Presentation by the Chamber of
Mines (Chamber) on the Ex-Mineworkers’
1.
Background on the COM
·
The Chamber is a lobbying and
advocacy and wage negotiating body.
·
The Chamber is not running any
retirement funds.
·
TEBA is also an independent body –
it has its own board of directors.
·
The Chamber has indicated on
numerous occasions to Mr Nomazele that it does not handle any matters relating
to pension and compensation payouts and has accordingly directed him to the
relevant bodies that deal with these issues.
2.
Background on the interaction between the Chamber and
the Ex-Mineworkers
§
According to the Chamber’s
records, Mr Elliot Nomazele started writing petitions to the Chamber / TEBA on
17 November 1998. Initially, he wrote
under the banner of the United Peoples Union of South Africa (UPUSA), at which
time he strenuously denied the legitimacy of the National Unions of Mineworkers
(NUM) as representative of the interests in the mining industry. He later changed his banner and wrote under:
§
an altered NUM letterhead, without
any official position in that
§
Mineworkers Development Project,
an unknown organisation; and then
§
The Ex-Mineworkers
·
The Chamber has responded to a
plethora of letters and petitions received from Mr Nomazele over the past 9
years. Furthermore, several meetings
were held with Mr Nomazele, including one where he came with a delegation led
by General Bantu Holomisa on 9 September 2003, where the Chamber presented him
(Mr Nomazele) with a comprehensive report on institutions that deal with
compensation issues.
·
The Chamber does not recognise the
“Ex Mineworkers Union” as authority to speak on behalf of employees or
ex-employees.
·
The Chamber recognises the NUM as
the employees and ex-employees’ representative.
·
The Chamber is not willing to
again meet with this organisation. It feels that the organisation appears to
create unrealistic expectations among innocent, poverty stricken people about
all types of payments that are not due to them.
3. The
Ex-Mineworkers’ Union status as a
·
The Chamber is not aware of the
legal status of the “
·
Requirements to be a union
§
Defined as an association of
employees whose principal purpose is to regulate relations between employees
and employers, including employers’ organisations. Debatable whether the
Ex-Mineworkers Union is a union for purposes of the Labour Relations Act (LRA).
§
If it is a union, it needs to be registered with the DOL before it would
be entitled to the organisational rights provided to unions by the LRA.
§
To be registered, a union needs
to:
have a constitution that meets the requirements of the LRA (association
not for gain, qualifications for membership, membership fees and the method for
determining such fees, establish the manner in which decisions are made;
provide for banking and investing its money, establish the purpose for which
its money is used);
has an address in SA; and
is independent.
·
It might be necessary to determine
how the Ex-Mineworkers Union is funded if it is not a union – does it have
authority to be funded (e.g. as a
Section 21 Company not for profit?)
4. Issues
raised by the EX-MINEWORKERS
4.1 Pension and death benefits
a)
Death benefits: Mineoworkers
Provident Fund (MPF).
Note:
·
This is only for people who were
in service after 1989.
·
For these persons, it is only paid
out upon death, NOT if they leave the
service of the mine.
·
Only coverage for death on duty
and one year after leaving service of the mine.
·
Death benefit: 36 months’ basic
salary.
·
Funeral benefit: R 10 000 iro
deceased employee (R 5 000 iro deceased spouse and between R 5 000 and R 2 000
for children of the mineworker).
·
Enquiries to the MPF – see
Annexure A for the address. (Address already supplied to the Ex-Mineworkers
Union)
b)
Non-payment of provident fund:
MPF.
Note: This
is only for people who were in service after 1989
Enquiries
to MPF – see Annexure A for the address (Address already supplied to the
Ex-Mineworkers Union.)
c)
Long service award scheme (LSAS)
This is
administered by TEBA.
The
particulars of this scheme is attached hereto as Annexure B.
See
Annexure A for TEBA’s address. (Address was supplied to the Ex-Mineworkers
Union.)
TEBA
headoffice (Gerhard Human at 011-353-6016) met with Mr Nomazele earlier this
year. He was told to work through TEBA’s branches in the
d)
1970s Provident Fund
The
Ex-Mineworkers Union provided the 1970s Fund with a list of names and employee
numbers.
The Fund
went through all of its records to determine whether any payments have not been
made.
Nine such
cases were found, and the payments have in the meantime been made.
The
contact details of the 1970s Fund is attached under Annexure A. (The address
was supplied to the Ex-Mineworkers Union.)
4.2 Occupational injuries and diseases
a) Occupational injuries payment: by the Rand
Mutual Assurance (RMA), or in some cases in terms of the Compensation for
Occupational Injuries and Diseases Act(COIDA).
b) Occupational diseases (e.g. mine related TB,
silicosis): MBOD and CCOD.
·
Note: Must be X-rayed by the
nearest hospital, and application is sent to MBOD, to determine eligibility
(e.g. have worked for mines, etc)
c) R54 Million issue
In regard to allegations that the Chamber had paid a
sum of R54 million that belonged to the Ex-Mineworker Union’ members to the
former Transkei Government, we wish to point out the following:
§
The Chamber or the mining industry
is not in any way involved in this issue. Let me explain:
§
The previous South African
Government paid to the former homelands of Transkei and Ciskei, an amount of
money for the payment of compensation for occupational diseases to an estimated
11 500 ex-mineworkers.
§
When these areas were incorporated
into
§
The records of the former
mineworkers to whom this applied, were for some time lost in the offices of
either the MBOD or the CCOD (Both falling under the Department of Health), so
contact with the beneficiaries were lost. The Department hopes to get these
beneficiaries through the benefit medical examinations (BME’s) process.
§
In 2002, the then Premier of the
Eastern Cape, Rev. Makhenkesi Stofile established a Task Team, comprising of
representatives from the Ex-Mineworkers Union, NUM, Depts of Labour and Health
to investigate complaints received from the Ex-Mineworkers regarding benefits
emanating from occupational diseases and injuries while working at the mines.
§
Amongst others, this Task Team
agreed that:
-
The Department of Health will
verify the lists received in order to find the names and particulars of the
beneficiaries of the R54m.
-
The Provincial Department of
Health in the
-
The National Department of Health
will assist the Provincial Department of Health on capacity building in the
areas of training of health workers to do BME’s in the health institutions in
the
-
The NUM and other formed
organisations of the examiners will continue to encourage ex-miners to go for
BME’s.
-
The Provincial Department of
Health will draw an action plan and identify areas of assistance needed for
National Department to assist.
-
Lists of beneficiaries and prospective
beneficiaries will be chanelled through the Provincial Department of Health to
the National Department of Health.
§
It is also important for the Ad
Hoc Committee to make follow-ups with both the Eastern Cape Provincial
Department of Health and the National Health Department to ascertain progress
made regarding the benefits medical examinations and compilation of lists of bona fide beneficiaries and prospective
beneficiaries. The Chamber is not in a
position to assist in resolving medical claims against the Department of Health
as it has no special influence over this Department, or for that matter, any
government department.
5.
Ex-mineworker project of the Chamber of Mines,
Department of Health and the NUM
a)
An initiative to ensure required
tests for occupational diseases (benefit medical examinations – BME’s) are
done, and that ex-employees who are found to have occupational diseases, are
paid their compensation
b)
A total amount of R42m over 5
years allocated for this purpose
c)
Will be launched in various areas
(starting in Nongoma), and rolled out over the 5 year period.
d)
Funded by the industry, but
purpose is not for industry to create the infrastructure – Purpose is to built
capacity at the Provincial Hospitals to undertake this function on a regular
basis
e)
Another element is local
development initiatives, in cooperation with the relevant authorities.
6. IN
CONCLUSION
The Chamber has given the Ex-Mineworkers Union full
details of the appropriate government and private bodies to deal with their
various queries. It is therefore our
belief that the Chamber of Mines has done what it can to assist the
Ex-Mineworkers Union in resolving the list of issues that has been submitted
(repeatedly) to the Chamber and would like to urge them to direct their queries
to the relevant bodies, especially the Department of Health in the Eastern Cape
and at the Head Office in Pretoria.
ANNEXURE
A
CONTACT DETAILS FOR PROVIDENT FUND AND WORKERS COMPENSATION
1. Mineworkers’ Provident Fund (MPF) (For persons who were employed in
the gold and coal mining industry after 1989)
The Principal Officer
MPF
P O 1583
2000
Tel 011 685-4420 (Client Call Centre)
2. Death Benefit Scheme
The
contact details for Death Benefit Scheme are the same as the Mineworkers
Provident Fund (see 1. above).
3. The 1970’s Provident Fund
(For persons employed in the mining industry before 1989)
The Principal Officer
Mines 1970
Provident Fund
2107
Tel
011 498-7100
4.
Long-service award scheme (lsas)
This is
administered by TEBA and the relevant information is attached as Annexure B.
TEBA’s
address is the following:
Manager
Mineworker Benefits Department
TEBA
2107
Tel 011 353-6000
5. Skills development issues
Mining Qualification Authority
CEO: Mr Livhuwani Nengovhela
Address: Private Bag x 118,
2107
Tel: (011) 630-3503 and PA (Nicole Jonathan) is (011) 630-3506
Fax: (011) 832-1044
Email: [email protected]
6. Occupational Diseases in Mines and Works Act
(ODMWA)
Compensation for occupational lung disease for
workers who perform risk work in mines and works is provided in terms of the
ODMWA, Act 78 of 1973. It is a state run compensation system, and diseases such
as asbestosis, silicosis, coal worker’s pneumoconiosis, and cardio-respiratory
tuberculosis related to risk work are covered. The two institutions established
to fulfil the provisions of the Act are the Medical Bureau of Occupational
Diseases (MBOD) and the Compensation Commissioner for Occupational Diseases
(CCOD) both based in Braamfontein.
6.1 Medical
Bureau of Occupational Diseases (MBOD) (to determine eligibility for
compensation)
MBOD
Director: Dr Lindiwe Ndelu
2000
Office tel: (011)
403 1350
6.2 Compensation
Commissioner for Occupational Diseases (CCOD) (payment of compensation
after MBOD has determined eligibility)
CCOD
Compensation Commissioner: Mr Benedict Mashego
P O Box
4566
Braamfontein
2001
E-mail address:
[email protected].
Tel No is (011) 713-6900
Fax no is (011) 403-8976.
7. Occupational injuries
Rand Mutual Assurance (RMA) provides cover for
occupational injuries and noise induced hearing loss for its members (i.e. most
members of the Chamber of Mines). However, those mines that are not members of
RMA pay their levies directly to the COIDA compensation office in
7.1 COIDA Compensation Office (
Compensation Commissioner: Miss Bongi Mogojo
P.O.
0001
Office tel: (012) 319 9458
Office fax:
(012) 325 3932
7.2 Rand Mutual Assurance (RMA)
Medical Director: Dr Arthur Begley
Office tel: (011) 497 6652
ANNEXURE
B
SUMMARY OF RULES OF LONG SERVICE AWARD SCHEME (LSAS)
Object of Scheme
In terms of the Chamber of Mines
Long Service Award Scheme awards may be payable to category 3 to 8 employees in
respect of service that is not pensionable in terms of the rules of the
Mineworkers Provident Fund, the Mines 1970 Provident Fund, the Mines 1970
Pension Fund or any other pension or provident fund operated in the mining
industry.
Notwithstanding
anything to the contrary that may be expressed or implied in the rules, the
scheme shall not confer on any employee, former employee or other person any
right to the payment of an award.
1. Eligibility
An employee or dependent may become
eligible for an award in terms of any one of the following award
qualifications:
1.1 attainment of age 55 whilst in service – with
at least 120 months completed service.
1.2 attainment of age 55 within 12 months after
leaving service – with at least 120 completed months service.
1.3 attainment of age 55 – where an employee was
out of service for more than 12 months with at least 180 completed months
service and where the employee was in service at any time after 1 January 1981,
but who is no longer in the service of an employer.
1.4 permanent incapacitation whilst in service –
with at least 120 completed months service.
1.5 permanent incapacitation within 12 months
after leaving service – with at least 120 completed months service.
1.6. death whilst in service – with at least 120
completed months service.
1.7 death within 12 months after leaving service –
with at least 120 completed months service.
1.8 death after 15 years of service with at least
180 completed months service, etc. (see 1.3).
1.9 retrenchment – where the employee obtained the
age of 50 years whilst in service – with at least 120 completed months service.
1.10 supplementary award payment – where an
employee returns to service, after the completion of the service in respect of
which an award was paid provided at least 120 additional months service was
completed.
2. Calculation of
Long Service Awards
2.1 Determination of Aggregate Service:
Each calendar month
during which an employee is in the service of an employer for a continuous
period of at least 16 days shall be recognised as a month of service.
2.2 Determination of Eligible service:
The amount
awarded is based on that portion of aggregate service which is eligible
service. Eligible service is calculated
as each months service, excluding:
§
period of service which is
pensionable in terms of the schemes referred to in the first paragraph hereof,
and
§
service in respect of which an
award has already been paid.
2.3 Rates
of Award:
Employees who were in service on or
after 1 January 1981 will have their Long Service Awards calculated according
to the rates of their period of eligible service. These rates vary from:
§
R7.50 to R15.00 for work on
surface (category 3 to 8).
§
R10.50 to R21.00 for work
underground (category 3 to 8).
§
R15.00 to R21.00 for staff
employees (category 3 to 8).
2.4 Calculation
of Awards:
The amount of the award payable to
an employee or dependants of an employee in respect of each period of eligible
service shall be calculated as follows:
§
Number of months of eligible
service multiplied by the rate applicable to the highest job category the
employee obtained during that particular period of eligible service.
The total award payable shall be
equal to the sum of the amounts payable in respect of each period of eligible
service (except pensionable service).
3. Responsibility
for Processing and Payment of Awards
3.1 Employer responsibility:
If an employee in the service of an
employer has or will become eligible for an award on the date of his discharge
such employer shall be responsible for the processing of the award and for the
payment of the award on or before that date.
3.2 Teba
Ltd responsibility:
If the employee is out of service
and becomes eligible for an award, such employee may apply to the responsible
(last) employer for an award, or, if he was recruited by Teba Ltd, apply to
Teba Ltd. Teba Ltd may in its discretion
refer such application to the last employer for service verification purposes.
3.3 Death
of an employee:
If the employee dies whilst in the
service of the employer, the employer shall be responsible for establishing
whether his dependants, if any, would be eligible for an ward and whether or
not he is in fact survived by dependant.
Teba Limited may be requested to furnish dependant information and
render assistance for the purpose of the processing of the award.