 |
 |
|
TRANSFORMATION
|
|||||
 Humphrey Khoza
Chairman - Transformation Committee
|
Primedia's
transformation strategy
is focused on creating
a culture that drives
entrepreneurship
and innovative thinking,
which in turn creates
opportunities and ensures
growth.
|
INTRODUCTION
Given
the discriminatory imbalances of the past, Primedia recognises
that transformation is a key business imperative, which is necessary
to redress the disparities in employment, education and income
levels of historically disadvantaged
South Africans. Primedia has implemented a programme of
action, under the direction of the group CEO, to redress these
imbalances in a fair and equitable manner. The programme is integrated
into the group's strategic business goals and is monitored on
an ongoing basis by the group's transformation committee.
OBJECTIVES
In
terms of Primedia's transformation charter, the group's transformation
objectives are as follows:
•
To instill a sense of value, individual dignity and pride
within the group;
•
To create opportunities for black economic empowerment,
skills transfer and outsourcing for previously disadvantaged groups;
•
To redress past imbalances in the group's staffing structure
and eliminate all forms
of discrimination, whether based on race, religion or gender;
and
•
To empower previously disadvantaged individuals through
education, training and
the recognition of all forms of prior learning and learning
from experience.
ACHIEVEMENTS
We
are extremely pleased that our transformation efforts have been
publicly recognised in the Financial Mail/Empowerment survey,
which ranked Primedia as the 17th most empowered Top 200 listed
company, 2nd most empowered company in the media sector, and 3rd
most empowered company in the management category. In addition,
Primedia was ranked 14th by the SA Women Inc. Leadership Census
in terms of female representation at managerial level and 13th
of the Top 25 empowerment companies in terms of employment equity.
Our progress to date against our transformation objectives has
been as follows:
|
|||
 |
|||||
 |
 |
|
EMPLOYMENT
EQUITY
Primedia
has a published employment equity policy, which is a key objective
of its recruitment strategy and aimed at the ongoing development
of our staff. The group submits employment equity plans and reports
to the Department of Labour on an annual basis. In terms of the
group's operating commitment, black managers have been appointed
to the boards of several divisions within Primedia to ensure the
maximum transfer of skills and to encourage the development of
specialist management skills. Primedia's workforce profile, particularly
at executive and senior management levels has improved over the
past year and reflects the combination of careful recruitment
and selection, internal advancement and the nurturing and development
of talent from within the group. The group's management talent
at junior management
has declined over the year, which is testimony to the competitive
environment that the group operates in. This is being addressed
through benchmarked remuneration policies.
SKILLS
DEVELOPMENT
It
is acknowledged that there is a skills shortage at senior management
levels in most industries in South Africa and Primedia operates
in an environment where this poses difficulties in maintaining
the desired momentum for transformation. Primedia's policies and
strategy in terms of skills development are in line with the
Department of Labour's employment equity guidelines and supports
our ongoing commitment to attract and retain our key black staff
members.
We
have embarked on a variety of leadership development programmes
to enhance and develop management capability among our
historically disadvantaged employees. In addition, the group spends
in excess of 1,5% of its payroll on skills development, with at
least 60% of the
spend going directly to training historically disadvantaged
individuals within the group.
|
EQUITY
OWNERSHIP
The
board of Primedia remains committed to its target of ensuring
that at least 25% of its equity is owned by historically disadvantaged
individuals as soon as is practically possible. The group has
developed a range of strategies to achieve this, including facilitating
direct equity ownership in underlying subsidiaries with the view
to exchanging these interests for Primedia shares in future. Primedia's
equity ownership model is centred around entrenching black ownership
and control at the holding company level. It is here that the
Mineworkers Investment Company (MIC) has joint voting control
over Primedia (45,8%) whilst owning a 6,5% economic interest in
the company.
In
order to extend the level of its economic ownership in Primedia,
MIC will continue to acquire Primedia shares directly in the market.
However, given MIC's limited resources, it is vital that Primedia
facilitates, through shareholder friendly initiatives, MIC's increased
economic interest in Primedia. This has already been activated
by Primedia through structured deals in Primedia Outdoor and more
recently through the buyback
of the Hosken Consolidated Investments' minority interest
in Africa on Air (the licence holder of 94.7 Highveld Stereo)
whereby Primedia has given financial support to MIC to acquire
significant interests in these quality companies. These initiatives
should result in wealth creation for MIC, which will be converted
into Primedia shares at a future point in time.
Over
the years, Primedia's direct financial support of empowerment
entities has been significant, including over R300 million of
Primedia's own capital invested to enable empowerment companies
to acquire interests in a number of our business, including Ster-Kinekor
and Africa on Air. In addition, Primedia has recently created
R180 million of value for empowerment shareholders, following
the disposal of HCI's minority interest in Africa on Air. This
was created through the financing
structure put in place by Primedia when Africa on Air was
acquired in 1996, as well as Highveld's impressive performance
since acquisition.
|
|||
 |
|
|
PREFERENTIAL
PROCUREMENT |
|
|||