Page 38 - 100 years of Anglo American

hen an employee
comes to work, they
come as a whole
person. They are a
mother, a father, a
‘Wbrother, a sister –
they have other responsibilities and worries,”
says Lorato Mogaki, executive head of HR at
Anglo American Platinum.
This understanding led to the formation of
the Nkululeko employee indebtedness
programme. Due to various socioeconomic
stresses, including a high financial
dependency ratio that sees workers support
up to 10 family members, the company found
that employees across all income levels were
showing high levels of indebtedness.
“We would see employees earning R10 000
a month, but only taking home R100 because Lorato Mogaki is the executive head of HR at Anglo American Platinum
of garnishee orders,” says Mogaki.
When the company hired Summit From debt-laden to
Financial Partners to review the finances of
employees, it found that credit lenders were
charging interest rates as high as 60% and
were processing illegal garnishee orders.
Since cleaning out the irregular orders, the DEBT FREE
number of garnishees reduced from 5 877 to
just 230, saving employees R1.5 million.
“We now take an active interest in
understanding the terms of the garnishees An indebtedness programme helps workers keep
issued, and only allow them for maintenance money in their pockets, writes Maya Fisher-French
orders,” says Mogaki.
However, illegal garnishees are just a
symptom of a much wider South African 60%
problem – people have too much debt. The TAKE CONTROL
company is hoping that, by offering financial THE INTEREST RATES
education and ongoing support for its SOME LENDERS WERE of your wallet
employees, it will have a meaningful effect CHARGING MINE WORKERS
on their lives and the way they manage
money. Since its inception three years ago, When 32-year-old truck operator Paul Mahlaela
26 442 employees have been through the 5 877 found out he was going to become a father, he
Nkululeko programme and 2 484 have signed decided it was time to take control of the debt
up for debt relief solutions or had their THE NUMBER OF GARNISHEE that was leaving him impoverished.
garnishees audited, which has resulted in ORDERS ANGLO AMERICAN With debt repayments consuming 80% of his
R38 million saved on reduced interest rates. PLATINUM CHALLENGED ON take-home pay, there was barely enough money
“It was a challenge to get people to come BEHALF OF WORKERS to make ends meet, let alone provide for a child.
forward – we did a lot of work to “I needed to find a way to pay off my debts
destigmatise the programme and to let 26 442 so that I could have enough money each month
people know that it is not only lower income to provide for a newborn,” says Paul about his
earners who have financial difficulties, it is THE NUMBER OF EMPLOYEES decision to join the Nkululeko programme.
all the way to senior level.” WHO HAVE BEEN THROUGH Paul had previously tried debt consolidation,
Employees who have been through the THE NKULULEKO FINANCIAL but found that he just got further into debt. He
programme become its greatest ambassadors WELLNESS PROGRAMME admits that it was a tough decision to commit
as their peers can see how it has changed to debt counselling because he had to give up
their lives. Awareness about the programme access to credit during the estimated five years
has been extended to family members. 2 484 of debt review, yet it has changed his life more
“We often find that it is the employee’s than he expected.
family that encourages them to undergo the THE NUMBER OF EMPLOYEES By negotiating with his creditors, Nkululeko
programme as it benefits the whole family. WHO HAVE SIGNED UP FOR reduced his monthly debt repayments, leaving
Suddenly, there is money available that was DEBT RELIEF OR HAD THEIR him with 50% of his salary as take-home pay.
not there before”. GARNISHEES AUDITED “Nkululeko deducts the money from my
Mogaki says that financial stress can lead salary so I know the money in my bank
to physical endangerment. account is actually mine to spend,” says Paul.
“When you are working on a mine, you R38m “We are so happy not to access debt. It is a
have to be alert and present. If you are THE AMOUNT THOSE freedom not to owe anything to anyone. It was
worried about your finances and being a bold move and it meant taking responsibility.
plagued by loan sharks, it is difficult to WORKERS SAVED IN It also helps that I have a partner who supports
remain focused, which is dangerous.” REDUCED INTEREST RATES me in this decision because sometimes we have
However, Mogaki says the challenge now is to do without some luxuries, but we are both
keeping people from going back into debt. much happier not living on credit.”
38 ANGLO AMERICAN 100 YEARS