RAIL SUB-SECTOR CODE FOR B-BBEE – INDICATORS OF EMPOWERMENT – EMPLOYMENT EQUITY AND SKILLS DEVELOPMENT.

Source: Gazette 32511, Notice 1162 OF 2009, Draft Integrated Transport Sector Codes

This third article, in a series, discusses the basics of the rail sub-sector code’s INDICATORS OF EMPOWERMENT. Please read the first two articles before reading this one.

EMPLOYMENT EQUITY

The guiding principle is to increase the participation of black people in top management, senior management and professional and technical occupations in the rail industry to create a workforce that truly represents the racial, ethnic and gender diversity of our country. This will require that all stakeholders create a supportive culture within their organisation to attract new talent, facilitate the development of existing employees, and accelerate their progress into key positions within the industry.

Private Industry Commits to:

1. Senior Management: The minimum compliance level for total black representation is set at 60%, and the minimum compliance level for black women representation is set at 30% of all senior management positions.
2. Middle Management: The minimum compliance level for total black representation is set at 75% of all middle management, and the minimum compliance level for black women representation is set at 37% of all middle management positions.
3. Junior Management: The minimum compliance level for total black representation is set at 80%, and the minimum compliance level for black women representation is set at 40% of all junior management positions.
4. Black Disabled Employees: The minimum compliance level for black disabled representation is set at 3% of total staff.
5. Black Women Disabled Employees: The minimum compliance level for black women disabled representation is set at 1.5% of total staff.

Measured entities falling within the QSE’s threshold commit 40% of all management staff to being Black within 5 years. 50% of these positions should be earmarked for black women.

QSEs within this sub-sector commit to 60% of all staff being black within the next 5 years. Black women should occupy 30% of all positions within the next 5 years.

TETA commits to play a significant role in monitoring and supporting stakeholders in meeting their targets.

Measurement principles and Application of the Charter Measurement principles on the employment equity element, is 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 — 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.

SKILLS DEVELOPMENT

The guiding principle is to increase the economic value added of every employee in the rail sector through best-practice Human Resource Development, Skills Development, Employment Equity and Gender policies. A key element will be to identify the critical skills, retain and create quality employment in the sector.

Private Industry must commit to the following:

1. Investing a minimum of 3.5% of the leviable amount on skills development expenditure on Learning programmes as per the Learning Matrix contained in the Codes, for black people. The target is inclusive of all associated costs and the current 1% skills development levy.
2. Investing a minimum of 1.5% of the leviable amount on skills development expenditure on Learning Programmes as per the Learning Matrix contained in the Codes for black women employees.
3. Investing a minimum of 0.3% of the leviable amount on skills development expenditure on Learning Programmes as per the Learning Matrix contained in the Codes for black disabled employees.
4. Investing a minimum of 0.15% of the leviable amount on skills development expenditure on Learning Programmes as per the Learning Matrix contained in the Codes for black women disabled employees.
5. The number of black employees participating in Learnerships or Category B, C or D as a percentage of total employees will be 5%.
6. The number of black women employees participating in Learnerships or Category B, C or D as a percentage of total employees will be 2%.
7. Measured entities qualifying as QSEs to invest 2% of the leviable or payroll whichever is applicable on skills development expenditure on learning programmes for black employees. 50% of this amount to be spend on learning programmes for black women employees.

TETA commits to the following:

1. Expand the number of learnerships available based on the sector’s skills requirements identified in the sector skills plan and the demands of the industry.
2. Facilitate easy access to finance learnerships and_ eliminate bottlenecks and bureaucratic procedures in accessing grants. This would entail streamlining processes and developing user-friendly procedures that encourage companies to participate in learnerships programmes.
3. Introduce, after consulting stakeholders and completing the skills audit, new categories of learnerships-in management, technical and professional occupational categories-to help public and private sector organisations to achieve their employment equity targets.
4. Conduct research to identify the management, professional and technical skills that the industry will require over the next decade and map out future demand/supply scenarios in a detailed skills audit that will guide and inform stakeholders in implementing their EE targets.
5. Pay particular attention to the issue of addressing the current shortage of engineering professionals in the rail industry and make proposals on how to eliminate the skills deficit in the medium term. The proposal will quantify the financial resources that may be required to eliminate the skills deficit.
6. Conduct research on the supply side of the skills development equation, i.e. the institutions that will provide the required management, professional and technical skills. The research will determine whether the identified institutions have the capacity to meet the expected demand and whether their curricula meet the needs of industry.
7. Collect and publish detailed and aggregated statistics on the EE profile of the industry according to occupational level and occupational category.
8. Assist in unlocking the funds from the National Skills Fund (NSF) for Management and Learnership Programmes in the identified areas.

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 Code 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 Code of Good Practice. The formula for the determination of the Adjusted Recognition for Gender – 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.

The next article will list the requirements for preferential procurement, enterprise development and socio-economic development.