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The Concept of a Just Transition is as Relevant to the Fourth Industrial Revolution as it is for the Move towards a Low Carbon Economy
(Sam Tambani Research Institute, 2020) Kaggwa, Martin; Sithole, Sinenhlanhla
Two parallel developments are taking place in Africa, that are of key significance to workers. The first one is the concerted effort to move the national economies from depending on fossil-based energy to a clean low-carbon energy. The second is the continents gradual embrace of the Fourth Industrial Revolution (4IR). Organized labour has been active, in some countries like South Africa in engaging parties advocating for and implementing the transition to low-carbon economies to ensure that the interests of workers and communities are taken care of and are not sacrificed in the transition. Organized labour refers to the process of energy transition that takes into account the interests of workers and workers’ communities as ‘a just transition’. Regarding the 4IR, organized labour has not yet come up with a clear and consensus-based position on how to deal with the revolution. Organized labour’s position on 4IR can at best be described as a work in progress. Against this background, and in recognition of the need for organized labour to urgently engage with the 4IR phenomenon, this article makes the case that worker-related tenets of a just transition in the energy sector also apply to a migration to the 4IR economy. As such, organized labour should form a common position demanding a just transition to the 4IR. The proposal of what should constitute a just transition to the 4IR should mirror that of the just transition to a low-carbon economy as articulated in the International Labour Organisations (ILO’s) Decent Work Agenda. In particular it should include, social dialogue, social protection, rights at work and employment creation and protection.
Unpacking Employee Share Ownership Plans ESOPs
(Sam Tambani Research Institute, 2019) Sithole, Sinenhlanhla
Globally, the empowerment of historically disadvantaged groups, economically, is not uncommon. As such preferential policies geared towards transformation have been a common feature especially towards advancement of historically disadvantaged groups. One such empowerment policy has been that of Employee Share Ownership Plans (ESOPs). Globally, employee empowerment schemes are considered to be part of many public and private companies and despite the availability in various forms of employee ownership programs, ESOPs have proven to be met with much success in comparison. ESOPs have been implemented successfully by many international companies in many different sectors. Construction companies, banks, insurance companies, textile manufacturers, architectural firms, health care providers, hotels and resorts and many other industries have successfully employed ESOPs, (Rosen et al 2005). Despite the availability of many empowerment schemes, ESOPs have received the most universal acceptance and support. However, despite their perceived success in terms of acceptance, how ESOPs have fared internationally has been highly dependent on mainly the various company and country circumstances and as such offer varying accounts of success
Creating A Dividend Yielding Esop Model For Mine Workers
(Sam Tambani Research Institute, 2019) Sithole, Sinenhlanhla
Employee Share Ownership Plans (ESOPs) are an empowerment tool for workers and have been a common feature in South Africa’s mining industry policy since mining charter one of 2004. They serve the purpose of transformation by allowing employees to own shares in the mining companies which they work for. Despite notable efforts by mining companies in setting up ESOPs trusts for their employees, many ESOPs deals concluded in the mining industry have not yielded tangible dividends for employees. Many ESOPs that have been implemented have failed to meet stakeholders’ expectations in terms of dividend yields. ESOPS schemes have come across various criticisms, as they are considered “inconsistent, complicated and mostly opaque to employees whilst delivering modest returns to them,” (Diale 2016:7).
Union and business efforts to increase productivity in the mining sector: A critical Reflection
(Sam Tambani Research Institute, 2016-02) Kaggwa, Martin
The aim of this paper is to examine the practicality of how
mineworkers, organised under a trade union, can participate
in employers’ productivity-increasing initiatives in a mutually
beneficial way in South Africa. A critical analysis of the concept
of productivity and its practical application in the mining
business environment, including the aspect of relationship
dynamics between mineworkers and employers is done. It is
highlighted that defining productivity in the sector is subjective
and characterised by information asymmetry in favour of the
employers. Moreover, low productivity has frequently been used
as a reason against mineworkers’ quest for higher wages; as a
result, the concept is viewed with suspicion by mineworkers.
For a trade union to aggressively encourage its members to
participate in productivity initiatives at the workplace, it needs
to get some assurance that its members will benefit from
the resultant increase in productivity. This will require that
mineworkers and employers have a prior agreement on the
definition of productivity, the parameters to measure it, and the
extent to which a change in productivity will influence workers’
wages and benefits. Given the precedent of mineworkers’
exploitation and the existing trust deficit between parties
in South Africa’s mining sector, the onus lies on the side of
mining businesses to demonstrate and convince unions that
the productivity initiatives are not just another tool to exploit
workers. Otherwise, there is no doubt that increased productivity
can be beneficial for both mining businesses and mineworkers
The State of Transformation in South Africa’s Energy, Mining and Construction Sectors
(Sam Tambani Research Institute, 2016) Sam Tambani Research Institute
The exclusionary policies of apartheid systematically marginalised the majority of South
Africans from partaking in the economic activities of their country. The Mining Charter and
the B-BBEE codes were introduced to facilitate transformation in the mining, construction and
energy sectors. This paper examines the extent to which the objectives of the Mining Charter
and the B-BBEE codes have been achieved in the mining, construction and energy sectors. The
findings show that some progress has been made in terms of compliance, however
transformation has not occurred at the intended rate. It is recommended that unions need to
find space to be part of the mining Charter and B-BBEE compliance auditing processes.
Furthermore, workers must be sensitised on the requirements of the mining Charter and BBBEE
codes and be empowered to report, continually on progress made at the workplace
towards meeting these requirements, within their own structures.