Market presence: EC5 - EC7

  • EC5 Range of ratios of standard entry-level wage by gender compared to local minimum wage at significant locations of operation.

    Integrated Report 2014:

    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.

    However, examples of ratios of standard entry level wages range from 1.5 to over 6 times above the local minimum wage in certain African countries; 1.5 to 3 times in Europe and in Russia, depending on the region, 1.5 to 4 times above the local minimum wage in RSA. In addition, 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 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 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.


  • EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

    Integrated Report 2014:

    Barloworld 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:

      2014 2013 2012 2011  
    RSA 14 619 13 877 12 570 11 403  
    Rest of Africa 2 357 2 418 2 334 1 905  
    UK & Europe & Russia 2 472 2 632 3 548 3 743  
    Middle East & Asia 161 242 244 291  
    North America 7 13 14 837  
    Total 19 616 19 182 18 710 18 179  
    Numbers exclude Australia

    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 26% local spend (as at 30 September 2014), 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 15% 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 equipment was purchased within Russia but relate to imported products. Excluding these imported products from the spend analysis, Handling Russia spent <5% of its total spend locally. Whilst, international sourcing of products within the Agriculture Russia business leaves little opportunity for local spend, AGCO products are sourced from local suppliers within Russia and SEM products from a related company based in Russia. Handling operations in Mozambique support locally sourced products and services where possible, however, most parts and equipment are sourced from its principal outside Mozambique.

    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 development initiatives under Barloworld Siyakhula and other community investment activities.

    These principally benefit communities in South Africa with accumulated funds of  R155 million  for enterprise development initiatives over a seven year period and R40.8 million invested through the groups social economic development programmes over a five year period.

    Indirect economic impacts include: employee spending, providing products and services, enhancing the image and reputation of areas, and job creation which reduces demand on the fiscus and enables resources to be redirected to other areas.

    In South Africa, an effective way of bringing previously disadvantaged groups into the economy is through procurement. Preferential procurement varies by business unit and is 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. At group level, some R3.8 billion is procured from black owned and empowered suppliers, in terms of the dti's B-BBEE codes of good practice.
  • EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

    Integrated Report 2014:

    At 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 275 international assignees who principally support operations in southern Africa. Senior managers in all divisions are mostly locally based, with 17 currently in expatriate positions.

    Overall 1.40% of employees are expatriates, with the balance of 19 341 (98.59%) 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

      2014 2013 2012 2011  
    RSA 14 619 13 877 12 570 11 403  
    Rest of Africa 2 357 2 418 2 334 1 905  
    UK & Europe & Russia 2 472 2 632 3 548 3 743  
    Middle East & Asia 161 242 244 291  
    North America 7 13 14 837  
    Total 19 616 19 182 18 710 18 179  
    Numbers exclude Australia

    Employees by ethnic background in South Africa

      2014 2013 2012 2011  
      AIC White AIC White AIC White AIC White  
    Board * 1 4 1 4 1 4 1 4  
    Executive 11 26 5 13 4 14 4 13  
    Senior Management 22 102 16 46 16 41 14 41  
    Middle Management 791 1 149 722 1 135 692 1 073 648 1 006  
    Skilled Upper 4 790 2 404 4 548 2 416 4 161 2 386 3 794 2 189  
    Semi skilled/apprentices/trainees 4 631 417 4 373 427 3 568 446 3 106 383  
    Labour/Unskilled 267 4 170 1 163 1 199 1  
    Total 10 513 4 106 9 835 4 042 8 605 3 965 7 766 3 637  
    * excludes non-executive directors
    * AIC: African, Indian, Coloured

    Note - categorisation of Executive, Senior Management and Middle Management levels was changed in 2014.

    Workforce in South Africa - 2014 - Race and Gender

      Male Male
    Total
    Female Female
    Total
    Grand
    Total
     
      African Coloured Indian White African Coloured Indian White  
    Board * 1 0 0 4 5 0 0 0 0 0 5  
    Executive 4 1 3 23 31 2 0 1 3 6 37  
    Senior Management 2 2 7 91 102 8 2 1 11 22 124  
    Middle Management 166 105 204 767 1 242 148 69 99 382 698 1 940  
    Skilled Upper 1 899 755 664 1 628 4 946 856 359 257 776 2 248 7 194  
    Semi skilled / Apprentices/ Technical Trainees 3 239 437 215 249 4 140 474 140 126 168 908 5 048  
    Labour/Unskilled 164 10 8 4 186 77 8 0 0 85 271  
    Grand Total 5 475 1 310 1 101 2 766 10 652 1 565 578 484 1 340 3 967 14 619  
    * excludes non-executive directors

    Note - categorisation of Executive, Senior Management and Middle Management levels was changed in 2014.