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Our people

Exxaro’s current staff complement was 11 180 at 31 December 2009. Supported by the leading practices developed in recent years, we concentrate on exceeding compliance targets in South Africa by training and development to maximise individual potential, equality and safety in the workplace, meeting our employment equity targets and improving standards of living in our stakeholder communities. Collectively, our initiatives are also contributing to reducing the shortage of skills in our industry.

After nearly two years of planning, process design, system development, testing and training, the new integrated HR management system went live in March. This gives the group a consolidated and standard process and systems landscape that is integrated with Exxaro e-learning, medical surveillance and access control systems, ensuring end-to-end business process integration. This advanced environment supersedes all legacy systems and enhances Exxaro’s ability to monitor, control, enforce compliance (medical and induction expiries, overtime and leave liability), ensures accurate and timely business information, and effective forecasting of people-related information (employees and contracting workforce).

This sophisticated system gives managers immediate access to a “single view” of all essential employee information, and enables employees to manage much of their own routine HR information.

At Exxaro, we follow a total remuneration approach that has guaranteed and variable components. The group’s vision, mission, business strategy and culture drive this remuneration philosophy and strategy as do governance structures and external statutory regulations (SA Revenue Services, King III and IFRS II). The components include guaranteed pay, short-term incentives and long-term incentives such as share schemes and benefits. All components are benchmarked against the external market to ensure Exxaro remains competitive.

This approach was studied by an international authority on remuneration who rated it in line with global best practices, and with the top 40 companies listed on the JSE.

Wage agreements governing remuneration are in place at all group employers, while formal processes determine remuneration for non-unionised employees. Six-monthly market surveys ensure that total remuneration is market related. At all levels, minimum conditions of employment exceed the requirements of South Africa’s Basic Conditions of Employment Act.

During 2009, there were again no reported incidents of discrimination in the group.

There are two main categories of employees in Exxaro: employees in bargaining units and the management and specialist category.

In the bargaining units, there are 9 288 employees, with 1 892 employees in the management and specialist category. All are full-time employees with only one person in Gauteng being a part-time employee (in a bargaining unit). In Gauteng, 16 employees in the management and specialist category are expatriates. Two are based in China, one in Australia, one in The Netherlands, 11 in Namibia and one in Switzerland. The regional distribution is as follows:

Region   Bargain-  
ing unit  		 Manage-  
ment and   
specialist   
category  		 Total  
Gauteng   1 045   645   1 690  
KwaZulu-Natal   617   183   800  
Limpopo   2 715   450   3 165  
Mpumalanga   3 697   266   3 963  
Western Cape   736   248   984  
Namibia   478   100   578  
Total   9 288   1 887   11 180  

Literacy and numeracy

Exxaro continues to offer sponsored, voluntary adult basic education and training (ABET) programmes at all commodity businesses. Exxaro carries the full cost of these programmes, some R1,3 million in 2009.

The expenditure is lower than 2008 without a significant decrease in the number of employees trained, due to the computerisation and optimisation of facilities and more effective deployment of facilitators.

Candidates are screened and counselled to ensure they can make informed decisions, and an incentive scheme is in place for each level completed to encourage more employees to become functionally literate and numerate. More than 1 000 employees have passed one or more ABET levels since the inception of this programme.

In 2009, Exxaro again made good progress towards the target of offering every one the opportunity to become functionally literate and to participate in ABET classes. During the year, 311 employees completed various ABET levels successfully, a 32% increase on the prior year. Of these, 24 passed ABET level 4, 78 passed level 3, 57 level 2, 113 level 1 and 39 pre-ABET. Equally, the number of non-employees completing different ABET levels continues to rise, with 320 completing an ABET level during the year. Across the group, 68% of employees had NQF level 1 or above qualification in December 2009 (68% in September 2008).

Exxaro has accredited ABET training centres at Grootegeluk, Tshikondeni, Matla and Arnot mines. The group’s annual training reports and workplace skills plans, submitted to and approved by Mining Qualifications Authority (MQA), contain sections on the number of ABET candidates completing various levels and planned for the years ahead.

The group has some 93% of employees with at least NQF level 1.

Specific ABET successes in 2009 include:
  • KZN Sands started the ABET programme in 2007 at its Hillendale mine operation with 31 permanent employees participating. Twenty-four went on to ABET level 2 English literacy and, in 2008, 13 ABET learners from ECMP started English literacy level 1. In September, 23 permanent employees received English literacy level-2 certificates.
Functionally literate and numerate   Yes/no  
What percentage of staff has been given the opportunity to be functionally literate and numerate?   All staff  
Do you have classrooms for literacy and numeracy training?   Yes  
Do you have full-time employed staff to conduct training?   Yes  
Do you provide training during work hours?   Yes  
What incentives are there for employees to participate in these learning programmes   Learner  
grant  
   
Functionally literate and numerate   Number  
of people  
Total staff count   11 180  
Number of employees below ABET Level 3   2 236  
Number of employees on ABET Level 3   345  
Number of employees above ABET Level 3   8 599  

Labour relations

Almost 70% of Exxaro’s employees are represented by affiliated unions, predominantly National Union of Mineworkers (NUM) (55%), and Solidarity (9,8%). Other recognised unions are Mineworkers Union of Namibia (MUN), National Union of Metalworkers in South Africa (NUMSA), and United Association of South Africa (UASA).

Negotiations for improved wages and conditions of employment are conducted in various in-house forums and through the Chamber of Mines.

Exxaro has a disciplinary code that is used when necessary. The code is based on the principle of fairness as required by labour law. Supervisors have the skill to implement the code.

Employees in the bargaining unit receive several benefits beyond minimum legislative requirements (below).

Employee benefits

Through collective bargaining, full-time employees receive a range of benefits — many exceeding minimum stipulations — including:
  • Retirement fund membership subsidised by the employer
  • Medical aid membership subsidised by the employer
  • Housing allowance/company accommodation
  • Guaranteed annual holiday bonuses/13th cheque for bargaining unit employees
  • Travel allowances
  • Annual leave, sick leave, maternity leave, family responsibility leave
  • On-target bonuses, share appreciation rights schemes, standby and call outs, etc as well as payment for overtime worked.

Retirement and other benefits for all permanent employees are provided by independent defined contribution funds. The employer contribution to retirement funds in the group ranges from 10% to 18% of employee pensionable earnings, and is expensed as it occurs. All retirement funds are governed by the South African Pension Funds Act (1956), with no members on defined-benefit plans.

In October 2009, employees participating in Exxaro’s Mpower (empowerment participation scheme holding around 3% of Exxaro’s shares to broaden share participation among workers) received their fifth dividend payment. Since inception in November 2006, each of the beneficiaries of the Mpower scheme (9 289 at 31 December 2009) received over R3 900 in dividends. After group-wide elections, the first representative board of trustees took office in May 2009.

The group continues to focus on home ownership. To comply with the mining charter and our own business needs, a new long-term housing strategy was developed in 2008.

During the year, the group introduced a five-year subsidy for first-time homebuyers who are permanent employees. This was particularly welcome given the unprecedented scarcity of bank mortgage finance in 2009. Linked to the bank lending rate, the subsidy reduces each year as bond repayments become more affordable. To date, 194 employees have benefited from this subsidy to make home-ownership more affordable.

While Exxaro’s housing policy focuses on home ownership, employees receive a housing or living-out allowance to assist them in obtaining accommodation. Land has been made available for housing at Grootegeluk where some 800 units will be built over the next three years.

  Number of
employees
  2009   2008  
Home owners (bought company property)  929   822  
Hostels   594   389  
Single quarters   1 343   1 336  
Rental and other   8 314   7 588  
Total   11 180   10 135  

Exxaro provides meals at two operations where the quality and nutritional value are determined by a dietician. Qualified staff continually monitor adherence to contractual obligations. Employees have accessible mechanisms to engage both management and suppliers on food issues.

Employee wellness

External service providers manage employee assistance programmes for our people and their dependants at all business units. These have been particularly successful in ensuring a fast and efficient response to employees suffering trauma because of work-related and community-based events.

Diversity and equal opportunity

When we created Exxaro — the largest black-owned mining company in the country — we stated our intention of being the best example of how South African companies could and should be run. We made a commitment to our people to ensure their progress and to build up the skills base we needed to fulfil our vision. Employment equity is just one of the ways in which we are doing this.

While employment equity is certainly a legal issue, with strict targets imposed by both the mining charter and the government’s black economic empowerment codes, for Exxaro it is also a moral imperative.

At the heart of our employment equity strategy lie detailed plans developed by each business unit in consultation with its employees and unions. These are updated and progress reported to the board quarterly and government annually.

By following these plans, each unit ensures that recruitment and skills development are conducted responsibly, promoting transformation without affecting existing positions in the company. Each business unit has a formally assigned senior manager for employment equity, and an employment equity forum that is responsible for ensuring appropriate plans are developed, executed, monitored and communicated to employees.

Pleasingly, and despite the ongoing shortage of skills, Exxaro exceeded 2009 mining charter targets well ahead of time in both the management and women in core mining categories. This reflects the constant focus on internal promotion, individual development and skills retention in our aim to be a preferred employer. The group’s performance against the mining charter’s revised targets appears on page 126.

Women in mining initiatives

Attracting women to work in the group’s core business remains a focus area, despite Exxaro already exceeding mining charter targets. A committee representing all the group’s business units is mandated to implement these initiatives.

Exxaro operations introduced 220 girls to the world of mining in 2009 as part of the Take a Girl Child to Work initiative.

Human rights

As a responsible corporate citizen, Exxaro largely complies with labour legislation in South Africa and with International Labour Organisation guidelines. As a signatory to the United Nations Global Compact, the group encourages freedom of association and collective bargaining, ensures child labour is not tolerated and that forced or compulsory labour is not practised.

Induction programmes ensure employees are educated about human rights. Policies on discrimination, harassment and racism are in place, as are structures to protect employees’ human rights in the workplace. All security personnel are fully trained after appointment on human rights aspects relevant to each operation. Refresher courses also cover human rights issues.


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