This is the third article in a series describing the details of the BUS COMMUTER AND COACH SERVICES SUB-SECTOR CODE FOR B-BBEE.
SKILLS DEVELOPMENT
Guiding Principle
The guiding principle is to substantially increase the economic value added (or productivity) of every employee in the bus sub-sector through skills development and employment equity as well as increase the scale of initiatives aimed at developing black professionals and technical experts.
Stakeholders will identify within and outside their businesses a talent pool of black people for accelerated development through mentorship programmes, learnerships, intra-industry exchange and internship programmes, and higher education and training.
Skills development measures include the following:
A measured entity will obtain maximum points when more than 3% of the total leviable amount is dedicated to skills development, training and education-related expenditure on Black employees.
A measured entity will obtain maximum points when more than 1.5% of the total leviable amount is dedicated to skills development, training and education-related expenditure on Black women employees.
A company will obtain maximum points when black employees participating in learnerships represent more than 5% of the total workforce.
A measured company will obtain maximum points when black women employees participating in learnerships represent more than 2.5% of the total workforce.
For QSEs as defined in this charter, the following criteria and targets shall apply:
- Black skills development expenditure on learning programmes as a percentage of payroll or leviable amount (whichever is applicable), for which the target will be 3%; and
- Black women’s skills development expenditure on learning programmes as a percentage of payroll or leviable amount (whichever is applicable) will be 1.5%.
Measurement principles and application of the charter
Measurement principles associated with the skills development element are contained in Statement 400 of Code 400 of the Generic Codes of Good Practice.
The formulae required in the determination of the skills development score are contained in Annexure 400 (A)-B of Statement 400 of Code 400 of the Generic Codes of Good Practice. The formula for the determination of the Adjusted Recognition for Gender found in Annexure 400 (A)-A will not apply. The measurement principles required in the determination of the skills development score for QSEs are contained in Statement 804 of Code 800 of the Generic Code of Good Practice.
Learning Programme Matrix—This matrix is used to ensure that the skills spend is truly beneficial and can also be categorised. The Learning Programme Matrix may be found in Annexure 400(A) of the B-BBEE Codes of Good Practice.
PREFERRENTIAL PROCUREMENT
Guiding Principle
The guiding principle is to use the purchasing power of the public and private sector bus operators to create new B-BBEE companies and develop existing ones. Stakeholders must make deliberate attempts to identify new entrants, particularly in areas such as specialist maintenance, equipment manufacturing and suppliers to the industry, and commit to increase procurement from black-owned and empowered enterprises and implement best-practice supplier development policies.
Stakeholders undertake to determine the current levels of procurement from B-BBEE companies and identify areas where they can achieve significant results over the short term.
Preferential procurement measures include the following:
- B-BBEE procurement spend from all suppliers – A measured entity will obtain maximum points when the B-BBEE procurement spend from all suppliers based on the B-BBEE procurement recognition levels is equal to or greater than 50% of the total measured procurement spend.
- B-BBEE Procurement Spend from QSEs and Exempted EMEs – A measured entity will obtain maximum points when B-BBEE procurement spend from QSEs and EMEs based on the B-BBEE procurement recognition levels represents 10% or more of the total measured procurement.
B-BBEE Procurement Spend from Black-Owned Enterprises: This measures the percentage of the total measured procurement spend with suppliers who are 50% Black-owned. A measured entity will achieve maximum points when 9% or more of total measured procurement is spent with Black-owned suppliers.
B-BBEE Procurement Spend from Black women-owned enterprises: This measures the percentage of the total measured procurement spent with suppliers who are 30% Black women-owned. A company will earn maximum points when 6% or more of total measured procurement is spent with Black women-owned suppliers.
QSEs within this sub-sector commit to procuring a minimum of 50% of total procurement from B-BBEE-compliant suppliers.
Measurement principles and application of the charter
Measurement principles associated with the preferential procurement element are contained in Statement 500 of Code 500 of the Generic Code of Good Practice.
The formulae required in the determination of the preferential procurement score are contained in Annexure 500 (A) of Statement 500 of Code 500 of the Generic Code of Good Practice. Measurement principles required in evaluating the preferential procurement contributions made by QSEs within this sub-sector are contained in Statement 805 of Code 800 of the Generic Codes of Good Practice.
Monopolistic procurement — this type of procurement can only be excluded from total measured procurement if it is from entities that are listed as Schedule 1 (constitutional institutions) or are regulated monopolies.
Imports – imports may be excluded from total measured procurement if the relevant goods and/or services are not being produced in South Africa.
Subcontracting from black owned; black women owned; EMEs, QSEs, and B-BBEE-compliant suppliers are recognised as preferential procurement contributions and form part of B-BBEE procurement. If a subcontracting entity is also involved in enterprise developing one or more of its subcontractors, the procurement spend from such subcontractors will be enhanced by a factor of 1.2.
ENTERPRISE DEVELOPMENT
Guiding Principle
The stakeholder guiding principle is to create and nurture new B-BBEE enterprises within the industry and develop existing ones. This will require all stakeholders to develop strategies to enter into joint ventures and other forms of alliances with B-BBEE enterprises. In order to avoid potential problems (especially in sub-contracting), stakeholders agree to develop a Code of Good Practice to address concerns about the practical application of sub-contracting and include it in the Model Tender and Negotiated Tender Documents.
Enterprise development measures include the following:
- Enterprise Development Contributions – Measure B-BBEE enterprise development contributions as a percentage of Net Profit After Tax (NPAT).
- A measured entity will achieve maximum points when more than 3% of NPAT is dedicated to enterprise development contributions.
- A measured entity will earn maximum points when more than 2% of its bus fleet is used for enterprise development within the operation of different B-BBEE enterprise development partners as a percentage of the total operator bus fleet.
QSEs within this sub-sector must make contributions to enterprise development, which will amount to 3% of NPAT evaluated annually over the next 5 years.
Measurement principles and application of the charter
Measurement principles associated with the enterprise development element are contained in Statement 600 of Code 600 of the Generic Codes of Good Practice. Qualifying contributions for the enterprise development element are contained in Annexure 600 (A)—Benefit Factor Matrix of Statement 600 of Code 600 of the Generic Codes of Good Practice.
The formulae required in the determination of the enterprise development score are contained in Annexure 600 (A) of Statement 600 of Code 600 of the Generic Codes of Good Practice. Measurement principles required in evaluating the enterprise development contributions made by QSEs within this sub-sector are contained in Statement 806 of Code 800 of the Generic Codes of Good Practice.
