The intent of this paper is to analyze the affects that HIV/AIDS can hold on the excavation industry in South Africa. I aim to look at how does HIV/AIDS affects to the excavation industry. My end is to demo that HIV/AIDS has its direct and indirect impact on the concern and that it plays a major function in the concern environment today.
I looked at single mine companies, one that I focussed on throughout the paper was Anglo American, I besides looked at the bigger image and researched on how it would impact the state and the excavation industry. The first stage of this undertaking was to look at how HIV/AIDS affects the labour supply, and how it affects your profitableness, than I moved onto more indirect affect which were what other impacts it has and so eventually its impact on the economic system.
I found out that most of South Africa ‘s mine workers are HIV positive and this has a negative consequence on the industry as they experience high outgo due to supplying wellness attention, benefits and preparation and that the excavation industry is sing a diminution in gross as efficiency and productiveness is reduced due to workers being sick and weak. This paper shows that the instruction and support of the workers is critical to forestall the HIV/AIDS rate from increasing and endangering their work force. If companies have strong policies in topographic point they could decrease the impact HIV/AIDS has on their company.
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For a company to be successful they must show a competitory advantage, for African companies, most of them already have a competitory advantage as there is a profuse supply of cheap, and productive labor. Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome most normally know to us as HIV and AIDS are one of the chief causes of deceases in Africa. The per centum of septic people has steadily increased throughout the old ages and this infection rate does non look to be halting. The infection rate of South Africans is about 28 % of the people that go into the clinics[ 1 ]. This statistic is non including the whole population so the entire per centum of South Africans is unknown to us.
I decided to concentrate on the Mining Industry in South Africa has it has late had a limelight shone upon it from holding a high HIV work force, to unemployed workers traveling into abandoned mines in the hope of bring forthing an income for their household. There is an copiousness of mining companies in South Africa, it holds about 90 % of the Pt metals of the Earth, 80 % of the Manganese 73 % of the Chrome, 45 % of the Vanadium, and 41 % of the Earth ‘s Gold.[ 2 ]Miners are normally migratory workers who are off from their household. They are housed in same-sex inns. These mineworkers are frequently visit cocottes to get away from their tough occupations. These visits to cocottes make the mine workers vulnerable to HIV.
I shall be concentrating for the intent of this essay chiefly the consequence of the fiscal, economical and motivational consequence HIV has on the workplace. By merely concentrating on one industry it helps me narrow done the research country and hence I can concentrate much more profoundly into each of the factors I shall be researching in this essay.
I will react to my research inquiry “ How does HIV/AIDS Affect the Mining Industry? ” by looking at the specific constituents that may be affected and see how these constituents are affected or how some constituents are non affected at all.
Why I choose this subject
I choose this subject as it is something that is relevant to me. I am populating in South Africa and am confronted every twenty-four hours with new articles, new figures about HIV/AIDS. This interested me and I began to believe about what impact this has to a concern, I was interested to cognize more, know the deeper effects and benefits that this HIV epidemic has on and concern, on an industry. I so decided that taking the excavation industry would be great, there is this high spot on the excavation industry and it is besides an industry that requires you to hold a strong work force that can take the terrible conditions. With these two really outstanding things in South Africa, I can up with my research inquiry.
How is the Labour Supply Affected
For a concern to be successful they would necessitate a changeless supply of trained workers that are capable to make the occupation to the best of their ability. Companies that require a work force that is to the full trained, they seem HIV as a job. It requires a immense sum of clip to develop a new employee and the costs to the company are great to so this.
The highest prevalence of HIV is for the age group of 30-34 old ages of age, with the age groups 25-29 and 35-39 non excessively far behind[ 3 ]. These age groups are the groups that are come ining the work force or are already working. This is non a good thing for a concern as this suggests that their work force and their future supply of work force are most likely traveling to be affected by HIV.
The excavation sector is really labour intensifier, mechanization is hard in mining which consequences in mining holding to hold a large labor force. Most mine workers tend to be immature males, which is the chief age class that has been affected by HIV. These immature males have to prosecute in physically demanding and unsafe work for up to 12 hours a twenty-four hours in hot, dust-covered conditions and are interruptions are non really frequent, theses workers need to be physically capable and up to full wellness to get by with this. Workers populating with HIV may happen these on the job conditions striving and they physically do non hold the strength to get by in these hard conditions. Mines require a work force of semi-skilled workers and besides necessitate highly-skilled workers such as geologists and applied scientists, of one of these extremely skilled workers were to be affected or be lost to the unwellness, their going could interrupt operations greatly until a replacing is found for them. HIV besides has an impact on the labour force of excavation by holding an addition in mortality, for illustration about 60 % of the excavation work force is aged between 30 and 44 old ages ; in 15 old ages this is predicted to fall to 10 %[ 4 ]. This shows that the labour force for excavation is being affected due to deceases related to AIDS.
How Profitability is Affected
HIV can impact a company is perchance to ways ; to either increase its outgos or it can diminish grosss. In the early phases of the HIV a company may see the worker holding an unexplained addition in absenteeism and the said worker and his or her household may hold and increase in their wellness attention costs. Some companies may take to reimburse the worker for these costs or pay for a per centum of them. The productiveness of the worker may diminish particularly when infections that are good known to consequence HIV positive people start to assail the organic structure such as TB.
With that said, the companies may detect an addition in diseases within their work force as the contagious diseases are spread between the work force. This would take to workers holding to take off more ill yearss and an addition in wellness attention costs. Employees that have been identified as HIV positive may be kept on working in the same place, moved to a less demanding place or might even be fired, this all depends on the company ‘s policy to HIV positive workers.
A loss of gross is due to workers holding to take leave due to illness or holding to take leave due to household members being HIV positive or necessitating to go to a funeral. For illustration in north cardinal Namibia it has been estimated that extension staff spend at least 10 per centum of their clip go toing funerals.[ 5 ]Productivity is besides affected as workers in hapless wellness are no longer able to bring forth at the same degrees to when they were good wellness. Approximately 45 % of South Africa ‘s miners are HIV positive ; this has already decreased productiveness in mines by 15 % .[ 6 ]This means that in the old ages to come mines would hold to use more workers, to maintain up with the productiveness degree that they normally operate at to maintain up their end product degrees.
The extent to employees populating with HIV being kept on at a company depends on the type of work they do and the companies policy that are in topographic point sing this. For some companies the authorities or trade brotherhoods require that they supply profit to HIV positive workers but some companies are able to non make this, and therefore the authorities of the workers household are made to supply the benefits.
There are a figure of ways in which a company ‘s outgos may increase due to holding employees enduring from HIV. They could see an addition in wellness attention costs, which indicates that the company is being affected by HIV epidemic. Companies that have invested in private wellness insurance policies could hold an addition in their premiums. Companies that have in-house wellness services such as clinics may hold an addition in the demand for their services. Harmonizing to the Chairman of Gold Fields, Christopher Thompson the HIV epidemic will do the production of gold to increase by R100 per ounce in the following six old ages.[ 7 ]Anglo American has made anti-retroviral therapy available to all of their employees that are HIV positive at the company ‘s disbursal. This determination could greatly increase costs to the company and impact the profitableness of the company.
As more workers die of AIDS, concerns can hold an addition in costs in footings of decease benefits. Larger companies frequently offer decease benefits to the household of the asleep worker. With the addition in HIV related deceases companies have increased a large addition in costs and hold had to happen ways decrease the impact of these benefit costs. Some companies have lessened their fiscal part to the funeral, and some have required that funerals are merely to take topographic point on the weekend, to minimise the sum of clip taken away of work. With such a high infection rate in mine workers together with the related incidence of unwellness and decease agencies that mines free between 5 % and 10 % of their work force each twelvemonth.[ 8 ]
The cost of enrolling and developing new employees may be high. The cost of replacing an unskilled worker is normally really same, and these types of workers can normally be replaced within a hebdomad and the cost of replacing them is really little, particularly when the country the company is located experiences a really high unemployment rate. But many companies require skilled experient employees, these are much harder to enroll. Most of Africa has a deficit of skilled labor which makes enrolling a suited an appropriate campaigner really hard and places can be left unfilled for hebdomads or even months. The preparation of the unskilled workers frequently does n’t be the company much, can be done in-house and merely takes a twosome of yearss. However preparation of the skilled workers such as manager of funding, selling is of a much higher cost to the company, they normally get trained outside of the company, and many go overseas for the preparation. One company says they face costs of $ 100A 000 to enroll and develop a replacing for the pull offing manager function.[ 9 ]It is estimated that in South Africa that every 100 natural deceases that occur in a twelvemonth 88 are extremely skilled workers and 176 skilled workers will decease of AIDS in the same twelvemonth, it is besides estimated that in the same twelvemonth 308 semi-skilled and unskilled workers will decease of AIDS.[ 10 ]
What Other Impacts Occur
Another impact that HIV/AIDS has on a company is that is can take down the morale of its employees, employees may experience de-motivated and non willing to work every bit expeditiously. They see their co-workers and friends at work dice before their eyes and they shortly start to hold a negative, defeatist attitude towards their work as they see themselves in the same place as the asleep 1.
One indirect consequence of all the leave that has been taken by employees is that the healthy workers have to work harder than usual to do up for the people on ill leave. In many companies workers are said to be working excess hours to do up for the clip lost by the ill co-workers, nevertheless these ‘healthy ‘ employees normally do non acquire paid over clip and frequently experience overworked and exhausted. This could so cut down the measure and quality of the concluding merchandise as employees are stressed and de-motivated. The spread of HIV could take to hapless work relationships, they may non experience they are being supported by their company and their co-workers, that there are non plenty attention and bar methods in topographic point. Some workers may demand that employees that have been infected should be dismissed when they learn about their position. There frequently a negative attitude and behavioral responses towards an HIV positive individual when other workers learn the position of that individual.
A manner for directors to turn to the indirect effects HIV has on their company is to bring forth a workplace policy that addresses the demands of an HIV positive individual ; this policy promotes healthy relationships between all workers and degrees of the hierarchy. Anglo American is one of the excavation companies that is taking in the battle against HIV/AIDS, they have community outreach and strong policies to travel on, Cynthia Carroll, Chief Executive of Anglo American said: “ Anglo American ‘s purpose, as the Employer and Partner of Choice, is to efficaciously pull off the impact of HIV/AIDS on our employees and to do a positive part towards understating the societal, economic and developmental effects of this epidemic. Anglo American ‘s response reaches beyond its work force, through community outreach HIV/AIDS programmes, to distribute the application of good pattern in a manner which helps to beef up community wellness systems. ”[ 11 ]By holding strong purposes like this the company is able to turn to some of the indirect effects that HIV has on their company and helps beef up the lesson of the workers as they feel like they are being taken attention of and that they are an assets to the company. The Anglo American policy towards HIV/AIDS focuses on the some chief things such as:
Confidentiality- the employee who has HIV has the right to confidentiality and privateness. They are under no duty to state direction about their HIV position.
Non- Discrimination- Anglo American does non digest unjust favoritism towards a individual with HIV and take all the stairss to esteem their self-respect and guarantee human rights. All employees that are portion of the company, who know ( or think they know ) a worker ‘s HIV position are told of the demands and duties of unwraping this information to a 3rd party, and the effects that could go on if they were to make this.
Gender equality- Anglo American aims towards holding equal gender dealingss. They recognise that the authorization of adult females is critical to successfully forestall the spread of HIV infection and enable adult females to get by with HIV/AIDS.
Social Dialogue- Anglo American aims to construct partnerships and confederations with their stakeholders so that they can develop a common vision and shared scheme with them.
This policy they have is invariably updated with the of all time altering environment that we live in. This strong policy as said before strengthens the employee dealingss as the company is seen to care for their employees and attentions about their well being.
Another consequence HIV/AIDS can hold on a concern is that it can do a diminution in some merchandises. Merchandises known as ‘luxury ‘ merchandises could no longer be bought every bit much as antecedently, this is because with the employee acquiring sicker with HIV they no longer convey in that much income as antecedently, they are besides sing an addition in their medical costs. This leaves them with no holding adequate money to purchase those incidental goods. This could non needfully impact the excavation industry, but it does impact their workers and their households. It means that they can no longer purchase as many good as they antecedently could hold. It besides affects the concerns where the mine workers buy their goods from as they are no longer acquiring every bit much concern from them as they would hold before the worker had been infected.
How HIV/AIDS is Affecting South African Economies
HIV/AIDS can non merely impact a company, but it can besides impact the economic system. This could take to people non desiring to put in the state as they are seen to hold a worsening economic system.
The diminution in the economic system impacts two things: investing and trade. The investing is impacted by the uncertainness over the impact of HIV/AIDS causes reluctance from the investor. Investors are non certain how the of all time turning HIV epidemic is traveling to impact the concern and they start to go loath to put as they are non certain if the company will win or non. Another thing is there had been a lessening in the sum and assortment of enterprisers ; people are non traveling out every bit much and get downing their ain company, this means that there is non as many undertakings to be invested in as there is non the assortment and scope that investors want in that state, so they so move to the following state looking for the following best thing to put in. Besides the general economic image is impacting on investing ; some states do non look to be making good and seem ‘unstable ‘ this therefore would non be a wise state to put in as the state could fall at any minute, think Zimbabwe, wholly people who invested in Zimbabwe must ‘ve lost metric tons of money due to the state falling economically. This could impact the excavation industry greatly, if no 1 is willing to put in them so they lose critical funding. Mines are the 1s being hardest hit by the HIV/AIDS epidemic ; investors are able to see this and predict the high labor turnover rate and the overall costs and losingss the company experiences due to this. Investors would so be discouraged to put in the company as the per centum of staff with HIV would merely increase. They would besides see the general economic image of South Africa, and with the recession they could see that overall investment in mines in South Africa as an unwise determination due to all the factors.
The trade in South Africa is impacted by the decreased production due to increased costs. With HIV epidemic turning companies are holding greater costs than they have had in the yesteryear, they have to cover with factors like decease benefits, supplying wellness attention and anti retroviral therapy and the enlisting and preparation of staff, this means that there is non as money available to purchase the natural stuffs or employ as many staff as they have before, which leads to there being a lessening in the production degrees. Another thing that impacts the trade is the lessening in workers with experience in the export markets. Skilled labor is much harder to enroll than unskilled labour places can be left empty for ages. This means that it is hard to happen labor that has experience in export markets due to there being a deficiency of qualified labor. For the excavation industry this means that its trade is being impacted by HIV, they are sing an addition in their costs due to all the factors above and because the work is demanding, they are besides sing a lessening in efficiency which leads to the company non bring forthing every bit much. They besides loose tonss of workers due to the demanding work and frequently have places left unfilled as they can non happen person with the right experience.
There has been much argument on whether or non the HIV/AIDS epidemic would impact the economic system. A Kenyan analysis indicated that the HIV/AIDS epidemic would do a important impact, which predictions that HIV/AIDS would go forth the Kenyan economic system one sixth smaller than it would hold been in the absence of HIV/AIDS.[ 12 ]A South African survey suggest that by the 2010, the degree of GDP ( Gross Domestic Product ) could be lower than 17 per centum due to the HIV/AIDS epidemic while the degree of per capita GDP could be lower than 7 per centum. About half the diminution is due to an addition in the sum authorities is passing on wellness attention to make with HIV/AIDS and one tierce is due to the lower productiveness degrees.[ 13 ]
South African excavation companies have the potency to hold a great competitory advantage against all the other companies around the universe. Businesss need to protect the workers that have non been infected by HIV and educate their work force to guarantee the figure of HIV positive people does non increase much more. For the 1s that have been infected the excavation companies need to utilize the services they have on them and that they support the workers through this hard clip. The companies need to guarantee that the impact of this is every bit less as possible.
As we have seen HIV chiefly affects those that are at the premier on the job age, this means that the companies are greatly affected by this particularly when skilled workers are needed or workers undergo an intensive preparation procedure. Therefore the loss of one of the workers can do a concern to lose some of its competitory border.
The addition in the HIV epidemic has lead companies to see a loss in their profitableness. This is due to an addition in their outgos, such as ill leave, wellness attention, funeral benefits, enrolling and developing new employee and even supplying anti retroviral therapy. Besides their grosss have declined due to a lessening in efficiency and productiveness as workers become sick and weak. Due to mining being such a demanding occupation, this has been one of the chief jobs they have experienced. There have besides been more indirect ways in which the excavation industry has been affected, such as de-motivation, hapless work relationships. This great HIV epidemic may be easy down investors desiring to put new money into the excavation industry. Besides HIV/AIDS is said to be easy down economic growing with is besides turning investors off and restricting the figure of people willing to put in South Africa.
Overall, with still more than half the population non being affected by HIV, there is still a opportunity that we can turn this state of affairs about and decrease the impact of this epidemic to the excavation industry and to our state. With go oning instruction, passing out rubbers mining companies can hopefully restrict the spread of HIV or even cut down it. If they keep turn toing the issue and commit to the cause, we can restrict the affects of HIV/AIDS to the excavation industry.