NUM Secreteriat Report 2012

Accordingtoasurveyconducted South Africa has a large civil
by the Labour Research Service service, many state-owned
(LRS) in 2009 the average companies, and protected
annual remuneration for an cartels in many industries.
executive director was R6. 44 Government contracts account
million, chief executive officers for a quarter of the economy.
received R10.46 million, and The Gini co-efficient measures
non-executive directors earned South Africa as one of the most
R522, 000. A low-wage worker unequal societies in the world. It
would therefore have to work is therefore to be expected that
16.5 years, 203 years and 330 the majority have evidence that
years to earn what an average top executives earn excessive
non-executive director and CEO multi-million rand packages in
respectively were paid in 2008. a country where 25 percent of
the population is unemployed
and 40 percent live in poverty.

Directors Wage Gap, 2009. All Sectors of RSA Economy

The South African problem is the economic performance of
in having an advanced First the company.
World society living alongside
an impoverished Third World In 2009 BHP Billiton was
society. Unlike the price of gold leading the way in executive
that is determined globally, remuneration, followed by Anglo
the price of executives is American Plc and Lonmin.
determined among themselves, These firms all paid out over R20
in some cases irrespective of million on average to executive
directors in 2009.

101 Secretariat Report to the 14th National Congress 2012.

Highest Paid Elementary Workers ( Labourers) in 2011 (CONT.)

Figure : Highest Paid Executives Directors in 2008/2009

Company Name Sector Average Remuneration Change in NPBT
Annual Change (%) (%)
BHP Billiton Mining Remuneration in
Anglo American Plc Mining 2009 34 -39
Lonmin Plc Mining R’000 -10 -52
Anglo Gold Ashanti Mining 37 *
41,236,617 29 *

20,465,550

20,039,164

17,488,500

What this shows is that executive unfortunately, resulted in over
remuneration does not adjust one million workers losing their
with company performance, jobs during this period.
even very poor performance.
The landscape of executive 3.4.1.9 b) The Wage Gap
remuneration has become far
more “sophisticated” in recent When we consider the income
years with the introduction ratios that have gone into
of incentive schemes. orbit: Pine Pienaar’s R63-
Performance of the individual million package is 1 278 times
companies is, however, by no larger than the lowest-paid
means a determinant of CEO worker (R4 106 a month) –
remuneration. and without benefits – at the
flagship Northam Platinum
The average worker, according Mine where he was the CEO of
to statistics published by Mvelaphanda Resources (now
Statistics South Africa, earned Bauba Platinum CEO); and
R124 457 in the year ended June BHP Billiton’s Marius Klopper not
2009. It took just about three far off with R54 million which is
months on average for a CEO 503 times that of a labourer/
to earn R1-million while it will take elementary worker at BECSA
the average worker eight years coal mine. If the wage of the
to earn the same amount. lowest-paid worker who is on
“permanent casual” typically
This is notwithstanding the employed by a labour broker is
financial crisis and onset of used, the ratio almost doubles
the global recession which to over 1000 to date.

102 Secretariat Report to the 14th National Congress 2012.

The Pay Gap in RSA Economy 1994 - 2010. CEO of intermediate sized firm vs lowest
level worker

These mining and construction average workers – in the firm.
companies are among South Then it becomes clear that the
Africa’s biggest and most are same principles of pay are not
global players. Few companies applied across the board and
compare with them in size you can begin to ask questions
and executive remuneration. about how low wage increases
However, though the vast are justified.
majority of firms are far smaller,
the trend of escalating pay is the As to what determines the size of
same. In medium-sized firms – a the executive’s pay packet, the
company with between 1 000 answers are not clear. What is
to 2 500 workers and a turnover the value of their work that drives
of R100-million and R500-million their pay to such levels? The
– the ratio between the highest broader question is perhaps:
and lowest paid worker stands what is value?
at 55:1, after reaching a high of
58:1 in 2008. Perhaps their value is
determined by the value
The wage gap ratio is useful directors create in the firms they
because it gives a real feel to the run, their fees by the success or
differences in income between failure of the firm rather than their
the high-paid executives and the value to the wider community.
workers in the way it is expressed. However, an empirical study
A director’s remuneration figure of 326 South African firms
may be high but perspective by Computes Accountants
is gained on just how high it concluded that “performance
is when it is compared to the of the individual companies is
income of other workers – the …by no means a determinant

103 Secretariat Report to the 14th National Congress 2012.

of CEO remuneration. Although The background of this is
slightly stronger, there is also the debate concerning the
no convincing indication that direction of economic policy.
company size is a determinant The government in the past two
of CEO remuneration: the huge years published the Industrial
gap between (CEO) pay and Policy Action Plan (IPAP), the
that of the average worker is New Growth Path document
by no convincing means the and now the National Planning
result of exceptionally talented Commission has published
performances.” its Diagnostic Overview. A
common thread running
Overpaying leaders of badly through these texts is South
performing companies is having Africa’s unemployment crisis
far-reaching effects on jobs and and strategies for creating jobs.
the global economy. This seems to be the opening
for the corporate ideologues
3.4.1.10 Why We Need a Living to unashamedly promote a
Wage Campaign set of failed policies, namely
deregulation and liberalisation.
The ideologues of business The very set of policies that are
have started a systematic and widely understood to be the
sustained campaign against cause of the Great Recession
the wages and the laws that and the long crisis gripping the
protect workers. The jobs crisis global economy.
is central to their campaign
and deregulation is their Years of neo-liberal economic
leading song. Opinion pieces, policies-economicderegulation,
columnists and letters in the liberalisation, privatisation, lower
business press appear as voices taxes and profits at the expense
of the same choir conducted by of wages - resulted in a massive
single-mindedness to attack the redistribution of wealth from the
alleged rigidities of the labour poor to the rich.
market and other regulations
that undermine the so called
economic freedom.

104 Secretariat Report to the 14th National Congress 2012.

In this period of economic wage earners have to support
crisis the powerful elite seek to so many people, many
pass the costs of the crisis onto working households live near
working and poor people. or below poverty line” (NPC,
Hence, the unemployment Diagnostic Report, page 11).
crisis is not seen as a result of
wave after wave of corporate Take into account the steady
restructuring where millions of decline in wage share of
workers are retrenched from national income down from
the workplace as businesses 56% in 1996 to less than
tried to maximise profits in a 47%, and the reason for a
period of declining demand combined struggle of the
and stiff competition. Rather, labour and social movements
supposedly high wages for decent work and a living
and remaining regulations wage becomes obvious.
that protect workers are
opportunistically driven out by 3.4.10 a) Housing:
the captains of industry as the
cause of unemployment. Developments on housing
and accommodation are
As can be seen from the graph influenced and driven by the
above, data from Statistics Mining Charter requirements
SA has shown that ever since which aim to:
the end of apartheid, profit
share of national income • Convert and upgrade hostels
has increased over the wage (high density residents) into
share. family units.

Despite the ideological • Attaining the occupancy rate
of one person per room by
onslaught against wages 2014.

increases that workers are • Facilitate home ownership
options in consultation with
receiving, the National Planning organised labour.

Commission’s diagnostic • Providing adequate health and
nutrition.
overview report states that a
Further to the Mining Charter,
third of all employed people we are also guided by the
Housing and Living Conditions
earn less than R1, 000 and half Standard for the Mineral
Industry of 2009 which buttress
of all employed people earn the above and also add the
following amongst others, for
less than R2, 500 per month. a decent standard of housing
for mine workers:
The same NPC report points
• That the current and future
out that many working families housing developments must
be coordinated with the
in SA experience grave poverty structure of mining towns
and settlement;
because of the high number

of dependents that share in

the wage of the ‘lucky’ few that

have employment.

We all know that a single
worker supports as many
as ten dependents without
income “because many low-

105 Secretariat Report to the 14th National Congress 2012.

• That provision of family housing As per the requirements of the
should be associated with Mining Charter, the following
expanded community services must be addressed as it relates
and facilities including to Housing with the participation
education,healthcareservices of stakeholders:
and social wellbeing;
• Privacy.
• That the mining companies in
consultation with other • Family Accommodation and
stakeholders shall assist
financially and facilitate the • Home Ownership.
acquisition of land within close
proximity of the mine and plan Following is how the different
their housing needs in support mining houses have fared on
of compact, integrated and the requirements of the Mining
mixed land use environment. Charter.

Some mining houses are 3.4.1.10.1.1 AngloGold Ashanti
more aggressive and earnest
in addressing the plight of Conversion and upgrading
accommodation of their of residences to obtain the
employees and aligning occupancy rate of one person
with the above mentioned per room by 2013, progress 43%
documents while others are
less aggressive or lacklustre. o Total number of rooms
completed, end 2011,

o Total number of rooms
completed, end 2013.

Region Rooms Completed 2011 Planned 2013 Total Expenditure
Vaal River 2368 3423 5791 R243.6m
West Wits 2261 2694 4955 R185.6m
Total 4629 6117 10746 R429.2m

Conversion and upgrading of vacant residences into married accommodation by
2013, progress 68%.

The table below indicates the total number of new units built and planned by 2013

Region Completed 2011 Planned 2013 Total Expenditure
Vaal River 142 71 213 R53.07m
West Wits 260 104 364 R50.236m
Total 402 175 577 R103.306m

106 Secretariat Report to the 14th National Congress 2012.

• Home Ownership. houses will be done in the
next 3 to 4 years in the above
There is very slow progress mentioned areas.
on this matter. There are
processes the housing forum The housing forum will decide
has undertaken up to now. A on the home loan product.
housing survey has been done Current houses in Orkney, Vaal
and the majority of employees River, Fochville, Carletonville,
show that they are prepared Wedela and Western Deep
to buy houses. Levels are 5, 308. The number
of employees who enjoy a
Land has been identified for living out allowance is 12, 589;
housing purposes at Vaal River the number of employees who
and West Wits respectively. reside in the hostels is 12, 176.
A development of 600 new

3.4.1.10.2 Anglo Platinum.

The table below illustrates the housing benefit spread

Total number Home Housing Bond Living Out Company Number of
of employees Ownership Housing Employees in
Allowance Subsidy Allowance Company
3673 Hostels
49443 5436 119 26236
13979

3.4.10.3 Home Ownership Boitekong
projects
o 2nd Housing Project in
Seraleng Rustenburg

o A total of 5,000 units are to be o A total of 2,000 units to be
built as part of Seraleng. built during 2012

o Province and municipality 3.4.1.10.4 Northam and
completed 3,200 units Thabazimbi

o Anglo Platinum has o Land parcels identified in
commenced with the building both Thabazimbi and
of 1,000 units out of the 1,800 Northam for junior
remaining units managers.

o More than 200 families have o Land parcels identified in
moved in so far. both Thabazimbi and
Northam for low income
o 3,500 applicants have been housing
declined
o Project underway at EXT 6
o 300 on waiting list, (310 units already built), with
1200 employees signed up
o 13,000 job opportunities for ownership already.
created since inception of the
project

107 Secretariat Report to the 14th National Congress 2012.

o Northam Ext 17 process Next Focus area.
completed with a potential
of 680 units, 6 show houses o Enhance department
completed; project was duly rehabilitation for 4 years.
launched by the minister of
Human Settlement and the o 400 volunteers have signed
company’s CEO already.

o All rent to buy until they are
fully rehabilitated

3.4.1.10.5 Goldfields.

The table below indicates the delivered hostel conversions and upgrades.

Hostel Rooms Planned as per Room Delivered Room Outstanding
SLP
KDC EAST 801 21
Kopanang 822 323 101
Leseding 424 438 21
Nkululeko (Conversion) 459 1562 143
Total KDC EAST 1705

The table below indicates the delivered hostel conversions and upgrades.

Hostel Rooms Planned as per Room Delivered Room Outstanding
SLP
KDC WEST 679 -65
Masizakhele 744 361 0
Ekuthuleni( Conversions) 361 283 -12
TSHEPONG 295 1323 -77
Total 1400

It is against this background the construction industry, with
that the NUM launched a greater intensity.
‘minimum living level’ in 2009
to counter the offensive from Since unemployment and job
capital, now and in the future, losses are such deep crises
which has, so far, brought the in our society, the NUM, as
minimum wage level in the part of COSATU, will build a
union on par with the rest in common struggle with key
the economy. This campaign, social movements in fighting
however, should be rolled out not just for a living wage but
across the union, especially full employment for all.

108 Secretariat Report to the 14th National Congress 2012.

3.4.1.11 Summary and Way in the construction industry
Forward pointless. Improving conditions
of work and wage levels is
The National Union of what members have joined
Mineworkers is the single largest the union for and this is what
tradeunioninallthethreesectors we have successfully delivered
that we organise. It commands over many decades.
respect in government,
employer organisations and Secondly, we need to seize the
the community at large and
is the driver of enforcing unity opportunities we have and go
in the terrain of collective
bargaining. Whilst this scenario back to training negotiating
exists we continue to harness
the potential we have to grow teams. The crop of seasoned
our membership. We cannot
ignore the reality that we are negotiators that we had are
not signing up all potential
members in every region and either retiring from employment
workplace.
and organisational activities
We have diverted from doing
the basics right: enforcing or have been promoted
planning sessions where
we analyse economics and to higher positions within
finances of enterprise to chart
negotiating strategies. This management structures.
has led to some instances –
though small and isolated Regions, as circuit-breakers,
– where they tend to blemish
the union’s public image have the responsibilities of
and lead to splinter unions
making inroads by promising verifying draft agreements
members ‘heaven-on-earth’.
This has also led to members before they are signed to
being frustrated with the
organisation because the ensure that they conform to
final product – the substantive
wage agreement – is not the union agenda. The union
worth the paper it is written
on. It only reflects percentage should enforce the execution
wage awards that bear no
significance to nominal wage of this responsibility without
rates and at worst, some chief
negotiators cannot tell what fail.
the minimum wage rates
are and why they signed As we meet with our members,
them. These wage agreements we need to educate them
cannot be implemented at on the effects of international
all. This poor showing renders capital on their working and
the decent work campaign living conditions instead of
convincing them that there is no
alternative to the competition.
They need to know:

• Why Resist?

• When to resist?

• Global trends and working
conditions

• National context

• Legal environment

• Organisational strengths and
weaknesses.

In analysing ourselves in the
terrain of bargaining can
we honestly respond to the
following?

109 Secretariat Report to the 14th National Congress 2012.

• How many of our stated chose to report beyond
objectives guide our practice? reality, which resulted in
widespread dissatisfaction
• Do we still have a class enemy amongst members. The NUM
to confront or have we started is a voluntary organisation.
to look for it from within? We join and serve its
membership and structures
• Do we still share a common out of our own preference.
vision? Anyone who behaves in a
manner reminiscent of a
• Are we still a collective at criminal shall be dealt with
all levels? If not, how does any accordingly, without fear,
degree of fragmentation assist favour or prejudice.
capital in advancing its own
objectives? 3.4.1.11.1 Mandating
Processes in the
• What lessons can we draw NUM
from other trade unions at
home and internationally to It is correct that the word
improve our own engagement ‘democracy’ forms part of the
strategies? name NUM, but, it needs to be
defined contextually. Having
• How are we supposed to made observations above,
approach collective bargaining the following questions need
drawing from the lessons over a response:
the Growth, Employment and
Redistribution (GEAR) strategy? o Does the pace of negotiations
allow the time and space to
It must emphatically be reach every member prior to
stated that we continue to getting a mandate? If not,
lay blame, at times correctly what can be initiate between
so, without considering the the bargaining rounds?
state of the organisation at
every level. What makes the o Is NUM consistent in seeking
NUM democratic if there mandates from all structures
is blatant evidence from of the union?
members that information is
not filtering to the very lowest o Are mandates created on every
level of the organisation? Are issue or are they derived in the
we not equipping capital to mission of being a trade union?
mislead and at worse, sack
our members because we o How do we assess previous
represent them poorly or mandates on the same and
not at all? How strategic are similar issues?
we in assisting members to
understand their role and In responding to these questions,
conditions of employment? we suggest as follows:

When we look at the last three • Call for speedy (and
years, we can see that not procedural) processes in
all of us in the organisation accessing mandates;
were reading from the same
hymn book. A case in point • Analyse a range from which
is the Impala Platinum wage to work;
debacle where some leaders
• Define structures that
authorise mandates;

110 Secretariat Report to the 14th National Congress 2012.

• Be consistent on all issues at cannot always disclose its
every level of the union. operation on key sensitive areas
as our membership come from
3.4.1.11.2 Role of Leadership divergent backgrounds? Where
do we draw the line?
We have learnt that the
respect for the democratic • In instances where members
process in the organisation is have consistently complained
a fundamental principle that about the accountability of, say
everyone must appreciate a Chief Negotiator, we need to
and such a principle is act on such complaints, no
non-negotiable. We need matter how nebulous they may
to ensure that we deepen seem, with a view of assisting the
such an understanding and process. In instances of blatant
culture. While we need to disregard of members and
restore it, the following needs structures including arrogance
to be done: of an individual, such conduct
should not be tolerated.
• There is a greater need to
clarify decisions taken including While we do evaluations of
briefing of members of such union performance for the last
decisions and their implications three (3) years, Congress needs
to the socio-economic, political to resolve on the following:
environment and organisation.
We expect leaders to desist from • Monitoring the way bargaining
unilateralism at all levels. reports get delivered from
national to all structures of the
• The principle of democratic union.
centralism is well understood
and that we are compelled • How we co-ordinate regional
decisions taken regardless of mandates such that they
resolution was arrived at. guide national deliberations.

• No external organisational • Managing dispute resolution
mandates or influence whether for members.
open or hidden should be
used to undermine internal • Enabling capacity of leaders
democratic processes. We in bargaining teams and
derive our mandate from our being able to project the
members and our engagement Union’s position to structures.
should be primarily through
formal robust engagement. • How do we strengthen capacity
and recall expertise that is lying
• The constitution of the union idle?
delegated responsibility to
all elected leaders of the • How do we sustain and grow
union and leaders to appoint the current crop of negotiators?
staff and in executing
these roles, leaders (elected There has been concern and
and non-elected) have been complaints from members on
responsible, accountable and the conduct of some leaders
consistent. Whilst this principle of bargaining teams. We hope
remains, various strategies and that this National Congress
tacticsare employedin handling shall debate these issues as
collective bargaining issues. raised herein and draw our
Does it mean that leadership own experiences from our
various branches, mining

111 Secretariat Report to the 14th National Congress 2012.

houses and sectors, and more The stewards’ councils need to
than anything else, from our be managed organisationally.
participation as members of These are very important
the NUM over the past years. forums which helped drive
past campaigns. However,
3.4.1.11.3 Capacity Building there are tendencies to turn
these forums into terrains for
Whilst the union prides itself internal struggles. We register
in having produced some our displeasure about the
of the best negotiators in the manner in which some people
labour movement and politics, in these forums have behaved.
we equally are experiencing Stewards councils remain
difficulties in realising benefits unconstitutional structures and
for members due to budget their duties are to co-ordinate
constraints. This is posing the campaign work in each
challenges in affording capacity company or sector.
to negotiators, especially at the
regional level. The only time There are communication
that is set aside for preparations forums which focus on
for pre-wage negotiations, conditions of employment
especially at regional level, is a of workers in companies
day before actual negotiations. and these should formulate
It is not possible, in most responses to matters such as:
instances, to bring together
the negotiating team some o Racism
days before talks commence.
This has led to poorly prepared o Lack of transformation
demands being forwarded to
management with members’ o Housing
hopes raised very high only for
deals to cover wages only, in o Health and safety
some cases with a percentage
award that bears no semblance o Skills development issues
to wage levels at that company.
The union should therefore go
The current crop of negotiators,
especially organisers, take on back and intensify training on,
shrewd managers who know
how to draw concessions from among other courses; “Analysis
the union. Most run for cover
and hope that someone from of Economics and Finances
the head office comes to
rescue them. Lead teams in of Enterprise for Collective
most cases lack training on
the fundamentals of analysis Bargaining” and “Trade
and bargaining. The signed
agreements are therefore Unions and Wage Bargaining”
detrimental to the union and
in most cases, cannot be while complementing this
implemented.
with political education. This

problem could be overcome if

we utilise company resources

and despatch union

facilitators to their training

sessions. We did this before

and we can continue using

such measures to train more

layers of expert negotiators,

while we preserve union funds.

112 Secretariat Report to the 14th National Congress 2012.

3.4.1.11.4 In Conclusion for care and maintenance.

The seriousness with which we CAPM is co-managing with MEAC
are prepared to look at all of in order to prevent further asset
the above and grapple with stripping, amongst other things.
them will go a long way towards The liquidators wouldn’t hand
helping our endeavours to over the mine to CAPM after the
regain lost ground. If we, Aurora experience where the
at this National Congress, mine was handed over without the
continue to be defensive, purchase price being paid. We
dismissive and obstinate, we still await Reserve Bank exchange
run the risk of destroying our controls for the deal to be finalised.
beloved National Union of It had been that the deal would go
Mineworkers. through in October.

Democracy is the bulwark of The branch and regions made
freedom! Robust debate is the comments on the Termination
bulwark of democracy! We are and Recall Agreement which
a working class organisation is now being scrutinized by the
but learning from everything legal unit. With regard to Pamodzi
and everybody is the essence East Rand, there is nothing
of humility. Let us collectively significant to report except that
debate possibilities to defend the liquidators are still waiting for
our hard-earned struggles. an interested buyer.
This section presents a broad
exposé of issues; they are not (ii) Autumn Slate Quarries (Wage
intended to provide answers demands leading to company
but to debate possibilities and failure)
alternatives.
The owners have paid an ex-
3.4.2 Legal matters gratia settlement amount as the
legal advice received was that
3.4.2.1 Major cases we would not win a compulsory
liquidation as the company has
(i) Pamodzi East Rand and not been trading for a year and
Pamodzi Orkney and Aurora there would be no money from
Empowerment Systems the company.
(Liquidation)
Arrangements are being finalised
China African Precious Metals to explore whether the North
(Pty) Ltd (CAPM) has been West Department of Economic
picked as the preferred bidder of Development would be interested
Pamodzi Orkney for the purchase in assisting the employer to revive
consideration of R150m less the the company, even though the
replacement value of any of the situation seems bleak because
Verification Assets which do not the employer is also liquidating his
form part of the Asset Verification other adjacent company in the
Record. This condition is as a same business. The approach is to
result of asset stripping which has facilitate some form of employment
taken place and is still continuing irrespective of whether it is the
with MEAC which is responsible current employees or not.

113 Secretariat Report to the 14th National Congress 2012.

The pension funds were paid out (iv) De Beers Kimberley Mines
after the employer agreed to pay Social and Labour Plan (2006
for some the months when the and 2007 Retrenchments)
workers were on strike. The lesson
to be learnt from this case is that De Beers did not comment on
the union must always assess the draft Trust Deed for several
the effectiveness of a strike and months and this confirmed our
know when to bow down to an suspicion that the company
employer unwilling to increase was unwilling to contribute to
their offer. Workers jobs should the social and labour plans
never be compromised. provisions. Only after the
intervention of the chairperson
A similar case happened in North of De Beers Consolidated Mines
West Taung Marble (Kimberley and a threat to approach the
Region)in2009wheretheemployer ministry, did the company revert
filed for voluntary liquidation after to us with comments on the Trust
workers demanded an increase Deed.
averaging R2, 000 where the
average salary was about R1, 000 Progress
per month.
• Comments on the Trust Deed
It is recommended that a pre- and the company’s response
bargaining financial enquiry are finalised and the Trust Deed
strategy be developed especially is to be lodged with the Master.
in small scale companies, to
investigate their affordability • The R5m of the SLP was
compared to total loss of jobs committed in 2007 but we have
taking into account the issue of been stuck with the issue of
decent work and a living wage. whether the union or De Beers
should pay the R40, 000 to draft
(iii) NUM vs De Beers Exploration the trust deed. At an interest
(Retrenchment and consultation) rate of 5% per annum, which is
minimal, the R5m could have
De Beers has reinstated the two generated R250, 000 and in
members who remained from 1 four years, R1m. The members
September 2011 but they still have have therefore lost an interest
to pay them the salaries and opportunity of R1m.
benefits, including subscription
fees, for the last two years. • Based on the above, it is
recommended that the
We have finalised the employment Finance Committee be
contracts on two conditions; bestowed with the authority to
firstly that the reinstatement be assess proposals which can
subjected to pre-testing, although generate work opportunities
we are aware of the provisions of for workers, especially those
the Mine Health and Safety Act’s retrenched. The idea being
provisions and secondly, that the that the structure applying for
contract not be subjected to a such ‘funding’ might need to
five days’ notice but two weeks’ return that money once it is in
notice. full operation and probably
with interest. This proposal is

114 Secretariat Report to the 14th National Congress 2012.

made despite the fact that (vi) MCC Contractors Strike and
there is the Mineworkers Arson (Union bashing)
Investment Company (MIC)
and Mineworkers Development The company has re-employed
Agency (MDA). These two the bulk of the employees and
operate more on a capitalist a minority is going through
and profit outlook than social disciplinary hearings. We are of
orientation. the firm belief that MCC should
be treated as a special project
(v) Blyvooruitzicht and DRD Gold because of its anti-union mission
Ltd (Liquidation and company or we will forever have cases with
rescue) MCC on our books.

We reported that Blyvooruitzicht (vii) Rappa Hodings (PWV)
“filed for a corporate business (Union bashing and defamation
rescue application in terms of of character)
section 45 of the Companies Act,
2008 as a company in distress”. The company has dismissed
The company has now obtained all members of the Branch
an order compelling the workers Committee, except two, for
to work ‘compulsory overtime’ alleged misconduct during a
and not embark on a go-slow. We protected strike. The matter is at
obtained advice on compulsory the CCMA and has been partially
overtime confirming our initial heard. This is the first branch in
assessment that an employer can the history of this company and
compel workers to work overtime we have to ensure that it is not
in circumstances of a business weakened by the dismissal of the
rescue otherwise the court would branch’s executive.
sympathise with the employer if
they filed for retrenchment and/ On the other hand, the owner
or liquidation proceedings as a of the company flew from Cape
last resort. Town to accuse the two remaining
branch executive members
It should be noted that DRD of theft of processed minerals
Holding wants only to benefit from and asked them to leave the
Blyvooruitzicht’s proceeds as its company. We are proceeding
subsidiary but would not want to with a case of defamation of
share in their losses. The technical character because if we do not,
issue remains of companies the branch will be in a weakened
being co-owned but retaining position which will lead to the
individual identities as limited demise of the union.
companies, yet this is recognised
in terms of company law. To clarify (viii) Barplats Crocodile River
the responsibility and liability of Mine (Freedom of speech)
a holding company towards its
subsidiaries in relation to workers Barplats launched an urgent
and vice versa, a legal battle has application at the labour court
to be waged and it would be at a seeking an interim interdict
great cost to the union. against the NUM for a press
release issued by the media

115 Secretariat Report to the 14th National Congress 2012.

unit. In the notice of motion, the like. We are cognisant that it will
applicant sought the following be costly to defend this case but
orders: the consequences would be far
reaching for the union in general
• Interdicting and restraining and not only the NUM.
the first respondent (“NUM”)
from making a statement of The company lost the case on
a threatening, defamatory, the grounds that they could not
inciteful, provocative and prove that there was urgency
inflammatory nature; on the case. The case was then
struck from the roll. The court did
• Interdicting and restraining not go into the second part of
NUM from instigating and/or the argument because the union
inciting violence; was entitled to have its say as
part of freedom of speech. The
• Interdicting and restraining company has now re-enrolled
NUM from calling the individual the matter on a normal court roll
respondents to conduct and the matter will probably be
themselves in an unlawful heard sometime in 2012.
manner;
(ix) South Deep (Goldfields) vs
• Interdicting and restraining NUM (Social and Labour Plans)
the individual respondents
from carrying out the threat This matter concerns the
of violence contained in the disagreement on the contents and
NUM press release dated 21 implementation of a Social and
June 2011 (“the press release”) Labour Plan (SLP) as regulated
and/or any other violent and/ by the Mining Charter and
or unlawful conduct; especially regarding who has the
last word regarding content and
• Ordering that NUM issue a implementation. It was the view of
further press release retracting the company that they have the
the threat of violence last word and the union’s view was
contained in the press release; that this is a consensus process
and where the parties do not
• Ordering that NUM agree, the court should intervene
as an arbiter.
communicate publicly to the
To demonstrate the above, part
individual respondents that of the content of the SLP was for
the company to create car wash
they must act lawfully and businesses in the rural areas and
the union’s view was that such
peacefully and not cause a business was not sustainable
in a rural setting where there
any harm to any employee or were limited cars in the villages.
A beneficial project would for
property of the applicant. instance be agricultural food
production because there was
The Union could have simply
retracted the media statement
and that would have been the
end of the story but we had
to fight the case on principle
because had we retracted, all
the employers would use the
retraction to demand the same in
cases of statements they did not

116 Secretariat Report to the 14th National Congress 2012.

plenty of land that was lying fallow junior and senior counsels who
which could be used productively were on brief. The costs of two
by, for example, constructing counsels amounted to R313, 056,
irrigation systems, fencing off excluding fees for the attorneys.
the lands and cultivating them, The wasted costs were allowed in
cattle breeding and feedlots etc. favour of the NUM at R184, 132.68,
including costs of two counsels
The company’s case hinged and the attorneys and the money
on the fact that the union was was paid by South Deep to the
frustrating the finalisation of the union.
matter (SLP).
This is one of the cases where
The second leg of the matter legal fees could ordinarily be
and precedent setting was the seen to be in vain but in fact,
determination of whether the we were on the verge of setting
workers could go on strike as a a precedent which would have
result of the mine and the union benefited all the mineworkers
deadlocking on the projects that and not only NUM members at
should be undertaken from SLP South Deep.
commitments. There was also the
of whether there could be a strike (x) Anglo Platinum (Swartklip) vs
as a result of a mine delaying to NUM (Equalisation)
finalise SLP documents thereby
postponing the gains to the This matter concerns the following
mining communities and labour. issues, some of which hinge on
disparities for Anglo American
We were confident in our case and Corporation as a group;
to confirm our understanding,
the company withdrew the case • Averaging and equalising
just before it went to court and allowance (learner miners and
called the workers to a meeting stope servicemen) – the allowances
to resolve the differences. Had of these officials are not the same
the matter gone to court, it would within Swartklip and although
have clarified the legal issues the company agreed to rectify
raised under 3 and 4 above and them more than 12 months ago,
the law would have been clearer they have not implemented and
on the rights of employers and backdated them to December
employees regarding the SLPs. 2009
Importantly, for all the other
SLPs where there is a difference • Housing committee – the
of opinion on content and workers are not given a seat
implementation, it would have on the housing committee
been clarified whether we can and there is preference for
go on strike and who has the whites
last word regarding content. The
matter therefore remains legally • Team supervisors’ salaries –
open-ended. the team supervisors’ salaries
are lower than those of their
The company has agreed to pay juniors as a result of the
our costs, including costs of our retention allowances provided

117 Secretariat Report to the 14th National Congress 2012.

to the artisans. This is unfair to This matter concerns a dismissal
the supervisors as managers due to a strike which was
and is creating instability both undertaken partly due to denial
in the union and with the of the recognition of the union at
workers. a new branch. The owners are on
record, arguing that they will not
• Similar salaries for the same allow the union to operate and
jobs across Anglo Platinum – they would fight the union ‘to
most employees at Swartklip death’. This was evident from the
are earning less than those way they dismissed everybody
at Anglo Platinum operations who joined the union including
and management does not those who were on leave during
deny this and yet they have the protected strike.
failed to equalise the salaries
More than 40 workers were
The above matters were heard dismissed for different reasons and
at the CCMA and could not their cases were consolidated.
be resolved and a certificate Cheadle Thompson and Haysom
of a strike was issued but the Inc. attorneys were engaged and
company got an interim order the arbitration involved advocates
for an interdict. Before the from both sides. The matter was
return date, the parties agreed decided in our favour and the
to an internal process after combined compensation and
we threatened that we would reinstatement order was R863,
challenge the practices of the 415.17. This compensation is in
company at the Equality Court respect of only 12 applicants whose
and through the Department of salary details were available and
Labour on employment equity. testified in the hearing. It therefore
excludes more than 75% of the
It is our firm belief that inequality affected workers.
and discrimination issues
are generally straightforward The commissioner was scathing
and embarrassing to the on the conduct of the company’s
employers and there should representative on the matter
be a campaign where these concerning the handover
issues are addressed once and of proof of earnings of the
for all. No single company and remainder of the workers. For this
its directors would want to be reason, a variation order was
hauled to the Equality Court done for the earnings of all the
about preferential and decent dismissed workers. The company
housing for whites compared to has reviewed the award and
blacks, and the same goes for the hearing and judgment will
salaries. Bad publicity affects probably be handed over in 2012.
shares negatively and such a
campaign would accelerate the (xii) United Manganese
equalisation process. of Kalahari (UMK) (Offering
incentives to non-striking workers)
(xi) NUM vs Protech Kuthele
(Dismissal during a protected This case concerns a refusal by
strike) the company to recognise the

118 Secretariat Report to the 14th National Congress 2012.

union during a wage strike. It common fact that when people
offered those employees who get older, their reaction and
agreed to resign from the union speed diminishes and therefore
a 10% increase and those who the employer should consult the
remained in the union a lesser union on available options which
percentage. would not be prejudicial to the
members.
It is settled law since 2000 when
our courts decided that it was The unanswered question is
contrary to section 5 of the LRA therefore what should be the
and unconstitutional to offer a solution to an employee who fails
benefit to other workers in order to the test as approved by the DMR,
discourage them from exercising taking into account our emphasis
a right to strike. on safety at the workplace.
What if there is no alternative
The matter has been settled employment?
but there is a need to engage
the company on change (xiv) Galaxy Gold Reef Mine
management like we did with (Interdict during a protected
MCC. This case is similar to the strike)
MMC contractors as Chancellor
House is a shareholder and an For some peculiar reason, the
accomplice to union bashing mine approached the Magistrate
of a tripartite partner. This is one Court to interdict an alleged
of the cases where naming and misconduct during a strike and
shaming is relevant. the magistrate granted the mine
the order although in terms of the
(xiii) Dova Testing – Harmony Labour Relations Act, the Labour
Gold (Free State) and Lonmin Court has jurisdiction in such
(Rustenburg) matters. Upon us challenging
the magistrate’s jurisdiction, the
Dova test is a test where workers magistrate voluntarily set the
using machinery are subjected to order aside without consulting us.
a “reaction testing and response”
as a continuous process to assess Strangely, the company brought
whether workers would be able the same application again
to react to dangerous situations in the same Magistrate Court
timeously in order to avoid and the magistrate assumed
accidents. The main problem jurisdiction. We had to defend the
with the test is that workers who action again. We had a serious
are found not to be as quick as suspicion that the intention of
they are expected might not be the interdict was to weaken the
promoted and there is a remote strike while putting pressure on
possibility that an employee the Magistrate in the small town
might even be dismissed. where mine managers and those
in the legal fraternity sometimes
The test is approved by the DMR move in the same circles.
but the problem is that the union
is not being consulted in the case It was also the intention of the
of a person failing the test. It is a company to have an order so

119 Secretariat Report to the 14th National Congress 2012.

that at the slightest provocation, • Current Pensioners - whether
they would arrest our members current pensioners would
and further weaken the strike with remain with De Beers Pension or
continuous contempt of court would also have to join the Petra
proceedings. Ultimately, a wage Pension Fund. It was confirmed
agreement was concluded. that current pensioners would
remain with De Beers
(xv) Takeover of De Beers Finsch
Mine by Petra Diamonds (s197) • Ponahalo shares (De Beers
Equal Allocation Trust (EAT)) –
The matter was lodged with the whether workers would forfeit
Competition Commission before their shares when they left. It was
the members and the unions revealed that Finsch workers
were consulted as regulated by would benefit twice as they
section 197 of the LRA and the would retain their shares which
Competition Act. are vesting in 2014 and also
acquire new shares at Petra.
There was not much that could
be done about challenging • Social and Labour Plan –
the takeover as De Beers was Finsch confirmed that they
planning closure of the mine would continue with the SLP
between 2014 and 2015. Petra in force and would undertake
would mine section 4 for 20 to 30 obligations under such SLP.
years, as De Beers was claiming There was no commitment
it did not have money to mine regarding whether the SLP
that section on the grounds that funds had been transferred or if
it was deep mining and costly. it was the responsibility of Petra.
The less said about De Beers not
affording deep mining the better • Corporate Social Investment
as we know that they have a (CSI) – the union indicated that
programme of offloading their De Beers, after mining in the
old mines and mining elsewhere Northern Cape for more than
where it is lucrative, like the sea. 100 years was now leaving
the region with no legacy.
We had a meeting which was De Beers indicated that they
attended by the CEOs of both had appointed a heritage
De Beers and Petra Diamonds manager to overlook legacy
and we are yet to finalise an project for De Beers through De
agreement on the following Beers Fund. We can only hope
issues: that the fund has enough
money to leave a legacy
• Pension Funds – whether the
Petra Pension Fund would • Retrenchment packages –
have the same status as that the union wanted to know
of De Beers Pension Fund. whether members would be
Both employers committed free to apply for retrenchment
to providing actuarial values packages. Petra indicated
of individual members so that they were preserving
that workers can do an jobs and there was therefore
independent assessment. no need for retrenchment
packages.

120 Secretariat Report to the 14th National Congress 2012.

• Loss of benefits on promotion possible.
– there is already loss of
benefits by employees who Complaints
get promoted because it
is a condition that when A. Mohapi v De Beers Pension
employees assume new posts, Fund – Kimberley Region – the
the diluted Petra conditions complaint is against Cheadle
kick in. Thompson & Haysom Attorneys

Once the memorandum of B. Sempe v Kumba Iron Ore –
agreement is signed, we will KimberleyRegion–thecomplaint
present it at mass meeting where is against the paralegal officer
we will explain that there is no and the regional office
way they can be paid out their
pensions or any retrenchment C. Baotlwaeng v Kumba Iron
package and that in fact, their Ore – Kimberley Region - the
jobs are being saved for a complaint is against Isang
minimum of 20 years. Nakale Attorneys

(xvi) LEM Trust at Lonmin D. MokhoetsivHarmonyGold–Free
(Employee Share Ownership State Region – the complaint is
Project Schemes (ESOPS) against the regional office

The members of Masakhane E. Sidumo v Anglo Platinum –
Provident have been paid in Rustenburg – the complaint is
cash as beneficiaries of LEM Trust against the Head of the Legal
and we still await the details of Unit
the beneficiaries who cannot be
traced. Once all the beneficiaries F. Rotek, Rotrans & Roshkon (Re-
have been paid, the LEM Trust will engineering) – Head Office
be wound up. The workers got an – the complaint is against a
average of R10, 000 per member legal officer
in the six years of the existence of
the empowerment deal.

The pay-out and ultimate winding
up of LEM Trust means that there
is no ESOPS at Lonmin and the
process of formulating a new
empowerment deal for workers
has to be started as soon as

Table depicting trend of legal expenditure

Year 2008 2009 2010
Budget R18 001 495 R19 503 169 R20 301 770
Rand diff R 839 439 R 798 601
% increase 4.7% R1 501 674 3.9%
7.7%

121 Secretariat Report to the 14th National Congress 2012.

Table depicting trend of legal expenditure

Year 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

2009 RTB PWV NE HV WC KMB EC FS CLT MTS KZN
2010 4 502 2 870 1 308 523 1 329 2 052 120 190 167 861 240
2011 855 805 565 850 380 883 345 693 345 367 434
5 666 3 349 2 615 1 831 1 549 1 364 829 769 301 179 105
883 947 215 532 578 849 924 027 332 448 741
3 851 3 159 2 923 1 810 973 1 962 110 1 423 280 380 1 124
531 423 423 933 361 273 940 766 090 123 335

3.4.3 Retirement Funds retirement funds which, if
implemented would prevent
3.4.3.1 New Legislation members of provident funds
Governing Retirement Funds from withdrawing their full
lump sum on unemployment
(i) Divorce Act: Spouse entitled or retirement.
to a share of the member’s
fund credit as at the date of COSATU/NACTU and FEDUSA
the divorce, and subject to an pronounced in their declaration
order issued by the court of of the third Labour Constituency
law. Retirement Funds Conference
held in Rustenburg from the 03-
(ii) Maintenance Act: The Act 05 April 2011 as follows:
allows for future deductions
to be made at the time of • Conference is of the view
fund credit withdrawal. This that preservation cannot
is subject to a court order be implemented without a
attached to the members fund comprehensive Social Security
record. system being put in place,
including universal income for
(Iii) National Social Security Fund all unemployed;
(NSSF): This is a savings system
where the government is • Such a decision could not be
proposing mandatory reforms taken without a widespread
to ensure that all workers consultation and discussion
fall under this system and with affected workers;
will contribute together with
their employers towards their • Any discussion on the matter
retirement savings. has to take into account
the historical evolution and
There is currently little progress significance of this issue, in the
in this regard from the govern- context where many workers
ment. are facing unemployment
and poverty;
(iv) Preservation: Treasury has
proposed to introduce An investigation must be
compulsory preservation of undertaken as to how

122 Secretariat Report to the 14th National Congress 2012.

preservation, if it is to be ensuring proper fairness and
equity, and that workers are
adopted, should be dealt properly protected.

with under the following four

circumstances, including

3.4.3.2 MPF Self Administration Progress Report

Issue Achievement Challenges
2.Membership 134,000 Consolidation of the Admin
Platform for other negotiated
3.Claims 14,000 paid to date funds
4.Assets R19,5 billion=57,7% 7480 backlog claims taken over to
5.Portfolio Growth R1,3billion=5% the self-admin platform
R307million additional inflow To grow assets
from member contributions To grow the membership

3.4.3.3 National Trustee are representing members on
Training different boards across the
NUM sectors. The breakdown
To date 143 trustees have been according to regions is as
trained and a number of them follows:

Region Male Female Graduates Active Trustee
Carletonville 33 8 35 -
Free State 13 6 13 -
Eastern Cape 3 0 3 -
Highveld 17 0 12 6
Kimberley 14 3 11 9
KZN 8 0 7 -
Matlosana 16 0 11 -
North East 21 1 12 -
PWV 21 4 22 2
Rustenburg 7 0 4 22
W Cape 2 0 2 -
H/O 1 8 7 3

The Graph below provides an illustration of the gender breakdown of trustees trained.

123 Secretariat Report to the 14th National Congress 2012.

3.4.3.4 Implementation of the Consolidation Strategy
The following illustrates progress made on the implementation of the strategy to date:

Mining Achievement
Anglo-Platinum • Company and Fund agreed to pay the cost of harmonisation
• Death Benefit=4XAE across all company funds
• AGPF to have a Lump sum disability benefit

• Lonmin Masakhane Identified that all these funds are administered by the same
• Impala Workers Provident Fund Administrator
• Anglo Group Provident Fund To roll out extensive consultations with the regions for a possible
buy in, then approach the MPF for Administration only

• Iscor Fund Identified that all these funds contribution levels is at the same rate
• Samancor Chrome as the MPF
• Samancor Mangenese
• Richards Bay Minerals Consolidation of the Construction Reservoir Retirement Fund into
Mineworkers Bridging Provident the bridging fund to be finalised and is currently with the FSB for
Fund approval
• Funds issues embodied within the sectoral determination.
Civil Engineering • Fund rules direct the negotiations of increases to the
contributions, via the Negotiating Forum

Construction Industry Retirement • Membership growth>2008=14734
Benefit Fund (CIRBF) • >2009=15474
• >2010=15037
• Contributions recently increased from 12,54% to 13,5%
• Death Benefit=2XAE
• Disability benefit=75% of the members salary: six months

124 Secretariat Report to the 14th National Congress 2012.

3.4.3.5 Unclaimed Benefits for getting the opportunity to be
part of the JB Marks trust and will
There are a growing number of also do my best to plough back
unclaimed benefits in our Industry to the fund.”
that are worth millions of rands.
The funds are open to fraud Kebeileng Makgotlho
and illegal claims and trustees
in these funds should ensure “I joined JB Marks in my second
confidentiality while members year of tertiary and I must admit,
can also assist in ensuring that I wasn’t sure I would get the
they accurately complete the bursary so when I got it I was
nomination form and give as quite surprised. During my first
much information as possible year I had to wake up very early
relating to their beneficiaries and to get to school as it took me
relationships. two hours to get to school from
Kagiso to Sandton. I would leave
Many of these non - payments home at 6am in the morning and
relate to family feuds where arrive home at around 7pm and
the nomination form does even 8pm at times. On top of that
not have detail in order I would spend R50 on transport
to assist with payments to daily. I was always late for school
relevant beneficiaries. (This or I would be too tired to study
also unfortunately results in and due to that my school work
beneficiaries dying before suffered. If JB Marks hadn’t
payments are made or even re- come into my life I don’t know
locating for fear of their lives, how I was going to cope with
especially where family feuds are all the travelling or if my parents
involved. were going to manage getting
me through school with all the
3.4.4 JB Marks Bursary Scheme costs involved. Thank you for this
opportunity.”
The following are statements made
by past graduates on the impact Nandipha Spencer
the scholarship programme has
made in their lives: “Nelson Mandela once said that
‘’Education is the most powerful
Lerato Ramolota weapon which you can use to
change the world.’’ Without the
“The JB Marks trust fund has JB Marks education trust fund
helped me a great deal in my there is no saying where I would
tertiary career. Before I got the be right now...I am truly grateful
bursary things were very heavy and thankful to have been a
especially for my parents. The recipient of the bursary, I can only
bursary has brought ease onto hope and pray that it continues
them and I can also focus on my to fund upcoming generations
studies without having anything for a better life and a chance
to worry about. I am very grateful to change their community and
later, the world!!...”

125 Secretariat Report to the 14th National Congress 2012.

Mbulelo Madlanga access higher education which
my parents in true letter of the
“JB Marks trust fund has assisted me word would not have been able
in realizing my dream of being an to afford. The fund has opened a
active participant in the financial gateway for me to fulfill my dreams
services sector but more than that by participating fully in the
it has shown me how powerful Information and Communication
a weapon education is against Technology sector. I have
poverty and most importantly how realised my dream of being an
it can change lives.” IT professional and for this it has
given my family hope that the
Nonoke Mogwera cycle of poverty will from now
on become a thing of the past. I
“The saying ‘Education is Power’ is have also through the fund been
over used but remains true to this able to become an active citizen
day. Being able to go to university in plowing back to the fund so
and study a male dominated that future generations will see
degree has given me the ‘power’ this as something that they will
to see things through a different have to do as they serve others
eye. Continuous learning, and this continues for future
unlearning and relearning is generations. I am indebted to the
what keeps me goal orientated JB Marks Fund as I have realised
as I aspire to be a black female my dreams and made me who I
logistician. This I attribute to the am today. I am very thankful for
JB Marks Bursary Fund for I now I this opportunity that has been
dream bigger than ever.” granted to me and which I have
used to my full potential.”
Kagiso Pheelwane

“JB Marks has played a pivotal
role in my life for me to be able to

JB Marks has produced 673 graduates since inception in the following disciplines:

Description Number Percentage
IT 80 12%
Engineering 123 18%
Humanities 96 14%
Health Sciences 80 12%
Agriculture & Built Environment 16 3%
Finance 148 22%
General 129 19%
Total 673 100%

126 Secretariat Report to the 14th National Congress 2012.

3.4.4.1 Application for 2010 We have accepted all the forms
that were brought to us from 1st
We have received and captured July 2009 to end of August 2009.
785 application forms from the
regions, this constitutes 26% of The following is the breakdown of
the 3,000 application forms that the forms received per region
were distributed in March 2009.

No Region Membership No Used Unused
Allocated Returned Returned
1 Rustenburg 91 811
2 Carletonville 31 530 800 164 51
3 Free State 31 830
4 Matlosana 26 452 300 149 20
5 PWV 48 022 3
6 Highveld 26 720 300 115 9
7 KwaZulu - Natal 9 538
8 North East 24 400 230 85 17
9 Kimberley 8 802 100
10 Eastern Cape 8 551 480 80
11 Western Cape 8 779
12 NUM Head Office N/A 230 50
13 Lesotho N/A
14 JB Marks Office N/A 90 32

Total 230 28

80 24

80 23

80 13

30 10

30 6

40 2

3000 785

Breakdown of 2010 applications

Gender No % Sector No %
Male 418 53% Energy 43 5.5%
Female 367 47% Mining 479 61%
Total 785 100% Construction 263 33.5%
Total 785 100%

127 Secretariat Report to the 14th National Congress 2012.

3.4.4.2 Applications for 2011 Breakdown of applications for 2011

We have received 944 or 31.5% of Eligible applications
3,000 application forms for 2011
since the 1st of July 2010. We have Of the 944 applications received
completed the capturing process. for 2011, there were only 693 or
73.4% applications that were
eligible for selection.

Breakdown of gender

Gender No % Sector No %
Male 329 47.4% Energy 26 3.8%
Female 364 52.6 Mining 603 87%
Total 693 100% Construction 64 9.2%
Total 693 100%

Breakdown of sector No of forms Codes No of used No of No of
Allocated range & returned unused & unreturned
No Region forms returned forms
600 0001 - 0600 forms
1 Rustenburg 400 0601 - 1000 80 66 456
2 PWV 300 1001 – 1300 123 40 237
3 Free State 300 1301 – 1600 189 111
4 Carletonville 250 1601 - 1850 196 38 104
5 Matlosana 250 1851 - 2100 86 6 126
6 Highveld 250 2101 - 2350 56 68 188
7 North East 125 2351 – 2475 37 7 145
8 KwaZulu –Natal 125 2476 – 2600 34 5 84
9 Kimberley 125 2601 – 2725 35 79 85
10 Eastern Cape 125 2726 – 2850 53 26 7
11 Western Cape 50 2851 – 2900 23 76
12 MDA 30 2901 – 2930 9 6 41
13 Lesotho 20 0931 – 2950 16 8
14 NUM H/Office 50 2951 – 3000 7 34 13
15 JB Marks Office Issued 16 375 (12.5%) N/A
Total 944 (31.5%) 1681 (56%)

128 Secretariat Report to the 14th National Congress 2012.

3.4.4.3 Applications for 2012 forms distributed in May 2011.
There was an increase of 27.8% of
The Fund has received 1,780 the return rate when compared
application forms for 2012 to the 2011 application forms
returned by regions, constituting where (944) only 31.5% of forms
59.3% of the 3,000 application distributed were returned.

Breakdown of sector

No NUM Regions/ Membership Percentage No of forms No Codes
Offices as at 2009 returned for Allocated range
2012 for 2012
1601 - 1850
1 Matlosana 26 452 91.2% 228 250 1001 – 1300
2601 – 2725
2 Free State 31 830 87.3% 262 300 1301 - 1600
86.4% 108 125 2351 – 2475
3 Eastern Cape 8 551 80.7% 242 300 0601 - 1000
78.4% 98 125 2101 - 2350
4 Carletonville 31 530 68.8% 275 400 2476 – 2600
62.4% 156 250 1851 - 2100
5 KwaZulu Natal 9 538 47.2% 59 125 0001 - 0600
33.6% 84 250 2726 – 2850
6 PWV 48 022 28.8% 173 600 2851 – 2900
25.6% 32 125 2901 - 2930
7 North East 24 400 - Nil 50 0931 – 2950
73% 22 30 2951 - 2970
8 Kimberley 8 802 45% 9 20 2971 - 3000
75% 15 20
9 Highveld 26 720 53% Issued 17 30
59.3% 1780 3000
10 Rustenburg 91 811

11 Western Cape 8 779

12 MDA – Head Office N/A

13 MDA – Lesotho N/A

14 NUM Head Office N/A

15 MDA – E/Cape N/A

16 JB Marks Office N/A

129 Secretariat Report to the 14th National Congress 2012.

Application Forms Allocation

Breakdown: 2009 Intake per Region Breakdown 2010 Intake per Regions

No Region Total No Region Total
1 Carletonville 60 1 Carletonville 53
2 Free State 58 2 Free State 36
3 Klerksdorp 18 3 Rustenburg 33
4 Highveld 15 4 Klerksdorp 26
5 Rustenburg 13 5 Natal 15
6 Kimberley 9 6 PWV 15
7 North East 9 7 Highveld 14
8 Western Cape 7 8 North East 14
9 Eastern Cape 6 9 Head Office 10
10 Natal 4 10 Kimberley 8
11 H/Office 2 11 Western Cape 6
12 PWV 2 12 Eastern Cape 2
203 232
Total Total

Breakdown: 2009 Intake per Region Breakdown of 2012 intakes per Region

No Region Total Region No
1 Carletonville 69 PWV 53
2 Free State 68 Carletonville 50
3 PWV 22 Matlosana 33
4 North East 17 Free State 28
5 Western Cape 15 Rustenburg 14
6 Matlosana 18 Eastern Cape 14
7 Natal 14 Head Office 13
8 Head Office 13 Kimberley 12
9 Rustenburg 11 Highveld 12
10 Kimberley 9 Natal 10
11 Highveld 8 Western Cape 7
12 Eastern Cape 9 North East 4
273 Total 250
Total

130 Secretariat Report to the 14th National Congress 2012.

3.4.5 Stakeholder management 3.4.5.5 International organisations

3.4.5.1 Government relations We have a healthy relationship
with ICEM and BWI leadership
We have done very well in and the affiliates in all continents.
interacting and intervening to More details will be covered
advance our organisational under the International Section.
interests with;
3.4.5.6 Other
• DMR
We do interact with various
• DPE religious bodies and other
organisations including the
• DoE SACC, NGOs and State Owned
Enterprises.
• National Assembly
3.4.6 Service Evaluation per Sector
• Public Works although not very
satisfactory 3.4.6.1 Mining

3.4.5.2 Mining Investors We are discussing the issue of
service, looking at complaints
We continue to engage mining received from workers as well
investors locally and internationally. as the SWOP research report
Many of these investors are conducted in 2010. We are
concerned with Health and Safety extremely concerned about
and what they regard as high the increase in the number of
labour costs. We have made a complaints from members. We
case for an increase of the entry need to live by our 13 values.
level of mineworkers.
3.4.6.2 Construction
3.4.5.3 Employers
3.4.6.2.1 Civil Engineering
In the past three years, we have
held strategic discussions with This is a sub-sector that has
many of the Chief Executives achieved a lot of gains but
to determine their long term lacks monitoring strategies and
strategies and job creation. implementation drive from our
We have also dealt with issues staff and shop stewards within
affecting our members. the NUM.

3.4.5.4 Political Parties Increases and other Conditions
of Service
We have had regular bi-laterals
with the SACP but none with In 2009, we have achieved the
the ANC save through COSATU. following
We have a healthy working
relationship with the leader of the
National Assembly and Portfolio
Committee Chairpersons.

131 Secretariat Report to the 14th National Congress 2012.

Minimum Rates per Hour R15.68
R16.13
Task grade 1 R16.58
Task grade 2 R17.14
Task grade 3 R20.50
Task grade 4 R23.30
Task grade 5 R26.66
Task grade 6 R29.90
Task grade 7 R33.77
Task grade 8 Seventeen(17) days in 2009
Task grade 9 From four(4) hours to six(6) hours in 2009
Annual bonus Everybody who has worked for 18 months by 1st March 2010 to be
Inclement weather registered and enjoy all benefits enjoyed by permanent employees.
LDC employment To be included in all Plant level Agreements we have with clients and
companies in the projects.
Project bonus

In 2010, we have achieved the following;

Across the board increase 9.5%

Minimum salary R3 400.00 per month
Task grade 1 R17.43
Task grade 2 R 17.64
Task grade 3 R18.15
Task grade 4 R18.77
Task grade 5 R22.45
Task grade 6 R25.50
Task grade 7 R29.20
Task grade 8 R32.74
Task grade 9 R37.00
Annual bonus 18 days December 2010
Inclement weather Seven (7) hours in 2010
Maternity leave Four (4) month on 20% payment by employer plus UIF
Annual leave cycle Sixteen (16) days in 2010
Severance pay Two (2) weeks’ severance pay for any employee having ten
(10) years’ service.
LDC registration All contract workers who have worked 18 months for the same
employer to be registered by the 1st March 2010

132 Secretariat Report to the 14th National Congress 2012.

2011 Increases & Other Conditions of Service

Minimum salary of R3 700.00 per month

Across the board increase of 8%

Task grade 1 From 1/09/2011 – 31/08/ 2012= R18.97

Task grade 2 2010 Hourly rates were increased by 8% cont

Task grade 3

Task grade 4

Task grade 5

Task grade 6

Task grade 7

Task grade 8

Task grade 9

Annual bonus Nineteen (19) days’ pay per annum.

Inclement weather Eight(8) hours per day
Annual leave Seventeen(17) days per annum

3.4.6.2.1.1 Establishment of Secretary met with CTH
Civil Engineering Bargaining (Cheadle and Thompson).
Council
3.4.6.2.1.2 Civil Engineering
• Engagement was between Sub-Sector Challenges
SAFCEC, NUM, BCAWU
1ST Challenge
• We developed a bargaining
council constitution which was • No monitoring strategy in
submitted to the Department implementing agreements
of Labour along with the and utilization of sectorial
registration application determinations by NUM
regional staff and shop
• We also reached a stewards at branch levels
Memorandum of Understanding
to establish and safeguard the • No plant level negotiations in
voluntary forum in case we fail addressing the issues deferred
to negotiate as a bargaining to plant level. Branches,
council including NUM officials are
only asking questions about
• The Registrar directed the this process when it’s at the tail
parties to submit a list of the end of the agreement
members and the names all
the provinces where we are • Regional organisers and
involved. branch committees are failing
to engage management
• The NEC has noted the at company level about
engagements that have consolidation of funds as per
taken place where the Deputy SAFCEC Agreement.
President and Deputy General
133
Secretariat Report to the 14th National Congress 2012.

2nd Challenge or any minimum rates and
yet companies contracted by
The Registrar talks about mines and directly involved
the number of companies in production are supposed
registered under SAFCEC & to comply with Chamber of
CIDB formations in the Civil Mines agreements.
Engineering industry. The
SAFCEC only is having 600 4TH Challenge
employers affiliated to them
and NUM is having something • Implementationofagreements
like +- 180 recruited companies /sectorial determination
in the industry. There is also for companies that fall
other list of Civil Engineering under Civil Engineering,
companies hiding under CIDB especially in Cape Town is
for affiliation especially the a problem. One will hear
smaller companies in this sub- comrades complaining
sector. that company A does not
want to give the agreed
NUM regions are not keen to percentage increase and
create contacts at companies benefits enshrined in the
where there has been no sectorial determination.
union organisation just in order We all know that the
to get increased membership. minister doesn’t cover
everything in the Gazette
3rd Challenge or other laws. Monitoring
by our comrades in the
o Aveng Mulman regions is very poor.

o Concor Murray & Robert • Members are victimized in
Cementation and Mining these situations. However
NUM staff need to overcome
o MCC this by providing the
regions with material from
o Shaft Sinkers government gazettes and
any substantive collective
o Group Five and others agreements with SAFCEC.

• These companies have NB:
divisions that work in
mines as sub-contractors. SAFCEC substantive
Although some of their work agreements are supposed
directly involves mining work to be complied with by
NUM members of these SAFCEC members while
companies are not getting sectorial determinations
wages and conditions of cover all those companies
service agreed with the in the Civil Engineering
Chamber of Mines. sub-sector including those
which are not SAFCEC
These companies are not members.
paying either SAFCEC or
mining minimum standards

134 Secretariat Report to the 14th National Congress 2012.

5th Challenge 4. PPC cement

• No renegotiation of 5. Corrobrick
recognition agreements
by regions to cover all NUM 6. Monier Roofing
constitutional structures
7. Marley Tiles
• Noopportunitytorenegotiate
recognition agreements There are only three
for health & safety and companies where we have
education structures to get centralized processes in our
time off for training and engagements. These are
seminars in the construction AfriSam, Lafarge SA and
sector Monier Roofing.

• There are challenges on the In AfriSam/Holcim, there are
types and sizes of branches three unions, namely: the
we have in the construction NUM, BAMCWU & Solidarity.
industry to comply with the
NUM constitution. Engagement with PPC cement

3.4.6.2.2 Manufacturing • A report we commissioned
sub-sector shows that NUM members
are less than 50% of the whole
We are organised in this company. We forwarded
industry but not to the those stats to all regions
required standard. We should involved to embark on an
acknowledge the fact that aggressive recruitment drive
these companies are not 100% but not much happened.
organised. Our intention to have a
centralized bargaining forum
Which are they ? is now fading.
1. AfriSam South Africa
2. Lafarge South Africa • There are a number of
companies in this sub-
Cement & Aggregates sector but we do not have
3. NPC cement consolidated numbers of
our membership.
(i) LaFarge South Africa-2010 Increase
Aggregate & Concrete
Cement
8.5%
Across the board increase 9% plus 0.5% in July 2010
Minimum rates R 4 500-00 From R3 500 to R4 350-00
Shift allowance R 705.25
Performance bonus 6% subject to company Not working shifts
performance
6% subject to company
performance

135 Secretariat Report to the 14th National Congress 2012.

(i) LaFarge South Africa-2010 Increase. (Cont.)

Cement Aggregate & Concrete

Across the board increase 9% plus 0.5% in July 2010 8.5%
Medical aid contribution 60% by employer and 40% by 60% by employer and 40% by
Annual leave cycle employee employee
Six to 20 years=20 days annual Six to 20 years=20 days annual
Severance pay leave. 21 to 25 years =25 days leave. 21 to 25 years =25 days
Acting allowance annual leave. annual leave.
Cell phone for chairpersons Two (2) weeks for each two (2) weeks for each completed
completed year of service year of service
20% of salary when acting for at
least 3 days Three (3) cell phones for
chairpersons with pre-paid air
time of R100.00

(ii) Lafarge SA Long Service Awards

Cement Aggregate & Concrete R1 100.00
R1 625.00
Five (5) years R R1 100.00 R2 300.00
Ten(10) years R1 625.00 R2 750.00
Fifteen(15) years R2 150.00 R3 200.00
Twenty(20)years R2 675.00 R4 500.00
Twenty five(25)years R3 200.00 R5 100.00
Thirty(30)years R3 725.00
Thirty five(35)years R4 250.00

(iii) Lafarge South Africa-2011 Increases

Cement Aggregate & Concrete 6.5%
R 4 600.00
Annual increase 6.8%-January 2011 15%
Minimum R 4 500.00 6%
Shift allowance R 750.00
Performance bonus 6%

136 Secretariat Report to the 14th National Congress 2012.

(iv) Lafarge SA Long Service Awards

Cement Aggregate & Concrete R1 100.00
R1 625.00
Five (5) years R R1 100.00 R2 300.00
Ten(10) years R1 625.00 R2 750.00
Fifteen(15) years R2 150.00 R3 200.00
Twenty(20)years R2 675.00 R4 500.00
Twenty five(25)years R3 200.00 R5 100.00
Thirty(30)years R3 725.00
Thirty five(35)years R4 250.00

(v) Lafarge South Africa -2012 Increases

Cement Aggregate & Concrete
Percentage increase
6.5%January2012 plus 0.5% in 6.5%January2012 plus 0.5% in
Minimum July 2012 July 2012
Shift allowance
Provident fund contribution R 4 650 per month R4 750.00 per month
Acting allowance
R850.00 15% on basic salary

12.5%-employer &7.5% employee 12.5%-employer &7.5% employee

from 3 days upward payment from 3 days upward payment

(vi) Long Service Awards 2012

Cement Aggregate & Concrete

5 years R 1 250.00 R 1 250.00
Ten years R1750.00 R1750.00
15 years R 2 300.00 R 2 300.00
20 years R2 750.00 R2 750.00
25 years R3 300.00 R3 300.00
30 years R4 500.00 R4 500.00
35 years R5 100.00 R5 100.00

(vii) Afrisam South Africa (Pty) Ltd 8.5%
5 days per annum
Wage agreement 2010 8.5% of basic salary
Increase 13.5 hours on 8.5%
Family responsibility leave 30% discount
Shift allowance
Standby allowance
Selling of company product

137 Secretariat Report to the 14th National Congress 2012.

Wage increase 2011 8%
Increase 8%-shift workers and 12% for 3 shift workers
Shift allowance Four (4) months maternity leave on 100% pay by
Maternity leave the company
9 seater bus for all operations
Transport
7.5%.
Wage increase for 2012 8%
Increase Four(4) months on 100% pay by employer
Shift allowance
Maternity leave

(viii) Monier Roofing

Wage increase in 2010

Increase 8%

Level New minimum rates 2010 8%
1
2 Rate per hour Rate per month
3 R20.82 R4 059.19
4
5 R20.82 R4 059.19
6
7 R21.49 R4 190.45
8
Annual leave R21.51 R4 194.37

Annual bonus/13thcheque R22.73 R4 431.42

Maternity leave R23.18 R4 519.57
Job grading
Medical aid R23.92 R4 664.55

R27.12 R5 267.53

Employees with less than 5 years - 15 days leave;
5 years onwards - 20 working days annual leave.

195 hours/one month wage as bonus /13th
cheque payment during December 2010

63 working days maternity leave

2010 implementation

50/50 % contribution

138 Secretariat Report to the 14th National Congress 2012.

Increase 2012 7.5%.
Increase 5% increase in housing allowance
Housing allowance Jobs are graded and implementation in
Job grading February 2012
Employer will contribute an amount of R4 000
Transport to funerals for transport to enable employees to attend
colleague’s funeral
Labour broker All employees under labour broker will be
converted to permanent employees by Monier
(ix) Equality Reef Services Roofing by March 2012
2010 Increase
A-cleaners and butterers 12%
B- cooks and single source 7.5%
C-other categories 7%
D -junior management 7% for all site(unit) based management not
earning greater than R6,000 per month
Living out allowance R500
Night shift allowance 8%
Afternoon shift allowance 7%
Annual leave 29 consecutive paid days leave excluding
holidays
Transport to funerals Company will contribute R6,000 for funeral
transport
Transport for union meetings Car /Kombi for s/s to attend company meetings
/union meetings and bus for mass meetings
Medical incapacity R15, 000 plus R1, 000 per incapacitated
employee
Maternity leave 3 month payment on 33.3% of pay
Provident fund 7.5% by employer & 6% by employee
Family responsibility leave 7 days per annum
Standby allowance 6%
Threshold Task team to look at membership

139 Secretariat Report to the 14th National Congress 2012.

3.4.6.2.3 Building Sub-Sector/ by the regions. As a result no
Industry reports or agreements are
sent to the Head Office.
This is the biggest industry in
the construction sector but we 2nd Challenge
don’t have even a quarter in
terms of recruited branches. We are divided in our
The industry has formal and negotiations on conditions
informal divisions. of service and wages in the
voluntary bargaining forums
The formal companies have with the MBSA’s in different
established offices in most provinces.
of cities, though their staff
works out of their premises We are also not fully
building things like houses participating in those forums
and walls. Some work with as we don’t receive any reports
civil engineering companies and agreements from regions
carrying out activities such including Bloemfontein, West
as bricklaying, carpentry Boland, Eastern Cape, Western
and plumbing. They are not Cape and PWV.
organised.
3rd Challenge
The informal sector in this
industry includes people who Provident funds and pension
use bakkies to pick up people funds in this industry are still
at street corners with no formal in the hands of employers as
employment contracts. This those are managed by MBSAs.
informal building sub-sector is The question is how do we
also flooded by immigrants. challenge this situation if our
members are not contributing?
NB:
Recommendation
In this industry, we only have
+- 10% organised companies We suggest to the Congress
nationally. that we convene a NUM
Construction Mini Summit to
1st Challenge in Building digest these issues.

• We are failing to share (ii) PWV Building Voluntary
information as people are Bargaining Forum
scared
We engaged in the process
• There is also no sharing of in 2010 and better offers were
plans and tactics during obtained, close to the SAFCEC
negotiations offers including conditions of
service in the industry.
Directives by the leadership
in national shop stewards
councils are being ignored

140 Secretariat Report to the 14th National Congress 2012.

Wage Agreement reached in 2010 was as follows:

Across the board increase 9%
Minimum rate R14.00 for LDC or casual employee
Annual bonus 125 hours on hourly rate pay in December 2010

2011 Increases 8%
Across the board increase From R14.00 to R15.70 an hour
Minimum rate 130 hours pay in December 2011
Annual bonus

• The question is, what developing forums?
is happening to other
regions on these Voluntary • Are our Education
Bargaining Councils? Committees in NUM
branches involved in the
• Are regions playing a role in formulation of work place
making sure that members skills plans?
are exploited in these
processes? • If not, what are the obstacles
and what are the regions
• Are we well organised in doing to address this?
the industry? If yes, where is
the proof of membership? In 2004, the NUM was
involved in the development
(ii) Transformation of a Construction Charter
which would help address
We do have legislation guiding transformation, employment
us on training and development of women, training and
but we don’t seem to have data development in the industry.
on signed skills development, We are now at version six (6)
training and employment equity of the Construction Charter
agreements in our branches. It Constitution which we hope
is crucial for regions to collect will be finalised soon. The
these kinds of agreements component that is now left is
for monitoring purposes so the formation of a board that
that support systems can be will monitor implementation of
developed to help comrades in the transformation process in
the regions. the sector.

Questions One mistake we are making
at the company level is the
• Do we have established failure to engage companies
transformation structures for WSP’S and employment
which are involved in policy equity plans as required by

141 Secretariat Report to the 14th National Congress 2012.

the Act. No transformation • The construction sector
will be accepted by the is very complex and it
CETA/Department of Labour is difficult to force these
without the signatures of the companies to be compliant
committees comprised of all
designated groups within the • We don’t have structures,
company including labour. committees and health
and safety agreements that
We have established a finance could guide us on health
policy drafting committee that and safety developments
will come up with a budget to in the working environment
be submitted to the Minister.
This will lead to the hiring of a • We don’t have health
CEO and Chairperson of the & safety agreements in
board. There is no progress to branches that would allow
report so far. the union to use them for
training and other activities
(iii) Education Structure
We are only dealing with
When we start branches, we bread and butter issues when
elect the Education Structure engaging companies and
among others but when we leave out matters of health and
introducethemtomanagement, safety. There are also no Social
we don’t tell management Labour Agreements reached
about the requirements of between parties in uplifting the
the NUM Constitution that all lives of members at regional
these structures be recognised. levels in the construction sector.
(Suspicions)
We need an aggressive way to
Only the branch committee gets address these problems.
the time off arrangement – the
Health & Safety and Education (V) Job Losses Mitigation
structures are excluded. Regions Policy
need to ensure that these
structures are recognised. We are working in partnership
with the Public Works
As the NUM leadership we department because of the
must engage the Minister to large tender projects it handles
intervene on the matter by in South Africa.
checking the progress report
at CETA. • Training and development
is very fundamental in these
(iv) Health & Safety tenders but there is no
monitoring because they
We are not establishing health don’t have data for people
and safety branches in the trained
regions. This is a development
that as NUM we should take • There is no help given to
seriously. demobilised employees or
citizens to form co-ops in their
areas to renovate buildings
and stadiums built through
these projects.

142 Secretariat Report to the 14th National Congress 2012.

Table Two: Employed by industry and sex – South Africa

Oct – Dec Jan – Apr Jul – Oct – Qrt to Year Qrt to Year
2009 Mar – Jun Sep Dec Qrt on year Qrt on year
2010 2010 2009 2010 change change change change

000 000 000 000 000 000 Percent -5.2 -22.0
-1.5 -4.0
Women 141 125 114 116 110 -6 -31

Men 985 935 935 960 946 -14 -39

Source: Statistics SA: Quarterly Labour Force Survey, Quarter 4, 2010

The Pay Gap in RSA Economy 1994 - 2010. CEO of intermediate sized firm vs lowest
level worker

Building Industry Bargaining Council minimum wage from 2008-2010

143 Secretariat Report to the 14th National Congress 2012.

Monthly Wage and Conditions of Employment. All sector of the industry

Category Bloem Kimb N/W Penn Boland Malm Civil Eng. Civil Eng.
Boland R3584.33 R2970.20 R2661.56
General R2461.17 R1482.80 R2300.52 Agree. S/D
Worker 41 44 44
Estimated 1500 900 42 15 15 15 R3400
number of 15 Yes Yes Yes
workers 40 45 Yes Yes Yes Yes 35 000
Hours of work 15 15 Yes Yes Yes
Annual leave Yes Yes Yes No No No 45 45
Provident or Yes No No No 16
Pension fund Yes Yes No No No No Yes Yes
Medical Aid Yes Yes 3 3 3
Sick fund Yes No No No No No Yes No
Funeral No Yes Yes Yes No No
benefits Yes No No No No Yes No
Bonus fund No No 3
Maternity No No No
leave 3 No 4 Yes
FR leave No No Yes
Severance No 4
package Yes Yes 1
Annual bonus No No
s/s leave Yes
No

The table shows a comparison In September 2012 bids were
of minimum wages and called for the second round of
benefits in regional building renewable energy projects, in
bargaining councils and which an estimated R60 billion
the civil engineering sector. of projects were expected to be
The `yes’ means that there‘s approved. In conjunction with
evidence of the benefits in bids approved in November
the actual agreement, while 2011, this is expected to bring
the `no’ means that there‘s no 3,750 megawatts (MW) of
evidence of the benefits in the alternative energy onto the grid
agreement. within the next three years at a
total cost of R120 billion. This
3.4.6.3.1 Energy is only the start of an 18-year
project to ensure 17,000MW
(i) Introduction of South Africa’s power will be
generated from renewable
Eskom is currently experiencing energy.
base load problems and has
asked consumers to cut back
on their power usage.

144 Secretariat Report to the 14th National Congress 2012.

We still believe that ESKOM Human Resources Divisional
MUST OWN COAL MINES to Executive as well as union
avoid the huge primary energy bashing tendencies from the
costs. The second solution to majority of Eskom managers in
South Africa’s energy crisis will wage negotiations. For Eskom
only be addressed if we agree to undermine the existence of
to COMPROMISE on JOBS IN trade unions to the extent of
SMELTERS. These smelters are UNILATERALLY IMPLEMENTING
international assets that are WAGE INCREASES and other
not even creating jobs in our conditions of service should in
country but are creating wealth itself tell us that we are facing
for other countries. Therefore a serious challenge in this
we must start debating as to organisation.
whether they contribute to the
economy of South Africa or We must however indicate
not. We also need research that the NUM is trying its best
on how many jobs have been to ensure that workers’ socio-
created by these smelters for economic conditions are
the past five years and how improved. But it is a serious
many MW they are consuming. challenge for the NUM to
More electricity is consumed achieve its objectives whilst we
by these smelters than by have NUMSA and SOLIDARITY
any other power consumer. in Eskom because they agree
We must start new NATIONAL and have secret meetings with
debates on these matters. If the employer and assist the
we are not bold enough as employer to defeat us.
an organisation, the MINING
INDUSTRY WILL RETRENCH AND The bottom line is that we
CLOSE. We will remain with cannot co-exist with NUMSA
smelters that are not benefiting and we can only win this battle
the economy of this country. by out-organising them from
We cannot sacrifice our mines. Eskom as we did a few years
We need to defend them back in Rotec. It is also very
because they are key to the clear that COSATU has no
economy. intention of sanctioning NUMSA
on their refusal to hand-over
(ii) Collective Bargaining membership to NUM.

Collective bargaining in both Whilst complaining about
Eskom and its subsidiaries has Eskom and others, we need
reached its lowest point in the to introspect on how we can
past three years. We have consolidate and present our
been experiencing challenges demands to the employer.
in the CBF (COLLECTIVE There are lessons to be learnt
BARGAINING FORUM) for quite from the wage dispute that
some time and now things are we have just ended. To us it
getting worse. was not just a dispute but also
training on how we should
We have observed high levels prepare ourselves if we want to
of intransigency from the win the battle in future.

145 Secretariat Report to the 14th National Congress 2012.

If we are serious about restoring forums in order to draw their
our dignity as workers in Eskom, attention to our complaints.
we cannot allow a situation We must however indicate
where a large number of Eskom that some comrades in various
remains unorganised or belong divisions did not deem it fit for
to Mickey-mouse unions. We them to distance themselves
must commit ourselves to from participating in forums
ensuring that, come the 2013 where they don’t even have
wage negotiations, we are influence in decisions that are
representing the majority of taken. Some comrades were
workers in Eskom. We have a demanding formal letters
strong conviction that this is indicating our positions in
possible and we must start now. withdrawing from the structures,
which we could not do due to
As much as we did not achieve various reasons.
what we wanted as workers,
we should not undermine the To this end, we have not
gains and strides we have availed ourselves to Eskom as
made. It is such small gains we still need to engage with the
that set a particular standard CEO and draw his attention to
and contributes towards our grievances regarding the
changing our socio-economic treatment we are receiving.
conditions as workers. We
must therefore congratulate (iv) Regional Councils
ourselves for having shown Assessment
Eskom that, things will not
always go their way. The following is the assessment
of all regions visited in 2011
Achieving an extra 1.1% and and the beginning of 2012
R500 housing allowance is a (PWV and Highveld Region).
victory for workers in Eskom, Concerns have been raised
especially because it is that Regional Office Bearers
obvious that this achievement were not attending these
is attributed to the efforts of councils. This area has
the NUM. This victory must be improved a little though it is still
used as an organising tool for not satisfactory. Attendance
members to realise that their by shop stewards is impressive;
home is in the NUM. groundwork is being done
to enforce organisational
(iii) Participative Structures discipline.

After the unilateral (v) Challenges and issues of
implementation of salary Focus for 2012
increases and conditions of
employment by Eskom in 2011, • Minimum Services
strategies were embarked upon Agreement (MSA)
to frustrate Eskom and make
various structures ungovernable. • Wage gap
We silently boycotted structures
like CCF and other important • Restructuring of Eskom

• Transformation and

146 Secretariat Report to the 14th National Congress 2012.

marginalisation of black • Development of stewards
managers (2012 as a Year for Cadre
• Corruption Development)
• New Builda Medupi, Kusile
and Ingula • Discipline enforcement
• RRR Merger
• Campaigns on recruitment (vi) Achievements so far
• Energy policy • Growth of membership
• Improvement on • Salary increases above
engagement with the DPE
(Department Of Public inflation
Enterprises) • Maintained a strategic
• Redefinition of Bargaining
Unit relationship with DPE
• Developed a discussion
Eskom Bargaining Unit Staff Salary Increases
paper on energy

Eskom Bargaining Unit Staff Benefits Increases

147 Secretariat Report to the 14th National Congress 2012.

Eskom Bargainig Unit Staff Housing Benefit
Eskom Bargaining Unit Staff Medical Benefit

Eskom Employment Equity

148 Secretariat Report to the 14th National Congress 2012.

Total Number of Employees

Eskom Trade Union Membership

(vii) The State of the to grow, become economically
Organisation in the Sector sound or offer its membership
(2011 ENERGY CRISIS) good quality service in Eskom.

The council was called on the This introspection of the
4th and 5th of November 2011. National Council was to
The purpose of the meeting deal with our participation
was to assess the organisational particularly during 2011 wage
performance for 2011. It should negotiations and determine
be noted that organising is a whether the organisation did
process by which trade unions achieve its objective to defend
canvas, recruit, consolidate and members as well as achieving
see recognition for its members. the living wage.
Without vibrant, consistent
organisation, the NUM is unlikely The other objective for calling
this council was to present

149 Secretariat Report to the 14th National Congress 2012.

a proposed strategic plan In Conclusion
document. It was however
disappointing to see how The sector has taken a decision
some comrades behaved in to focus on recruitment in
that council. The council was 2012. We are determined to
out of order and a majority of see the NUM becoming the
regions started to be unruly majority union in this sector
and demanded the NOB to and all regions are committed
be called to address them. to embarking on a massive
We cannot allow a situation recruitment. Assessments on
where council meetings take the recruitment drive will be
place in this manner. A second conducted on a monthly basis.
council was called on the 25th
of November 2011 where this 3.4.7 ESOP
issue was resolved.
The purpose of this section is to
(viii) Minimum Services review some of the Employee
Agreement Share Ownership Programmes
(ESOP) so they will serve as a
The MSA agreement has been basis for further discussion and
on the table for some time now. engagement.
The matter was referred to the
labour court by the company This section also seeks to:
which was challenging the
CCMA award in favour of • Understand some of the generic
the NUM. The labour Court factors that impact on and drive
once again ruled in favour of ESOPs
the NUM, restating that the
CCMA had jurisdiction to deal • Provide an update on current
with matters of MSA in Eskom. trends and market thinking on
The matter was also referred ESOPs
to the Labour Appeal Court
which once again ruled in • Share the approach implemented
favour of the NUM. Eskom in by the NUM to date in tackling
turn decided to challenge the some of the issues we face
decision in the Supreme Court
of Appeal. • Give a brief account on key things
to do
As part of the council which
was convened on the 25th • Use this session to determine
November 2011, it was decided whether an in-depth study on the
that this matter will form one of performance of ESOPs to date is
the campaigns that the NUM warranted and the extent thereof
will be dealing with in 2012.

150 Secretariat Report to the 14th National Congress 2012.