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Unions demand strong engagement in AngloAmerican restructuring

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4 July, 2024Union leaders from the affiliates of IndustriALL Global Union in Australia, Botswana, Brazil, Namibia, South Africa, and Zimbabwe representing workers at AngloAmerican operations worldwide met the company management on 26-27 June 2024 in Johannesburg, South Africa as part of the annual global dialogue.

The meeting emphasized the need to engage in strong social dialogue during the current restructuring throughout AngloAmerican operations, and the uncertainty surrounding a potential takeover bid by BHP or another group. The global network expressed its concerns and opposition as the culture and values of the two organizations are far apart.

In the union-only discussions, union leaders went through updates from their respective countries to build a common agenda for the discussion with AngloAmerican management. Priority issues included freedom of association, the right of collective in good faith, ending precarious working conditions, avoiding complacency on health and safety standards, and ensuring equal pay for the same work.

On the second day there was a global dialogue meeting between unions and the Anglo American management which 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.

Jacques Hugo, UASA chief executive officer, sought clarity from AngoAmerican management whether they “anticipated the hostile takeover during their restructuring planning.”

Phillip Vilakazi, the National Union of Mineworkers deputy president, emphasized on the need for long-term planning and said:

“We want to know if AngloAmerican will be there in the future. This is important for mineworkers’ job security.”

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 NUM, and UASA, said they felt sidelined when retrenchment notices were issued at AngloAmerican Platinum where over 4000 jobs will be lost. They stressed that workers welfare should be considered before issuing the notices.

The unions said AngloAmerican 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 AngloAmerican 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 had 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 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.