| HUMAN CAPITAL |  |
MATERIAL
ISSUES
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Human capital includes health, safety knowledge, skills, intellectual outputs, motivation and the capacity for relationships of individuals. Organisations depend on individuals to function.
We need a healthy, motivated and skilled workforce. Intellectual capital and knowledge management is also recognised as a key intangible creator of wealth. Damaging human capital by abuse of human rights or labour rights or compromising health and safety has financial and reputational costs.
The Venture enhances its human capital by:
| • | giving employees and community members access to training, development and lifelong learning and capturing and sharing knowledge |
| • | ensuring adequate safety arrangements are in place |
| • | incentives and remuneration |
Stakeholder impact and engagement with stakeholders
The stakeholders most affected by the ability of Merafe and the Venture to
keep our employees safe and healthy are their families and dependants.
Glencore believes in the possibility of a zero harm operation. We
believe that all occupational diseases and injuries can be prevented
and that therefore, we must all take responsibility of avoiding
occupational diseases and injuries. – Glencore Code of Conduct |
The Venture’s policies and approach to safety management
The Venture’s operations maintain stringent safety and risk management systems, which it aligns
with the international standards OHSAS 18001 and ISO 31000. Glencore collates best practice
from each of its assets and from externally recognised leaders in safety management and shares
this knowledge across the Glencore Group. Through Glencore, all the operations of the Venture are
members of the International Council of Minerals and Mining (ICMM).
The Venture takes a proactive, preventative approach towards safety, aiming to instil a positive safety culture in which everyone fully integrates its safety values into their working lives. It has updated its approach to safety by updating its risk management framework. Glencore’s fatal hazard protocols and high potential risk incident (HPRI) reporting processes will be a key part of the new Glencore process being rolled out in the Venture.
The Venture’s Sustainable Development Director is responsible for safety, health and wellness.
Safety programme overview| Objective | Supporting actions |
| Zero fatalities | We reviewed and strengthened our incident investigation process to include 24-hour notification of senior management and the Glencore corporate sustainability team for fatal incidents and launched a mandatory on-site fatality investigation process following any fatal incident. The Venture’s senior management must then report to the Glencore Board HSEC Committee on fatalities and the subsequent independent investigations in person. Any lessons learned that could further improve general fatality prevention are shared across the Group. We ensure independent third-party assistance is on site within 72 hours of a fatal incident. We developed SAFEALLOYS, a Group initiative to foster a safety culture based on behaviours and consequences at all levels. We rolled out fatal hazard protocols and life-saving behaviours (part of the SAFEALLOYS programme) across the Group. |
| Reduce LTIFR 50% by 2016 on 2010 baseline | We have standardised the identification and investigation of all high potential risk incidents (HPRIs) to enable identification and prevention of root causes of accidents. We share learnings and corrective actions across the Group and with the Board HSEC Committee. |
Additional information
| How the Venture measures injuries in its operations
The Venture's key performance measure for injuries is the total recordable injury frequency rate (TRIFR) which measures injuries per one million hours worked by both its employees and contractors. The injuries included in the TRIFR are lost time injuries, medical treatment injuries and restricted work injuries. Glencore believes the TRIFR is a more complete measure of safety performance than lost time injuries (LTI) alone. The Venture's business processes include analysing the root causes of incidents causing injury and developing appropriate programmes to understand, address and eliminate the underlying causes. What the Venture is doing to make its operations safer The Venture's management encourages transparent reporting and proactive knowledge sharing across its operations and has made it compulsory for its people to report high potential risk incidents (HPRI). The Venture assesses accountability, responsibility and consequence in the context of each situation to determine the underlying causes of incidents. The Glencore Executive Committee receives a report on the investigations of all such incidents and discusses them at its monthly meetings. In addition, the Glencore group shares the lessons learnt in the operations it manages during monthly sustainable development conference calls. This approach has allowed it to develop a global reporting culture which provides its management team with the information they need to assess how effective their controls are and to implement improvements. When they feel they do not fully understand a hazard they enlist external experts to assist them in developing appropriate controls. Reducing contractor management complexity in the Venture A further safety summit was held with all the Venture's contractors. Focus areas and leading indicators were identified. |
The Glencore Fatal Hazard Protocols and Life Saving Behaviours, which provide a set of tools which initially are focused on the fatal risks, are being rolled out in the Venture as part of SAFEALLOYS. The life-saving behaviours are aimed at strengthening the focus in the Venture on behaviours and consequence rather than a rules-based culture. The fatal risk categories that Glencore has identified as being most hazardous and responsible for the majority of its fatalities include: energy isolation, working at heights, mobile equipment, ground/strata failure, confined space and electrical safety. Over and above this, the Venture highlights specifically the working at heights and people vehicle interaction as key danger areas.
In 2015 there were 108 injuries (these include first aid and medical treatment injuries) in a workforce of 13 599 (including contractors). An in-depth analysis by the Venture revealed that no one single factoral cause stood out, but that ‘at risk behaviour’ remains a major problem. As safety is the number one priority in the Venture, a number of campaigns were rolled out and re-emphasised in 2014 including ‘SAFEALLOYS’, ‘Life Saving Behaviours’ and ‘Consequence Management’.
The Venture implemented the Fatal Hazard Protocols during 2015, and achieved a level 1 rating. In 2016 the Venture is targeting a level 2 rating.
Accountability
Safety in the Venture is always the direct responsibility of Glencore’s senior management, who
provide the leadership, systems and processes for the prevention of incidents and the elimination
of fatalities in the Venture. The formal management structure documents responsibility for safety
from the Glencore Board down to each individual Venture employee and contractor.
The Venture puts considerable effort into embedding a safety culture in its operations. Its leaders are aware that they are expected to put safety before production or other considerations and to personally endorse safety initiatives and engage with employees at all levels to discuss safety issues and priorities.
It concludes health and safety agreements with the trade unions.
The sustainable development policies in place in the Venture are aligned with the Glencore Group Sustainable Development Standards. They set out its commitment to zero injuries and fatalities.
The role of training
The Venture’s investment in safety training is detailed in the Human capital section of
this report. It uses virtual reality training, combined with easy to read written instructions, on all its
different procedures. The training is designed to ensure that employees cannot complete their
training on a procedure until they have shown they fully understand it. Training as can be seen from
the detail in the Human capital of this report was a major focus during the year.
HUMAN CAPITAL: HEALTH AND WELLNESS
Human capital includes health, knowledge, skills, intellectual outputs, motivation and the capacity for relationships of individuals.
| KEY POINTS |
| One noise-induced hearing loss (NIHL) case in 2015 (2014: three) |
| Encouraging employees who test positive for HIV to register for treatment |
| The impact of HIV/AIDS and tuberculosis (TB) on our workforce |
| The link between TB and AIDS emphasising the need to significantly increase the Venture’s TB programme to provide the highest quality prevention and care for employees and contractors |
Organisations depend on individuals to function. They need a healthy, motivated and skilled workforce. Intellectual capital and knowledge management is also recognised as a key intangible creator of wealth. Damaging human capital by abuse of human rights or labour rights or compromising health and safety has direct, as well as reputational costs.
We enhance our human capital by providing healthcare and training and education in health matters.
Our policy and approach
A business needs a healthy workforce that is able to work at its full potential. The health
programmes provided by the Venture, which aims to eliminate occupational illnesses, address
occupational illnesses, public health issues and the overall wellbeing of its employees and
contractors.
Typically, occupational illnesses such as NIHL are only diagnosed some time after the event that caused them. As a result, the occupational illnesses currently occurring in the Venture’s operations are usually the result of historic mining and smelting practices.
The Venture has identified noise-induced hearing loss as a major occupational health risk for its employees and has implemented hearing conservation programmes to counteract this risk. Any of its workers exposed to the internationally accepted noise level limit of 85 decibels or above must wear hearing protection. The equipment it provides includes variphones, which are custom-made for comfort and are 100% leak tight. Employees are trained in the use, maintenance and storage and care of this equipment. Any employees or contractors at risk of being exposed to noise that could damage their hearing are personally monitored and regularly tested as part of our hearing conservation programmes.
Wherever possible the Venture reduces the noise from the equipment it uses in its operations to levels below the internationally recommended standards using design modifications, exclusive zones and ‘buy quiet’ programmes for new or upgraded equipment. The Venture’s operations have reduced machinery noise to less than 110 decibels.
All the Venture’s operations undergo an annual risk assessment of their baseline risks on ISOmetrix.net and legal audits are conducted every three years.
Additional information
| Eliminating occupational illnesses
Typically, occupational illnesses such as noise induced hearling loss (NIHL) are only diagnosed some time after the event that caused them. As a result, the occupational illnesses currently occurring in the Venture's operations are usually the result of historic mining and smelting practices. The Venture conducts regular occupational health assessments of the chemical, biological, physical and ergonomic risks at its operations. These assessments help the Venture to manage the occupational health risks in its operations effectively and to minimise the impact of occupational illness through its early identification. Through the wellness programme, employees and contractors are made aware of health issues and what they can do to avoid them. Employee representatives are members of the Venture's formal joint management-worker health and safety committees, which monitor and advise on occupational health and safety programmes. The Venture has identified NIHL as a major occupational health risk for its employees and has implemented hearing conservation programmes to counteract this risk. Any of its workers exposed to the internationally accepted noise level limit of 85 decibels or above must wear hearing protection. The equipment it provides includes variphones, which are custom-made for comfort and are 100% leak tight. Employees are trained in the use, maintenance and storage and care of this equipment. Any employees or contractors at risk of being exposed to noise that could damage their hearing are personally monitored and regularly tested as part of our hearing conservation programmes. Wherever possible the Venture reduces the noise from the equipment it uses in its operations to levels below the internationally recommended standards using design modifications, exclusive zones and "buy quiet" programmes for new or upgraded equipment. The Venture's operations achieved their commitment to reduce machinery noise to less than 110 decibels by 2013. |
HIV and AIDS
HIV and AIDS is a human rights issue, which Merafe and the Venture address through their policies and programmes. To ensure these policies are accessible to the Venture’s employees and contractors, they are available in all the languages spoken by its employees.
Employees can choose to receive HIV and AIDS counselling, care and support. Any HIV-positive employees of the Venture can receive treatment they need free of charge, together with the support and education that will make it possible for them to maintain their antiretroviral (ARV) treatment programme through the membership of a medical aid.
All the Venture’s occupational health nurses have been trained in the management of HIV and TB and the impact of HIV and TB. All employees that visit its occupational health clinics are screened for TB. Those whose screening tests indicate they may have TB are referred to public healthcare facilities for TB investigation and treatment. The Venture’s wellness programme has been incorporated into the annual/periodic medicals conducted at each operation. Medical records remain on site and are only seen by the Occupational Medical Practitioner and the nurses.
The average HIV prevalence rate in the Venture 2015 was approximately 13%. Only members of the Venture’s medical aid scheme are included in this calculation.
Additional information
The Venture 's HIV and AIDS policies commit it to:
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Organisations depend on individuals to function. They need a healthy, motivated and skilled workforce.
MATERIAL
ISSUES
|
| KEY POINTS |
| No protected or unprotected strikes in 2015 |
| Three-year wage agreement signed with smelter employees in 2015 |
Intellectual capital and knowledge management is also recognised as a key intangible creator of
wealth. Damaging human capital by abuse of human rights or labour rights or compromising health
and safety has financial and reputational costs.
We enhance our human capital by:
| • | giving employees and community members access to training, development and lifelong learning and capturing and sharing knowledge |
| • | respecting human rights |
| • | paying fair remuneration to our employees and our business partners |
| • | creating satisfying work opportunities |
Our approach to our employees
Glencore’s Code of Conduct, which is applied in the Venture, recognises and upholds the rights
of employees to a safe workplace, collective representation, just compensation, job security
and opportunities for development, all of which are based on the core belief that our people are
fundamental to our success.
The Venture’s Human Resources Director is responsible for labour relations in the Venture.
Both Merafe and the Venture are committed to providing a workplace based on:
| • | mutual respect |
| • | fairness |
| • | integrity |
| • | non-discrimination |
| • | equal opportunity at all levels |
| • | open and two-way engagement with our employees and their representatives |
More on our approach to our employees, and adherence to international employment standards
can be found on our online integrated report for 2015 under Human capital: Our employees.
Additional information
| Employee relations
The Venture's workplace agreements specify notice periods and it consults with employees before any significant operational changes. ln line with its Sustainable Development Policy it consults and communicates with its employees and provides them with appropriate support during significant organisational changes. The Venture's management team always consults with the aim of reaching agreement with trade unions. Employee remuneration Both Merafe and the Venture provide well-structured employment contracts and fair and competitive remuneration. We offer an equal rate of pay to male and female employees of equal experience. Our employment equity policies provide all potential and existing employees with equal opportunities in terms of recruitment, promotion, transfer, employee benefits, training and conditions of service. The Venture bases its minimum wages on union agreements and pays all its employees according to the standard minimum, or above. Employee benefits The benefits that the Venture provides its fulltime employees, over and above the legally mandated employment benefits, include retirement benefits in the form of provident funds, medical scheme benefits and assistance with housing loans. lt does not offer these additional benefits to temporary or parttime employees. During 20'l 1 the Venture offered all its A to C band employees (nonmanagerial employees) the opportunity to participate in an employee share ownership plan (ESOP). The scheme was finalised in 2012 and has been implemented. While Merafe's employees are not unionised we consult with them in advance of any significant changes to our business. Engagement and resolving disputes amicably plays a very important role in labour relations. The Venture undertakes to consult with its employees and their recognised representatrves in advance of significant operational changes in an effort to reach consensus about any necessary business actions. Collective bargaining and freedom of association are considered a fundamental right for the Venture's employees. Collective agreements, particularly around terms and conditions of employment and company benefits, are negotiated between the parties with due regard to the relevant legislation. The Venture seeks to reach agreement with the unions on annual wage increases for implementation in July each year. ln all, 61.4% of the Venture's employees are covered by a collective bargaining agreement. The Venture is committed to treating all its employees with dignity and in a manner that is culturally sensitive. Unfair discrimination on the basis of race, gender, religion, political or sexual orientation, national extraction or social origin is not tolerated. |
Labour relations
While Merafe’s employees are not unionised, we consult with them in advance of any significant
changes to our business.
Engagement and resolving disputes amicably plays a very important role in labour relations. The Venture undertakes to consult with its employees and their recognised representatives in advance of significant operational changes in an effort to reach consensus about any necessary business actions.
Collective bargaining and freedom of association are considered a fundamental right for the Venture’s employees. Collective agreements, particularly around terms and conditions of employment and Company benefits, are negotiated between the parties with due regard to the relevant legislation. The Venture seeks to reach agreement with the unions on annual wage increases for implementation in July each year. In all, approximately 60% of the Venture’s employees are covered by a collective bargaining agreements.
The Venture is committed to treating all its employees with dignity and in a manner that is culturally sensitive. Unfair discrimination on the basis of race, gender, religion, political or sexual orientation, national extraction or social origin is not tolerated.
Disciplinary and grievance policies and procedures are in place at Merafe and the Venture.
Industrial action in the Venture in 2015
There were no protected or unprotected strikes during 2015.
| Operation | Number of days in 2015 |
Number of days in 2014 |
||
| Western chrome mines | 0 | 47 | ||
| (Waterval and Kroondal) | ||||
| Total number of days | 0 | 47 |
At the end of November 2014 the Venture signed a three-year wage agreement for the western
mines. In 2015 the Venture signed three-year wage agreements with the western smelters and
eastern smelters.
Union membership
The Venture has recognition agreements with NUM, NUMSA and Solidarity and approximately 73%
of its workforce is unionised.
| KEY POINTS |
| 2% increase in the Venture’s total number of employees in 2015 |
| The Venture met the Mining Charter targets in 2015 |
| Merafe met the Mining Charter employment equity targets in 2015 |
| Merafe had seven employees and the Venture 6 799 employees at 31 December 2015 |
The total workforce of the Venture by employment type
| Category | 2015 | 2014 | 2013 | |||
| Full time employees1 | 6 436 | 6 282 | 6 318 | |||
| Temporary/fixed term employees2 | 363 | 182 | 328 | |||
| External contractors3 | 6 800 | 6 921 | 8 882 | |||
| Total | 13 599 | 13 385 | 15 528 |
1 Increases mainly due to appointments at eastern mines and Lion II
2 Increases due to move from labour brokers
3 Reduced as Lion II project completed
Maximising local employment
Hiring policies
When hiring employees we give preference, where possible, to members of the local community
and, in some instances, we offer training opportunities to community members to develop the skills
they need to become our employees.
Diversity and equal opportunity
Management and site employment equity committees monitor employment equity in the Venture’s
operations every month and report the results to the Venture, which in turn reports to the Glencore
Board and Merafe.
We base our employment equity policies on providing equal opportunities to all potential and existing employees.
Employee challenges| • | Maximising local employment in the Venture |
| • | Achieving employment equity that is supported by everyone in the workplace |
| • | Making careers in mining more accessible to women in the Venture |
| • | Engaging with the Venture’s employees and the trade union through open communication channels to achieve labour peace |
| • | Providing a workplace that is free of discrimination |
Venture workforce by employment and gender type in 2015
| Permanent and fixed term | Male | Female | Total | |||
| Senior management | 86 | 9 | 95 | |||
| Middle management | 124 | 39 | 163 | |||
| Supervisors, administrators, technicians | 948 | 358 | 1 306 | |||
| Operational, maintenance, production | 4 688 | 547 | 5 235 | |||
| Grand total | 5 846 | 953 | 6 799 |
Diversity in the Venture
The term diversity used in this section of the report is based on the Mining Charter Scorecard’s
definition of historically disadvantaged South Africans (HDSAs), which includes African males and
females, coloured males and females, Indian males and females and white females. Ongoing
transformation is a priority and is discussed at all levels. The Venture is focusing on its retention
strategies with specific reference to senior management HDSAs.
| Venture employment equity | % Mining Charter target 2015 |
% achieved 2015 |
||
| Senior management | 40 | 40.00 | ||
| Middle management | 40 | 58.90 | ||
| Junior management | 40 | 56.34 | ||
| Core skills | 40 | 93.27 |
Diversity in Merafe
| Mining Charter | % Mining Charter target 2015 |
% achieved 2015 |
||
| Top management (includes Board) | 40 | 78 | ||
| Senior management (Exco) | 40 | 100 | ||
| Middle management | 40 | 50 |
There are no junior managers employed by Merafe.
Merafe achieved a Level 4 B-BBEE status under the Codes of Good Practice in 2015. A copy of the certificate (expiry date 28 April 2016) is on the Company website.
 |
See the table on Our approach to governance of this report for detail of structure of the Venture’s Joint Board where executives of Glencore and Merafe are members |
HUMAN CAPITAL: TRAINING AND DEVELOPMENT
The Venture provides full time adult basic education and training (ABET) for its employees and portable skills training that equips employees for career endings
| KEY POINTS |
| The Venture invested R73.75 million (2014: R56.15 million) in training in 2015 |
| An average of R5 424 was invested in training for each member of the Venture’s workforce (employees and contractors) (2014: R4 195) |
| 733 204 Venture total training hours (2014: 467 720) |
| R25.86 million invested in artisan and apprentice training (2014: R9.98 million) |
| Over R4.27 million invested in bursaries and scholarships (2014: R4.78 million) |
| 59 average training hours per permanent employee (2014: 39) |
| 334 507 training hours on contractors (2014: 217 404) |
Additional information
| Our approach
Both Merafe and the Venture’s long-term interests depend on our ability to attract and retain the best people and to transform our workforces. We identify employees with high potential at every level and are committed to providing them with the support and tools they need to develop. The Venture uses surveys to assess employees’ satisfaction levels and to find out about issues that it may need to address. It records and addresses these issues and provides its employees with feedback in this regard. Since 2011 the Venture has extended its annual individual performance management and development reviews to include all supervisory level employees (16% of employees), introduced team performance reviews for all its employees and extended annual individual performance management and development reviews to include supervisory level employees (16% of the workforce). All the Venture’s employees have job descriptions and action plans, which they can use to set career objectives for themselves and to measure their own performance. Its managers are trained to conduct performance reviews and give effective feedback. Each operation in the Venture has a workplace skills planning committee, which is responsible for identifying the operation’s specific training requirements. The Venture structures its training to meet these specific needs. This includes providing training to local community members in skills that will equip them to seek employment in its operations. The Venture, as part of Glencore, shares a joint training provider accreditation with Glencore Coal. The Venture’s operations are spread across three provinces, which requires it to provide training centres at most of its operations. The Steelpoort Development Centre in Limpopo province provides training facilities for the Lion ferrochrome plant, the Lydenburg ferrochrome plant and the Thorncliffe, Helena and Magareng mines. It also provides training to employees of other mining companies in the area. The Centre not only trains members of the community in skills that will equip them to work in the Venture’s operations, but also offers training in marketable skills including bricklaying, welding and household electrical skills. The Centre also offers a bridging programme that prepares local students for tertiary education. To address the shortage of mining, engineering and related skills the Venture offers bursaries for full time university and technikon studies in the mining, electrical, metallurgical and mechanical engineering fields, geology, occupational hygiene, financial management, information technology, science and commercial accounting. It also offers graduate trainee positions, work placement for students as well as financial assistance focusing on members of the communities in which it operates. A mentorship and coaching programme supports employees who receive educational assistance, those who have entered into learnership agreements and those identified for accelerated development. The Venture also provides full time adult basic education training (ABET) for its employees and portable skills training that equips employees for career endings. |
Development and training
Both Merafe and the Venture are committed to meeting their human resource development targets
and retaining and developing their skilled employees.
The Venture provides:
| • | development and training opportunities for HDSAs that will help them to further their careers |
| • | career development opportunities that allow it to develop and retain high potential employees |
| • | training that addresses risk-tolerant or ingrained behaviours that impact negatively on our operations |
| • | training in its Code of Conduct and Sustainable Development Standards and HSEC Standards and Protocols |
It continually evaluates its training methods and the best way to communicate with the various age groups and cultures in its workforce.
Training hours| 2015 | 2014 | |||
| Total training hours | 733 204 | 467 720 | ||
| Total training hours for permanent employees | 398 697 | 250 317 | ||
| Average training hours per permanent employee | 59 | 39 | ||
| Total training hours contractors | 334 507 | 217 404 | ||
| Number of health issues training sessions | 29 783 | 18 211 | ||
| Number of safety issues training sessions | 42 520 | 46 687 | ||
| Number of human rights issues training sessions | 14 948 | 15 700 | ||
| Number of environmental training sessions | 29 843 | 16 855 | ||
| Community health training | 91 | 24 | ||
| Community environmental training | 71 | 24 | ||
| Community human rights training | 71 | 24 |
Development of staff was a key focus in 2015 across all sites.
Leadership development
The Venture invites senior managers whom it has identified as having leadership potential to
participate in leadership programmes at universities. The Venture also provides them with additional
training, support and career development opportunities. In all, 52% of middle management level
employees who participated in development programmes in 2015 were HDSA and 70% of junior
leaders who attended a programme to enhance their supervisory skills were HDSA.