IndustriALL Global Union

07/04/2024 | News release | Distributed by Public on 07/04/2024 01:29

Unions want better deals from Anglo American restructuring

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4 July, 2024Over 20 participants representing IndustriALL Global Union affiliates from Australia, Botswana, Brazil, Namibia, South Africa, and Zimbabwe met under the auspices of the IndustriALL Anglo American Global network from 26-27 June in Johannesburg, South Africa. The meeting emphasized on the need to engage in meaningful social dialogue especially during the current restructuring at Anglo American and the uncertainty surrounding the hostile takeover bid by the BHP group, which the global network is opposed to for reasons that have to do with the culture and values of the two organizations that are poles apart.

The Anglo American management that participated at the meeting confirmed that restructuring was taking place to make the company's business sustainable and that the hostile bid, which Anglo opposes, accelerated the restructuring through "configuring the portfolio, operational excellency, and growth."

The restructuring, which was announced in May, will see Anglo American spinning off several businesses including De Beers, Anglo American Platinum, and its coking coal business. The company would then retain copper mines in South America and premium iron ore assets. The company says copper is a key mineral for the energy transition. However, it will divest from steelmaking coal, nickel, and diamonds as well as demerge from platinum. The management team also presented on safety performance, leadership framework, voluntary principles on safety and human rights, and gender equality.

On the trade union side, the priority issues discussed included freedom of association especially the right to form and join a trade union, collective bargaining in which negotiations were conducted in good faith, ending precarious working conditions, avoiding complacence on health and safety standards to reduce accidents, and equal pay for the same work. Further, unions wanted better oversight in the appointment of managers after a manager with a hostile relationship with unions was brought back to a mining site in South Africa despite earlier objections.

On gender equality, the multinational corporation was urged to continue building workplace policies to end gender-based violence and harassment, provide maternity protection and childcare facilities, and closing the gender pay gap which in countries like Brazil and South Africa also included racial discrimination.

On job losses, South African affiliates, the National Union of Mineworkers, and UASA, said they felt sidelined when retrenchment notices were issued at Anglo American Platinum where over 4000 jobs will be lost. They stressed that workers welfare should be considered before issuing the notices.

The unions said Anglo American must remain committed to the sustainable mining standards that are promoted by the Initiative for Responsible Mining Assurance (IRMA). So far, three Anglo American mining operations have received IRMA certifications for responsible mining. These are Mototolo and Amandelbult in South Africa, and Unki in Zimbabwe.

Health and safety concerns were raised following the death of three mineworkers in Botswana and South Africa due to mine accidents. In Australia, occupational health and safety issues were raised across Anglo American's open cast and underground operations including on respiratory health, gas management, and vehicle interaction.

"A human rights due diligence approach means that Anglo American must cater for the workers' rights and interests even during this period of transition, and workers must access remedies through complaints mechanisms to protect their rights,"

said Glen Mpufane, IndustriALL director for mining and the lead in health and safety.

IndustriALL and Anglo American signed a memorandum of understanding to "mutually agree to a mechanism of global dialogue under which issues of mutual interest, including and particularly industrial relations, climate change, industry 4.0 and the future of work will jointly be handled and addressed."

Stressing on the importance of the agreement, Kemal Ozkan, IndustriALL assistant general secretary said:

"The agreement is a platform for dialogue at operations in different countries. Engaging in genuine social dialogue shows IndustriALL's commitment to have open channels of communication with Anglo American."

As part of the 2021 agreement, IndustriALL affiliates meet the Anglo American management annually but have agreed to meet more frequently given the current challenges of restructuring and the hostile takeover bid which is not off the table. The other consideration is the possibility of other suitors in this period of the rapid demand for and access to critical transition minerals with the spectre of mergers and acquisitions looming large.

IndustriALL and Anglo American set framework for global dialogue