MEDIA AND MANAGEMENT MORNING BBBEE & LABOUR UPDATE

Transcription

1 MEDIA AND MANAGEMENT MORNING BBBEE & LABOUR UPDATE 28 NOVEMBER

2 Agenda BBBEE update Labour update

3 3 BBBEE Update 01 New office development Waterfall, Gauteng

4 Audited BBBEE Performance last 3 years 4 Elements Weighting Ownership Management Control Employment Equity Skills Development Preferential Procurement Enterprise Development Socio Economic Development TOTAL BEE Recognition Level Black Ownership 27.95% Black Women Ownership 3.5% BBBEE Procurement Recognition 125%

5 New ownership transaction 5 Group Five Construction (Pty) Ltd 100% Contributionstions Lexshell 12,292,908 Staff Trust 10,244,090 Bursary Trust 2,048,818 The staff trust is formed pursuant to a nominal donation by Group Five The bursary trust is formed pursuant to a nominal donation by Group Five The trusts will hold an excess of R30m until settlement of bridging loan Shareholding h between the staff trust and the bursary trust is allocated as follows: o 9.26% staff scheme (10,244, shares) o 1.85% bursary scheme (2,048,818 shares) Annual dividends into the respective trust will benefit the beneficiaries of the trust

6 Background on trusts Staff Trust Shareholding of 9.26% or 10,244,090 shares The staff trust will benefit all black staff in salary bands 6 to 10 (professional and skilled employees) employed at the time of a distribution by the trust The allocations take into account the salary band o Salary band 6 will receive approximately 4.5% and salary band 10 approximately 1.5% of their annual remuneration. The allocations are subject to Group Five s full- year dividend per share The staff trust will initially benefit approximately 520 individuals given current staff numbers in these bands Bursary Trust Shareholding of the Izakhiwo Imfundo (construction education) of 1.85% or 2,048,818, shares The bursary scheme will provide perpetual funding for education initiatives to complement Group Five s existing commitment in this area It will be run as an independent d education trust, with the majority of the benefits flowing to black individuals Aimed to provide for 16 bursaries of c. R each per annum, with some surplus funds accumulated for unexpected decreases in income due to lower than expected dividends 6

7 Anticipated changes in BBBEE Codes 7 Element Points Ownership 25 Management Control 15 Skills Development 20 Enterprise and Supplier Development 40 Socio-economic i Development 5 Total 105 The introduction of priority elements which will have minimum thresholds includes: Ownership Skills development Supplier and enterprise development Key changes that will impact Group Five: Management control - focus on demographic profile of professional and senior & management level Targets and scores will be awarded per race group Junior management - levels will no longer be evaluated Skills Development - points increase to 20 and training spend requirements double from 3% to 6% of payroll, large focus on learnerships and employability

8 Group Five s position ahead of new BBBEE codes 8 Achievements New ownership transaction creates sustainable ownership The Group Five Academy offers learnerships that offer learning for a wide range from people with disabilities to boiler making and site safety Exceeding procurement targets from black entities - Several infrastructure projects ensure that local procurement and enterprise development takes place on a regional basis Each business unit held accountable for reaching their targets Challenges Developing sufficient black construction professionals and senior managers with the experience to deliver on large projects Ability to attract and retain black skills Enterprise development with limited order book

9 Socio-economic development Our SED strategy is about empowering the communities in our project catchment areas with resources, support and skills 9 Development: maths, science, environmental science and technology education o o TRAC SA mobile science labs supporting over 800 learners 3 Dinaledi schools assisting over 500 learners to improve their matric results o People at the Gate construction skills programme, 90% of trainees become employees on our projects Social development: investing in community development programmes: o HIV/Aids awareness, counselling and testing o Employee Assistance programme (ICAS) Economic development: promoting the sustainable creation of employment, particularly for marginalised and unskilled groups, such as women and the youth

10 Socio-economic development 10 SED % Budget Spend in % 59% Social 59% Economic 8% Development R4,0m spent on SED in F2012

11 Basadi programme 11 A Group Five s women empowerment programme launched in August 2012 Focuses on female employees AND women-owned companies within the sector Aimed at up-skilling women, AND facilitating the building of gender sensitive culture in the company Seeks to promote excellence, democracy and equitable treatment of all employees Women at middle and junior management level already trained

12 12 12 Free-flow interchange for SANRAL KZN Labour update 02

13 Current dynamics in labour market Shift in approach: Newer independent unions moving away from traditional membership drives, collective arrangement and bargaining Focus on equitable pay and addressing the lack of government s social infrastructure delivery Focus on wage adjustment vs. a wage increase based on CPI/COL adjustments 13 Group s position: Support collective bargaining in construction Low level of unionisation in the construction cluster Manufacturing and Intertoll have plant-based negotiations Our engagements have been positive with minimal work stoppages/disruptions Have taken a proactive approach with labour and respecting workers rights Key legislative changes: Aimed at addressing temporary and fixed-term employees Limit the use of labour brokers through joint and several liability, as companies using labour brokers are deemed to be the employer Drive to decrease fixed-term employment (limited duration employees) vs. permanent Equal pay for equal work and the equity/inequity related to the treatment of these The CCMA has the right to grant organisational rights to minority unions

14 Actions being taken 14 Sector level l bargaining i (Construction) ti Support the establishment of sector collective bargaining council as: Agreements take care of wage costs of all entities competing in the same market Opportunity to pass on costs of wage increases in prices (taking wages out of competition) Single point of engagement for all employers, unions and government - protects against individual company negotiations Standardisation of job descriptions makes industry training possible Central monitoring of compliance to agreements and use of pooled resources Pl t l l b i i (M f t i ) Plant level bargaining (Manufacturing) Build workplace partnerships with plant level unions vs. the current adversarial relationships Employee education, engagement and communication critical

15 15 Asbestos-free building components Questions & answers

16 For more information please contact: 16 Mike Upton Chief Executive Officer Telephone: Junaid Allie Human Resources Director Telephone: Our website:

17 Forward looking statements 17 This presentation which sets out information for Group Five Limited for the year ended 30 June 2013 contains forward-looking statements, which have not been reviewed or reported on by the Group s auditors, with respect to the Group s financial condition, results of operations and businesses and certain of the Group s plans and objectives. In particular, such forward looking statements include statements relating to, amongst others, the Group s future performance; future capital expenditures, acquisitions, divestitures, expenses, revenues, financial conditions, dividend policy, and future prospects; business and management strategies relating to the expansion and growth of the Group; the effects of regulation of the Group s businesses by governments in the countries in which it operates; expectations regarding the operating environment and market conditions. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as will, anticipates, aims, could, may, should, expects, believes, intends, plans or targets. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future, involve known and unknown risks, uncertainties and other facts or factors which may cause the actual results, performance or achievements of the Group, or its industry to be materially different from any results, performance or achievement expressed or impliedby such forward-looking statements. Forward-looking statements are not guarantees of future performance and are based on assumptions regarding the Group s present and future business strategies and the environments in which it operates now and in the future. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Group plans and objectives to differ materially from those expressed or implied in the forward looking statements. Neither the Group nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances otherwise.