Social and Labour Plan Report. West Wits

Transcription

1 2007 Social and Labour Plan Report West Wits

2 Contents Section 1: Human Resource Development Programme 1.1 Skills Development Plan How do employees know that ABET training is available? Financial Incentives ABET Forecast 2007/ Community ABET Internship and Bursary Plan Internships Bursaries Winter / Spring School Career Progression (Path) Plan Mentorship Plan Employment Equity Plan Women in Mining Workforce Profile... 7 Section 2: Community Development 2.1 Community Consultation and Involvement Social Investment Spending Measures to address housing and living conditions Stakeholder Interface Upgrading of Residence Female Accommodation Re-development of Residences to Family Units Promotion of Home Ownership Formalisation of Vaal River and Umuzimuhle Mine Villages Section 3: Procurement 3.1 Procurement Progression Plan Section 4: Ownership and Joint Ventures 4.1 Employee Share Ownership Plan New Appointment: AngloGold Ashanti Non-Executive Director Annexures: Form S: Employment Equity Statistics per Business Unit Form T: BEE Procurement

3 Section 1: Human Resource Development Programme 1.1. Skills Development Plan Skills Development Committees are in place at each business unit. Theses committees consult at least quarterly on skills development and related matters. One total company Workplace Skills Plan and Report is compiled with each business unit submitting information to a central point. The company duly submitted its 2007 Annual Skills Plan and Report to the MQA in June How do employees know that ABET training is available? A Skills Development Structure, comprising of a forum based at West Wits, is in place to promote and support the delivery of ABET. These forums discuss ABET-related issues that include the marketing and promotion of programmes being offered to employees. The National Union of Mineworkers (NUM) also forms part of the Central Skills Development Committee Meeting (CSDC) that serves as channel to communicate about and to market the ABET initiative. ABET posters are placed on selected notice boards, providing employees with relevant information and inviting them to take part in the initiative. At business unit level, Skills Development Committees where ABET is a standard agenda point are in place with the NUM as a prime stakeholder. The business units and respective residences also have graduation ceremonies and numerous marketing campaigns targeted at informing employees about the availability of ABET programmes. AngloGold Ashanti also participated in the National Literacy Day celebrations with a promotional event held at the Opppenheimer Stadium, situated in the Vaal River area near Orkney. This event was attended by more than 1000 people with a delegation of around 500 employees from AngloGold Ashanti Financial Incentives Financial incentives have changed retrospective from 1 April 2006 as follows: Pre-ABET: R250 (No change as Pre-ABET is not funded by the MQA) ABET 1: From R1 000 to R1 170 ABET 2: From R1 500 to R1 170 ABET 3: From R2 000 to R1 170 NQF 1: From R4 000 to R1 170 Learners have to successfully complete the ABET / NQF1 programmes in order to qualify for the incentives, which are only being paid once verification audits are done by the MQA ABET Forecast 2007/8 Numbers achieved per ABET level during 2007 January to December. (Excluding Community ABET) Target 2007 Actual 2007 Target 2008 NQF ABET ABET ABET PRE-ABET TOTAL

4 Community ABET ABET is being provided to members of AngloGold Ashantiʼs host community at a school situated in Wedela near Carletonville. Furthermore, a number of learners form host communities are attending part-time classes that are presented at the company residences. Target 2007 Actual 2007 Target 2008 NQF ABET ABET ABET PRE-ABET TOTAL Internship and Bursary Plan The company has implemented and will continue to support measures that equip and enhance the competencies of its talent pool. The internship and bursary programmes have been significantly increased from 2006 to 2008 owing to projected shortages of critical skills Internships The full-time internship programme is intended to develop employees for career paths. (Refer to table on page 4) The Management Trainee Programme (of around three years in duration) gives graduates and diplomates the skills needed for mid-management positions. Miners and artisans are engaged in learnerships (of around two years in duration) to gain the skills needed for supervisory positions. Officials participate in similar schemes to develop into supervisory positions Bursaries Bursaries are offered for full-time tertiary studies in specific fields of study that are critical to the company. A group of 50 tertiary students have benefited from AngloGold Ashantiʼs bursary support in (Refer to table on page 4) Winter / Spring School A group of 135 matric learners were invited to participate in a supplementary education programme aimed at helping them to improve their performance in Maths, Science and English. This included one study school held in July and another held in September. The intention is to assist learners within AngloGold Ashantiʼs host communities to obtain matric results that enable them to pursue tertiary studies. In addition, suitable learners from this programme are being considered for bursary support for tertiary studies in

5 AngloGold Ashanti Intership and Bursaries Plan 2007 Scheme Mining Eng Metallurgy MRM Rock Eng SHE HR Finance Total Bursars MT s Miners and Artisans Officials Total Demographic Break-Down of AngloGold Ashanti Bursars for 2007 It is intended to retain the current HDSA split for the bursar population in Discipline HDSA s White Males Total Mining Engineering MRM Metallurgy Total 37 (74%) 13 (26%) 50 AngloGold Ashanti Internship and Bursaries Plan As per 2008 Budget Scheme Mining Eng Metallurgy MRM Rock Eng SHE HR Finance Total Bursars MT s Miners and Artisans Officials Total Portable Skills Training (Year to Date) % % Total community Total AGA Number Trained January February March April May June July August September October November December 4

6 1.3. Career Progression (Path) Plan Career paths relate to the organisation and essentially describe the hierarchical steps and job titles available within the organisation. AngloGold Ashanti has established clear career paths in the following core disciplines: Mining, Engineering, Mineral Resources Management, Metallurgy, Financial Services and Human Resources. An individual development plan describes the development that the individual requires in their chosen career. AngloGold Ashanti ensures that career paths are clearly defined. The company has implemented a performance management system for the purposes of talent identification and the management of employees in the C Upper to E Lower Paterson bands. This performance management system is based on the following objectives: To align individual efforts with the company objectives; To serve as an objective basis for recognition and reward; To provide feedback and improve performance; To identify training and development needs; and To serve as a basis for succession planning The performance management system identifies employees with development potential. All of those so identified are required to have development plans. This process is initiated at business unit level where managers, supervisors and their subordinates agree to the employee s development contract. Talented employees are then invited to attend discipline / business unit specific development panel interviews, which are chaired by the respective general manager / head of the discipline (Mining, Engineering etc.). Employees in senior and middle management positions are given exposure to a multi-disciplinary panel chaired by the executive officer for AngloGold Ashanti s Africa Underground Region. The information contained in an individual s development contract feeds into the workplace skills plan and progress is monitored through quarterly training reports. AngloGold Ashanti plans to continue with and to maintain these career progression processes in Mentorship Plan AngloGold Ashanti s mentoring process which the company is committed to maintain involves the identification and training of mentors, the allocation of protégés, coaching sessions and panel interviews as well as interactions with heads of disciplines and general managers. In line with the company s accelerated development process, HDSA employees who would receive formal mentoring include: Bursars (65 per cent are currently from the HDSA population). Management trainees (58 per cent are currently from the HDSA population). Learner officials. Any individual with identified potential on a planned career path. Furthermore, the company maintains a database of each trainee s progress that is accessible to the trainees, their managers and mentors. 5

7 1.5. Employment Equity Plan The company strategy is to continue focussing efforts towards the 40 per cent HDSA in management and 10 per cent women in mining targets. (Status is reflected as per Form S. Refer to page 15 for detail) An Employment Equity Audit was held in February Following this audit, a number of proposals have been recommended to business units for implementation. Table 1: West Wits 2007 Employment Equity Plan Male Female Persons with Occupational Level disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total Table 1.1: Summary of West Wits 2007 Employment Equity Plan Total Workforce C Band D Band E Band Number of Females Number of Males Total Number of Employees Total Number of Designated % Females % Designated Women in Mining Female representation has increased year on year to 9 per cent across the company. To further enhance female representation, all business units are currently evaluating themselves against key recommendations that arose from a Women in Mining Survey that was carried out in conjunction with the Employment Equity Audit in April Business unit specific action plans will be established to close gaps as identified. Issues to be addressed include initiatives such as career development and growth, as well as physical demands of the job / job requirements. 6

8 Table 2: West Wits 2007 Workforce Profile (Refer to Form S on page 15 for more details) Male Female Persons with Occupational Level disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total Table 2.1: Summary of West Wits 2007 Workforce Profile Total Workforce C Band D Band E Band Number of Females Number of Males Total Number of Employees Total Number of Designated % Females % Designated Note: For 2007, although the West Wits Region has met and exceeded its targets in some areas e.g. planned and achieved 7 per cent females at E-Band and planned 14 per cent designated at E-Band and achieved 16 per cent, efforts are being made to address areas where gaps between targets and actuals still exist. 7

9 Section 2: Community Development 2.1. Community Consultation and Involvement AngloGold Ashanti continues to engage in an open transparent way with all stakeholders but with focus on the following representative structures: The company will continue to participate in provincial structures including the North West Growth and Development working groups as well as mining forums. The company aims to continue with the process aimed at creating alignment with the local government community development initiatives. In this regard the company established a two-tier structure comprising a mandating committee and implementing committee. The mandating committee members are political heads, senior officials and AngloGold Ashanti senior management. At this forum, the members discuss opportunities for public private partnership projects, decide on future interventions and monitor progress. The implementing committee discusses the project plans and implementation of approved projects. The company aims to continue with the quarterly executive officer briefings to the key stakeholders in the local communities. During these briefing sessions, the executive officer informs community leaders about the company's operational performance for the past quarter and depending on the theme, introduces presentations that are focused on sharing information about aspects such as the sustainable development strategy, community development, procurement strategy and other relevant issues. Stakeholder engagement plans for each of the company s geographic regions are being developed as part of the process to ensure valuable stakeholder engagement Social Investment Spending Community and social development initiatives are guided by the company values which state: AngloGold Ashanti strives to form partnerships with host communities, sharing their environments, traditions and values. We want communities to be better off for AngloGold Ashanti having been there. We are committed to working in an environmentally responsible way. Social investment spending is based on the following principles: AngloGold Ashanti's Corporate Social Investment (CSI) programme considers support for non-profit organisations and institutions that are working towards the upliftment of the broader community. Focus is placed on areas such as education, HIV / Aids, health, job creation, skills development and welfare. Funding decisions are made by the Board of Trustees that meets on quarterly basis. The Local Area Committees (LACs) of the CSI programme considers projects that resonate with their host communities and are once off donations by the company. The LACs provide a maximum funding of R7 000 per project. Funding decisions are made through a quorum of agreement. Local economic development / job creation projects should show financial viability and the entrepreneur must be able to make a significant contribution towards the required project funding. The Local Economic Development / Sustainable Job-Creation projects for 2007 are as follows: Stone Crushing and Waste Washing Plant Mponeng Mine Project aims to process the unused mine dump to produce aggregate. This will be done in partnership with Stone and Allied. The project will create 18 to 20 full-time jobs and will process around tons per day (waste washings to plant). Section 102 application for the project to be submitted to the Department of Minerals and Energy (DME). 8

10 Merafong Brick Plant TauTona Mine A brick manufacturing plant, which will mainly supply bricks to the Khutsong expansion project that involves the building of aroung houses, will be extablished in partnership with the Merafong municipality. Project aims to create 16 jobs. AngloGold Ashanti approved R1.3 million towards the project. Selection of entrepreneurs is underway and the brickyard is expected to start producing bricks in January Jewellery Manufacturing Sustainable Development / AngloGold Ashanti Marketing Through a joint venture between Anglogold Ashanti and the Department of Minerals and Energy (DME), this project aims to establish a jewellery design and manufacturing facility that will provide employment for paraplegics in the West Wits area. Project plan not approved owing to the high project costs. DME informed about the decision. Over and above the planned expenditure on local economic development, AngloGold Ashanti plans to spend R16.8 million on social investment projects in This would be made up as follows: Provincial Spending by Value North West Province Eastern Cape Gauteng Outside South Africa Kwazulu-Natal National Western Cape Total R R R R R R R R % 19% 16% 10% 8% 1% 1% 100% Sectoral Spending by Value Education HIV and Aids Welfare and Development Skills Training and Job Creation Health Area Commitee R R R R R R % 14% 14% 11% 8% 8% Arts and Culture R % Grand Total R % Note: The above CSI forecast spending for 2008 is based on average expenditure for the past two years. 9

11 2.2. Measures to address housing and living conditions Stakeholder Interface The following interfaces are in place: AngloGold Ashanti Accommodation Forum with representation of all organised labour formations. This forum meets on a needs only basis. Operational Accommodation Forum, which is based at Vaal River with representation of all organised labour formations, that meets on a scheduled monthly basis. Senators at residence levels. These senators comprise five full-time, elected employee representatives at each of the residences with the objective of affording residents an opportunity to influence the decision-making process within their respective residences about aspects such as food, accommodation, health and safety, leisure time activities, industrial relations and communications. Accommodation issues are discussed within these forums as mandated by the AngloGold Ashanti Accommodation Forum. Accommodation issues are also referred to the AngloGold Ashanti corporate level if all efforts to resolve these fail at an operational level Upgrading of Residences The following was agreed, in the various consultation forums, as the strategic basis for residence upgrading: To reduce occupation densities where appropriate in high-density residences to single bunking and then to increase levels of privacy. Designs were shared with the Operational Accommodation Forum, with stakeholders' acceptance and approval to improve privacy (one man per room) for individuals presently sharing a room. The physical work commenced during 2005 and proceeds subject to funding availability. It is anticipated that the process will be complete by The record to date for privacy and upgrading projects at both Numba Wani and Motebong residences is as follows: 2005 R2.7 million for the conversion to private rooms at four of the sections at each residence R4.7 million for upgrading of the four blocks plus the conversion of another block into private rooms at each of the residences R6.26 million for work in progress on privacy and the upgrade of three additional blocks at each residence. A total of 422 private rooms are now occupied and work is in progress to provide an additional 274 rooms by the end of Female Accommodation As part of broader efforts aimed at meeting female employment targets, the need for female accommodation is being addressed as an integral part of residence accommodation at operational level. The strategy is to accommodate women within the current residences by amending ablution facilities to suite female-specific needs. 10

12 Re-Development of Residences to Family Units Ekhayalihle Residence was evaluated and found suitable for a phased redevelopment into flats for family accommodation. The designs and concept were shared with and accepted by the West Wits Accommodation Forum in Progress achieved to date is as follows: 2004/5 Redevelopment of 48 units in Block 7, at a cost of R5.2 million, commenced in June 2004 and was completed for occupation in December /7 Redevelopment of 48 units in Block 6, at a cost of R5.7 million, commenced in July 2006 and was completed for occupation in March /8 Redevelopment of 96 units in Blocks 5 and 4, at a cost of R9.05 million is in progress for completion by May A review of alternative housing delivery models is in progress to ensure ongoing sustainable utilisation post mining Promotion of Home Ownership The sale of residential units and vacant stands were launched in November 2005 and is an ongoing project depending of the availablility of surplus housing units. The sale of vacant stands is planned to re-open in A memorandum of agreement was reached with organised labour on parameters to be used. The sales are limited to the current tenant and values are set at market levels. Accommodation assistance payments were substantially increased for the Group 3-8 employees and to a lesser degree for Lower-B to Upper-C level employees during the latter part of Accommodation assistance payments at the lowest level were increased to R1 100 per month in September Formalisation of West Wits Mine Villages AGA has embarked on the formalisation of the West Wits Village, adjacent land and properties into the municipal area of Merafong. Incorporation applications were lodged with the appropriate authorities following significant technical planning as well as extensive consultation with accommodation forums, local authorities and other stakeholders. A principle agreement to proceed from the local authority was received in July 2006 and the Scoping Report was approved in September Approval of the general plan is expected by January 2008 and proclamation is expected in May The goal of the process is to have the village proclaimed as a township within the Merafong Local Authority and in so doing to promote self-sustainable communities. The project is planned to achieve completion in 2009 at an estimated cost of R7.70 million. The expenditure on the formalisation of the mine villages for 2007 was R

13 Section 3: Procurement 3.1. Procurement Progression Plan AngloGoldAshanti treats HDSA companies as preferred suppliers. In practice, this does not mean accepting higher tender prices from HDSA companies. What it does mean, however, is that: BEE companies complying with the AngloGold Ashanti criteria are placed on our vendor list. (Refer to Form T on page 17 to 21) BEE companies would receive preferred status in winning contracts, should they be commercially competitive. The company has identified current level of procurement from HDSA companies in terms of capital goods, consumables and services as per the table below. The company has also developed a programme for progressively increasing the sourcing of these goods from HDSA companies, with annual targets set for a ten-year period as per the table below Original Target Revised Target 1 Revised Target 2 (April 2004) 7.53% 7.53% 7.53% Actual 7.53% % 8.04% 8.04% 8.04% % 11.61% 10.96% 10.96% % 15.31% 26.48% 21.05% % 16.82% 27.61% 33.49% % 21.38% 33.94% 37.41% % 24.74% 37.75% 34.59% % 28.09% 41.46% % 31.43% 45.07% % 34.76% 48.58% % 38.07% 51.99% % 41.37% 55.29% AngloGold Ashanti has made good progress in meeting the requirements, and, encouraging progress made as shown in the graph below. 60% AngloGold Ashanti BEE procurement spend 50% 40% 30% 20% 10% 0% Actual Original target Revised target 12

14 In order to set achievable targets and establish a working mechanism for the procurement staff, it was necessary to understand the AngloGoldAshanti status with regard to BEE. This formed the base from which targets were set. This process involved a number of specific activities which included: Verifying the status of current suppliers. Identifying products and / or services that could be procured from BEE companies. Establishing a BEE database. Accreditation of BEE suppliers. Incorporating the BEE database into current systems (MIMS). Growth and optimisation of the BEE vendor base. Establishment of working groups to focus on procurement related topics that include price fixing, price matching, sub contracting, set aside commodities, creative payment terms, payment premiums, sensitising the existing supplier base to BEE requirements and more. Establishment of an AngloGoldAshanti BEE Monitoring Forum to facilitate and evaluate progress. Commodity procurement teams will be targeted to include BEE in their strategic procurement initiatives. Establishment of active networks within AngloGold, industry wide and with the various role players such as the Black Economic Empowerment Forum, NAFCOC and others. Establishing a transition process from the current Mining Charter measurement system to the Promulgated Code of Good Practice. Recognition of a decrease in achieving the set Mining Charter targets with advent of the introduction of the new BBBEE Codes. Re-engineering of all of the above to be compliant with the codes by

15 Section 4: Ownership and Joint Ventures 4.1. Employee Share Ownership Plan Having satisfied the DME on the veracity of the 1998 and 2001 Armgold transactions, the company s remaining obligation in 2006 was to implement an Employee Share Ownership Plan (Esop) worth at least 6 per cent of the value of the company s South Africa operations. During 2006 a process of consultation with the three representative unions at AngloGold Ashanti led to a collective agreement on an Esop, and agreements on the rules of the Esop and a deed of trust for the trust which is to manage the Esop. A BEE transaction with Izingwe Holdings, to run parallel to and in co-operation with the Esop was also finalised. A special shareholders meeting of AngloGold Ashanti approved the transactions on December , and the relevant share transfers occurred later that week. The Esop board of trustees met several times during the course of 2007 to carry out its mandate. Employees received dividends in respect of their shares. Also during 2007, employees whose contracts of employment with the company ended due to reason of death, retrenchment or other reasons designated as entitling them to the benefits of the scheme, received payouts ranging between R5 649 and R14 606, depending on the share price and share allocation on the effective date New Appointment: AngloGold Ashanti Non-Executive Director Mr Sipho Pityana, chairman of Izingwe Holdings (Proprietary) Limited, was appointed as a non-executive director of AngloGold Ashanti with effect from 13 February

16 Annexures Annexure 1 Form S: Employment Equity Statistics per Business Unit Male Female Persons with Occupational Level Total disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total Mponeng Mine Male Female Persons with Occupational Level Total disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total Savuka Mine Male Female Persons with Occupational Level Total disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total TauTona Mine Persons with Male Female Occupational Level Total disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total Africa Underground Region Metallurgy 15

17 Persons with Male Female Occupational Level Total disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total South Africa Region Services Persons with Male Female Occupational Level Total disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees 0 Total Ergo Persons with Male Female Occupational Level Total disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total Corporate Office Persons with Male Female Occupational Level Total disabilities White African Coloured Indian White African Coloured Indian Male Female Top Management Senior Management Professionally qualified and specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents Semi skilled and discretionary decision making Unskilled and defined decision making Sub-Total Non Permanent Employees Total AngloGold Ashanti Health 16

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