Employment Equity and B-BBEE - 2016 update
EMPLOYMENT EQUITY (“EE”) AND TRANSFORMATION
The three-year EE Plan has run from September 2014 and its end date is August 2017. In line with this, EE reports for 2015/2016 were submitted timeously to the Department of Labour. AECI consolidates data from all its businesses into a single submission.
Numerical targets and progress towards achieving these in the Top, Senior and Middle Management and Professionals, and Junior Management and Skilled occupational levels by race and gender are summarised in the table below. The reporting period was 1 September 2015 to 30 August 2016.
It is pleasing that progress in improving the underrepresentation of designated groups was evident. The results of numerous development programmes and initiatives established to drive and enhance levels of representation by designated groups contributed in this regard.
EE TARGETS AND PROGRESS
EMPLOYMENT EQUITY STATISTICS
|The percentages accompanying the graphics below indicate the combined representation by Black people and White females at each employment level in AECI’s South African operations.|
AECI, a Level 4 B-BBEE Contributor, supports the South African’s government’s B-BBEE initiatives and recognises the importance of achieving a sustainable economic and political environment through the meaningful participation of Black people in the mainstream economy.
The Company is committed to the implementation and success of broad-based empowerment throughout its businesses in South Africa. For consistency and to optimise resources, compliance with the B-BBEE Amended Codes of Good Practice (the “Amended Codes”) is driven by and coordinated at AECI Head Office level.
A summary of key initiatives, per Element of the Amended Codes, to achieve substantive transformation is presented here.
The AECI B-BBEE ownership transactions were approved by shareholders in January 2012. The current B-BBEE shareholding structure (excluding treasury shares) is as follows:
the AECI Employees Share Trust (“EST”) holds 8,4%
the AECI Community Education and Development Trust holds 8,4%; and
Kagiso Tiso Holdings holds 4,0%
This B-BBEE ownership structure, mandated investments and the other public shareholders resulted in AECI achieving Black Ownership of 50,68% and Black Female Ownership of 16,39% in terms of the Amended Codes.
AECI Employees Share Trust (“EST” or “Trust”)
The EST is a key driver of the AECI Group’s empowerment structures and emphasises the recognition of employees as primary stakeholders. At 31 December 2016 there were 5 579 EST beneficiaries. During 2016, the Board approved a dividend payment of 35 cents per B Ordinary Share and this will be paid in 2017. The dividend in the prior year was 32 cents (R2 million).
The 2016 AECI AGM was well attended by beneficiaries and Trustees of the EST. The beneficiaries mandate the Chairperson of the Trust on how to vote at this meeting and at other general meetings of shareholders of the Company.
Management control and skills development
The Group’s Talent Management thrust and Learning and Development initiatives are aimed at improving demographic diversity at all occupational levels, using the Economically Active Population as a framework. In this regard, annual targets are set to ensure that Group businesses work towards the achievement of transformation goals.
Enterprise development (“ED”) and supplier development (“SD”)
A Group Strategic Sourcing Department has been established at Head Office level to manage Group-wide initiatives relating to Enterprise Development (“ED”) as well as Supplier Development (“SD”) programmes. AECI is committed to growing the small and micro enterprise sector in line with the principles set out in the Amended Codes. The Group’s initiatives will contribute to South Africa’s broader localisation efforts and increase competitiveness in the specialised supply chain that is characteristic of the chemicals industry.
AECI has collaborated with other companies, chemical industry bodies and small business development experts to assess gaps in its own supply chain and that of the chemicals industry as a whole. The outcomes of these engagements will guide the formulation of the Group’s ESD strategy. The overriding objectives are assisting and accelerating the development, sustainability and financial independence of identified beneficiaries.
In SD, the focus is on increasing supplier diversity, competition and the local manufacture of products in the Group’s supply chain. In ED, the key is support for a pipeline of contenders in the chemicals sector who have the potential to make a positive impact on the Group’s supplier and/or customer base.
Socio-economic development (“SED”)
In line with the Company’s values of being Engaged and Responsible, AECI’s SED programmes aim to contribute meaningfully and sustainably to improvements in the quality of life of communities in geographic areas where the Group and its customers operate.