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Assmang: corporate enrichment at human expense?

Assmang, a company incorporated in the Republic of South Africa, mines manganese and iron ore in the Northern Cape and chrome ore at Dwarsrivier in Mpumalanga.

It also produces manganese alloys used to strengthen steel at its works at Cato Ridge in Kwazulu-Natal, and chrome alloys at its works at Machadodorp, in Mpumalanga.

On February 24 2008, a furnace explosion in the factory claimed the lives of six employees who were on duty. In response to this, Assmang has set up a trust fund to financially assist the dependants of the employees killed in this catastrophe.

Signs were there…
Witnesses, and the union investigation, allege that the furnace explosion could have been prevented if the Assmang management had acted to address the signs that the furnace was in distress for some days and at least twenty four hours before the explosion.

These signs included: the serious water leakages into the furnace; the failure of the furnace to function optimally; the serious maintenance problems which were being addressed in production instead of through an emergency shut down; the sudden malfunctioning of the furnace tundish switches, which had been tripping out the furnace but ceased to do so at a certain point, despite the furnace losing excessive amounts of water; and the warnings that the furnace 6 had serious structural problems.

Numsa demand a Trust Fund
The Trust fund was a demand by Numsa made at a meeting with Assmang co-owners African Rainbow Mineral Directors in Johannesburg on April 17 2008.

This is an important development in that the bosses have agreed to provide and contribute to a fund which pays more than the Compensational for Occupational Injuries and Diseases act (COIDA), which takes away the right of employees to sue the employer, however, should negligence be proven against the employer, workers and their representative can resort to section 56 of COIDA for additional compensation.

However, they have denied Numsa and family members representation in setting up and managing this fund. ARM employers went ahead on the demand from Numsa, and implemented the demand, without further consultation with or involvement of Numsa and collective family representation.

Therefore the rules and benefits of the fund have not been negotiated as originally demanded by Numsa.

The trust fund payout by the company happens on the back of a section 32 inquiry currently underway at Cato Ridge Country Club.

The section 32 inquiry is trying to establish, among others, the cause of the explosion, whether anyone was negligent, whether any Occupational Health and Safety laws were contravened and the remedial action to prevent similar explosions in future.

The trust fund to the tune of R15m was established to cater for the needs of families and dependants of the six deceased employees.

The fund is appreciated as the payment is over and above what the families received from the Compensation fund.

The money is distributed equally to families and dependents monthly. The trustees of the fund have taken into account future expenses by the beneficiaries of the trust fund.

It is linked to inflation and will be increased annually whenever there is an increase for employees at Assmang.

The beneficiaries will receive the money until such time as the deceased would have reached a pensionable age or 60 years.

The beneficiaries will be paid on a monthly basis dependent on the employment contract of the deceased.

The amount will merely serve as a replacement of income for the deceased. While we commend the company for doing this, we must not forget the way Assmang is treating its employees.

Employees are still exposed to this pain and suffering which is always covered up and paid off and suddenly all is forgotten.

Assmang is not new to controversy. The company was in the news recently for allegedly exposing its employees to unacceptably high levels of manganese. Some workers are suffering from, or showing signs and symptoms of, manganese poisoning.

The matter was also a subject of a section 32 inquiry which lasted for two years. The report of the inquiry that relates to manganese poisoning has been submitted to the National Prosecution Authority to decide whether or not to prosecute.

Assmang was warned…
According to media reports, Assmang was warned as far back as 1995 that the levels of manganese in their factory were too high.

Harold Gayze, of occupational hygiene firm Occutech, said that his firm had assessed Assmang every two years between 1995 and 2001 as required by local law.

In 1999 Assmang was advised to use international measurements of manganese dust levels as local legislation was outdated and in some areas of the factory it was suggested that workers be given “respiratory protection as an interim solution”.

Numsa is also disturbed by the competency or lack thereof of the justice system in our country to prosecute cases of employers who were found to be violating workplace legislations.

Numsa calls on government to consider increasing penalties for employers who are found to be on the wrong side of the law.

While companies are being fined millions of rands for violating competition laws, the maximum fine employers can pay for injury on duty is R100 000 which makes it cheaper, and more convenient, for employers to pay fines than to spend millions in improving the health and safety in the workplace.

Mminele is Numsa’s Health and Safety coordinator

Uses of manganese

• According to the International Manganese Institute, the chief uses of manganese are in steel products, portable batteries and aluminium beverage cans.

• About 90 percent of all manganese consumed goes into steel. World manganese reserves are estimated at several billion tons. Reserves of high grade ores, with more than 44 percent manganese content, are in the range of 680 million tons of ore.

• South Africa, Australia, Brazil and Gabon produce more than 90 percent of supplies. In 2006 South Africa’s manganese ore exports were valued at R2.2 billion. – Samantha Enslin-Payne and Slindile Khanyile


Source

Numsa News No 2 July 2010
 

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