Barloworld

Diversity and inclusion

Diversity and inclusion

Diverse workforce

Diverse insights and perspectives are required to sustain business success in today’s complex global economy, making diversity and inclusion a business imperative.

We remain committed to building a workforce that reflects the communities in which we operate. As a world-class organisation with a broad array of stakeholders, we believe diversity helps us to maintain our winning edge. Within all areas of our business we strive to create an inclusive talent pool that taps into the vast potential found across race, gender, age, sexual orientation and other demographics.

Diversity is key to our strategy of creating shared value within our business. We have intensified our efforts to entrench diversity and inclusiveness in all our operations through training, mentorship and recruitment programmes designed to heighten our responsiveness to an evolving society.

		2015*				2014		2013
Employees by ethnic background – South Africa		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	150			791	1 149	722	1 135
Skilled upper		4 934	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.
^#African, Indian and Coloured.
⁺Included are 357 foreign nationals.

		Global breakdown – 2015					Global breakdown – 2014			Global breakdown – 2013
Females as a % of total headcount		Female	Total	% Female			Female	Total	% Female	Female	Total	% Female
Board*		0	5	0.00			0	6	0.00	0	6	0.00
Executive		8	51	15.69			7	49	14.29	1	25	4.00
Senior management		31	170	18.24			29	176	16.48	10	87	11.49
Middle management		832	2 516	33.07			822	2 568	32.01	762	2 553	29.85
Skilled upper		2 759	10 070	27.40			2 725	10 069	27.06	2 762	10 401	26.56
Semi-skilled/apprentices/trainees		1 258	6 558	19.18			1 174	6 402	18.34	1 135	6 326	17.94
Labour/unskilled		118	375	31.47			100	346	28.90	84	294	28.57
Total operations		5 006	19 745	25.35			4 857	19 616	24.76	4 754	19 692	24.14
Total continuing operations		5 006	19 745	25.35			4 857	19 616	24.76	4 654	19 182	24.26

*Excludes non-executive directors.

Broad-based Black Economic Empowerment

We have maintained our momentum with respect to the Department of Trade and Industry’s Broad-Based Black Economic Empowerment (B-BBEE) scorecard including the key elements of management control and employment equity. Special emphasis is being placed on building leadership capacity among women.

SA business unit

B-BBEE level			2015			2014	2013
Equipment			2			2	2
Handling			2			2	2
Car Rental			2			2	2
Motor Retail			4*			3	3
Avis Fleet			4*			2	3
Logistics			2			2	2
Corporate			2			2	2
Barloworld Siyakhula			1			1	1
Barloworld Limited			2			2	2

*Rated under new dti codes.

Closure of 2008 B-BBEE transaction

The amendments to the transaction involving the six strategic black partners and the three community service groups were approved by shareholders at the general meeting of 19 June 2015. In terms of the amendments, the compulsory obligation by the B-BBEE participants to subscribe for shares in Barloworld in excess of what could be funded from available cash resources was terminated and the restrictions imposed upon them relating to those shares was also removed.

In terms of the transaction the company issued 1 590 622 shares to the participants on 5 November 2015 at an agreed price of R179.69 generating proceeds of R285.8 million. To further the objective of increasing black ownership in Barloworld, the company issued 450 000 additional shares to the participants at a subscription price equal to par value of 5 cents per share.

As at 30 September 2015 the company had repurchased 450 000 shares in the open market of the total buy-back commitment of 2 040 622 shares required to minimise the dilution impact of the transaction on Barloworld shareholders.

The 2008 transaction also included a Black Managers Trust (BMT) set up to reward and retain black managers in the group. This element of the transaction terminated without any value accruing to any of the participants. The board was of the opinion that the black managers play a vital part in the success of the company and therefore approved an ex gratia payment based on the original rules of the BMT. This resulted in 183 current and past black mangers receiving a R46.4 million cash award as recognition of their contribution over the past seven years.

Supplier diversity

Our supplier development strategy is informed by global best practice, which seeks to strengthen efficiencies within the traditional supplier base while also increasing capacity and procurement among non-traditional, historically disadvantaged service providers. In an increasingly multi-cultural marketplace, these efforts are essential to promoting sustainability and creating value among our stakeholders.

Diversity and inclusion within our supply chain is championed by Barloworld Siyakhula, our enterprise and supplier development arm. Siyakhula was founded in 2007 in response to the drive towards black economic empowerment and transformation in South African business.

SO1 to SO10

Supplier development workshops

Building upon their successful launch in 2014, we continued group-wide supplier development workshops in 2015 and more will follow in 2016.

There have been several positive outcomes of this initiative.

• Over 600 new suppliers were engaged in line with transformation and black empowerment within our supply chain.
• Various business units – along with their respective suppliers – have engaged with Siyakhula towards furthering their B-BBEE compliance.
• All Barloworld divisions are accelerating empowerment within their procurement operations.

Barloworld Siyakhula added a number of transactions to its roster of successful empowerment initiatives.

Strategic partnerships

Barloworld’s forward strategy recognises the need to leverage partnerships and this year we intensified our collaboration with various organisations in the financial, government and private sectors to unlock value for our stakeholders. These include the South African Supplier Diversity Council, Standard Bank, the Department of Trade and Industry, the National Business Initiative and Empowerdex.

Localisation

In line with the dti’s strategic emphasis on growing South Africa’s local industrial base across various sectors, Barloworld has continued to pursue partnerships with key stakeholders. Steady progress is being made towards the formation of joint ventures and initiatives promoting localisation.

We also continued to engage our principals to identify opportunities for local manufacture of parts and content as we promote beneficiation and skills transfer in line with South Africa’s National Development Plan (NDP).

While we develop large-scale macro projects, Siyakhula also identifies smaller initiatives with the potential to impact local communities.

Outlook

Diversity and inclusion are key elements of our strategic vision and indispensable tools for a successful organisation from a business and ethical perspective.

As part of our Vision 2020 we have set diversity and inclusion targets for race and gender, as well as a target for our B-BBEE rating level under the new dti Codes of Good Practice.

We will continue our drive to promote excellence and opportunity across our workforce by:

• Instilling a culture of collaboration, flexibility and high performance among employees
• Promoting empowerment and transformation at all levels in accordance with our internal targets and legislation
• Further entrenching the Barloworld Code of Ethics and the Worldwide Code of Conduct into our organisational culture
• Fostering fairness and equality within our work environments irrespective of gender, race, creed and other forms of diversity
• Implementing a standardised index report to monitor our quarterly progress and status on diversity
• Continuing diversity-focused internship programmes
• Promoting further flexibility within our organisation with respect to how, when and where work gets done.