SA Coal Mining Industry Scarce Skills Shortage

Paul Schutte

Jan Hanekom

Jack Mashibini

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Job Applicants

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Contents

• Request for study• Research methodology• Situation within the coal mining industry• The future• Recommendations

Request for Study

• SACMA and SACHRA initiative– Current situation– The flow of personnel– Assessment of future requirements– Potential gap– Feedback

Contents

• The problem statement• Research methodology• Situation within the coal mining industry• The future• Recommendations

Research Methodology

• Existing literature• Focus on South African Coal Mining Industry• Survey by means of questionnaire• Presentation to SACHRA• Pilot questionnaire• Confidentiality was guaranteed to all participants

About the questionnaire

• The questionnaire had 5 categories – General data– Skills categories– Growth– Resignations and appointments– Training

Feedback receivedCompany No. of

Mines participated

Total no. of employees for

the group

Provided group training

Sasol Mining 5 / 5 Yes Yes

Exxaro 3 / 7 Yes Yes

Anglo Coal 2 / 9 Yes Yes

Xstrata Coal 4 / 13 Yes Yes

BHP Billiton 0 / 5 Yes Yes

• 30 679 permanent employees and 23 891 temporary workers and full time contractors

• Data represented 42% of the total labour force• 50% of sample was from Sasol Mining• 42% was linearly extrapolated to 100%

Feedback received (Cont…)

Contents

• The problem statement• Research methodology• Situation within the coal mining industry• The future• Recommendations

Situation within the coal mining industry

• Scarce skills make up 28% of the permanent labour force

• Machine operators and miners not covered

Scarce skills categories

Certificated and Senior Engineers

7.3%

Engineers and Technicians

11.1%

Draught Persons0.4%

Artisans69.6%

Management and Production

9.6%

Geologists0.7%

Surveyors1.1%

Environmental Management Specialists

0.3%

Scarce Skills

Chief Foremen3.6% Foreman -

Maintenance9.9%

Technical Planner0.3%

Diesel Mechanic / Diesel Fitter

7.8%

Electricians19.7%

Electro Mechanical

Artisans24.0%

Fitters / Fitter and Turners14.3%

Boilermakers7.2%

Electronic (Control and

Instrumentation)0.7%

Other12.4%

Artisan Disciplines

Engineering disciplinesManager

Engineering Services

3% Section Engineer5%

Mining23%

Metallurgical1%

Mechanical6%

Civil0%Electrical

8%Electronic (Control

and Instrumentation)

1%

Industrial 1%

Planning/Project Engineer

27%

Technician / Chief Technician

4%

Other21%

• ± 8% positions were vacant in the scarce skills categories

• 15,1% of the employees in the scarce skills categories resigned during the previous 12 months

• 17,2% new appointments were made• The movement was mainly within the coal

mining industry

Situation in Sept 2007

Main reasons for resignations

Remuneration Package

66%

Limited scope for career growth

31%

Unsatisfactory relationship with

supervisor3%

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• The problem statement• Research methodology• Current situation within the coal mining industry• The future• Recommendations

Contents

The future…

• SA economy grows by approximately 4 - 6% per year

• 50% of employees are 45 yrs and older (estimation)

• Smaller companies do not have training programs – estimated 3% loss

• The coal mining industry will need to appoint 14% more of its current workforce per annum

Portions of 14% per year to be appointed from training

105%

0 1

92%

100%Vacancies

Year

14% per year to be appointed from training

Retirements

Loss to other companies

3%

5% growth3% to close gap (in 4 years)

Demand

Currently employed

3%6%

Future demand for Scarce Skills

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

1 2 3 4 5 6 7 8 9 10 11

Year

% o

f D

em

an

d in

Ye

ar

1

Demand

Projected with currenttraining

Wanted

17%

Supply and demand of trainees

14 14 14 14 14 14

6.6

3

9.3

6.6

3.24.1

0

2

4

6

8

10

12

14

16

Eng

inee

rsan

dT

echn

icia

ns

Dra

ught

Per

sons

Art

isan

s

Geo

logi

sts

Sur

veyo

rs

Env

ironm

enta

lM

anag

emen

tS

peci

alis

ts

% T

rain

ees

per

Yea

r

IndustryDemand

Training(Industry)

Supply and demand of engineering skills

0

10

20

30

40

50

60M

inin

g

Meta

llurg

ical

Mechanic

al

Ele

ctr

ical

Ele

ctr

onic

(Contr

ol and

Instr

um

enta

tion)

Industr

ial

% B

urs

ars

per

Year Demand

Training

Supply and demand of artisan skills

0

5

10

15

20

25

30

35D

iese

l M

ech

an

ic

/ D

iese

l F

itte

r

Ele

ctr

icia

ns

Ele

ctr

o

Me

ch

an

ica

l

Art

isa

ns

Fitte

rs / F

itte

r

an

d T

urn

ers

Bo

ile

rma

ke

rs

Ele

ctr

on

ic

(Co

ntr

ol a

nd

Instr

um

en

tatio

n)

% T

rain

ee

s p

er

Ye

ar

Demand

Training

• The problem statement• Research methodology• Situation within the coal mining industry• The future• Recommendations

Contents

Recommendations

• All mining houses must investigate their future need vs. growth

• Train existing employees for scarce skills categories where potential exists

• More serious mentorship• Recruit previous employees who resigned• Coal Mining industry training forum • Retired employees be contracted• Other factors affecting scarce skills problem to

be addressed in further studies

Conclusion

• There is a growing demand for coal!• Scarce skills make up 28% permanent labour

force• Approximately 8% vacancies are difficult to fill• The Coal Mining Industry must cooperate to

ensure that training programmes will provide in their future needs

• Not enough training is done!