Underground Mining + Oil & Gas + Power & Water
During FY2019, employee engagement surveys were conducted in all businesses to better understand employee perception and inform improvements. Overall the insights gained from the surveys were positive and indicate the following:
The low resignation rates experienced across the Group during the year support the survey results – Clough at 2.0%, Cementation Americas at 7.9%, RUC Cementation at 7.2% and 3.1% across the South African operations where 51% of the workforce is based.
Going forward, various initiatives will be implemented to address the areas we have identified as opportunities to improve, including:
The strong recovery in mining activity in Australia and North America over the past few years has led to increased competition for skills in these regions. In Southern Africa, shaft sinking and mechanised mining skills are scarce. These factors, together with the demand for mine owners and contractors to employ from communities in close proximity to mines, make effective training and development essential.
Employee relations are sound within all three of the platform’s business units. In South Africa, management has professional and constructive relationships with union representatives and officials. Wage negotiations were concluded during the second quarter of the financial year, notwithstanding a protracted strike by the National Union of Mineworkers at the Venetia project. An agreement was reached for the next three years.
Oil & Gas actioned several new processes and programmes to address areas raised for improvement in the employee engagement survey. New IT and management systems have been implemented to improve processes and workflow. A reward and recognition programme was introduced in FY2019 to identify and reward high-performing employees on a more frequent and less formal basis.
The hard reality for Power & Water is that as the Medupi and Kusile projects come to an end, there is currently insufficient investment in its core markets in South Africa to maintain its earnings potential. As such, it completed another carefully considered restructure to right-size the business for lower revenue potential in FY2019. The unavoidable retrenchments have been dealt with in a fair and responsible manner. Going forward, the platform intends to develop a core group of permanent artisans and supervisors supplemented by employees with limited duration contracts to meet project requirements.