Sustainability/ Employment Equity and B-BBEE

Employment Equity and B-BBEE

TRANSFORMATION

AECI follows an integration approach to transformation to drive inclusivity, diversity and empowerment in line with the Employment Equity Act, No. 55 of 1998, and the B-BBEE Codes of Good Practice in South Africa.

Demographic representation, per the prescribed national Economically Active Population (“EAP”) statistics, has improved over the years, particular at Junior and Middle Management levels.

REPRESENTATION BY RACIAL GROUP AT ALL MANAGEMENT LEVELS

2014 TO 2018 PERFORMANCE AND 2020 TARGETS (%)
2014 TO 2018 PERFORMANCE AND 2020 TARGETS (%)

REPRESENTATION BY RACE AND GENDER AT ALL MANAGEMENT LEVELS

2014 TO 2018 (%)

2014 TO 2018 PERFORMANCE AND 2020 TARGETS (%)

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

The graphics below indicate the number of individuals as well as representation in percentage terms by Black people, White females and Foreigners at each employment level in the Group’s South African operations.

2018 OUTER CIRCLE AND 2017 INNER CIRCLE

TOP MANAGEMENT TOP MANAGEMENT
SENIOR MANAGEMENT SENIOR MANAGEMENT
MIDDLE MANAGEMENT AND PROFESSIONALS MIDDLE MANAGEMENT AND PROFESSIONALS

 

EMPLOYMENT EQUITY (“EE”)

The starting date of Group’s three-year EE plan was 1 September 2017 and its end date will be 31 August 2020. The plan’s numerical goals and targets are intended to improve representation further at every occupational level by race and gender, in line with EAP statistics.

As required by law the related 2018 EE report was submitted to the Director General of the Department of Labour on time, after consultation with all stakeholders. The Group submitted a consolidated report for all its South African businesses except Much Asphalt, which was acquired with effect from April 2018.

The charts above present numerical targets for 2020 and actual performance as at 31 August 2018 for the combined four top occupational levels (namely Top, Senior, Middle and Junior Management/Technical skills).

Numerical targets were met for the majority of designated and non-designated groups. A noticeable under-achievement related to Coloured males and females at all four occupational levels.

To accelerate the achievement of goals and targets, integrated people management initiatives are being rolled out. These take into consideration the needs and expectations of a multi-generational work force and the importance of proactively creating a conducive workplace that embraces diversity and inclusion. Key considerations are:

››a clearly defined and articulated employee value proposition; ››awareness, mind set and behavioural change programmes that reinforce diversity and inclusivity across generations, race, nationality and gender in the workplace; and ›› complementary capacity-building and fasttracking programmes for identified designated groups, particularly women, the Coloured population and people with disabilities.

Recruitment also plays a role. The Recruitment Policy provides a framework for promoting good practice and equality in the field. Appointments are made based on objective criteria for skills, experience, qualifications and competencies, with preference given to employees from under-represented groups.

Awareness and capacity-building workshops were conducted in the year for Human Capital Specialists and Business Partners, members of EE Committees, Shop Stewards and Occupational Health personnel. Similar training will take place in 2019 for Line Managers, with the rest of the workforce to follow.

The charts on page 44 summarise the AECI Group’s demographic representation by occupational level, race and gender in the current and prior reporting periods.

BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE)

AECI is committed to contributing towards the achievement of a sustainable socio-economic environment through the meaningful participation of Black people in the mainstream economy. 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.

On 29 March 2019 the Group was certificated as a Level 2 B-BBEE Contributor. This was a further improvement from the Level 3 achieved in the prior year. The objective going forward will be to maintain the current status and to improve in the longer term. A copy of the certificate is available via the link
https://www. aeciworld.com/pdf/certifications/bbbee-certificate- 2019-level2.pdf.