1. Compensation integration: odmwa & coida
Presented by: Prof. Paul Benjamin
Mining OHS Summit 18 November 2016

2. Core recommendation
the compensation of employees for compensable occupational lung diseases contracted in controlled mines and controlled works should be transferred from ODMWA to COIDA.
former employees of “controlled” mines and works to remain under ODMWA.
Technical Tasks Teams did not have access to most recent Actuarial Report on the operation of the ODMWA Funds. This information is required to both develop detailed models for the implementation of the transfer to COIDA and to examine its socio- economic implications.

3. Process of Integration of Compensation Systems
An inclusive process towards the integration of compensation systems over the last eighteen months has involved trade unions, employer groups, government departments and social partners in the mines and works sector through meetings, workshops and a summit.
A steering committee under the leadership of the Deputy Minister of Mineral Resources (supported by the Deputy Ministers of Health and Labour), a secretariat and task teams covering Policy and Legislation; Organisation, Management and Structure; Benefit Package and Services; Financing; and Communication
 provided inputs on the various aspects for developing an enhanced system of services and compensation for workers and ex-workers in controlled mines and works.

4. COIDA / ODMWA: COMPARISON : PRINCIPLE ISSUES
Item
ISSUE
COIDA
ODMWA
COMMENT 1 
Responsible Government Department
Department of Labour (Public Service)
Department of Health (Public Service)
Possible location outside of public service – models raised 2 
Administered by
Compensation Commissioner and Mutual Associations (RMA) under licence in terms of section 30
Medical Bureau for Occupational Diseases & Compensation Commissioner for Occupational Diseases (MBOD and CCOD) 3 
Administration Cost
Included in levies on employers (payment to DoL)
Borne by the State from Parliamentary allocation
Mechanism required to transfer cost from state 4 
Applicability
All employers and industries (including mining)
Controlled mines and works
Controversy concerning application to non-controlled mines and works 5 
Cover
All occupational injuries and diseases excluding 6 defined compensatable diseases listed as compensatable in ODMWA
6 defined compensatable lung diseases in controlled mines and works

5. 6 Protection for employers against civil actions6 
Protection for employers against civil actions
(Section 35) prohibits civil claims; Section 56 claims for additional compensation
Civil claims permitted
Not agreed between parties 7 
Prescription of claim for compensation
12 months from date of diagnosis – seldom enforced in practice 65(4) & (5)
None 8 
Cost of medical examinations for benefit purposes
Compensation Commissioner (or RMA) after diagnosis
Employees – borne by employer. Ex-employees Proposal: transfer of cot to employer through CIB by MBOD from moneys appropriated by Parliament. 9 
Assessment of disability
Degree of disability for injuries determined by Schedule 2.
Degree of disability for ODs determined by Standing Instructions
Two levels of disability specified by ODMWA (section 44)
Legal status of standing instructions in doubt

6. 10 Maximum salary on which compensation is based R312 480 p.a.
10 
Maximum salary on which compensation is based
R312 480 p.a.
R36 000 p.a. (set at R24 000 per annum in 1994)
Not increased in line with CoL. Current equivalent value: approx.. R
11 
Benefits
Total temporary disablement
R9 000 per month (75% of earnings) for a maximum of 12 months irrespective of cause (any occupational injury or disease)
R0 – 9 000 per month (75% of loss of earnings) for a maximum of 6 months for TB only
30% permanent disablement
100% permanent disablement
Lump sum of R180 000
Monthly pension of R9 000 for life
Lump sum of R47 160
Lump sum of R105 000
12 
Death or Post Mortem Benefit
Lump sum 2 x monthly pension
40% of monthly pension for spouse
20% of monthly pension for a dependent child
Funeral costs R14 539
Lump sum of R47 160 or R105 000 depending on degree of impairment
Applicability where employee already has received benefits.

7. 13 
Other Benefits
Compensation plus funeral costs, constant attendance allowance
Lump sum compensation only
Implication of latency in value of pension
14 
Employer Assessments
Borne by employer. Determined by category and sub-category. Percentage based on earnings. Adjusts automatically
Borne by mine owner. Determined by commodity. Figure determined by Risk Committee. Adjustment by Risk Committee required
15 
Medical Care
For two years of longer under certain circumstances
Life-long but only for employees diagnosed after 2003
Medical care provisions not implemented
Section 78 arrangement for use of employer facilities
Section 36B arrangement for use of employer facilities

8. issues
3 Key elements
The key elements of an efficient compensation system for occupational cardio- respiratory diseases include the following:
Accessibility of services (screening, exposure data and risk assessments, medical assessments; claims management)
Availability of diagnostic services (noting the special characteristics of OCRD)
Effective claims management (certification, payments) and turn-around times
Robust data management and information systems including tracking and tracing
Effective communication and feedback (stakeholders, service providers, claimants / beneficiaries, non-claimants)
Development of a surveillance system for occupational diseases and occupational injuries.

9. Legislative proposals for Compensation Integration
Draft legislation prepared to transfer the compensation of current and future employees in controlled mines and controlled works from ODMWA to COIDA for OLD compensation
employees transferred to COIDA will retain access to the preferential provisions of ODMWA (access to free medical benefit examinations, post-mortem examinations)
coverage of transport and associated costs for medical examinations and the payment of interest on late benefit payments.
This legislation has no impact on the rights and duties on application of COIDA in other sectors

10. Legislative proposals 2
The following issues should be explicitly included in this legislation –
6.1 the definition of the categories of employees transferred from ODMWA to COIDA;
6.2 mine-owners, as defined in MHSA, should bear the responsibility for BMEs of their employees, and where this is not provided, this responsibility will fall on employers;
6.3 employers should, through their compensation levies, bear the cost of the provision of BMEs to current and future workers in mines and works, after they cease to work in these sectors, including transport to and from benefit medical examinations.
ODMWA Detailed proposals must be developed to identify legislative changes required to deal with administrative blockages, expedite the payment of compensation to former miners and regulate the financial aspects of the ODMWA Fund.

11. Feasibility
Feasibility studies to be undertaken to determine how to implement transfer of compensation from ODMWA to COIDA
(a) anticipated adjustments to compensation levies paid by the employers of the transferred employees;
(b) implications of the transfer of responsibility for compensation payments from owners to employers

12. (c) ensuring that costs of ODs is internalized to mines and works sectors and not passed onto the Compensation Fund or other employers; (d) ensuring compensation of transferred employees takes account of long latency period associated with OLDs; (lump sum v pension) (e) mechanisms to ensure that employees are informed of their right to access medical benefit examinations

13. Socio-economic impact
The socio-economic impact of the transfer of current (and future) employees from ODMWA to COIDA to be analysed for the purpose of the required Socio-Economic Impact Assessment.
These studies must be conducted in open and transparent manner and made available to participants in the legislative process, such as at NEDLAC and at the Parliamentary portfolio committee. Relevant information must be included in the Socio-Economic Impact Assessment.

14. RMA
Rand Mutual Assurance is currently the insurer for the majority of employers in the mining sector in terms of the provisions of section 30 of COIDA, which permits the operations of mutual associations.
Rand Mutual has proposed to demutualise and is seeking to have section 30 of COIDA amended to permit this.
 The governance of the institution that provides compensation for mineworkers for both occupational diseases and occupational accidents must be legitimate and enjoy confidence of the major players in the mining sector.

15. Way forward
Response from Ministers of Health and Labour to draft proposals
Present to Cabinet cluster with Socio-Economic Impact Analysis Feasibility Assessments
Cabinet Decision
NEDLAC Consultations
Public comment
State Law Advisor to certify
Table in Parliament

16. Thank you