Investing in empowerment and transformation

Investing in empowerment and transformation   Investing in empowerment and transformation

Strategic intent

Enhance our competitiveness, credibility, legitimacy and reputation in the eyes of all stakeholders by leading in broad-based empowerment and transformation.

For Barloworld, empowerment and transformation mean not only building an inclusive and diverse workforce, but also broadening the pool of businesses with whom we partner. In 2014 Barloworld has strengthened its drive to promote diversity and transformation within our value chain, in line with our objective of creating value for all stakeholders.

Sustainable workforce

As we look to 2015 and beyond, our success will depend on the quality of our business decisions. These decisions will need to be made in an organisational culture which is fully representative of our society in terms of race, gender, disability and other forms of diversity. Hence we promote ongoing transformation at all levels of the company in line with our objectives for employment equity.

Towards achieving this goal, we have continued to implement various policies and practices throughout the group. These include:

Identifying and eliminating employment barriers
Eliminating unfair discrimination on the grounds of race, religion, sexual preference, gender or any other basis
Complying with regulations and legislation, including empowerment and transformation, within our operational environments
Subscribing to a Code of Ethics and a Worldwide Code of Conduct to guide and promote sound governance and equal opportunity within our organisation

Barloworld has made solid and steady progress in all aspects of the Department of Trade and Industry’s Broad-Based Black Economic Empowerment (B-BBEE) scorecard. We have built on our past successes with a number of new training and development initiatives in the past year, including executive and management development programmes. Special focus has been placed on diversity and grooming women for leadership, with emphasis on core and critical skills.

As a result of our staff development initiatives, 2014 saw significant increases in the number of black and female employees across Barloworld’s divisions. Diversity within our management and executive ranks was also improved in line with our targets.

Females as % of total headcount (Group)

  2014 2013 2012
Occupational level Female Total % female Female Total % female Female Total % female
Board*   6     6     6  
Executive 7 49 14.3 1 25 4.0 1 26 3.9
Senior management 29 176 16.5 10 87 11.5 8 86 9.3
Middle management 822 2 568 32.0 762 2 553 30.0 739 2 567 28.8
Skilled upper 2 725 10 069 27.1 2 762 10 401 26.6 2 680 10 388 25.8
Semi-skilled/apprentices/trainees 1 174 6 402 18.3 1 135 6 326 18.0 1 162 5 889 19.7
Labour/unskilled 100 346 28.9 84 294 28.6 98 276 35.5
Total 4 857 19 616 24.8 4 754 19 692 24.1 4 688 19 238 24.4
Continuing operations 4 857 19 616 24.8 4 654 19 182 24.3 4 586 18 710 24.5

*Executive directors only.
Note: Classification of executive, senior management and middle management has changed in 2014. This has not been changed for previous reporting periods.

These achievements build upon important milestones in Barloworld’s journey of transformation. These include:

Dominic Sewela, was appointed CEO of Barloworld Equipment southern Africa, effective 1 October 2013 as an executive director of Barloworld board effective
19 March 2014.

Boikanyo Mazibuko was appointed as deputy CEO within our Handling and Agriculture division.

Sibani Mngomezulu was appointed group executive: human resources, strategy and sustainability effective 1 June 2014.

The Barloworld general staff trust, has donated shares with a value of R281 million to 11 531 South African employees prior to the vesting in November 2013.

The Barloworld Education Trust, has since inception awarded 62 bursaries to the value of R4.7 million to 37 beneficiaries – all of whom are previously disadvantaged individuals.

The preliminary report indicates a Level 2 B-BBEE rating for six of the eight Barloworld SA divisions, with Barloworld Motor Retail retaining its Level 3 status and Barloworld Siyakhula at Level 1. These achievements match our current targets and well exceed industry norms.

Barloworld has for the past five years led in the general industrial sector in the Mail & Guardian ranking of top empowered companies.

There are seven black directors on Barloworld’s board, including four women.

Sustainable progress

In 2015 and into the future the ongoing transformation of our businesses will remain one of the key elements of our strategy.

As South Africa continues to redress its historical inequalities, Barloworld will play a constructive role by fostering equal opportunity within our organisation. We believe this to be not only a moral imperative, but an important pre-condition for the sustainability of our business.

Employees by ethnic background – South Africa

  2014 2013 2012
Occupational level AIC# White AIC# White AIC# White
Board* 1 4 1 4 1 4
Executive 11 26 5 13 4 14
Senior management 22 102 16 46 16 41
Middle management 791 1 149 722 1 135 692 1 073
Skilled upper 4 790 2 404 4 548 2 416 4 161 2 386
Semi-skilled/apprentices/trainees 4 631 417 4 373 427 3 568 446
Labour/unskilled 267 4 170 1 163 1
Subtotal by category 10 513 4 106 9 835 4 042 8 605 3 965
Total employees 14 619 13 877 12 570

* Executive directors only.
# African, Indian, Coloured.
Note: Classification of executive, senior management and middle management has changed in 2014. This has not been changed for previous reporting periods.

We remain committed to gender equality and will endeavour to increase our female workforce at all occupational levels, with special emphasis on management – including executive and board levels.

Preliminary B-BBEE reports from Empowerdex indicate that the targets set by our SA divisions have been achieved. Going forward, Barloworld’s action plan will pursue all benchmarks delineated by the B-BBEE scorecard, with specific reference to management and control, employment equity and skills development.

Our B-BBEE levels will be monitored and reported as prescribed by the B-BBEE Codes of Good Practice.

SA business unit  
  B-BBEE level
  2014 * 2013 2012
Equipment 2 2 2
Handling 2 2 3
Avis Rent a Car 2 2 2
Motor Retail 3 3 3
Avis Fleet Services 2 3 3
Logistics 2 2 2
Corporate 2 2 2
Barloworld Siyakhula 1 1 1
Barloworld Limited 2 2 2

* Preliminary report

Supplier diversity and enterprise development

Sustainable supplier diversity

Barloworld continues to position itself as an industry leader in supplier diversity as a strategic necessity in the current market environment. Our commitment has been reflected in the steady improvement of our B-BBEE scorecard ratings.

Policy and implementation

Barloworld has implemented various initiatives to improve efficiency and compliance levels within our supply chain, which we will continue in the coming year. Our commitment begins with our procurement policy, which ensures equal opportunity to diverse, under-represented businesses to supply goods and services within the group. By enshrining this practice throughout our divisions, we aim to strengthen

the resilience of our business model and add value for all stakeholders.

Barloworld Siyakhula

Supplier diversity and transformation within the group is championed by Barloworld Siyakhula, our enterprise development initiative. Through a mix of financial and non-financial support, Siyakhula helps eligible black and women-owned SMEs build the capacity necessary to become competitive suppliers, not only to Barloworld but within the larger marketplace.

Moving forward we will place renewed focus on the creation of black and women-owned enterprises which are strategically positioned for the new global economy. Since inception in 2007, Siyakhula has provided support to 27 enterprises, facilitating job creation and employment for more than 600 people. To date it has been the catalyst for R157 million in enterprise development support for SMMEs.

Key 2014 initiative

Change makes a world of difference – supplier development outreach

In response to the increasing emphasis on transformation and empowerment within our market environment, Barloworld this year implemented an extensive group-wide campaign to heighten B-BBEE compliance within our supply chain. Under the banner “Change makes a world of difference”, the initiative included workshops, seminars and business forums communicating our forward business strategy with suppliers
Through the “Change makes a world of difference” initiative, Barloworld signalled a major shift towards international best practice, prioritising supplier diversity as a crucial component of our corporate strategy
Over 300 of our strategic supply chain partners participated; in the next financial year we have targeted a further 1 000 suppliers who will benefit from this programme

SO1 to SO10

Strategic partnerships

To enhance our efforts to bolster the success rate of black and women-owned businesses, Barloworld Siyakhula has formed strategic partnerships with an array of specialist organisations.

Standard Bank Enterprise Development Unit

Through its Enterprise Development Unit, Standard Bank has committed grant funding of approximately R3.8 million for the support of black-owned SMEs which are part of Barloworld’s supply chain. Assistance will include access to finance, access to markets as well as business development support.

South African Supplier Diversity Council (SASDC)

SASDC is a non-profit organisation that promotes sustainable supplier diversity within South Africa. Through training, mentorship and advisory support, it helps SMEs access corporate supply chain opportunities.

A founding member of SASDC, Siyakhula collaborates with the organisation in ongoing enterprise and supplier development projects.

Empowerdex

Barloworld has engaged Empowerdex to assist in the implementation, monitoring and analysis of the group’s empowerment and transformation.

NBI – Private Sector Energy Efficiency (PSEE) project

The PSEE project, launched by the National Business Initiative, provides support and advice on energy conservation to small, medium and large businesses. With the assistance of the PSEE project, Siyakhula aims to help Barloworld’s SMEs incorporate sustainable business practices within their operations.

Partnership with the Department of Trade and Industry

In line with our support for the industrialisation of local and regional industries, Siyakhula, through the SASDC, has formed a partnership with the Department of Trade and Industry. Through its Incubation Support Programme, the dti will assist Siyakhula to establish business incubators promoting the entrepreneurial empowerment of women and the development of inclusive business markets for SMEs and cooperatives.

Outlook

For over 100 years, one of the cornerstones of our success has been our ability to understand and adapt to the needs of our stakeholders. As we move our business forward into a future defined by change, Barloworld will continue to adapt as we strive for new ways to add value and to do business better.

In addition to our mandate to maximise value for our stakeholders, we appreciate the role of our value chain as a change agent – promoting equal opportunity, inclusivity and socio-economic development in the areas where we do business. We will continue to leverage our resources and partnerships towards these objectives.

CTrack Mzansi

Charlie Pietersen has his hands full. As MD of CTrack Mzansi, his daily chores include running a subsidiary of DigiCore, one of the world’s largest players in the fleet management and tracking industry. Yet, he confirms that the time he has spent with Barloworld Siyakhula as part of its supplier development outreach initiatives has been time well spent.

CTrack Mzansi“You don’t typically find that type of engagement from most suppliers in terms of supplier development. Barloworld Siyakhula has prepared us to think and function more strategically. It’s very rare that you find companies that are willing to spend that type of time and energy on developing small firms like ours. Their outreach programme has been highly beneficial for us.

“Currently, we service Barloworld through BHP Billiton and Avis. We look forward to strengthening our partnership in future through Siyakhula.”

Formed in 2011, CTrack Mzansi is DigiCore’s black empowerment and enterprise development initiative. A young company with a staff contingent of 10 members, it has successfully leveraged the expertise and skills transfer of its parent company to penetrate both private and public sector opportunities in fleet management and tracking. In addition to its supply partnership with Barloworld, CTrack provides services to a host of other blue-chip organisations, including the Department of Labour and Debis (part of the Daimler Chrysler group).