MARITIME TRANSPORT & SERVICES INDUSTRY SUB-SECTOR CODE FOR B-BBEE – Part Three – Management Control and Employment Equity

This is the third article discussing the Maritime Transport and Services sub-sector code and will provide information related to management control and employment equity.

Management Control

Guiding Principle

The guiding principle is to increase the participation of black people on MT & SI company boards and similar governing structures to create decision-making structures that truly represent the racial, ethnic, and gender diversity of our country. This involves the promotion of the appointment of black people to boards of directors, executive positions, and top management positions. The appointment of black women to these positions is an integral part of this guiding principle. The industry will be transparent, endeavour to eliminate unscrupulous business practices, including misrepresentation and fraud, and adopt best-practice corporate governance policies as outlined in the King’s report.

The private industry commits to the following:

1. Recruit onto their boards and similar governing structures black directors (who do not necessarily own equity) to reach a target of at least 50% within 5 years. 50% of these targets, which is equal to 25% of the total for the number of black women directors with exercisable voting rights.
2. Recruit onto their boards black directors to constitute 50% of executive directors. 25% of the number of black executive directors should be earmarked for black women.
3. Recruit into senior top management structures in enterprises black people such that a target of 40% of the total number of senior top management positions, such as a Chief Executive Officer, Chief Financial Officer or Chief Investment Officer, will be occupied by black people.
4. 20% of senior top management positions should be earmarked for black women.
5. Recruit black people into top management structures in enterprises black people such that a target of 40% of the total number of other senior top management positions, such as Marketing Director/Manager, Human Resources Director/Manager, and IT Director/Manager is met.
6. 20% of other top management positions (e.g. divisional managers) should be earmarked for black women.
7. Endeavour to recruit black people living with disability at management levels, where they should constitute 3% of total executive management.

If the measured entity does not differentiate between senior top management and other top management, senior top management and the other top management can be collapsed into one indicator – top management. The target remains 40%, and the weighting will be the sum of the senior top management and other top management weighting.

8. QSEs within the sector commit to recruiting black people at top management positions, where they should constitute 50.1% of total top management.
9. Recruiting black women at the top management level, where they should constitute 25% of all such positions.

Measurement Principles and the 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 will not apply to Annexure 200 (A)-A.

Measurement principles needed for the application of the Sub-Sector Code with regards to the management control element for QSEs are contained in statement 802, Code 800, of the Generic Codes of Good Practice.

Employment Equity

Guiding Principle

The principle is to increase the participation of black people in senior management, middle management and junior management in the Maritime Transport & Services Industry to create a workforce that represents the racial, ethnic and gender diversity of our country. This will require that all stakeholders create a supportive culture within their organisations to be an ‘Employer of Choice’, attract new talent, facilitate the development of existing employees, and accelerate their
progress into key positions within the industry.

Private industry commits to the following:

1. Increase the representation of black people in senior management positions so that a minimum of 60% of people at this level are black within 5 years. 50% of the 60% should be black women.
2. Increase the representation of black people in middle management positions so that a minimum of 75% of people at this level are black within 5 years. 50% of the 75% should be black women.
3. Increase the representation of black people in junior management positions so that a minimum of 80% of people at this level are black within 5 years. 50% of the 80% should be black women.
4. Increase the representation of black people living with disabilities in the workforce of the enterprise so that a minimum of 3% of people at this level are black living with disabilities within 5 years. 50% of the 3% should be black women.

If the measured entity does not differentiate between top management and senior management, the top management indicator can be collapsed into the senior management role. The senior management target of 60% will apply, and the target will be the sum of the top management target and senior management weighting.

5. Measured entities falling within the QSE threshold commit 40% of all management staff is to be black within 5 years. 50% of the 40% should be earmarked for black women.
6. QSEs within this sector commit to all 60% of all staff who should be black within the 5 years. 30% of all positions should be occupied by black women within 5 years.
7. Ensure compliance with the Employment Equity Act (EE Act), presenting accurate figures and statistics on EE to the Department of Labour (DoL). These targets will be set in the EE plans within the set period. Due regard should be paid to the composition of the Economically Active Population (EAP) figures published by Stats SA from time to time. These figures serve as targets for the composition of the workforce of enterprises.

Any enterprise which does not comply with the EE Act will be deemed not to comply with the EE element of the MT & SI B-BBEE Charter. TETA commits to playing a significant role in monitoring and supporting stakeholders to meet their EE targets. The Sub-Sector Code Steering Committee on an annual basis will report on this role.

Labour Standards

Guiding Principle

The guiding principle is to develop an industry that is characterised by fair labour practices.

All stakeholders commit to the following:

1. Implement fair labour practices across the board in line with the requirements of the Basic Conditions of Employment Act, the Employment Equity Act and the Skills Development Act. Seafarers employed by South African owners and operators will be afforded the same rights as other workers.
2. Ensure non-discrimination against employees living with HIV/AIDS and allocate funds and resources towards initiatives aimed at HIV/AIDS education, counselling and treatment in maritime communities in conjunction with international best practices.

Measurement Principles and the Application of the Charter

Measurement principles on the employment equity element, are contained in Statement 300 of Code 300 of the Generic Code 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 Code of Good Practice. The formula for the determination of the adjusted recognition for gender in Annexure 300 (A)-A will not apply.

Measurement principles for the determination of the Employment Equity score for QSE are contained in Statement 803 of Code 800 of the Generic Codes of Good Practice.

The next article will discuss the indicators of skills development, preferential procurement, enterprise development and socio-economic development.