THE NUM PERSPECTIVE ON EMPLOYMENT EQUITY

MINING LEKGOTLA 2013 SANDTON CONVENTION CENTRE

27-29 AUGUST 2013

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THE PROBLEM STATEMENT

Understanding the Labour Market

• SA transition from apartheid described as triple transition

Political democratisation

Economic liberalisation

Need to deracialisation of society- that often stand in contradiction

• Contradiction of triple transition become visible at the workplace where apartheid labour market was formed

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THE PROBLEM STATEMENT

The workplace is also where this legacy has to be unmade (Von Holdt 2003)

Government has made targeted interventions (EEA, SDA, AA), etc. to unmake apartheid workplace regime. However, success especially on objective measures of EE remains lacklustre.

Since labour (LM) is not a commodity, its reproduction is social and relatively autonomous.

LM involves process of incorporation, allocation, control and reproduction (Peck 1996)

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CLASS, RACE & THE MINING SECTOR

An examination of the role and structure of the South African mining industry has been central to analysis of the relationship between capitalism and apartheid.

The system of labour control, which includes migrant labour, contract labour, racial despotism and single sex hostels is one of the cornerstones of race and gender relations especially in mining.

(Bezuidenhout)

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CASULISATION, EXTERNALISATION AND INFORMALISATION

Emerging forms of non-standard employment in the mining and other industries are often designed to undermine contracts of employment in order to make implementation of regulation difficult

It would be ill-considered not to re-examine the sustained impact of mining industry on South Africa’s post apartheid order (See MacDonald, Seekings & Nattrass 2006)

An often overlooked structural shift in the industry is the fact that of every 3 mineworkers, one is employed by one of many of the outside contractors M

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Contracting-Out in SA mines by commodity in 2005 Established Employees Outside Contractors Employees

Mining Sector Male Female Male Female

Gold 133 569 3 665 23 373 13

Platinum Groups 96 734 3 402 54 667 966

Iron Ore 4 452 415 2 424 201

Copper 1 894 110 1 710 32

Manganese 1 645 221 1 414 56

Chrome 4 731 176 2 880 52

Diamonds 14 339 1 469 5 860 300

Coal 33 582 2 261 20 809 207

Brickmaking materials 333 33 129 1

Special clays 294 66 25 9

Dimension stone 1 802 177 758 2

Limestone 1 874 127 341 41

Aggregate & sand 9 119 720 5 501 130

Salt 575 137 34 0

Other minerals 3 839 302 630 24

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The Impact of contracting out on Employment Equity

Evidence suggest that:

Workers who are contracted out receive wages considerably lower than permanent employees

They are often housed in separate hostels with appalling conditions.

They are sometimes used in areas considered to be too dangerous for permanent employees because of informal nature of employment arrangements.

They are treated differently from permanent mine employees.

These treatment and practice cheats the requirements and defeats the purpose of the Employment Equity within the same industry.

The link between exploitation and BEE needs deeper analysis.

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EE Commission Report 2011-2012

ECONOMICALLY ACTIVE POPULATION

Male Female

No.

1. African Male 40.3% African Female 33..8%

2. Coloured Male 5.9% Coloured Female 5.2%

3. Indian Male 1.8% Indian Female 1.1%

4. White Male 6.6% White Female 5.3%

5. Foreign Male 0% Foreign Female 0%

TOTAL 54.6% TOTAL 45.4%

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Analysis of Employment Equity Reports Received in 2011

TOP MANAGEMENT BY GENDER MALE FEMALE

80.9% 19.1%

TOP MANAGEMENT BY RACE

African Coloured Indian Whites

18.55 4.8% 7.5% 65.4%

TOP MANAGEMENT BY DISABILITY

Disabled Others

1.9% 98.1%

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Industry/ Sector workforce profile at senior management level by race & gender

Sector Male Female Foreign National

Total

African Coloured Indian White African Coloured Indian White Male Female 100%

Mining & Quarrying

16.3% 2.2% 2.5% 63.4% 3.5% 0.3% 0.9% 8.4% 2.4% 0.3% 100%

Elect, Gas & water

24.3% 4.9% 8.1% 34.1% 12.3% 2.5% 2.5% 9.2% 1.7% 0.2% 100%

Construction 12.2% 4.6% 4.6% 61.7% 4.4% 0.8% 1.3% 7.2% 3.1% 0.1% 100%

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Mining Sector Workforce Profile

WORKFORCE BELOW GRADE 9 (NQF 1)

No. Year %

1. 2007 55%

2. 2008 53.2%

3. 2009 48.9%

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Racial Distribution of employees in the sector & according to occupation groups in 2009

Race Distribution in Sector

No. Race %

1. African 84%

2. Coloureds 2.2%

3. Indians 0.5%

4. Whites 12,7%

Racial Distribution per occupations

Occupations Africans Coloured Indians Whites

Managers 22% 3% 3% 72%

Professionals 36% 3% 3% 57

Techn &Trade 54% 5% 1% 41%

Cleric/Admin 58% 6% 2% 33%

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ANALYSIS & PERSPECTIVE

The pace of transformation very slow

Contracting out employment deliberate stand to undermine transformation

BEE used to manipulate process of transformation

Skills levels not conducive for employment equity thus equitable share of income

Resistance to deal with race

Race continue to create skewed distribution of income

Inequality based on race and gender dominates the industry

Black managers not firm on transformation and contributory to slow pace of transformation

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What needs to be done

Rearrange power relation between lower mine operations and corporate offices at senior management levels.

Sector based targets (Skills Development & EE matching levels of education and skills challenges ( No low targets when challenges are high).

Centralising coordination of sector skills development, employment equity and affirmative action.

Analysis of company HR departments influence on HRD and production related requirements.

Eliminating IR disputes with potential to distract transformative interventions.

THANK YOU

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