Social performance
Employment and human rights
Buildmax is a significant employer in the Gauteng, Mpumalanga and Western Cape areas. In certain areas, the group’s operations are located in regions where few economic activities take place. Although the group’s workforce reduced by 30,3% compared to the previous financial year, it managed to reduce the labour hire component of its workforce to 21,7%.
Managing human resources
The organisational responsibility for human resources resides at the group’s Head Office in Benoni, Gauteng, although each entity and operation is responsible for the direct management of its employees. Buildmax ensures compliance with South African labour and other legislation which includes the Labour Relations Act, Basic Conditions of Employment Act, the Employment Equity Act and the Mining Charter. No fines for non-compliance to these acts were paid by the group for the period under review.
Fair, honest and sustained employment
Buildmax, and its subsidiary companies, are committed to being a good employer and to applying fair and equitable labour practices in compliance with the applicable legislation.
The Buildmax group is committed to the principles of employment equity as well as to achieving a productive and fair working environment, free of discrimination. The group recognises the need to implement affirmative action measures to counteract the under-representation of certain designated groups in the workplace through recruitment, training and promotion of HDSA’s.
Wherever possible, appointments are made in line with these employment equity plans and in compliance with legal statutory provisions. In support of these targets and current legislation, the group places special emphasis on recruiting, training and promoting employees from local communities, particularly HDSAs and women, taking into account the available skills pool in that particular area.
The group’s operations, in the Mining and Quarrying businesses, are in remote locations and therefore, the attraction and retention of HDSA’s in production and management positions has proved to be challenging. The entities in the Mining and Quarrying businesses have initiated several training initiatives which aim to identify, train and develop HDSA’s to fulfil these leadership and management positions in the future.
All employment equity targets are set annually and detailed in the Buildmax subsidiaries’ employment equity plans which are submitted to the South African Department of Labour. The individual entities report against these targets monthly to the group’s head office.
Women in mining – The Mining Services and Quarrying business units have further embarked on decisive steps in appointing, training and developing women within the operations of both business units. There is a fair representation of women operators, safety officers as well as screening operators, on the quarrying side.
Total number of employees and labour hire staff complement at 28 February 2011:
% |
By |
Male |
Female |
By |
Black |
Coloured |
Asian/ |
White |
|
Non-Executives-Directors |
0,3 |
7 |
7 |
– |
7 |
2 |
– |
1 |
4 |
Salaried-Directors |
0,8 |
20 |
17 |
3 |
20 |
3 |
– |
– |
17 |
Salaried-Department Head |
2,3 |
56 |
49 |
7 |
56 |
1 |
7 |
1 |
47 |
Salaried-Employees |
14,3 |
345 |
246 |
99 |
345 |
57 |
25 |
8 |
255 |
Salaried-Contractors |
0,9 |
21 |
21 |
– |
21 |
2 |
4 |
– |
15 |
Waged-Employees |
58,5 |
1 406 |
1 370 |
36 |
1 406 |
1 363 |
12 |
2 |
29 |
Waged-Labour Hire |
21,7 |
521 |
483 |
38 |
521 |
471 |
3 |
– |
47 |
Waged-Casual |
1,2 |
29 |
28 |
1 |
29 |
28 |
1 |
– |
– |
Total |
100,0 |
2 405 |
2 221 |
184 |
2 405 |
1 927 |
52 |
12 |
414 |
92,3% |
7,7% |
80,1% |
2,2% |
0,5% |
17,2% |
Employment equity statistics excluding labour hire and casuals for the year ended 30 September 2010:
Name |
By |
Male |
Female |
By |
Black |
Coloured |
Asian/ |
White |
|
Top management |
10 |
8 |
2 |
10 |
– |
– |
– |
10 |
|
Senior management |
33 |
27 |
6 |
33 |
1 |
2 |
– |
30 |
|
Professionally qualified and experienced specialist and middle management |
122 |
110 |
12 |
122 |
25 |
2 |
– |
95 |
|
Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents |
761 |
727 |
34 |
761 |
602 |
49 |
1 |
109 |
|
Semi-skilled and discretionary decision-making |
471 |
442 |
29 |
471 |
423 |
13 |
2 |
33 |
|
Unskilled and defined decision-making |
182 |
162 |
20 |
182 |
179 |
2 |
– |
1 |
|
Temporary employees |
1 |
1 |
– |
1 |
1 |
– |
– |
– |
|
Headcount as at 30 September 2010 |
1 580 |
1 477 |
103 |
1 580 |
1 231 |
68 |
3 |
278 |
Employee turnover excluding labour hire and casuals for the year ended 30 September 2010:
Name |
By |
Male |
Female |
By |
Black |
Coloured |
Asian/ |
White |
|
Headcount at 1/10/09 |
1 656 |
1 538 |
118 |
1 656 |
1 191 |
70 |
4 |
391 |
|
Appointments |
236 |
204 |
32 |
236 |
163 |
23 |
2 |
48 |
|
Resignations |
(87) |
(68) |
(19) |
(87) |
(20) |
(3) |
– |
(64) |
|
Retrenchments |
(133) |
(112) |
(21) |
(133) |
(36) |
(11) |
– |
(86) |
|
Dismissals |
(75) |
(69) |
(6) |
(75) |
(54) |
(11) |
(3) |
(7) |
|
Retirement |
(9) |
(8) |
(1) |
(9) |
(6) |
– |
– |
(3) |
|
Death |
(8) |
(8) |
– |
(8) |
(7) |
– |
– |
(1) |
|
Headcount at 30/9/10 |
1 580 |
1 477 |
103 |
1 580 |
1 231 |
68 |
3 |
278 |
Respect for human rights
Buildmax operates in South Africa and is guided by the human rights policies detailed in the South African Constitution. South Africa’s endorsement of various International Labour Organisation principles relating to forced, compulsory or child labour is also binding on the group.
There were no contraventions of these principles for the period under review.
Remuneration
Buildmax aims to be a fair employer, offering employees salaries, wages and benefits that are both market-related and reward individual effort. Benefits in addition to monthly salaries and weekly wages include contributions to several medical aid schemes and pension/provident funds, maternity leave, and housing allowances (where applicable).
Remuneration policies within the Buildmax group have evolved independently from one subsidiary company to another for a number of years, resulting in some diversity amongst these companies. Accordingly a decision was taken during 2010 to rationalize policy and introduce an integrated group policy. A senior human resources executive and a consulting firm were appointed in 2010 to assist with this process, which will continue in 2012. Refining the policy is an ongoing process but significant progress has been made.
One of the most important objectives of the financial reward system is to attract employees who have outstanding competencies and people skills into appropriate positions, in all business units. Furthermore, it is Buildmax’s aim to build long-term relationships with its employees, providing a career opportunity for each, whilst also securing the benefits of their talents, entrepreneurial flair and loyal service on a sustainable basis.
The remuneration philosophy of the group recognises that each employee is making an important contribution in a different way and at a different level to ensure that:
• The group, through the actions of the senior management teams of the business units, is able to meet demanding financial targets in competitive markets, requiring the coordination of many factors in complex supply chains;
• The management of the group’s Mining Services business unit develops technical skills, service excellence and operational efficiency in a challenging environment – with a focus on transforming the business from a contract mining business to an “integrated mining supply chain service provider”.
• Our employees in the Construction Materials business unit are expected to develop manufacturing excellence, sell products, deliver on time to project sites in remote regions, capture and nurture customer loyalty in every segment of this business.
• Whilst embracing the philosophy of transformation at all levels in the organisation, strong leadership and entrepreneurial flair remains strategically critical, especially at top management level. The group’s remuneration policies accordingly are therefore flexible and adaptable on a situational basis. These policies are strongly influenced by the following set of beliefs:
• The guaranteed annual cost to company package must provide all employees with pay which is adequate and market-related, with appropriate benefits.
• Variable pay must incentivise both team and individual effort. The group’s incentive schemes must serve as an enabler with which line managers can attract, motivate and retain staff of the calibre that is required to achieve organisational goals.
• Talent must be attracted and retained at top management level to provide shareholders with the assurance that the group is managed by a team which can ensure profitability and adequate financial returns in the long-term.
The group’s employees are treated as a major and important stakeholder and these remuneration policies are being reviewed continuously by Remco to ensure employment and compensation equity, as recommended by the King III report.
Key policies affecting guaranteed pay:
• The remuneration of hourly-paid employees and other employees that fall within the bargaining unit is negotiated with representative trade unions, except in those instances where there are industry-wide bargaining agreements.
The group will continue to respect these agreements;
• The remuneration of executive management and other employees will be contracted on an all-inclusive annual package basis. This includes all the costs related to employment, such as the cost of travel, contributions by the group to retirement savings, catastrophe insurance and medical aid schemes;
• Each year salary scales will be reviewed. The minimum for each graded position will be fixed at a level which is 25% below the market median and the maximum 25% above the market median;
• Salary increases are negotiated and recommended by the manager of each group company, but require approval by the Exco. The overall principles adopted will be approved
by Remco;
• Executive management and senior managers takes part in an incentive bonus scheme that is based on pre-determined financial and non-financial targets and includes an assessment of the individuals overall performance. These targets include measures of corporate and, where applicable, operational performance as well as the achievement of individual performance against pre-determined objectives related to the group’s key business strategies and requirements;
• The details of service contracts concluded with executive directors are as follows:
• Terry Bantock:
– Effective date: 1 February 2010;
– Duration: fixed term of 30 months after which it is indefinite, subject to six months’ notice and summary termination by the company
in certain instances;
– Capacity, function and duties: the executive has been appointed as the CEO of the company; and
– Remuneration:
• an annual cost to company guaranteed package as disclosed in the directors report on page 44;
• minimum R1 000 000 guaranteed bonus for the financial year ending 28 February 2011 and participation in the group’s future short term incentive bonus scheme based on pre-determined financial and non-financial targets including an assessment of the individuals
overall performance ; and
• participation in the company’s long term share incentive scheme the terms of which will be finalised during the 2012 financial year.
• Christie Els:
– Effective date: 1 April 2010;
– Duration: indefinitely, subject to summary termination by the company in certain instances;
– Capacity, function and duties: the executive has been appointed as the financial director and chief financial officer of the group;
– Remuneration:
• an annual cost to company guaranteed package as disclosed in the directors report on page 44;
• a minimum R1 000 000 guaranteed bonus for the 2011 financial year and future participation in the group’s short term incentive bonus scheme based on pre-determined financial and non-financial targets including an assessment of the individuals overall performance ; and
• participation in the company’s long term share incentive scheme the terms of which will be finalised during the 2012 financial year.
• The executive managements’ and certain of the key executives’ services contracts contain, except for the agreement concluded with Terry Bantock, terms and conditions that are standard in nature and are terminable on 1 to 3 months notice. The service contracts contain non-compete provisions in terms of which the executive directors and certain executive management are restrained from competing with the group during their employment and for a period of up to 24 months after termination.
No consideration was paid for the non-compete
agreements; and
• In those instances where management fulfils the role of a director of Buildmax Limited and/or any of its subsidiaries, no additional compensation is paid for these services.
Labour relations
The Buildmax group recognises the right of every employee to exercise freedom of association and to join a trade union of their choice to collectively represent their interests. NUM is the biggest and most represented union in the group. The individual entities in the group, where NUM is the dominant union, negotiate with NUM on all substantive issues such as wages, conditions of employment and other issues affecting employee rights in the workplace. In the Mining Services business unit the group managed to sign a three-year agreement with NUM that expires on 28 February 2013.
The National Union of Metalworkers of South Africa and National Democratic Change and Allied Workers Union are the other registered trade unions active at the group’s operations. No long-term wage agreements have been negotiated and signed with these Unions.
Furthermore, the group has worked with the unions and employee representatives in all its business units to establish employee forums. These forums meet frequently and the main purpose is to share information pertaining to the business and transformation. This also serves the purpose of complying with the imperatives of the Employment Equity Act.
Union representation in the Buildmax group at the end of the 2011 financial year:
Group subsidiary |
NUM |
NUMSA |
NDCAWU |
Total number |
Percentage |
Diesel Power Open cast Mining |
528 |
– |
– |
528 |
38,1% |
Cast Industries |
30 |
– |
– |
30 |
42,9% |
Watson Concrete |
30 |
– |
– |
30 |
21,1% |
Wit Deep Sand & Stone |
2 |
– |
12 |
14 |
10,4% |
S Burde & Kensmark |
– |
95 |
– |
95 |
87,2% |
Columbia DBL |
82 |
– |
– |
82 |
41,2% |
Total |
672 |
95 |
12 |
779 |
32,4% |
Training and development
A key initiative of the Buildmax group is to nurture and develop the group’s skills base internally so as to meet both the current and future skills requirements of the organisation. The group’s culture offers an environment of advancement and provides various training programmes to assist employees to advance in their careers. Given the diverse range of activities carried out by the group in its daily operations, there are numerous opportunities for employees to gain practical experience. Continuous training and development provide employees with the skills to improve not only their efficiency and safety in their working environment but also their ability to progress within the group.
During the year under review the group provided classroom and on-site training covering production, safety and certain administrative functions to 3 814 trainees totalling
333 836 hours.
Adult Basic Education Training
In recognition of a number of legacy issues and in support of our objective to develop and promote our own employees, as well as to enhance our levels of effectiveness and efficiency in business, Buildmax made a decision to identify and remove identifiable barriers to upward mobility by our employees.
It became evident that numeracy and literacy, particularly at the junior levels of the group, was a major barrier. To that end, the group has embarked on an ABET programme, starting at level 1 through to 3. The plan is to articulate this with the National Qualifications Framework levels, which will then enable our employees to be trained and developed for higher levels of deployment and promotion
within the group.
Health and safety
The health and safety of our employees and sub-contractors in all the group’s business units is the highest priority for Buildmax. In addition to risk management processes, the group has various strategies, systems and training in place to ensure that workplaces are safe and to encourage a healthy lifestyle for our workforce. Health and safety awareness is encouraged amongst all levels of employees.
The group is proud to report that there were no fatalities at any of its Mining, Quarrying and other operations for the period under review.
Managing health and safety
The group encourages active participation by all employees, including contractors, and their various representatives in health and safety-related matters. Health and safety committees as well as health and safety collective agreements are in place at all operations, in line with the Mine Health and Safety Act of (29 of 1996) and the Occupational Health and Safety Act, 2003. These committees meet on a regular basis to discuss and resolve health and safety-related challenges.
Safety performance
The Buildmax SHECQ Management System has been successfully implemented, maintained and monitored for the purpose of continual improvement. Our ongoing commitment towards our values and customer requirements has driven us to meeting best practice in SHECQ. The Buildmax SHECQ Management System was assessed and certified by SABS to confirm compliance with two SABS standards, namely ISO 9001: 2008 (Quality Management) and the OHSAS 18001: 2007 (Occupational Health and Safety) standards with no exclusions and also received benchmark results from Unisa on internal and external communication processes.
Buildmax is committed to making “Efficient Zero Harm Production” a reality and this is achieved with the combined commitment of every member of our team and other relevant stakeholders.
The Lost Time Injury Frequency Rate in the group’s Mining Services operations was 0,05 [calculated as (total injuries x 200 000)/total man hours worked]. This equated to only two incidents during the course of the 2011 financial year – an outstanding achievement when benchmarked against
industry norms.
The group’s construction and manufacturing operations recorded 47 incidents where employees sustained minor injuries. None of these resulted in the ceasing of production activities at any of our plants.
Organisational health and wellness
Buildmax initiated an Organisational Health and Wellness programme that was implemented subsequent to year-end.
The programmes’ goal is to encourage employees to change their lifestyles through organised activities and interventions, and to move towards healthier lifestyle choices and optimal health. The objective of the Employee Wellbeing Programme is to identify health risks, provide health education and influence positive behaviour change as well as to help enhance performance.
A systemic view of Organisational Wellness is imperative. The individual, the team and the organisation’s health and wellness are all intricately linked. The Wellness Programme encompasses supportive measures, as well as educational, proactive or preventative measures. These can be attained through better nutrition, cessation of smoking, weight loss, better management of high blood pressure or high cholesterol or initiating a regular exercise programme, to mention a few. These initiatives reduce the likelihood of chronic health problems developing amongst the staff (which would affect productivity), and can also, in the longer term, lead to healthier and happier employees, which in turn boosts productivity and bottom line.
HIV/AIDS
In the group’s Mining Services operations 2 055 medicals were performed during the period under review. While the group tends to utilise its customers on-site medical facilities, we continue to build heightened awareness of healthy lifestyle choices and support mechanisms through the Employee Wellness programme. At these facilities our workforce is exposed to induction programmes that include awareness and prevention of HIV/AIDS, diabetes, tuberculoses, hypertension, drug and alcohol abuse.
The group recognises that is has a responsibility to ensure fair, compassionate and non-discriminatory treatment of those, who may be impacted by the disease. A policy that encourages training, education, voluntary counselling and testing is being finalised for approval by the Board.
Corporate social investment
The group is committed to identifying and investing in sustainable projects in conjunction with local communities. The group is also committed to taking a holistic and structured approach to corporate social investment.
Some of the corporate social investment projects that the group undertook during the year are:
Warburton Combined School – The Warburton Combined School started in 1936 and has an enrolment of 941 learners, from grade 1 through to grade 12. Most of the learners live in the nearby rural village called Nganga and on neighbouring farms. Unemployment is a general problem in the community, and most of the learners are brought up by members of the extended family whilst others stay alone in child headed households.
Buildmax has agreed to sponsor the material for a new kitchen the school needed to build. Buildmax supplied and delivered all the material required to complete this project.
“Loved Ones of God” project – The centre provides temporary shelter for roughly 100 homeless adults and
25 children of all ages in Brakpan (Gauteng). The centre consists of 25 Wendy houses and caravans, women’s and
men’s hostels.
After establishing the immediate needs of the Centre, Buildmax management and staff donated clothing, blankets, groceries,
toys and books for school projects for the children.
Buildmax has committed to assisting the residents of the Loved Ones of God wherever it can.
Tour de Tuli – Buildmax decided to sponsor a portion of the logistics requirement of this year’s Tour de Tuli. The showers used by the cyclist taking part in this event were transported by Diesel Power in seven light delivery vehicles
sponsored by the same company. Buildmax’s sponsorship, together with donations from several other South Africa companies, ensured that the funds generated from this event are used to ensure that critically threatened environments are conserved through exposing the youth of Southern Africa to their wildlife heritage, which will help them to learn to appreciate the value of our wildlife and wilderness areas as well as its potential to create value and a livelihood for their communities
The Tour de Tuli operates under Tour de Wilderness which is an umbrella brand that manages and coordinates all fundraising activities on behalf of Children in the Wilderness. “Children in the Wilderness” is a non-profit organisation that was created alongside Wilderness Safaris and is a lifeskills educational programme which is aimed at bridging the divide that exists between communities and wildlife.
Vegetable gardens – The group’s quarries are located in regions where little other economic activity takes place. To assist the surrounding communities, management decided to allocate a portion of the group’s vacant land, adjacent to the Alfa/Verlesha quarry, for agricultural purposes. The Metsweding Local Municipality was consulted and approved the project. The quarry operations in the group each contributed financially to the establishment of this project and will continue to fund additional infrastructure development. It has been agreed with the DMR that the project will grow from the initial phase to an agricultural project covering an area of 25ha.
To date the group has undertaken the following tasks:
• Sec
uring property on which to develop the project;
• Erecting a fence around the property;
• Undertook the agricultural planning of the land and installing the necessary infrastructure such as boreholes and irrigation;
• Provided skilled agricultural tutors to train and assist the beneficiaries; and
• Together with the Local Economic Development department of the Metsweding Municipality selecting beneficiaries of the project.
Beadmaking – Crushco and Verlesha have assisted 10 ladies to establish a beadmaking business. This project is currently self-funding through their own marketing initiatives.
