Eskom Holdings Limited

Kusile Power Station

Section 4

KUSILE POWER STATION
Employer Policies and Procedures / Section 4
Personnel, Accommodation and Industrial Relations / Part 6
Rev0_0608

Introduction

This Part 6 [Personnel, Accommodation and Industrial] is divided into the following sub-sections:

  1. Part 6.1: General Provisions;
  2. Part 6.2: Accommodation;
  3. Part 6.2.1: Accommodation – Kendal Contractors’ Village Policy; and
  4. Part 6.3: Industrial Relations Policy.
KUSILE POWER STATION
Employer Policies and Procedures / Section 4
Personnel – General Provisions / Part 6.1
  1. Competence Testing of Contractor’s Personnel

Contractor’s Personnel to be employed at the Project Site(orat other places, if any, as may be specified under the Contract as forming part of the Site) for any semi-skilled or skilled operation may be tested by the Engineer at any time at the Project Site. This may include, at the Engineer’s discretion, the actual performance of the operation and/or training and testing related to performance of the operation. The Engineer reserves the right to prevent any person from carrying out any operation that such person is not fit or qualified to perform. The satisfactory passing of the induction operation test requirements will result in the certification of the Contractor’s Personnel to perform that specific operation on the Project Site(and/orat such other places, if any, as may be specified under the Contract as forming part of the Site). This certification shall not reduce in any way the Contractor’s responsibilities to perform the Works as per the Contract requirements, including in a safe manner. The certification may be revoked by the Engineer if such person ceases to be fit or qualified to perform the work in question at any time.

  1. Anti-poaching Undertaking

The Contractor shall not recruit or attempt to recruit staff and labour from amongst the personnel of Other Project Contractors during the execution of the Project Works. This restriction shall not, however, prevent the Contractor from recruiting a person where:

2.1that person has been demobilised or the employment of that person has been terminated for any reason other than by resignation;

2.2the person has resigned and a period of 90days has lapsed from the date of resignation; or

2.3the person has been released by the Other Project Contractor for employment by the Contractor (evidenced by written confirmation to this effect by the Other Project Contractor).

Notwithstanding the above, if a person has been dismissed by any other Project Contractor for misconduct or for poor performance, he shall not be employed by the Contractor on the Project Site (orat any other places, if any, as may be specified under the Contract as forming part of the Site)without the prior approval of the Engineer.

  1. Transportation of Contractor’s Personnel

Due to the remoteness of the Project Site, the Contractor is required to provide suitable mass transportation facilities to and from the Project Site(and/orto and from other places, if any, as may be specified under the Contract as forming part of the Site) for Contractor’s Personnel, particularly for general workers.

The Employer will provide a bus loading and unloading area and bus parking outside the Project Site entrance for the Contractor’s use. An unloading area for the Contractor’s Personnel at the Contractor’s yard will be permitted by prior arrangement with, and subject to the approval of the Engineer.

Without limiting the Contractor’s other obligations under the Contract relating to transport of persons, the Contractor shall ensure that Contractor’s Personnel are transported only in licensed and roadworthy vehicles, driven by licensed drivers, which are fit for purpose, properly maintained and which comply with applicable Law as a minimum. Transport of Contractor’s Personnel in the back of trucks, tractors or light delivery vehicles is strictly prohibited.

  1. Canteen

The Employer will provide a Project Site canteen.

The canteen will make available a mid-shift meal during the established break period.As per Part 6.2 of these Employer Policies and Procedures, the mid-shift meal for the Contractor’s general workers who are residents of the Kendal Contractors’ Village is provided at the cost of the Employer. In order to ensure uniformity of meal benefits, the Employer will provide the same meal for the Contractor’s other general workers at the Project Site, at the cost of the Contractor.Distribution of the meal service shall be at staggered periods at the meal services building on the Project Site (and, as the Project Works progress, at several temporary meal stations at various locations on the Project Site) to minimise the duration of the meal period.

All other foodstuffs supplied by the Project Site canteen will be charged for in the ordinary course and will be for the account of the Contractor or Contractor’s Personnel (as may be arranged between them).

No other food or beverage services will be allowed on the Project Site unless approved by the Engineer.

  1. Project Site Induction Programme

The Employer will provide a generic Project Site induction program for personnel and visitors to the Project Site. This program will include, as appropriate, information regarding identification and access, work rules, environmental protection, industrial relations, health & safety, Project information, and miscellaneous Project Site-specific requirements. All persons entering the Project Site will be required to attend induction training and to attend repeat induction training as appropriate. The induction training is expected to take up one full day. Contractor’s Personnel must be in possession of a valid identification card (as provided for in Part 4 [Site Regulations & General Requirements] of these Employer Policies and Procedures) in order to undergo induction training.

The provision of a Project Site induction program by the Employer does not, however, relieve the Contractor of his obligation to ensure that Contractor’s Personnel and visitors receive appropriate induction training and the Employer assumes no liability by providing induction training.

  1. Medical Facilities

The Employer will provide a trauma and rescue medical facility at the Project Site to provide initial medical treatment to Project Site personnel. The facility will be staffed with professional medical personnel. These personnel will be on the Project Site when significant construction operations are in progress. The Contractor shall be responsible for all emergency transportation including ambulances and helicopters.

All such facilities and related services are, however, provided on a good samaritan basis and not as a contractual obligation and the Contractor assumes full responsibility and liability for the medical facilities and requirements of the Contractor’s Personnel. The Contractor likewise assumes full responsibility and liability for the use of Employer provided facilities for or by the Contractor’s Personnel and the Contractor is liable for all charges levied in connection with such services. Without derogating from the Contractor’s Indemnity in favour of the Employer in terms of Sub-Clause 17.1 [Indemnities] of the Conditionsof Contract, the Contractor indemnifies and holds harmless the Employer and Employer’s Personnel from and against any claim or liability arising out of the use of such Employer provided facilities and/or the resultant services for illnesses or injuries to any such Contractor’s Personnel, or arising out of or allegedly attributable in any way thereto.

  1. Substance Abuse Testing

There shall be zero tolerance for substance abuse at the Project Site (and at other places, if any, as may be specified under the Contract as forming part of the Site).Any person who is, or appears to the Engineer to be, under the influence and/or has failed or refused to submit to a substance abuse test may be refused access to the Project Site. If such person is Contractor’s Personnel, the Contractor shall take necessary steps against such person (including disciplinary action, where appropriate, and the removal of the person from the Project Site or from other places, if any, as may be specified under the Contract as forming part of the Site).

Being “under the influence” includes the presence of drugs or alcohol in a person’s system (whether detectable through behaviour and/or testing) to the extent the person’s facilities arein any way impaired and/or to the extent the person is unable to perform work in a safe and productive manner. Insofar as the consumption of alcohol is concerned, alcohol levels in the blood in excess of 0.02 percent shall be considered as being under the influence. Without limitation, persons shall likewise be considered to be under the influence where the presence of drugs or alcohol corresponds to or exceeds accepted medical standards or those prescribed under applicable Laws.

The Contractor shall put in place measures (including all required testing capabilities) necessary to ensure compliance herewith. Without limitation, the Contractor shall administerrandom onsite enzyme immunoassay or colorimetric alcohol urine screenings. The Contractor shall be required to confirm all positive tests by gas chromatography/mass spectrometry laboratory analysis (or by other means acceptable to the Engineer). The Contractor shall provide regular updates of these random tests to the Engineer and all positive tests shall be reported to the Engineer immediately and in writing.

Contractor's Personnel will only be permitted initial access to the Project Site against evidence of a current drug screening/alcohol test having been passed to the Engineer’s satisfaction.

Throughout the Works at the Project Site (and/or to other places, if any, as may be specified under the Contract as forming part of the Site), periodic seminars and instruction programs may be given by the Engineer on the recognition of the characteristics, behaviours, detection, and reporting of substance abuse and persons fitness for duty. All Contractor's supervisory personnel, (including superintendents and foremen), and other key Contractor’s Personnel involved at in the Works at the Project Site (and/or to other places, if any, as may be specified under the Contract as forming part of the Site) shall be required to attend this training and the Contractor shall make Contractor’s Personnel available for and encourage their participation in these programs.

The Engineer shall be entitled to conduct random testing of any person at the Project Site (orat other places, if any, as may be specified under the Contract as forming part of the Site) and/or require the Contractor to test any Contractor’s Personnel suspected of being under the influence of any substance.

KUSILE POWER STATION
Employer Policies and Procedures / Section 4
Accommodation / Part 6.2
  1. Accommodation for General Workers

The Employer will provide accommodation for Contractor’s general workers as indicated in the Accommodation Requirement Form [IA-2/1A]. Accommodation for general workers will be provided, at the Employer’s cost, on the basis detailed below.

Should the tenderer require accommodation to be provided by the Employer, the tenderer is required to complete and submit the attached Accommodation Requirement Form [IA-2/1A] to indicate his requirements (specifically indicating the duration of his accommodation requirements in each instance).Tenderers are, however, advised that Employer provided accommodation is limited and there is accordingly no guarantee that tenderers’ accommodation requirements can be fully met by the Employer. Tenderers must accordingly ensure that their accommodation requirements are reasonable and that the use of local labour for the Works is maximised.

The Contractor shall, within 28days of the Contract Date, and thereafter on a quarterly basis, provide the Employer with an updated accommodation forecast schedule consistent with the Accommodation Requirement Form [IA-2/1A] or otherwise as approved by the Engineer. The forecast schedule shall include all the Contractor’s accommodation requirements. The Employer does not bind itself to accept any revised requirements.

General worker accommodation is provided in the Kendal Contractors’ Village which is situated approximately 15km from the Project Site, near Kendal. The accommodation is temporary, in the form of prefabricated units. A typical layout of a village residential unit is attached to this Part 6.2.The general guidelines for this accommodation are as follows:

Guideline
Type / Max Pers./
Room / Max Pers./
Unit / Approx m² per person / Remarks
Temporary / 2 / 4 – 6 / 8.0m² - 10m² / Ablution included.
Canteen & recreation facilities provided.

Initially, where accommodation is in short supply, more single workers may be accommodated per room than indicated.

Only non-local workers may reside in Employer provided accommodation. For the purpose hereof “non-local workers” means personswho, to the satisfaction of the Engineer, are not ordinarily resident within a 40 km radius of the Project Site.Furthermore, only persons engaged in work at the Project Site(and/orat other places, if any, as may be specified under the Contract as forming part of the Site) may reside at the Kendal Contractors’ Village. Spouses, partners or other family members of workers will not be permitted to reside thereat (although such persons may be permitted short term residence at a prescribed guest area at the Kendal Contractors’ Village at the discretion of the Engineer). The foregoing does not however constitute a restriction on the Kendal Contractors’ Village being used by persons engaged in works other than the Project Works as may be arranged between the Employer and third parties.

As part of the Kendal Contractors’ Village accommodation benefits, the Employer will provide 3 (three) meals a day for resident workers. Meals will be provided in the proximity of the living quarters except that the mid-shift meal will, on working days, be provided on the Project Site.

The Employer will provide a bus loading and unloading area and bus parking for the Contractor’s use outside the entrance to the Kendal Contractors’ Village.

Use of and access to the Kendal Contractors’ Village is subject to the rules and regulations set out inPart 6.2.1 [Accommodation: Kendal Contractors’ Village Policy] of these Employer Policies and Procedures.

  1. Accommodation for Skilled Workers

The Contractor shall provide for the Contractor’s other accommodation requirements including for artisans, technicians, professionals and management.

KUSILE POWER STATION
Employer Policies and Procedures / Section 4
Accommodation Attachment: Accommodation Requirements / Part 6.2
Form Reference / IA-2/1 A
Indicate requirement by supplying: / Month 1[1] / Month 2 / Month 3 / Month 4 / Month x (continued)[2]
General workers (Single) / Number of staff
KUSILE POWER STATION
Employer Policies and Procedures / Section 4
Accommodation Attachment: Kendal Contractors’ Village - Typical Unit Layout / Part 6.2


KUSILE POWER STATION
Employer Policies and Procedures / Section 4
Accommodation: Kendal Contractors’ Village Policy / Part 6.2.1
  1. Definitions

The following additional definitions shall be referred to in the interpretation of this Kendal Contractors’ Village Policy (“this Policy”):

1.1“Common Areas” - means those areas at the Kendal Contractors’ Village (including in the buildings situated thereon) which are designated or otherwise intended for shared use by some or all of the residents of the Kendal Contractors’ Village from time to time (as determined, in the event of any dispute, by the Engineer);

1.2“Contractor’s Residents” - means Contractor’s Personnel who reside in the Kendal Contractors’ Village from time to time and shall include any other persons residing in the Kendal Contractors’ Village by virtue of any relationship with the Contractor;

1.3“Designated Accommodation” – means the accommodation (in the form of prefabricated bungalows or otherwise) provided by the Employer under the Contract at the Kendal Contractors’ Village and assigned for use by the Contractor’s Resident from time to time;

1.4“Land & Service Charges” - means all assessment rates and taxes and similar charges of whatever nature payable to any local or governmental or other authority in connection with the Kendal Contractors’ Village and/or the Designated Accommodation (except penalties or the like levied by reason of the Contractor’s or Contractor’s Resident’s default) and all charges payable to any local or governmental or other authority in respect of the supply of electricity, water, gas and other utilities (if any) consumed on or about the Kendal Contractors’ Village and the Designated Accommodation, including all deposits (if any) payable to the authority concerned in respect of such service charges;

1.5“Residence Termination Date” - means, in respect of each Contractor’s Resident, the earlier of:

1.5.1the last day of the period specified in the relevant booking-in form referred to in paragraph 3.3 below or such extended or other date approved by the Engineer; or

1.5.224 hours after the withdrawal by the Engineer of his approval as provided for in paragraph 2.2 below.

  1. Introduction

2.1The right of a Contractor’s Resident to reside in the Kendal Contractors’ Village will be approved by the Engineer pursuant to Section 4: Employer Policies and Procedures, Part 6.2: Accommodation, read with this Policy. Subject to such approval the Contractor shall have legal authority to give permission to Contractor’s Personnel (but not to any such person’s spouse, partner and/or other family members or any other person) to reside in the Contractor’s Designated Accommodation and make use of the applicable Common Areas. To the extent the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998 (“PIE Act”) and/or Extension of Security of Tenure Act 62 of 1997 (“ESTA”) applies to the Designated Accommodation, the Contractor and shall be a “person in charge” as defined therein.

2.2The Engineer may, on written notice to the Contractor, withdraw the approval given in respect of:

2.2.1any Contractor’s Resident who is removed from the Project Site(orfrom any other places, if any, as may be specified under the Contract as forming part of the Site) under Sub-Clause 6.9 [Contractor’s Personnel] of the Contract;