Equality, empowerment and transformation


> Addressed in code of ethics, worldwide code of conduct and related policies

We understand that equity is central to achieving equal employment opportunities and the principle is applied fairly and justly. Equally, we value the competitive advantage inherent in a diverse workforce and are committed to an employee complement that reflects the demographics of the countries in which we operate.

Working towards gender equality is central to Barloworld’s value creation. We regard gender equality as a human right and believe men and women have equal value and should be accorded equal treatment.

Central tenets of our approach to equality include:

To identify and eliminate employment barriers
Proactive pursuit of programmes and initiatives to achieve our equality objectives
No unfair discrimination on the grounds of gender, race, religion, disability or sexual preference
Complying with regulation and legislation in all countries in which we operate.

The South African divisions of Barloworld are aligned to the structure set out by the Department of Trade and Industry’s (dti’s) broad-based black economic empowerment (B-BBEE) scorecard. The target for all South African operations is to achieve or maintain a B-BBEE Level 2 or 3.

Identifying empowerment and transformation as one of Barloworld’s six strategic focus areas ensures group and individual commitment to equality in the workplace and across all operations.

Race, gender and disability are addressed in employment equity as well as in transformation and empowerment targets in South Africa, in line with legislation. Localisation and gender objectives are set for non-South African operations. Required employment equity plans and progress reports are submitted in South Africa and some southern African countries. These plans set out employment targets that address race, gender and disability. In addition, in South Africa, the dti’s B‑BBEE scorecard sets out thresholds to be reached for specified levels of accreditation.

Diverse board of directors 2011   2010
Black directors 7   7   7  
White directors 8   8   7  
Male directors 13   13   12  
Female directors 2   2   2  
South African directors 12   12   11  
Non-South African directors 3   3   3  
Executive directors 6   6   5  
Non-executive directors 9   9   9  

The group’s remuneration practices are reviewed regularly. We have implemented the Towers Watson global grading system in all operations. Wage and salary levels are benchmarked by country and category. This ensures equity and non-discrimination in remuneration practices. In South Africa, pay differentials are disclosed in terms of employment equity legislation.

Policies and processes to address any allegations or instances of discrimination are entrenched. These include transparent grievance and disciplinary procedures that allow union or industry support, the anonymous Barloworld ethics line and prevailing legal systems. Victimising complainants is prohibited in the group.

Employees by employment category and gender – group

  2011 2010
Category Male   Female   Total   Male   Female   Total   Male   Female   Total
Board* 6       6   6       6   5       5
Executive 25   1   26   21   2   23   25   2   27
Senior management 79   6   85   75   6   81   68   8   76
Middle management 1 814   720   2 534   1 794   681   2475   1832   638   2470
Skilled upper 7 282   2 477   9 759   6 838   2 332   9170   6436   2087   8523
Semi skilled/ apprentices/trainees 4 699   1 237   5 936   4 682   1 241   5923   5039   1383   6422
Labour/unskilled 212   113   325   360   129   489   447   143   590
Total 14 117   4 554   18 671   13 776   4 391   18 167   13 852   4 261   18 113

* Includes executive directors only.

The two cases of discrimination mentioned in the 2010 report were cleared during the year at no expense. In Handling SA, two cases were raised in 2011; both were thoroughly investigated and are closed.

Barloworld is committed to increasing its female workforce in all occupational categories, including management. Special emphasis and focus areas include improving the ratio at senior management, executive and board levels.

Transformation in South Africa

> Regulatory empowerment framework implemented
> All operations except for one, achieved a B-BBEE rating of Level 2
> Employment equity targets set and legislated reports submitted
> Black CEOs for two major business units, and a black deputy CEO appointed for corporate office
> Focus on improving management and control, employment equity, skills development and preferential procurement, particularly with black-owned and women-owned entities
> Barloworld Siyakhula reaches R48 million in enterprise development support
> Barloworld has provided R26.7 million for socio-economic development over the past four years in South Africa

Our approach to broad-based black economic empowerment or B-BBEE focuses on achieving leadership in this critical aspect of the country’s development. In the realm of transformation and empowerment, we have always planned to exceed the minimum requirements of B-BBEE legislation and to set the benchmark for our sector.

We support the purpose of transformation which is to address the systematic exclusion of most South Africans from full participation in the economy, particularly black South Africans, people with disabilities and women. Our aim is to significantly increase representation by these groups, particularly in leadership positions. We believe empowerment and transformation make commercial sense as they improve the sustainability of South Africa by broadening economic activity. Accordingly, empowerment and transformation is one of Barloworld’s six strategic focus areas.

B-BBEE ratings in terms of the Department of Trade and Industry’s (dti) scorecard

While great progress has been made, transformation and empowerment remain a key focus area for Barloworld. In the annual assessment by Financial Mail and Empowerdex of South Africa’s top empowerment companies, Barloworld currently leads the general industrial sector. Among the top 100 listed companies, Barloworld ranks 18th – up from its previous ranking of 21. Our B-BBEE target is for all South African operations to maintain at least Level 2 or 3 by end 2012, notwithstanding the stricter targets which become effective next year.

These ratings also enhance our competitive advantage as they allow customers to count over 125% of their procurement spend with Barloworld as BEE-related procurement on their own scorecards.

Barloworld’s 2008 B-BBEE transaction included all South African employees, a number of community service groups, an educational trust and strategic black partners.

The transaction involved transferring R2.4 billion worth of Barloworld shares (10%) and achieved an effective 29% empowerment of the South African operations.

The general staff trust has paid two dividends per year totalling R11.5 million since inception and beneficiaries did not pay for their shares. The Barloworld education trust awarded bursaries to 14 black students for the 2011 academic year and also received two dividends during the year, totalling R553 380.

B-BBEE ratings in terms of the Department of Trade and Industry’s (dti) scorecard

SA business unit 2011   2010
Equipment 2   2   3  
Motor retail 3   3   3  
Avis Fleet Services 2   2   4  
Avis Rent a Car 2   2   2  
Logistics 2   3   4  
Handling 2   3   3  
Corporate 2   2   4  
Barloworld Siyakhula 1   1   1  

The community service group partners participating in Barloworld’s empowerment transaction are:

DEC Investment Holding Company which addresses disability and empowerment concerns
Shalamuka Foundation which ensures the sustainability of the largest whole school development programme in Africa
Ikamva Labantu Empowerment Trust which provides for the needs of disadvantaged communities.

BET bursars meet CEO
The Barloworld Education Trust bursars were invited to attend a session with the CEO, Clive Thomson, and the divisional CEOs for a bursar breakfast to meet and understand the “Barloworld Way” and the important role they play in the future of Barloworld

Given the nature of the group’s South African ownership and B-BBEE transaction structure, the business units are all highly rated under the ownership element of the scorecard. Substantial progress has been made in the management and control element, with Barloworld Equipment South Africa, and Motor Retail Southern Africa run by black CEOs. Good progress was made during the year on the employment equity and skills development elements of the scorecard due to focused recruitment and extensive training and development activities. These are complemented by employment equity legislation that requires targets and workplace skills plans for all operations.

Preferential procurement from local empowered suppliers varies by business unit and is influenced by the source and nature of their respective products, as well as the B-BBEE status of represented OEMs/ suppliers. Scores out of 20 range from 12.86 to 19.18, reflecting roughly R13 billion spent during the year.

The number of African, Indian and Coloured (AIC) employees in South Africa in senior management, middle management, skilled upper and semi-skilled levels improved during the year. This reflects the continued focus on identifying and developing employees for promotional opportunities and attracting talent from the external market.

Employees by ethnic background in South Africa

  2011 2010
Category AIC**   White   AIC**   White   AIC**   White  
Board* 1   4   1   4   1   3  
Executive 4   13   5   8   6   12  
Senior management 14   41   11   42   9   40  
Middle management 648   1006   621   1003   509   1009  
Skilled upper 3794   2189   3654   2235   3379   2347  
Semi skilled/ apprentices/trainees 3106   383   3076   383   2980   463  
Labour/unskilled 199   1   222   2   257   3  
Total 7766   3637   7590   3677   7141   3877  
* Includes executive directors only.
** African, Indian, Coloured

Barloworld Education Trust

> Established as part of group’s empowerment transaction in 2008
> Facilitates empowerment through education
> Supports company’s skills pipeline
> 14 black bursars for 2011 academic year

The Barloworld Education Trust is one of the trusts established when Barloworld concluded its major empowerment transaction. This trust’s aim is to facilitate broad-based black economic empowerment through education.

Currently bursaries have been awarded to 14 black students for the 2011 academic year, who are studying engineering, quantity surveying, information technology and logistics at South African universities and colleges.

The bursaries are annual allocations and are reviewed based on the bursar’s academic results and vacation work reports. New applications are considered in addition to the existing bursary recipients.