Market presence: EC5 - EC7
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EC5 Range of ratios of standard entry-level wage by gender compared to local minimum wage at significant locations of operation.
Integrated Report:All remuneration and employee benefits are in line with relevant legislation.
Remuneration exceeds legislated minimum country wage levels irrespective of gender. However, where industry-negotiated agreements and other relevant legislation apply, payment is made according to these obligations. Similarly, apprenticeships and learnerships are usually paid at industry levels.
There are no structural disparities by gender in entry level wages.
Given the vast range of countries and industries in which Barloworld operates, as well as the significant number of job categories in the group, it is not practical to disclose all detailed wage minimums as well as related Barloworld levels and ratios although this information is reviewed annually.
However, examples of ratios of standard entry level wages range on average from 1.5 to over 6 times above the local minimum wage in certain African countries, with instances of up to 10 times; 1.5 to 3 times in Europe and in Russia, depending on the region; In South Africa, standard entry level wages are at agreed or above industry levels.
As noted, the material issue for the group is that it does not pay below minimum legislated wage levels, is not exposed to risk in this regard and that its remuneration policy aligns with its need to attract and retain the required talent to realise its value creation objectives.
As the group has implemented the Towers Watson (TW) global grading system in all operations, its positions are graded accordingly. Wage and salary levels are benchmarked by country and category. This ensures equity and non-discrimination in remuneration practices.
Remuneration practices are regularly reviewed and the group is committed to removing any unfair discrimination in pay scales. In South Africa, differentials are disclosed in terms of employment equity legislation.
Group policies and practices are fair and do not unfairly discriminate based on gender.
Executive increases
In salary review for the 2014/2015 period, executive increases were in line with those generally granted across the organisation.
In the remuneration review for 2015/2016 period, the executive committee members, including the CEO did not receive an increase. Similarly, executives and employees in certain business units did not receive salary increases due to difficult commercial circumstances. In the remainder of the group employees received increases, the quantum varying widely across employee categories, business units and regions of operation.
CEO remuneration
For the period from 1 October to 30 September the CEO total remuneration was R14.9 million. This includes salary; retirement and medical contributions; car benefits; other and bonus. It excludes long-term incentives (see 2015 Barloworld Remuneration report – 2015 Total remuneration outcomes).
During the same period, total remuneration paid to 19 744 employees (excludes CEO) was R8 940.1 million. This includes salaries, wages, overtime payments, commissions and allowances as well as retirement and medical contributions and insurance (see 2015 Barloworld Integrated Report – Statement of total value added for the period ending 30 September 2015 for value distributed to employees).
This resulted in an average amount paid to employees during the period of R452 802.
In the circumstances, the ratio of CEO compensation to the average of all employees during the period was 32.9.
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EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
Integrated Report:This is Barloworld - Value added highlights This is Barloworld - Statement of total value added 2015 progress review - Strategic focus area - Empowerment and transformation People - Number of employees Diversity and inclusion - Employees by ethnic background - South Africa Diversity and inclusion - Localisation Sustainable development - Responsible value chainBarloworld is committed to stakeholder value creation and supporting local communities as far as possible. A significant aspect of this spend is remuneration for locally resident employees. The number of employees by region who benefit from employment is reflected below.
Workforce by Region 2015 2014 2013 RSA 15 095 14 619 13 877 Rest of Africa 2 354 2 357 2 418 UK & Europe & Russia 2 145 2 472 2 632 Middle East & Asia 146 161 242 North America 5 7 13 Total 19 745 19 616 19 182 By operating in communities, Barloworld creates significant value for local suppliers including Original Equipment Manufacturers (OEMs) and sub-contractors. This is reduced where plant and equipment can only be sourced from offshore principals, in which event the commitment is to spend the balance locally.
In South Africa, Equipment divisions' products are sourced from overseas principals resulting in some 25% local spend (as at 30 September 2015), while Automotive and Logistics division sources vehicles through local OEMs resulting in 99% (including salaries and wages) of its spend being locally based. Sourcing varies by regions of activity and division. Handling South Africa sources some 37% from local suppliers, given most of its purchases are sourced from its overseas principals. In Russia, given the nature of the Equipment business and sourcing Caterpillar product, some 40% of total spend is on local suppliers.
Logistics business sub-contracts a large portion of its business to local contractors. Its freight management services' spend is with international airlines and shipping companies as well as international customs clearing agents and accordingly is weighted towards international suppliers
Direct value for communities includes the group's support for enterprise and supplier development initiatives under Barloworld Siyakhula and other community investment activities.
These principally benefit communities in South Africa, with R187 million in accumulated funds invested for enterprise & supplier development initiatives over an eight-year period.
Indirect economic impacts include: employee spending, the provision of products and services, community development , and job creation, reducing demand on the fiscus and enabling resources to be redirected to other areas of the economy.
In South Africa, an effective way of bringing previously disadvantaged groups into the economy is through procurement. Preferential procurement practices vary by business unit and are influenced by the source and nature of their requirements, as well as the Broad-Based Black Economic Empowerment (B-BBEE) status of represented OEMs/suppliers
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EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
Integrated Report:2015 progress review - Strategic focus area People - Number of employees Diversity and inclusion - Employees by ethnic background - South Africa Diversity and inclusion - LocalisationAt Barloworld, unfair discrimination based on gender, race, religion, sexual preference or age is not permitted. All employees have access to the same opportunities. In South Africa, historically disadvantaged South Africans or HDSAs are actively recruited and promoted. Transformation objectives in this country ensure a commitment to local recruitment and employee development. In other regions, applicable localisation requirements also inform recruitment procedures.
In South Africa, mandatory employment equity plans and progress reports are submitted to the Department of Labour. These set out employment targets that address race, gender and disability. Over and above this, some divisions within the group have implemented localisation targets for their African operations.
Where the required skills are not available, the focus is on expatriate assignments, with the commitment to develop a local skills base. There is a small contingent of 261 international assignees who principally support operations in southern Africa. Senior managers in all divisions are mostly locally based, with 18 currently in expatriate positions.
Overall 1.32% of employees are expatriates, with the balance of 19 484 (98.7%) employees hired from the respective local communities. We comply with legislation when recruiting locally and procedures for hiring include advertising, developing people from within the company, involvement in the community and schools to source potential employees and learners.
Empowerment and transformation legislation and objectives in South Africa ensure commitment to local recruitment and development of employees (see table below for breakdown of employee profile). In other regions localisation requirements also inform recruitment procedures.
Workforce by Region 2015 2014 2013 RSA 15 095 14 619 13 877 Rest of Africa 2 354 2 357 2 418 UK & Europe & Russia 2 145 2 472 2 632 Middle East & Asia 146 161 242 North America 5 7 13 Total 19 745 19 616 19 182 Note - categorisation of Executive, Senior Management and Middle Management levels was changed from 2014.
2015*** 2014 2013 AIC** White AIC** White AIC** White Board* 1 3 1 4 1 4 Executive 13 25 11 26 5 13 Senior Management 29 93 22 102 16 46 Middle Management 798 1 150 791 1 149 722 1 135 Skilled Upper 4 934 2 421 4 790 2 404 4 548 2 416 Semi skilled/apprentices trainees 4 912 422 4 631 417 4 373 427 Labour/Unskilled 293 1 267 4 170 1 Sub total 10 980 4 115 10 513 4 106 9 835 4 042 Total South Africa 15 095 14 619 13 877 * Excludes non-executive directors * AIC - African, Indian, Coloured *** Included are 357 Foreign Nationals Note – the reporting format has changed from 2015 to indicate the number of Foreign Nationals separately. The classification of Foreign Nationals is defined in the Employment Equity Act
Male Male Female Female Foreign Nationals Grand Occupational Level African Coloured Indian White Total African Coloured Indian White Total Male Female Total Board* 1 0 0 3 4 0 0 0 0 0 0 0 4 Executive 4 1 3 22 30 3 1 1 2 7 1 0 38 Senior Management 2 2 10 79 93 10 3 2 11 26 3 0 122 Middle Management 171 95 191 765 1 222 158 65 107 383 713 10 3 1 948 Skilled Upper/Technical 1 951 740 654 1 635 4 980 912 372 263 781 2 328 42 5 7 355 Semi-skilled/Apprentices/Technical trainees 3 162 423 201 254 4 040 576 145 115 168 1 004 285 5 5 334 Labour/Unskilled 171 12 6 1 190 95 6 0 0 101 2 1 294 Grand Total 5 462 1 273 1 065 2 759 10 559 1 754 592 488 1 345 4 179 343 14 15 095 - Excludes non-executive directors
Note - categorisation of Executive, Senior Management and Middle Management levels was changed in 2014.