Economic performance

Development of historically disadvantaged individuals to positions of responsibility remains a challenge, as does the integration of diverse cultures within McCarthy. Management teams at McCarthy continue to be exposed to diversity workshops as part of the strategic transformation initiatives.  A number of black managerial candidates serve as understudies to experienced managers while the majority of executive directors at Bidvest Automotive  act as mentors to emerging black talent.

McCarthy has continued to analyse its EE initiatives, resources and systems and have enhanced its EE procedural and substantive compliance processes as part of the Bidvest 2007 review. We are determined to eradicate all forms of discrimination in the workplace, promote equality and fairness as well as improve our top and senior management profile in terms of representivity.  While McCarthy is experiencing headcount decrease at a middle management level, there is a positive planned 2% PDI increase over last year's 4% actual.  

The spend on technical and non-technical training increased from R32.1 million to R34,8 million (figures restated to take into account direct infrastructural costs) to ensure a competent and skilled workforce.  Stars of Africa (a NUMSA partnership) continues its training of informal mechanics in the Orange Farm community. The intention is to help these contributors to the informal economy make a living while increasing awareness of environment impacts and the safety-critical items that need attention before old vehicles are put back on the road.

Enterprise development achieved a milestone with the launch of an owner / driver scheme involving 20 parts delivery vehicles, owned by former employees. A consultancy firm specialising in this challenging field is managing the early growth pains. This project is the key element in our enterprise development programme.  Planning has been finalised for expanding into the Kwazulu-Natal region with a fleet of 11 parts delivery vehicles.  This owner-driver project is planned to commence in October 2010.

A McCarthy enterprise development department has been established to grow opportunities for emerging black businesses. Our ED strategy encourages franchise-driven initiatives, thereby qualifying for optimum incentives while assisting ED beneficiaries at operational level. Targets have been set and measurement indicators are in place.

Our biggest preferential procurement challenge is that 98% of McCarthy’s spend is with original equipment manufacturers. McCarthy has updated its systems to ensure optimal BEE recognition of its total supplier database.

HIV/Aids awareness and prevention campaigns are run every September during our Wellness Week programme. In response to difficult economic times, we expanded the Wellness Week effort to assist employees suffering from stress-related conditions, through our Employee Assistance Programme.

Our CSI spend increased to R7.4 million and we were able to garner additional support through corporate sponsors for our flagship programme, Rally to Read. Staff members also participated and became motivated following the ”Maintaining the momentum” mini-Rally to Read events.  Our CSI focus remains primarily on early childhood development and education through the establishment of computer centres at schools and through our bursary programme at tertiary institutions.

McCarthy Automotive Artisan Academies remain the leading automotive industry training provider and are our major contribution to the effort to overcome the skills shortage in our sector. McCarthy participates on SAQA and SETA forums, helping to raise the standards of automotive training while registering new automotive and maintenance qualifications from level NQF2 to NQF5 (380 of our learners achieved NQF certification). McCarthy participated in the Department of Labour’s new accelerated artisan training programme, engaging 52 trainees.

We now provide comprehensive career paths for all McCarthy service department employees (new entrants as well as current artisans are welcome) offering eight learnership qualifications in the areas of mechanical maintenance and automotive electronics diagnostics and repair (autotronics). Specialised equipment training and product training courses are also offered in conjunction with advanced electronics diagnostic laboratories installed at our Midrand, Cape Town and Pinetown campuses.  The Midrand academy was upgraded, with an additional R600 000 investment in equipment, to improve the training and transfer of practical skills.

Our automotive artisan academies delivered 13 600 training days; 8 340 internally, the balance to external customers. Black students accounted for 77% of total students trained.

Society

In the motor retail arena, anti-competitive behaviour is not a substantial risk considering the highly competitive market and the franchise agreements to which we are bound. However, within the car rental market, where the top four companies command 70% of the market, there is a potential risk of collusion and our approach is to be extremely careful not to become involved in forums or opportunities for dialogue that could raise the risk of anti-competitive behaviour.

McCarthy played an active role in developing and refining business ethics policies for Bidvest. We take decisive action when uncovering any misdemeanours and list all losses and the measures taken to resolve these cases and reduce our vulnerability. Transgressors are named and shamed in our internal magazine. This year, we suffered R2 500 000 to fraud, theft, and other misdemeanours. Of this amount R445 000 was recovered, resulting in a net loss of R2 055 000.

Dispute Resolution Centre (DRC)/CCMA cases brought against the company rose 23% to 48 cases. Of these, 29 were awarded in favour of the company and 12 favourably settled, while the balance are expected to be found in favour of the company, pending referral. No cases were found against us, nor were any fines incurred for statutory non-compliance in respect of the Department of Labour’s health and safety regulations.

Human rights

Human rights issues such as freedom of association, child labour and forced or compulsory labour, are well legislated for under various relevant Acts in South Africa. Incidents of discrimination are monitored and there were no significant incidents to report.

Screening of suppliers and contractors outside of South Africa is largely covered by the quality of our business associations and McCarthy deals largely with well-known brands. Formalised screening of suppliers is undertaken in terms of product responsibility issues, but not necessarily for human rights issues – an area for improvement in the future.