Sustainability/ Employee relations

Employee relations

AECI subscribes to the principles of the International Labour Organization’s (“ILO”) conventions. Human Capital policies are intolerant of any form of unfair discrimination, harassment, child labour, intimidation or bullying in the workplace.

To safeguard adherence to these principles and policies, and to facilitate understanding and good relationships, relevant training is provided for management, shop stewards and employees.

Policies are reviewed regularly for continued alignment with legislative and business requirements. Violation of these policies and associated standards results in appropriate disciplinary action.

LABOUR LEGISLATION

The following items received attention in 2017 to ensure compliance in an ever-changing statutory environment in the Group’s countries of operation:

TRADE UNION AND EMPLOYEE PARTICIPATION

AECI subscribes to the ILO’s conventions regarding employees’ rights to freedom of association and collective bargaining. Sectional Forums have been established at operating plant level to enhance mutually beneficial engagement between management and employees.

In South Africa, all the main chemical industry trade unions are recognised. Approximately 47% of employees in the Group’s local operations are members of trade unions. Approximately 32% of employees are in the bargaining unit, with 28% being union members.

Similar recognition agreements exist in other countries where AECI operates. Approximately 59% of those employees are union members.

It was very pleasing that a two-year substantive collective agreement for bargaining unit employees in South Africa was concluded under the auspices of the National Bargaining Council for the Chemical Industry. This will ensure labour market stability and certainty in the industry for the period 1 July 2017 to 30 June 2019.

The focus over the next three years will be on developing a partnership model for management and employee engagements, implementing a standard job evaluation system Group-wide and formalising a standard remuneration philosophy. Steps in this regard will include, inter alia: