SUSTAINABLE DEVELOPMENT REPORT 2009
  1. Scope of this report
  2. Key features of 2009
  3. Corporate profile
  4. Sustainability principles
  5. Letter from the CEO
  6. Governance
  7. Economic performance
  8. Social performance
  9. Environmental performance
  10. GRI reporting index
  11. Mining Charter reporting index
  12. Glossary of terms and acronyms

Employment and human rights

Three employees in a lift, Koffiefontein

One of the most significant contributions made to sustainable development in Africa by Petra is the creation of jobs, directly through the continued employment at operations that might otherwise have been closed or down scaled, and indirectly through the employment of people and economic activity around operations.

Managing human resources

The organisational responsibility for human resources resides at the Company's office in Johannesburg, although each operation is responsible for the direct management of people.

Creating jobs

Petra is a significant employer in the diamond mining industry, particularly given that the Company’s operations are typically located in regions where little other economic activity takes place.

Petra is committed to being a good employer, and to applying fair and equitable labour practices in compliance with legislation. At the end of June 2009 Petra's total employee and contractor complement was 4,099 people, consisting of 2,865 employees and 88 contractors in South Africa; and 622 employees and 524 contractors in Tanzania.

Total number of employees and contractors - 30 June 2009

OperationPermanentContractorsTotal
Cullinan83583918
Koffiefontein464 -464
Kimberley Underground 375-375
Helam 417-417
Sedibeng 5665571
Star 166-166
Williamson 6225241,146
Head office 42-42
Total 3,487612 4,099

Employment equity and diversity

Petra is committed to the principles of employment equity as well as to achieving a productive and fair working environment free of discrimination. The Company strives to foster an organisational culture that encourages the appreciation of the diverse cultural backgrounds of its employees.

In South Africa Petra recognises the need to implement certain affirmative action measures to counteract the under-representation of certain designated groups in the workplace through recruitment, training and promotion of employees from these groups.

Petra's employment equity policy establishes the broad framework for the Company's employment equity approach. Each operation has a separate employment equity plan that sets numerical employment equity goals and it is the responsibility of the mine manager to ensure implementation.

Appointments are made in line with Petra's recruitment and employment equity policies, and in compliance with legal statutory provisions. In support of these legislative imperatives, the Company places special emphasis on recruiting, training and promoting employees from local communities, particularly historically disadvantaged South Africans (HDSAs) and women.

As most of the Company's operations are in remote locations, the attraction and retention of HDSAs in management positions has proved to be somewhat challenging. The establishment of the Leadership Development Programme, see case study: Developing employees for the long term, which aims to identify potential leaders and develop them into managers within the operations, addresses this challenge. Through this commitment to employee development, Petra aims to meet its employment equity target of 40% HDSAs in management, and to motivate employees to greater achievements for their personal benefit.

Employment equity targets are set annually and outlined in the operations' employment equity plans which are signed by both employee and employer representatives. These targets are submitted annually to the Department of Labour.

In accordance with the Shareholders Agreement between Willcroft Ltd (Petra’s wholly owned subsidiary which holds Petra’s 75% interest in Williamson) and the Government of The United Republic of Tanzania, Williamson is entitled to employ eight expatriates. A labour schedule reflecting the number of local, national and expatriate employees is compiled annually and signed off at mine level then submitted to the Department of Labour. Expatriates represent 1.43% of the Williamson labour force.

Women in mining

In South Africa women have historically, by law and through culture, been excluded from working in certain underground occupations. Also, working conditions and the sometimes arduous nature of mining activities have in the past made it unsuitable for women, thus making it difficult to attract and retain female employees. The MPRDA aims to promote the presence of women in mining and the Mining Charter sets a target that 10% of the staff complement should be women.

Issues relating to women in mining are being addressed by the human resource development committee, made up of both the employer and employee representatives, including selected women in mining representatives. Each operation has a nominated HRD Committee.

One of the main challenges in the recruitment of skilled women into production positions has been the high level of turnover as suitably qualified and trained women are attracted to larger operations and to less rural areas for more lucrative packages.

Benefits

Petra aims to be a fair employer, offering employees wages and benefits that are both market-related and reward individual effort. Benefits in addition to salaries include contributions to a medical aid scheme and pension fund, maternity leave allowance, and housing and telephone allowances for some employees.

Labour relations

Petra recognises the right of every employee to freedom of association and to join a trade union of their choice to collectively represent their interests. Petra undertakes collective bargaining in compliance with the Labour Relations Act.

In South Africa, Petra has concluded recognition agreements at all but one operation with the National Union of Mine workers (NUM), the most recognised and representative union. The operations negotiate with NUM on substantive issues such as wages, conditions of employment and other issues affecting employees in the workplace. The exception is the Kimberley Underground operation where a recognition agreement is being sought.

Solidarity and UASA are the other registered trade unions active at the company's operations. These unions have been granted certain rights but are not fully recognised as yet as they do not meet the representation threshold. They do however, hold major representation within the "skilled" working environment (Bands C and above) and so the Group continues to engage constructively with them.

The minimum notice period regarding major operational changes is governed by the Company's recognition agreements, industry agreements and legislations. This notice period is regulated by the Labour Relations Act.

Union representation in South Africa

 Percentage
No union18%
NUM62%
Solidarity11%
UASA9%
Total100%

There is a signed recognition agreement between Williamson and the Tanzania Mines, Energy, Construction and Allied Workers Union (TAMICO) in Tanzania. Wage negotiations are governed by means of a Joint Voluntary Agreement between Williamson and TAMICO and are held annually. Approximately 85% of the labour force is unionised.

Training and development

A key objective for the Group is to nurture and develop our skills-base internally so as to meet both the current and future skills needs of the organisation. The Group's Skills Development Policy guides our practice and programmes. The Petra culture offers an environment of progression and provides various training programmes to assist employees to advance in their chosen careers. Given the wide range of activities carried out by the Group, from mining, construction and engineering, to sorting and marketing, there are numerous opportunities for employees to gain diverse practical experience.

Petra actively engages with the Mining Qualifications Authority (MQA) in South Africa, the mining industry's recognised Sector Education and Training Authority (SETA). Training and development initiatives provide employees with the skills to improve not only their efficiency and safety in their working environment but also their ability to progress within the Company.

Active human resource development committees consisting of both management and employee representatives are in place at all operations to consider training and development and employment equity issues.

Established career paths are identified for every discipline as per each operation's Social and Labour Plan (SLP). Once an employee is earmarked for promotion, these career matrices are used to develop their individual personal and development plan.

Adult Basic Education Training (ABET)

In line with the South African Mining Charter, Petra is committed to increasing the literacy levels among its employees through Adult Basic Education and Training (ABET). It is estimated that 73% of the South African workforce is functionally literate and numerate (defined as having attained an ABET Level 3 qualification, which is equivalent to around 9 years of formal schooling).

Company-sponsored ABET is available to most employees on a voluntary and part-time basis. Mine-based ABET facilities are available at the Cullinan and Koffiefontein mines for employees. At the Star, Sedibeng and Helam mines, ABET is provided through the local ABET school. At these operations, Petra has partnered with local schools to the benefit of both parties. The Company provides financial and developmental support to these schools, as well as a continuous supply of students ensuring they remain open.

OperationPercentage of functionally literate and numerate employees
Cullinan67%
Koffiefontein72%
Kimberley Underground83%
Helam73%
Sedibeng75%
Star75%
Total73%

Some employees who have been identified as candidates for the Leadership Development Programme lack the relevant literacy qualifications to enable them to take part in the programme. The Company particularly encourages these employees to attend ABET for selection into the Leadership Development Programme.

Skills development and training

Petra recognises the benefits of skills development for the growth of the organisation and its employees. A skills development policy is in place at Petra, which establishes a broad framework for the operations’ workplace skills plans. These skills plans comprise the priority training interventions to be undertaken by the Company in a specific time period. The plans are updated annually and submitted to the MQA.

Leadership Development Programme

Petra recognises the value of developing employees both for the sake of the Company, as well as to empower employees to take up opportunities which become available through the Company's succession plans.

Against this background, and with the added objective of improving the retention of skilled employees, Petra's Leadership Development Programme was implemented at five of the Company's operations in July 2008 - Kimberley Underground, Koffiefontein, Sedibeng, Star and Helam mines. By the end of the first year, at 30 June 2009, a total of R1.5 million had been spent on this programme.

The main objectives of the Leadership Development Programme are to:

  • empower employees to develop leadership skills and competencies;
  • provide a foundation for succession planning;
  • retain valuable employees by establishing clear career paths; and
  • develop HDSA employees especially at management level.

There are two development pools in which candidates are placed based on their experience and envisaged development level: the senior pool consists of a five-year programme while the junior pool comprises a three-year programme. Based on candidates' individual development requirements, they are scheduled for individual tutoring and coaching. The selection process includes an interview and psychometric testing on nomination at department level.

The 2008/2009 intake was 70 candidates, 43 of whom successfully completed the first year of the programme and have started the second; and 27 new candidates who started in July 2009. The programme consists of training courses, individual and group assignments, mentoring, tutoring and coaching on both an individual and team basis.

The Leadership Development Programme is showing good signs of success: workplace performance feedback and psychometric tests have indicated an improved work ethic and leadership skills in the candidates of this programme.

A formal mentorship programme compliments leadership development. A highlight for 2009 was the first mentor-mentee workshop help in August 2009 to increase the impact of mentorship and promote mentor-mentee relationships. In addition, there was an inspiring personal leadership course, an outbound event in which candidates focus on self-development, that had a major impact on the programme candidates.

Leadership candidates per job category and mining operation

Total 70 candidatesJob categories   
Mining operationMining PlantEngineeringSupport service
Koffiefontein4564
Kimberley Underground4320
Helam2001
Sedibeng1026
Star0102
Total19111723

Bursary scheme and internships

Petra’s bursary scheme aims to meet the targets outlined in each operation’s SLP. Six bursaries and two internships (all HDSAs, one woman) are due to commence in December 2009 and January 2010. No bursaries were offered by the Group in 2008. These bursaries are provided in the following disciplines: engineering, mining engineering, geotechnical engineering, and geology, all at tertiary level. A budget has been allocated for the bursary scheme for 2010.

Accommodation and living conditions

In the 2009 financial year, 1,952 employees (47.6% of the workforce) resided in company-provided hostels. A critical element of Petra's housing strategy is to encourage home ownership by providing employees with living-out allowances, thus empowering them to leave company-owned accommodation.

  • At Sedibeng, the hostel facility is only available for emergency accommodation as the hostels have been vacated in favour of living-out allowances.
  • Approximately 69 employees (38%) reside in the hostel at Star. All new appointments are now being sourced from the local community, which means they live near the mine. The Star mine hostel is expected to be shut down in the 2010 financial year.
  • At Cullinan, approximately 135 employees (15%) reside in the hostel although plans are underway for other accommodation alternatives for these employees.
  • At Helam, approximately 458 people reside in the hostel.
  • At Koffiefontein approximately 90 employees resided in the hostel.
  • There is no hostel at Kimberley Underground.
  • Approximately 1,146 employees and contractors reside in the Mwadui Township at Williamson.

A process is in place for consultations every two years with the health and safety committee as well as contracted dieticians for the revision and upgrade of menus. Nutritional research in the industry is also monitored on an ongoing basis and recommendations implemented when necessary.

The Company's nutritional requirements are determined in line with various regulations in respect of the energy needs of employees. An international guideline, the Food and Nutrition Board of the Institute of Medicine of the United States directs the macro and micro nutritional needs. The Dietary Reference Intake, a collective term for at least four nutrient based values ensures that employees avoid deficiency, maximising their health and quality of life. The vitamin C requirement is the only exception. Although the normal RDA is 90mg, the recommended daily intake for underground workers in the mining industry is 250mg. This is to combat heat stress as higher vitamin C levels assist with heat acclimatisation.

Respect for human rights

As a company operating primarily in South Africa, Petra is bound by the human rights policies enshrined in the South African constitution. South Africa's endorsement of various International Labour Organization (ILO) principles relating to forced, compulsory or child labour is also binding on Petra.

There were no contraventions of these principles declared in the 2009 financial year. In addition, none of Petra's operations are deemed to be at risk of breach in this regard.

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In this section:

  1. Health and safety
  2. HIV/AIDS and malaria
  3. Employment and human rights
  4. Community
  5. Case studies

GRI indicators
covered on this page:

Occupational health and safety
EC7
Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation
Employment
 
Management approach
LA1
Total workforce by employment type, contract and region
LA2
Total number and rate of employee turnover by age group, gender
LA3
Benefits provided to full-time employees
Labour/management relations
LA4
Percentage of employees covered by collective bargaining agreements
LA5
Minimum notice period and consultation and negotiation practices with employees and/or their representatives regarding operational changes
Training and education
LA10
Average hours of training per year per employee per 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
Diversity and equal opportunity
LA13
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity
Human rights
 
Management approach
Investment and procurement practices
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained
Non-discrimination
HR4
Total number of incidents of discrimination and actions taken
Freedom of association and collective bargaining
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights

Petra Diamonds Limited

November 2009 | Sustainable Development Report 2009