bold spirit - ArcelorMittal South Africa

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58 ArcelorMittal South Africa Annual Report 2010 Human Resources management During the year we lifted the hiring freeze implemented in 2009, resumed payment of increases to salaried employees and successfully negotiated a new one-year Collective Labour Agreement with the trade unions. The talent, skills and commitment of our people are central to our ongoing success and their importance to the company cannot be overstated. While 2010 saw an increase in production and a slight easing of pressure, the past two years have nevertheless been challenging for our employees. We have dealt with the concerns of our employees as best we can and maintained open communications throughout in order to respond appropriately to issues as they arise. This, however, remains a work-in-progress. Highlights and challenges During the year we lifted the hiring freeze implemented in 2009, resumed payment of increases to salaried employees and successfully negotiated a new one-year Collective Labour Agreement with the trade unions. Diversity training was resumed to create an awareness of the strength of cultural diversity in the workplace in order to promote harmonious relations and establish a culture of mutual respect. Together with one of our sister plants within the ArcelorMittal Group we completed the pilot of the global workforce planning tool, which will be rolled out to all international operations. Our biggest human resources challenge during the year remained an acute skills shortage and difficultly in sourcing the skills our operations require. In recognition of the importance of employee engagement, we prioritise activities that enhance engagement and improve employee morale as part of day-to-day management. Exposing our key talent to the senior leadership team is a key part of this programme as further detailed on page 61of this report. We continue to make slow but steady progress in our employment equity efforts. Table 1: Workforce profile as at 31 December 2010 Female Female Occupational level Black Coloured Indian White Black Coloured Indian White Total Top management 1 1 2 6 10 Senior management 10 1 7 13 1 4 106 142 Professionally qualified and experienced specialists and mid-management 39 8 15 133 120 26 48 515 904 Skilled technical academically qualified workers, junior management, supervisors, foremen and superintendents 137 42 9 291 1 774 211 228 2 613 5 305 Semi-skilled and discretionary decision-making 53 20 4 107 1 920 92 46 277 2 519 Unskilled and defined decisionmaking 7 341 5 353 Grand total 247 71 28 538 4 169 330 328 3 522 9 233
59 ArcelorMittal South Africa Annual Report 2010 Table 2: Workforce by employment type, contract and region Area Blue collar White collar Total fulltime Parttime Total Coke and Chemicals 173 68 241 3 244 Corporate Office 145 942 1 087 116 1 203 Newcastle Works 1 452 269 1 721 59 1 780 Pretoria Works 27 27 54 54 Saldanha Works 371 163 534 4 538 Tubular Products 148 27 175 175 Vanderbijlpark Works 3 546 846 4 392 222 4 614 Vereeniging Works 520 99 619 6 625 Total 6 382 2 441 8 823 410 9 233 Legislative framework Externally, our human resources practices are governed by the relevant human rights and labour legislation, including the Labour Relations Act, Basic Conditions of Employment Act (BCEA), Occupational Health and Safety Act and the Bill of Rights in the South African Constitution. Copies of the BCEA are displayed in all work areas. In our induction programme, employees are familiarised with the company’s grievance procedure and the disciplinary code. All such information can also be accessed through the intranet. We are guided by legislation on the minimum notice periods given to employees regarding significant operational changes in the company. We subscribe to the principles of fair labour practice and nondiscrimination. There was no industrial action during the year, nor were there any forced retrenchments. Employee engagement and representation The General Manager, Human Resources reports to the CEO and is responsible for all human resources issues. During the year we refined, standardised and centralised policies relating to skills development and training, employment equity, remuneration and human rights in an effort to make our human resources processes more understandable and transparent. Around 85% of employees belong to one of the two trade unions with collective bargaining rights – the National Union of Metal Workers of South Africa (NUMSA) and Solidarity. During the year we negotiated and signed a recognition agreement wherein the threshold for recognition was redefined. United Association of South Africa (UASA) failed to meet the minimum percentage of employee representation required in accordance with the recognition agreement and consequently is no longer among the unions recognised as collective bargaining agents for our employees. Union representatives
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Brand values Our goal is to provide
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bold spirit - ArcelorMittal South Africa

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