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Definition of the Social Plan Approach

The Social Plan Approach aims to :

1.Avoid job losses and employment decline wherever possible,

2.Actively manage retrenchments and ameliorate their effects on individuals and local economies.

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Background to the Social Plan

The National Union of Mineworkers (NUM) tabled a proposal for reducing the effects of retrenchments to the Trade and Industry Chamber of Nedlac on 12 October 1995.

NUM also called for a Gold Mining Summit which was held 26 - 27 February 1998.- Gold Crisis Committee established.

* Social Plan Task Team implemented as one of five task teams.

Draft Nedlac agreement tabled to Parliament - 25 March 1998.

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The National Union of Mineworkers (NUM) tabled a proposal for reducing the effects of retrenchments to the Trade and Industry Chamber of Nedlac on 12 October 1995.

The Declaration of the Presidential Jobs Summit (October, 1998) outlines a Social Plan which aims to:

- avoid job losses and employment decline

wherever possible, and - seeks to actively manage

retrenchment and - to reduce its effects on

individuals and local economies when large job losses are unavoidable.

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A social plan approach is applicable where there is a threat of large-scale retrenchments (500 people or 10% of the labour force of the company).

This approach aims to reduce the social and economic impact for individuals, regions and the economy.

It promotes negotiation about threats to employment security and measures which can be taken to avoid employment decline.

Principles of a Social Plan Approach

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A social plan approach is essential in cases where there is a reasonable possibility that alternatives could be developed to save jobs.

Phases of the Social Plan Approach

Phase 1 :

Save jobs.

Phase 2 :

Manage retrenchments.

Phase 3 :

Regeneration of local economies.

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Progress on the Social Plan Approach

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1. Future Forum - ongoing discussions between employees and their reps and company management to pro-actively deal with related issues and challenges. This is encouraged wherever possible.

2. A Social Plan and Productivity Advisory Council (SPPAC) has been established : aims to provide technical assistance (through the SPTSF) and possible economically viable solutions to threatened companies.- Rules for and criteria of

operations for SPTSF was developed.

Phase 1 : Save Jobs

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1. Retrenchment Response Team :

• Established and operational in all Provinces.

• Guidelines for their actions developed.

2. A Job Advice Centres where the Department of Labour will assist with retrenchment counselling.

• Six retrenchment exercises have been dealt with.• Libanon Mine

• Buffelsfontein Mine

• Randfontein East Mine

• Eastern Transvaal Consolidated Mine, Barberton

• NUM/AVGOLD/DOL project

3. Standard services offered by the Department of Labour

Phase 2 : Manage Retrenchments

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- Info pack for retrenchees developed and printed : * How to cope personally. * Support : Family and friends. * Supportive community. * Know your health rights. * Further your training. * Know your legal rights. * Manage your money matters : Make your severance package work for you. * Job hunting hints.- CASE research in mining, textile, insurance and general industries sectors showed positive results on relevancy of contents and user- friendliness.- For the purpose of awareness, sensitization and advocacy, posters have been printed.

- Counselling video. * Development of counselling video in process.

3. Standard services offered by the

Department of Labour

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4. Additional services offered to retrenchees :

Group counselling on the following aspects :

* Managing change.

* Getting motivated.

* Getting that job.

* Where to now?

* Managing your money.

Employment counselling :

* Skills assessment and Recognition of Prior Learning (RPL).

* Assessment of potential & careers planning.

* Referral to an accredited training provider.

* Training and re-training of retrenchees in line with the Skills Development Act, 1998.

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Training ticket : In all 6 retrenchment exercises so far the employer and the Department of Labour came to an

agreement on a training ticket for retrenchees where each contributed 50% to the training or re-training of the retrenchees.

Placement services.

Registration as job-seeker and for unemployment insurance.

Labour market opportunities, local economic development initiatives and other employment

opportunities.

In all retrenchment exercises the Department of Labour provided the above services.

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5. Services offered to employers and union representatives : - Info package for employers developed, inclusive of info guidelines. - Training of HR Practitioners : the sensitization for and the handling of the retrenchment process.

6. Training of counsellors by the SA Breweries : 35 counsellors from the Department of Labour trained in retrenchment counselling.

- Train-the-trainer course for Employment Services practitioners.

* The counselling is very effective - A pilot ran in Mooitex, Mooi River, showed important improvement in all indicators of psychological health on a SRQ of the WHO on a pre- and post intervention study.

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Ministerial Notification Process

A written ministerial notification process has been put into place to ensure : - Preventative measures are

given a chance :• SPSTF• Verification teams• Mining industry

- When all else has failed :• 2nd notification is timeous• preparation for the intervention

(counselling, training)

information on the services- Co-ordination of services between

all relevant departments and stakeholders, e.g. Public Works, DTI.

- All the relevant institutions (Departments of Labour, other govt dept’s the NPI) are informed.

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Notifications received :

- Mines : Buffelsfontein, Eastern Transvaal Consolidated Division of Avgold, Loraine, Evander, West Driefontein, Grootvlei, Randfontein East, Oryx, East Rand

Proprietory Mines, Durban Roodepoort Deep, Libanon.

- Other organisations : Transnet, Department of Water Affairs and Forestry, Department of Defence,

Mooitex, Van Dijk Carpets, Standard Bank.

These notifications were referred to the Department of Constitutional Affairs and the NPI for notice.

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Responsibility of the Department of Constitutional Affairs. The Regenerating Local Economies Project Steering Committee established. Administers the identification of affected municipalities and approval

of distribution of R50 000 grants for Local Economic Regeneration studies. - representatives from

government, donors, private investors and financial institutions. LED and SP funds launched. Information pamphlets published. Intervention of local authorities.

Mooi River, Botshabelo, Eastern Cape

Phase 3 : Regeneration of Local Economies

The Social Plan Fund

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Department of Trade and Industry :- Retrenched mineworkers are referred to Khula and Ntsika services.

Mineworkers Development Agency : - The following Development Centres have been established : Kokstad : Anglogold/NUM fund Klerksdorp : Goldfields/MDA fund Bophirima : Anglogold/NW Govt.

Support to Small, Micro and Medium size Enterprises

(SMME’s)

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Carletonville : NW Govt. Jane Furse : Carletonville TLC, Anglogold, Gold Fields. Mozambique : Billiton Dev Fund Umtata : Anglogold/NUM Fund UNOPS SMME Prog.

- Establishment of Central Buying Agency and Local Outlets (EC and Lesotho) - discussions with Goldfields.

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Implications of retrenchments in

the region - mining and farming.

The possible extension of the principles of the Social Plan Approach to the SADC countries :

i.e. reduction of tariffs, employment support in the region.

The role of TEBA/MDA for retrenched mineworkers support.

Tripartite workshop with Mozambique, Swaziland,

Lesotho, Botswana and Malawi to

be held from 31 October – 2 November 1999.

Review of bilateral agreement (overall labour migration policy)

Spatial Development Initiatives (e.g. Maputo corridor)

Proposals on SA and SADC co-operation