Employment and human rights

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

Operation	Permanent	Contractors	Total
Cullinan	835	83	918
Koffiefontein	464	-	464
Kimberley Underground	375	-	375
Helam	417	-	417
Sedibeng	566	5	571
Star	166	-	166
Williamson	622	524	1,146
Head office	42	-	42
Total	3,487	612	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 union	18%
NUM	62%
Solidarity	11%
UASA	9%
Total	100%

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.

Operation	Percentage of functionally literate and numerate employees
Cullinan	67%
Koffiefontein	72%
Kimberley Underground	83%
Helam	73%
Sedibeng	75%
Star	75%
Total	73%

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 candidates per job category and mining operation

Total 70 candidates	Job categories
Mining operation	Mining	Plant	Engineering	Support service
Koffiefontein	4	5	6	4
Kimberley Underground	4	3	2	0
Helam	2	0	0	1
Sedibeng	1	0	2	6
Star	0	1	0	2
Total	19	11	17	23

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.

In this section:

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