Annual Financial Statements 2003
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Labour practices
 
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Employment costs per region (US$m) ? 2003

 
 
 
In-house Management Trainee programmes are facilitated in the South Africa region for the following disciplines: Mining, Engineering, Geology, Survey, Evaluation, Rock Engineering, Metallurgy, HR and Finance. Young graduates, on these programmes, are closely monitored and mentored as they are viewed as future managers within the company. On completion of the programme, the Management Trainees are appointed into permanent positions where they are able to add value to the organisation.
 
 
Review of 2003

A world-class employer

As one of the world?s leading gold mining companies, AngloGold is also one of the largest mining company employers, particularly in South Africa. Faced with the challenge of skills shortages in many of the countries that it operates, along with the need to attract and retain competent people to the mining industry and the need to improve productivity through the improved utilisation of people, human resource development and management are of fundamental importance to the group.

In 2003, including contractors, the group employed some 55,439 people (2002: 54,042) broken down as follows: South Africa ? 48,078 (2002 ? 47,602), East and West Africa ? 2,724 (2002 ? 2,276), South America ? 3,356 (2002 ? 2,656), Australia ? 540 (2002 ? 599) and North America ? 741 (2002 ? 909).

In line with its commitment to being a leading employer, business units across the group provide employee benefits over and above those that are legally mandated. These include health care services (or access to health care), maternity and paternity benefits, education, and retirement, housing and accommodation, among others.
 
Governance and structure
While human resource strategy is driven by central policy from the corporate office in Johannesburg, each region or business unit develops and adheres to policies and procedures relevant to the region within which it operates, thereby complying with regional legislation or other labour requirements, as well as region-specific imperatives.

Employment equity, in particular, is guided by a committee of the board, which is chaired by Deputy Chairman, James Motlatsi. Other permanent members of the committee are Bobby Godsell (CEO), Nigel Unwin (Head of Human Resources and Information Technology) and Dave Hodgson (COO). The committee meets on a quarterly basis.
 
Human rights and fair employment practices
AngloGold is committed to upholding the Fundamental Rights Conventions of the International Labour Organisation (ILO) and seeks to ensure fair employment practices group-wide. By virtue of its South African domicile, AngloGold is subject to certain conventions signed by the South African Government. These include human rights and social issues (ILO 29, 87, 98, 100, 105, 111, 138). South Africa?s constitution, together with its associated laws, is internationally acknowledged to be amongst the most progressive in the world, guaranteeing lack of discrimination, freedom of association and the rights of children, amongst other basic human rights.

South Africa, in particular, has a strong labour movement with progressive labour practices, and management/union relationships are governed by negotiated agreements in respect of most of the workforce. AngloGold has also played an active role in the International Confederation of Energy and Mineral Workers (ICEM) (PDF - 86KB) and the structuring of some of its proposed international agreements.

In South Africa, for example, the following are in place at an operational level to ensure that human rights are protected:
Recognition agreements;
Disciplinary procedures;
Appeal procedures;
Grievance procedures; and
Collective bargaining agreements.
AngloGold is also committed to creating workplaces where harassment ? in any form ? or unfair discrimination, is not tolerated. Policies concerning sexual harassment and discrimination are in place at all of AngloGold?s operations.

The AngloGold Australia equal opportunity policy (PDF - 42KB) is attached as an example.
 
Managing diversity and encouraging Employment Equity
As a global company, operating in culturally diverse societies, AngloGold is faced with both the opportunities and challenges that this presents. In some countries, cultural, racial and gender diversity is governed by certain legislative requirements. In South Africa, the Employment Equity Act and the Broad-based Socio-economic Empowerment Charter (the Mining Charter) both cater for the promotion of HDSAs. In many African countries, such as Mali, Namibia and Tanzania, legislation governs the recruitment of expatriate employees and the indigenisation of the workforce. (See discussion on meeting the requirements of the Mining Charter). Over and above compliance with such legislation, AngloGold subscribes to the values of Employment Equity and aims to promote the development of a workforce that reflects both the international and local diversity of the organisation.

Employment Equity forms a part of AngloGold?s broader human resources strategy. AngloGold?s philosophy is that the group will seek to promote an organisational culture which recognises the diversity of the society within which the company conducts its business, and which affords all employees the development opportunities that will enable them to achieve their optimal levels of career development in the course of their employment with the company.

A key element of the employment equity programme is employee development and retention, and the implementation of strategies to counteract losses, develop careers and promote mobility in an environment that is free of discrimination. (See Employment Equity in South Africa case study).
 
Women in mining
The under-representation of women in mining at all levels is an issue faced by the mining industry world-wide for a host of reasons. In South Africa the employment of women was historically also hampered by legislation and cultural taboos. A framework for the implementation of women in the mining industry will be implemented during the first quarter of 2004. Some progress has been made in providing female change houses, toilets underground and in developing a greater degree of understanding and sensitivity towards women underground. The Physical and Functional Test Battery (See case study in the health section of this report) also ensures that women employed to do physical work will cope in the strenuous environment. In addition to the sexual harassment policy, the group has implemented a maternity leave policy (PDF - 114KB) which allows for up to 12 months of maternity leave. In South Africa, in line with the Basic Conditions of Employment Act, family responsibility leave also applies to all employees. (See case study on Developing women in mining at Mponeng.)
 
Training and development an imperative
AngloGold believes that all employees should be provided with the opportunity to participate in training which improves their workplace competencies. The company is also committed to ensuring that every employee has the opportunity to become numerate and functionally literate in the language of their workplace.

AngloGold offers all employees the opportunity to develop their skills through both internal and external training and development programmes. In South Africa, where most of the group?s employees are based, the company belongs to the Mining and Minerals Sector Education and Training Authority (SETA), a tripartite body formed between labour, the State and employers, and the Mining Qualifications Authority (MQA), its accreditation body. In addition, the Workplace Skills Plans, associated with the Employment Equity plans in South Africa prescribe ABET targets. In a recent audit by the South African Qualifications Authority (SAQA), AngloGold ? as a certificated training provider that is ISO9000 accredited ? was found to be aligned with the SAQA principles and policies.
 
Number of courses completed (including Recognition of Prior Learning - RPL)
          ABET 4/  
Year Pre-ABET ABET 1 ABET 2 ABET 3 NQF L1 Total
1999 2,273 1,625 1,480 1,339 393 7,110
2000 1,897 1,624 1,481 1,824 734 7,560
2001 1,029 814 877 825 258 3,803
2002 1,419 844 729 636 139 3,767
2003 1,485 1,007 861 633 170 4,156
Total 8,103 5,914 5,428 5,257 1,694 26,396
 
A group-wide Executive Development Programme (EDP) is in place, in which candidates are exposed to high-level courses at a range of tertiary education institutions. In terms of the development of senior employees in South Africa, training occurs through participation in the company?s Management Development (MDP); the region also offers an Intermediate Management Development Programme (IMDP), where younger employees with management potential are identified and given an opportunity to develop their careers. The East and West Africa region joined both the MDP and IMDP programme in 2003. From 2004, there will be participants from both North and South America.
 
Funding bursaries to develop potential
There are study assistance programmes for employees across the group. In the South Africa and East and West Africa regions a bursary programme also exists. During 2003 the South Africa region spent some R9 million on bursaries.

Through the bursary scheme AngloGold offers suitable candidates in South Africa, as well as in Mali and Namibia, the opportunity to pursue tertiary studies in Mining Engineering, Metallurgy, Engineering (Mechanical and Heavy Current Electrical), Mineral Resource Management and Environmental Management (Mali and Namibia only). Currently, the company funds 123 bursary students, at both universities and technikons. The South African region funds 110 students and the East and West African region funds 13 students.

AngloGold offers successful candidates bursaries, covering:
Funds to cover 100% of tuition and accommodation costs
Bridging programme and life skills training where necessary
A generous cash allowance to cover the cost of books and incidental personal expenses
An allowance in their third year to purchase a laptop computer
Guaranteed vacation work at the end of every academic year
Personal mentoring by dedicated AngloGold staff
 
Successful completion of the tertiary qualification may result in an offer of employment for in-service training. The recruit will undergo an approved training programme for his or her selected discipline to equip the trainee with the skills and knowledge necessary to progress through the company.

In 2003, AngloGold introduced a new Talent Management Programme to:
 
Ensure that the most senior jobs are held by the most appropriate incumbent
Ensure that the company has a sufficient number of people with the capability to deliver superior performance in top jobs in the future
Ensure that the company is identifying and growing the pool of talented people who will be leading the business in five to 20 years time
 
As part of this programme, an annual talent review is conducted across all business units, focusing on senior positions, short-term successors and young, high-potential candidates. This programme ensures that AngloGold?s overall talent base is aligned with both the present and future needs of the business.

The South Africa region?s centralised training venue provides quality accredited technical training in the following core disciplines: Mining, Engineering, Metallurgy, and Occupational Environment Safety and Health. The centre is ISO9002 certificated and accredited by the Mining Qualifications Authority (SETA). Skills programmes and Learnerships presented at the centre are outcomes-based and provide employees with the necessary knowledge and skills to do their work safely and efficiently.

See the company?s website for further careers information ? www.anglogold.com.
 
Summary of Management Trainee Intake (South Africa)
Discipline 2002 2003 2004
Mining 5 6 5
Engineering 9 8 5
HR 0 2 1
Rock Engineering 1 3 2
Finance 0 3 0
Geology 9 5 2
Metallurgy 4 5 4
Survey 1 1 0
 
Group senior management development in 2003
Executive Development Programme (EDP) 6 candidates
Management Development Programme (MDP) 39 candidates
Intermediate Management Development Programme (IMDP) 34 candidates
* This excludes company sponsored participation in short courses at Business Schools across the world.
  
Training for life after employment with AngloGold
Further aspects of training and development are the training programmes that have been put in place to support the continued employability of individuals after employment by the company and in preparation of career endings, both as a result of ill health or as a result of mine closure. When an employee is no longer able to work and the incapacity is occupationally linked, the employee is provided vocational training to enable the employee to enter an outside or home based industry. (See case study).
 
Fair and meaningful remuneration
The company seeks to remunerate employees fairly and meaningfully at both an individual and team level. In addition to basic pay, various productivity and safety bonus schemes exist at an most operations to both motivate and reward employees.

At a more senior level of the organisation, AngloGold?s remuneration policy is reviewed annually and seeks to:
Attract, reward and retain managers of the highest calibre
Align the behaviour and performance of managers with the company?s strategic goals and to act in the overall interest of shareholders
Ensure the appropriate mix of short-, medium- and long-term rewards and incentives, with the latter being closely linked to structured company performance targets and strategic objectives and
Ensure that regional management is competitively rewarded within a global remuneration policy, which recognises both local and global markets
 
Revised performance contracts were implemented for mid-management and above during the year to:
Align individual effort with company objectives
To serve as an objective basis for recognition and reward
To provide feedback and improve performance
To identify training and development needs
 
As a first step in the process it was necessary to agree Key Performance Areas (KPAs) and Key Performance Indicators (KPIs). Care is taken in developing these to ensure alignment with company objectives and to ensure that the KPAs and KPIs can address both individual and team performance. The process of measurement and feedback includes at least two formal reviews per annum, and one final evaluation. A training and development plan is then put in place for each individual, which is then included in the company?s skills plan and succession planning process.
  
Meaningful employee participation
AngloGold 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 both company and operational level on a wide range of issues to share information and address matters of mutual interest. These include forums such as the Skills Development Committees, which are established at each South African operation, as well as the Central Skills Development Committee.
  
Providing health care to employees
AngloGold provides a comprehensive health service to its employees, especially in South Africa, where the majority of the company?s employees are located.

In South Africa, AngloGold runs two occupational health centres, which are staffed by two doctors and some 30 support health care practitioners each. In addition, comprehensive health care benefits are provided by AHS, a wholly-owned subsidiary of AngloGold. AHS provides health care services to all of the company?s South African employees, as well as a significant and growing number of dependants outside of South Africa, occupational health care is provided by on-site primary health care clinics and access to health care through both company and private facilities.
 
Constructive industrial relations
The company has in place a variety of strategies and structures, which are designed to promote employee participation. These strategies and structures are further developed and adapted from time to time to meet variations in operational requirements and to accommodate changing circumstances. Management and employee representatives meet in formal and informal forums at company and operational levels to share information and to address matters of mutual interest. During the course of 2003, approximately 160 operation hours were lost due to strikes in the East and West Africa region.
 
 
Business principle:
  AngloGold as an employer
Key indicators
Milestones - 2003
Labour practices policy
Review of 2003
  A world-class employer
  Governance and structure
  Human rights and fair employment practices
  Developing mission, values and business principles
  Managing diversity
  Women in mining
  Training and development
  Funding bursaries
  Training for separation
  Fair remuneration
  Employee participation
  Providing health care to employees
  Constructive relations
Reporting in line
with GRI
Objectives for 2004
Case studies
  South Africa
  East and West Africa
  Australia
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