Labour practice

Unions and collective bargaining

In line with the groups upholding of human rights conventions, freedom of association is encouraged and collective bargaining structures are recognised in those regions where these structures commonly exist. In practice, this means they exist at all operations except CC&V in the USA and Sunrise Dam in Australia.

Management/union relationships are governed by negotiated agreements in respect of most of the group's workforce, with 89% of the global workforce represented by recognised trade unions or catered for through collective bargaining processes.

In South Africa, 95% of all employees are either represented by unions or catered for by the agency shop agreement. (An agency shop agreement exists across the lower level bargaining unit within the company. This means that non-union members contribute 0.75% of their monthly basic pay to a human and industrial relations fund, whereas union members contribute 1% of their monthly basic pay to this cause.)

The four unions that are recognised are the National Union of Mineworkers (NUM), the United Associations of South Africa (UASA), Solidarity and the South African Equity Workers' Association (SAEWA).

Overall, in 2005, the group experienced seven industrial disputes: three in Mali; one in Guinea; two in South Africa; and one in Ghana.

In 2005, the South African mining industry experienced the first industry-wide strike since 1987. A four-day wage strike affecting all gold mine companies that are members of the Chamber of Mines of South Africa was launched on the evening of Sunday, 7 August 2005, by the NUM and Solidarity.

The basis for the strike was a wage dispute: the industry was offering increases of between 4.5% and 5% and the unions were demanding 12%. Other issues in dispute were: the quantum of employer contributions to the risk benefit within the Mineworkers’ Provident Fund (one of the industry retirement funds); improvements in accommodation subsidies; and formalising Christmas breaks.

On 11 August 2005, the strike ended, with three full production shifts having been lost. (See case study: The changing face of labour relations at the South African operations.)

At the Navachab mine in Namibia, a recognition agreement is in place with the Mineworkers Union of Namibia (MUN), and the union bargains with the company on behalf of all employees in the A2 to C1 Paterson bands. 76% of the workforce belongs to the MUN. An 18-month wage agreement was signed during the year, allowing for a 6.5% wage increase. A shift agreement (developed as part of the transition to owner-mining) was also signed in November 2005.

At the Sadiola and Yatela mines in Mali, all employees are represented by the Mining Industry Union (SECNAMI) and guided by the National Collective Convention. There are no specific recognition agreements at mine level at Sadiola and Yatela, while at Morila, where 100% of employees are represented through SECNAMI, an internal agreement provides for adaptation to the National Convention. In May 2005, agreement was reached with the union in respect of production bonus payments for Sadiola and Yatela (in which different parameters, namely safety, volumes and costs, all play a role).

There was no industrial action against AngloGold Ashanti at the Malian operations although the mining contractor at Morila, Somadex, experienced a strike which did not affect production at the mine. Agreements were negotiated and concluded in 2005 on a production bonus scheme and a water allowance scheme.

Agreement was reached on a range of issues as part of the collective bargaining processes at Siguiri in Guinea, including wages, family transport and accommodation benefits.

At Siguiri in 2005, a four-day wildcat strike related to wage demands prior to the start of the collective bargaining process, and was largely a result of local inflation. Four working days were lost. The strike was resolved through bargaining with union representatives.

New rates of pay were negotiated between the company and the Ghana Mineworkers’ Union in 2005.

In Brazil, annual negotiations on salaries and fringe benefits were negotiated in August 2005, while in Argentina, a four-year wage agreement was reached in April 2005.

AngloGold Ashanti has in place a variety of strategies and structures designed to promote participation at all levels within the company. These are developed and adapted regularly to meet operational requirements and changing circumstances.

Management and employee representatives meet both formally and informally at industry, company and operational level on a wide range of issues to share information and address matters of mutual interest.

AngloGold Ashanti is committed to creating workplaces free of harassment and unfair discrimination

Racial and sexual harassment and other forms of discrimination are prohibited by the company’s business principles as well as, usually, by legislation. Specific policies are in place at all AngloGold Ashanti's operations to protect the interests of employees.

In Australia, harassment and discrimination are regulated by stringent legislation. The company’s policies are available on the company intranet, and form part of the induction process for new employees. In addition, regular training is provided for employees. The Australian operations have to report progress on the advancement of women to government authorities on an annual basis.

The USA has a comprehensive legal regime that addresses discrimination. In line with this CC&V has developed an equal employment opportunity policy that prohibits discrimination on the basis of age, race, sexual orientation, colour, religion, national origin, marital status, disability, or any other status protected by law.

Harassment and unfair discrimination are covered in the Ghana region's handbook on corporate governance.

In South Africa, a sexual harassment policy was put in place in 2002. Sexual harassment is dealt with as a serious form of misconduct. A framework for diversity training has also been instituted.

As an international company, we face different challenges in different countries with regard to, for example, offering opportunities to citizens who may not have enjoyed equal opportunities in the past. In such cases, the company is committed to addressing the challenge in a manner appropriate to local circumstances

We will seek to understand the different cultural dynamics in host communities and adapt work practices to accommodate this where doing so is possible and compatible with the principles expressed in this document

The company will promote the development of a workforce that reflects the international and local diversity of the organisation

Employment equity forms a part of AngloGold Ashanti's broader human resources strategy which aims to promote an organisational culture that recognises the diversity of the societies within which the company operates, and which affords all employees the development opportunities that will enable them to achieve optimal levels of career development during their employment with the company. The group's employment equity and equal opportunity programme covers employee development and retention, strategies to counteract losses, career development and the promotion of mobility in an environment that is free of unfair discrimination.

Employment equity and/or equal opportunity targets are set and their achievement is monitored by a board sub-committee, the Employment Equity and Skills Development Committee.

In South Africa the employment of historically disadvantaged South Africans (HDSAs) remains a particular priority. Employment targets and achievements are reported annually to the South African Department of Labour, and reporting will also be provided in terms of the Mining Charter from 2007. Within South Africa, 33% of management comprises HDSAs. (The latter term includes citizens of countries within the South African Customs Union –SACU – and Mozambique, and all women. Managerial employees are defined by AngloGold Ashanti as those in supervisory and management roles in Paterson job grades C-Upper and above). Again, within South Africa, 22% of management comprises HDSAs if managerial employees are defined as those in management roles, in Paterson job grades D-Lower and above, as recognised by the Department of Minerals and Energy.

A Women in Mining Audit was undertaken during the year and the results of this are being used to shape the company’s plans to recruit, advance and retain women in the South Africa region. (See case study: Women in mining – uncovering the barriers.)

In Namibia, equal employment is provided for in the Employment Equity and Affirmative Action Act and Navachab mine’s recruitment policies are aligned with this legislation. A three-year plan has been submitted to the Office of the Equity Commissioner, detailing plans for the advancement of women in the company.

In many African countries, such as Mali, Namibia and Tanzania, legislation governs the recruitment of expatriate employees and promotes the localisation of the workforce. Policies are in place giving preference to the employment of local citizens. Plans to increase employment of local citizens and consequently reduce the number of expatriates (particularly at a management level) are in place at these operations and entail the identification and training of local citizens to replace expatriate staff once they have the requisite skills.

In Namibia, in particular, understudies have been identified for all positions held by non-Namibians, as is required by legislation. The understudy programme is aimed at groups rather than individuals, and is separate from the succession planning programme, which is aimed at individuals.

At Sadiola and Yatela, the training of local employees as successors is stipulated in the expatriate’s contract.

In Ghana, the use of expatriate labour is overseen by government and the state annually approves the company's expatriate quota. Expatriates are employed on a two-year contract during which local staff should be trained to take over their roles.

In terms of legislation in Guinea, priority should be given to Guinea nationals for all jobs. If a Guinea national cannot be found, an expatriate may be hired for a maximum of a two-year contract, renewable only once.

The company will provide all employees with the opportunity to participate in training that will improve their workplace competency

The company is committed to ensuring that every employee has the opportunity to become numerate and functionally literate in the language of the workplace

The company is committed to developing motivated, competent and experienced teams of employees through appropriate recruitment, retention and development initiatives. An emphasis is placed on the identification of potential talent, mentoring and personal development planning

AngloGold Ashanti’s philosophy encompasses a wide range of training initiatives. Four broad areas of training can be identified, namely Adult Basic Education and Training (ABET), vocational training, management training and training for life.

Adult Basic Education and Training

It is the company's policy to provide Adult Basic Education and Training (ABET) to ensure that all employees are able to become literate and numerate. (All employees at the Australian and USA operations are literate, as are most employees in Argentina, Brazil and Ghana.)

To be literate in a particular language, individuals should be able to use the language effectively to think, acquire knowledge, express their identity, feelings and ideas, and interact with others. To be numerate, an individual should be able to develop the ability and confidence to think numerically in order to interpret and critically analyse everyday situations and to solve problems.

The South African Mining Charter requires that all employees are offered the opportunity to become functionally literate and numerate. Currently, the company estimates that 80% of all Group 3 to 8 employees (about 75% of the total employed in the region) are literate and 45% have an ABET Level III and higher qualification.

In 2005, 3,892 employees participated in ABET training in South Africa at a cost to the company of R7 million. The company estimates that 72% of its employees in the South African region have an ABET qualification at ABET I Level and higher.

ABET training has been revised at Navachab in Nambia. The literacy rate is estimated at about 70% at Sadiola/Yatela in Mali following a survey undertaken in 2005. An ABET programme is planned for 2006. A community-based literacy and numeracy programme run under the auspices of an NGO, FANDEMA, is also open to employees. The literacy level at Morila is in the region of 78%. Although the mine does not run on-mine ABET programmes, it contributes to community-based literacy programmes and encourages employees to participate in these. Part-time adult literacy programmes are held on-mine at Siguiri.

Vocational training

While many of the group's employees come to the company with skills, the group also plays an active role in providing vocational training to those who are new to the company and those who wish to acquire new skills.

In South Africa, the provision of vocational training is an important part of the company’s Social and Labour Plan. AngloGold Ashanti is registered with the Mining and Minerals Sector Education and Training Authority (SETA) and the Mining Qualifications Authority (MQA). The region's centralised training venue provides accredited technical training in mining, mining services, engineering, metallurgy, and occupational environment safety and health. The centre is ISO 9002 certificated and accredited by the MQA.

Management training

The group's Talent Management Programme identifies and develops the group's management for the future. The programme has three areas of intervention, namely, the development, retention and monitoring of talent, and includes an annual talent review at executive level to monitor succession plans for talented employees.

The programme is aimed at both specific individuals, who have been identified through their career development plans, and groups of individuals with high potential, all of whom attend a range of management development programmes. Development plans form part of the greater performance management process within the group and are reviewed on a bi-annual basis.

The group runs an Executive Development Programme (EDP), a Management Development Programme (MDP) and an Intermediate Management Development Programme (IMDP), where younger employees with management potential are identified and given an opportunity to develop their careers.

Graduate training

Study assistance programmes for employees and non-employees are provided across the group to increase the skills pool available to AngloGold Ashanti.

• The South Africa region supports students in full-time studies at universities and universities of technology (formerly technikons). The bursary scheme is open to employees (in-service bursary scheme) as well as to the general public or so-called ‘off-the-street’ candidates. The company currently supports 91 students in the respective schemes studying towards tertiary qualifications. The split per discipline is as follows: mining: 33 (17 at universities of technology, 12 at university, 4 pre-tertiary); engineering (mechanical, heavy current electrical as well as process and instrumentation control): 27 (10 at universities of technology, 17 at university); metallurgy: 16 (5 at universities of technology, 11 at university); mineral reserve management (geology and survey): 14 (2 at universities of technology, 12 at university) and finance 1 (university of technology). In respect of the 91 students, 27 are employees while 64 are ‘off-the-street’ students. $1.7 million (R10.8 million) was spent on this programme in 2005.
• A bursary scheme was implemented in Mali in 2004. Ten top school leavers entered into graduate studies at the University of Pretoria, South Africa, in the disciplines of mining, engineering, metallurgy, environment and geology, following a language bridging programme at the Wits Technikon at the end of 2003. Five of these bursars participated in practical training at Sadiola and Yatela during their vacations.
• In the USA, the company offers scholarships to eligible employee dependants to assist them with their college education. Some $47,000 was spent on this programme in 2004. The company also provided tuition reimbursement to employees wishing to pursue a college degree in a discipline related to their position in the company at a cost to the company of some $40,000 during the year.
• In Ghana, company bursaries are granted to the dependants of employees who have gained admission to government-approved secondary and tertiary educational institutions.
• The Namibian bursary programme is open to all Namibians (not necessarily employees or their dependants). Bursaries are offered in the fields of geology, metallurgy chemical, mechanical and electrical engineering, human resources and accounting. Six bursaries were awarded by Navachab mine in 2005 at a cost to the company of N$400,000.
• Staff at the corporate office may participate in the company's part-time study assistance programme in respect of studies undertaken for the purposes of career development.

Training for life

Training for life equips employees or ex-employees with skills to ensure their continued employability or ability to be self-employed after employment by the company and in preparation for career endings, both as a result of ill health or as a result of mine closure.

The aim is to deliver training and development that are broadly applicable and transferable – a broad spectrum of programmes are made available ranging from basic literacy and numeracy learning, through to technical training as well as executive development at top business schools of international repute.

Employees who are retrenched are offered re-training in a skill that will assist them to remain economically active within their community. These skills include photography, engineering skills, candle-making, leather work etc.

Most mining operations in Australia have fly-in, fly-out arrangements owing to their remote location which leads to high staff turnovers. The company has a policy of maintaining a full development plan for all employees, not only in relation to their current roles but also for their potential roles and general employability, skills and competencies.

In Namibia, in terms of an agreement with the MUN, employees receive assistance (87.5% of fees) for the study of certain courses which may or may not be related to their job disciplines. 16 employees participated in this programme in 2005, at a cost to the company of N$100,000.

Remuneration systems will reward both individual and team effort in a meaningful way

The company seeks to remunerate employees fairly at both an individual and a team level. Remuneration levels are set taking into account the market as well as economic and inflation indicators. There is generally an annual review or annual negotiations with the representative unions in respect of those employees covered by collective bargaining agreements.

In South Africa, in particular, by far the majority of remuneration elements, although focused on the individual, are the result of collective bargaining between management and the representative unions. This has given rise to standard rates of pay for the majority of employees (non-supervisory employees, miners and artisans) rather than pay scales in which employees are remunerated for contributions, as in the case of management and officials. In addition to basic pay, various productivity and safety bonus schemes exist at most operations to both motivate and reward employees. As well as employee benefits that are legally mandated, the various regions offer healthcare benefits, pension and provident funds, company vehicles, housing, housing allowances or home ownership schemes, life assurance, tuition assistance, maternity benefits and subsidised canteens, among others.

While collective bargaining forms the basis of remuneration packages in Namibia, incentive bonuses and individual bonuses based on individual appraisals are also paid.

Guided by local circumstances, we shall continue to work together with stakeholders to ensure minimum standards for company-provided accommodation

Mining operations are frequently located in remote areas, drawing employees to the operations who would normally not be accommodated locally. The provision of company accommodation varies from region to region and is dependent on the availability of accommodation, the make-up of the workforce and the remoteness of the region. In major cities, such as Johannesburg, Denver and Perth, housing is readily available. The same applies to a number of the operations, such as at CC&V.

At Sunrise Dam, Australia, many employees operate on a fly-in, fly-out basis and accommodation is therefore provided during the period that employees are at work. At Cerro Vanguardia, in South America, many employees come from outside the immediate area of operation and houses have either been constructed by the company in nearby Puerto San Julian, or facilities have been erected at the mine site.

At the Sadiola and Yatela mines in Mali, senior staff are housed in company accommodation, while other staff are paid housing allowances. Loans for the purchase of land and housing are facilited in the Bamako area by the government. A housing loan scheme (for home ownership) is available for senior employees at Geita mine in Tanzania; the balance of employees receive a housing allowance. At Navachab in Namibia, 50% of employees are housed in company housing; the remainder of employees receive a housing allowance (for rental accommodation).

In South Africa, programmes are in place to encourage home ownership. Many employees are housed in company accommodation. Nutritional professionals oversee meals provided at staff accommodation, and regular health audits are conducted.

Historically, the South African mining industry has drawn a large percentage of its non-supervisory workforce from countries around South Africa – Lesotho, Mozambique, Swaziland and Botswana – as well as from rural areas within South Africa, such as the Eastern Cape, KwaZulu-Natal and Mpumalanga. These employees are accommodated on-mine in company hostels which comprise high-density rooms (housing between four and eight people per room), catering facilities and entertainment and recreational facilities. Their families, though, were not offered accommodation on-mine and remained in their countries or regions of origin.

Over the years, much effort has been focused on lowering room density, improving facilities (adding classrooms and gyms, for example), and transferring management of these hostels to combined union/management committees. More family units and facilities to accommodate visiting families for periods of time have also been constructed. At the same time, employees have been given the option of receiving allowances if they choose not to use the hostel facilities.

Hostel living is not ideal and not conducive to family life. However, even where employees have an option, large numbers remain on-mine without their families, choosing to reside either in company accommodation or elsewhere (and, if the latter is chosen, receiving an allowance). Many employees canvassed by the company choose to maintain their homes and families in their country or region of origin, and return to their homes at the end of their employment.

Plans are in place to renovate many of the hostels, with the emphasis on the longer-life operations, to decrease room density and provide residents with improved facilities and a greater degree of privacy.

Meals are provided to all employees who reside in hostels. Menus are reviewed by committees made up of management and unions, and the nutritional value is regularly monitored by an independent nutritionist. Hostel meals provide approximately 13,070 kilojoules per day, in excess of the minimum requirement of 10,700 per day.

The company ensures access to affordable healthcare for employees and where possible, for their families

Healthcare provision and acceptable levels of care are determined by, among other factors, the existing infrastructure in the areas in which the employees are located. For the distant communities with which AngloGold Ashanti is associated, the focus is on facilitating access to basic care.

AngloGold Health Service (AHS), a subsidiary of AngloGold Ashanti, operates in South Africa. The Vaal River and West Wits areas both have a central hospital providing secondary, and to some extent tertiary level care, surrounded by a network of peripheral primary health care and occupational health clinics. Healthcare activities which focus on care to employees in these areas and care to immediate dependants where appropriate, include preventative, occupational, and primary healthcare, hospital care and the management of trauma, injury on duty, and of HIV/AIDS and tuberculosis.

The two occupational health centres are staffed by two doctors and some 30 support healthcare practitioners each. The occupational health discipline performs the functions of screening prior to employment, evaluation of baseline health status, surveillance during employment for purposes of early detection of disease (particularly high-risk diseases commonly associated with the mining industry) and directing the management of diseases detected, including workplace and compensation initiatives required.

Both hospitals have about 300 beds each with, in addition to emergency rooms, operating theatres and multi-disciplinary intensive care units. Speciality disciplines include internal medicine; general surgery; orthopaedic surgery; ear, nose and throat surgery; radiology; paediatrics; obstetrics, and gynaecology. These clinical disciplines are supported by the allied clinical disciplines of physiotherapy, occupational therapy and clinical psychology, which together ensure comprehensive patient care and rehabilitation.

Access to healthcare is provided to all employees and, in certain circumstances, to their families. All employees not covered by formal medical scheme arrangements have access to healthcare at company facilities. The total cost to the company of AHS in 2005 was $44 million (R281 million).

• In Argentina and Brazil, healthcare is provided by an external service provider to employees and their families.
• The Malian operations have on-site mine clinics that are registered with the national health authorities and provide healthcare for all employees and registered dependants.
• In Tanzania healthcare is provided for employees and their dependants at an on-site mine clinic and local healthcare structures. The mine supports the upgrading of the facilities at the local Geita hospital and offers technical support to its staff. The facilities at the on-mine occupational health clinic were also recently upgraded.
• Employees at the Navachab mine in Namibia are members of a medical scheme to which the company contributes and employees are entitled to private healthcare as part of this scheme. An on-mine clinic provides primary healthcare and occupational heath services.
• Healthcare services are provided to the employee, his or her spouse and six dependants at the Edwin Cade Memorial Hospital at Obuasi in Ghana, while the Iduapriem and Bibiani mines in Ghana and the Siguiri mine in Guinea have a 24-hour clinic on site catering for employees and dependants. In Australia, healthcare is provided by the national government-run health system as well as employee-funded additional health insurance. On-site nurses are employed and other healthcare professionals are contracted to provide a level of care.
• In the USA, access to healthcare for employees is provided through a self-insured medical plan administered by a third party administrator.

We are committed to prompt and supportive action in response to any major health threats in the regions in which we operate

The primary regional health threats faced by employees and their families and communities are HIV/AIDS and malaria. (TB is dealt with under the Occupational Safety and Health section of the Report to Society 2005 while HIV/AIDS is dealt with under regional health threats.)