People overview

People overview

Health and safety

Highlights
Lowlights
PPC safety and health policy

(revised January 2018)

PPC is committed to protecting the occupational health and safety of employees, contractors and visitors in the workplace and, where appropriate, other stakeholders. The PPC group demonstrates this commitment through its occupational health and safety management system that is entrenched in all organisational activities and conforms to recognised occupational and railway health and safety standards, and legal frameworks.

PPC will establish clear accountability for leading occupational health and safety standards in the company and although legal compliance is the foundation of the PPC health and safety management system, it will also monitor emerging issues, technological innovations and stakeholder interests to ensure effective and sustainable solutions to health and safety challenges. Accordingly, the health and safety policy will be reviewed and revised periodically.

To achieve best-in-class occupational health and safety performance, PPC is committed to:

  • Building, through engagement and empowerment, a proactive, high-reliability health and safety culture at individual, leadership and organisational levels
  • Providing the necessary resources and implementing formal systems and structures to ensure an effective health and safety management system for the group to achieve related objectives
  • Maintaining a specialised health and safety function for an informed view of associated risks from business activities
  • Continuously identifying and controlling occupational health and safety risks to eliminate or minimise related hazards in the workplace and, where appropriate, neighbouring communities
  • Establishing meaningful metrics to monitor our health and safety performance, and using these to set goals for continual improvement
  • Reporting and investigating health and safety incidents and actively sharing best practices and learnings
  • Educating, training and developing employees and other stakeholders, where appropriate, to ensure each person is able to act in a way conducive to health and safety
  • Maintaining open and transparent relations with all our stakeholders on occupational health and safety matters
  • Actively involving employee representatives in managing health and safety

It is the responsibility of PPC's leaders to ensure this policy is understood, effectively communicated and implemented throughout the group. All employees are responsible for understanding the impacts of this policy on their day-to-day work practices and are expected to apply and support these principles.

Safety performance

PPC prides itself on excellent safety systems and has made considerable progress in recent years. We are therefore pleased to report a considerably improved safety performance for the review period. In the previous financial period (2017), we regrettably recorded a fatality at 3Q Rustenburg, while we had zero fatalities in 2018 in our consolidated subsidiaries. LTIs improved markedly, from 31 in the prior period to 19 in 2018.

Scope of safety data

We use management control as the guiding principle to determine whether safety statistics are reported in PPC group figures or separately:

  • Where PPC has a majority share in the business, it completes a financial consolidation and therefore has effective management control. Safety statistics are included in group data
  • Where PPC does not consolidate the financials (ie does not have a majority shareholding) or have effective management control, statistics are reported separately

Under this definition:

  • Safika (91%), Pronto and 3Q Mahuma (100%) health and safety statistics are included
  • Habesha (38%) is excluded and reported separately from PPC group statistics

At Habesha (Ethiopia), four employees were working inside the bin of a clay screw conveyor when it was switched on and one unfortunately succumbed to his injuries. His co-workers' injuries were classified as LTIs. Our deepest condolences go to the family of the deceased, his colleagues and his friends.

PPC affirms its commitment to the safety and health of all its team members and other stakeholders. These incidents (fatalities and LTIs) strengthen our resolve to continuously improve our safety performance. As with all other significant incidents, full investigations are conducted and corrective steps and learnings are implemented throughout the group. Interventions at Habesha to improve its safety culture continue.

PPC group safety statistics

For comparison, all statistics below are based on a rolling 12 months.

Target 
March 
2019
 
Actual
March
2018
 
Excluding   
Pronto,   
Safika, 3Q(4)
March   
2018  
 
Actual   
March   
2017   
Actual 
six months 
to March 
2016 
Actual 
September 
2016 
Actual 
September 
2015 
 
Fatalities  0  0  0    1     
FFR(1) per 200 000 hours worked  0  0  0    0,01    0,05  0,02   
Number of LTIs  None set  19  11(5) 31(3) 10  20  18   
LTIFR per 200 000 hours worked (12-month window) 0,24  0,25  0,21(4) 0,37    0,24  0,24  0,24   
Days lost to LTIs  None set  472  354(6) 599    239  511  804   
Significant administrative notices(2) (number) None set  2  –    4     
(1) Fatality frequency rate.
(2) Section 54 (Department of Mineral Resources – South Africa only).
(3) Thirty-two incidents resulted in 31 LTIs and one fatality.
(4) LTIFR = 0,21 for South Africa, Botswana and Zimbabwe (excluding Safika, Pronto and 3Q).
(5) The number of LTIs assured by Deloitte for South Africa (excluding Safika, Pronto and 3Q), Botswana and Zimbabwe is 11.
(6) The number of days lost assured by Deloitte for South Africa, Botswana and Zimbabwe is 354 (excluding Pronto, Safika and 3Q).

Pleasingly, the group LTIFR has returned to its stable trend line after the disappointing spike in 2017. Both the number and severity of incidents declined at PPC-controlled sites for an LTIFR of 0,25 at year-end from 0,37 in the prior period.

PPC uses a structured incident-analysis tool for all significant incidents. Root causes are comprehensively assessed across people, the environment, equipment/tools/material, procedures/standards and organisational factors. Action plans and lessons are shared to eliminate similar incidents group-wide.

Group statistics by region/operation
Number March
2018
March
2017
Six months
to March
2016
September
2016
September
2015
 
Total 19 32(5) 12(1) 18    19  
Operational LTIs and fatalities 18 28    8    14    16  
Project LTIs and fatalities 1 4    4    4    3  
PPC employees involved 14 18    7    10    14  
PPC contractors involved 5 14    5    8    5  
SA operations' LTIs and fatality 17 27    6    11    15  
International holdings' LTIs 2 5    6    7    4  
Established sites(2) LTIs 10 14    5    n/a(4) n/a  
New sites(3) LTIs and fatality 9 18    7    n/a    n/a  
(1) One fatality and 11 LTIs.
(2) Established sites include: Dwaalboom, De Hoek, Jupiter, Hercules and Beestekraal, Slurry, Riebeeck, Port Elizabeth, Mount Steward, Grassridge, Lime Acres, Saldanha, Montague Gardens, Sales and Marketing, Sandton, Group Laboratory Operations, Aggregates SA (Mooiplaas and Laezonia), George, Colleen Bawn, Bulawayo, Aggregates Botswana and Botswana depot.
(3) New sites include: Slurry SK9 project, Pronto, 3Q Mahuma, Safika, Harare factory (Zimbabwe), CIMERWA (Rwanda), DRC factory (DRC) and Project Habesha (Ethiopia).
(4) Meaningful comparisons with previous and current years not possible.
(5) One fatality and 31 LTIs.

Direct comparisons for different reporting periods and comparing new sites with established sites do not necessarily represent developing trends. We are concerned about the number of LTIs at our subsidiary sites, which is being addressed in our snakes and hazards programme (part of PPC Alive) to improve hazard identification, safety reporting and communication.

Authority visits
March
2018
March
2017
Six months
to March
2016
September
2015
September
2014
 
Number of visits 28 34 13 28 48  
Section 54 (SA – work stoppage) 2 4 3 4 2  
Section 55 (SA – notice to rectify) 9 7 0 16 2  
Other (non-SA) 0 0 0 2 7  

In the review period, PPC had 28 visits by authorities. The significant administrative notices (DMR – section 54) served on the Aggregates Laezonia quarry were lifted within 48 hours after appropriate representation was made to the principal inspector.

There were zero notices from the Department of Labour on health and safety issues.

General safety matters

Occupational health

All contractors and employees undergo health and safety induction before starting work. In addition to entry, annual and exit medical examinations for all PPC employees and contractors, we complete extensive pre-deployment health evaluations for expatriate workers (including all employees and contractors travelling for international assignments). These include medical assessments, fitness to work and/or travel, individual travel health assessments, vaccination requirements and malaria prophylaxis.

All applicable health and medical reporting requirements of the departments of mineral resources or labour have been met. In addition, under the mining charter scorecard, PPC reports on HIV/Aids and tuberculosis programmes run by clinics at group operations. Reported prevalence is low in South African operations for both diseases, with fewer than 60 and 30 confirmed cases respectively across all sites. No cases of silicosis were reported in the period, maintaining the 10-year trend, and incidence remains extremely low in PPC. Robust recording standards for these conditions are still being implemented in certain operations outside South Africa.

PPC conducts occupational hygiene surveys (lighting, noise, dust, ergonomics, heat, vibration and ventilation) at all established operations. Where issues are identified, these are rectified with advice from occupational hygiene and medical personnel. Occupational hygiene surveys will be introduced at new operations and subsidiaries, as required, based on the relevant occupational health risk assessment.

In 2016, we implemented a malaria-control programme at our DRC project site. We are also working with the government of Rwanda (CIMERWA factory) to control malaria through initiatives such as malaria awareness induction, insect repellent, issuing malaria test kits, extensive malaria vector spraying, providing mosquito and window nets at contractor construction, employee accommodation sites, and adjacent villages. We are pleased to report that the significant reduction in malaria prevalence in these areas is being maintained, with both the DRC operation and CIMERWA each reporting fewer than 200 malaria cases in the reporting period.

Outlook

PPC's strategy to grow its business entails expanding existing operations; constructing, commissioning (both greenfield and brownfield) projects, operating new sites and diversifying into a number of other materials and services businesses. The safety and health risk profile of each of these initiatives differs vastly and, although PPC is guided by its overall health and safety policy, implementation methods and processes need to consider in-country dynamics.

At present, projects in Rwanda, the DRC and Zimbabwe have completed construction and operations have ramped up production. Slurry's SK9 project was commissioned in April 2018. The challenges of building and maintaining robust safety and health systems are significant and we recognise that we need to strengthen the base in our established and new (subsidiary) operations.

Focus areas
Why we do it

PPC passionately cares for the health and safety of its people across all operations. We are sincere about making a difference to ensure all our people get home healthy and safe each day. As such, we are striving to create a culture of zero harm (beyond zero) and become more resilient.

How we do it
What we do

Our established health and safety systems include risk assessments, thorough incident investigations based on the serious incident analysis technique, regular inspections, observations and audits (internal and external as well as legal compliance audits) and reporting.

We appreciate that our operations are constantly changing and we need to adapt, Based on our proactive approach, we have identified a number of initiatives for 2019 and beyond:

Human capital

Highlights
Lowlights

Following leadership changes and corporate action in the review period (and in recent years) PPC has reviewed its strategic priorities. The resulting key initiatives support our business strategies and ensure stability, sustainability and growth, with human capital priorities focused on:

Our initiatives and performance areas for the review period are summarised below. Most of these performance areas support our strategic priorities.

Workforce analysis

This report provides a total company view, including Pronto and the new milling plant in Harare. There was a slight decrease in total workforce to 3 538* in 2018. The marginal reduction in the South African workforce reflects the moratorium on recruitment during the head office restructuring process.

Total workforce as at 31 March 2018
2018   2017  
South Africa 2 048* 2 069  
Subsidiaries (Pronto, 3Q, Safika) 510   506  
Botswana 131* 138  
Zimbabwe 436* 428  
Cimerwa 273   248  
DRC 140   191  
3 538   3 580  

* Verified by Deloitte for assurance.

We maintained a well-balanced workforce, with young talent (under 35) representing some 33% of the total, while more stable and seasoned employees accounted for 44%. The risk of losing intellectual capital and institutional experience was well managed, with 23% of our employees aged 50 and above.

Employment equity

In the main, the company continued to demonstrate progress on transformation targets compared to industry norms in South Africa. Female representation is at 24,8% against 45,2% in the national economically active population (EAP), and our initiatives to close the gap through recruitment and promotion helped balance leavers with new appointments. The young talent category has the highest percentage of people from designated groups (African, coloured and Indian) and female employees. We have also made progress in diversifying our talent pipeline: analysing new appointments in South Africa shows 88% are African, coloured or Indian, 92% comply with employment equity targets and 38% are female.

National EAP versus PPC
             
Male Female Total  
Population group EAP
%
PPC
%
EAP
%
PPC
%
EAP
%
PPC
%
 
African 42,8 44,7 35,1 12,5 77,9 57,2    
Coloured 5,3 15,4 4,5 4,3 9,8 19,7    
Indian 1,8 0,9 1,0 0,9 2,8 1,8    
White 5,3 13,3 4,2 6,3 9,5 19,6    
Total 55,2 74,4 44,8 24 100 98,3*  

* Excluding non-South African citizens.

In South Africa, the proportion of designated groups in senior management has increased by 1,4%.

norm20172018Management (%)

Turnover

Our group turnover rate rose to almost 10%*, partly due to restructuring our DRC operations. The review of our head office structure resulted in 15 voluntary resignations. The purpose of voluntary exits was to give employees an incentivised choice and limit possible disputes.

While we have made progress in transforming our workforce demographics, the turnover rate in designated groups is disappointingly high. To prevent avoidable turnover, team engagement sessions are under way to develop a compelling employee value proposition.

* With South Africa (9,41%); Zimbabwe (1,23%) and Botswana (8%) verified by Deloitte for assurance (excluding Pronto, 3Q and Safika).

Turnover 2018
%
2017
%
Benchmark
%
 
South Africa Voluntary 5 4,6 12,8  
Involuntary 5 5
International Voluntary 1,6 1,3
Involuntary 6,9 1,3
Total 9,9 7,3 17,8  
Absenteeism

PPC's absenteeism rate is 2%, comparing well to the average industry benchmark of 3%.

Bargaining representation

Union membership is unchanged at 36% of the total workforce, with National Union of Mineworkers (NUM) still having the highest membership.

PPC supports freedom of association and prohibits unfair discrimination. Relevant agreements between the company and various unions are in place and well maintained. The employee relations climate is sound and no significant industrial incidents or major disputes were recorded during the reporting period.

Wage negotiations at most plants were concluded during the year without disruptions, and each plant settled within affordable levels. Slurry and IDM Meyerton recorded wage-related strikes of two days and one day respectively.

Developing our people

Given the widespread shortage of key skills in our industry, we understand the need to develop a skills transfer plan for critical positions and scarce skills, particularly for roles currently occupied by people over age 50. Equally, focused initiatives are critical to retain young talent and talent with scarce skills and in critical roles. We have adopted an integrated talent management philosophy with supportive practices to ensure effective delivery of talent and skills throughout the organisation.

The challenge lies in balancing the group's needs for specialist skills with compliance to national and sectoral HR targets. This is an industry-wide challenge.

Talent and culture

Leadership skills (competencies) were defined and communicated across the business to ensure clear understanding and alignment to our strategic priorities. We also revised our performance management process as part of promoting a high-performance culture. Group values were reviewed and rolled out in South Africa, and will be extended across the group by August 2018.

PPC values

PPC values

We made progress on developing a leadership assessment tool, which will be finalised and implemented in 2018. These assessments will help identify development gaps and the actions required to close these gaps. We believe this development plan will also support our succession planning, which was launched early in the year and add value in terms of identifying suitable candidates for the senior leadership pipeline.

Opportunities

We believe the process of cultural revitalisation and implementing improved HR systems will entrench the characteristics of a high-performing organisation. Equally, the development and launch of a compelling employee value proposition (EVP) will support our ability to attract and retain talent.

As the scale of the group has changed markedly in recent years, we are reviewing the alignment between our policies and practices to ensure discipline, fair application and fair treatment of all employees. This process will continue in the new financial year.

We are also enhancing engagement levels between PPC's leadership and our employees to improve understanding of business initiatives, eliminate misinterpretation of information, build trusting relationships and drive performance. In addition, better engagement will ensure the benefits of a diverse and inclusive workforce are truly appreciated.

Learning and development
Training hours per employment category: South Africa (excluding subsidiaries)
  2018       2017    
Region Total
training
hours
Total
employees
Average
hours/
employee
  Total
training
hours
Total
employees
Average
hours/
employee
 
Top management 0 4 0   1  
Senior management 133 28 5   63 24 3  
Professional 2 551 235 11   1 656 195 8  
Skilled workers 32 201 661 49   37 070 1 032 37  
Semi-skilled 25 990 1 023 25   27 477 749 39  
Unskilled 3 887 19 205    
Learners 130 295 78 1 670   157 274 68 2 313  
Total 195 056 2 048 95   223 541 2 069 108  
Training hours per country: international
  2018       2017    
Country Total
training
hours
Total
employees
Average
hours/
employee
  Total
training
hours
Total
employees
Average
hours/
employee
 
Zimbabwe 9 626 412 23   35 360 428 83  
Rwanda 18 287 258 71   19 288 248 78  
Botswana 3 146 131 24   2 547 138 18  
DRC 2 054 145 14   6 795 191 36  
Training hours by race and gender: South Africa
      Female*           Male        
Training hours for year African Coloured Indian White Total   African Coloured Indian White Total Grand total  
2016 20 124 2 403 59 526 23 112   45 772 26 541 77 5 577 77 967 101 079  
2017 35 226 10 742 155 3 117 49 239   108 141 49 889 142 16 130 174 302 223 541  
2018 40 813 7 918 51 3 044 51 826   81 421 49 026 55 12 728 143 230 195 056  

* Training hours for women represent almost 27% of the total, versus 23% in 2016.

Training expenditure as a percentage of wage bills
Annual
wage billl
Spend 2018
%
2017
%
 
South Africa (ZAR)* 1 104 666 407 43 981 435 4,0 4,8  
Zimbabwe (US$) 10 205 311 154 694 1,5 1,2  
Botswana (Pula) 30 784 200 570 921 1,9 1,1  
Rwanda (Rwandan franc) 4 117 266 237 79 832 956 1,9 3,1  
DRC (US$) 5 049 920 30 318 0,6 5,6  

* South African wage bill and training expenditure includes all subsidiaries.

Learning and development initiatives measured as hours per employee are above 90-hour benchmark targets across most parts of PPC. Our investment in learning and development across the group is a significant 2,5% of the wage bill, with South African operations recording over 4%. Of our total learning and development expenditure, 44% was directed at the young talent pool of 178 learner employees. Initiatives included under this category are illustrated below. As such, we were able to maintain our level 5 rating on the skills development element of the dti's BBBEE codes under challenging financial conditions.

The growth and development of talent is one of our human capital strategic priorities. A healthy pipeline of young talent into the organisation will ensure effective implementation of talent plans to meet short and long-term business requirements.

The comparative numbers of learners participating in our young talent development initiatives are shown below:

Young talent development (South Africa)

Opportunities

The implementation of an integrated learning solution and management system will support talent development and self-learning, while containing costs and enhancing reporting. This project is scheduled to begin in the new reporting period and will be phased over two years to cover all PPC operations.

2018 and beyond

Our long-term people strategy (summarised below) is supported by strategic priorities that will be implemented in the next 12 to 18 months:

STRATEGY FRAMEWORK