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DEPT OF PUBLIC ENTERPRISES EMPOWERMENT PowerPoint Presentation
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DEPT OF PUBLIC ENTERPRISES EMPOWERMENT

DEPT OF PUBLIC ENTERPRISES EMPOWERMENT

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DEPT OF PUBLIC ENTERPRISES EMPOWERMENT

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  1. DEPT OF PUBLIC ENTERPRISES EMPOWERMENT PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC ENTERPRISES 23 AUGUST 2006

  2. Content • Guiding principles and legislative imperatives • DPE’s strategic intent • Transformation in DPE • Women in SOE boards • Transformation in SOE • Eskom • Alexkor • Denel • Safcol • SAA • Transnet

  3. 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 PBMR Drivers Social Empowerment Economic Empowerment

  4. DPE’s 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)

  5. Transformation - DPE

  6. Transformation - DPE

  7. Women in SOE Boards 2002 - 2006 Still a challenge to secure women board members but we are working towards 50%

  8. Transformation - Eskom Gender Development Framework Diversity Procedure Workforce Suppliers Customers • Black suppliers • W.O. B • PWD AA Policy Gender Policy Disability • 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

  9. Year African Asian Coloured Whites Total 1997 4 % 1 % 1 % 9 % 14 % 2006 13,5 % 1,5 % 2 % 8 % 25 % Transformation - Eskom

  10. Year African Asian Coloured Whites Total 1997 3 % 1 % 1 % 8 % 13% 2006 19% 2 % 3 % 8 % 32 % Transformation – Eskom (F Band)

  11. 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

  12. 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

  13. Empowerment programmes - Eskom • Universities • total:532 • women 66,5% • Technikons • total: 301 • women 77% • Technical Colleges • total: 206 • women 74%

  14. 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

  15. 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

  16. Transformation – Alexkor

  17. Transformation – Alexkor

  18. 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, BEE’s and women owned enterprises

  19. 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.

  20. Total number of employees per Occupational Categories as at 30 September 2005 Male Female Occupational Categories Total African Coloured Indian White African Coloured Indian White Legislators, senior officials 415 52 24 6 276 30 8 0 19 & managers 823 Professionals 64 8 41 615 18 2 6 69 Technicians & associate 1386 140 62 23 1013 27 12 3 106 professionals 882 Clerks 165 61 5 106 111 77 15 342 296 Service & sales workers 94 75 0 71 31 15 1 9 Skilled agricultural & fisheries 0 0 0 0 0 0 0 0 0 workers Craft & related trades 1185 214 146 5 750 45 12 1 12 workers Plant & machine operators 2059 897 417 2 89 235 358 1 60 & assemblers 325 Elementary occupations 190 9 4 17 90 13 1 1 Total Permanent 1816 802 86 2937 587 497 28 618 7371 852 Non-permanent employees 316 122 2 148 130 93 2 39 Total 2132 924 88 3085 717 590 30 657 8223 Transformation - Denel

  21. Transformation - Denel Gender equity

  22. 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

  23. Preferential procurement - Denel

  24. 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 Group’s initiatives :- • The disposal of SAFCOL’s 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.

  25. Transformation – Safcol

  26. Transformation – Safcol The organisation, because of its nature, is primarily male dominated with 83% of employees being male and 17% being female

  27. 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 (SMME’s). • 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.

  28. Preferential procurement – Safcol

  29. 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

  30. 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)

  31. Transformation - SAA

  32. Transformation - SAA

  33. 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)

  34. Transformation - Transnet

  35. 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

  36. 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

  37. 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

  38. 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

  39. 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.

  40. Empowerment programmes - Transnet The statistics below are based on the 2005/6 reporting timeframes:

  41. 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

  42. Preferential procurement - Transnet

  43. 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

  44. 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