INTEGRATED ANNUAL REPORT 2011 GRI RESPONSES  

Management approach disclosures

Employment

Barloworld understands that its employees are the foundation of its success and achieving its 20153 vision. This is captured in the slogan '20153 ...driven by you’.
Accordingly, ‘people’ is identified as one of our strategic focus areas.

One of the group’s most vital attributes is creating value through - and for - employees by attracting, developing and retaining globally competitive people necessary to implement our strategy and meet our growth targets.

Specific activities in this regard include developing internal human resources for promotional opportunities through detailed development needs analysis per person, leadership/management development programmes, and continued focus on technical skills upliftment.

We have identified six critical success factors to ensure optimal value creation for and by employees.

  • Clear purpose and direction defined, communicated, understood and owned at organisational, team and individual level
  • An inspiring, caring, equitable and professional climate
  • Alignment of value drivers, organisational culture and design
  • Sustainable competence and intellectual capital
  • Performance management at organisational, team and individual levels
  • Relevant structured team forums which access, facilitate and harness our collective wisdom

This approach is implemented across the group in a range of interfaces and interventions. An Individual Perception Monitor (IPM) surveys employee attitudes on the status of the six critical success factors and an overall category that examines the extent to which employees are committed to the company. These results are used to identify areas for attention. It has a four point scale and the group target is a rating of at least three in all business units for all factors. Scores of above three are considered excellent. The IPM survey is usually conducted bi-annually.

Labour/management relations

Collective labour relations are constructively managed based the principle of freedom of association. Employees may associate or not with representative organisations and trade unions. Trade unions that are sufficiently representative of employees are recognised at appropriate operational levels, and operations covered by industry agreements participate in relevant industry forums. There are no operations where the right to exercise freedom of association and collective bargaining is at significant risk.

Employee representatives, including trade unions, worker committees, health and safety committees and industry bodies are openly engaged at appropriate levels in the organisation and in South Africa, work skills and employment equity forums are established. Similar initiatives take place in the group’s Iberian operations.

There are no formal health and safety agreements with trade unions although this aspect is regularly included on the agenda of meetings with management in the various operations. Businesses that operate under industry agreements with unions are covered to the extent that these issues are addressed at industry level.

Occupational health and safety

The group has a philosophy of ‘zero injuries or harm’ to employees. Business units operate under a strict risk management audit protocol incorporating health and safety.

Occupational health and safety (OHS) standards are covered by prevailing legislation. Barloworld operations conform to the principles of the International Labour Organization’s (ILO) Guidelines on Occupational Health and Safety.

OHS is the direct responsibility of divisional CEOs. Formal health and safety committees with management and worker representatives cover all South African staff. The Netherlands and Belgium operations also have such committees. Elsewhere,  applicable laws cover staff in Iberian, UK and US operations.

Training and education

Value creation through and for employees by attracting, developing and retaining globally competitive people is necessary to implement the group’s strategy and meet its growth targets. This remains one of the group’s most vital attributes. Specific activities include developing internal human resources for promotional opportunities through detailed development needs analysis per person, leadership/management development programmes, and a continued focus on technical skills upliftment.

Barloworld recognises that achieving its vision and sustainable value-creation objectives rests on the ability of its people. Having the right calibre of employees, which covers attracting, developing and retaining talented and globally competitive employees, is central to ensuring competence and intellectual capital in the group.

This objective is achieved through focused talent identification, recruitment, individual employee development plans, career-paths, training and development programmes, competitive reward systems and careful succession planning.

Diversity and equal opportunity

Barloworld has identified empowerment and transformation as a strategic focus area and central to its success. The group understands the competitive advantage inherent in a diverse workforce and is committed to an employee profile that reflects the demographics of the countries in which it operates.

Central tenets of the group’s approach to equality include:
• No unfair discrimination on the grounds of gender, race, religion, disability or sexual preference
• Proactive pursuit of programmes and initiatives to achieve its equality objectives
• Complying with legislation in all countries in which it operates.

By identifying empowerment and transformation as a strategic focus area, we ensure group and individual commitment to equality in the workplace across all operations.

Race, gender and disability are addressed in employment equity, transformation and empowerment targets in South Africa in line with legislation. Localisation and gender objectives are set in non-South African operations. Required employment equity plans and progress reports are submitted in South Africa and other southern African countries. These plans set out employment targets that address race, gender and disability.

In South Africa, Barloworld follows the Department of Trade and Industry’s (DTI’s) broad-based black economic empowerment (BBBEE) scorecard with the target for all South African operations to achieve a level 2 or 3.

Equal remuneration for women and men

Remuneration and employee benefits are attractive, well-structured and competitive. All remuneration and employee benefits are aligned with legislation.

Remuneration practices are regularly reviewed and the group is committed to removing unfair discrimination in pay scales. In South Africa, pay differentials are disclosed in terms of employment equity legislation. A review of executive and senior management remuneration indicates a small variance of 5.8% and 2.6% respectively in favour of males. This is linked to tenure and role and does not reflect entrenched discrimination.

Male and female income levels are continually reviewed and unfair anomalies will be addressed.

We have implemented the Towers Watson global grading system in all operations, and our positions are graded accordingly. Wage and salary levels are benchmarked by country and category. This ensures equity and non-discrimination in remuneration practices