Structure of Presentation on Ex-Mineworkers Union

PRESENTATION BY THE CHAMBER OF MINES (CHAMBER) ON THE EX- MINEWORKERS’ UNION

1. BACKGROUND ON THE COM The Chamber is a lobbying and advocacy and wage negotiating body. The Chamber is not running any retirement funds. TEBA is also an independent body – it has its own board of directors. The Chamber has indicated on numerous occasions to Mr Nomazele that it does not handle any matters relating to pension and compensation payouts and has accordingly directed him to the relevant bodies that deal with these issues.

2. BACKGROUND ON THE INTERACTION BETWEEN THE CHAMBER AND THE EX-MINEWORKERS UNION . According to the Chamber’s records, Mr Elliot Nomazele started writing petitions to the Chamber / TEBA on 17 November 1998. Initially, he wrote under the banner of the United Peoples Union of South Africa (UPUSA), at which time he strenuously denied the legitimacy of the National Unions of Mineworkers (NUM) as representative of the interests in the mining industry. He later changed his banner and wrote under: an altered NUM letterhead, without any official position in that Union; Mineworkers Development Project, an unknown organisation; and then The Ex-Mineworkers Union.  The Chamber has responded to a plethora of letters and petitions received from Mr Nomazele over the past 9 years. Furthermore, several meetings were held with Mr Nomazele, including one where he came with a delegation led by General Bantu Holomisa on 9 September 2003, where the Chamber presented him (Mr Nomazele) with a comprehensive report on institutions that deal with compensation issues.  The Chamber does not recognise the “Ex Mineworkers Union” as authority to speak on behalf of employees or ex-employees.  The Chamber recognises the NUM as the employees and ex-employees’ representative.  The Chamber is not willing to again meet with this organisation. It feels that the organisation appears to create unrealistic expectations among innocent, poverty stricken people about all types of payments that are not due to them.

3. THE EX-MINEWORKERS’ UNION STATUS AS A UNION  The Chamber is not aware of the legal status of the “Union” . The Department of Labour (DOL) has, however, confirmed that it is not a union as it is not registered with the DOL. It has also never applied to be registered. The DOL has also advised that, should it apply to be registered, it would not be successful in its application as a union can only represent employees, not ex-employees.  Requirements to be a union . Defined as an association of employees whose principal purpose is to regulate relations between employees and employers, including employers’ organisations. Debatable whether the Ex-Mineworkers Union is a union for purposes of the Labour Relations Act (LRA). . If it is a union, it needs to be registered with the DOL before it would be entitled to the organisational rights provided to unions by the LRA. . To be registered, a union needs to: have a constitution that meets the requirements of the LRA (association not for gain, qualifications for membership, membership fees and the method for determining such fees, establish the manner in which decisions are made; provide for banking and investing its money, establish the purpose for which its money is used); has an address in SA; and is independent.  It might be necessary to determine how the Ex-Mineworkers Union is funded if it is not a union – does it have authority to be funded (e.g. as a Section 21 Company not for profit?)

4. ISSUES RAISED BY THE EX-MINEWORKERS UNION

4.1 Pension and death benefits a) Death benefits: Mineoworkers Provident Fund (MPF). Note:  This is only for people who were in service after 1989.  For these persons, it is only paid out upon death, NOT if they leave the service of the mine.  Only coverage for death on duty and one year after leaving service of the mine.  Death benefit: 36 months’ basic salary.  Funeral benefit: R 10 000 iro deceased employee (R 5 000 iro deceased spouse and between R 5 000 and R 2 000 for children of the mineworker).  Enquiries to the MPF – see Annexure A for the address. (Address already supplied to the Ex-Mineworkers Union) b) Non-payment of provident fund: MPF. Note: This is only for people who were in service after 1989 Enquiries to MPF – see Annexure A for the address (Address already supplied to the Ex- Mineworkers Union.) c) Long service award scheme (LSAS) This is administered by TEBA. The particulars of this scheme is attached hereto as Annexure B. See Annexure A for TEBA’s address. (Address was supplied to the Ex-Mineworkers Union.) TEBA headoffice (Gerhard Human at 011-353-6016) met with Mr Nomazele earlier this year. He was told to work through TEBA’s branches in the Eastern Cape (of which there are currently 15). He was specifically referred to Mr Pat Flammingan of TEBA’s King Williamson Town branch. d) 1970s Provident Fund The Ex-Mineworkers Union provided the 1970s Fund with a list of names and employee numbers. The Fund went through all of its records to determine whether any payments have not been made. Nine such cases were found, and the payments have in the meantime been made. The contact details of the 1970s Fund is attached under Annexure A. (The address was supplied to the Ex-Mineworkers Union.)

4.2 Occupational injuries and diseases a) Occupational injuries payment: by the Rand Mutual Assurance (RMA), or in some cases in terms of the Compensation for Occupational Injuries and Diseases Act(COIDA). b) Occupational diseases (e.g. mine related TB, silicosis): MBOD and CCOD.  Note: Must be X-rayed by the nearest hospital, and application is sent to MBOD, to determine eligibility (e.g. have worked for mines, etc) c) R54 Million issue In regard to allegations that the Chamber had paid a sum of R54 million that belonged to the Ex-Mineworker Union’ members to the former Transkei Government, we wish to point out the following: . The Chamber or the mining industry is not in any way involved in this issue. Let me explain: . The previous South African Government paid to the former homelands of Transkei and Ciskei, an amount of money for the payment of compensation for occupational diseases to an estimated 11 500 ex-mineworkers. . When these areas were incorporated into South Africa after the democratic elections, the money had to be repaid. An amount of R54m was accounted for. . The records of the former mineworkers to whom this applied, were for some time lost in the offices of either the MBOD or the CCOD (Both falling under the Department of Health), so contact with the beneficiaries were lost. The Department hopes to get these beneficiaries through the benefit medical examinations (BME’s) process. . In 2002, the then Premier of the Eastern Cape, Rev. Makhenkesi Stofile established a Task Team, comprising of representatives from the Ex-Mineworkers Union, NUM, Depts of Labour and Health to investigate complaints received from the Ex- Mineworkers regarding benefits emanating from occupational diseases and injuries while working at the mines. . Amongst others, this Task Team agreed that: - The Department of Health will verify the lists received in order to find the names and particulars of the beneficiaries of the R54m. - The Provincial Department of Health in the Eastern Cape will continue with the benefit medical examinations (i.e. BME’s). - The National Department of Health will assist the Provincial Department of Health on capacity building in the areas of training of health workers to do BME’s in the health institutions in the Eastern Cape. - The NUM and other formed organisations of the examiners will continue to encourage ex-miners to go for BME’s. - The Provincial Department of Health will draw an action plan and identify areas of assistance needed for National Department to assist. - Lists of beneficiaries and prospective beneficiaries will be chanelled through the Provincial Department of Health to the National Department of Health. . It is also important for the Ad Hoc Committee to make follow-ups with both the Eastern Cape Provincial Department of Health and the National Health Department to ascertain progress made regarding the benefits medical examinations and compilation of lists of bona fide beneficiaries and prospective beneficiaries. The Chamber is not in a position to assist in resolving medical claims against the Department of Health as it has no special influence over this Department, or for that matter, any government department.

5. EX-MINEWORKER PROJECT OF THE CHAMBER OF MINES, DEPARTMENT OF HEALTH AND THE NUM a) An initiative to ensure required tests for occupational diseases (benefit medical examinations – BME’s) are done, and that ex-employees who are found to have occupational diseases, are paid their compensation b) A total amount of R42m over 5 years allocated for this purpose c) Will be launched in various areas (starting in Nongoma), and rolled out over the 5 year period. d) Funded by the industry, but purpose is not for industry to create the infrastructure – Purpose is to built capacity at the Provincial Hospitals to undertake this function on a regular basis e) Another element is local development initiatives, in cooperation with the relevant authorities.

6. IN CONCLUSION The Chamber has given the Ex-Mineworkers Union full details of the appropriate government and private bodies to deal with their various queries. It is therefore our belief that the Chamber of Mines has done what it can to assist the Ex-Mineworkers Union in resolving the list of issues that has been submitted (repeatedly) to the Chamber and would like to urge them to direct their queries to the relevant bodies, especially the Department of Health in the Eastern Cape and at the Head Office in Pretoria. ANNEXURE A

CONTACT DETAILS FOR PROVIDENT FUND AND WORKERS COMPENSATION

1. MINEWORKERS’ PROVIDENT FUND (MPF) (For persons who were employed in the gold and coal mining industry after 1989)

The Principal Officer MPF P O 1583 JOHANNESBURG 2000

2. DEATH BENEFIT SCHEME

The contact details for Death Benefit Scheme are the same as the Mineworkers Provident Fund (see 1. above).

3. THE 1970’S PROVIDENT FUND (For persons employed in the mining industry before 1989)

The Principal Officer Mines 1970 Provident Fund P O Box 61809 MARSHALLTOWN 2107

1. LONG-SERVICE AWARD SCHEME (LSAS)

This is administered by TEBA and the relevant information is attached as Annexure B.

TEBA’s address is the following:

Manager Mineworker Benefits Department TEBA P O Box 62251 MARSHALLTOWN 2107

5. SKILLS DEVELOPMENT ISSUES

Mining Qualification Authority CEO: Mr Livhuwani Nengovhela

Address: Private Bag x 118, Marshalltown 2107

6. OCCUPATIONAL DISEASES IN MINES AND WORKS ACT (ODMWA)

Compensation for occupational lung disease for workers who perform risk work in mines and works is provided in terms of the ODMWA, Act 78 of 1973. It is a state run compensation system, and diseases such as asbestosis, silicosis, coal worker’s pneumoconiosis, and cardio-respiratory tuberculosis related to risk work are covered. The two institutions established to fulfil the provisions of the Act are the Medical Bureau of Occupational Diseases (MBOD) and the Compensation Commissioner for Occupational Diseases (CCOD) both based in Braamfontein.

6.1 Medical Bureau of Occupational Diseases (MBOD) (to determine eligibility for compensation)

MBOD Director: Dr Lindiwe Ndelu P.O. Box 4584 Johannesburg 2000

6.2 Compensation Commissioner for Occupational Diseases (CCOD) (payment of compensation after MBOD has determined eligibility)

CCOD Compensation Commissioner: Mr Benedict Mashego P O Box 4566 Braamfontein 2001

7. OCCUPATIONAL INJURIES

Rand Mutual Assurance (RMA) provides cover for occupational injuries and noise induced hearing loss for its members (i.e. most members of the Chamber of Mines). However, those mines that are not members of RMA pay their levies directly to the COIDA compensation office in Pretoria, who provides the cover.

7.1 COIDA Compensation Office (Pretoria)

Compensation Commissioner: Miss Bongi Mogojo

P.O. BOX 955 Pretoria 0001

7.2 Rand Mutual Assurance (RMA)

Medical Director: Dr Arthur Begley ANNEXURE B

SUMMARY OF RULES OF LONG SERVICE AWARD SCHEME (LSAS)

Object of Scheme

In terms of the Chamber of Mines Long Service Award Scheme awards may be payable to category 3 to 8 employees in respect of service that is not pensionable in terms of the rules of the Mineworkers Provident Fund, the Mines 1970 Provident Fund, the Mines 1970 Pension Fund or any other pension or provident fund operated in the mining industry.

Notwithstanding anything to the contrary that may be expressed or implied in the rules, the scheme shall not confer on any employee, former employee or other person any right to the payment of an award.

1. Eligibility

An employee or dependent may become eligible for an award in terms of any one of the following award qualifications:

1.1 attainment of age 55 whilst in service – with at least 120 months completed service.

1.2 attainment of age 55 within 12 months after leaving service – with at least 120 completed months service.

1.3 attainment of age 55 – where an employee was out of service for more than 12 months with at least 180 completed months service and where the employee was in service at any time after 1 January 1981, but who is no longer in the service of an employer.

1.4 permanent incapacitation whilst in service – with at least 120 completed months service.

1.5 permanent incapacitation within 12 months after leaving service – with at least 120 completed months service.

1.6. death whilst in service – with at least 120 completed months service.

1.7 death within 12 months after leaving service – with at least 120 completed months service.

1.8 death after 15 years of service with at least 180 completed months service, etc. (see 1.3).

1.9 retrenchment – where the employee obtained the age of 50 years whilst in service – with at least 120 completed months service.

1.10 supplementary award payment – where an employee returns to service, after the completion of the service in respect of which an award was paid provided at least 120 additional months service was completed.

2. Calculation of Long Service Awards

2.1 Determination of Aggregate Service:

Each calendar month during which an employee is in the service of an employer for a continuous period of at least 16 days shall be recognised as a month of service. 2.2 Determination of Eligible service:

The amount awarded is based on that portion of aggregate service which is eligible service. Eligible service is calculated as each months service, excluding:

. period of service which is pensionable in terms of the schemes referred to in the first paragraph hereof, and

. service in respect of which an award has already been paid.

2.3 Rates of Award:

Employees who were in service on or after 1 January 1981 will have their Long Service Awards calculated according to the rates of their period of eligible service. These rates vary from:

. R7.50 to R15.00 for work on surface (category 3 to 8). . R10.50 to R21.00 for work underground (category 3 to 8). . R15.00 to R21.00 for staff employees (category 3 to 8).

2.4 Calculation of Awards:

The amount of the award payable to an employee or dependants of an employee in respect of each period of eligible service shall be calculated as follows:

. Number of months of eligible service multiplied by the rate applicable to the highest job category the employee obtained during that particular period of eligible service.

The total award payable shall be equal to the sum of the amounts payable in respect of each period of eligible service (except pensionable service).

3. Responsibility for Processing and Payment of Awards

3.1 Employer responsibility:

If an employee in the service of an employer has or will become eligible for an award on the date of his discharge such employer shall be responsible for the processing of the award and for the payment of the award on or before that date.

3.2 Teba Ltd responsibility:

If the employee is out of service and becomes eligible for an award, such employee may apply to the responsible (last) employer for an award, or, if he was recruited by Teba Ltd, apply to Teba Ltd. Teba Ltd may in its discretion refer such application to the last employer for service verification purposes.

3.3 Death of an employee:

If the employee dies whilst in the service of the employer, the employer shall be responsible for establishing whether his dependants, if any, would be eligible for an ward and whether or not he is in fact survived by dependant. Teba Limited may be requested to furnish dependant information and render assistance for the purpose of the processing of the award.