DEPT OF PUBLIC ENTERPRISES

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DEPT OF PUBLIC ENTERPRISES EMPOWERMENT PRESENT
ATION TO THE PORTFOLIO COMMITTEE ON PUBLIC
ENTERPRISES 23 AUGUST 2006
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Content

• Guiding principles and legislative imperatives
• DPEs strategic intent
• Transformation in DPE
• Women in SOE boards
• Transformation in SOE
• Eskom
• Alexkor
• Denel
• Safcol
• SAA
• Transnet

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Guiding principles and legislative imperatives

• Legislation
• Constitution
• Public sector Preferential Procurement Act
• Black Economic Empowerment Act of 2003
• Skills Development Act
• Employment Equity Act
• King II

Lever Quarterly and Annual Reporting Shareholder
Compacts Corporate Plans KPIs and Targets SOEs
Policies Social Responsibility
Eskom, Denel Transnet, Safcol Alexkor SAA PBM
R
Drivers
Social
Empowerment
Economic Empowerment
 
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DPEs strategic intent

• Gender empowerment fundamental hence it is fully
  integrated into the activities and structure of
  DPE
• In respect of SOE we facilitate equity
  transformation through
• Directing the strategic direction of SOEs on
  Transformation
• Board Appointments
• Signing of annual Shareholder Compacts
• Monitoring implementation of national policy of
  gender equity and BEE
• Setting of KPIs through Corporate Plans
• Quarterly and annual reporting
• With regard to our own programmes, the Properties
  sub-programme of the Joint Project Facility Unit
  contributes directly to Broad-based Black
  Economic Empowerment (presentation to follow)

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Transformation - DPE
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Transformation - DPE
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Women in SOE Boards 2002 - 2006
Still a challenge to secure women board members
but we are working towards 50
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Transformation - Eskom
Gender Development Framework
Diversity Procedure
Workforce
Suppliers
Customers
AA Policy Gender Policy Disability

• Black suppliers
• W.O. B
• PWD

• Diverse customers
• Penetrating new markets
• Community Esdef

Talent Management Job enrichment
rotation International exposure Coaching Worklife
programmes Women networking forum
Directives
Sexual harassment Flexi-time Policy Mentorship
Policy
Programmes
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Transformation - Eskom
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Transformation Eskom (F Band)
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Empowerment programmes - Eskom

• Management processes in place
• Targets
• Current and future to create clear understanding
  of long-term objective (intent)
• Employee satisfaction surveys
• Leadership effectiveness measurements
• Structured learning programmes supported by
  formalised mentorship and coaching
• Monitoring trends
• Staff turnover
• Salary scales
• Performance assessments
• EAP

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Empowerment programmes - Eskom

• Work/life examples
• Appropriate flexibility of working hours
• Child-care facilities
• Tolerance of diversity
• Female roles (religion, home, social, business)
• Workplace logistics (safety clothing, bathroom
  facilities)
• Ergonomics (heights, heavy equipment)
• Health and wellness

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Empowerment programmes - Eskom

• Universities
• total532
• women 66,5

• Technikons
• total 301
• women 77

• Technical Colleges
• total 206
• women 74

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Preferential procurement - Eskom
2005-2006 Expenditure

• Eskom development foundation
• Fund targets projects driven by women, persons
  with disability and for poverty alleviation

Total BEE
BWO Included
Target Without Coal
10,918,449.0
1,695,753.0
Coal
3,839,000.0
TOTAL
14,757,449.0
1,695,753.0
18 of the BEE Target
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Transformation Alexkor

• The vision of Alexkor Limited with respect to
  black economic empowerment and women empowerment
  is to
• Employment Equity
• Ensure procurement of 25 from HDSA sources
  increasing in future years
• To focus on female empowerment to build capacity
  building for meaningful female participation in
  the local and mainstream economy
• This is in line with the BBSEE Charter for the
  South African Mining Industry

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Transformation Alexkor
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Transformation Alexkor
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Empowerment programmes Alexkor

• The following programmes are in place for women
  empowerment and to address employment equity
  ratios
• Awarding and participation of women in shallow
  water and sea concession contracts
• Allocation of bursaries in mining related
  disciplines
• Placement of females on mentorship programmes
• Employment of females on learnerships in
  engineering trades
• Training of females as earth moving operators

Preferential procurement Of the R165.5 m spent
in the 2005/2006 financial year, 55 was
directed towards small, medium and micro
enterprises, BEEs and women owned enterprises
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Transformation - Denel

• Historical legacy of Denel
• Captured market South African Defence Force
• White, male dominated
• Very few women in engineering primarily
  secretarial, administration and support
• Denel is committed to the development of
  historically disadvantaged individuals and women
  in particular to address historical biases
• Denel has commenced with an organisational
  culture/climate survey in conjunction with
  Consulting Company Absolute Ndaba aimed at
  assessing current culture in respect of all
  facets of transformation within Denel. On
  conclusion of the survey, the results obtained
  will be used to develop strategies as well as an
  equity vision for Denel. The survey results will
  be available during October 2006.

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Transformation - Denel
Percentage 26 11 1 37.5 9 7.1 0.4 8
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Transformation - Denel
Gender equity
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Empowerment programmes - Denel

• Centre for Learning and Development
• The School of Business Leadership
• The School of Aerospace
• The School of Land Systems
• The Denel Youth Foundation Training Programme
• Skills Development Projects
• Through eight sector education and training
  authorities
• Focus on Engineers, Scientists and Technicians
• External training within South Africa Abroad
• External training in Nepad countries

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Preferential procurement - Denel
Financial period 2001/2 2002/3 2003/4 2004/5 2005/6
Total Spend (Rm) 1,463 1,185 1,397 1,985 1,794
BBBEE 166.211 251.068 201.929 437.060 334.276
11.36 21.19 14.45 22.02 18.6
Women (Rm) Direct 17.260
Indirect 2.874
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Transformation Safcol
The SAFCOL Group is committed to supporting the
policies and initiatives of Government. Black
economic empowerment and the development of the
second economy are key focuses. The following
activities demonstrate the Groups initiatives -

• The disposal of SAFCOLs subsidiaries and other
  businesses to third parties consisting of a share
  of BEE interests in line with Government policy.
• BEE is one of the criteria taken into account in
  the procurement policy of SAFCOL for services and
  products, and the sale of raw timber to
  processors.
• Funding earmarked for corporate social investment
  is spent on rural development and the upliftment
  of individuals and communities.
• The involvement of SAFCOL in the development of
  the BBBEE Forestry Charter.
• The increased impetus to implement employee share
  option plans in disposed subsidiaries.

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Transformation Safcol
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Transformation Safcol
The organisation, because of its nature, is
primarily male dominated with 83 of employees
being male and 17 being female
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Empowerment programmes Safcol

• An in-house training centre provides skills
  training to own employees as well as externally.
  The training is to the benefit of historical
  disadvantaged individuals and contractors. Annual
  training includes in excess of 4 600 people
  involving more than 12 000 person days.
• Auditing, mentoring and assistance are provided
  for emerging contractors (SMMEs).
• Bursaries are granted to employees, dependants
  and historically disadvantaged individuals to
  obtain academic qualifications. Current budget
  amounts to R1,3 million. A total of 35 current
  bursaries are being sponsored of which 24 are for
  historically disadvantaged individuals and
  females.
• Bridging classes and experiential training
  provided for candidates in respect of a variety
  of disciplines (scarce skills) e.g. -
• Forestry 21 Candidates
• Artisans 8 Candidates
• Administrative 9 Candidates
• Marketing 3 Candidates
• Wood Technology 2 Candidates
• ABET classes in progress at is centres to improve
  literacy levels. Current attendance is 376
  learners. IEB exams (2005/6) Level 4 180
  passed
• Level 1 3 205 passed.

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Preferential procurement Safcol
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Transformation - SAA

• South African Airways is in the process of
  redefining its core business and revising its
  corporate plan
• Empowerment has always been a fundamental
  component of the SAA transformation agenda
• Established empowerment programmes include
• Executive Development Programme
• Supervisory Training
• Leadership Development
• Functional courses
• Legislative courses
• ABET
• Airline Contact Center Management
• Airfreight Handling
• Supply Chain Management
• The presentation will however only speak to the
  establishment

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Transformation - SAA

• Total Employees 2002 June 2004 Plan
  2005 July 2006
• PDI 66(4055) 70(4250) 68
  (4029) 72(4083)
• White Females 19(1173) 17(1065) 18
  (1167) 16(908)
• White Males 14(889) 12(745) 14
  (878) 12(687)
• TOTAL 6117 6060
  6074 5678
• (NB These figures exclude Technical and Pilots)

• Pilots
  2002 June 2004 Plan
  2005 July 2006
• PDI
  4(32) 7(53) 7
  (57) 9(68)
• White Females 1(12)
  3(27) 2 (15) 4(36)
• White Males
  95(728) 90(729) 90
  (693) 87(700)
• TOTAL 772
  809
  765 802

• Management
  2002 June 2004 Plan
  2005 July 2006
• PDI
  44(202) 51(250)
  51 (274) 53(289)
• White Females 24(108)
  21(103) 20 (108) 18(99)
• White Males
  32(147) 28(141) 29
  (154) 29(165)
• TOTAL 457
  494 536 553
• (NB These figures exclude Technical and Pilots)

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Transformation - SAA
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Transformation - SAA
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Transformation - Transnet

• Transnet has embarked on a turnaround strategy
  focusing on improving efficiencies, reducing
  costs and adding value to customers and
  shareholders
• The goal is to build a focused freight transport
  company, streamlining activities into freight
  rail, ports and pipeline
• As such EE data is presented as at 30th June 2006
  for the core business units only namely
• Spoornet
• Preferential Port Operations
• National Ports Authority
• Protekon
• Petronet
• Corporate Centre (including Transnet Foundation,
  Esselenpark and Transtel SS)

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Transformation - Transnet
EEA2 Reports as _at_ Jun 06 EEA2 Reports as _at_ Jun 06 Male Male Male Male Female Female Female Female  
    African Coloured Indian White African Coloured Indian White Total 
Top Senior Management Top Senior Management 104 26 46 124 54 4 14 32 404
Professionals Professionals 147 42 70 310 91 25 22 38 745
Skilled Technical Skilled Technical 626 208 182 1507 337 89 56 131 3136
Semi Skilled Semi Skilled 15778 7356 992 6342 3444 620 236 1230 35998
Unskilled Unskilled 6518 645 30 116 307 70 13 134 7833
GRAND TOTAL 48 116 GRAND TOTAL 48 116 GRAND TOTAL 48 116 GRAND TOTAL 48 116 GRAND TOTAL 48 116 GRAND TOTAL 48 116 GRAND TOTAL 48 116 GRAND TOTAL 48 116 GRAND TOTAL 48 116
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Transformation - Transnet

• Transnet Board (14 directors)
• 50 black persons (6 African, 1 Indian)
• 57 black females (3 African, 1 Indian)
• No PLWD
• Substantial progress has been made with
  representation of black persons whilst the black
  female target has already been reached
• Charter 5 year target (2009) for Top Senior
  Management
• 70 black persons
• 35 (50 of black persons target) black females
• 3 all people living with disabilities (PLWD)
• Transnet Top Senior Management (404)
• 61 black persons (158 African, 30 Coloured,60
  Indian)
• 29 black females (54 African, 4 Coloured, 14
  Indian)
• Information on PLWD specific to top/ senior
  management not available
• Current transport sector achievement 27 black
  persons of which 20 female
• Charter targets not met yet BUT Transnet is very
  close to achieving the targets for black persons
  and black females Transnet is ahead of current
  sector achievement

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Transformation - Transnet

• The Transnet Group has a total of 48 116
  employees of which
• 79.29 are black persons (6825 African, 715
  Coloured, 43 Indian)
• 14.10 are black females (307 African, 70
  Coloured, 13 Indian)
• 0.22 are PLWD
• Transnet is already beyond the overall 2009
  target for black persons but progress in relation
  to black females and PLWD is slow

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Transformation - Transnet

• Professionals 53.28 black persons and 18.52
  black females
• Skilled 47.77 black persons and 15.37 black
  females
• Semi-skilled 78.95 black persons and 11.95
  black females
• Unskilled 96.81 black persons and 4.98 black
  females
• Current Transport Sector achievement for
  professional skilled employees is 50 black
  persons and 27 black females
• Transnet is making good progress regarding black
  persons across all levels but progress regarding
  black females across all levels is slow

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Empowerment programmes - Transnet

• Charter sets an ongoing target of
• At least 10 of payroll expended on skills
  development initiatives (includes 1 skills
  levy) 50 of 10 targeted at training of youth
• At least 5 of workforce increase in learnerships
  in 3 years
• Transnet achievement is not reported with
  reference to the target
• The Group has trained an average of 73.3 black
  employees

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Empowerment programmes - Transnet

• Transnet Executive Women Development Programme
  leadership programmes at three levels namely
• Transnet Executive Development Programme
• Transnet Business Driven Action Learning
  programme (GIBS)
• Transnet Management Development Programme (Wits
  )
• Transnet Emerging Leadership Programme (through
  Esselenpark UNISA)
• 43 of women at all management levels have
  participated in the leadership programmes over
  the last 18 months.

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Empowerment programmes - Transnet
The statistics below are based on the 2005/6
reporting timeframes
Business Unit Number trained Black
Petronet 281 65
Spoornet 25 797 training courses 72.5
NPA (Head Office) 97 78
SAPO (Head Office) 82 78
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Preferential procurement - Transnet

• Preferential Procurement
• 5 year target (2009)
• 60 of discretionary spend to black owned and
  empowerment enterprises
• 30 SMME (incl. Black owned empowerment
  enterprises
• Based on available information the total BEE
  spend is 42
• Based on available information it appears that
  progress with attainment of the SMME target is
  slow

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Preferential procurement - Transnet
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Conclusion - Transnet

• Black Persons Transnet has made substantial
  progress in achieving the 70 black persons
  Management and Employment Equity (EE) target at
  all staff levels Transnet has already gone beyond
  the target
• Gender Whilst substantial progress has been made
  in relation to the number of black females on the
  Board of Directors and Top/ Senior Management, EE
  for black females across all levels has not kept
  pace with the employment of black males
• Demographic representation Transnet has
  generally made progress with its alignment to
  demographic representation but imbalances still
  exist this should improve as Transnet proceeds
  to attain its BEE targets
• PLWD Transnet has made slow progress in
  achieving the 3 target
• Skills development Whilst Transnet has made
  substantial progress with the training of black
  employees, its reporting format has to be aligned
  with the Charter target
• Preferential procurement Whilst some progress
  has been made regarding the total BEE spend,
  progress with SMME spend seems to be slow
  reporting on preferential procurement should
  improve and be aligned to Charter target

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Way forward - Transnet

• Focus on the core business units in line with the
  one company, one vision philosophy
• Develop an overarching Employment Equity (EE)
  strategy to ensure consistency in approach,
  principles and implementation
• Develop a consolidated EE plan that will form the
  basis for the EE plans of all operating divisions
• Develop a group wide EE monitoring tool and score
  card to assess implementation and monitor
  accountability
• Completion of group wide strategy, EE plans and
  targets, by March 2007