Employment

AngloGold Ashanti is committed to upholding basic human and labour rights as enshrined in various international instruments, which have as their core principles the right to organise, freedom of association and the right to collective bargaining. A commitment to these rights is also guaranteed by South African legislation and the constitution, as well as through the laws and regulation of most of the countries in which the company operates.

In South Africa, the company has developed a robust philosophy and approach through its many years of practical interaction with organised labour.

“A similarly effective process is in place in Namibia, where negotiations between Navachab Mine management and the Mineworkers’ Union of Namibia are well established,” says Abe Bardin, Head: Legal Services and Labour Relations. “Developments are also under way to extend this approach to Ghana. To date, challenges faced there include the fact that negotiations are handled on a mine-by-mine basis (at Obuasi Mine and at Iduapriem), and on a company-by-company roster (AngloGold Ashanti going first and others following) thus lacking a strategic, company-level dimension and industry approach. The Chamber of Mines in Ghana, which plays primarily an industry lobbying role, has limited involvement in industrial relations.” See case study: Collective bargaining in Ghana.

At other African countries in which AngloGold Ashanti’s mines are located (Guinea, Mali and Tanzania) the company endeavours to give effect to these basic rights within differing legal regimes, custom and practice and local circumstances, reports Bardin. The company also acknowledges the different stages of labour organisation in these jurisdictions.

Trade union organisation and collective bargaining is better developed in Brazil and Argentina, while the biggest challenges await in Colombia, South America and the Democratic Republic of Congo (DRC) in Africa, where major exploration is ongoing.

AngloGold Ashanti’s operations in the USA and Australia are not unionised. “Historically, our approach has been that we are satisfied that the basic labour rights enshrined in the applicable international instruments find expression within the local laws and regulatory measures.” says Bardin.

As part of a major initiative approved in 2008 and to be developed and implemented in 2009, plans are in place to analyse and review the company’s collective bargaining approaches and mandates against a consistent and coherent application of its values and policies in all its areas of operations.

This project is part of a broader initiative, spearheaded by Executive Vice President Human Resurces, Robbie Lazare, to conduct a methodical review of all company systems, structures and management practices. See discussion on the System for the Management of People in the Employment section.

This project also draws on the concepts and principles for effective management organisation and leadership developed by Dr Elliott Jaques. See case study: Managing talent using the ‘requisite organisation’ concept. Based on scientific research and methodology, the theory focuses on developing organisational structures to enable employees to work at their full potential through increased efficiency, effectiveness and job satisfaction.

A possible new development spurred by labour is also under investigation within the South African labour relations scenario, with an investigation through the Chamber of Mines into the establishment of a bargaining council for the mining industry.

The Labour Relations Act provides for the establishment of bargaining councils. A bargaining council consists of one or more registered employer organisations in a specific sector, and one or more registered trade unions. The conditions of employment agreed in a bargaining council may become legally binding through subsidiary legislation on employers in that specific industry although exclusions or exemptions are possible upon application to the Minister of Labour.

It is envisaged that the Chamber of Mines would act as the employer bargaining agent in the proposed bargaining council. “In our preliminary discussions with organised labour it emerged that a major reason for labour initiating this endeavour is the concern about conditions of employment of contractors in the mining industry,” says Bardin.