Presented by: Tshimane Montoedi, Deputy General Secretary National Union of Mineworkers

Theme: TRANSFORMATION THE KEY TO THE FUTURE

Roadmap

1. Transformation in Mining2. Challenges with SLP

Implementation3. Human Resource

Development4. Local Economic

Development5. Housing and Living

Conditions6. Downscaling and

Retrenchments7. Ownership8. Beneficiation9. Procurement10. Employment Equity11. Mine Community

Development12. Mining Charter Assessment

Challenges13. Way Forward14. Call to Action

Transformation in Mining

• The mining industry has the necessary legislative frameworks to achieve greater transformation and ensure the development of its employees, mine host communities and labour sending areas.

• The biggest impediment to achieving the above mentioned objectives, is the industry’s lack of commitment towards transformation.

• Industry leaders need to spearhead this process with executive decisions, backed by the necessary financial support

• SLP implementation should result in skills development for employees, developed mine host communities, mining operations significantly contributing towards local economic development through procurement , enterprise development and beneficiation.

Challenges with SLP Implementation

• There is no direct link between the Mine Works Programme, SLP commitments and Municipal IDP’s

• Non compliance is not linked to heavy penalties (Section 93 not always followed by Sec 47)

• Lack of Coordinated Monitoring and Evaluation Programme (as per the stakeholder declaration)

• Section 101 not adhered in the appointment of contractors• The mining industry has a collective responsibility to ensure that

mining companies comply with the Mining Charter, the MPRDA 2002, Skills Development Act, Social and Labour Plans

Human Resource Development

• Updated Form Q that determines employees educational needs• Full implementation of Employee and Community ABET program• Eradicating Barriers linked to ABET, these include loss of bonuses

and salaries for employee’s who attend such programmes• Mining Companies should stop relying on MQA grants in order to

implement skills development initiatives• Learnerships & Bursaries should be utilised to empower workers

and create community talent pool• Currently our NUM JB Marks Bursary scheme has produced more

than 800 graduates in various fields, ranging from Medical Doctors to Mining Engineers over the years

Local Economic Development

• Stakeholder involvement in the implementation process• Compulsory Host Community and Labour Sending Areas Socio

Economic Survey should be conducted in order to understand their needs

• Mining Companies project managing all LED projects to ensure sustainability of the project

• This section should be linked to both Local and District Municipalities Integrated Development Plans

Housing and Living Conditions

• Conversion of all hostels into single and family units as per the charter targets (this must include all contractor employees)

• Mining Companies should not only facilitate, but provide employees with houses as benefits of the minerals they mine.

• Mining Companies should ensure all new developments house prices are affordable for mine workers.

• Housing Policies should allow employees to own houses in Labour Sending Areas and Villages

Downscaling and Retrenchments

• All mining right holders must have compulsory monthly SLP forums with Labour Represented and quarterly Future Forums with other stakeholders represented.

• The industry should implement Section 52 and Regulation 46 (e) before LRA’s Section 189.

• Companies should cut management salaries and bonuses as an initiative to avoid Job losses.

• DMR Regional Offices should be actively involved in the approval or rejection of all downscaling processes.

Ownership

• Achieve a minimum of 26% HDSA ownership by 2014 (including ESOPS)

• 10% Should be owned by Employees• 10% Should be owned by host communities• This ownership should translate into executive decision making• The funding for these initiatives should not be linked to any debt • It should also enjoy the equal shareholder benefits, including

dividends and participating in AGM’s or board meetings.

Beneficiation

• Coordination between DMR, DTI and Economic Development Departments (on the implementation of the Beneficiation Strategy)

• The Beneficiation strategy should outline both upstream and downstream beneficiation process

• The strategy should be linked to the Skills Development Accord with specific focus on how SETA’s can ensure alignment with the required skills

• Establishment of a Mineral Beneficiation Committee

Procurement

• Developing an industry wide strategy for local procurement and enterprise/SMME development

• The regulator’s monitoring and evaluation process should include forensic audits of company financial statements and submitted reports

• Established Suppliers must form mandatory Joint Venture partnerships with local suppliers

• Enterprise Development should be accompanied with the relevant support

Employment Equity

• Industry should eradicate the “Irish Coffee Syndrome”

• Income disparities should be addressed (especially if race and gender is the only differentiator between two employees)

• HDSA’s in Management should have executive authority

• HDSA’s should represent the country’s population demographics, currently the biggest benefactor of this policy are white women

Mine Community Development

• Host communities and labour sending areas should benefit from the mineral wealth of this country

• The Community is a critical stakeholder in the mining industry, hence it’s imperative for companies to include them in their HRD programme (ABET, Learnerships, etc.)

• Enterprise Development with the relevant business support

• Preferential Procurement Policies should specifically target the Economic Development of host communities

Call To Action

• Recent events bring to light painful disconnect between industry and workers• NUM has for years been calling for more rigorous mechanisms to penalise those

that are not compliant with transformation legislation• The NUM’s recent Central Committee expressed grave concern regarding the levels

of non compliance in the industry, hence it called for a mass action against the over paid captains of industry

• Pontificating of definitions and policy will not settle the rumbling storm in communities in search of economic and social justice

• Over the past 32 years the NUM has spearheaded worker and community emancipation within the industry surroundings, hence we have adopted the mass mobilisation of our members in all NUM branches and host mining communities to fight against this non compliance in the Mining Industry.

AMANDLA!