NATIONAL ASSEMBLY

PARLIAMENTARY QUESTION NO: 3340 (NW4173E)

Mr P J Groenewald (FF Plus) to ask the Minister of Labour:†

(1) With reference to the reply to question 1237 on 28 April 2010, what progress has been made with the investigation into the Aurora Mining Company's failure to pay over unemployment insurance contributions;

(2) whether the department has investigated the company's failure to pay salaries to workers; if not, why not; if so, what was the result of the investigation;

(3) whether she will make a statement on the matter?       NW4173E

MINISTER OF LABOUR RESPONSE:

(1) Yes, the Department did undertake investigations at Grootvlei Springs Mine in terms of Section 69 of the Basic Conditions of Employment Act (BCEA) of 1997 after receiving a complaint of unpaid wages by Aurora Mining Company employees.  Managerial staff earning above the threshold were excluded in terms of Section 70 of the BCEA. 

(2) The investigation revealed the following:

2.1. Aurora was registered with the Department of Labour's Unemployment Insurance Fund on 09 April 2010, registration number 1978806.  Details of 1589 workers were obtained.

2.2. The Springs Labour Centre reported AURORA to the local SARS office for further investigation on tax related matters.

2.3. A compliance order was issued based on the Aurora Grootvlei Mine VIP Payroll obtained on 27 August 2010 which indicated that a total of 1307 workers were owed bonus for December 2009 and salaries for March, April, May, June, and July 2010.  The breakdown is as follows:

• Dec'09, 40% outstanding  Bonus amounts to  R316,520.60 for 2180 employees
• Mar'10, 100% owed in Salaries & Wages amounts to R 5,456,716.45 for 2413 employees
• Apr'10, 100% owed in Wages &  Salaries amounts to R1,416,273.84 for 105 employees
• May'10, 61% owed in Wages & Salaries amounts to R 809,350.08 for 101 employees
• Jun'10, 100% owed in  Wages & Salaries amounts to R1,413,597.72 for 102 employees
• Jul'10, 100% owed in Wages & Salaries amounts to R1,291,852.49  for 139 employees

2.4.The company made payments as follows:

100% of August salaries to Care and Maintenance employees as well as 68% of July salaries. 

2.5. On 07 October 2010, the Department of Labour served an amended compliance order on the employer to pay outstanding salaries within 7 days as follows:

• R204,112.50 for Aug 2010 as the employer paid R193,743.40. (Short payment R 10,369.10)
• R300 435.30 for July 2010 as the employer paid R122,601.20(Short payment R177834.10)
• R456,994.04 for June 2010 as the employer paid R55,994.15 (Short payment R400,999.89)
• R196,461.80 for May 2010 as the employer paid R51,207.34 (Short payment R145,254.46)
• December 2009 Bonus, March and April 2010 wages as nothing was paid towards the claims of these months.

2.6. On the 1^st November 2010, the compliance order was made an order of court in the Labour Court of South Africa, case no 5472,5619/10RA wherein Aurora agreed to effect all outstanding payments owing to employees on 30^th November 2010.

2.7. Layoff letters will be issued to non active employees to enable them to apply for employment insurance benefit.

2.8. Foreign nationals wishing to go back home voluntarily will be provided with free transport.

2.9. Employees residing at the employers accommodation will be given a period of one month notice to vacate such accommodation.

2.10. Care and maintenance workers will be paid regularly.

2.11. The balance of outstanding wages will be transferred to the Department of Labour to assist in tracing and paying employees that are not traceable.

3. No

Issued by Parliament, December 6 2010

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