BROAD-BASED BLACK ECONOMIC EMPOWERMENT
(B-BBEE)

We fully support the constructive intentions of the government to transform South African businesses through the B-BBEE codes. The Group completed its B-BBEE verification process for the year ending 30 June 2014 and achieved a Level 4 contributor status in accordance with the Department of Trade and Industry Agriculture Codes. Our scoring improved by 10 points, in line with our commitment to organisational transformation.

TSB, also completed the verification process in accordance with the Department of Trade and Industry Agriculture Codes for the year ending 30 June 2014 and achieved a Level 3 contributor status. They were able to attain this status due to their Land Transfer and Reform practices as well as various initiatives including Enterprise Development and Skills Development Programmes for black and smallscale sugar cane growers.

We firmly believe that successful transformation is key to the Group maintaining its edge on sustainability practices.

      2014    2013*   
BEE category  Element  Weighting  Score  Weighting  Score 
Direct empowerment    Ownership  20  11,70  20  9,41 
Management  10  3,54  10  3,90 
HR development    Employment equity  10  2,77  10  3,56 
Skills development  20  13,79  20  6,12 
Indirect empowerment      Preferential procurement  20  13,38  20  12,87 
Enterprise development  10  10,00  10  10,00 
Socio-economic development  10  10,00  10  10,00 
Total score    100  65,18  100  55,86 
     Level 4    Level 5   
Recognition status     100% contributor  80% contributor 

Note: The current code (B-BBEE points) system has been amended by the Department of Labour. The amendments to the Codes (which came into effect from 11 October 2014), significantly change the manner in which a firm’s B-BBEE status (or level) will be calculated, as the number of B-BBEE points required to achieve a particular B-BBEE level has been increased. These far-reaching changes will materially affect our existing B-BBEE rating and status for the 2015/2016 reporting year.

EMPLOYEE RECONCILIATION

The total number of employees increased from 17 958 to 20 479 during the course of the year. The employment growth of 2 521 is aligned to the strategic decision to convert temporary/casual employees to permanent staff in the light of recent amendments to labour legislation. In addition, parttime employees employed at Foodcorp Speciality who have historically been excluded from the headcount have been included in the 2015 headcount. Total staff turnover reduced year on year from 15,0% to 12,7% and avoidable turnover (resignations) declined from 8,4% to 5,8%. The table below reflects the permanent and contractor/temporary staff numbers per operating company:

Employees as at 30 June      Rainbow    Vector  RCL 
Group 
Services 
    Foodcorp      TSB    Total 2015    Total 2014 
Employees at the beginning of the year  6 437  3 143  173  4 292  3 913  17 958  15 967 
Add:                      
Recruitment/intercompany transfers  1 384  758  46  2 251  364  4 803  4 365 
Less:                      
Deaths  23     26  29  87  117 
Discharges  362  179  201  56  799  659 
Disabilities     29  30 
Resignations/transfers  319  325  30  276  102  1 052  1 344 
Retirements  176  10     76  53  315  224 
Employees at the end of the year  6 932  3 370  188  5 961  4 028  20 479  17 958 

TRAINING AND DEVELOPMENT STATISTICS

We remain committed to providing meaningful development to our employees in order to raise them to their full potential. In 2015 the Group increased its investment in Learning and Development and built on its learning framework which focuses on developing distinctive skills through functional programmes across the value chain and revising the succession planning processes, increasing the numbers of learners participating in formalised learnerships and creating skills and trainee programmes across the talent pipeline.

As a Group we take a holistic approach towards employee development using a 70:20:10 principle, where 70% is made up of on-the-job (“OJT”) training and exposure, 20% is provided through mentoring and coaching and 10% relates to classroom training. We believe that training courses are only one way of developing capability and tend to have a lower impact than other methods such as OJT learning.

The Group will be introducing three New Leadership Development Programmes across each of the management levels for 2015/2016.

 

NATURE OF TRAINING

These are some examples of our range of training initiatives:

Leadership and development skills, Management skills training, Computer professional skills, SHE and sustainability practices skills, Human resources and ER skills, Standard operating procedures and Best operating practices training, Safety training, HACCP and hygiene training, Sales and merchandising skills, Engineering skills training, OTJ training (technical skills) and Apprenticeships.

 

TRAINING INDICATOR         A    C    I    W  Total**
 2015 
Total*
 2014 
Training budget  (R million)              38,1  41,3 
Training spend  (R million)              33,1  32,3 
Total hours of training     142 361  24 953  9 583  28 443  205 340  227 291 
Average hours of training per employee    14,00  17,30  17,81  12,92  14,31  15,24 
Number of employees trained     10 163  1 442  538  2 202  14 345  14 917 
Number of employees on learnerships    13           13 
Number of employees on apprenticeships    61     11  73  65 
Number of learners on AET – ACI breakdown    102  108  14