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Anglo boss calls for end to hostile labour relations

Cape Town – A lack of trust and a long history of adversarial labour relations between labour, business and government are impediments to a more efficient mining industry, said Anglo American [JSE:AGL] CEO Mark Cutifani.

Cutifani said in a lecture at the Gordon Institute of Business Science on Thursday evening that the conversation needs to change so that all constituencies can start to work together.

Seven mining companies have announced plans to cut up to 10 000 jobs in the last two months.

He said one of the reasons why the South African mining industry is becoming increasingly uncompetitive is “our long history of adversarial labour relations – and particularly the trust deficit between labour, business and government – which has been accentuated by the Marikana tragedy".

"This," he said, "is severely hindering the creation of a more efficient mining industry, and of a more competitive ‘South Africa Incorporated’.”

This is not the first time the issue of a “trust deficit” has been brought up. ANC secretary general Gwede Mantashe told the Joburg Indaba on mining in 2014 that “working together is a question of trust… I think that is what we suffer from now. It is called a trust deficit,” according to a report in The Citizen.

More recently, Mantashe said mining companies that cut jobs were “lazy”, according to Bloomberg. “Company CEOs and management should look into other solutions and review plans to cut jobs,” he said.

Laggards in the mining industry

Cutifani said some members in the mining industry are slow to come to the table when it comes to assisting government and showing that the industry can be a true development partner. “There are still laggards when it comes to embracing transformation in such areas as local procurement and supplier development, housing provision, migrant labour and safety,” he said.

“We need to turn the vicious circle that we are now experiencing into a virtuous circle, with the industry operating in a facilitating environment that is conducive to its making profits, and where investment attracts further investment,” he said.

“And that requires a shift in mindset on all sides – from business, government and labour – if our mining industry is to continue to be a crucial partner in development as a significant contributor to the fiscus, a major employer and a cornerstone for the ongoing livelihood of host communities.

Time to change the conversation

“We all need to change the nature of the conversation we have in mining so that all constituencies start to work together in tackling the constraints that are hampering the traditional powerhouse of South Africa’s economy from being globally competitive once again,” he said.

“Only through success in this will the South African mining industry restore its competitive advantage, be able to attract essential foreign investment, and regain its rightful position near the top of world mining’s Premier Division.”

Cutifani explained that the regulatory framework has become difficult to navigate and that the industry should show its willingness to work with government in simplifying this.

“Government could play an even bigger role in supporting the industry and to attract investment in mining – not least in providing encouragement to a new generation of business leaders and entrepreneurs,” he said.

“The South African mining industry itself has to be more productive,” said Cutifani. “Only by doing so, will mining companies be able to both generate profits and safeguard employment through the cycles.”

GRAPH: Mining, a driver for growth in SA


Source: Anglo American


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