Sustainability/ Employment Equity and B-BBEE

Employment Equity and B-BBEE

EMPLOYMENT EQUITY (“EE”) AND TRANSFORMATION

The three-year EE plan ran from September 2014 to August 2017, at which time a single, consolidated report for all AECI businesses in South Africa was submitted to the Department of Labour.

The tables below illustrate the progress made in terms of representation by racial groups and gender at all management levels over the duration of the plan. The 2017 and 2016 comparatives are presented graphically below.

The new three-year EE plan that will run from September 2017 to August 2020 was finalised after extensive consultation with stakeholders. The numerical goals and targets were set with the intention of improving representation of Africans and Coloureds, in line with the national Economically Active Population (“EAP”) statistics, at Senior and Middle management occupational levels.

In addition to sustaining people management initiatives already in place, the Group will increase its focus on the following interventions to support the achievement of set targets:

GENDER MAINSTREAMING

The level of representation by women at all occupational levels is not adequate when measured against the national EAP data. A gender mainstreaming project will be initiated to identify barriers and promote affirmative action measures that will contribute to better inclusivity and diversity in the workplace. In 2017, 33% of Managers in the Group were female. The target is to increase this to 35% by 2020.

PEOPLE WITH DISABILITIES

A Disability and Inclusiveness Policy is in place to regulate the management of issues relating to disability, particularly in terms of disclosure and confidentiality. The intention is to create a conducive working environment where employees will voluntary declare their disabilities. Building awareness and capacity among key stakeholders remained the focus in 2017. Assessment of the suitability of the physical environment for people with disabilities also continued.

REPRESENTATION BY RACIAL GROUP AT ALL MANAGEMENT LEVELS

2014 TO 2017 PERFORMANCE AND 2020 TARGETS (%)
2014 TO 2017 PERFORMANCE AND 2020 TARGETS (%)

REPRESENTATION BY RACE AND GENDER AT ALL MANAGEMENT LEVELS

2014 TO 2017 (%)
REPRESENTATION BY RACE AND GENDER AT ALL MANAGEMENT LEVELS

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REPRESENTATION BY OCCUPATIONAL LEVEL, RACE AND GENDER — YEAR-ON-YEAR COMPARATIVES

The percentages accompanying the graphics below indicate the combined representation by Black people and White females (including Foreigners) at each employment level in AECI’s South African operations.

TOP MANAGEMENT SENIOR MANAGEMENT MIDDLE MANAGEMENT AND PROFESSIONALS
JUNIOR MANAGEMENT AND SKILLED SEMI-SKILLED AND DISCRETIONARY DECISION-MAKING UNSKILLED AND DEFINED DECISION-MAKING

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REPRESENTATION BY OCCUPATIONAL LEVEL, RACE AND GENDER — YEAR-ON-YEAR COMPARATIVES

TOP MANAGEMENT SENIOR MANAGEMENT MIDDLE MANAGEMENT AND PROFESSIONALS
JUNIOR MANAGEMENT AND SKILLED SEMI-SKILLED AND DISCRETIONARY DECISION-MAKING UNSKILLED AND DEFINED DECISION-MAKING

2018 B-BBEE SCORECARD BY ELEMENT

  2018   2017  
Ownership 25   25  
Management Control 11,19   12,91  
Skills Development 16,92   11,45  
Enterprise and Supplier Development 32,06   4,06  
Socio-economic Development 5   5  
  90,17   58,42  
B-BBEE Level Level 3   Level 8  
Customer Spend Recognition 110%   10%  

BROAD-BASED BLACK ECONOMIC EMPOWERMENT (“B-BBEE”)

AECI supports the South African government’s Broad Based Black Empowerment (“B-BBEE”) Act, No. 53 of 2003, the Codes of Good Practices gazetted in 2007 and the Amended Codes of 2013. AECI also recognises the importance of achieving a sustainable socio-economic environment through the meaningful participation of Black people in the mainstream economy and the Company is committed to the implementation and success of broad-based empowerment in all its businesses in South Africa.AECI was a Level 4 B-BBEE Contributor in terms of the former Codes of Good Practice. With the application of the Amended Codes, this dropped to Level 8. AECI actively pursued a recovery to Level 4 and implemented a formal plan to accelerate its transformation journey. It was extremely pleasing that the Company not only regained but exceeded its prior Contributor status. AECI received its new B-BBEE certificate on 4 April 2018.The result per element of the Level 3 scorecard is displayed in the table below.