Social Plan Approach in South Africa: Briefing Session to Parliament

1. Social Plan Approach in South Africa Briefing Session to Parliament : 26 October 1999 Ms N E Marumo Department of Labour

2. Definition of the Social Plan Approach • The Social Plan Approach aims to : 1. Avoid job losses and employment decline wherever possible, 2. Actively manage retrenchments and ameliorate their effects on individuals and local economies.

3. Background to the Social Plan • The National Union of Mineworkers (NUM) tabled a proposal for reducing the effects of retrenchments to the Trade and Industry Chamber of Nedlac on 12 October 1995. • NUM also called for a Gold Mining Summit which was held 26 - 27 February 1998.- Gold Crisis Committee established. * Social Plan Task Team implemented as one of five task teams. • Draft Nedlac agreement tabled to Parliament - 25 March 1998.

4. The National Union of Mineworkers (NUM) tabled a proposal for reducing the effects of retrenchments to the Trade and Industry Chamber of Nedlac on 12 October 1995. • The Declaration of the Presidential Jobs Summit (October, 1998) outlines a Social Plan which aims to: - avoid job losses and employment decline wherever possible, and - seeks to actively manage retrenchment and - to reduce its effects on individuals and local economies when large job losses are unavoidable.

5. Principles of a Social Plan Approach • A social plan approach is applicable where there is a threat of large-scale retrenchments (500 people or 10% of the labour force of the company). • This approach aims to reduce the social and economic impact for individuals, regions and the economy. • It promotes negotiation about threats to employment security and measures which can be taken to avoid employment decline.

6. A social plan approach is essential in cases where there is a reasonable possibility that alternatives could be developed to save jobs. Phases of the Social Plan Approach • Phase 1 : Save jobs. • Phase 2 : Manage retrenchments. • Phase 3 : Regeneration of local economies.

7. Progress on the Social Plan Approach

8. Phase 1 : Save Jobs • 1.Future Forum - ongoing discussions between employees and their reps and company management to pro-actively deal with related issues and challenges. This is encouraged wherever possible. • 2. A Social Plan and Productivity Advisory Council (SPPAC) has been established : aims to provide technical assistance (through the SPTSF) and possible economically viable solutions to threatened companies. • - Rules for and criteria of operations for SPTSF was developed.

9. Phase 2 : Manage Retrenchments • Retrenchment Response Team : • Established and operational in all Provinces. • Guidelines for their actions developed. • A Job Advice Centres where the Department of Labour will assist with retrenchment counselling. • Six retrenchment exercises have been dealt with. • Libanon Mine • Buffelsfontein Mine • Randfontein East Mine • Eastern Transvaal Consolidated Mine, Barberton • NUM/AVGOLD/DOL project • 3.Standard services offered by the Department of Labour

10. 3. Standard services offered by the Department of Labour • Info pack for retrenchees developed and printed :* How to cope personally. * Support : Family and friends. * Supportive community. * Know your health rights. * Further your training. * Know your legal rights. * Manage your money matters : Make your severance package work for you. * Job hunting hints. • CASE research in mining, textile, insurance • and general industries sectors showed positive results on relevancy of contents and user- friendliness. • - For the purpose of awareness, sensitization and advocacy, posters have been printed. • - Counselling video.* Development of counselling video in process.

11. Additional services offered to retrenchees : • Group counselling on the following aspects :* Managing change. • * Getting motivated. • * Getting that job. • * Where to now? • * Managing your money. • Employment counselling : • * Skills assessment and Recognition of Prior Learning (RPL). • * Assessment of potential & careers planning. • * Referral to an accredited training provider. • * Training and re-training of retrenchees in line with the Skills Development Act, 1998.

12. Training ticket : In all 6 retrenchment exercises so far the employer and the Department of Labour came to an agreement on a training ticket for retrenchees where each contributed 50% to the training or re-training of the retrenchees. • Placement services. • Registrationas job-seeker and for unemployment insurance. • Labour market opportunities, local economic development initiativesand other employment opportunities. • In all retrenchment exercises the Department of Labour provided the above services.

13. 5.Services offered to employers and union representatives : - Info package for employers developed, inclusive of info guidelines.- Training of HR Practitioners : the sensitization for and the handling of the retrenchment process. • 6. Training of counsellors by the SA Breweries : 35 counsellors from the Department of Labour trained in retrenchment counselling. • - Train-the-trainer course for Employment Services practitioners. • * The counselling is very effective - A pilot ran in Mooitex, Mooi River, showed important improvement in all indicators of psychological health on a SRQ of the WHO on a pre- and post intervention study.

14. Ministerial Notification Process • A written ministerial notification process has been put into place to ensure : - Preventative measures are given a chance : • SPSTF • Verification teams • Mining industry • - When all else has failed : • 2nd notification is timeous • preparation for the intervention (counselling, training) information on the services • - Co-ordination of services between all relevant departments and stakeholders, e.g. Public Works, DTI. • - All the relevant institutions (Departments of Labour, other govt dept’s the NPI) are informed.

15. Notifications received : • Mines : Buffelsfontein, Eastern Transvaal Consolidated Division of Avgold, Loraine, Evander, West Driefontein, Grootvlei, Randfontein East, Oryx, East Rand Proprietory Mines, Durban Roodepoort Deep, Libanon. • Other organisations : Transnet, Department of Water Affairs and Forestry, Department of Defence, Mooitex, Van Dijk Carpets, Standard Bank. • These notifications were referred to the Department of Constitutional Affairs and the NPI for notice.

16. Phase 3 : Regeneration of Local Economies The Social Plan Fund • Responsibilityof the Department of Constitutional Affairs. • The Regenerating Local Economies Project Steering Committee established. • Administers the identification of affected municipalities and approval of distribution of R50 000 grants for Local Economic Regeneration studies. -representativesfrom government, donors, private investors and financial institutions. • LED and SP funds launched. • Information pamphlets published. • Intervention of local authorities. • Mooi River, Botshabelo, Eastern Cape

17. Support to Small, Micro and Medium size Enterprises (SMME’s) • Department of Trade and Industry :- Retrenched mineworkers are referred to Khula and Ntsika services. • Mineworkers Development Agency : - The following Development Centres have been established : Kokstad : Anglogold/NUM fund Klerksdorp : Goldfields/MDA fund Bophirima : Anglogold/NW Govt.

18. Carletonville : NW Govt. Jane Furse : Carletonville TLC, Anglogold, Gold Fields. Mozambique : Billiton Dev Fund Umtata : Anglogold/NUM Fund UNOPS SMME Prog. - Establishment of Central Buying Agency and Local Outlets (EC and Lesotho) - discussions with Goldfields.

19. Proposals on SA and SADC co-operation • Implications of retrenchments in the region - mining and farming. • The possible extension of the principles of the Social Plan Approach to the SADC countries : i.e. reduction of tariffs, employment support in the region. • The role of TEBA/MDA for retrenched mineworkers support. • Tripartite workshop with Mozambique, Swaziland, Lesotho, Botswana and Malawi to be held from 31 October – 2 November 1999. • Review of bilateral agreement (overall labour migration policy) • Spatial Development Initiatives (e.g. Maputo corridor)