Human Rights and Industrial Relations

Old Mutual complies fully with the Labour Relations Act, and with the various Codes of Good Practice related to the Act. In seeking to support the Act and its implementation between October 2004 and March 2005 more than 1 500 of our managers will have been retrained on industrial relations processes and procedures. Each of those managers will also receive a copy of the 2005 Industrial Relations Handbook. The Handbook is also available on the company Intranet, making it accessible to all staff.

As a further measure, partly in response to Group Internal Audit requirements, the Human Resource Managers of each of the business units (26 in all) are being required to confirm in writing that any future retrenchment exercises as a result of changes in Old Mutual's operations will comply with the procedures in the Industrial Relations Handbook. It should be pointed out that Old Mutual's severance package is more than double the statutory minimum.

The organisation has a zero tolerance approach to racism, unfair discrimination and the infringement of the human rights of others. To ensure this approach works, and is sustainable, each business unit has a full-time Human Resource manager, and a Compliance Officer to ensure that we observe both the "spirit" and the letter of all the relevant legislation. In addition, staff can approach the employment equity facilitators, the Employment Equity Forums, and their managers for resolution of issues.

Old Mutual staff enjoys freedom of association.

In this regard, as at the end of December 2004, 44.7% of staff was unionised, among five different unions. The largest union, the Old Mutual Representative Employee Body (OMREB) - a member of the Fedusa Trade Union Federation - has 5 269 members across the country, and enjoys a collective agreement with Old Mutual through which terms and conditions of employment are determined for its members. The other four unions have varying degrees of organisational rights, dependent on their membership numbers.

Being a financial services company Old Mutual employs white-collar workers with a minimum of a South African matriculation certificate. Most recruits have University/Technikon qualifications and some experience. Old Mutual's Human Resources computerised systems contain an automatic check on the age of a potential appointee and would reject an applicant younger than 16 years.

We do not, in any way, use forced or compulsory labour. Our minimum wages are considerably higher than those laid down by the relevant acts. All employees voluntarily apply for a position, are subject to a formal recruitment process including competency-based interviews, and accept employment by signing a letter of appointment that stipulates remuneration terms and conditions of employment. In their Contracts of Employment all staff agree to a notice period, generally 30 days or one calendar month. Any disputes are resolved through the business unit managers, their Human Resource Managers, or the formal grievance process.

The 2005 Industrial Relations Handbook contains detailed procedures to address misconduct, incapacity, poor performance and other issues. In addition it has detailed review and appeal procedures to ensure discipline and dismissal are both procedurally sound and fair when they occur. Where necessary, our staff members have the services of their union representatives to assist them to resolve their issues.

The following table reflects the summary of employment disputes involving Old Mutual and staff in the Council for Conciliation, Arbitration and Mediation (CCMA) at end December 2004:

	2004	2003	2002
Number of CCMA cases	60	35	85
Number won by Old Mutual	41	11	58
Number lost by Old Mutual	1	4	3
Number of cases outstanding	18	20	24

While we are able to provide evidence of the empowerment practices of our suppliers, we do not currently consider other human rights issues in our procurement decisions. This is because we believe that current legislation and enforcement by the relevant governmental departments and law enforcement agencies is sufficient to ensure that South African companies cannot remain undetected and in business, if they commit human rights transgressions.

Nevertheless, we have not been involved in, or fallen foul of any anti-trust or monopoly regulations involving our supply chain.