Working Papers

Permanent URI for this collectionhttps://satrirepository.dedicated.co.za/handle/123456789/86

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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.
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).
Exploring the Transformative Likelihood of Mine Community Development Programmes
(Sam Tambani Research Institute, 2018) Pulane Mafoea-Nkalai
The South African Mining Charter requires that mining houses include community development projects as part of their social labour plans. These community development projects are aimed at uplifting communities in and around the mines. However, very often mine communities do not benefit from mining developments. This article outlines the community development approach and framework as a conceptual and methodological tool for understanding what constitutes community development, especially in the context of mining. It argues that the principles of active participation, empowerment, and life-long learning are central to understanding community practices; these principles should inform any developmental interventions. If mine community development projects are to significantly benefit the local people, community projects should be well defined and distinguished from company-oriented projects (CSR). Local people should participate in the designing and monitoring of the success and impact of community development projects.
Making South Africa’s migration to Fourth Industrial Revolution just for workers: A lesson from the just energy transition framework to a low-carbon economy
(Sam Tambani Research Institute, 2019) 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.
Mining Sector Wage Structuring
(Sam Tambani Research Institute, 2017) Pulane Mafoea-Nkalai
Wages and salaries are the key factors that determine labour cost for employers and they are source of income to the employees. This information is critical to policy guidance and relevant in the day to day business decision making. Wages and salaries are not protected to international competition based on inflation and the fluctuation of the currency. Not only workers contest with fellow colleagues on domestic labour markets and better income, but also compete with foreigners. Even though international competition fills the skills shortage but worsens the gap along other dimensions. Countries with an open labor are mostly affected by the circumstance of international competition (Tong, 2012). South Africa is a country plagued with unemployment and poverty, and is a desperately unequal society. An enormous percentage of the South African population is either not working or if they are, they are in the informal sector where salaries are generally low. If you compare South African miner’s salaries to major developing world countries, such as China and India, then South African miners are not doing too badly in the pay stakes, and they appear to be earning slightly more than some of the Chinese and Indian miners. At around R 6 000 a month (which is roughly $ 730 per month) they are in a better position than many other miners in developing countries. However when you compare the salaries of South African miners to developed countries such as Australia, Canada and the USA, then South African miner’s salaries really are dismal (Kihn, 2012). To put things into perspective, according to the results of a salary survey, a miner in Canada with 6 – 10 years’ experience will earn a base pay (excluding benefits) of around $4150K (R53,610.64) a month. This is nearly six times what a miner in South Africa would be earning. Whereas if you compare the salaries of professional, skilled workers in South Africa, such as an Engineering Manager, they would be earning roughly the same, as what they would be earning in Canada (Kihn, 2012). The mining industry in South Africa is one of the main contributors to the economy. The Department of Minerals and Energy estimates that until 2007 gold contributed to 5.4% of the country’s GDP, and South Africa produces nearly 90% of the platinum metals on earth, 80% of the manganese, 73% of the chrome, 45% of the vanadium and 41% of the gold (Department of Minerals and Energy, 2009). The industry attracts migrants from various parts of the country and from other countries in the region. It is estimated that about 60% of workers in the mining sector in South Africa are from neighboring countries, mainly from Lesotho, Mozambique and Swaziland (Mining Sector Report, 2010).
The Role of Trade Unions in the Mining Industry
(Sam Tambani Research Institute, 2018) Sam Tambani Research Institute
Trade unions are an organised association of workers in a certain profession and their sole purpose is the protection of member’s and workers interests. These interests vary and some of the trade unions main roles include negotiating for wages, employees’ benefits, working conditions including occupational health and safety due to nature of mining operations. Also the unions strive for better accommodation arrangements, as well as holding employers accountable in complying with the labour laws of the country. Unions are instrumental agents of social change through advocating for transformation guided by respective workplace legislations. Due to changing dynamics, the unions in the mining sector also fight for the development of mining communities. This paper gives a brief overview of the role of trade unions in the mining industry.
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

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