SECTION 5

SECTION 5: PROCESSES PERTAINING TO MANAGEMENT OF DOWNSCALING AND RETRENCHMENT – REGULATION 46 (c) (iv)

5.1   Establishment of Future Forum

ZAC has established a future forum as required by the Mineral and Petroleum Resources Development Act (MPRDA) which provides for participative governance at the workplace to ensure implementation and progressive monitoring of production, mine closure and implementation of the Social and Labour Plan (SLP) commitments. Quarterly meetings are held between the mine management and employees’ representatives where update of the Mine’s productivity levels, employee’s skills development progress and potential risks that may impact negatively on the performance of the mine are discussed. The Forum has Terms of Reference (ToR) in place, which is attached as in the Annexures.

The forum members will continue to be trained to ensure that members are able to meaningfully contribute to the implementation and monitoring of mine closures, downscaling and the Social and Labour Plan (SLP).

5.2. Measures to save jobs and decline in Employment.

Economic challenges continue to prevail in the mining sector. Should the conditions cause the profit revenue ratio of the operation to be less than 6% on average for a continuous period of 12 months; the Mine will embark on the following processes:

  • Consultation process with the Future Forum, in terms of Section 52(1) of the Labour Relations Act.

  • Notification to the Department of Mineral Resources and Energy

  • Implementation of Section 189 of the Labour Relations Act.

  • Complying with any Ministerial directive and appropriate corrective measures

  • Implementation of portable skills

It will always be a priority to avoid job losses and decline in employment given the downstream negative effects on the social system’s survival due to increased poverty and unemployment.

A participative and consultative approach to avoid job losses will be followed. Should operational requirements leave no alternative to retrenchment, a way forward will be established and managed jointly by all stakeholders in line with legislation and codes of good practice.

Mechanisms that ZAC will embark on to save and or avoid job losses in an event where retrenchment possibilities are foreseen will be as follows:

  • The company will provide portable skills training relevant to the area as agreed to with employees.

  • On retrenchment, identified employees will be reskilled and placed on the various programmes outlined in the portable skills table. 

  • Meetings will be held with employees who sit in the Future Forum to engage and update them of potential retrenchments.

5.3. Mechanisms to provide alternative solutions and procedures for creating job security where job losses cannot be avoided.

Should any section of the mine be scaled down or cease its operations, the following processes, over and above internal job saving mechanisms, will be followed:

  • Consultation process in terms of Section 52(1) of the Labour Relations Act.

  • Implementation of Section 189 of the Labour Relations Act.

  • Notification to the DMRE.

  • Development and implementation of an effective communication strategy where employees, and other affected parties (Traditional Authority, the municipality, local forums) will be informed of possible retrenchment.

  • Provision of alternative portable skills training, as it forms part of the down scaling or closure plans to minimise the effect on its employees.

5.4. Mechanism to ameliorate the social and economic impact on individuals, regions and economies where retrenchment or closure is certain.

5.4.1. Measures to minimise the impact of downscaling and retrenchments.

The Mine will follow the procedures for downscaling and retrenchment as set out by the Department of labour and the Labour Relations Act, as well as the mine’s collective agreements.  Industry wide networking and good stakeholder relations will be put in place to manage downscaling and retrenchment processes and these relationships will be maintained. The obligation to inform the Department of Mineral Resources and Energy (DMRE) as per section 52(1) of the Minerals and Petroleum Resources Development Act will be adhered to and its directives will be honoured.

5.4.2. Portable Skills – Employees

Portable skills training is meant to provide employees with skills that will enable them to be marketable when the mine faces closure.  Due to the Mine’s life-span estimated to eleven (10) years, the company will embark on specific market related skills programme. In the interim, the Company undertakes to train employees as per the targets indicated in Table 32 below.

When the mine faces imminent closure, affected employees will, as per standard good practise, be supported to redirect their careers by the provision of counselling sessions. The provision of portable skills will ensure that communities are empowered to survive future mine closures or downscaling through community projects.

Table 32 Portable Skills (Summary) Budget

 
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