COMMUNITY CONSTITUENCY

Presentation to the Third Mining Lekgotla

13 August 2014

Community Constituency Structure

• Community Constituency at NEDLAC consists of 6 national Apex membership- based organisations– Women’s National Coalition– South African Youth Council– South African National Apex Cooperative– Disabled People South Africa– South African National Civic Organisation– Financial Sector Campaigns Coalition

CC Objectives for Participation in the Lekgotla

• Social dialogue is critical for sustainable national development• The sector has faced critical challenges recently, both in respect of

national actors and internationally owned interests• We should agree on a process to forge an inclusive unified way

forward, based on tangible, transparent and enforceable proposals• Our presence here is not to legitimise some of the ills in the mining

industry• We should find lasting solutions to the mining sector problems• We need a sustainable productive sector and identify innovative

strategies to promote pro-active policies to absorb workers, build human capacity and work towards the social compact called for in the National Development Plan including a decent standard of living for all

SA Realities

• Economy built historically on Minerals Energy Complex, with a shrinking manufacturing and industrial sector which affects levels of decent jobs

• Historical exploitation of cheap Black labour, Bantustan ‘reserves’ to limit people’s ability to sustain themselves outside of labour agents

• Currently amongst highest levels of poverty, unemployment and inequality, and a growing number of millionaires and multi millionaires

Looking back to Look Forward –Broad-based Socio-economic Empowerment

Charter For The South African Mining Industry

PREAMBLE Recognising: The history of South Africa, which resulted in blacks, mining communities and women largely being excluded from participating in the mainstream of the economy, and the formal mining industry's stated intention to adopt a proactive strategy of change to foster and encourage black economic empowerment (BEE) and transformation at the tiers of ownership, management, skills development, employment equity, procurement and rural development…

Employment Equity (EE)

• Only 37% mining companies developed EE plans

• Only 26% mining companies complied with 10% of women participation in mining

• 83% mining companies have not identified talent pool, only 17% are in the process of fast tracking those identified for management positions

Employment Equity cont’d

• Mining companies are not complying with EE targets (on race and representations)

• The 9th EE report endorsed lack of compliance• White South Africans (male and female) occupy

top management positions and earn more than blacks regardless of experience and skills.

• Progress on employment equity remains minimal

Mine Community Development

• Are mining companies developing communities they operate in?

• There is no evidence of link between proposed and implemented community development projects

• There is a narrow empowerment approach of handpicked individuals

• What are mining companies doing about uplifting the communities they work in?

Housing And Living Conditions

• Is the housing and living conditions of mining meeting the set standards?

• Upgrading and conversion of hostels to family units?

• Assessment shows 26% mining companies have provided housing

• 29 % companies have improved existing standards of housing

The health burden legacy• Legions of ex-mine workers,

typically unemployed, poor, suffering from one or a combination of mine related diseases (TB, silicosis, HIV-AIDS and/or physical injuries), with a shortened life span, a poor quality of life, surviving on a government pension or grant (if SA) or, in the absence of a pension, with the support of his family.

Minister of Mineral Resources,Budget Vote, Parliament, 15 July 2014

• “..this means… that mineral and petroleum resources in SA are nationalised. Accordingly, my department issues mining licenses to harvest our mineral resources. We issue these with attendant conditions, which if not observed, expose the holder to possible revocation of the licence…”

CC wants to obtain, through an inclusive social dialogue platform, clear commitments from

Mines and Government on:

• Commitment to restoring the environment post mining

• Full information about levels of taxes and royalties paid to the SA government, rather than by MNCs to overseas countries and tax havens

• Beneficiation in employment -creating industries• Capped wage differentials and worker

representation on boards of holding companies

Continued

• Stringent enforcement of Labour and Social Pacts, or revocation of licences

• An inclusive participatory study on the impact of migrant labour (both internal and external) on communities and families and engagement on solutions with all affected people

• A projection of the impact of the anticipated increasing resort to mechanised operations, the expected job loss and plans for training of vulnerable workers and a commitment to incubating appropriate labour- absorbing sectors before the fact of retrenchment

• Career pathing and on-the-job training to advance, for instance, from rock driller to management.

Final CC Recommendations• Create a platform for regular engagement between the mining houses,

Labour and government with leaders of the community constituency• There is a need for radical transformation of the minds and hearts of

mine owners and total management to start progressively embrace disability by:

• Creating employment opportunities within the mines and meet the 2% employment equity including at management level

• As part of social responsibility invest in adult basic education for mining communities including those who became disabled due to accidents in mines

• Ensure strict adherence by the mining houses in realizing the Procurement Accord implementation with a view to benefit community entrepreneurs, in particular, cooperatives, and enterprises led by women, people living with disabilities and youth.