Employees
The health and safety of our employees remains our utmost priority. We endeavour to promote safety, equality and diversity at every level of our organisation, and to support our employees' continued development and well-being.
PRINCIPLES
- CREATING A SAFE AND HEALTHY WORKING ENVIRONMENT
- PRIORITISING THE DEVELOPMENT AND WELL-BEING OF OUR EMPLOYEES
- OPTIMISING SOCIO-ECONOMIC BENEFIT
A SNAPSHOT OF OUR PERFORMANCE
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One fatality
(2018: Zero).
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Seven lost time injuries (LTIs) have been recorded (2018: Four).
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Lost time injury frequency rate (LTIFR) is 0.28 (2018: 0.15).
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60 848 proactive safety management actions implemented (2018: 64 952).
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US$37.1 million spent on employee remuneration and benefits (2018: US$36.1 million).
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14.9% staff turnover (2018: 8.7%).
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Following an extensive audit, the ISO 45001 certification was retained at Letšeng.
Related UN SDGs
For more information on our approach to integrating the 17 SDGs into our business operations, please see our UN SDG Framework (Working towards global goals).
Our challenges
- Contractor management with regard to instilling a culture of safe working practices poses a challenge. To support contractor alignment with Gem Diamonds’ approach to safety, along with general work practices, specific processes and procedures for contractors and sub-contractors have been formulated.
- Mining a remote site at altitude in severe weather conditions requires a consistent focus on aspects of employee health, safety and well-being.
- In preparation for the sale of the Ghaghoo mine, we are cognisant of the impact the transaction will have on the remaining employees at the mine.
Our future
We continue to prioritise our employees' safety, health and well-being, and to promote fair and equitable working practices. Attracting, developing and retaining the right people to deliver on our organisational objectives and to achieve exceptional results remains a top priority.
Material matters
Providing a safe working environment
Our context
The Letšeng mine is one of the highest and most remote diamond mines in the world. These extreme operating conditions pose unique operational challenges that require specialised knowledge, rigorous planning and exceptional leadership to embed a culture of zero harm.
Regrettably, in February 2019, one of our sub-contractors tragically lost his life at our Letšeng mine while operating a vehicle. Furthermore, although we saw a decrease in our all injury frequency rate, we recorded an increase in LTIs during the year. In response to these incidences and in line with our aim of achieving zero harm, we have undertaken an organisation-wide analysis of safety practices and put a number of measures in place to address this trend (For more information, please see our safety case study.)
Our approach
2019 saw an increase in the number of lost-time injuries, and one unfortunate and tragic fatality. After a thorough review of the incidents this year, including an in-depth analysis of the underlying causes, it became clear that they were not necessarily a result of the failure of our systems but, rather, certain shortfalls in full understanding of and compliance with systems that could have prevented or reduced the severity of these incidents. With that in mind, our focus during 2019 has been on re-emphasising the importance of the Gem Diamonds’ safety system, of adherence to that system, and the importance of undertaking prescribed actions necessary to mitigate identified risks.
Without in any way diminishing the impact of the safety incidents that took place this year, or the scale of our response to them, it is pleasing to note that we saw a marked improvement in less-serious injury categories as a result of the systems and procedures we have put in place over the past several years.
Our focus is always on achieving zero harm and believe that all injuries are preventable. We believe that the additional measures put in place will assist in achieving our ultimate aim of safeguarding our employees’ health, safety and well-being (please see our safety case study for more information).
We have taken a firm stand against non-compliance to our high safety standards amongst our employees, as well as contractors and sub-contractors. During the year, as a result of non-compliance to our high safety standards, one contractor was blacklisted, banning them from further work with Gem Diamonds, and another has been placed on a final-notice watchlist after identifying unsafe working practices.
Our performance
- One fatality (2018: Zero).
- Seven LTIs occurred across the Group during 2019 (2018: four), resulting in a Group-wide lost time injury frequency rate (LTIFR) of 0.28.
- All injury frequency rate of 0.93 (2018:1.45)
- Zero restricted work injuries (RWIs) occurred across the Group during 2019 (2018: four).
- ISO 45001 certification was retained at Letšeng.
Attracting and retaining qualified people
Our context
Across every industry, the relationship between quality talent, international experience and business performance is clear. Furthermore, the growing skills shortage in the global natural resource sector has intensified the need to attract and retain high-calibre employees.
Our approach
We attract and retain talented, passionate people by offering market-related salaries, supportive working environments and meaningful development experiences. We seek to engage with our employees on an ongoing basis to create a collaborative working environment that facilitates the development and retention of our people. Furthermore, community projects and contributions provide a differentiating factor for us as an employer, demonstrating a higher purpose to our employees that goes beyond the finite resource we mine, to our stated aim of creating a positive legacy for all our stakeholders.
We recognise that remuneration plays a significant role in the attraction and retention of quality individuals. Gem Diamonds remunerates all employees in line with market-related rates, with male and female employees in the same occupational grade rewarded at the same level. Furthermore, we endeavour to ensure that our lowest-graded employees are remunerated above the minimum wage standards of the host country. While Lesotho and Botswana do not prescribe a minimum wage in the mining sector, we use the construction industry wage guidelines as the standard.
In 2018, Gem Diamonds conducted an organisational health survey which will drive implementation of a new value proposition. This gave rise in 2019 to a once-off, BT focused reward scheme.
The shift in the composition of our workforce is reflective of the change in projects over the life of mine. During 2018, projects carried out on-site required a high degree of skilled and professional labour, while projects carried out during 2019 necessitated a larger proportion of unskilled or semi-skilled labour. This is reflected in the compensation profile of the operation.
In total, 13.5% of the workforce at Letšeng were compensated at the operation’s minimum wage (2018: 8.6%). In 2019, the lowest-graded permanent employees at our Letšeng mine were remunerated at 46% above the construction sector’s minimum wage (2018: 54%).
The remainder of Gem Diamonds’ workforce is remunerated above the minimum wage, in line with market-related rates. We ensure that minimum requirements regarding remuneration are contractually stipulated with all our major labour contractors.
To drive attraction and retention of top talent, we provide benefits and incentives over and above basic remuneration. 89% of our Letšeng employees, which constitute our permanent workforce at the mine, are subscribed to the mandatory government retirement provision scheme, and Letšeng contributes 7.5% of the annual salary per employee to this scheme, while the employee also contributes 7.5%. The remaining 11% are fixed-term contract employees, and therefore not eligible for this benefit but are, however, paid a fixed-term contract allowance at 20%. Employees at Ghaghoo receive a gratuity payment upon completion of their contract, which is equal to 15% of their basic monthly salary for each month of employment.
Employees at our Belgian operations contribute 32% of their salary to a mandatory government retirement scheme (2018: 32%). All other operations and offices remunerate employees on a cost-to-company basis, and employees are free to elect their retirement schemes and contributions.
We manage our employee ageing appropriately through continued monitoring of our workforce’s average age .
Given the remote location of our mine, every care is taken to ensure the well-being and comfort of our employees during their shift rotations. Letšeng operates continuously, and while our shift configurations are determined by local legislative requirements, as well as operational and market demands, we make every effort to minimise disruptions to normal social structures as far as possible. Although our Ghaghoo mine has been placed on care and maintenance, we strive to support the well-being of our employees who are charged with the care of the mine.
Our performance
- 496 employees (2018: 401) and 1 490 contractor employees (2018: 1740) at year end.
- The average number of employees was 428 (2018: 412), and the average number of contractor employees was 1 428 (2018: 1777).
- US$37.1 million was spent on employee wages, benefits and incentives (2018: US$36.1 million).
- Group-wide absenteeism rate was 1.6 days per person (2018: 1.6 days).
- 14.9% Group-wide voluntary staff turnover (2018: 8.7%).
- Zero cases of discrimination were recorded in 2018 (2018: Zero).
- 20% of our workforce consisted of female employees (2018: 20%).
- 14% of our Gem Diamonds’ Board members were female (2018: 0%).
- 36% of the Group’s senior management were female (2017: 11%).
Staff demographics
| 2019 | Male | Female | Local | <30 | 31-50 | >50 | |
| Board | 86% | 14% | 29% | 0% | 43% | 57% | |
| Senior Management | 64% | 36% | 91% | 0% | 73% | 27% | |
| Middle Management | 84% | 16% | 98% | 8% | 72% | 20% | |
| Total | 80% | 20% | 98% | 10% | 76% | 14% | |
| 2018 | Male | Female | Local | <30 | 31-50 | >50 | |
| Board | 100% | 0% | 25% | 0% | 55% | 45% | |
| Senior Management | 89% | 11% | 83% | 6% | 50% | 44% | |
| Middle Management | 82% | 16% | 98% | 8% | 73% | 20% | |
| Total | 80% | 20% | 96% | 12% | 76% | 14% |
Providing skills development opportunities for employees
Our context
To remain competitive, we require exceptional people. While we invest in recruiting specialist skills as required, we also empower Gem Diamonds’ employees to further their careers by providing learning and development opportunities.
Our approach
We invest in the training and development of our employees. While our subsidiaries have not yet implemented programmes for skills management or lifelong learning, we offer training through various internal and external programmes, as well as through our well-established mentorship culture. In addition, we perform annual career reviews at strategic levels across the Group to ensure that key personnel are engaged and developed to meet business requirements.
Our performance
- Total hours of training provided to employees:
- Senior management: 96 hours (2018: 614).
- Middle management: 6 268 hours (2018: 2 474).
- Non-management: 24 453 hours (2018: 15 145).
- 17% of employee career reviews performed (2018: 28%).
- 31% of female employees received reviews (2018: 60%).
- 22% of male employees received reviews (2018: 20%).
Ensuring our employees remain healthy
Our context
The remote location of our mines necessitates a reliance on the on-site clinics and medical stations at our operations to provide emergency, occupational and primary healthcare to our employees.
Our approach
We are committed to providing an environment that actively promotes and supports our employees’ health and well-being. In addition to reactive medical treatment, we believe in a proactive approach to employee health management. We commit to providing an environment that prevents unhealthy situations and actively promotes and supports employee well-being and healthy living.
During the induction programme for all new employees, we facilitate a complete medical examination to proactively promote their care and well-being. Additionally, when an employee leaves our operations, we perform exit medical examinations.
In 2019, primary health cases and total occupational cases fell significantly from prior years. No cases of malaria or cholera were reported at our operations for the third consecutive year.
Our performance
- Fully equipped clinic at Letšeng to deal with all on-site and occupational medical needs.
- Ghaghoo clinic offers primary healthcare, with backup medical emergency services provided through a third-party supplier.
- 100% pre-employment medical examination rate at Letšeng (2018: 100%).
- 100% exit-medical examination rate at Letšeng (2018: 100%).
- Increase in the number of occupational health cases to 629 (2018: 530).
- 6 273 serious disease prevention and management interventions (2018: 8 611).
Engaging with employees and elected representatives
Our context
We seek to maintain and consistently improve employee engagement to enhance our employee relations. During 2019, our Letšeng operation remained non-unionised, while Ghaghoo became unionised in 2016.
Our approach
By engaging with elected representatives, we aim to be proactive in addressing employee grievances. Moreover, we maintain a policy of freedom of association and our employees are free to join unions and other collective-bargaining organisations.
Our employees are notified of any significant or material changes to the operations or their working environments through established policies and procedures. The provisions in these policies are based on a detailed change management system, as well as the host country’s legislation
In 2019, the Gem Diamonds’ Board engaged its employees through a survey, followed by a strategic session on mission and values to collaboratively define the way we do things. In this way, using internal stakeholder feedback, we were able to reach a conclusion on what the desired culture within Gem Diamonds should be and how it might be achieved (see case study).
Furthermore, following the appointment of Ms Mazvi Maharasoa as a Non-Executive Director of Gem Diamonds’ Board, it was decided that, given her insight and depth of local experience, Ms Maharasoa would take the lead in driving employee engagement and consultation from Board level. Ms Maharasoa has over 20 years of senior management experience, of which 10 years were spent in the mining sector with her appointment as the Chief Executive Officer of Letšeng Diamonds (Pty) Ltd (2009 to 2017) following serving for two years as its Resident Director (2007 to 2009). Ms Maharasoa was also the Founder and President of the Lesotho Chamber of Mines (2016). Prior to Ms Maharasoa's involvement in the mining sector, she worked in the Ministry of Natural Resources and the Central Bank of Lesotho, where she was the senior legal counsel for each of these entities.
Taking the above into consideration, we are satisfied that adequate mechanisms are in place to record and address employees’ grievances, and we maintain good relationships with our employees and relevant bodies.
Our performance
- Zero strikes or lockouts were recorded in 2019.
- Constructive engagement with employee representatives continued in 2019.
