Eradication of production bonuses to increase safety – 2014

Better and faster implementation of the Tripartite Action Plan on Health and Safety, negotiated in 2008 by the Chamber of Mines (CoM), unions and government through the Mine Health and Safety Council, and revised in 2011, needs to be realised for South Africa’s mining sector to become a world-class performer, states CoM head of safety and sustainable development Sietse van der Woude.

The action plan comprises key initiatives such as strengthening the mining industry’s culture of health and safety through the implementation of a culture transformation framework, the training of 40 000 health and safety representatives and the adoption of leading practices and research available in the sector.

Van der Woude notes that only about 15 000 health and safety representatives have been trained across the industry since 2008, owing to an initial lag during which there was no shared understanding of the training requirements. “However, all companies are now training representatives to the required standard and are ramping up to ensure the 40 000 target will be reached by 2014.

“The culture transformation framework focuses on the human element of safety, with the aim of understanding and addressing the causes of unsafe behaviour at all levels of the organisation. One key initiative is looking at replacing production bonuses with a safer approach that puts the workers first,” he states.

When mineworkers achieve a mine’s production target, they are awarded a bonus – a cause for concern for some stakeholders, as production bonuses can send a mixed message that production is more important than safety.

“Mineworkers might also neglect safety requirements to meet production targets and earn more,” Van der Woude explains.

Therefore, the CoM, unions and government agreed in 2011 that production bonuses in the form they currently appear would be eradicated in 2014 and substituted by zero-harm operations bonuses, thereby balancing health and safety with production.

“Workers will no longer have to choose between production bonuses and safety,” he notes, explaining that in a company, that has already made the change to zero-harm operations bonuses, safety is a key qualifier for a production bonus.

Van der Woude highlights that com- panies are encouraged to set realistic production targets to ensure that miners can reach the target while adhering to safety requirements.

“Workers must understand the way in which the bonus system works and what they are aiming for, as a lack of communication could create negativity. Much emphasis is, therefore, placed on ensuring that appropriate consultations are held with regard to this change.

“Safety should always take priority over production,” Van der Woude emphasises, which is far closer to being ensured if the zero-harm operations bonus system is adopted.

He cites seismic rock conditions as a pertinent example. Seismicity becomes dangerous when miners mine too fast. Owing to this risk, some companies had to reduce their production targets, as they could not achieve them safely.

“Reducing production targets is a big decision, which impacts on production rates and profit margins, but zero harm needs to be the main focus. “Putting safety first is more rewarding in the long term, as the social impact of fatalities and associated mine standstills is avoided and mining takes place at a more consistent rhythm.”

Van der Woude highlights that the CoM’s commitment to health and safety has remained steadfast and will continue to be so.

“The main aim of the CoM is that every miner should go home safely and unharmed,” he stresses, noting that 33 mineworkers have already died this year in mine accidents, which, in turn, has affected at least 100 dependents.

“We humbly apologise for the loss those families have suffered,” Van der Woude notes, adding that ensuring that every employee gets home safely requires the adoption of leading practices across mines.

The Mining Industry Occupational Safety and Health Learning Hub, established by the CoM in 2009, helps mining companies learn from the pockets of excellence in the industry.

Through it, leading practices are promoted across the sector. An example of this is placing a net that is fastened with bolts over a mine roof to catch falling rocks and, thereby, saving lives. This leading practice has now been adopted in 68% of work- places in major mines over the last two years. Owing to this and other leading-practice initiatives, fall-of-ground fatalities have been reduced by 50% during the last year.

Van der Woude notes that 2013 is an important year for mine safety, as it marks the tenth anniversary of the CoM’s agreement with government and unions to achieve zero harm in the mining indus- try. It is also the year by which, South Africa’s mining sector was meant to attain world-class performance.

The CoM is reflecting on what progress, successes and challenges the mining industry has had over the past nine years.

“The reflection is important in helping the mining sector move forward and to determine future measures to ensure and improve safety. We are hoping that the reflection will be balanced and that we can look at the successes and challenges in collaboration with other stakeholders,” states Van der Woude.

Fatalities

He further notes that, while the Department of Mineral Resources has not yet confirmed the final fatality figure for 2012, the CoM estimates that there were 110 fatalities, which is a 9% decrease on the 123 of 2011.

Overall, fatalities decreased from 270 in 2003 to 110 in 2012 – a decrease of 59%.

Van der Woude notes, however, that the CoM aims to achieve a 20% decrease in mine fatalities every year to ensure South Africa achieves world-class standards.

Highlights

“In 2003, fatality rates (fatalities for every 1 000 employees) in South Africa’s coal sector were double those of the US,” says Van der Woude, who is cautiously pleased to report that in 2012, fatality rates in South Africa’s coal sector compare favourably with those of the US.

In addition, platinum miner Lonmin, which was affected by violent wildcat strikes at its Marikana operations, in Rustenburg, in the North West, last year, has achieved various safety records since that time.

“Lonmin has achieved remarkable results in the face of significant risks, such as the fractured relationship between management and workers, and unstable ground conditions owing to the workplace not being made safe when the strikes occurred.

“The platinum miner recorded six- million fatality-free shifts in April and 17-million shifts without a fall of ground fatality – this is unprecedented,” Van der Woude enthuses.

“It is incredible what everyone working together at Lonmin has achieved in the face of a tragedy.”