Employment

AngloGold Ashanti’s philosophy as an employer includes a strong belief in employees’ right to freedom of association, right to organise and a robust collective bargaining process, in line with its commitment to upholding basic human and labour rights. These of course find expression within a country’s specific laws, customs and practices.

In South Africa, this approach has developed over many years of interaction with organised labour and the same approach is also beginning to bear fruit in Ghana, where the company employs the largest number of people after South Africa (5,114 in December 2008). Ghana has had an active trade union sector for many years, born of that country’s transition to independence. AngloGold Ashanti has two operations in Ghana: Obuasi and Iduapriem (4,145 and 725 permanent employees respectively).

As reported in last year’s report to society, the creation of AngloGold Ashanti, and its consequent assumption of ownership of the company’s operations in Ghana, necessarily had an impact on the previous, long-established relationship between management and labour at the former Ashanti Goldfields. The 2007 wage negotiations, which were eventually resolved through compulsory arbitration, illustrated the extent of the challenge in building an appropriate relationship model with the union. See case study: Reviewing our approach to industrial relations.

At Obuasi, 4,145 employees (94% of the total complement of 4,389) are unionised. This represents 97% of junior staff (3,488 out of a total of 3,610) and 92% of senior staff (657 employees).

At Iduapriem, the total complement numbers 725, with 517 employees unionised. These are all employed in the junior staff category, with no members of management or senior staff having joined a union. Two unions are represented, the Ghana Mineworkers’ Union (GMWU) and the General Manufacturing and Metal Workers’ Union. The latter is a minority union affiliated to the Ghana Federation of Labour, while the other union involved is affiliated to the Trade Union Congress of Ghana.

For the 2008 wage negotiation process, the Obuasi senior staff who had organised themselves and obtained a bargaining certificate under the Professional and Managerial Staff Union (PMSU, which is affiliated to the GMWU) joined the negotiations for the first time.

2008 WAGE NEGOTIATIONS – A NEW MODEL

During 2008, a concerted effort was put in place to achieve an improved management-labour relationship. In this respect, the company pursued its relationship model of labour relations through several engagements with both unions.

As far as demands for improvements or changes to substantive conditions were concerned, the company (as it does in other jurisdictions, notably South Africa) pursued the notion of strategic interest bargaining. This involves a forward looking and non-reactive approach in negotiations having regard to both labour and the operations’ interests going forward.

Communication with the unions was also undertaken on a more structured basis in 2008. “At Obuasi, we set up feedback sessions for the members of both unions by the Vice President and other senior management staff regarding the company’s quarterly financial results,” says Senior Human Resources Manager (Ghana) Gops Modise. Organised labour, adds Modise, has also been exposed to the company’s Business Improvement Process initiative.

This improved communication climate, and the business understanding it fostered, bore fruit in the more harmonious wage negotiation process in 2008. Negotiations began on 22 April 2008 and were completed on 12 June, while agreement regarding the conditions of service for the PMSU was reached on 18 August. The settlement was reached without the need for third party intervention.

“The PMSU conditions of service negotiations essentially recaptured the existing senior staff conditions of service,” says Modise. “One major difference was the introduction of a duty allowance of an average of 15% of basic pay to cater for overtime worked.”

The collective bargaining agreement for the Junior Staff Union is due for review at the end April, and the 2009 wage negotiations will commence towards the end of the first quarter.

Plans are also in place for an employee share ownership plan to be implemented during the year.