HUKAY HUKAY MINING CORPORATION

(Small Scale Mining) NATURE OF BUSINESS : DEFINITION : SMALL-SCALE MINING

As defined in Republic Act No. 7079 (An Act Creating Peoples Small Scale Mining Program and For Other Purposes), small-scale mining refers to mining activities which rely heavily on manual labor using simple implements and methods and do not use explosives or heavy mining equipment. Mining is considered as one of the most unsafe human activities. In the study of the Institute for Occupational Health and Safety and Development (IOHSAD) in the Philippines, most of the relevant causes of accidents among small scale miners are rock falls and subsidence, use of poorly maintained equipment, and non-compliance on wearing proper protective equipment, and safety practices. Erosion, suffocation, poisoning, explosion, and being trapped or buried are among the most common accidents

COLLECTIVE BARGAINING AGREEMENT:

Date Subject Definition : February 19, 2013

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ACCIDENT INSURANCE
Accident insurance is a form of insurance policy which offers a payout when people experience injury or death due to an accident. It also gives cash benefits to family members if the policy member passes away due to accident.

Coverage Insured Beneficiaries Facts

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Work related accidental death Miners Family of Miner

A mining company provides accident insurance coverage to their employees as company benefit. Upon employment, an employee shall be provided with accident insurance benefit regardless under probation or regular employment. A beneficiary with insurable interest will receive the death benefits upon submission of necessary claim requirements.

There are companies that enter in a third party agreement with agency who supplies independent contractors/laborers for cost efficiency. The third party shall be responsible in providing accident insurance coverage to its workers or laborers. We conducted consultations with our resource persons1 to give us overviews about accidental insurance coverage. Our resource persons are currently connected with a mining firm and life insurance company. Gathered data are as follows:

Miners are not covered with accident insurance benefits Miners belong to category of high risk employment status

We validated this concern about the exclusion of miners from being covered with insurance. To illustrate, a sample of an accident insurance policy statement is expressed in this manner: The Policy shall not extend to cover: xxx Laborers/worker involved in blasting, bridge construction underground works, cave-in mines/miners, loggers, sawmill workers, demolition, structural steel, tower, tunnel, driving contractors, divers, underwater workers, acrobats. (Malayan Insurance Corporation)

RECOMMENDATION/ COUNTER OFFER:

In this connection, we strongly recommend that accident insurance coverage for miners be denied. However, we may recommend that the company may provide the following benefit in lieu of accident insurance subject to the managements approval and shall be called: ACCIDENTAL BURIAL EXPENSE BENEFIT This benefit is usually an amount paid if the miner employee died of work related accident. COVERAGE:

Php 10,000.00 maximum benefit Exclusive for miners only Effective upon hiring

Terms and conditions:

Ms. May Soneja, HR Officer - Philex Mining, and Ms. Irene Andas, VP for Distribution Strategy, Philippine Prudential Life Insurance Corp.
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Benefit shall be released to family members of miner upon his death. Cause of death shall be strictly work related Beneficiary shall be the family members only Burial expense benefit shall be released in cash upon submission of medical or death certificate by the beneficiary.

RECOMMENDATION/ JUSTIFICATIONS: Currently, HHMC cannot afford to provide its employees an accident insurance even if the Union counter-proposed for a shared cost plan. HHMC is aware of the rules and regulations governing health and safety of its employees. In fact, HHMC was issued the necessary permits and licenses to operate its business, evidencing compliance with the law, especially in the health and safety of its miners. It is self evident that a miners job is entirely different from an ordinary employee of a company. Miners are among the exclusions declared by insurance companies due to its high risk job such as law enforcement and military personnel. However, for humanitarian consideration, an accidental burial expense benefit may be considered. It is cost efficient because no fixed annual insurance premium will be incurred by the company. Hukay Hukay Mining may save the amount of Php 50,000.00 annually. HHMC engages in small scale mining activities where operation of machineries and equipments are limited under the law. Our operation exists in an open pit mining. Therefore, a chance of fatal accident that would lead to death of a miner is very slim compared with a tunnel type mining operation which is more inclined to collapse and accidental deaths. Reports revealed that tunnel type mining are more hazardous and deadly. We, therefore, strongly recommend that the accidental burial benefit be approved by the management.