CEE presentation to the BEE Commission. 24 March 2017

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1 CEE presentation to the BEE Commission 24 March 2017

2 PRESENTATION OUTLINE National Economically Active Population (EAP) 3 rd Quarter 2015 State of transformation of the 4 upper occupational levels in comparison to B-BBEE targets Movement & skills development (impact) Workforce profile status for 2014 and 2015 for 4 upper levels Key observations and CEE intervention Concluding remarks 2

3 National EAP by Population Group and Population Group Gender Male Female Total African Coloured Indian White TOTAL

4 Adjusted National EAP by Population Group and Gender (For BEE) Population Group Male Female Total African Coloured Indian White TOTAL

5 Workforce profile at the Top Management level in 2014 & 2015 by race African Coloured Indian White Foreign national

6 6 Management control Top Management Criteria/Indicator EEC Report BEE Compliance target Board Participation: Black Executive Directors Black female Executive Directors Note: African males and females make up 14.3 of the above percentage as opposed to of the 50 the BEE compliance target. Indian males and females are 8.6 and Coloureds are 4.7. This level continues to be dominated by White males and females followed by Indian. No EAP alignment required at this level for BEE.

7 Workforce profile at the Top Management level in 2014 & 2015 by gender Male Female

8 Workforce profile for the disabled at the Top Management level (2014 & 2015) Female Male

9 Workforce movement at the Top Management level by race and gender MALE FEMALE FOREIGN NATIONAL Total A C I W A C I W Male Female Workforce profile-all employees Recruitment Promotion Terminations Skills Development

10 Workforce profile at the Senior Management level in 2014 & 2015 by race African Coloured Indian White Foreign national

11 Workforce profile at the Senior Management level in 2014 & 2015 by gender Male Female

12 Management control Senior Management 12 Criteria/Indicator EEC Report BEE Compliance target Senior Management: Black employees in Senior Management Black female employees in Senior Management Note: African males and females make up 21.2 of the above percentage as opposed to adjusted EAP of 51.5 of the 60 the BEE compliance target. Indian males and females are 10.2 and Coloureds are 7.4. (both above the required adjusted EAP). This level continues to be dominated by White males and females followed by Indian.

13 Workforce profile for the disabled at the Senior Management level (2014 & 2015) Female Male

14 Workforce movement at the Senior Management level by race and gender MALE FEMALE FOREIGN NATIONAL Total A C I W A C I W Male Female Workforce profile-all employees Recruitment Promotion Terminations Skills Development

15 Workforce profile at the Professionally Qualified level in 2014 & 2015 by race African Coloured Indian White Foreign national

16 Management control Middle Management 16 Criteria/Indicator EEC Report BEE Compliance target Middle Management: Black employees in Middle Management Black female employees in Middle Management Note: African males and females make up 41.2 out of 59.1 the above percentage as opposed to adjusted EAP of 64.4 out of 75 the BEE compliance target. Indian males and females are 8.5 and Coloureds are 9.4 (both above the required adjusted EAP). This level continues to be dominated by White males and females followed by Indian.

17 Workforce profile at the Professionally Qualified level in 2014 & 2015 by gender Male Female

18 Workforce profile for the disabled at the Professionally Qualified level (2014 & 2015) by gender Female Male

19 Workforce movement at the Professionally Qualified level by race and gender MALE FEMALE FOREIGN NATIONAL Total A C I W A C I W Male Female Workforce profile-all employees Recruitment Promotion Terminations Skills Development

20 Workforce profile at the Skilled Technical level in 2014 & 2015 by race African Coloured Indian White Foreign national

21 Management control Junior Management 21 Criteria/Indicator EEC Report BEE Compliance target Junior Management: Black employees in Junior Management Black female employees in Junior Management Note: African males and females make up 58.8 of the above percentage as opposed to adjusted EAP of 75.5 of the 88 the BEE compliance target. Indian males and females are 5.9 and Coloureds are This occupational level has shown a sign of improvement for Black people. Recruitment of AM&F was 56.4, However, of great concern is the termination stats at 54.4 although recruitment statistics seem to counter-act this concern.

22 Workforce profile at the Skilled Technical level in 2014 & 2015 by gender Male Female

23 Workforce profile for the disabled at the Skilled Technical level (2014 & 2015) gender 2015 Female Male

24 Workforce movement at the Skilled level by race and gender MALE FEMALE FOREIGN NATIONAL Total A C I W A C I W Male Female Workforce profile-all employees Recruitment Promotion Terminations Skills Development

25 CONCLUDING REMARKS All levels Top Management: slight decrease in the representation of Whites between 2014 and 2015 from 70.0 to 68.9 benefitted designated groups and foreign nationals albeit small increase. Africans increased their representation from 13.6 in 2014 to 14.3 in Other beneficiaries were Indians, whose representation increased from 8.4 to 8.6 between 2014 and 2015 and foreign nationals from 3.4 to 3.5 over the same period. Representation of the Coloured group remained the same at 4.7. Male representation decreased by 0.5 from 79.1 to 78.6 and female representation increased from 20.9 to The representation of persons with disabilities decreased from 2 in 2014 to 1.7 in 2015 at this level, with males having the most representation than females. 25

26 CONTINUED All levels Senior Management: Whites continued to decrease at this level albeit as slow pace from 59.3 in 2014 to 58.1 in Professionally Qualified: African representation increased significantly from 36.7 to 41.2 at the professionally qualified level. White representation decreased from 41.9 to 38.0, Coloured group from 9.5 to 9.4 and the Indian group from 9.1 to 8.5. Foreign nationals also gained by 0.1 from 2.7 to 2.8 at this level.. 26

27 CONTINUED All levels Professionally Qualified: A huge decrease was recorded for males whose representation moved from 57.1 to 53.9, which resulted in significant gains for females whose representation changed from 42.9 to Disability representation decreased by 0.1, which was a decrease in the male representation Skilled Technical: White representation decrease by 0.7) and the Coloured population experienced gains at this level from 11.4 in 2014 to 11.6 in African and Indian representation also increased slightly from 58.5 to 58.8 and 5.8 to 5.9 respectively. 27

28 CONTINUED All levels Male representation increased by 0.1 from 54.7 to 54.8 between 2014 and 2015, prompting a decrease in the female representation by the same margin. Persons with disabilities recorded a slight increase of 0.1 from 1.2 to 1.3 at the skilled technical level over the same period. 28

29 KEY OBSERVATIONS ON THE STATE OF TRANSFORMATION It is clear that transformation is very slow at the upper 4 occupational levels. Whilst the B-BBEE codes have somewhat accelerated the small progress that can be observed in these CEE results. It is evident that Employment Equity is not a number one priority for most organisations. This is evident in the reports and the movements in respect of recruitment, promotions and training and development. There is no discounting principle applicable if the organisation do not achieve the required BEE targets for management control. Many organisations continue to achieve substantial BEE Levels yet the Employment Equity / Management Control element is not improving. 29

30 CONCLUDING REMARKS - GENERAL In 2016 the Commission for Employment Equity embarked on Employment Roadshows to engage with employers on the state of transformation in the workplace. To establish the key challenges and barriers employers believe are the real reasons to lack of transformation progress. Some comments from the engagements: Claims that there are not enough skilled people from designated groups. In the private sector, there is a lot of racism coupled with discrimination. There are disparities of income that tend to be too big to address, which are often justified by period of service because of historical reasons. 30

31 CONCLUDING REMARKS - GENERAL Business does not take EE seriously as B-BBEE as EE is perceived to be a burden while B-BBEE talks directly to financial rewards. Need to put pressure on EE via the B-BBEE scorecard and propose better alignment between EE & B-BBEE. Employers submit different reports to rating agencies for BBBEE and the Department of Labour. Multi-national companies in mining, retail & motor tend to bring their own management as part of their global expansion plans/strategy. This poses a challenge on the statistics at the top and senior management levels. 31

32 BAIE DANKIE Thank You