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LABOUR AND TRANSFORMATION

LA1

Reasonable Assurance

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
LA1: Total workforce by employment type, employment contract and region.

Workforce composition

AngloGold Ashanti is a significant employer in many of the countries in which it operates. The majority of the group’s employees (including contractors) are in South Africa, Ghana, Brazil, Guinea and Tanzania. Employees in these countries account for 84% of total employees and contractors globally.

In 2011, changes in employee numbers were recorded at the Cerro Vanguardia mine in Argentina, where recruitment has been ongoing since 2010 in respect of two new projects, at the Great Noligwa and Savuka operations in South Africa where efficiencies and step down budgets resulted in reductions in workforce and in Guinea where an increase in production necessitated the increase in employees.

Employee and contractor numbers by operation, country and region
Operations Total 2011 Variance from 2010 Employees Contractors
South Africa 32 082 -11.2% 28 176 3 906
Great Noligwa 2 967 -11.7% 2 884 83
Kopanang 5 892 -0.8% 5 468 424
Moab Khotsong 6 581 2.0% 4 618 1 963
Mponeng 5 788 0.2% 5 624 164
Savuka 815 -20.4% 785 30
Surface operations(1) 745 N/A(1) 745
TauTona 4 507 -2.3% 4 023 484
Other 4 787 -22.2% 4 029 758
Continental Africa 16 539 4.7% 9 783 6 756
Ghana        
Iduapriem 1 543 3.9% 741 802
Obuasi 5 538 -3.3% 4 163 1 375
Guinea        
Siguiri 3 666 13.5% 1 718 1 948
Mali        
Sadiola (Attributable 41%) 756 4.0% 347 409
Morila (Attributable 40%) 328 -8.8% 174 154
Yatela (Attributable 40%) 377 5.3% 129 248
Namibia        
Navachab 790 13.0% 790
Tanzania        
Geita 3 541 7.8% 1 721 1 820
Australasia 509 2.9 101 408
Australia        
Sunrise Dam 509 2.9 101 408
Americas 12 112 45.7% 8 006 4 106
Argentina        
Cerro Vanguardia 1 644 24.5% 1 065 579
Brazil        
AGA Mineração 3 825 10.4% 2 715 1 110
Serra Grande 1339 9.4% 1 039 300
USA        
CC&V 581 -11.2% 454 127
Other, including corporate and non-gold producing subsidiaries 4 723 24.9% 2 733 1 990
Group 61 242 -1.9% 46 066 17 176

(1) Reported separately for the first time in 2011

A breakdown of workforce by employment type and gender is not provided as it is currently not captured in our systems. We will however be able to report on this data following implementation of an enterprise resource planning (ERP) system. The ERP system implementation is being undertaken over a three and a half-year period commencing in August 2011.


LA2

Global Compact

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
LA2: Total number and rate of employee turnover by age group, gender and region

Employee turnover

Current and future potential shortages of key skills in the mining industry, as well as continued commodity price increases have led to increased turnover in some of our operating regions, particularly Australia and the USA.

Employee turnover % by country, region and gender
  2011 2010
  All employees Women All employees Women
South Africa Region 8.99 0.86 13.17 0.85
South Africa 8.99 0.86 13.17 0.85
Continental Africa Region        
DRC 15.02 8.84 2.68 0.89
Ghana 5.25 0.21 4.68 0.26
Guinea 0.60 0.07 1.36
Mali 2.74 0.00 1.71
Namibia 6.12 1.39 4.77 0.60
Tanzania 15.47 0.62 10.23 0.44
Australasia        
Australia 20.42 7.36 14.74 2.39
Americas        
Argentina 8.39 0.75 10.87 1.12
Brazil 8.26 0.68 6.84 0.92
Colombia 16.55 2.92 17.76 5.51
USA 20.81 5.80 15.11 4.29
Corporate        
Corporate Office 13.04 4.35 12.23 3.82
Group 8.66 0.92 11.15 0.84

Employee turnover is not provided by age group as separation by age group is not a parameter that we typically use in our human resource management and therefore systems do not exist to record this data in our business. We will however be able to report on this data following implementation of an enterprise resource planning (ERP) system. The ERP system implementation is being undertaken over a three and a half-year period commencing in August 2011.


LA4

Global Compact ICMM Reasonable Assurance

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
LA4: Percentage of employees covered by collective bargaining agreements

Employees covered by collective bargaining agreements

In 2011, 38,168 (approximately 81%) of all full-time employees were either members of a union or catered for through collective bargaining agreements. The number of employees used to calculate percentage coverage by collective bargaining agreements differs from the employee numbers recorded above (under the GRI indicator LA1) as only full-time employees with indefinite contracts were used as a basis to calculate the percentage of employees covered by collective bargaining agreements. Contractors or employees with fixed-term contracts are generally not covered by collective bargaining agreements.

High levels of unionisation occur at operations in South Africa, Brazil, Argentina and areas of West Africa. In Tanzania, although employees are free to join unions and management liaises regularly with unions represented, no single union has reached the minimum number of members required to be officially recognised as representative for the purposes of collective bargaining. There is no unionisation of employees in the USA and Australia.


LA5

Global Compact

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
LA5: Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements

Minimum notice period for operational changes

The minimum notice period for operational changes varies between operations. No minimum notice period is stipulated in countries such as the USA and Australia where the workforce is not unionised. In other jurisdictions, notice periods range from three weeks to six months.

Notice periods are specified in collective agreements only in Ghana and South Africa. In Ghana, a notice period of three months is specified in union recognition agreements. In South Africa, collective bargaining agreements refer to statutory notice periods, which range from one to six months depending on the complexity of the operational changes envisaged.


LA11

 

The information below provides disclosure under the Global Reporting Initiative (GRI) indicators
LA11: Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
LA12: Percentage of employees receiving regular performance and career development reviews by gender

Employee development

In line with AngloGold Ashanti's values and core strategy that 'people are the business', significant emphasis is placed on the training and development of people. Training and development initiatives are typically available for all staff regardless of the level of the employee or the type of work.

Mentorship and coaching are an intrinsic part of talent pool development and are provided within a three-tier management system, where the 'manager once removed' of each employee carries accountability for mentoring and career development and direct managers are accountable for coaching and personal effectiveness. Performance reviews form part of this system and are typically undertaken annually, and bi-annually in certain regions.

More detail on the implementation of this approach in the context of each region and country of operation are provided below:

In South Africa, life skills courses are offered for all levels of employees and cover skills such as life skills training, emotional intelligence and leadership development. Pre-retirement and post-retirement training is offered to all employees and they are encouraged to attend training from 10 years prior to retirement. Courses are also available to spouses of employees and cover issues such as health, financial skills and the psychological effects of retirement.

Alternative skills training in professions such as plumbing and bricklaying is offered through the South Africa region engineering training centre, to assist employees to sustain themselves after employment. Study assistance programmes also assist employees to gain knowledge and skills to ensure their employability, including outside of the mining industry. Loans for self-development study are offered, 50% of which is refundable following completion of the qualification.

All employees in South Africa received performance evaluations in 2011. This is undertaken formally at management level and informally at other levels of the business. Development plans are included in the skills development programme coordinated at regional level.

In Guinea, mentorship and coaching and team building courses are offered to employees to assist in the development of life skills. Sabbatical leave is available for a period of up to two years, providing that the employee concerned has at least one year of service. Development plans are included in annual performance evaluation reviews. In 2011, performance evaluation reviews were completed for 85% of employees.

In Tanzania, life skills courses include employee assistance programmes, fitness for work, fatigue management and basic financial management. These and other programmes cover entrepreneurial skills which are applicable post employment. Pre-retirement and post-retirement skills courses are provided. Management and leadership programmes provide additional career development for employees. Performance evaluation reviews were completed for all employees in Tanzania during 2011 and development plans for employees were specified as a result of this process, where they were required.

In Mali, performance evaluation reviews were conducted for senior and expatriate staff (5% of total permanent staff) and are underway for the balance of employees. No training programmes were offered in 2011.

In Namibia, a review of programmes offered will be undertaken in 2012. 100% of employees undertook performance evaluation reviews in 2011.

In Ghana, employees are offered training in life and entrepreneurial skills to enable them to support themselves after formal employment through the 'Life after formal employment' (LAFE) programme, available from commencement of employment through to exit. 25% of employees received performance reviews in 2011 and in most instances these identified development plans for the employees concerned.

In Brazil, programmes for employees approaching retirement are offered three years prior to retirement dates. 40% of employees received performance evaluation reviews and these included individual development plans.

In Argentina, 30% of employees without collective labour agreements received performance evaluation reviews and these included development plans. During 2011, training was undertaken on new technology, in order to ensure that employees’ skills were kept updated. Mentorship and coaching programmes were also undertaken, in order to increase the personal effectiveness of employees in their roles.

In the USA and Australia, 100% of employees received performance evaluation reviews.

Consolidated data on the overall percentage of employees receiving performance evaluations is not available at this stage. We will however be able to report on this data following implementation of an enterprise resource planning (ERP) system. The ERP system implementation is being undertaken over a three and a half-year period commencing in August 2011.


MM4

Reasonable Assurance

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
MM4: Number of strikes and lock-outs exceeding one week’s duration, by country

Strikes and lock outs

No strikes or lock-outs exceeding one week’s duration were recorded at AngloGold Ashanti operations during 2011.

AngloGold Ashanti’s South African operations were, however, affected by a sector-wide strike that took place from 28 July to 3 August 2011.


LA13

Global Compact

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator
LA13: Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity

Workforce diversity

The following table gives a breakdown of male and female employees per employee category:
  Male % Female %
  2011 2010 2011 2010
Senior and top management 89.84 90 10.16 10
Middle management and professionally qualified 82.48 81 17.52 19
Junior management and skilled staff 86.07 85 13.93 15
Semi-skilled and unskilled 90.27 90 9.73 10

Minority group membership is not a relevant indicator for the group in most areas of operation. However, in South Africa, the employment of Historically Disadvantaged South Africans (HDSAs) is a relevant consideration and is legislated in the Employment Equity Act. As at December 2011, 27% of AngloGold Ashanti's senior management in South Africa were classified as historically disadvantaged South Africans (HDSAs). Additional detail on the company's performance against employment equity targets is presented in the company's employment equity report, which is published on our website, www.anglogoldashanti.com.

The composition of the board of the company is detailed in the company's Annual Financial Statements.

Composition of workforce by age group cannot be reported as we do not have the systems in place to record this data. This parameter is not material to our business as turnover rates are low.


LA14

Global Compact

The information below provides disclosure under the Global Reporting Initiative (GRI) indicator LA14: Ratio of basic salary of men to women by employee category, by major operations

Ratio of basic salary

Ratio of basic salary of male to female employees
  2011 2010
Senior and top management 1.09 1.20
Middle management and professionally qualified 0.98 1.07
Junior management and skilled staff 0.96 0.96
Semi-skilled and unskilled 0.93 0.90