Employee development and talent management

Key features

  • 48.1 hours of average annual training per employee.
  • 23,519 employees and 10,353 contractors received training during the year.
  • 8.00%RA of our Company employees were women, with 5.09%RA of them working in core mining positions.
  • 47.2%RA HDSAs in management, including white women in management.

Context

We aim to offer equal opportunities to all employees, and encourage training to ensure our employees can develop their skills and careers. We also focus on skills development in the local community as we recognise the high level of unemployment and illiteracy in the Greater Lonmin Community (GLC) and endeavour to play our role in changing this.

Our training and transformation strategy

Our strategy remains focused on three areas:

  • Attracting and retaining the right people for the right jobs, through thorough effective recruitment, competitive remuneration and successful retention through the recognition of employees and the provision of development opportunities.
  • Effective employee and leadership development that allows for the growth of skills and talent within the Company.
  • Creating of a performance culture, in which employees feel motivated and empowered to achieve their and our Company's goals, in line with Company values. See Case study: Recognising excellence among our process division’s mission directed work teams.

All training and development initiatives are carried out in line with the Mining Charter's requirements and our own Social and Labour Plan (SLP) targets. The Executive Vice President: Human Capital is responsible for the management of human resources development, and reports directly to the CEO.

Employee training and development

We spent R202.2 million1 on employee training during this year, which comprised 3.2% of the annual payroll.

We received R31 million in refunds from the Mining Qualifications Authority (MQA)2 , which is the national Sector Education Training Authority (SETA) for the mining industry. It aims to accelerate the provision and administration of skills development programmes, with the objective of developing the skills of Historically Disadvantaged South Africans (HDSAs).

A total of 1.6 million hours in training was provided to employees during the year, with the average number of hours received by employees in each category outlined in the table below. When averaged, employees and contractors received 48.1 hours of training each.

  1. 1The expenditure on training includes the costs spent on ABET training, general training within the different divisions, seminars and the provision of bursaries, among other things.
  2. 2The MQA is governed by the Department of Labour. We did not report on the MQA grants received in 2012, of which the value was R24 million.
Breakdown of average training hours per employee by gender and employee category
2013 2012
  Male Female Male Female
Contractors37.2 36.8 45.3 26.7
Unskilled and defined decision-making54.5 73.6 46.2 73.8
Semi-skilled and discretionary decision-making 51.2 58.3 44.1 42.3
Skilled technical and academically qualified, junior management, supervisors, foremen and superintendents 47.2 28.7 49.8 35.7
Professionally-qualified, experienced specialists, and mid-management 21.6 24.0 30.0 21.8
Senior management20.2 12.8 17.7 24.5
Top management10.8 32.5

The decreases in the number of hours of training received by employees across all employment categories in 2013, as shown in the table, were as a result of several factors. These included the effect of the restructuring process, during which training was reduced, several structural changes in our Training Department, as well as the impact of the events at Marikana and the ensuing strike, which also affected training at the start of the financial year.

Adult basic education and training

Illiteracy is a concern among our employees. At the Lonmin Training Academy we offer employees an opportunity to become functionally literate and numerate through full-time and part-time adult basic education and training (ABET) courses from Level 1 through to Level 4. Community members also enjoy access to our ABET programme. This year we trained 658 employees on ABET, 191LA full-time and 467LA part-time, with 29 completing Level 43 . A total of 296LA community members also participated in ABET.

3 ABET Level 4 is equivalent to South African Schools' Grade 9.

Learnerships

We have a learnership programme in place that provides technical skills training to employees. In 2013 Lonmin awarded 181LA learnerships, of which 45 were awarded in the Mining Division, 48 in the Process Division, 10 in Technical Services and 54 in Engineering. These also included 24 learnerships awarded to community members.

Artisan training college

The artisan training college opened in April 2012. The first year of the project has proven to be challenging and the college has had to be launched in phases, due to a current lack of infrastructure and skills within the community. At present we have 64 learners at the college, 24 of whom are from the GLC and who are around the age of 20. We have also introduced a learnership preparatory course for the college, to try and increase the number of applicants who are eligible for a place.

The learners are assessed to determine their eligibility for a particular trade, which could be any of the following: electrical; mechanical; instrumentation; rigging and; boiler making. This year 20 learners qualified as artisans.

Portable skills training

We offer portable skills training to employees who are close to retirement or to those who have been affected due to restructuring. A portable skill is defined as a transferable expertise in specific crafts such as bricklaying, motor mechanics, welding, driving skills and agricultural skills. Again, portable skills training courses are also available to community members. During 2013, 386LA people, 232 employees and 154 community members, received portable skills training. For more information on community training opportunities please see the section on Community upliftment and the Case study: Threading portable skills through our communities.

Bursaries

We recognise the need to ensure that competent people are recruited, developed and retained to meet current and future human resource and transformational needs of the business. The Lonmin Bursary Scheme therefore forms a vital part of our business strategy.

Bursaries are offered to students who wish to pursue a career in mining or mining-related disciplines such as Mining, Electrical, Mechanical or Chemical Engineering, Metallurgy or Mining Technical Services such as Geology.

There are specific criteria for these, and preference is given to HDSA candidates and community members from the GLC. In 2013, we allocated 86LA bursaries; 44 (51%) were awarded to local community members.

Regular interaction between ourselves and the bursars e.g. bi-annual university visits, vacation work periods and monthly updates from the students to the Bursary Department allows us to monitor their progress, while social media is used to communicate with students outside of formal communication structures.

In addition to the bursaries that we have awarded, we have awarded sponsorships to 72LA people to allow them to pursue tertiary education and we also employed 35LA graduates and interns during the year, allowing all of them the important opportunity to gain valuable work experience.

Talent management

A formal mentorship programme and Individual Development Plans (IDPs) are the main components of our talent management structures at Lonmin.

Mentorship is a formal relationship between a mentor and a mentee, and is established to enhance the mentee's career by building practical skills and knowledge. Effective mentors share a number of characteristics, most notably an advanced knowledge and set of skills in their field. Mentors have the opportunity to transfer this knowledge and these skills through their mentorship roles. In 2013, 63LA active mentorship relationships were in place across our operations.

IDPs facilitate the construction of specific, tailored development plans for employees in order to help them to either improve performance in their current position, or to prepare them for their next assignment. We had 2,205LA employees with IDPs in place in 2013, of which 1,310 (59%) were HDSAs.

Leadership staircase

We have a leadership staircase for both Process and Mining Division employees that maps the route for them to be able to perform on a senior management level. The programme emphasises the development of capabilities such as safety management, leading others, emotional intelligence and change management, amongst others.

GRI
EC4
Significant financial assistance received from government.
LA10
Average hours of training per year per employee by gender, and by employee category.
LA11
Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
LA12
Percentage of employees receiving regular performance and career development reviews, by gender.

We provide our employees with competitive remuneration within the market in which we operate. This year our total payroll expenditure was R6 billion.

Currently, an entry-level employee who is unskilled or semi-skilled earns a basic wage of R9,6114 per month, before taxes, bonuses and additional allowances.

This is made up as follows:

  • Basic wage: 60%
  • Living out/accommodation allowance: 30%
  • Value of medical benefits: 6%
  • Employer contribution to pension fund: 9%
  • Holiday leave allowance: 5%

4 Also see our Marikana Update Website that provides further details on this matter.

After the wage increases of September 2012, we hired Pricewaterhouse Coopers (PwC) to determine independently whether all payments had been made in terms of our September commitment. The result of the audit has been shared with union representatives and employees and a few minor discrepancies were identified and rectified under the supervision of PwC.

We do not report on the wages / salaries of contractors as they are remunerated by their direct employers. South African labour legislation has various mechanisms in place to drive compliance with minimum wages within different industries.

Details on executive remuneration are presented in our Directors’ Remuneration Report of the Annual Report and Accounts for the year ended 30 September 2013

With respect to gender equity, calculated on the basic salaries of our employee categories, the most significant differences are:

  • Among semi-skilled workers, women earn 23% more than men.
  • In top management, men earn 19% more than women.

An employee share option programme (ESOP) is being considered. We have agreed to form a joint working group with unions to co-create an ESOP scheme proposal for final approval by the Board in 2014.

GRI
LA14
Ratio of basic salary of men to women by employee category.
EC5
Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

Our transformation initiatives are aimed at increasing the roles of individuals who were previously disadvantaged.

This includes increasing the representation of historically disadvantaged South Africans (HDSAs) in senior roles, as well as facilitating an increase in the number of women in both our general workforce, referred to as women at the mine (WAM), and in core mining roles, referred to as women in mining (WIM).

HDSAs in management *including white women [graph]

This transformation is gradual, and involves careful recruiting programmes as well as an increased focus on our talent pipeline and on our training programmes.

Transforming our workforce

At the end of 2013 Lonmin had 47.2%RA HDSAs, including white women, in permanent management positions, a decrease of 4.7% year on year, which was a result of the restructuring process that we underwent.

HDSAs in management (including white women)
Paterson Band 2013 (%) 2012 (%)
D-Band (Junior management)50.7RA54.7
E-Band (Middle management)39.5 RA39.4
F-Band (Senior management)38.5RA21.4
Total47.2 RA49.4
Women employed at Lonmin (%) [graph]

Supporting women in mining

We salute all our female colleagues who have worked so hard – and continue to do so – to overcome gender discrimination at the rock face. We are committed to working with them to prevent and guard against gender violence and intimidation in and beyond the workplace.

Women made up 8.00%RA of our total workforce at the end of 2013, 1.8% higher than 2012. 5.09%RA of our core mining positions were occupied by women.

Structures to support women at the mine, and women in mining, are being implemented at the various mines across our property and we have policies in place to facilitate the employment of women without discrimination, as well as supporting mechanisms for reporting incidences of sexual harassment. More detailed information is provided in the section: Upholding ethical business practices.

We also have facilities on site to allow women to enhance their physical abilities, in order to perform underground work safely, and have recently demarcated a female-only ward at our hospital. We have support programmes in place to develop the skill levels of women through bursaries, learnerships and skills-development training. Through our community mining training programme we also equip women from the community with skills for possible employment.

Lonmin women march for peace

The women of Lonmin took to the streets of Wonderkop on 1 August 2013 to march for peace. The march was a symbolic gesture that honoured the brave women from diverse backgrounds who took the unprecedented step of marching to the union buildings almost 60 years ago to protest against Apartheid. The Lonmin women were joined by local community members and church leaders to mark the start of Women’s Month and to take a public stand against violence.

GRI
LA13
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.