agrisa b-bbee · 2019-03-19 · skills development our skills experts can assist with skills...
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Presented by: Richard Ryding
083 440 2130
AgriSA – B-BBEE
About Us
We strive to be loved by our clients and to be the preferred partner of organisations in respect of human capital, labour relations and training solutions. We do this by being:
- Client centric- Responsive- Delivery-focused- Innovative
BBBEE Level 251% black-owned 30% black women owned
• Manufacturing• Agriculture• Wholesale and retail• Business services• Mining• Production• Education• ICT• Transport and logistics• Construction
ConsultingLegal Services
Our consulting and training services are designed to provide a one stop shop of multi-disciplinary Labour Law, Human Resources, Industrial Relations and business solutions.
Our team is comprised of admitted attorneys
specialising in labour law, as well as
experienced industrial relations practitioners
that provide the full spectrum of labour law
advice, guidance and support.
We are able to assist with everything from a
disciplinary enquiry to a CCMA case.
We also offer support and assistance in
commercial mediation, dispute resolution,
collective bargaining and the drafting of
contracts, policies and procedures.
Business Services
We have undertaken various projects in both
the public and private sectors
Specific areas of expertise include
restructuring, s197 employee transfers,
organisational design and strategic planning
and development.
Equal Pay Consulting
Our proprietary Equal Pay diagnostic tool
assists in quickly identifying any areas of
concern in regards to the Equal Pay for Work
of Equal Value.
Our specialist consultant works with clients to
understand how best to structure pay to
maintain balance between cost and return.
Employment Equity
Recognised as one of the leading experts in
this field, our employment equity services
include, developing policies and procedures,
compliance audits, equal pay analysis,
employee awareness, committee training,
drafting of equity plans and DOL reporting,
B-BBEE alignment and all other functional
support.
Our MD, Thembi Chagonda, is a serving
Employment Equity Commissioner and is
passionate about driving real
transformation.
Employee Relations
With more than 25 years’ experience in this
field, we provide practical and effective
solutions to all your ER and HR challenges.
Our expertise includes strategic planning,
organisational design, leadership assessment
and development, coaching, mentoring,
career pathing, audits, employee surveys and
performance management.
Skills Development
Our skills experts can assist with Skills Audits,
Workplace Skills Plans and Annual Training
Reports.
We partner with clients to set and achieve
skills development goals to empower
employees and organisations.
Specialising in linking Skills Development,
Employment Equity and B-BBEE, our
consultants can assist you to achieve real
transformation in the workplace.
B-BBEE
Our extensive expertise in this dynamic field
will assist your organisation. We offer
support and consultation in terms of
strategising, training, structuring and
implementation of B-BBEE.
Global Business Solutions conducts initial
assessments of the client’s B-BBEE
scorecard, drafts strategies to optimise BEE
positioning and capacitates structures in
these areas.
We are proud to promote our ownership
model which includes more than 30% black
female ownership and 51% black ownership.
Amidst the challenges that changes in
legislation bring, we pride ourselves in
creating pragmatic business solutions.
TrainingGlobal Business Solutions is accredited to present training under the auspices of the Services SETA, ETDP SETAand the SABPP. We specialise in offering customised in-company training solutions to suit your specific needs.
Labour Relations
• Capacity building in Labour Law
• Management & Trade Unions: Vested Interests
• Effective Strike Management
• Effective Arbitration
• Masters in Labour Law
• Effective Discipline in the Workplace
• Organisational Rights
• Labour Relations Management Programme
• Introduction to Arbitration
• Advanced Arbitration
• Understanding Retrenchments & Process
• Managing Absenteeism and Leave Abuse
Annual Events
• Mid-Year Labour Law Update
• Annual Labour Law Update
• Annual Employment Conference
Transformation
• Introduction to B-BBEE
• B-BBEE: Bootcamp for B-BBEE Champions
• Employment Equity Pivotal Programme
• Introduction to Employment Equity
• EE Committee Training
• Employee Awareness: EE sessions
• Embracing Diversity
• Employee Awareness: Diversity sessions
• Employee Awareness: Disability sessions
• Equal Pay for Work of Equal Value
• Employee Awareness: Equal Pay sessions
Legal
• Whistle Blower Law
• Protection of Personal Information
• Consumer Protection Act
Human Resources
• Human Resource Management Diploma
• Effective Recruitment & Selection
• Introduction to Performance Management
• Effective Performance Management
• Coaching & Mentoring
• Employee Awareness: Sexual Harassment
• Employee Awareness: HIV/AIDS
• Wage Negotiations
• Intro to the Skills Development Landscape
• Completing your Workplace Skills Plan & Annual Training Report
• Skills Development Facilitator
• Assessor Training
• Introduction to Facilitation Skills
• Train-the-Trainer
• Social Media in the Workplace
Employee Proficiency
• Finance for Non-Financial Managers
• Operationalising Company Strategy
• Effective Report Writing
• Effective Meetings
• Effective Minute Taking
• Effective Presentation
• Time Management
• Effective Communication
• Effective Office Administration
• Equipping Supervisors
• Stepping up to Supervisor
• Equipping/Enabling Line Managers
• Effective Negotiation
• Handling Conflict in the Workplace
• Effective Conflict Resolution
• Introduction to Project Management
• Advanced Project Management
Definitions
• 5 Elements, Ownership, Management Control, Skills Development, Enterprise & Supplier Development and Socio-Economic Development.
• 3 priority elements.
• Large companies to comply with ALL 3, and QSE with Ownership & either Skills Development or Enterprise & Supplier Development
R million
Exempted Micro-Enterprise (EME) 0 – 10
Qualifying Small Enterprise (QSE) 10 – 50
Generic 50 +
B-BBEE Requirements
• EME and QSE that are 100% black owned = Level 1
• EME and QSE that are more than 51% black owned = Level 2;
• EME are required to obtain either an annual:✓ Sworn Affidavit, or✓ Certificate from CIPC confirming Black Ownership and Annual Revenue
• QSE need to produce an annual sworn affidavit confirming revenue and black ownership if they are more than 51% black owned;
• A QSE with less than 51% black ownership must comply with all 5 elements of the scorecard, and is subject to discounting.
Comparison AgriBEE and General CodesElement AgriBEE Points CoGP Points
Ownership 25.00 25.00
Management Control 19.00 19.00
Skills Development 20.00 20.00
Enterprise & Supplier Development
40.00 40.00
Socio-Economic Development 15.00 5.00
Total 119.00 109.00
Contribution Levels
B-BBEE Status Qualification pointsB-BBEE Procurement
Recognition Level
Level 1 Contributor ≥100 135%
Level 2 Contributor ≥95 but <100 125%
Level 3 Contributor ≥90 but <95 110%
Level 4 Contributor ≥80 but <90 100%
Level 5 Contributor ≥75 but <80 80%
Level 6 Contributor ≥70 but <75 60%
Level 7 Contributor ≥55 but <70 50%
Level 8 Contributor ≥40 but <55 10%
Non-compliant Contributor < 40 points 0%
Ownership – Priority ElementCriteria/Indicator AgriBEE Points AgriBEE Target CoGP points CoGP target
Voting Rights:
Exercisable Voting Rights of black people 4.00 25% + 1 vote 4.00 25% + 1 vote
Exercisable Voting Rights of black women 2.00 10% 2.00 10%
Economic Interest:
Economic interest of black people 4.00 25% 4.00 25%
Economic interest of black women 2.00 10% 2.00 10%
Economic interest of black natural people in Designated Groups;
Employee Ownership Schemes; Broad-based Ownership Schemes;
Co-Operatives
3.00 3% 3.00 3%
Involvement in ownership of black new entrants 2.00 2% 2.00 2%
Realisation Points:
Net Value 8.00 25% 8.00 25%
Total 25.00 25.00
Management ControlCriteria/Indicator AgriBEE Points AgriBEE Target CoGP points CoGP target
Board Participation:
Exercisable Voting Rights of black Board members 2.00 50.00% 2.00 50%
Exercisable Voting Rights of black female Board members 1.00 25.00% 1.00 25%
Black Executive Directors 2.00 50.00% 2.00 50%
Black female Executive Directors 1.00 25.00% 1.00 25%
Executive Management:
Black Executive Management 2.00 60.00% 2.00 60%
Black female Executive Management 1.00 30.00% 1.00 30%
Disabled Employees:
Black Disabled employees as a percentage of all employees 2.00 2.00% 2.00 2%
Management Control - ContinuedCriteria/Indicator AgriBEE Points AgriBEE Target CoGP points CoGP target
Senior Management:
Black employees in Senior Management 2.00 60.00% 2.00 60%
Black female employees in Senior Management 1.00 30.00% 1.00 30%
Middle Management:
Black employees in Middle Management 2.00 75.00% 2.00 75%
Black female employees in Middle Management 1.00 38.00% 1.00 38%
Junior Management:
Black employees in Junior Management 1.00 88.00% 1.00 88%
Black female employees in Junior Management 1.00 44.00% 1.00 44%
Total 19.00 19.00
Use either National or Provincial EAP when scoring Race and Gender
Skills Development – Priority ElementCriteria/Indicator AgriBEE Points AgriBEE Target CoGP points CoGP target
Skills Development Spend on Learning Programmes
Skills Development expenditure 8.00 6.00% 8.00 6%
Skills Development expenditure for black employees with disabilities 4.00 0.30% 4.00 0.3%
Learnerships:
Number of black employees participating in Learnerships,
apprenticeships or internships4.00 2.5% 4.00 2.5%
Number of unemployed black people participating in training per the
matrix4.00 2.5% 4.00 2.5%
Bonus point for number of Black People absorbed at the end of the
learnership5.00 100% 5.00 100%
Total20.00 + 5.00
Bonus Points
20.00 + 5.00
Bonus Points
Skills Development – Important considerations
• 85% of Skills Expenditure must be on core skills as identified by the company, scarce and critical skills as identified by the SETA (AgriBEE)
• Companies must have filed a WSP, ATR and Scarce Skills plan or will be scored 0 for Skills Development
• Use either National or Provincial EAP when scoring Race and Gender except for:
• Skills Spend for Disabled Black People
• Absorption
Enterprise & Supplier Development – Priority Element
Criteria/Indicator AgriBEE Points AgriBEE Target CoGP points CoGP target
Preferential Procurement
Procurement Spend from all Empowering Suppliers as a percent of TMPS 5.00 80.00% 5.00 80%
Procurement Spend from all QSE Empowering Suppliers as a percent of TMPS 3.00 15.00% 3.00 15%
Procurement Spend from all EME as a percent of TMPS 4.00 15.00% 4.00 15%
Procurement Spend from Empowering Suppliers as a percent of TMPS
a. suppliers that are 51% black owned; 9.00 40.00% 9.00 40%
b. suppliers that are 30% black women owned 4.00 12.00% 4.00 12%
Bonus Points
Procurement Spend from Designated group suppliers that are at least 51% black owned 2.00 2.00% 2.00 2%
Enterprise & Supplier Development – Priority Element
Criteria/Indicator AgriBEE Points AgriBEE Target CoGP points CoGP target
Enterprise and Supplier Development
Annual Value of all Supplier Development contributions as a % of Target 10.00 3.00% of NPAT 10.00 2% of NPAT
Annual Value of all Enterprise Development contributions as a % of Target 5.00 1.50% of NPAT 5.00 1% of NPAT
Bonus Points
Graduation from Enterprise Development to Supplier Development
Beneficiary1.00 1.00
Jobs created by a supported supplier 1.00 1.00
Total40.00 + 4.00
bonus points
40.00 + 4.00
bonus points
Enterprise & Supplier Development – Important considerations
• Phase in for Procurement from 51% black owned companies, provided the 3% NPAT target for Supplier Development is met:
• Year 1 – 10%
• Year 2 – 20%
• Year 3 – 25%
• Year 4 – 30%
• Year 5 – 40%
• Phase in for Procurement from 30% black women owned companies, provided the 3% NPAT target for Supplier Development is met:
• Year 1 – 4 – 6%
• Year 5 – 12
Enterprise & Supplier Development – Important considerations
• Supplier Development target for years 1 – 4 is 3%
• Thereafter 2%
• The following multipliers are available for Enterprise Development and Supplier Development under the AgriBEE Codes:
Enterprise and Supplier Development Initiative Multiple
Initiatives which directly contribute towards new job(s) created in the associate enterprise. If there increase of 100% of jobs
created on the base, the measured entity gets full points of 1.5 multiple factor. Pro rata will apply if the increase is less than 100%. 1 .5
Initiatives which assist the development of beneficiary entities to produce goods and/or services not previously produced or
manufactured in South Africa. An agreement between Measured Entity and beneficiary is required. 1 .5
Contributions in respect of warehousing fund (provided these funds do not own an equity interest in the Measured Enterprise).
This excludes statutory levies and third arty enterprise and supplier development facilitators. 1 .25
Socio-Economic DevelopmentCriteria/Indicator AgriBEE Points AgriBEE Target CoGP points CoGP target
Value of all Socio-Economic Development and Approved
Socio-Economic Development Contributions made15.00 1.5% of NPAT 5.00 1% of NPAT
Total 15.00 5.00
YES Amendment – BEE Targets• B-BBEE recognition for companies meeting targets in terms of the Youth Employment
Service (YES) Initiative:✓ Generics must:
• Meet all priority element subminima i.e. not discounted; or
• Average 50% across the 3 priority elements
✓ QSE must:
• Meet 2 of 3 priority element subminima i.e. not discounted; or
• Average 40% across the 2 of 3 priority elements,
• Must meet priority element subminima for Ownership
YES Amendment – BEE Targets• Companies must maintain or improve their BEE level the year before first participating
in YES, measured at date of first YES verification
• Companies must register with the YES Non-Profit Company as must all YES candidates.
• The new jobs created must be new jobs in addition to existing headcount. There can be no displacement of existing staff or programmes.
• Companies can sponsor positions at EME or QSE.
• Eligible employees in new positions are: ✓ Subject to SA Labour legislation
✓ Must sign FTC or temporary employment contracts
✓ Clearly state if the contract is not to be renewed or made permanent
YES Amendment – BEE Targets• The following Employees are eligible for the YES Initiative:
✓ Between the ages of 18 and 35
✓ Meet the definition of black as defined in the BEE act.
✓ Must be unemployed at date of registering for YES
• Companies must meet a target of the higher of:
✓ 1.5% of the company’s head count in the preceding year; or
✓ 1.5% of the company’s average NPAT for South African operations for the immediately preceding 3 yearsdivided by R55,000; or
✓ The target in Annexure A of table 1.
• If companies make an average loss over the last 3 years, industry norm NPAT calculations must be used.
YES – General Principles• Companies will only be able to get B-BBEE recognition 1 year after first
implementation. They are displaying some leniency in the first year.
• Companies must ensure at least 8 months are completed. Companies have 1 month to replace any drop offs to ensure recognition.
• The Work Place experience does not qualify as a learnership, internship or apprenticeship
• YES companies will be able to claim up to 50% of their Category F and G spend on YES employees
YES - Costs
• Fee per youth of between R5,000 and R9,000 - Building YES network and to giveeach YES candidate a smartphone to assist with training
• R20,000 Registration fee (once off)
• R3,500 minimum monthly stipend paid directly to the youth
YES – B-BBEE Scorecard ImpactB-BBEE recognition for the YES Initiative:
B-BBEE Recognition
Achieve YES Target and 2.5% absorption Increase of 1 level on B-BBEE certificate
Achieve 1.5 x YES Target and 5% absorptionIncrease of 1 level on B-BBEE certificate + 3 bonus
points
Achieve 2 x YES Target and 5% absorption Increase of 2 levels on B-BBEE certificate
Questions?
East London Durban Port Elizabeth Johannesburg Cape Town
T 043 721 1030 041 364 0472 041 364 0472 011 483 3722 021 418 1617
F 043 721 1027 086 414 4926 086 414 4925 011 483 1650 021 418 1598
www.globalbusiness.co.za
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