DEPARTMENT OF PLANNING MONITORING AND EVALUATION

DEPARTMENT OF PLANNING MONITORING AND EVALUATION CONSOLIDATED PROGRESS REPORT: SPECIAL PRESIDENTIAL PROJECT IMPLEMENTATION OF THE FRAMEWORK AGREEMENT FOR A SUSTAINABLE MINING INDUSTRY AND THE REVITALISATION OF DISTRESSED MINING COMMUNITIES Portfolio Committee on Public Service and Administration and Planning, Monitoring and Evaluation 29 October 2014

Presentation Outline • Background to the October 2012 Social Accord • Progress on the Implementation of Framework Agreement and the Revitalisation of Distressed Mining Communities • Objectives • Actions • Progress • Challenges • Interventions • Recommendations

1. Background to the October 2012 Social Accord and Introduction

October 2012 Social Accord • In October 2012 the President led the signing of a Social Accord (not confined to the mining industry) with Government, Business and Labour referred to as the Special Presidential Package (SPP) which made a number of commitments : • Part 1: Restoring confidence in labour market institutions, addressing income inequalities and building social cohesion • Part 2: Action to combat violence and lawlessness • Part 3: Addressing socio-economic challenges

Framework Agreement for a Sustainable Mining Industry • In July 2013 the DP facilitated development of the Framework Agreement for a Sustainable Mining Industry, as mandated by the President • The Stakeholders are: • Government • Labour (NUM, AMCU, UASA and Solidarity, supported by their Federations: COSATU, NACTU and FEDUSA) • Business Chamber of Mines (CoM) and South African Mining Development Association (SAMDA)] • An action plan was developed and consists of the following 5 objectives : • Ensuring the rule of law, peace and stability • Strengthening labour relations • Improving living and working conditions of mineworkers • Providing short to medium term measures to support growth and stability • Identifying long-term measures to support growth and stability • As per the June 2014 SONA, the Framework Agreement is now led by the President

Core and Supporting Departments for the Framework Agreement

IMC for the Revitalisation of Distressed Mining Communities • In late 2012, an Inter Ministerial Committee for the Revitalisation of Distressed Mining Communities was established to address Part 3 of the Social Accord (SPP): Addressing socio-economic challenges in mining districts and their labour sending areas. The IMC has focused on: • Integrated and sustainable human settlements, led by the DHS and supported by its agencies, e.g. NHFC, HDA • Improved socio-economic conditions, led by DCoG, Dept. of Traditional Affairs, DRDLR and supported by DTI, EDD, Treasury, DBSA, SALGA, IDC, MISA • Improved working conditions of mine workers led by DoL • Decent living conditions for mine workers and meaningful contribution to the development trajectory of mining towns and labour sending areas, led by DMR

IMC core and supporting Ministries for the Revitalisation of Distressed Mining Towns Chair: Minister of Planning, Monitoring and Evaluation in the Presidency

Fourteen priority mining towns for the Revitalisation of Distressed Mining Communities • Fourteen mining areas in five provinces and their associated labour sending areas have been prioritised for the revitalisation of distressed mining communities

Complementing mandates • Other complementing forums : • The Mining Industry Growth Development and Employment Task Team (MIGDETT) is constituted by DMR, organised labour, SAMDA and the Chamber of Mines and deals with matters related to managing the negative effects of the global economic crisis, sustainable growth and meaningful transformation of the South African mining sector including • Mine health and safety • Facilitating mine community development • Improving housing and living conditions for workers • Promoting human resource development • Promoting employment equity • Issues get considered as and when they arise • Negotiations on other social and economic issues, e.g. through NEDLAC

2. Progress on the Implementation of Framework Agreement and the Revitalisation of Distressed Mining Communities

Objective 1. Ensuring rule of law, peace and stability Actions • Law enforcement • Enforce municipal by-laws • Establishment of Mine Crime Combating Forums (MCCFs) • Denounce violence, taking active measures to eliminate violence and intimidation • Improve case management and capacity to speed up prosecutions

1.1. Progress on Ensuring rule of law, peace and stability (1)

1.2. Challenges: Ensuring the rule of law, peace and stability • Poor participation of certain members in the MCCFs; fear of victimization of witnesses to criminal cases; culture of intolerance among certain union members and subtle intimidation and disregard for the law such as the new Dangerous Weapons Act • Some striking workers continued to disregard picketing rules in terms of section 69 of the Labour Relations Act • A concern regarding increased participation by communities and political parties during labour protest actions • Reluctance by some eye witnesses to provide formal witness statements • Mushrooming of informal settlements around mining operations

1.3. Interventions/Actions: Ensuring the rule of law, peace and stability

Objective 2. Strengthening Labour Relations (Dept. of Labour) Actions • Develop a protocol for verification of union membership • Fast tracking resolutions of disputes over membership status, verification of membership figures, and recognition agreements • Re-evaluating the principles of majoritarianism • Developing the capacity of union leaders and workers on labour relations matters • Mobilising technical expertise to identify and address basic factors underlying workplace conflict and improving negotiations structures at all levels

2.1. Progress on Strengthening Labour Relations (1)

2.1. Progress on Strengthening Labour Relations (2)

2.2. Challenge : Strengthening Labour Relations • Establishmentof relations and management of conflicts in the workplace requires full buy-in from all stakeholders

2.3. Interventions/Actions: Strengthening Labour Relations

Objective 3: Improve living and working conditions of mineworkers Actions • Accelerate efforts to upgrade human settlement in mining towns • Initiate a process to transform the migrant labour system • Assist workers with financial literacy and financial planning • Addressing compensation and health screening for current and ex mine workers • Improving Town Planning in mining towns

3.1. Progress on improving living and working conditions of mineworkers (1)

3.1. Progress on improving living and working conditions of mineworkers (2)

3.1. Progress on improving living and working conditions of mineworkers (3)Breakdown of the housing allocation for the 14 mining towns over the MTEF period

3.1. Progress on Improving living and working conditions of mineworkers (4)

3.2. Challenges: Improving living and working conditions of mineworkers (1) • Due to the limited time and research project budget, the research on Migrant Labour system concentrated only on migration from within South Africa • The mining industry has not fully played its role in the compensation of mineworkers in relation to occupational diseases • Whereas safety performance is improving, occupational health such as TB and Silicosis of mine workers is a national emergency • Multi National Mining Companies have differential health and safety standards in developed and developing world (sub standards) • Inadequate coordination of human settlement planning in mining towns • Lack of bulk infrastructure in certain mining municipalities remains a challenge • Informal settlements tend to mushroom proximate to mining operations

3.2. Challenges: Improving living and working conditions of mineworkers (2) • Informal settlements often located on tribal or privately owned land • Miners do not qualify for government’s full subsidy housing programme • Many mining companies have reached agreements with unions to pay a living out allowance – largely not used for decent housing and has led to many miners living in terrible conditions in backyards/informal settlements • High levels of indebtedness amongst miners • The plight of women in mining towns and labour sending areas is a characterised by high levels of unemployment, poverty and violence against women

3.3. Interventions / actions: Improving living and working conditions of mineworkers (1)

3.3. Interventions / Actions: Improving living and working conditions of mineworkers (5)

Objective 4. Short to medium term measures to support growth and stability Actions • Actively engage both local and foreign investors to ensure that South Africa remains an attractive investment destination • Ensure certainty in legislative and regulatory programmes • Companies should inform employees upon receiving emolument garnishee orders • Prevention of unscrupulous micro-lenders and reviewing the regulations around salary deductions on garnishee orders • Assessment of economic and social conditions in surrounding and labour sending areas • Enforce and implement all elements and commitments of the Mining Charter • Ensure integration and implementation of Social and Labour Plans (SLP) and Integrated Development Plans (IDPs) in labour sending areas and mining areas

4.1. Progress on implementing short to medium term measures to support growth and stability (1)

4.1. Progress on implementing Short to Medium term measures to support growth and stability (6)

4.1. Progress on implementing Short to Medium term measures to support growth and stability (7)

4.2. Challenges: Short to Medium term measures to support growth and stability • Misperceptions about South Africa’s investment climate • Lack of a coordinated stakeholder approach to engaging the local and global investment community • The high level of indebtedness of mine workers and existence of unscrupulous micro lenders and unsecured lending • Misalignment of IDPs and SLPs

4.3. Interventions / actions: Short to Medium term measures to support growth and stability

Objective 5. Long term measures to support growth and stability Actions • Review of the long term Mining Strategy and supporting initiatives for restructuring, re-skilling to achieve competitiveness, sustainable growth and transformation is planned • Continue to promote development of infrastructure to unlock growth in mining industry and related sectors

5.1 Progress: Long term measures to support growth and stability

5.2 Challenges : Long term measures to support growth and stability • Inadequate infrastructure to unlock the mineral development potential of the country

DEPARTMENT OF PLANNING MONITORING AND EVALUATION