LABOUR RELATIONS

AEL

2009 was a challenging year for AEL from a labour relations perspective. A variety of disputes arose, many of which were associated with the implementation of continuous shifts, which is an absolute necessity for operating sophisticated automated plant and equipment.

These disputes and concomitant industrial action and counter-action resulted in the need to fundamentally reconsider the company's relationships with recognised unions as the consultative structures in which such interactions are conducted. As a consequence, a higher level engagement between management and the unions, in the form of a workshop, is planned for the first quarter of 2010, the focus of which will be the implications of the automation of manufacturing operations and the restructuring of labour and management relationships.

CHEMSERVE

Substantive wage negotiations were conducted under the auspices of the National Bargaining Council for the Chemical Industry. A settlement agreement was reached between the employers and trade unions after a deadlock was declared resulting in two weeks of industrial action.

As a result of the poor economic climate that characterised 2009, Duco Speciality Coatings initiated an unavoidable restructuring process which led to the closure of the Struandale factory site, in Port Elizabeth, and the loss of 126 jobs.

HEARTLAND

Sound industrial relations practices resulted in a reduction in employee disciplinary issues and disputes in 2009. Employer/employee interaction remained stable, a characteristic of a mature relationship between the relevant parties.

Ongoing consultations on potential areas of conflict are dealt with in terms of a joint problem-solving model at all levels within the business.

SANS FIBRES (SANS)

As reported in 2008, SANS engaged in a process of consultations with the Southern African Clothing and Textile Workers Union (SACTWU), in terms of the Labour Relations Act, regarding the contemplated closure of the company's operations at Bellville in the Western Cape. These consultations were conducted under the auspices of, and facilitated by, a commissioner appointed by the Council for Conciliation, Mediation and Arbitration. The result of this process was mutual agreement with regard to the inevitability of the facility's closure as well as the process to be followed to minimise the adverse effects of retrenchments.

SANS made a variety of support services available to those affected, including workshops on coping with retrenchments, counselling, assistance in preparing CVs and improving interview skills, financial advice and the like. In addition, AECI made funds available for re-skilling affected employees who met the agreed criteria.

As agreed with the relevant union, operations at SANS ceased as planned on 31 March 2009.