Barry KistnasamyCompensation Commissioner

26 March 2015

Occupational Health and Workers’ Compensation (ODMWA)

Regional Dialogue: Portability of Social Security Benefits

Slide 1

OverviewContextSome macro issuesCompensation & ServicesWay forward

Slide 2

ContextMultiple policy and legal frameworks covering compensation & other social protection benefitsMigrant / Contract labour / within and cross-borderFragmented or non-existent services for workers / ex-workersInability of claimants to access benefits

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103 year old History…Miners’ Phthisis Act 19 of 1912

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McCulloch J. 2013

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Workers’ CompensationOccupational Diseases in

Mines & Works Act , 1973

Compensation for Occupational Injuries and Diseases Act, 1993

Administration Department of Health -

R2.9bDepartment of Labour; Rand Mutual (RMA) & Federated Employers (FEMA)

R40bCoverage Mine workers for heart& lung

diseases onlyAll workers in formal economy for injuries and diseases except mine workers under ODMWA

Funding Levies on employers (risk-rated through Risk committee) – 246 mines & works; levies cover benefits only

Levies on employers (risk-rated on claims record) – 400 000 employers; levies cover benefits, services & administration

Organisation Office in Johannesburg (Braamfontein) – CCOD, MBOD & NIOH (service delivery)

Offices in Pretoria with some decentralisation through Department of Labour regional offices; Rand Mutual and Federated Employees with some decentralised offices

Mr Thembekile Mankayi versus

AngloGold Ashanti

20112012

Chamber of Mines versus Compensation

Commissioner & Dept of Health

Contestation

Silicosis claims settlement

2013

Cape PLC Asbestos settlement

2003

The Mining Economy20 Trillion Rand sector (net asset value)7.7% of annual GDP DMR 2010

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DMR Database of Mines & Quarries (2010)

Province Coal Diamond Gold Platinum Other Total

Eastern Cape 0 0 0 0 140 140 (8)

Free State 2 2 6 0 40 61 (9)

Gauteng 6 3 25 2 129 167 (5)

Kwazulu-Natal 12 0 1 0 120 133 (7)

Limpopo 3 0 1 12 134 156 (6)

Mpumalanga 85 0 14 0 89 194 (4)

North West 0 199 6 25 97 327 (1)

Northern Cape 0 152 0 0 76 228 (2)

Western Cape 0 20 0 0 177 197 (3)

Total 108 395 53 45 1 002 1 603

246 controlled mines & works

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Migrant Mine WorkersYear RSA Mozambique Lesotho Swaziland % Non-RSA

1920 74 452 77 921 10 439 3 449 57

1940 178 708 74 883 52 044 7 152 49

1960 141 406 101 733 48 824 6 623 62

1980 233 055 39 636 96 308 5 050 44

1995 122 562 55 140 87 935 15 304 58

2000 99 575 57 034 58 224 9 360 57

2010* 152 486 35 782 35 179 5 009 34

* Data from TEBA

Ex-Mine Workers by Country (1984 – 2013)*

Country Gold Platinum Coal Contractors Unknown Total %

South Africa 507 256 115805 37358 231288 31181 922888 74

Lesotho 111281 7933 1519 16204 6358 143295 11

Mozambique 75324 8465 1402 13722 5619 104532 8

Malawi 24392 4076 116 33 237 28854 2

Botswana 20822 3241 1 572 307 24943 2

Swaziland 20406 1572 146 1657 647 24428 2

Other 173 30 31 323 36 593

Total 759654 141122 40573 263799 44385 1249533

10Slide 10 *TEBA data

Ex-Mine Workers by Province (1984 -2013)*

Province Total %Eastern Cape 281553 31North West 168171 18Gauteng 160530 17Free State 112077 12KwaZulu-Natal 92092 10Limpopo 75527 8Mpumalanga 27264 3Northern Cape 4987 1Western Cape 687Total 922888

11Slide 11 *TEBA data

Claimant Journey

12

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2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

0

10

20

30

40

50

60

70

80

GoldAsbestosPlatinum

Perc

enta

geCertifications by Commodity

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Limpopo Mpumalanga Eastern_Cape Northern_Cape Western_Cape Kzn Northwest Gauteng Free_State0

10

20

30

40

50

60

70

80

TB 75%OSB1OSB2TB1TB2

Province

Num

ber o

f cla

iman

ts

Claims by Province

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Mozambique Lesotho Botswana Swaziland South Africa 0

20

40

60

80

100

120

140

160

180

TB75%OSB1OSB2TB1TB2

Country

Num

ber o

f cla

iman

ts

Claims by Country

Country of ClaimantCOUNTRY No. %

N/A 84436 41%SOUTH AFRICA 78492 38%LESOTHO 29567 14%MOZAMBIQUE 8416 4%BOTSWANA 3316 2%SWAZILAND 2966 1%MALAWI 549 TANZANIA 72 BRITAIN 71 SCOTLAND 65 ZIMBABWE 53 ITALY 38 POLAND 19 ENGLAND 15 AUSTRIA 12 BELGIUM 8 GERMANY 4 ZAMBIA 1 Total 208100

Slide 16

Compensable DiseasesDISEASE No. %

TB 115825 56%Silicosis 35788 17%N/A 27103 13%Asbestos 13966 7%Pneumoconiosis 7591 4%Obstructive Airways Disease 6110 3%Coal Workers Pneumoconiosis 673 Allergy Complex Salts Platinum 292 Carcinoma 291 TUBERCULOSIS + SILICOSIS + OAD 234 Progressive Systemic Sclerosis 151 Mixed Dust Diseases 75 Total 208099

Slide 17

Gender of Claimants

GENDER No. %

FEMALE 5173 2%

MALE 168929 81%

N/A 33998 16%

NOT PRESENT 1

Total 208102

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Certificate of Compensation

CERTIFICATE OF COMPENSATION No. %

NOT PRESENT 20993 11%

PRESENT 2

PRESENT - ID CORRECT 52915 27%

PRESENT - ID DIFFERENT 715 0.36%

PRESENT - ID NOT CONFIRMED 123440 62%

Total 198065

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Payment Status

PAYMENT STATUS No. %

NOT PAID 103465 50%

PAID 104633 50%

Total 208098

PROOF OF PAYMENT No. %NOT PRESENT 104094 50%PRESENT 104004 50%Total 208098

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Record of Service / Fingerprints

RECORD OF SERVICE No. %

NO 149736 72%YES 58362 28%Total 208098

TEBA FINGERPRINTS No. %NO 150934 73%YES 57164 27%Total 208098

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Going Forward

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Social Protection Reforms

Policy & legislative changes - alignment of compensation and other benefits towards an enhanced social protection systemReorganisation of Compensation SystemOne Stop Service Delivery

Slide 24

Reform of MBOD/CCODReform legislation Preparation for valuation / auditOrganogram / Recruit staff Decentralise servicesQuantify the numbers of workersSustainability of the FundWork with stakeholders

MBOD- 700k files

CCOD200k

Mines ? 500k

??? Ex-workers

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InterventionsDatabase

Current workersEx-workersMappingCurrent & ex-workersMines; ther sectors over timeServicesSurveillanceTBSilicosis

Infrastructure

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Mapping

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One – Stop Service Framework

Health ServicesMedical examinationsRehabilitation assessment & servicesPost mortems

Health PromotionSocial ServicesSocial DevelopmentCounsellingBursaries

Financial ServicesCompensationUIF, pension, provident and other funds (tracking & tracing)

Occupational Diseases

• Not diagnosed / mis diagnosed

• Lack of knowledge• Masked by other diseases• Long lag time• Need special investigations• Difficult to find cause

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One Stop Service Sites

• Eastern Cape - Mthatha (NMAH)*• Gauteng - Carletonville (Hospital)*• Northern Cape – Kuruman (2015/16) • Limpopo – Burgersfort (2015/16)• Others to follow including Mobile

units• Neighbouring countries (2015/16)

* Opened April 2014

Slide 31

One Stop Facilities

Working Together• Leadership of Minister of Health & Deputy Minister of

Mineral Resources; SADC / Ministers of Health/Labour• Distressed mining communities (Presidency)• Development partners & NGOs• Chamber of Mines, Trade Unions & Ex-mineworker

associations• Developmental agenda

• Rural development / labour sending areas• Build on government processes

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Thank You

Slide 33

Ms Doreen LeseyaneManager: Claims (MBOD/CCOD)

leseyd@health.gov.za+27 (0)11-356 5600

Dr Barry KistnasamyCompensation Commissioner

Department of Health, South Africa

kistnb@health.gov.zabarry@fnbconnect.co.za

+27(0)11-356 5602 / +27(0)828067210