Draft Mining Charter: Solidarity raises concerns about it being in conflict with Employment Equity Act; Charter’s timing wrong

13 July 2016

Trade union Solidarity today expressed its concern in a presentation made to the Department of Mineral Resources, as part of a consultation process, over certain aspects contained in the draft Mining Charter that are inconsistent with the Employment Equity Act and other international conventions.

According to Solidarity General Secretary Gideon du Plessis, the Charter proposes unrealistic employment equity targets and the implementation of quotas is inconsistent with the Employment Equity Act. “Realistically, it means a mining house could lose its mining licence due to non-compliance with the Charter, especially due to the prescribed 26% black ownership that applies at all times,” Du Plessis explained. 

“The Charter also lacks information on sustainability plans as well as occupational health and safety plans,” Du Plessis said. According to Du Plessis, transformation must take place against a background of sustainability and safety to ensure growth in the mining sector in order to create, among other things, more job opportunities, which would ultimately facilitate transformation.

According to Du Plessis, the timing of the implementation of the Charter is bad as the mining sector is already heavily burdened by external and internal factors landing many mines in a struggle for survival. In addition, about 30 000 miners are currently facing retrenchment. 

Du Plessis also makes the point that the trade union is concerned about further regulatory uncertainties the Charter would bring about. “Solidarity is particularly concerned about the financial impact of the “new tax opportunities” created by taxing 1% on the turnover and 5% on the payroll of companies and international suppliers, which levies are to be allocated to training and community development programmes. Such additional expenditure would mean that marginal mines would either have to close and retrench workers, or would have to grant smaller increases. Workers would thus pay the price of the direct costs the Charter imposes on employers,” Du Plessis said.

According to Du Plessis Solidarity proposes that:

- The draft charter be amended to set more realistic employment equity targets;

- Aspects that are in conflict with other legislation and conventions be rectified;

- All new forms of hidden new taxes be scrapped;

- The charter’s main focus be changed to training and skills development; and that

- A balance be created between empowerment of workers and retaining other skilled workers who are not advantaged by the charter. 

“The mining sector’s focus should now be on the implementation of the Mining Phakisa’s outputs and the guidelines contained in the National Development Plan, thereby helping the sector to grow and to create jobs for the benefit of all in South Africa,” Du Plessis explained.

Issued by Gideon du Plessis, General Secretary: Solidarity, 13 July 2016