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BUS COMMUTER AND COACH SERVICES SUB-SECTOR CODE FOR B-BBEE – Management Control and Employment Equity

Source: Gazette 32511

This is the second article in a series describing the details of the BUS COMMUTER AND COACH SERVICES SUB-SECTOR CODE FOR B-BBEE.

MANAGEMENT CONTROL

Guiding Principle

Industry must commit to increasing black participation on company boards and similar governance structures across the sector to become more representative of the overall country demographics and gender diversity. Stakeholders see to increase black participation on company boards and similar governing structures across the sector to create decision-making structures that truly represent the racial, ethnic and gender diversity of our country. The industry will be transparent, eliminate unscrupulous business practices, including fronting and fraud, and adopt best-practice corporate governance policies.

Management measures include the following:

Board of Directors

A measured entity will achieve maximum points if 50% or more of the seats on the Board of Directors are held by black persons. The applicable percentage for the coach industry is equal to or greater than 50%; and a measured entity will achieve maximum points if 25% or more of the total seats on the Board of Directors are held by black women. The applicable percentage for the coach industry is equal to or greater than 25%.

Executive Directors

A measured entity will achieve maximum points if 50% or more of all executive positions are held by black persons. The applicable percentage for the coach industry is equal to or greater than 50%; a measured entity will achieve maximum points if 25% or more of all executive positions are held by black women.

Senior Top Management

A measured entity will achieve maximum points if 40% or more of all senior top management positions are held by black persons. The applicable percentage for the coach industry is equal to or greater than 40%; and a measured entity will achieve maximum points if more than 20% of all senior top management positions are held by black women in bus and coach services.

Other Top Management

A measured entity will achieve maximum points if 40% or more of all other top management positions are held by black persons. The applicable percentage for the coach industry is equal to or greater than 40%; a measured entity will achieve maximum points if 20% or more of all other top management positions are held by black women in bus, commuter and coach services.

For QSEs as defined in this charter, the following criteria and targets shall apply:

  1. Total Black top management representation, for which the target will be 50.1% of all top management positions.

Evaluation guidelines:

  1. Senior Top Management – have individual responsibility for overall management of the enterprises;
  2. Other top management have responsibility for their area of responsibility only; and
    3.. If a measured entity does not distinguish between Senior Top Management and Other Top Management, this may justify a single grouping under “Senior Management”, but individuals included here cannot be counted under the Employment Equity scorecard as well.

Measurement Principles and Application of the Charter

Measurement principles associated with the management control element are contained in Statement 200 of Code 200 of the Generic Code of Good Practice.

The formulae required in the determination of the management control score are contained in Annexure 200 (A)-B of Statement 200 of Code 200 of the Generic Code of Good Practice. The Adjustment Recognition for Gender found in Annexure 200 (A)-A will not apply. Measurement principles needed for the application of the Sub-Sector Code with regard to the management control element for QSEs are contained in statement 802 of Code 800 of the Generic Codes of Good Practice.

EMPLOYMENT EQUITY

Guiding Principle

The guiding principle is to increase the representation of black people in senior management and professional, technical and supervisory occupations in the bus industry. This will require that all stakeholders create a supportive culture within their organisations to attract new talent, facilitate the development of existing employees, and accelerate their progress into key positions within the industry.

Employment equity measures include the following:

Senior management – A measured entity will obtain maximum points when 43% of all senior managers are black.
Black Women Representation at Senior Management – A measured entity will obtain maximum points when 22% of all senior managers are black women.
Middle and junior management – A measured entity will obtain maximum points when 63% and 68% of all middle and junior managers are black, respectively.
Black Women representation at middle and junior management – A measured entity will obtain maximum points when 32% and 34% of all middle and junior managers are black women, respectively.
Semi-skilled and unskilled women representation – A measured entity will obtain maximum points when more than 20% of all semi-skilled and unskilled positions are composed of black women.
Black People living with disability – A measured entity will obtain maximum points when more than 1% of the total workforces are black employees with disabilities. The corresponding target for bus commuter and coach services is 0.5% black women employees with disabilities.

For QSEs as defined in this charter, the following criteria and targets shall apply:

Total Black management representation, for which the target will be 40% of all management positions;
Total Black women management representation, for which the target will be 20% of all management positions;
Total Black representation, for which the target will be 60% of all employees; and
Total Black women representation, for which the target will be 30% of all employees.

Measurement Principles

Measurement principles on the employment equity element are contained in Statement 300 of Code 300 of the Generic Codes of Good Practice. The formulae required in the determination of the employment equity score are contained in Annexure 300 (A)-B of Statement 300 of Code 300 of the Generic Codes of Good Practice. The formula for the determination of the adjusted recognition for gender found in Annexure 300 (A)-A will not apply. Measurement principles for the determination of the Employment Equity score for QSEs are contained in Statement 803 of Code 800 of the Generic Codes of Good Practice.

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