Employees
Skills attraction, development and retention Human rights in operations outside South Africa Health and safety
HIV/Aids
Altron employs 10 844 full-time and 1 424 temporary/contract people in its South African operations, and 2 522 people in its international operations. All forms of engagement and interactions with employees are guided by the Altron Policy Manual, and the group companies comply with the relevant employment legislation, including among others the Basic Conditions of Employment Act, the Labour Relations Act, the Employment Equity Act and the Skills Development Act. Each subholding group has a dedicated Executive: Human Resources, while Human Resources managers are responsible for employee issues at the operational level.
Considering that the Altron group operates in a wide range of industry sectors, the responsibility for dealing with employees and unions rests with the most senior corporate manager in each operation. Across the group, only one third of employees (4 538) are below management level, by far the most being in the Powertech group. Altogether 46% of these employees are members of unions.
For the Altron group, measured across all employees, the unionisation rate is 15.8%. There was no strike action during the period under review. A Grievance Procedure and Disciplinary Procedure is set out in the Altron Policy Manual and made available to all employees upon their joining the group, and via the intranet. Depending on the issue at hand, Altron engages with employees in a variety of different ways and through various channels.
The most material sustainability issues affecting employees are:
Skills attraction, development and retention
Human rights in operations outside of South Africa
Health & Safety
HIV/Aids.
Skills attraction, development and retention
Skills shortages in the Technology, Media and Telecommunications (TMT) and Information and Communication Technology (ICT) sectors are a global phenomenon and present a significant sustainability challenge for all technology companies, including Altron.
The annual supply of ICT-trained graduates from tertiary education institutions falls far short of industry demand for such skills. In addition, there is a global shortage of existing ICT talent, which makes it difficult for companies to retain such skills at market-related remuneration packages. The fact that technology undergoes constant and fast-paced evolution merely serves to compound the problem and demand ongoing training and development in order to ensure that skilled people are up-to-date with the relevant industry changes.
Approach, governance structure and reporting
Altron addresses skills shortages on three fronts: development of internal and external skills pipelines; attraction of top talent through best-practice employment policies; and retention of existing talent through a combination of career development programmes, remuneration benchmarking and fast-tracking of critical skills.The Altron chief executive takes an active interest in the country’s ICT skills shortage and contributes to industry debate and skills development initiatives that will benefit both the Altron group and the ICT sector as a whole. The Altron Management Services HR committee oversees the group’s skills development, attraction and retention activities, which are also influenced by the Altron remuneration, nomination and transformation committees. The Altron group complies with all relevant South African legislation pertaining to skills development and training, including the dti CoGP, and makes annual submissions to the Department of Labour. Internally, its strategy is outlined in the Altron Policy Manual, which covers the issues of education, training and development. HR executives in each of the subholding groups drive the specific skills development, attraction and retention initiatives at the operational level.
Investment in training
The Altron group budgets 2% of its payroll towards B-BBEE skills development, plus 1% of payroll to Sector Education and Training Authority (SETA) skills development, for a total of 3% of payroll. This compares with the dti CoGP target of 4%. The total invested in skills development for the year under review amounted to R56 million, averaging R5 085 per employee. Altron group companies actively follow the skills development process set out by the relevant SETAs responsible for implementing the National Skills Development Strategy (NSDS) for the sector.Each division has an appointed skills development facilitator and submits an annual Workplace Skills Plan (WSP) to the relevant SETA. Following implementation of the WSP, a summary report is submitted of skills development and training completed. Considering the different requirements for different industries, the Altron group does not use a single metric to manage employee performance. Different companies establish key performance areas and employees across the group receive regular performance and career development reviews.
Initiatives to address skills shortages
Altron
During the year under review Altron undertook a comprehensive review of the skills development programmes offered to the Altron Young Presidents’ Club (AYPC), to ensure that executive training at this level in aligned with the longer-term strategic skills requirements of the Altron group.The AYPC provides an important skills and succession pipeline for the future leaders of the group. It identifies high-potential employees who show a strong capacity for leadership, and provides them with exposure to appropriate levels within the group. In partnership with the Altech Academy, Altron now offers AYPC members a two-year leadership development programme, resulting in a Masters Degree in the Management of Technology and Innovation.
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Altech
The Altech Academy, which enjoyed its inaugural year in 2008 with 98 students, plays a critical role in meeting skills pipeline requirements for Altech as well as the Altron group at large. It offers certificate, diploma, masters and doctorate qualifications in critical skills areas, including project management, management of technology and innovation, key account management and systems engineering. A total of 13 Altech managers enrolled in the Academy’s Accelerated leadership development programme.The company’s engineer-in-training programme was developed specifically to address the shortage of engineering graduates and help secure a future pipeline of this critical skill. A total of 19 engineering graduates are currently enrolled in the 18-month long programme, which provides them with the first-hand work experience required to complete their engineering qualification.
Altech also updated its annual job-mapping and salary benchmarking survey, and made a 4% upward salary adjustment for all employees. This is in addition to the annual salary increase and was implemented to ensure that Altech’s salaries remain competitive with benchmarked industry norms.
Bytes
Bytes People Solutions, Bytes’ internationally accredited education, training, skills development and people consulting arm, makes a valuable contribution to skills development at Bytes. In particular it has achieved tremendous success with its learnerships and received industry-wide recognition for the number of black learners it has been able to train up to full-time employment at various companies within the Bytes group. Code 400: Transformation through skills development
Bytes People Solutions has long been managing IT learnerships for the Altron group and in 2008, embarked on new contact centre learnerships with 50 learners, six of whom are disabled. In late October 2008, Altech Autopage Cellular provided the first group of 20 learners with workplace experience. They were exposed to a number of different areas of the business and gained comprehensive insight into the world of work. Although it was the first time that Altech Autopage Cellular participated as a workplace provider, it exceeded all expectations in mentoring and coaching the learners and in February 2009, the second group of 20 Contact Centre Support learners started their workplace experience in the company.
Powertech
Powertech Transformers identified a shortage of skilled factor floor workers, particularly winders, welders, boilermakers and electrical designers. To address this shortage the company invested R3.5 million in a world-class training centre that focuses on training unskilled workers to full competency under actual working conditions. Twelve winders have graduated to date. The centre meets both skills development and manufacturing requirements of Powertech Transformers and since opening has manufactured 485 windings, with no test failures, zero rework, and 100% on-time deliveries (OTD).During the year under review, an Electrical Designer Induction Training centre was also opened, with plans to recruit around 10 electrical designer trainees annually for the company’s engineering and technology departments. Nine electrical designers have already qualified through the centre and another 11 will be trained in 2009.
A further extension was completed in March 2009 and will provide specialised training in high-frequency brazing, gas brazing, elpress crimping and mechanical crimping.
Aberdare Cables focuses on ongoing skills development for machine operator, technical, supervisors and general leadership competencies through various apprenticeship and experiential trainee systems. During the year it introduced qualifications profiling, a new measure to help meet its target of having 60% of salaried staff with a formal tertiary qualification.
Plans for 2009
Altron recognises that sustainable solutions to the skills shortage challenge will take time to reap rewards. However the group remains committed to investing in the long-term skills development, attraction and retention initiatives. In the coming year it will continue to work closely with the Altech Academy and its partners at the Da Vinci Institute to keep track of the changing skills needs of the ICT industry in general and Altron companies in particular, and to develop new courses to meet training needs as they arise.- Powertech:
- Use the training centre to recruit 14 new apprentices and 10 unemployed individuals for learnerships
- Ensure Aberdare Cables remains a recognised MERSETA company for the next two-year cycle
- Raise management awareness of skills development imperatives
- Train new managers at Aberdare Cables in all aspects of human capital development including performance management, succession planning, talent retention, education assistance, and feeder systems.
- Altech:
- Continue to focus on developing, attracting and retaining the most critically scarce skills, namely software engineering, systems engineering and project management
- Increase membership in the AYPC from 44 to 75 by year-end
Human rights in operations outside South Africa
The Altron group upholds the human rights of employees as put forward by the United Nations Global Compact, and has aligned its operations and strategies with universally accepted principles in the areas of internationally proclaimed human rights and labour.
In South Africa, these principles are enshrined in the Constitution and policed by labour legislation, with which the group fully complies. However, in countries outside South Africa, this may not necessarily be the case. In such instances, Altron recognises that it has a duty to protect the human rights of employees, wherever they are in the world.
Bytes
Bytes has operations outside South Africa’s border in Botswana, Namibia, Mozambique, Mauritius and the United Kingdom. None of these countries pose a risk in terms of human rights abuses and by complying with their labour legislation, Bytes is able to ensure the protection of employees’ human rights in these operations.Altech
Altech UEC has identified poor labour practices as a potential problem in China. The company has a strict policy of zero-tolerance of any human rights abuses and demands written reports, review of all personnel documents and CVs of appointed or allocated staff, and audits of the working environment to ensure that they comply with recognised international human rights standards. Health and safety
The health and safety of all employees is a serious issue for the Altron group and the Altron chief executive takes ultimate responsibility for the group’s performance against key health and safety indicators. Health and safety is guided by an internal health and safety policy that covers the entire Altron group. Each group company also complies with relevant occupational health and safety legislation, standards and certification (OHASA).
Health and safety is integrated into the responsibility of line management throughout the Altron group. In accordance with the Occupational Health and Safety Act (OHASA), most of our operations have health and safety managers and Safety, Health and Environment (SHE) committees which meet on a monthly basis. Health and safety representatives are appointed from the workforce and all employees participate in risk assessments via safety meetings. SHE representatives have been appointed and trained as per the requirements of the OHASA Act, while selected employees have been trained as auditors in preparation for the implementation of the OHASA 18001 H&S System. A safety induction programme forms a standard part of the group’s general training in safety awareness.
The Altron group conducts regular monitoring of key health and safety performance indicators (KPI), including injury frequency rate and occupational clinic report. The engineering manager monitors the SHE manager’s KPIs bi-annually, and all safety aspects are monitored during monthly safety inspections. Altron’s internal audit department, in conjunction with independent consultants, MS Alexander & Associates, reports back to the relevant risk management committees on health and safety risks throughout the Altron group. There were no significant accidents or injuries at Altron’s operations during the year under review and neither were there any fatalities.
Altron makes use of standard SHE measurements and key performance indicators, and SHE is an indicator on every employee score card. Operations certified to ISO 18001. An Altron Health & Safety policy guides operations in dealing with this issue.
In the previous reporting period, it was noted that exposure to lead and sulphuric acid were still issues of concern. The threat of lead poisoning has largely been eliminated through the R1.6 million installation of bag houses for the extraction of lead oxide at Powertech Batteries. The issue of Sulphuric acid is being addressed. Pollution and emissions. Nonetheless, education and training is ongoing to ensure that employees are familiar with the sources of lead in the workplace, and the potential dangers of exposure. Training is also conducted on the disposal of hazardous waste material at sites where lead, or material containing lead, has been used, handled or processed.
HIV/Aids
The Altron group recognises the serious threat that the HIV/Aids pandemic poses to the economy and the nation as a whole. In 2007, it contracted the Aurum Institute of Health Research, a not-for-profit public benefit organisation, to conduct research and assess the potential risk of HIV/Aids throughout the group. In addition, it was decided that it would be prudent to reassess the threat posed by HIV/Aids every three to five years. In the interim, data collection and monitoring would continue on a limited basis to ensure that the impact of HIV/Aids was not increasing to a greater extent than had been predicted by the impact study.
Some indicators that are being monitored on an ongoing basis include the following:
Absenteeism (where available – to track morbidity)
Deaths – being compared to actuarial tables considered representative in this industry
Medical diagnoses and drug prescriptions – highlighting any trends that could be considered indicative of an underlying, early-stage HIV epidemic.
We are confident that the collection of this information will enable us to ensure that HIV/Aids is not posing a threat to the profitability of the Altron group and, more importantly, continues to have limited impact on the lives of our employees. This information will also be included in the review of the previous work that will be conducted every three years and will improve the accuracy of future studies.
Altron does not require prospective / existing employees to be tested for HIV. Should testing ever be required this would be done in conjunction with provisions laid down in the Employment Equity Act. Absolute confidentiality is an overriding principle of the policy and in all activities pertaining to HIV/Aids, including the tracking and measurement of data, the anonymity and confidentiality of employees is rigorously safeguarded.
Report information
The findings of the Aurum report were made available in 2008 and show a prevalence of between 5% and 11% across the Altron group. The results of the study showed that HIV/Aids did not currently pose a material threat to the operations of the group but that specific risk areas existed that warranted further investigation. The breakdown of the report findings per subholding company is as follows:
Powertech
Aberdare Cables is the company most significantly affected by HIV/Aids within the Powertech group. The company has undertaken to re-assess the threat posed by HIV every three to five years. In the interim, data collection and monitoring will continue on a limited basis to ensure that the impact of HIV does not increase beyond what had been predicted by the impact study.Aberdare Cables measures certain indicators on an ongoing basis. These include absenteeism, deaths and limited information on medical diagnoses and drug prescriptions. This last variable highlights any trends in drug prescriptions or medical diagnoses that could be considered indicative of an underlying, early-stage HIV epidemic.
Aberdare’s Occupational Health Clinic monitors all chronically ill persons to ensure appropriate and adequate medical care. Employees suffering from HIV/Aids are not removed from their position as long as medical opinion indicates that they can still perform their job requirements. Suitable alternative employment and/or job modification will be provided when necessary and where possible.
Bytes
HIV/Aids does not pose a significant risk to Bytes Technology Group but the company tracks the numbers of employees who are part of the company medial aid scheme HIV/Aids critical care programme. This does not give an indication of the full extent of prevalence as it does not include those HIV-infected employees who are not enrolled in such a programme. The critical care programme includes ARV treatment, blood tracking and monitoring. HIV/Aids awareness material is included in all induction courses.Altech
The manufacturing environments within Altech, namely Altech UEC, Altech NamITech and Altech Autopage Cellular are at a higher risk than the other operations within the company.During 2008 Aurum recommended that: Altron undertake an evaluation of its suppliers to ensure that adequate systems are in place to ensure that there are no disruptions particularly at Powertech; assess higher risk units situated in provinces such as Gauteng and KwaZulu-Natal; formulate a comprehensive HIV/Aids policy to be adopted across the Altron group; and monitor absenteeism rates as this can highlight increasing prevalence and identify individuals who may benefit from a wellness programme or other intervention.
Company response
Altron’s first step has been to develop a group-wide HIV/Aids policy. The purpose of the policy is to establish guidelines for management and human resource departments in dealing with HIV-positive employees, and to provide for programmes aimed at reducing the risk of HIV/Aids among employees.It affirms that:
Employees with HIV/Aids will be protected against unlawful discrimination and practices HIV-positive status should not constitute a reason to preclude any person from employment Employee benefits depend on the rules and requirements of the relevant funds and schemes which may change from time to time Reasonable precautions should be taken to ensure confidentiality regarding the HIV/Aids status of any employee.
Following further recommendations from external consultants, Altron is this year embarking on phase two of its response, undertaking an evaluation of certain of its key suppliers to ensure that adequate systems are in place to ensure that there are no disruptions to the supply chain. Small companies are often particularly vulnerable to the impact of HIV/Aids and do not have the resources to provide either counselling, testing or care for those who are HIV-positive. Disruptions at these suppliers could impact operations at Altron, particularly in Powertech where delays are likely to be most costly.
Associated with the above, Altron will be conducting assessments of individual operations within the Powertech group, as well as of higher risk units situated in provinces such as Gauteng and KwaZulu-Natal.