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Miners In Negotiated Empowerment A Comprehensive, Self-Sustaining Solution to the
South African Mining Sector Crisis November 10, 2012 November 10, 2012
Team 12 Joyce Cheng Young-hee Kim Kim Miller-Tolbert Jay Patel Annie Tsay Jacob Weatherly
Miners In Negotiated Empowerment
A Comprehensive Bottom-Up Approach to Addressing the Challenges Facing the South African Mining Sector
November 10, 2012
The Problem
STRIKE
Lack of Agency
Low Wages
Unsafe Working
Conditions
Poor Health
Outcome: Striking to Death
Source: “Scene of South African Mine Shooting May Have Been Altered, Inquiry Is Told” New York Times November 6, 2012
What did the strikes accomplish?
• Pay raise for a minority
• But at what cost? – Deaths – Lost trust – Diplomatic and economic repercussions for
South Africa – Decreased productivity and economic loss
A Gross Power Imbalance
South African miners
What solutions have been previously presented?
• Top-down approaches
• Many well-intentioned existing policies lack effective implementation.
• 1973: Occupational Diseases in Mines and Works Act (ODMWA )
Landmark Ruling: Mankayi v. AngloGold Ashanti (2004)
1973: ODMWA 2004: Mankayi Settlement
Future: Potential Insolvency of SA Mining Sector?
Policy Recommendations: Empower, Negotiate, and Collaborate
• Sustainably empower South African miners.
• Facilitate their engagement in equitable negotiation and collaboration.
• Enable miners to bring about positive changes in their own lives.
Action Plan:
1. Provide a Strike Safety Net
• Establishment of a fund that covers workers’ basic needs while on strike
• Provides food and healthcare security • Allows execution of protective measures
to uphold collective bargaining agreements
• Unused funds miner-driven proposals for standard of living improvement
Empower Negotiate Collaborate
2. Promote Union Educational Initiatives
Health
Legal
Labor
•Infectious disease & occupational safety
education
•Basic skills training, labor pool shifting
•Representation & protection by union
• ~$30/mo/member to fund miner training programs
• Foster competition among unions to attract larger membership
• Larger membership Increased collective bargaining power
Per-Miner Incentive Program
Empower Negotiate Collaborate
3. Support for Home Loan Initiative
• Establish an insurance program to back home loans
• Ensures miners a basic housing and living standard (TB, HIV rates)
• Community-building, familial settlement • Job creation: promotes development of
general services within the local economy
Empower Negotiate Collaborate
4. Facilitate Quality Legal Representation
• Put legal representation in the hands of workers – Protects human rights – Spillover benefit: prevents vigilantism – Non-violent means of effecting change
• Promotes equitable negotiation of employment contracts with mining houses
• Provide workers a strong voice in government
Empower Negotiate Collaborate
Subsidies to NUM and AMCU-$105 million Strike Fund-$870 million
Intermediate Health Insurance-$516 million Home Loan Insurance-$20 million Quality Legal Representation-$1.5 million Public Relations-$300,000
Strike Security Force-$300,000 Environmental Fund-$515 million
24%
Budget Allocation ($2B/year)
5%
42%
25%
Budget
Education cost per miner per year
Number of miners enrolled in education program
TOTAL COST
$350 300,000 $105 million
Income to be supplemented during strike
Number of miners
Unemployment rate
TOTAL COST OF STRIKE FUND
$10,000 500,000 25% $870 million
Per capita annual health expenditures
Number of miners
Number of dependents per miner
Unemployment rate
TOTAL HEALTHCARE COST
$650 500,000 6 25% $516 million
Budget, Continued
American foreclosure rate
Average house price
Number of miners
% of South Africans owning homes
TOTAL HOUSING COST
0.0013 $56,000 500,000 56% $20,384,000
Legal representation Public relations Strike security force
Environmental fund
$1.5 million $300,000 $300,000 $515,016,000
Challenges and Limitations
• Embezzlement of per-miner training funds – Lack of benefits defection of members
• Splintering of unions – Administrative consolidation more benefits
per miner • Inter-union violence
– Punitive withholding of union funds
Miner Enfranchisement More Equitable Negotiations
Empower Negotiate Collaborate
Impact of MINE: Stability, Sustainability, and Growth
• Growth in mining sector (currently ~9% GDP)
• Improved standard of living • International confidence,
attract foreign investment
Empower Negotiate Collaborate
References
• Stuckler D, Basu S, McKee M, Lurie M. Mining and Risk of Tuberculosis in Sub-Saharan Africa. Am J Pub Health. March 2011. Vol 11 No 3: 524-30.
• Stuckler D et al. Governance of Mining, HIV and Tuberculosis in Southern Africa. Global Health Governance IV.1 2010.
• Mogotsi L. Challenges Facing the South African Gold Mining Industry. Alchemist 38: 15-17.
• Serrano M et al. Trade unions and the global crisis: Labour’s visions, strategies and responses. Geneva: International Labor Office, 2011.
• CIA World Factbook, https://www.cia.gov/library/publications/the-world-factbook/
• Lakmidas S, Lonmin miners strike again in South Africa. 18 Oct 2012. Reuters.
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