| |
| SUSTAINABILITY REPORT CONTINUED |
| |
| ETHICS |
Through its governance procedures, the Group ensures
compliance with all legal and regulatory requirements.
Directors adhere to a board mandated Code of Conduct
which contains standards of accepted behaviour.
At the annual meeting of the World Economic Forum in
2004, the Partnering Against Corruption Initiative (PACI)
was launched, backed by a set of principles for
countering bribery. As a foundation signatory to PACI,
Murray & Roberts undertakes to counter corruption and
bribery in the Group and its markets. |
| |
| HUMAN CAPITAL |
Human capital is a cornerstone of sustainability in Murray
& Roberts. The Group aims to be an employer of choice
in the construction and engineering sectors and its world
class delivery of products and services is a reflection of
the capability of its diverse but experienced work force.
The Murray & Roberts human capital strategic framework
matches the global practices of high performing
employers of choice. The strategic framework focuses
on issues that enable our human capital to achieve the
strategic objectives of our Group. Due to the diversity of
Murray & Roberts, individual business entities are
encouraged to tailor their human resource plans to their
specific needs, but they are required to align their plans
with the group strategic framework.
Murray & Roberts endorses employee rights contained
within the South African Constitution, including the right
to freedom of association. The Group's policies and
procedures are aligned with the Constitution and the laws
of South Africa and where appropriate, other countries in
which we operate.
Human resource policies and procedures, including
procedures for the management of grievances,
disputes and disciplinary measures, are in place in all
group operations.
Murray & Roberts occasionally experiences industrial
action within its operating entities. In 2007, unprotected
strike action and a go-slow in the Group's domestic
mining contracting activities resulted in a partially
recoverable financial impact of R24,7 million. Procedures
are in place in the operating companies to manage
industrial action and union negotiations. |
| |
| Diversity and employment equity |
Murray & Roberts embraces diversity and is committed to
transformation. The Group's employment equity approach
provides for equal opportunity and fair treatment in
employment. While the strategic framework enables
compliance with South African employment equity
legislation, the Group emphasises diversity to maximise
its talent pool, strengthen capacity and increase innovation
by introducing different ways of thinking.
Murray & Roberts has in recent years attracted a number of
historically disadvantaged employees and executives who
see in the company a long term career rather than a short term opportunity, but skills shortage dynamics have created
challenges to the retention of experienced black executives,
engineers and other built environment professionals.
The Group's main board composition reflects the
transformation of South African society. Four directors are
black, two of whom are women.
84% of South African based employees are black, while
10% of all employees are female. Approximately 38% of
all levels designated as management in the domestic
market are black, and 11% black female.
Each of the South African business operations is required
to compile employment equity plans and reports for
the Department of Labour. Employment equity forums
representing employees, contribute to the pursuit of
employment equity targets and objectives.
An analysis of the employment equity profile indicates that
more work is required if the Group is to make appropriate
progress in achieving its long term targets. The Black
Executives Share Trust should assist with the attraction
and retention of black executives and managers,
although it is understood that effective attraction and
retention requires an holistic approach.
Non-South African operating companies are required to
achieve a diverse representation of the people within their
geographic location and comply with the relevant
legislation in the country in which they operate. |
| |
| Capacity development |
A global benchmark study conducted by Murray
& Roberts in 2002 revealed that human capital
development is an important characteristic of best-inclass
engineering and construction companies. Building
world class leadership, as well as individual and
organisational capacity, is crucial to Globalising Murray &
Roberts. The Group complies with prevailing skills
development legislation and provides a range of training,
learning and career development opportunities for its
people. In 2007, investment in formal employee training
and development increased to approximately R40 million
(2006: R27 million).
Murray & Roberts actively attracts and develops young
talent to fulfil its human capital and transformation needs.
The Group has established an integrated graduate
pipeline to supplement the learnerships and traineeships
offered by many of its operations. This pipeline comprises
a tertiary education bursary scheme, a graduate
development programme and a campus engagement
initiative. A graduate development steering committee
oversees the graduate pipeline.
The Murray & Roberts bursary scheme provides financial
assistance to full-time students, enabling them to qualify
for a degree or national diploma at a recognised South
African University or University of Technology, and to
contribute to the Group's medium and long term needs
for qualified staff. The scheme is aimed primarily at
engineering and built environment fields of study. The
number of bursaries awarded annually depends on the
Group's needs. Murray & Roberts currently has a total of
172 bursars (2006: 113), 67% of whom are black students
and 26% female. In 2007, our investment in bursaries
was R8,5 million.
The graduate development program (GDP) is part of the
strategic framework to address human capacity and
transformation issues and aims to provide a steady pipeline
of future leaders. The GDP is in its third year with an exbursary
intake of 68 graduates (2006: 38) and this number
is expected to increase by almost 100% in 2008. Currently,
68% of the graduates are black and 22% female.
Murray & Roberts and its operations offer skills
development programs, from adult basic education to
learnerships and leadership programs. The Group had
337 (2006: 140) people undertaking learnerships at
30 June 2007, 69% of whom are black.
To build world class capacity, Murray & Roberts extends
its recruitment to international markets, using appropriate
processes and partners to achieve its objectives. |
| |
| Consolidated summary of the Murray & Roberts employment equity profile in South Africa* |
| Occupational levels |
Male |
Female |
Total* |
| African |
Coloured |
Indian |
White |
African |
Coloured |
Indian |
White |
Total |
| Top management |
4 |
2 |
3 |
57 |
1 |
0 |
0 |
5 |
72 |
| Senior management |
6 |
4 |
12 |
190 |
5 |
1 |
1 |
20 |
239 |
| Middle management |
75 |
37 |
33 |
500 |
10 |
3 |
7 |
37 |
702 |
| Junior management |
1 010 |
252 |
93 |
1 850 |
123 |
26 |
21 |
184 |
3 559 |
| Semi-skilled |
8 803 |
213 |
74 |
364 |
592 |
103 |
83 |
295 |
10 527 |
| Unskilled |
6 186 |
54 |
3 |
90 |
598 |
29 |
0 |
6 |
6 966 |
| Total permanent |
16 084 |
562 |
218 |
3 051 |
1 329 |
162 |
112 |
547 |
22 065 |
Persons with disabilities
Included above |
20 |
3 |
0 |
14 |
4 |
1 |
0 |
6 |
48 |
|
| *Excludes Gautrain project. |
| |
| Remuneration philosophy |
The Group's remuneration philosophy is aligned with
its business strategy to attract, retain, motivate and
reward executive directors, senior executives and
staff through the payment of fair, competitive and
appropriately structured remuneration. In a competitive and dynamic business environment, Murray & Roberts
understands that recognition and reward are crucial to
motivating and retaining existing talent and gaining
preferred employer status.
A framework has been established that sets the
parameters for executive and general staff remuneration
relative to income statement performance, using
benchmarks such as total payroll as a percentage of
revenue, total fixed cost of employment (TFCE) and total
incentive remuneration relative to EBIT and TFCE. The
framework also outlines the relationship between fixed
and incentive remuneration from the perspective of a
market standard and Unitary Murray & Roberts principles.
The approach to TFCE differs in each country of
operation because of differing regional practices, but
this concept forms the basic foundation of our staff
remuneration structure. TFCE is based on total
guaranteed remuneration including a cash portion, motor
vehicle benefit if appropriate and company contributions
to retirement and risk benefits. Market survey data and
individual performance are used in determining levels of
guaranteed remuneration. Guaranteed packages are
reviewed annually.
The Group's incentive or additional remuneration principle
is that leadership executives and general staff are
rewarded relative to their contribution to the strategic
and operational performance of the Group. Incentive
remuneration payments are determined annually.
Incentive remuneration for group executive leadership is
also referenced to attributable earnings and influenced
by key performance areas (KPAs) which provide a
mechanism for adjustment relative to an executive's
alignment with the strategic objectives of the company
and contribution to energising business performance.
Senior and specialist executives across the Group are
considered for participation in the group share incentive
scheme. This scheme is intended to promote an
alignment of interests with those of shareholders and
provide a longer term incentive as part of the
remuneration structure. |
|
|
