Sustainability
NMPP Terminal 1

Broad-Based Black Economic Empowerment

The group has achieved a BBBEE Level 2 for 2017 based on the DTI Generic Codes.


B-BBEE Scorecard (2016 - 2017)

BBBEE elements Weighting points DTI Generic
scorecard F2017
DTI Generic
scorecard F2016
Ownership 25 25 25
Management control 15 9.62 6.08
Skills development 20 12.97 14.78
Enterprise and Supplier development 40 42.86 40.51
Socio-economic development 5 4.65 5
Total 105 95.10 91.37
B-BBEE level   2 3

 

B-BBEE Scorecard (2014 - 2015)

Core components B-BBEE elements Weighting points Construction Charter
scorecard F2015
Construction Charter
scorecard F2014
Direct empowerment Ownership 25 25 25
  Management control 10 5.10 4.42
Human resource empowerment Employment equity 10 4.35 3.96
  Skills development 15 14.64 14.73
Indirect empowerment Preferential procurement 20 19.0 19.1
  Enterprise development 15 15 15
  Socio-economic development 5 5 5
Total   100  88.12 87.22
B-BBEE level     2 2

 

Ownership

Group Five has achieved 25 points out of a target of 25 for the ownership element in 2016.

The group concluded a broad-based black economic empowerment (BBBEE) transaction in September 2005 that resulted in 26.1% of its enlarged share capital being made available to black South Africans. The offer constituted three key elements, namely: Broad-based employee scheme (0.48%), Black managers’ scheme (1.94%) and the iLima consortium and the Mvelaphanda Group Limited. The largest part of the transaction was the issuing of 21.6% of share capital equally to the two parties. The Broad-Based Employee Scheme and the Black Management Share Scheme have reached their natural conclusion having achieved their intended objectives. The remaining elements of this transaction were concluded with the unbundling of Mvelaphanda.

The Group Five Black Professionals Staff Trust was launched in 2013 making up 9.23% of the Group Five issued share capital as at the end of 30 June 2016. Izakhiwo Imfundo Trust was officially launched on the 30th of June 2016 and made up 1.78% of the Group Five issued share capital as at the end of 30 June 2016.

Group Five BBBEE ownership transaction current status:

  30 June 2016 30 June 2015 30 June 2014
  Number of shares Shareholding Number of shares Shareholding Number of shares Shareholding
Black Management Scheme 583 631 0.52% 698 394 0.62% 893 249 0.8%
Black Professionals Staff Trust 10 356 865 9.23% 12 356 865 11.02% 12 356 865 11.02%
Izakhiwo Imfundo Trust 2 000 000 1.78% - - - -
Total 12 940 496 11.53% 13 055 259 11.64% 13 250 114 11.82%

 

Management

Executive management remained constant at 25%; Senior and Middle management levels improved. Senior management improved from 28% to 31%; middle management from 30% to 32%. However, junior management reduced from 78% to 74% mainly due to retrenchments.

The table below shows the profile of black management by empowerment category F2016 and F2015:

  Total South African  workforce F2016 Total South African  workforce F2015
Level White AIC* Total AIC % of total White AIC* Total AIC % of total
Executive management 6 2 8 25 6 2 8 25.00
Senior management 22 10 32 31 23 9 32 28.13
Middle management 282 130 412 32 326 140 466 30.04
Junior management 503 1 399 1 902 74 698 2 495 3 193 78.14

*African, Indian and Coloured


Employment equity

Sustainability indicator F2016 F2015 F2014 F2013
Total employee headcount (all employees) 9 313 9 778 14 485 13 659
Number of unionized employees 1 442 2 115 2 494 2 120
% of permanent employees on medical schemes 43 54 46 49
% of employees over-border 24 24 24 25
% of black employees within the South African permanent workforce 88 88,5 89 89
% of black employees in Peromnes grades 1 – 3 (executive and senior management) 30 28 21 19
Number of black male bursary students 61 66 63 42
As a % of total bursary students 52 59 57 55
Number of black female bursary students 39 46 22 12
As a % of total bursary students 33 41 20 16

Group Five is committed to continuing its efforts to promote equity and diversity. Our approach over the past few years has centred on the following principles:

  • Building a culture that is consistent with our values
  • Development and promotion of talent from within the group
  • Quality of management and management development
  • Continuous development
  • Competitive recognition and rewards
  • Providing development opportunities

Total South African Workforce

The table below reflects the racial demographics of our South African workforce by occupational level, as defined in the Employment Equity Act. As can be seen, the numbers have remained fairly consistent over the last two years within the management level.

  Total South African  workforce F2016 Total South African  workforce F2015
Level White AIC* Total AIC %
of total
White AIC* Total AIC %
of total
Executive management 6 2 8 25 6 2 8 25.00
Senior management 22 10 32 31 23 9 32 28.13
Middle management 282 130 412 32 326 140 466 30.04
Junior management 503 1 399 1 902 74 698 2 495 3 193 78.14
Semi-skilled 31 2 506 2 537 99 61 3 352 3 413 98.12
Lower skilled 17 2 184 2 201 99 6 2 660 2 666 99.78
Total 861 6 231 7 092 88 1 120 8 658 9 778 89

* African, Indian and Coloured.

Demographic distribution – South African employees:

Sustainability indicator F2016 F2015 F2014 F2013
White 12% 11% 1 215 1 154
African 74% 76% 8 778 7 702
Coloured 10% 9% 1 362 1 031
Indian 4% 4% 408 397
Total 100% 100% 11 763 10 284

NB: Numbers above have been converted to percentage, not quantum as at 2014 and 2013.


Skills development

The Group Five Academy (The Academy) was launched in August 2006. It is responsible for the planning and delivery of learning and development across the group, as well as maintaining support systems to track and manage all learning.

The Academy’s activities are structured around four areas:

  • Bursary programme and learnerships
  • Organisational development
  • Leadership and management development
  • Technical skills development

During the year, although overall training expenditure decreased due to economic conditions, we increased the number of employees trained.

Sustainability indicator F2016 F2015 F2014 F2013
a) Annual value spent on training and development programmes – (R million) 31,8 40,2 45,1 37,1
i) Total number of training interventions* 16,698 13 133 14 928 9 125
ii) Total number of training interventions – semi-skilled and unskilled* 8,898 5 754 6 029 4 007
b) Annual value incurred on bursary expenditure – (R million) 7,9 8,4 7,2 5,1
i) Number of bursary students 118 136 111 76
ii) Number of female bursary students 42 50 26 15
c) Annual value spent on learnerships and apprenticeships – (R million) 5,4 7,2 5,1 3,6
i) Learners on learnership and apprenticeship programmes 170 186 174 90
ii) Unemployed learners registered on learnership and apprenticeship programmes 140 130 120 66
d) Number of students on the Group Five Programme in Management Development (PMD) 96 28 8 21
e) Total annual training spend – black employees – (R million) 13,5 15,5 19,3 15,4

* For employees.


Preferential procurement

Very pleasingly, all preferential procurement targets set for the year were exceeded. The challenge remains with Black Woman Owned enterprises. This is currently being addressed.

Achievement against Construction Charter principles:

Measurement principle Points (F2016) Targets (F2016) Actual
F2016(3)
Actual
F2015(2)
Actual
F2014(1)
Preferential spend with all suppliers 5 80% 87.4% 71% 72.2%
Preferential spend with qualifying small (and emerging micro enterprises) 3 15% 21.3% 24% 29.8%
Preferential spend with qualifying small (and emerging micro enterprises) 4 15% 13.7%    
Preferential spend with 50% black enterprises that are more than 9 40% 28.5% 21% 18.2%
Preferential spend with 30% black enterprises that are more than women owned 4 12% 10.4%   4.4%
Bonus Points Preferential Spend From Designated Group enterprises that are at least 51% Black owned 2 2% 2.1% 6%  
Weighted score (points)* 25   23.5% 19.4 19.1%

(1) As audited by BEE Verification Agency cc for the year ended 30 June 2014.
(2) As audited by BEE Verification Agency cc for the year ended 30 June 2015.
(3) As audited by BEE Verification Agency cc for the year ended 30 June 2016.

*A weighted score is not done for targets.


Enterprise development

The group met the full enterprise development requirement in terms of the Construction Sector BBBEE Scorecard for the sixth year in a row. Six of our current partners improved their Construction Industry Development Board (CIDB) registration during the period and four reached the targeted CIDB level 8. Since inception of the group’s enterprise development programme in 2008, four partners have increased their CIDB rating to level 8.

Group Five enterprise development partners:

ED Partners Black
Ownership
Women
Ownership
Date joined Initial CIDB Level Current
CIDB Level
BBBEE Level
BL Williams 95% 48% 2008 6 GB – PE 8 GB – PE 3
Enzani Technologies 80% 54% 2009 5 EP – PE 7 EP  PE
1 ME – PE
1
Inkanyeli Projects 100% 19% 2009 4 GB – PE 7 GB  PE 2
Pan African Development 100% 40% 2009 6 GB – PE 7 GB  PE
7 CE  PE
3
Siyakhula Engineering 100% - 2009 1 EB - EP 1EB - EP 3
UMSO Construction 89% - 2008 6 CE – PE 8 CE – PE
6 GB PE
2
ENM Trading CC 100% - 2010 6 GB 8 GB 3
Uvuko Civils 100% 100% 2013 7 GB,5 CE 8 GB PE
7 CE PE
3
Tsima Construction 91% 21% 2015 7 GB,8 CE 8 GB, 8 CE 3

 

F2016 NEW PARTNERSHIPS

ED Partners Black
Ownership
Women
Ownership
Date joined Initial CIDB Level Current
CIDB Level
BBBEE Level
Bhungu Trading Projects CC 100% - 2016 * * 3
Thukuhlo Suppliers, Recycling & Projects (Pty) Ltd 100% 100% 2016 * * 3
Keabetswe Business Enterprises CC 100% - 2016 * * 1
Tanguliza Construction 100% 100% 2016 * * 1
Bafokeng Plumbing,  Engineering Construction & Trading (Pty) Ltd 100% - 2016 1 SO  PE 1 SO  PE 3
WillpowerWorx 100% - 2016 * * 1

CE – Civil engineering
EP – Electrical engineering works (infrastructure)
GB – General building works
ME – Mechanical engineering works
PE – Potential emerging
* - Not CIDB graded

Socio-Economic Development (SED) Scorecard

The Group’s SED program has three key focus areas:

  • Education and training: with a particular focus on mathematics, science, environmental and technology education.
  • Social development: through donations made towards community development initiatives mainly through nonprofit/non-governmental organizations for various cause related programs and disaster relief.
  • Economic development: with particular emphasis on the promotion of sustainable employment for marginalized and unskilled groups such as women and the youth.
Sustainability indicator F2016 F2015 F2014 F2013 F2012
Targeted SED spend as a % of SA operations’ net profit after tax 1 1% 1 1 1
Actual SED spend as a % of SA operations’ net profit after tax 1.07 0.9% 1.52 1.15 2.4
Total annual spend on SED programmes – (R million) 3.2 2,6 3.8   3,9
Number of unemployed people trained as part of the People at the Gate programme 34 118 536 524 43
% of unemployed people securing positions after training 100 70 90 80 100
Number of non-profit organisations benefiting from the group’s SED programmes 48 55 35 26 32