Broad-Based Black Economic Empowerment
The group has achieved a BBBEE Level 2 for 2017 based on the DTI Generic Codes.
B-BBEE Scorecard (2016 - 2017)
BBBEE elements | Weighting points | DTI Generic scorecard F2017 |
DTI Generic scorecard F2016 |
---|---|---|---|
Ownership | 25 | 25 | 25 |
Management control | 15 | 9.62 | 6.08 |
Skills development | 20 | 12.97 | 14.78 |
Enterprise and Supplier development | 40 | 42.86 | 40.51 |
Socio-economic development | 5 | 4.65 | 5 |
Total | 105 | 95.10 | 91.37 |
B-BBEE level | 2 | 3 |
B-BBEE Scorecard (2014 - 2015)
Core components | B-BBEE elements | Weighting points | Construction Charter scorecard F2015 |
Construction Charter scorecard F2014 |
Direct empowerment | Ownership | 25 | 25 | 25 |
Management control | 10 | 5.10 | 4.42 | |
Human resource empowerment | Employment equity | 10 | 4.35 | 3.96 |
Skills development | 15 | 14.64 | 14.73 | |
Indirect empowerment | Preferential procurement | 20 | 19.0 | 19.1 |
Enterprise development | 15 | 15 | 15 | |
Socio-economic development | 5 | 5 | 5 | |
Total | 100 | 88.12 | 87.22 | |
B-BBEE level | 2 | 2 |
Ownership
Group Five has achieved 25 points out of a target of 25 for the ownership element in 2016.
The group concluded a broad-based black economic empowerment (BBBEE) transaction in September 2005 that resulted in 26.1% of its enlarged share capital being made available to black South Africans. The offer constituted three key elements, namely: Broad-based employee scheme (0.48%), Black managers’ scheme (1.94%) and the iLima consortium and the Mvelaphanda Group Limited. The largest part of the transaction was the issuing of 21.6% of share capital equally to the two parties. The Broad-Based Employee Scheme and the Black Management Share Scheme have reached their natural conclusion having achieved their intended objectives. The remaining elements of this transaction were concluded with the unbundling of Mvelaphanda.
The Group Five Black Professionals Staff Trust was launched in 2013 making up 9.23% of the Group Five issued share capital as at the end of 30 June 2016. Izakhiwo Imfundo Trust was officially launched on the 30th of June 2016 and made up 1.78% of the Group Five issued share capital as at the end of 30 June 2016.
Group Five BBBEE ownership transaction current status:
30 June 2016 | 30 June 2015 | 30 June 2014 | ||||
---|---|---|---|---|---|---|
Number of shares | Shareholding | Number of shares | Shareholding | Number of shares | Shareholding | |
Black Management Scheme | 583 631 | 0.52% | 698 394 | 0.62% | 893 249 | 0.8% |
Black Professionals Staff Trust | 10 356 865 | 9.23% | 12 356 865 | 11.02% | 12 356 865 | 11.02% |
Izakhiwo Imfundo Trust | 2 000 000 | 1.78% | - | - | - | - |
Total | 12 940 496 | 11.53% | 13 055 259 | 11.64% | 13 250 114 | 11.82% |
Management
Executive management remained constant at 25%; Senior and Middle management levels improved. Senior management improved from 28% to 31%; middle management from 30% to 32%. However, junior management reduced from 78% to 74% mainly due to retrenchments.
The table below shows the profile of black management by empowerment category F2016 and F2015:
Total South African workforce F2016 | Total South African workforce F2015 | |||||||
---|---|---|---|---|---|---|---|---|
Level | White | AIC* | Total | AIC % of total | White | AIC* | Total | AIC % of total |
Executive management | 6 | 2 | 8 | 25 | 6 | 2 | 8 | 25.00 |
Senior management | 22 | 10 | 32 | 31 | 23 | 9 | 32 | 28.13 |
Middle management | 282 | 130 | 412 | 32 | 326 | 140 | 466 | 30.04 |
Junior management | 503 | 1 399 | 1 902 | 74 | 698 | 2 495 | 3 193 | 78.14 |
*African, Indian and Coloured
Employment equity
Sustainability indicator | F2016 | F2015 | F2014 | F2013 |
---|---|---|---|---|
Total employee headcount (all employees) | 9 313 | 9 778 | 14 485 | 13 659 |
Number of unionized employees | 1 442 | 2 115 | 2 494 | 2 120 |
% of permanent employees on medical schemes | 43 | 54 | 46 | 49 |
% of employees over-border | 24 | 24 | 24 | 25 |
% of black employees within the South African permanent workforce | 88 | 88,5 | 89 | 89 |
% of black employees in Peromnes grades 1 – 3 (executive and senior management) | 30 | 28 | 21 | 19 |
Number of black male bursary students | 61 | 66 | 63 | 42 |
As a % of total bursary students | 52 | 59 | 57 | 55 |
Number of black female bursary students | 39 | 46 | 22 | 12 |
As a % of total bursary students | 33 | 41 | 20 | 16 |
Group Five is committed to continuing its efforts to promote equity and diversity. Our approach over the past few years has centred on the following principles:
Total South African Workforce
The table below reflects the racial demographics of our South African workforce by occupational level, as defined in the Employment Equity Act. As can be seen, the numbers have remained fairly consistent over the last two years within the management level.
Total South African workforce F2016 | Total South African workforce F2015 | |||||||
---|---|---|---|---|---|---|---|---|
Level | White | AIC* | Total | AIC % of total |
White | AIC* | Total | AIC % of total |
Executive management | 6 | 2 | 8 | 25 | 6 | 2 | 8 | 25.00 |
Senior management | 22 | 10 | 32 | 31 | 23 | 9 | 32 | 28.13 |
Middle management | 282 | 130 | 412 | 32 | 326 | 140 | 466 | 30.04 |
Junior management | 503 | 1 399 | 1 902 | 74 | 698 | 2 495 | 3 193 | 78.14 |
Semi-skilled | 31 | 2 506 | 2 537 | 99 | 61 | 3 352 | 3 413 | 98.12 |
Lower skilled | 17 | 2 184 | 2 201 | 99 | 6 | 2 660 | 2 666 | 99.78 |
Total | 861 | 6 231 | 7 092 | 88 | 1 120 | 8 658 | 9 778 | 89 |
* African, Indian and Coloured.
Demographic distribution – South African employees:
Sustainability indicator | F2016 | F2015 | F2014 | F2013 |
---|---|---|---|---|
White | 12% | 11% | 1 215 | 1 154 |
African | 74% | 76% | 8 778 | 7 702 |
Coloured | 10% | 9% | 1 362 | 1 031 |
Indian | 4% | 4% | 408 | 397 |
Total | 100% | 100% | 11 763 | 10 284 |
NB: Numbers above have been converted to percentage, not quantum as at 2014 and 2013.
Skills development
The Group Five Academy (The Academy) was launched in August 2006. It is responsible for the planning and delivery of learning and development across the group, as well as maintaining support systems to track and manage all learning.
The Academy’s activities are structured around four areas:
During the year, although overall training expenditure decreased due to economic conditions, we increased the number of employees trained.
Sustainability indicator | F2016 | F2015 | F2014 | F2013 |
---|---|---|---|---|
a) Annual value spent on training and development programmes – (R million) | 31,8 | 40,2 | 45,1 | 37,1 |
i) Total number of training interventions* | 16,698 | 13 133 | 14 928 | 9 125 |
ii) Total number of training interventions – semi-skilled and unskilled* | 8,898 | 5 754 | 6 029 | 4 007 |
b) Annual value incurred on bursary expenditure – (R million) | 7,9 | 8,4 | 7,2 | 5,1 |
i) Number of bursary students | 118 | 136 | 111 | 76 |
ii) Number of female bursary students | 42 | 50 | 26 | 15 |
c) Annual value spent on learnerships and apprenticeships – (R million) | 5,4 | 7,2 | 5,1 | 3,6 |
i) Learners on learnership and apprenticeship programmes | 170 | 186 | 174 | 90 |
ii) Unemployed learners registered on learnership and apprenticeship programmes | 140 | 130 | 120 | 66 |
d) Number of students on the Group Five Programme in Management Development (PMD) | 96 | 28 | 8 | 21 |
e) Total annual training spend – black employees – (R million) | 13,5 | 15,5 | 19,3 | 15,4 |
* For employees.
Preferential procurement
Very pleasingly, all preferential procurement targets set for the year were exceeded. The challenge remains with Black Woman Owned enterprises. This is currently being addressed.
Achievement against Construction Charter principles:
Measurement principle | Points (F2016) | Targets (F2016) | Actual F2016(3) |
Actual F2015(2) |
Actual F2014(1) |
---|---|---|---|---|---|
Preferential spend with all suppliers | 5 | 80% | 87.4% | 71% | 72.2% |
Preferential spend with qualifying small (and emerging micro enterprises) | 3 | 15% | 21.3% | 24% | 29.8% |
Preferential spend with qualifying small (and emerging micro enterprises) | 4 | 15% | 13.7% | ||
Preferential spend with 50% black enterprises that are more than | 9 | 40% | 28.5% | 21% | 18.2% |
Preferential spend with 30% black enterprises that are more than women owned | 4 | 12% | 10.4% | 4.4% | |
Bonus Points Preferential Spend From Designated Group enterprises that are at least 51% Black owned | 2 | 2% | 2.1% | 6% | |
Weighted score (points)* | 25 | 23.5% | 19.4 | 19.1% |
(1) As audited by BEE Verification Agency cc for the year ended 30 June 2014.
(2) As audited by BEE Verification Agency cc for the year ended 30 June 2015.
(3) As audited by BEE Verification Agency cc for the year ended 30 June 2016.
*A weighted score is not done for targets.
Enterprise development
The group met the full enterprise development requirement in terms of the Construction Sector BBBEE Scorecard for the sixth year in a row. Six of our current partners improved their Construction Industry Development Board (CIDB) registration during the period and four reached the targeted CIDB level 8. Since inception of the group’s enterprise development programme in 2008, four partners have increased their CIDB rating to level 8.
Group Five enterprise development partners:
ED Partners | Black Ownership |
Women Ownership |
Date joined | Initial CIDB Level | Current CIDB Level |
BBBEE Level |
---|---|---|---|---|---|---|
BL Williams | 95% | 48% | 2008 | 6 GB – PE | 8 GB – PE | 3 |
Enzani Technologies | 80% | 54% | 2009 | 5 EP – PE | 7 EP PE 1 ME – PE |
1 |
Inkanyeli Projects | 100% | 19% | 2009 | 4 GB – PE | 7 GB PE | 2 |
Pan African Development | 100% | 40% | 2009 | 6 GB – PE | 7 GB PE 7 CE PE |
3 |
Siyakhula Engineering | 100% | - | 2009 | 1 EB - EP | 1EB - EP | 3 |
UMSO Construction | 89% | - | 2008 | 6 CE – PE | 8 CE – PE 6 GB PE |
2 |
ENM Trading CC | 100% | - | 2010 | 6 GB | 8 GB | 3 |
Uvuko Civils | 100% | 100% | 2013 | 7 GB,5 CE | 8 GB PE 7 CE PE |
3 |
Tsima Construction | 91% | 21% | 2015 | 7 GB,8 CE | 8 GB, 8 CE | 3 |
F2016 NEW PARTNERSHIPS
ED Partners | Black Ownership |
Women Ownership |
Date joined | Initial CIDB Level | Current CIDB Level |
BBBEE Level |
---|---|---|---|---|---|---|
Bhungu Trading Projects CC | 100% | - | 2016 | * | * | 3 |
Thukuhlo Suppliers, Recycling & Projects (Pty) Ltd | 100% | 100% | 2016 | * | * | 3 |
Keabetswe Business Enterprises CC | 100% | - | 2016 | * | * | 1 |
Tanguliza Construction | 100% | 100% | 2016 | * | * | 1 |
Bafokeng Plumbing, Engineering Construction & Trading (Pty) Ltd | 100% | - | 2016 | 1 SO PE | 1 SO PE | 3 |
WillpowerWorx | 100% | - | 2016 | * | * | 1 |
CE – Civil engineering
EP – Electrical engineering works (infrastructure)
GB – General building works
ME – Mechanical engineering works
PE – Potential emerging
* - Not CIDB graded
Socio-Economic Development (SED) Scorecard
The Group’s SED program has three key focus areas:
- Education and training: with a particular focus on mathematics, science, environmental and technology education.
- Social development: through donations made towards community development initiatives mainly through nonprofit/non-governmental organizations for various cause related programs and disaster relief.
- Economic development: with particular emphasis on the promotion of sustainable employment for marginalized and unskilled groups such as women and the youth.
Sustainability indicator | F2016 | F2015 | F2014 | F2013 | F2012 |
---|---|---|---|---|---|
Targeted SED spend as a % of SA operations’ net profit after tax | 1 | 1% | 1 | 1 | 1 |
Actual SED spend as a % of SA operations’ net profit after tax | 1.07 | 0.9% | 1.52 | 1.15 | 2.4 |
Total annual spend on SED programmes – (R million) | 3.2 | 2,6 | 3.8 | 3,9 | |
Number of unemployed people trained as part of the People at the Gate programme | 34 | 118 | 536 | 524 | 43 |
% of unemployed people securing positions after training | 100 | 70 | 90 | 80 | 100 |
Number of non-profit organisations benefiting from the group’s SED programmes | 48 | 55 | 35 | 26 | 32 |