Employment

Persisting global skills shortages, particularly in the resources sector and in southern Africa, contributed to continued high turnover levels, although there has been some improvement on the prior year owing to the implementation of strategic retention programmes. This high turnover trend is likely to abate somewhat with the global economic downturn and following the implementation of the revised system for the management of people across the group. In 2008, the level of turnover amongst permanent employees within the group was 8%.

Turnover levels for all operations, of all employees and women are reported in the table below. Separation by age group cannot be reported as it is not specifically recorded by the company for management purposes as it is not deemed to be a material indicator.

AngloGold Ashanti is committed to providing employment in the countries and regions in which it operates and, in the event of any restructuring, the preservation of jobs is paramount. See the case study: Preserving jobs, at Great Noligwa Mine

Turnover levels (%)

	2008 All employees	Women	2007 All employees
Corporate
Corporate office	19	7	18
Argentina
Cerro Vanguardia	20	2	16
Australia			21.5*
Perth office	30	8
Sunrise Dam	25	9
Exploration	23	7
Brazil
Brasil
Mineração	8	10	8
Serra Grande	12	16	8
Ghana
Iduapriem	7	0.3	3.4
Obuasi	4	0.2	10
Guinea
Siguiri	4	0.06	2.5
Mali
Morila	9	0	6
Sadiola and Yatela	5	0.18	3.4
Namibia
Navachab	6	2	4.4
South Africa
TauTona	19	1	11
Mponeng and Savuka	10	1	11
Tau Lekoa	11	1	11
Kopanang	14	1	10
Great Noligwa	19	0.3	12
Moab Khotsong	9	1	10
Tanzania
Geita	13	0.6	15
USA
CC&V	15	3.67	15
Group	8	0.5	10.5

* Australia was not reported separately for 2007

Given the global economic circumstances prevailing at the end of 2008, it is likely that some operational restructuring will ensue in 2009, which may result in the reduction of a number of jobs. Where possible, this will be through a process of natural attrition or voluntary separations. As at the end of December 2008, the following restructuring is planned for 2009:

• further reduction in production at Great Noligwa that is likely to result in the loss of about 283 jobs;
• replacement of contractor labour with permanent employees at Savuka; and
• increase in mining jobs (by about 500) as mine production builds up and a decrease in contractor jobs by about 400 as mine labour replaces contractor employees at Moab Khotsong.

Fundamental human rights conventions

Certain human rights conventions, including those relating to freedom of association and collective bargaining, are entrenched in South African legislation and the constitution, as well as in laws and regulations in Argentina, Brazil, Australia, Namibia, Tanzania, Mali and the United States. In addition, AngloGold Ashanti is committed to upholding the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work. Specifically the company seeks to ensure the implementation of fair employment practices by prohibiting forced, compulsory or child labour and implementing these practices through country, operation and shaft level recognition and collective bargaining agreements, including non-discrimination agreements and codes.

No breaches of the ILO declaration were alleged, nor were any charges brought against the company in connection with these during the year. No operations are deemed to be at risk in this regard.

Policies are in place at all operations to protect employees from prejudice and, in some countries, to promote the advancement of certain groups of employees. Discrimination, including racial and sexual harassment and discrimination against the disabled, is prohibited in terms of the company’s business principles, as well as by legislation in most of the countries where our operations are situated. In many of the countries in Africa, South America and Australia in particular, the rights and promotion of indigenous peoples, of the historically disadvantaged and of women are provided for in legislation and adopted and followed by the company. No cases of discrimination were alleged or reported during the year. (See section on diversity and on women in mining below).

See the section on Human Rights of this report.

Freedom of association and collective bargaining

AngloGold Ashanti recognises that freedom of association is a fundamental right of all employees and contractors, and adheres to collective bargaining agreements with due regard to the relevant legislation of a particular country. See case study: Reviewing our approach to industrial relations.

Good progress was made with the implementation of new collective bargaining processes and structures in Ghana. See case study: Update on collective bargaining Ghana.

In total, around 86% of all employees are either members of a union or catered for through collective bargaining agreements. The exceptions to the collective bargaining arrangements are the United States and Australia, where employees are not members of unions, but where a high degree of employee participation is encouraged. This is common practice in both countries. However, new workplace relations legislation currently being drafted in Australia will encourage the engagement between management and unions through collective bargaining agreements, provided regulatory minimum entitlements are met. Further details on the level of union participation and the unions involved are indicated in the Country Reports.

Union and collective bargaining participation in South Africa, where the group has the most number of employees, is 97%. This includes those that participate in terms of an agency shop agreement, which exists across the lower bargaining unit at the South African operations. This industry-wide agreement provides for the contribution by non-union members of 0.75% of basic monthly pay to a fund which is used to address the work and social needs of that bargaining group and has been negotiated because union members pay 1% of their basic pay as union dues. The outcome of wage negotiations with the unions applies to all employees within that bargaining unit, whether they are union members or not. Excluding the agency shop agreement (that is direct union membership), union participation in South Africa is 87%.

There were no significant disputes or strikes at any of the group’s operations during the year. Days and shifts lost owing to industrial action are described more fully below.

Mali

• A single eight-hour shift was lost by the mining contractor at Sadiola and Yatela on 21 October 2008 when the union (SECNAMI) wanted a change in the shift roster system. This was subsequently agreed to by management and the issue was resolved on 31 October 2008.

South Africa

• All business units were affected by the Congress of South African Unions (COSATU) legal protest and strike action on 23 July 2008 and 6 August 2008 respectively. The protest and strike action was in response to the Eskom power crisis. Attendance numbers were slightly affected on 23 July 2008. On the evening of 5 August and on 6 August, a total stayaway affected all operations.

Key negotiations or agreements in 2008 are set out below.

Namibia

• Substantive wage agreements were concluded in December 2008 regulating wage and conditions of employment for 2009-10.

Mali

• Wages (January 2008) at Morila, and at Sadiola and Yatela.

Ghana

• Salary and wage review (January 2008), 2008 bonus scheme (January 2008) and senior staff duty allowance (January 2008) at Iduapriem.
• Wages and salaries (June 2008) and duty allowance (August 2008) at Obuasi in Ghana.

Tanzania

• Remuneration policy and overtime policy (June 2008) at Geita.

Brazil

• Salary adjustment for employees to compensate for higher than anticipated levels of inflation (August 2008).

Guinea

• Wage review (January 2008) at Siguiri.

South Africa

• Two year wage agreement concluded in 2007

Benefits and conditions of service

AngloGold Ashanti aspires to be an employer of choice in the regions and countries in which it operates, offering attractive and fair remuneration practices and conditions of service.

AngloGold Ashanti’s employee remuneration is above the legislated minimum wage requirements in the various states where it operates.

• In the South African mining sector, wages and conditions of service are competitive. In respect of certain categories of employees, wages and conditions of service are negotiated through a collective bargaining process, and compare favourably with minimum wages set by the statutory determinations and competitors.
• In Ghana, minimum wages are set by the state for government employees. AngloGold Ashanti’s operations exceed these requirements and, in addition, provide benefits such as a provident fund, which is not provided for in legislation but was negotiated through the collective bargaining process.
• In Tanzania, a minimum wage has been legislated for the mining industry. This is well above other legislated minimum wages in the country as part of that government’s intention that mineworkers should benefit from the mineral wealth of the country.

Generally, conditions of service, including minimum notice periods and negotiation practices with employees and employee representatives are guided by country legislation, collective bargaining agreements and individual contracts of employment. It follows therefore that these vary from region to region.  See the Country and Operational Reports for further detail.

AngloGold Ashanti provides extensive benefits to employees, beyond those which are legally mandated. These benefits vary from operation to operation and between job categories and are dictated by local and international norms and requirements and the company’s ability to attract and retain personnel.

As a minimum, AngloGold Ashanti provides access to primary health care for all employees as a basic condition of service. Increasingly, health care benefits are provided to dependants as well. Details on the specific housing and health care benefits that are provided to employees at the various operations may be found in the Country Reports.

Additional benefits include, but are not limited to, maternity and paternity leave, retirement funds, housing allowances, home ownership and accommodation, life assurance, death and disability cover, educational/study assistance, and share ownership and share incentives.

For some employees the provision of housing or accommodation is a benefit, while for others who are employed at mines in remote locations (such as Argentina and Australia) it is a condition of service. For a significant proportion of South African employees who are drawn from neighbouring countries or from rural areas in South Africa, the provision of accommodation is both historical and necessary. Many of these employees choose not to relocate their families to their place of employment and live in company-provided residences. (See box below and overleaf).

Formal performance and career development review processes are in place at all operations, for either individuals or teams. In South Africa, where most of the group’s employees are based, a formal skills development plan is in place for all disciplines at all operations in line with the company’s Social and Labour Plans (SLPs). Skills development plans are reviewed and updated annually.

SLPs are provided for by South African legislation. In AngloGold Ashanti’s case, they are submissions made in respect of the company’s two regions of operation (West Wits and Vaal River), and make certain undertakings in respect of training and development, employment equity and the management of human resources. SLPs focus particularly on redressing the imbalances of the previous socio-economic environment with regard to historically disadvantaged South Africans (HDSAs). These submissions were made as part of the company’s application for the conversion of its mineral rights under the Mineral and Petroleum Resources Development Act (MPRDA) and were accepted by government. Progress made against these plans is reported annually to the Department of Minerals and Energy (DME). See the Social and Labour Plan Reports for the West Wits (PDF - 357KB) and Vaal River (PDF - 470KB) regions.

Training and development of people

A great deal of emphasis is placed on the training and development of people. Training and development initiatives at all levels – from Adult Basic Education and Training (ABET) and skills development, to graduate training and executive development programmes – underpin the group’s system for the management of people and will ensure that the group has the requisite skills in the future.

Direct total training and development expenditure in 2008 amounted to $35 million (2007: $31.4 million), an increase of 12% on the prior year. Data related to the average hours of training per employee is not collated across the group as this is not deemed a meaningful measure given the number of people involved, the significant differences in skills sets and the diversity of operations. Further details on training and development initiatives may be found in the Country Reports.

It is AngloGold Ashanti’s goal that all employees should become functionally literate and numerate or, at the very least, have access to literacy training. For more than a decade the group has offered ABET to employees at its South African operations and this was introduced in Namibia in 2007. All employees at the operations in Australia and the United States are literate, as are most employees in Argentina, Brazil and Ghana. See box below for further information, as well as the Country Reports and the Social and Labour Plan Reports (available at www.aga-reports.com).

The group’s Management Development Programme (MDP) and Intermediate Management Development Programme (IMDP) continued during the year, with 27 and 34 employees, respectively, participating at a cost to the company of around $474,131. In 2007, 33 participants attended each programme at a combined cost of $490,000. Increasingly, participants are drawn from operations around the world and this is again providing a valuable forum for diversity management and training.

A Southern African Division Programme was implemented in 2007 to give more managers exposure to managerial development. The Managerial Mastery Programme (MMP), an extension of the MDP and IMDP, was attended by 21 participants in 2008 (2007: 22) at a cost of approximately $108,713.

Training for life (also called portable skills training in South Africa) is aimed at delivering training and development in skills that are widely applicable and transferable, providing employees and ex-employees with the skills to remain economically active, whether through formal employment or self-employment, when they are no longer employed by the company. This training is also given in preparation for career endings, whether as a result of ill health, retrenchment, downscaling or mine closure. Portable skills training was provided to 1,177 employees and community members in South Africa during the year (2007: 750). Training is provided on both a part-time and full-time basis and includes training for bricklaying, welding and wiring, forklifting and plumbing.

Bursaries and scholarships for employees, their dependants and community members are offered at all operations. Emphasis is placed, where possible, on giving scholarships and bursaries to candidates from local communities first, and then to people from the region in which the operation is located.

Bursaries and scholarships offered

	2008	2007
Argentina	66	48
Cerro Vanguardia	66	48
Australia	10	6
Perth office (incorporating)
Sunrise Dam
Exploration	10	6
Brazil	107	198
Brasil Mineração	41	91
Serra Grande	66	107
Colombia	12	0
Exploration	12	0
DRC	1	1
Exploration	1	1
Ghana	17	24
Iduapriem	12	18
Obuasi*	5	6
Guinea	4	0
Siguiri	4	0
Mali	20	20
Morila	10	10
Sadiola and Yatela	10	10
Namibia	6	5
Navachab	6	5
South Africa	62	50
South African operations	61	49
Corporate office	1	1
Tanzania	3	3
Geita	3	3
USA	15	13
CC&V	15	13

Diversity and equal opportunity

AngloGold Ashanti recognises and promotes the diversity of the people within its host countries and within the company. It is cognisant of requirements in certain countries to address past and institutionalised inequities, while affording all employees the opportunity to develop further in their chosen careers.

In South Africa, the employment of HDSAs is promoted and regulated by legislation, specifically the Employment Equity Act, the MPRDA and the Mining Charter. Employment equity targets and performance are set and monitored by a board subcommittee, and are reported annually to the South African Department of Labour and the Department of Mineral and Energy (DME).

Good progress continued to be made with the advancement of HDSAs in 2008. At the end of December, HDSAs made up 30% of the board (33% in 2007); HDSAs made up 36% of management (2007: 30%). (Managerial employees are defined as those in supervisory and management roles in Paterson job grades D-Lower and above).

See case study on: Grappling with South Africa’s employment equity challenge.

In South Africa, historical recruitment practices have also created a reliance on the employment of people from neighbouring countries, primarily Lesotho, Mozambique, Botswana and Swaziland. These practices have resulted in a dependence on the part of these countries on the South African mining industry both indirectly – to provide jobs and support for large proportions of their economically active populations and their dependants –and directly through remittances that are provided. The Mining Charter requires that South African mining companies do not discriminate against foreign nationals in their employment practices. At the end of 2008, in line with the reporting required by the Mining Charter on this aspect, some 31.19% of employees in South Africa were drawn from outside the borders of the country (2007: 34.7%). This number has been slowly decreasing over the years.

Elsewhere in Africa, the employment of locals and the replacement of expatriate employees at senior levels is a priority which is supported by skills transfer programmes and the appointment of understudies. Frequently this, too, is regulated by legislation. Localisation plans and programmes are in place in Ghana, Guinea, Mali, Namibia and Tanzania to limit the placement of expatriate employees and the training and development of the indigenous population. In some countries, such as Namibia, work permits for expatriates are only renewed if the appropriate level of progress has been made with the localisation programmes.

Given the increase in mining activity in East, West and Central Africa in recent years, the shortage of technical skills in these regions and the finite time horizon of mining and exploration activities, this is a challenging target area.

Expatriate employees (%)

	2008	2007
Brasil Mineração	0.1%	n/a*
Iduapriem	0.7%	0.1
Obuasi	0.8%	0.1
Accra office	14%	n/a*
Siguiri	4.98%	4.0
Morila	5%	7.0
Colombia	4.3%	n/a*
Sadiola and Yatela	1.89%	n/a**
Exploration – DRC	5.4%	n/a*
Navachab	1.4%	1.7
Geita	6.2%	5.1

^* Brasil Mineração, Accra office, Colombia and DRC regions were not reported in 2007

^** Sadiola 2007: 4.7%, Yatela 2007: 5.7%. These were reported separately in 2007

The promotion of diversity and specific groups of employees is also regulated in:

• Namibia, through the Affirmative Action Act;
• Mali, through equal opportunity employment regulations within labour legislation;
• Ghana, through the Labour Act and Minerals and Mining Act and immigration legislation that covers the employment of women, the disabled and expatriate employees;
• Australia, through the commonwealth, state and federal legislation dealing with equal opportunities for women, workplace relations, human rights, racial discrimination and disability discrimination;
• Brazil, specifically related to the disabled;
• Guinea, where regulations exist in respect of gender and expatriates; and
• Colombia, where the level of gender representation is prescribed by law within the public sector; expatriate levels and regulated by law in all sectors.

Women in mining

Across the world, women have typically been excluded from participating in mining operations, through legislative and customary constraints. AngloGold Ashanti recognises that women have an equal right to participate in mining as a career and has put plans in place in those countries where it has been necessary to ensure the attraction, retention, training, development and promotion of women. In South Africa and Australia, such programmes and reporting on targets and progress are required by law.

It is the company’s policy to ensure parity between the wages and conditions of service for men and women. Currently, however, the number of women in mining is still relatively low and tends to be limited to administrative and advisory positions. The ratio between the basic salary of men to women by employment category is therefore not collated.

Progress on the programmes implemented can be reported for the year under review.

Across the group, women made up 14% of top senior and middle management. In 2007, this figure was reported under top and senior management; and professional staff the percentages were 9%, 13% and 9%, respectively. This equated to 18.60% in South Africa, 10.7% in Brazil and 31% in Australia. Women make up 9% of all permanent employees (2007:8.6%). This figure was 9.75% in South Africa, 7% in Brazil and 20% in Australia. In South Africa, the total percentage of women within the mining discipline was 4.14% (961 women out of a total mining workforce of 23,186). In South Africa, the definition of top senior and middle management relates to Paterson Bands F, E and D, respectively.

Programmes are in place to promote women in mining, as set out below.

• Proactive programmes are in place in South Africa to attract, train, develop and retain women in mining. See the box below for further details, or the Country Reports or the Social and Labour Plan Reports for the West Wits (PDF - 357KB) and Vaal River (PDF - 470KB) regions.
• While Argentinian legislation requires that all employees and prospective employees are treated equally, there is no specific requirement to develop women in mining. Nonetheless, Cerro Vanguardia has taken the initiative in attracting women to the company. However, this process is hampered by high turnover levels attributed to the long distance between the mine and at place at which employees live and the long shift hours which deters mothers from working on-mine.
• Efforts to increase the focus on developing women in mining have been made and plans communicated to all operations. Six women are operating equipment at Serra Grande, and similarly, eight women at Brasil Mineração.

Women in management

	% Women in the company	% Women in management
Corporate office
Corporate office	37	34
Argentina
Cerro Vanguardia	7	16
Australia
Perth office	40	50.0
Sunrise Dam	20	23
Tropicana	24.1	20.0
Brazil
AGA Mineração	7.6	14.1
Serra Grande	3.5	0
Colombia
Exploration	35.4	26.9
DRC
Exploration	12.5	9
Ghana
Iduapriem	5	0
Obuasi	3.3	0
Guinea
Siguiri	7	7.9
Mali
Morila	4	3
Sadiola and Yatela	2.4	0
South Africa
Tau Lekoa	6.7	3.0
TauTona	4.1	5.6
Kopanang	6.8	5.4
Mponeng	6.5	16.7
Great Noligwa	3.7	2.9
Savuka	6.5	18.2
Namibia
Navachab	9.2	12
Tanzania
Geita	7	9
USA
CC&V	15	1
Group	9	14