Employees and contractors

Key features

  • 38,421 people employed in 2013, including contractors.
  • Financial training provided to over 11,000 employees, with over 1,000 individual financial consultation sessions and estimated R3 million saved for employees.

Context

We try to position ourselves as an employer of choice, and strive to provide safe jobs, with fair remuneration, decent living conditions, occupational health services and personal growth opportunities for our employees and contractors.

At 30 September 2013, we employed 38,421 people: 28,379 full-time permanent employees and 10,042 full-time contractors. The majority of our full-time employees were employed at our Marikana operations in the North West Province (98.4%), with the balance based at the PMR in Brakpan, Gauteng (0.69%), at our head office in Johannesburg (0.16%), at our exploration sites (0.02%), at our London corporate offices (0.02%) and at our Limpopo operations (0.17%) which are currently on care and maintenance.

Breakdown of employees by geographic origin at 30 September 2013
Province Number of employees Percentage of total employees
Eastern Cape 10,202 36
North West 7,935 28
Limpopo 1,416 5
Free State 1,138 4
Gauteng 1,128 4
Natal 849 3
Mpumalanga 566 2
Northern Cape 288 1
Western Cape 279 1
Total RSA 23,801 84
Total foreign 4,578 16
Grand total 28,379 100

This year, 609 people were employed from local communities as rock drill operators (107), winch operators (60) and general workers (442). While we believe in the importance of hiring local candidates, employment applications from local communities are handled according to our standard recruitment processes.

Contractors

Contractors form an essential part of all mining companies' workforces. We work closely with our contractors to ensure that they meet our standards for safety, and that they comply with all relevant legislation. Contract work is classified as a service and managed through our procurement structures. While we are not involved in decisions regarding issues such as remuneration packages and accommodation provision, we strive to make as many of our training and development opportunities as possible, available to our contractors.

To this end, we have an established contractor hub, where contractors are familiarised with our safety programmes and on-site regulation before they begin work. This contractor hub also provides free healthcare assessments as well as voluntary counselling and testing for HIV/Aids (VCT) and once contractors are working on site they have access to all our healthcare facilities.

GRI
LA1
Total workforce by employment type, employment contract, and region.
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, and region.
EC7
Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.
Absenteeism [graph]

Absenteeism

In 2013, we had an absenteeism rate of 10.7% compared to 13.8% in 2012. This decrease reflects a return to average absenteeism levels, after the unusually high absenteeism recorded in 2012, which was as a result of the strike and related violence that took place at the end of that financial year.

Unplanned absenteeism remains a challenge in the operations and a number of projects are underway to mitigate the reasons for key team members not being at work.

Employee turnover [graph]

Employee turnover

In 2013 our employee turnover was 6.1% (2012: 6.2%).

We made significant progress towards the end of 2012 in a review of our operational management structure. This regrettably included 183 retrenchments, 53 of which were management positions. In doing so, we worked closely with affected employees and their respective trade unions, where applicable, as required by South African labour legislation, to consult on ways to minimise the impact of the restructuring. Voluntary separation packages were offered to employees and on-site counselling, as well as a helpdesk, was also provided. The review and restructuring has been designed in such a way as to minimise risk whilst positioning us to respond promptly to more favourable market conditions as they arise.

Breakdown of employee turnover by reason
2013 2012
Male Female Total Total
New recruits 1,735 119 1,854 2,016
Resignations -1,548 -157 -1,705 -577
Deaths (not work related) -224 -14 -238 -241
Deaths employees (work related) -3 0 -3 -2
Dismissals -667 -50 -717 -848
Retirements -101 -1 -102 -91
Retrenchments -166 -17 -183 -4
Net gain/loss 187 -38 149 253
GRI
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, and region.
LA7
Rates of injury, occupational diseases, lost days and absenteeism and total number of work-related fatalities by region and by gender.

Pension scheme and provident fund

We operate a defined-contribution pension scheme for employees and it is mandatory for our employees to participate either in an industry-based or a company-defined provident fund. We contribute between 14.4% and 20.5% to these funds, to which the employee also needs to make a contribution.

Other benefits

Other benefits that Lonmin provides to full-time employees include healthcare, life insurance, retirement provisions, on-site financial advisors and wellness counsellors, disability insurance, a share incentive programme for managers and an education protection plan which is built into the life insurance of employees. While we do not offer flexible time, there are sabbaticals available to employees who need them.

Maternity leave

During 2013 three people resigned after maternity leave. Lonmin offers four-months of maternity leave, with full salary.

GRI
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major significant locations of operations.
EC3
Coverage of the organisation’s defined benefit plan obligations.