EMPLOYEE RELATIONS
In terms of the employee relations policy signed by all recognised unions and management, partnership structures were established at various levels of the Group. The fully functional partnership structures are:

• the central partnership forum (CPF);
• the CPF steering committee; and
• the operating unit partnership forum.

The table shows the number of employees represented by the various majority unions.

The current employee relations policy is under review. The critical parts under review are trade union recognition and collective bargaining rights thresholds, which will result in the reduction of recognised trade unions from six to three. It is expected that the new employee relations policy will come into effect from 1 February 2009.

The employee relations values charter was signed off by management and unions on 16 October 2008. The purpose of the charter is to support company values and improve relations with employees.

Communication structures

The Group has implemented an employee communication policy. The objectives of this policy are to:

• promote the empowerment of line management, with emphasis on line management taking responsibility for being the primary communicators with their employees;
• ensure an understanding of the communication roles and responsibilities of all parties, and provide a common approach to communication within Anglo Platinum;
• create a framework to improve employee communication and put support resources in place allowing line management to achieve sustainable communication success; and
• monitor and audit the effectiveness of employee communication to ensure an understanding of how to improve on it.

The policy also details the structures of communication at various levels of the organisation, for example supervisors having face-to-face meetings with their teams to discuss production and safety issues.

On various matters of mutual interest to the Group and its employees, management regularly consults and communicates with employees belonging to trade unions through the transparent partnership and communication structures enabled by the formation of the central partnership forum (CPF). The convenors of these communication and consultation sessions are required to publish minutes of their meetings. This ensures that all relevant employees are kept informed about issues currently on the union and management agendas.

Human rights

South Africa is a signatory to the Universal Declaration of Human Rights, which is in turn reflected in the country’s constitution. Anglo Platinum has incorporated human rights principles into its code of ethics and business principles. These apply to all our operations, including projects in Zimbabwe and exploration in China. Material human rights issues have been included and should be viewed for further detail.

Non-discrimination
Anglo Platinum’s code of ethics and business principles declare that ‘we promote workplace equality and seek to eliminate all forms of unfair discrimination’.

The Group has subscribed to government and industry agreements and has amended its policies and procedures to ensure non-discrimination against foreign migrant labour.

Six cases of discrimination led to formal complaints and disciplinary procedures in 2008. The Group also subscribes to government agreements to ensure non-discrimination against foreign labour.

Freedom of association and collective bargaining
All Anglo Platinum employees have the right to freedom of association under the South African constitution and the Labour Relations Act, 1995. This right is also entrenched in the Group’s code of ethics, business principles and employee relations policy. The Group recognises trade unions with significant representation among its employees, and these in turn participate in collective bargaining forums with management. Some 84% of the Group’s employees are represented by trade unions .

Disciplinary procedures
The Group’s behavioural procedure governs the appeal process. In cases where an employee has been counselled, given a verbal warning, or a written warning, or both, or been handed a sanction arising from a hearing, the employee may appeal. The employee must appeal within three working days, in writing, to the employee relations practitioner. The manager or head of department will, within three working days, or as soon as reasonably possible, convene an appeal hearing, investigate the facts and circumstances, and assess the evidence led. The appellant has the right to be represented by a fellow employee or a trade union representative during an appeal.

Any appeal process is confined to the merits on which the request for relief is based, as being one of:

• wrongful verdict of guilt;
• unfair penalty/sanction in light of the circumstances of the offences; and
• substantive impropriety in that the appellant has been disciplined without reason.

The chairperson’s decision on appeal is final. There is only one level of appeal. Should the employee wish to take the matter further, he or she is entitled to process it in terms of the Labour Relations Act or any other applicable legal avenue. There were 444 appeals heard in 2008, with 16% of original decisions reversed.

Grievance procedure
Anglo Platinum’s grievance procedure is intended to create an environment that is conducive to good employee relations, by making provision for prompt and fair action when employees raise legitimate complaints. There are two recognised grievances, namely:

• an individual grievance, in which one person has a grievance; and
• a group grievance, in which more than one person has a grievance. In this instance, the aggrieved group may select up to five representatives to raise the grievance with their immediate supervisor. Union members must select shop stewards as representatives. Employees who are not members of a union must select a representative from the group that has the grievance. Individual and group grievances are treated in the same way, and the same procedure must be followed.

Should a grievance remain unresolved, the final management authority within that particular structural hierarchy at an operating unit is allowed an opportunity to resolve and take a decision on the matter, after which external dispute resolution mechanisms regulated by legislation may be employed by the aggrieved party or parties.

Labour disputes
There was a two-day unprotected strike by NUMSA in August 2008, arising from disagreement over the payment of production incentive payments. Some 282 NUMSA members were involved, resulting in 422 man-days lost. NUMSA members who participated in the unprotected strike received a warning.

Child labour, and forced and compulsory labour
Anglo Platinum does not make use of child labour and does not tolerate inhumane treatment of employees, including any form of forced labour, physical punishment, or other abuse. There were no incidents of child labour, or of forced or compulsory labour in 2008.

Indigenous rights
In its code of ethics and business practices, Anglo Platinum states that it recognises ‘the sensitivities involved in addressing issues that relate to the cultural heritage of indigenous communities’. The Group seeks ‘to ensure that such matters are handled in a spirit of respect, trust and dialogue’.

Anglo Platinum takes the view that most of what is intended in the Global Reporting Initiative’s definition of ‘addressing the needs of indigenous people’ is covered in the society section of the report that follows, in which relationships with the communities associated with its operations are discussed.

Security practices

Anglo Platinum continually monitors the implementation of the Voluntary Principles on Security and Human Rights in all its operations. The principles are relevant to many aspects of the Group’s security management, including risk assessment and interactions with public and private security providers. The principles are international best practice in the management of security and community risks.

The development of the course in Human Rights in Policing and the Train the Trainer programme for the South African Police Service (SAPS) was completed successfully in April 2008. This course forms part of the national SAPS curriculum. It is the hope of Anglo Platinum that this programme will help the SAPS improve the manner in which they deal with protesters and people under arrest. All Anglo Platinum security employees completed another, internally designed, comprehensive training programme.

In May 2008, Anglo Platinum undertook the exhumation of 149 graves at Blinkwater farm (82 graves were from Sekuruwe village), to make way for a new tailings dam at Mogalakwena Mine in Mokopane (see page 41). At the time of exhumation on 28 May 2008, a group of local activists blockaded access to the burial site and stoned the undertaker’s vehicle. The SAPS made numerous attempts to peacefully resolve the stand-off. When the stoning did not cease, the SAPS arrested 47 protesters.

On 3 June 2008 a blast was scheduled at Mogalakwena’s north open-pit mining operations. A group of 18 local female activists converged at the mine’s blasting danger zone next to the perimeter fence, defying all the safety instructions that were communicated by the mine. Members of the SAPS, who were also present, appealed to this group to move away from the danger zone for safety reasons. When the group continually ignored the appeals, the SAPS ordered them to get into their police vehicles. The activists obeyed without any resistance. The SAPS then transported them to a safe place without making any arrests. The mine conducted another pre-blast safety survey and continued with the blast as scheduled, without any further safety incidents.

Projects in Zimbabwe

The bigger Anglo American Group has been an investor in Zimbabwe for 60 years. The Unki project, which has been in development since 2003, is a long-term investment for a mine that is yet to start production and will not generate revenues for some years. It is envisaged that Anglo Platinum will own and operate the Unki Mine. Anglo Platinum is deeply concerned about the current political situation in Zimbabwe and condemns the violence and human rights abuses that are taking place there. It is monitoring the situation in Zimbabwe very closely and is reviewing all options surrounding the development of the project. It has been made clear to Anglo Platinum that, if it ceases to develop this project, the Government of Zimbabwe will assume control.

Anglo Platinum has a clear responsibility to protect the well-being of its more than 650 employees and contractors, of their families and of all those who depend indirectly on the activity around the project. All their livelihoods would be jeopardised should the Company withdraw from Zimbabwe. The responsible development of the Unki Mine will create a long-term viable business that will be important to the economic future of Zimbabwe for years to come. Anglo Platinum continues to support the communities around the project through a number of important social development activities, including the provision of basic food and supplies, the building of a dam to help support agriculture through the reliable supply of water, and the provision of financial and other assistance to the primary and secondary schools and community health facilities.

Exploration in China

Anglo Platinum is conducting exploration in the Sizhuan province of China and the Company has systems and processes in place to evaluate any human rights related issues.

1. AAplc

Anglo American plc, registered in the UK.

2. ABET:

adult basic education and training.

3. ACP

Anglo Platinum Converting Process, a pyrometallurgical process used at the Waterval Smelter complex in Rustenburg.

4. Adverse groundwater impacts on humans

evidence of adverse impacts on human health or activities as a result of discharge to groundwater.

5. ARM

African Rainbow Minerals Limited.

6. ART

antiretroviral therapy, used for the treatment of HIV/AIDS to mitigate the effects of the disease.

7. Asbestosis

a lung disease caused by inhaling asbestos particles.

8. Base metal

a common metal that is not considered precious, such as copper, tin or zinc.

9. Basel Convention

the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal was drafted and adopted in 1989 and came into effect in 1992. The convention works to reduce the movement of hazardous wastes to ensure that wastes are disposed of as closely as possible to where they were produced, and to minimise the generation of hazardous wastes in terms of quantity and level of hazard.

10. BDO

business development officer.

11. BEE

black economic empowerment.

12. BRPM

Bafokeng-Rasimone Platinum Mine.

13. CEO

chief executive officer.

14. CO2

carbon dioxide.

15. COSATU

Confederation of South African Trade Unions.

16. Discretionary spend

spending for the long-term profitability of a company.

17. DME

Department of Minerals and Energy of the South African Government.

18. DWAF

Department of Water Affairs and Forestry of the South African Government.

19. Effluent to surface water

total volume of excess water discharged to surface water (eg rivers, dams, pans) during the reporting period.

20. EMS

environmental management system.

21. Energy from processes and fossil fuels consumed

total energy excluding electricity purchased.

22. Energy from electricity

electricity purchased from the national utility, Eskom.

23. ESOP

Anglo Platinum’s share ownership plan.

24. Fatality

death resulting from an accident.

25. FIFR

fatal-injury frequency rate; the number of fatal injuries per 200 000 hours worked.

26. Fuels

diesel, petrol and paraffin consumed for processes and utilities.

27. Fundamental human rights conventions of the ILO

international labour standards covered in the Declaration on Fundamental Principles and Rights at Work (adopted by the International Labour Conference at its 86th session, Geneva, 1998): Convention No 29: Forced Labour, 1930 Convention No 87: Freedom of Association and Protection of the Right to Organise, 1948 Convention No 98: Right to Organise and Collective Bargaining, 1949 Convention No 100: Equal Remuneration, 1951 Convention No 105: Abolition of Forced Labour, 1957 Convention No 111: Discrimination (Employment and Occupation), 1958 Convention No 138: Minimum Age, 1973 Convention No 182: Worst Forms of Child Labour, 2000

28. GJ

gigajoules (109 joules).

29. Grease

total quantity of all types of grease used in all types of equipment during the reporting period.

30. Greenhouse gas emissions, CO2 equivalent

quantity of CO2 from electricity purchased and internally generated. Conversion factors used are as recommended by the Intergovernmental Panel on Climate Change (IPCC). Gases include CO2, CH4, N2O, HFCs, PFCs, SF6, and other CO2 equivalents.

31. Grey water

poor-quality water obtained from an external source, eg municipal sewage effluent. Does not include non-potable water, or internally recycled effluent.

32. GRI

the Global Reporting Initiative was established in 1997, with the mission of designing globally applicable guidelines for the preparation of enterprise-level, sustainable development reports.

33. Groundwater quality deterioration

monitoring results indicate deterioration of groundwater quality because of the operation’s activities.

34. Groundwater quality monitoring

monitoring programme to monitor water quality. Required sites are those identified for monitoring by legal permit requirements or by the site EMS.

35. Groundwater used

water abstracted/collected by the operation from groundwater sources, eg from boreholes and mine dewatering, which is used by the operation.

36. Hazardous waste to incineration

this may include heavy metal contaminated sludge; contaminated containers (reagent containers, oil/grease containers, anti-freeze drums); medical waste; vehicle batteries; and oil-contaminated material (gaskets, filters, soaking agents, rags). Incineration takes place in a facility designed and operated in a manner compliant with legislation or internationally accepted practice (this does not include burning of waste in a pit or open area).

37. Hazardous waste to landfill

this may include: heavy metal contaminated sludge; contaminated containers (reagent containers, oil/grease containers, anti-freeze drums); contaminated soil; and oil-contaminated material (gaskets, filters, soaking agents, rags).

38. HDSA

historically disadvantaged South African. Refers to ‘any person, category of persons or community, disadvantaged by unfair discrimination before the Constitution of the Republic of South Africa, 1993 (Act No 200 of 1993), came into operation’. The Anglo Platinum definition of HDSA includes employees who are classified as African, Asian, coloured or women, regardless of citizenship status.

39. HMO

health maintenance organisation.

40. ICMM

International Council on Mining and Metals.

41. IDPs

integrated development plans, as specified in the mining scorecard in respect of mine community and rural development, and legislated by government in terms of the Local Government Municipal Systems Act.

42. IFRS

International Financial Reporting Standard.

43. IIED

International Institute for Environment and Development.

44. ILO (International Labour Organization)

the specialised UN agency that seeks the promotion of social justice and internationally recognised human and labour rights. It was founded in 1919.

45. IMAGE

Intervention for Microfinance and Gender Equity.

46. IPA

International Platinum Association, which provides a communication forum for producers and fabricators, and facilitates market development.

47. ISO

International Organization for Standardization.

48. ISO 14001

an EMS standard published by the ISO.

49. IUCN protected area categories

the World Conservation Union (IUCN) defines a protected area as ‘an area of land and/or sea especially dedicated to the protection and maintenance of biological diversity, and of the natural and associated cultural resources, and managed through legal or other effective means’. IUCN categorises protected areas by management objective and has identified six distinct categories of protected areas.

50. JM

Johnson Matthey plc, a leading fabricator of PGM products and leading researcher and developer of PGM applications and uses, based in London.

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GRI INDICATOR CATEGORY AND REFERENCE TABLE

NM: Not material based on materiality test. BR: Business report. — No information provided.

*Parameter not reported as final figures for 2008 could not be verified.

2008 Environmental benchmarks (from published information)

BREAKDOWN OF EMPLOYMENT EQUITY PER OCCUPATIONAL LEVEL AT ANGLO PLATINUM

* Annual average as at 31 May 2008.

Anglo Platinum received a number of sustainable development related awards, including:

• The Limpopo MEC for local government and housing’s award for the best business partner addressing development in Limpopo;
• Best sustainability report in the Chartered Institute for Secretaries JSE reporting awards;
• Joint winner with Sasol of the Ernst and Young sustainability reporting award;
• Second runner-up in the resources category of the ACCA reporting awards; and
• Platinum award in the LACP reporting awards.

Membership of recognised unions and associations as at 31 December 2008

* Mouthpeace Workers’ Union, Commercial Workers’ Union of South Africa, Steel, Mining and Commercial Workers’ Union, and Building, Motor, Engineering and Allied Workers’ Union.