Review of operations

Attracting, developing and retaining black managers to achieve more meaningful employment equity

The major challenge remains the attraction, development and retention of black managers. Bidvest has excellent black representation across junior and middle management levels, providing a pool of advancement candidates. In the short to medium term, we are looking to develop talent across the “experience gap” so these managers can compete more effectively for senior positions/ appointments as they arise. Low turnover of senior managers compounds the challenge.

	Training Training spend, including learnerships, increased 36% to R160 million 162 662 person days of training occurred. Of those trained 88,9% were black and 38,5% females Bursaries 361 bursaries at a cost of R3 million were offered, an increase of 99% 56% of bursary candidates were black, 37% female

Companies drive succession planning and accelerated development programmes to prepare individuals for senior appointments and advance the careers of black employees generally.

Bidvest is conscious of the risks associated with over-aggressive affirmative action, where inexperienced managers, unfamiliar with the scale of their responsibilities, might make inappropriate decisions as a result of inexperience. The decentralised philosophy places additional responsibility and accountability on management.

Improving Bidvest’s alignment to the objectives of preferential procurement through supplier registration

One of the most significant changes in government’s view on transformation in the economy is the treatment of preferential procurement as a core element of the BEE scorecard. Preferential procurement is an important element accounting for 20% of the overall score. Bidvest’s supply chain needs to demonstrate a good contribution towards overall BEE transformation and strategic purchasing needs to target small, black-owned or black womenowned businesses, to enable Bidvest to improve its score. This flow-through effect is intended to profoundly transform the economy.

	Procurement BEE procurement, weighted in terms of the codes, amounted to R7,8 billion being 23,8% of controllable spend BEE procurement spend amounting to R548 million was placed with qualifying small enterprises and emerging micro enterprises (3,9% of total procurement)

The challenge for Bidvest, as for all companies in South Africa, is to establish the contribution levels of its supplier base, an ongoing iterative process. Given the iterative nature of the process, a company’s actual rating will always be understated. Suppliers’ scores need to be assured by verification agencies which, in turn, require accreditation. To date, no agencies have been accredited. Some of Bidvest’s larger suppliers have not been rated and purchases from unrated suppliers are deemed “non-compliant”, earning no score. Bidvest is communicating its commitment to transformation and what it expects of suppliers. Individual Bidvest companies have developed systems to provide information and evidence to establish BEE procurement spend. Despite improved data collation, Bidvest can only report ratings if BEE certificates are supplied.

Bidvest has collated empowerment certificates for 10,8% of the Group’s South African suppliers, within the national average of between 10% and 11%. As a result, preferential procurement scores remain understated at the Group and divisional level. An internet-based BEE procurement tool that will enable suppliers to load their BEE certification should result in substantial progress in 2009. The objective is to ensure that no fewer than 20% of all suppliers submit valid ratings certificates.

Socio-economic and enterprise development
Bidvest recognises its responsibility towards the families of employees and communities influenced by its operations. Many communities depend on the wages paid by Bidvest while offering these businesses a pool of talent eager to be developed into skilled contributors to our success.

	SED spend R29 million was invested in socio-economic development projects down 10%, representing 0,9% of South African profit before tax SED spend decreased primarily as a result of a shift to ED spend to bring the Group in line with the codes ED spend Enterprise development spend increased to R31 million representing 1,0% of South African profit before tax

Bidvest invests in both social welfare (primarily educational initiatives) and enterprise development. These investments are identified and coordinated independently by the divisions and their businesses, allowing a closer link between businesses, employees and communities.

The Bidvest corporate office has encouraged and guided societal investment by establishing and publishing targets under the DTI’s codes, sharing success stories in Bidvoice, on the website, intranet, in reports, at roadshows and company gatherings. Improved reporting procedures now include a database of all sponsored projects throughout the Group. A Group strategy has been drafted which encourages SED investment at three levels: Bidvest corporate; divisional; and within the community via each business unit. The Group’s flagship project is McCarthy’s Rally to Read. Corporate provides major support for ORT SA and The Hear For Life Trust.

The Bidvest Dinatla Trust
The Bidvest Dinatla Trust was formed to assist predominantly HDI employees earning less than R6 100 a month with education for their dependants. The programme is aimed at promising learners and biased towards those interested in mathematics, science and languages.

The Bidvest Dinatla Trust received in excess of R3 million from Bidvest over the past four years and is now well established to become self sufficient. The number of students under its mentorship is 225. An outsourced administrator selects students and provides counselling services.

The students’ report cards are monitored each term. The programme coordinator leads discussion groups on issues such as peer pressure, HIV/Aids, teenage pregnancy and parental involvement. Students from grades
10 and 11 receive career guidance while matriculants receive assistance with bursary and other applications.

Twenty-eight learners passed matric in 2007. Several were accepted by some of South Africa’s top academic institutions.