ESG (Environmental, Social, and Governance) considerations have become increasingly important in the South African mining sector, an industry characterised by challenges of energy and water shortages. This is against the backdrop of the South African operating environment, which has one of the highest unemployment levels and deep-rooted structural inequality.
The International Labour Organisation (ILO, 2022) highlights the plight of the working poor, who despite being low wage earners, live in moderate to extreme poverty, with very little difference to the unemployed. Further to this, the Sustainable Development Goals (SDG) advocate for a living wage, moving beyond the minimum wage, to reduce inequality and eradicate poverty which will contribute to stable labour environments and thriving economies. Greater accountability is being demanded by stakeholders, in the effort to support frugal but dignified lifestyles and prioritise the ESG agenda, with the social aspect having arguably the greatest consequences to sustainability after the environmental.
With the mining sector being one of the largest employer bases, contributing around 6.2% to the country’s GDP in 2023, (SA Minerals Council, 2023), It is incumbent on employers to introduce sustainable practices that shape the evolution of the employment relationship and the communities within which they exist. Reframing how we look at employee benefits – the potential of harnessing employees’ collective buying power to provide more cost-effective access to products, services, and resources with the aim of helping lower paid employees live a “decent” life, is one of the options we explore. This, not only to narrow the vertical wage gap, but also to supplement an employee value proposition that is responsive to societal issues and economic constraints.
The Mining Charter is clear, that mining companies need to improve the standard of housing for mine employees. The provision of foundational benefits as an add on, can be an effective low-cost strategy towards achieving a living wage if approached in a measured and practical manner. The journey towards fair, responsible and transparent remuneration is a balancing act, requiring the coordination of multiple stakeholders and sustainable innovation. The benefits of enhancing the EVP in this manner is fundamental and bodes well for employee productivity, engagement and retention.
Join us as we explore sustainable HR growth strategies, the extent to which legislated remuneration disclosure will influence the wage gap (pay ratios) in organisations and the advancement of the diversity, equity and inclusion agenda.
