventions is assessed in order to ensure that these interventions positively influence workplace behaviour.
In F2014, the company spent a total of R16.7 million on training and development at Zondereinde (F2013: R20.2&nnsp;million) and R1.8 million at Booysendal (F2013: R1.3 million). This is equivalent to 2.1% of the total wage bill (F2013: 2.1%). Of this training expenditure, 1.8% was for HDSAs (F2013: 2.1%) and 0.2% for women (F2013: 0.3%).
Given the operations’ employee requirements for the medium term, no portable skills training was conducted during F2014.
In F2014, a total of R1.1 million was spent on leadership development. This training was offered to 205 beneficiaries. A total of 124 employees received Du Pont leadership training, which emphasises improvement of managers’ safety management skills and encourages employee participation in safety.
Literacy is important to Northam as it improves employees’ ability to communicate effectively and clearly.
ABET is available to all employees on a part-time basis and the company is accredited to offer ABET up to General Education and Training Certificate (GETC) level or National Qualifications Framework (NQF) Level 1. In F2014, 268 employees attended the ABET programme at Zondereinde.
Northam offers electrical, plater/boilermaker, rigging, underground mining and rock-breaking learnerships to all employees. In F2014, 16 employees participated (14 men and two women) in these learnership programmes.
Zondereinde’s bursary programme offers bursaries to second-year students in the fields of mining, electrical, mechanical and metallurgical engineering. Zondereinde also offers in-service training to participating individuals during their vacations. Successful bursars are subsequently entered into a two-year graduate internship programme before they are appointed to the Northam workforce.
In F2014, eight students received support to the value of R719 875 for mining-related engineering degrees (F2013: five students supported at a cost of R375 000).
The current bursary programme includes seven black females in line with the company’s strategy to increase female participation in professional occupations. To date, a total of R559 810 was paid for tuition, accommodation and other costs.
Bursary students employed at Zondereinde during the university vacation of June/July 2014 participated in intensive induction training and mine orientation programmes. In addition, they are mentored and guided in curriculum-related and personal enrichment topics.
Sibitlo Sulman, a permanent employee at Zondereinde, was awarded a bursary to complete her BTech degree in mining engineering at the University of Johannesburg in F2014. To date, a total of R160 065 (including wages) was invested in this bursary.
| Expenditure | Number of people | HDSAs | Women | |
|---|---|---|---|---|
| ABET | R1 119 752 | 268 | 65.3% | 4.4% |
| Learnerships | R800 116 | 18 | 77.8% | 11.1% |
| Bursaries | R719 875 | 8 | 100% | 100% |
| Study grants | R44 081 | 1 | 100% | 100% |
| Study assistance refunds | – | – | – | – |
| External training and skills development | R5 884 889 | 782 | 56.9% | 6.9% |
| Internal training and skills development | R12 165 242 | 7 234 | 74.1% | 3.0% |
| Total | R18 290 622 |
8 313 | 72.2% | 3.5% |
Performance reviews of junior, middle and senior management employees are conducted on a quarterly basis for all management positions. This process forms the basis of annual merit ratings for employees at middle and senior management level.
A study of the literacy levels at Booysendal has revealed that contractors have an average minimum ABET level 4 or Grade 9 qualification. ABET is, therefore, not considered necessary on mine. In F2013 Northam prioritised the facilitation of ABET classes for local community members in order to improve their access to employment opportunities in the future. An independent service provider from the local community provides these classes.
In F2014, 10 community members were enrolled into ABET and five completed the course (F2013: 16 and 15). A total of 38 employees participated in learnerships (27 men and 14 women) in the fields of rigging, electrical, auto-electrical, fitting and turning, instrumentation and plater/boilermaker.
Bursaries are available to Booysendal employees in surrounding communities in areas of study that support the company’s social and labour plans. These bursaries place emphasis on assisting bursars from Booysendal’s surrounding communities. In F2014 five students were offered bursaries (F2013: three) to the value of R391 612 (F2013: R147 645) as they endeavoured to complete a mining-related engineering degree of their choice.
Four men and three women participated in the bursary programme.
| Expenditure | Number of people | HDSAs | Women | |
|---|---|---|---|---|
| ABET | R154 000 | 10 | 100% | 80% |
| Learnerships | R2 352 414 | 39 | 97% | 30% |
| Bursaries | R204 270 | 4 | 75% | 25% |
| Study grants | R43 675 | 3 | 100% | 0% |
| Study assistance refunds | R21 660 | 2 | 100% | 0% |
| External training and skills development | R543 292 | 92 | 87% | 13% |
| Internal training and skills development | R459 838 | 254 | 83% | 19% |
| Total | R3 779 149 |
404 | 92% | 33% |
Performance reviews are conducted on a quarterly basis for all managerial positions. The performance appraisal process forms the basis of annual merit ratings for employees at middle and senior management levels – 30% of the employees in these occupational levels are male and 7.2% are female.
Employees are not provided specific training in human rights. However, employees are exposed to training in a number of areas including the company’s code of ethics on a bi-annual basis.
Northam’s social, ethics and human resources committee monitors support and respect for the protection of internationally proclaimed human rights, ensuring that Northam is not complicit in human rights abuses. Systems are in place to deal with issues of discrimination and human rights breaches.
Northam’s code of ethics clearly safeguards the rights of all employees to a working environment free of discrimination on the basis of race, gender, sexual orientation, religious belief, political affiliation, age or disability. Effective grievance and disciplinary procedures are supported by a sexual harassment policy. In F2014, no incidents of sexual harassment were reported.