Compensation and other Social Protection Benefits for Workers and Ex-Workers in the Mining Sector
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1 Compensation and other Social Protection Benefits for Workers and Ex-Workers in the Mining Sector 1
2 Background The mining sector in South Africa is an integral part of the Southern African economy. It employs about workers and has a legacy of about 2 million ex-mine workers - many of whom are migrant workers from within and outside South Africa. The sector also contributes to the economy of the region through the remittances of migrant workers. Historically there has been a fragmented response to services for mine workers and ex-mineworkers in Southern Africa at multiple levels across government departments, across borders and across the sector. The South African government through the leadership of the Deputy President of South Africa acknowledges the importance of the mining industry for the economy, for job creation and for social and economic development. Alongside this re-positioning of the sector, the Deputy President is also leading an initiative on improved service delivery to current and ex-mineworkers with respect to health, social and rehabilitation services as well as access to compensation and other social protection benefits through a One Stop service delivery framework. The One Stop service delivery framework provides for the following: 1. Setting up a comprehensive database of current and ex-mineworkers; 2. Mapping where workers and ex-workers are; mapping where the mines are and mapping current services; 3. Delivery of health, social and rehabilitation services; 4. Access to compensation services; 5. Access to social protection benefits such as Unemployment Insurance, Provident and Pension Funds This initiative is supported by various government departments, employer organisations, unions, development partners, NGOs and ex-mineworker associations. This booklet outlines the services, compensation and social protection benefits available to current and ex-mineworkers. It is not exhaustive and will continue to be updated, however it provides an overview of most of the services, protections and benefits available to mineworkers and exmineworkers. Preparing and sharing this document serves as part of the South African government s process to improve the coordination and delivery of services while at the same time addressing legacy challenges that continue to hamper the provision of compensation and other social protection benefits. March 2014 Johannesburg, South Africa 2
3 Contents Background... 2 Services provided by the Department of Labour... 4 Compensation Fund... 4 Rand Mutual Assurance... 5 Unemployment Insurance Fund... 6 Services provided by the Department of Health... 7 MBOD and CCOD... 7 Services provided by the Chamber of Mines of South Africa... 8 Services provided by the Sentinel Retirement Fund
4 Services provided by the Department of Labour The Department of Labour provides Compensation and Unemployment Insurance Benefits through agencies such as the Compensation Fund and the Unemployment Insurance Fund and through licensing the independent Rand Mutual Assurance (RMA) and Federated Employers Mutual Association (FEMA) to provide compensation benefits. Compensation Fund The Compensation Fund administers the Compensation for Occupational Injuries and Diseases Act (COIDA), Act No. 130 of 1993). Under COIDA the Department of Labour and compensates employees for occupational injuries and diseases. Monthly pensions until death; Lump sum payments; Recovery pay not exceeding 24 months; Medical expenses not exceeding 24 months; Assistive devices and chronic medication; Rehabilitation, death and burial expenses; All employees of employers who are registered with the COIDA Compensation Commissioner In South Africa: o Visit any Department of Labour labour centre and or provincial offices in the country Outside South Africa: o Visit the different Consulates of the Southern Africa Development Community (SADC) for assistance in making contact with the Compensation Fund. Note, however, that the Compensation Fund compensates employees and beneficiaries directly and not through the Consulate. 4
5 Rand Mutual Assurance Rand Mutual Assurance (RMA) is licensed by the Department of Labour to provide compensation to employees for disablement (caused by occupational injuries) or for disease (sustained or contracted in the course of employment), or for death resulting from such injuries or diseases in terms of section 30 of the Compensation for Occupational Injuries and Diseases Act (COIDA). Days off up to 75% of earnings (RMA pay full earnings) subject to earnings cap whilst recovering up to 2 years; Medical expenses either up to Maximum Medical Improvement (MMI) or 2 years; Compensation for Permanent Disablement if there is an impairment after MMI; o Lump sum if permanent disability is assessed 30%; o Pension if permanent disability is assessed 31%; Ongoing medical expenses if further treatment is going to improve disablement for reported injury/disease; Fatal Pension comprising of monthly pension, once-off lump sum for widows and funeral expenses; Constant Attendance Allowance (CAA) for pensioners assessed at 100% permanent disability and therefore incapable of performing daily activities; RMA pays a family allowance to pensioners assessed at 100% permanent disability and who has a spouse/spouses and more than one child under the age of 18, at the time of the accident. Any worker that sustains either a work related accident or occupational disease as per schedule 3 of the Act. An injury or disease which was reported by the employee or other person on behalf of the employee to the employer, and has to be reported to RMA by the employer within prescribed time line for liability assessment and acceptance. If liability is accepted the claimant may receive at minimum benefit entitlements prescribed by COIDA depending on the severity of the injury or disease. The point of entry is through the employer for new claims. In South Africa: RMA has offices in all active mining regions across South Africa. These include: Carletonville, Emalahleni, Johannesburg, Klerksdorp, Kimberley, Rustenburg and Welkom. There is also a satellite office in Umthatha, Eastern Cape. Outside South Africa: RMA has satellite offices in former high recruiting areas for the mining industry at Maseru in Lesotho and Xai-Xai in Mozambique. RMA website: RMA Contact centre:
6 Unemployment Insurance Fund Unemployment Insurance Act, Act. No. 30 of 1966 (For old claims) as well as The Unemployment Insurance Act, Act No. 63 of Unemployment Benefits Illness Benefits Adoption/Maternity Benefits Dependants Benefits All Employees who qualify as contributors in terms of the Provision of both Acts, with the following exclusions Exclusions in terms of the terms of the Unemployment Insurance (Act No.30 of 1966): Workers earning above the applicable threshold; Workers who only earn commission; Workers employed by an employer for less than one full working day or less than eight hours whichever is less in any one calendar week; Foreign workers on contract; Exclusions in terms of Unemployment Insurance (Act No. 63 of 2001): Workers working less than 24 hours a month for an employer; Learners; Foreign workers on contract; Workers who only earn commission; In South Africa: o Visit any Department of Labour Labour Centre or Provincial office in the country Contact Person: Ditoro Makgato Telephone: Fax: [email protected] Website: 6
7 Services provided by the Department of Health The Department of Health provides medical examinations and compensation as well as reviews claims for compensation from current and former mineworkers through the Medical Bureau for Occupational Diseases (MBOD) and the Compensation Commissioner for Occupational Diseases (CCOD). MBOD and CCOD The Occupational Diseases in Mines and Works (ODIMWA), Act No. 78 of 1973: Provision of benefit medical examinations (BME) for current and ex-mineworkers in controlled mines and works for compensable heart and lung diseases Assessment of post mortem findings on heart and lungs in deceased miners and exmineworkers for compensable heart and lung diseases Payment of compensation to eligible miners and ex-mineworkers or their beneficiaries Record of service in a controlled mine or works In South Africa: o A Benefit Medical Examination has to be performed at any of the following: At the MBOD (based in Braamfontein, Johannesburg) In a government hospital; or At a Service Provider contracted by the Department of Health. Outside South Africa: o A few SADC countries provide for Benefit Medical Examinations at their government hospitals (e.g. Botswana and Lesotho). Alternatively the claimant is directed to the nearest South African government hospital that is providing the service. Contact Person: Ms Doreen Leseyane Telephone: Fax: [email protected] 7
8 Services provided by the Chamber of Mines of South Africa The South African Chamber of Mines provides services to ex-miners through the Mines 1970 Provident Fund and the Mines 1970 Unclaimed Benefits Preservation Pension Fund. The Pension Funds Act, Act No. 24 of 1956, and through the Financial Services Board Act, Act No. 97 of Administration of Unclaimed Benefits Benefits due to qualifying lapsed members BOTH from within and outside of South Africa: o Alexander Forbes Help Desk o Telephone Number: [+27] Contact Person: AH Smith (Principal Officer) Telephone: [+27] Fax: [+27] [email protected] 8
9 Services provided by the Sentinel Retirement Fund The Pension Funds Act, Act No. 24 of 1956, and the Income Tax Act, Act No. 58 of Retirement, disability and withdrawal benefits; Death benefits to beneficiaries upon death of members and pensioners; Unclaimed benefits; Benefits due to qualifying members and beneficiaries BOTH from within and outside of South Africa: Sentinel House 1 Sunnyside Drive Sunnyside Park, Parktown 2193 Client Service Centre : Carletonville S Buys Office Park, Shop no. 10 Corner Kaolin & Radium Streets Client Service Centre : Klerksdorp 54 Buffeldoring Street, Wilkoppies Client Service Centre : Welkom Shop 24, The Strip, 314 Stateway Client Service Centre : Witbank WCMAS Building Corner OR Tambo and Susanna streets Emalahleni (Witbank) [email protected] [+27] [+27] [email protected] [+27] /9 [+27] [email protected] [+27] [+27] [email protected] [+27] /6 [+27] [email protected] [+27] [+27] Contact Person: Madula Mananye (Principal Officer) Telephone: [+27] Fax: [+27] [email protected] Website: 9
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