South Africa: Third of Harmony Employees May Have HIV -- Report

Gold producer Harmony, in its annual report issued last week, estimated that up to one-third of its local workforce may be HIV-infected. The AIDS epidemic in South Africa "poses risks to Harmony in terms of potentially reduced productivity and increased medical and other costs," the company said, adding it expects "the impact of HIV/AIDS on our cash costs will be in the range of $2 to $5 per ounce."

"We expect that significant increases in the incidence of HIV/AIDS infection and HIV/AIDS-related diseases among our workforce over the next several years may adversely impact on our operations and financial status," the report said.

Based on input from different labor organizations, Harmony used a computer model that estimated HIV prevalence in its workforce at 33.9 percent in 2004, falling to 24.8 percent in 2010. Incapacitation due to HIV/AIDS was expected to climb from 1.61 percent of its workers in 2004 to a peak of 3.26 percent in 2011.

Harmony negotiated a price for highly active antiretroviral therapy of 554 rand (US$85) per month, down from 1,000 rand (US$153) per month. As of Aug. 24, 2004, 514 employees were receiving treatment through the company program.

Harmony said its "healthiest workforce campaign" is "well on the way" toward its goal of "achieving the healthiest workforce possible" and providing health care "equivalent to private hospital standards for all employees."

"The project consists of different task teams that align, implement and closely monitor initiatives in the following focus areas: HIV/AIDS, occupational health, tuberculosis, nutrition, hostel facilities, sports and recreation and management of employees waiting to leave the company's service due to ill health," Harmony said.

Back to other news for October 5, 2004