Our Employees. We have incorporated Employment Equity into our Organisation s Balance Performance Scorecard to monitor our organisational performance.
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- Ezra Bond
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1 Our Employees The number of women at employed at senior levels in Rand Water increased yet again, due to the emphasis to employ females in technical and strategic positions. Pictured above is Jabu Morobi, a laboratory supervisor in Organic Chemistry, performing complex analyses on water samples. The work of our Strategic Human Capital Portfolio focuses on the acquisition of key skills, maintaining solid employee relations and retaining talent through the creation of initiatives that build capacity and address the needs of Rand Water and the communities we serve. At the close of the year under review, Rand Water had employees in our total area of operation. We have remained focused on ensuring that the diverse nature of our employee base does not have a negative impact on our mandate of delivering sustainable water and bulk sanitation solutions at the lowest possible cost. Rand Water s Employment Equity landscape consists of Blacks (represented by Africans, Coloureds and Indians) who make up more than 85% of the total workforce. We also have a signifi cant number of people with disabilities and their number has increased from 3.9% in the prior year to 4.5% during the year under review. This increase is attributable to the Technical Disability Learnerships that we offer. With respect to male-female ratios at managerial level, female employees constitute more than 38%. We remain committed to increasing the employability of those groups who are under-represented as required by the country s legislation. We have incorporated Employment Equity into our Organisation s Balance Performance Scorecard to monitor our organisational performance. This in itself is compelling us to focus our recruitment and capacity building initiatives to employ members of designated groups, and thus sustaining both their employability as well as competitiveness. The number of females employed at Rand Water has increased from 28.5% to 29.6%. We have attributed this to efforts by our Strategic Human Capital Portfolio to increase the number of female employees, particularly in the technical fi elds. The creation of a pipeline of technically-skilled employees for Rand Water in the science fi eld is fundamental to achieving the long term strategic objectives of our organisation. Our Scientifi c Services division established a two-year Graduate Development Programme in March 2009, all graduates from the fi rst intake completed their two year graduate development programme. 62
2 A second intake of graduates began at Rand Water in January 2011, and the graduates have been inducted and are functioning within their research environments. We also have a Water Technology Training Programme which focuses its efforts on commercial training activities. Niche markets exist for commercial work to be done within the water sector, in particular, there is a need for Water Services Authorities and Water Services Providers to comply with the Blue Drop audit requirements. Advancing the wellbeing of our employees Our Employee Wellness Model at Rand Water is a people management system that has been designed to focus on the physical, psychological and social wellbeing of our employees. This integrated model allows us to have a holistic overview of the health risk profi le of our employees. We have observed that our Water Technology Training Programme can be instrumental in implementing training modules that can be successfully implemented throughout the water sector in South Africa. More than 76% of Rand Water s employees are members of trade unions, namely the South African Municipal Workers Union (SAMWU) and the United Association of South Africa (UASA). The labour relations environment at Rand Water remained stable during the year under review, with no signifi cant threat of turbulence. For the fi rst time in South Africa, all the country s water utilities negotiated their employees salary increases at a central point under the auspices of the Amanzi Statutory Council. We have continued to cultivate a partnership through participating in structures and processes that are aimed at securing consensus on policy matters that affect our employees. During the year under review, the Stakeholders Forum, which is the highest consensus-seeking body in Rand Water, endorsed the jointly reviewed Disciplinary Code and Grievance Procedure, Guidelines for Task Groups of the Steering Committee and the Bursary Scheme Policy. All stakeholders reached agreement on the reorganisation of workplace issues and the potential impact on jobs. The principles underpinning the Participation, Co-operation and Partnership processes at Rand Water, have also contributed to the stable labour relations environment. Our remuneration philosophy is in place to ensure that we continue to realise our mandate by retaining and attracting the correct calibre of employees. Salary increases for employees also consider the employee's personal performance and competence. During the year under review, we implemented performance management roll-out training for all employees as part of the strategic enablers in our Growth Strategy. The Performance Management System will be formally launched and implemented after proper consultation and engagement with organised labour. We consider our employee wellness programmes central to the sustainable performance of Rand Water. Here, Adziambi Nemakonde and Thandi Mateza are participating in our 'Hunt for Wellness' initiative. Our corporate HIV/Aids Strategy is aligned to our Wellness Model and is also aligned to the National Strategic Plan (NSP) on HIV/AIDS and pertains to all the priority areas of intervention. The Strategy provides support to HIV-infected and affected employees, through awareness, education and access to voluntary counselling, testing and treatment. Our HIV/AIDS campaign is run under the It s My Lifestyle slogan which puts emphasis on individual employees taking responsibility for their health and behaviour and making wise lifestyle choices. This strategy tackles HIV/AIDS as only one of a number of other life threatening diseases resulting from life style choices, with the intention of de-stigmatising the disease. Our Voluntary Counselling and Testing initiatives are done together with other wellness screening tests. Our Employment Equity Strategy Rand Water s Employment Equity Strategy remains one of the strategic business objectives of both our organisation and its Shareholder. The purpose of our Employment Equity Strategy is to achieve the following: The elimination of unfair discrimination at all our workplaces; 63
3 The implementation of affi rmative action measures to advance blacks, women and persons with disabilities (designated groups); Redress the imbalances of the past through fostering diversity; Ensure that all people of South Africa are equitably represented within our workplace based on the demographics of Gauteng; Prohibit and combat unfair discrimination and harassment among employees and create a culture that respects diversity, equality and dignity for all; Promote the equitable representation of designated groups and disadvantaged persons at every occupational level; Accommodate the reasonable needs of designated groups and disadvantaged persons; through appropriate and on-going investment in training and education, for black people and for people with disabilities; Address status and wage disparities in the workplace through consultation, bargaining, and skills development; and Match best practice benchmarks for employment equity. With regard to male-female ratios at managerial levels, female employees constitute more than 38%. We have undertaken to work towards increasing the employability of those who are underrepresented as required by legislation. Composition (%) of black and women as compared to the Gauteng average Rand Water has tradionally used the Gauteng Province as our main benchmarking source. The number of male employees has generally decreased, whilst that of females has increased. Prepare the ground for successful change We have undertaken to work towards increasing the employability of those who are under-represented as required by legislation. The following tables depict Rand Water's demographics in relation to Gauteng Provinces Males Composition of Rand Water Rand Water % Gauteng % African % 73.57% Coloured % 1.83% Indian % 1.22% White % 9.66% Total Females Composition of Rand Water Rand Water % Gauteng % African % 36.24% Coloured % 1.98% Indian % 1.24% White % 10.24% Total
4 Composition (%) of blacks and women at management level (M Q) During the year under review, the number of Blacks (ACI) at senior levels in the organisation (M Q) increased from 548 to 582. This can be attributed to our Growth Strategy; the increase of intakes in to our Strategic Asset Management Division; as well as Band Q Occupational Level the senior managers who were incorporated into the organisation from Rand Water Services (Pty) Ltd. The number of women has increased from 290 to 305 over the same period due to the emphasis to employ females in technical and strategic positions in the organisation. ACI Total Staff Percentage Females ACI All Females Percentage ACI Females Percentage All Females % % 0.13% Executive Management P Senior Management % % 0.42 O Specialists or Middle Management % % 1.65 N Specialists or Middle Management % % 2.97 M Technical or Junior Management % % 4.88 Ms Nazira Desai-Khalil, Manager Records and Archival Services, receives her award for Boss of the Year from Ms Fikile Sithole, Group Governance Executive at our Ziyagezana Excellence Awards function in December Ziyagezana Excellence Awards During the year under review, we continued to prioritise employee recognition and celebrated our eighth annual corporate Ziyagezana Excellence Awards in December This marked the organisation s commitment towards publicly recognising those employees for the exceptional contributions in their areas of work, but it is also symbolic of the organisation s objective towards fostering a high-performance culture. The Awards programme seeks to emphasise and reinforce the desired qualities and behaviours pertinent to creating a positive, productive and innovative work environment. The employee awards guidelines necessitate that there is always fairness, transparency and consistency throughout the process. 65
5 Our Employee Benefits (Rand Water Provident Fund) The Rand Water Provident Fund is a defi ned contribution fund with a defi ned employer and employee contribution rate. The Fund provides retirement, death, disability and withdrawal benefi ts to members and their dependants. The Fund is a privately administered fund in terms of the Pension Funds Act It is administered internally by Rand Water, which is a registered administrator in terms of Section 13B of the Pension Funds Act The Fund is governed by a Board of Trustees which consists of fi ve member-elected trustees and fi ve employer-nominated trustees. The Fund s membership at the fi nancial year end 30 June 2011 refl ected a membership of There were 160 new members who joined the Fund in the fi nancial year. The total contributions received by the Fund for the year were R110 million. Members contribute 8% of pensionable emoluments and the employer contributes 15.87% for the majority of the members. Employees bonuses are pensionable. The Fund invests in terms of Regulation 28 of the Pensions Fund Act. Non-current assets of the Fund equated to R899 million for the year ended 30 June R865 million was held in insurance policies and R34 million was held in direct property. The Fund s current assets were R18 million as at 30 June Total assets of the Fund for the fi nancial year were R917 million. In line with PF130, the Fund subscribes to the following investment strategies: An infl ation-linked strategy, which caters for members with fewer than fi ve years to normal retirement age; and An infl ation-plus-3-5% strategy, which accommodates allother members of the Fund. The infl ation-linked strategy returned 7.1% over the 12-month period to end-june 2011, outperforming its target by 2.5 percentage points. The infl ation plus 3-5% strategy returned 16.8% over the 12-month period, outperforming the target of 8.8%. The valuation of the Fund, which is carried out every three years, has been fi nalised. The result certifi ed by the Fund actuary amounted to a funding level as at 30 June 2010 of %, compared to the 100% funding level as at 30 June 2007, hence the actuary has declared the Fund s solvency. Benefi ts to the value of R60 million were paid out to members in the year. Benefi ts paid to members who retired during the period as well as commuted full lump sums equated to R22 million, with the balance having been paid out for withdrawal, death and disability benefi ts. The Fund grants guarantees to members service providers for their housing loans. Currently, members may not borrow more than 70% of their fund values on this scheme. Whilst the Fund s credit limit is R50 million, guarantees to the value of R40 million were outstanding as at 30 June This facility is renewable annually. 66
6 Our Employee Benefits (Rand Water Medical Scheme) The Rand Water Medical Scheme is a non-profi t closed scheme registered in terms of the Medical Schemes Act 131 of 1998, as amended. It offers attractive benefi ts compared to the options available in the open market. Some of its defi ning features include: in-hospital cover of up to R1.1 million and cover for chronic medication for 24 additional non-prescribed minimum benefi t conditions. Membership is restricted to Rand Water employees. Since its establishment on 1 January 1918, the Scheme has been an in-house administered scheme providing healthcare for members and their dependants. The Scheme is governed by a Board of Trustees, which consists of fi ve member-elected trustees and fi ve employer-appointed trustees. Total contributions received for the year ended 31 December 2010 amounted to R104.8 million, which was subsidized with a generous two-thirds portion by Rand Water. The Scheme boasted a healthy solvency ratio of 82% for the same period which is well over the minimum requirement of the statutory Council for Medical Schemes. During March 2010, the Council for Medical Schemes carried out an accreditation review of the Scheme, as a result of which it has given the Scheme a three-year compliance certifi cate. The Scheme has also improved its customer call centre facility, incorporating it within Rand Water s call centre together with a voice-monitoring system. The Scheme is subject to investigations by the Board of Healthcare Funders Forensics Management Unit. Investigations in the year found certain providers to be corrupt in their dealings with members and some recovery processes are being put in place by our forensic services. A large number of members were dismissed from the Scheme, sending a clear message to members of its zero tolerance to attempts to defraud the Scheme with corrupt practitioners. The Scheme offers two benefi t options to its members and covers just over lives:- Option A This option offers very attractive benefi ts to members and dependants in accordance with the registered rules of the Scheme in the form of a traditional comprehensive healthcare plan. The total membership of this option as at 31 December 2010 stood at Of these, 472 are continuation members (pensioners). The increase in contributions to the Scheme will amount to approximately 9% for the 2011 calendar year. The weekly settlement of medical claims is in line with ensuring member satisfaction and service excellence. The Scheme has several managed care providers for diabetes, HIV Aids, hospital managed care, emergency services, chronic and medicines benefi t management. The Scheme also offers all its members and Rand Water employees an added opportunity to join voluntary, from time to time, a very affordable hospital shortfall insurance product (AdmedGap). The Scheme has implemented a pharmacy network this year in order to curtail the spiralling increase in the cost of medicines of around 25%. Members can access the pharmacy network nearest to them. Option B This is a low - cost primary health care option. It provides health care at various Rand Water site clinics through specifi c healthcare service providers. This option was introduced primarily to cater for the needs of support staff. As at 31 December 2010 its membership stood at 346. A business plan to restructure Option B in 2012 to give more fl exibility and choice to members has been tabled with the Council for Medical Schemes. 67
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