learn1
1551
learnerships, apprenticeships
and internships
training
R 129.6 million
invested in training and people development
15 623 people trained
(including health and safety initiatives)
hiv2
HIV/AIDS
DATA CONCERNING HIV/AIDS
IS CONFIDENTIAL
The group uses the services of external agencies to assist with the continuous training, testing and managing of HIV/Aids-related issues.
disabled1
Despite the physical nature of most positions in the industrial sector, the group has 80 PERMANENT EMPLOYEES with disabilities.
R14.6 million
contributed toward socio-economic development
Revenue per segment

29% Diversified industrial

34% Diversified chemical

37% Diversified logistics

20 163 permanent employees
DIVISIONS
Chemical
Integrated Timber
Integrated Bedding
Automotive Components
Passenger Transport
Contractual Logistics
EMPLOYEES
491
1 445
1 629
2 709
4 063
> 9 700
Employee splits
Blackˆ employees as a percentage, per category, of total workforce:

18.2% Top management

16.3% Senior management

30.4% Middle management

61.1% Junior management

95.8% Semi-skilled

97.8% Unskilled

ˆ Black includes African, Coloured and Indian

Blackˆ

White

Male

Female

value-added-statement-2018-2-new-01

KAP has a strategic and multifaceted
approach to developing human capital and
managing identified talent for the future.

Investing in people is key to the group’s efforts to attract and retain competent employees to achieve its strategic objectives to be the industry leader in its chosen markets. This implies a requirement to attract and retain the best people in the industry and to consistently improve skills.

Human resources (HR) and industrial relations activities of all group divisions have been structured to promote effective employee relations. The group focuses on leadership development, succession planning, employment equity and training and development across the workforce to create a sound platform for the continued growth of the company. Operating decisions are made at appropriate levels, with divisional HR committees being responsible for the development of their people.

KAP’s remuneration structures are aligned with the group’s long-term strategic priorities. Due to the group’s decentralised management structures, the board’s human resource and remuneration committee has established divisional human resources and remuneration subcommittees. The divisional subcommittees are responsible for all human capital management and employee matters at a business unit level, within the parameters set by the board committee. The divisional management, through divisional HR committees, are supported by established human resource practitioners at group, divisional and business unit level and they are responsible for considering and advising on employee remuneration, medical and retirement benefits, employment equity/equal opportunities, black economic empowerment, succession planning, training and development, industrial relations and performance management.

Training and development

An appropriately skilled workforce is central to the achievement of the strategic goals of the group. Targeted recruitment and remuneration practices, coupled with effective performance and talent management, play an integral part in ensuring access to a competent workforce at all levels.

Employees are informed of, and have equitable access to relevant training and development opportunities. Divisional targets for employee development are incorporated into the KPAs of each divisional chief executive officer, who is ultimately responsible for the training and development of their divisional employees.

Managers are encouraged to participate in management development programmes. Trainee programmes are sponsored by the group to assist with meeting future skills requirements. The development needs of high-performing individuals are receiving special attention irrespective of gender, age or race.

To support these programmes, strong partnerships have been formed with relevant educational institutions and Sector Education and Training Authorities (SETAs).

The group actively supports various learnerships and internships for both employees and non-employees.

Employee relations

Ethics

The group’s code of ethics commits it to the highest standards of integrity, behaviour and ethics when dealing with stakeholders. Executive management, directors and employees are expected to observe their ethical and fiduciary obligations to ensure that the group’s business is conducted by fair and commercially competitive practices.

The group has established various confidential whistle-blowing facilities, using dedicated hotlines for the reporting of suspected frauds or irregularities.

There were no material incidences of non-compliance with the code of ethics or fines or prosecutions during the period under review.

kapref-posters

Human rights

KAP has incorporated human rights principles into its practices, which are an integral part of its code of ethics and which support its commitment to acting equitably and honestly in the conduct of its business.

The social and ethics committee monitors the group standing and compliance to the Companies Act, which places legal responsibility on companies to take cognisance of all aspects of human rights. The social and ethics committee also monitors the group’s standing in terms of:

  • the goals and purposes of the 10 principles as set out in the United Nations Global Compact (UNGC) around human rights, labour, the environment and anti-corruption;
  • the recommendations regarding corruption of the Organisation for Economic Co-operation and Development (OECD);
  • the Employment Equity Act (EE);
  • the Broad-Based Black Economic Empowerment Act (B-BBEE);
  • good corporate citizenship;
  • the environment, health and public safety;
  • consumer relationships;
  • labour and unemployment;
  • training and development; and
  • exposure to politically exposed people (PEP)

All divisions have signed their commitment to adhere to these principles. The full report is submitted to the social and ethics committee and is reviewed periodically.

Labour practices, trade unions and employee participation

All divisions have disciplinary policies, grievance codes and procedures in place, which are communicated appropriately. Instances of misconduct are addressed by implementing the provisions of disciplinary codes, which allow for corrective behaviour as a first step towards resolving transgressions. The codes have been drawn up in order to apply discipline in a fair and consistent manner, in line with the relevant labour legislation. If employees feel that they have been treated unjustly, they can exercise their rights in terms of the particular division’s internal appeal procedure and the relevant legislation. Employees also have access KAPREF, an independently managed, anonymous ethics hotline, where they can report their grievances.

Circumstances and legislation vary from country to country, which calls for some flexibility in the group’s relationship philosophy. All employees are managed according to the procedures stipulated in the labour laws of each operating country.

Many of the group’s employees form part of organised labour groups or unions.
More than 45% of the total workforce is unionised. Where required, the group has concluded recognition agreements with majority representative unions within the divisional business units.

All the KAP divisions that participated in wage negotiations reached wage settlements in FY2018.

Health and safety

A key objective for the group is the creation and maintenance of an injury-free and safe workplace. Health and safety are managed through committees by divisional and regional health and safety managers, risk managers and occupational health and safety representatives, including representatives from the shop floor.

The CEO is ultimately responsible for health, safety and the environment, which he delegates throughout the organisation. Each business reports back to the board on safety, health and environmental issues. Targets are set by each business, and management are measured against these targets.

External consultants and administrators are appointed when specialised expertise is required or when audits are conducted. Regular hazard identification and risk assessments, internal audits, safety training, management reviews and third-party audits are undertaken.

All new operational employees and all contractors receive health and safety induction training, with regular and ongoing reviews and training. In the logistics businesses, where operational risks could have a direct public impact, annual medical assessment of our drivers are compulsory, and regular training includes driver training, the conveyance of dangerous goods by road, safe work procedures, defensive driving training and fatigue management.
Training also includes first aid, firefighting and general safety awareness.

Integrated computerised safety, health, environmental and quality (SHEQ) management systems are in place and assist greatly in the compilation of accurate and timeous SHEQ reports. In-depth investigations are conducted into all incidents, and mitigation procedures are continuously reviewed.

We strive to go beyond mere compliance with relevant legislation. Accordingly, most of the divisions have been certified with international and national standards. Regular supplier and standard audits are carried out at these certified sites to ensure the retention of certifications. None of the group’s divisions failed certification compliance audits during the year.

HIV/Aids

HIV/Aids is addressed in divisional policies, and divisions have holistic and comprehensive management programmes in place to promote awareness, prevention, treatment and support. Policies cover aspects of confidentiality, non-discrimination and commitment to implement programmes that will be relevant and of value to that division and its employees.

Confidentiality of an individual’s HIV/Aids status is particularly important in an environment where factors such as social stigma, lack of awareness and low socio-economic environments act as barriers to testing. Data regarding HIV/Aids infection is not made available. As an example, drivers in the logistics businesses can do voluntary assessments at rest stops along all South African main road routes.

To ensure confidentiality and privacy, as well as the most appropriate medical and clinical expertise when treating HIV-positive and Aids patients, the group makes use of external service providers for certain aspects of workplace programmes. To manage personal risk, employees are encouraged to ascertain their status through voluntary counselling and testing.

Broad-based black economic empowerment (B-BBEE)

The group observes and remains committed to the principles of B-BBEE. The group proactively aligns day-to-day business practices in South Africa with the broad-based black economic empowerment (B-BBEE) codes and creates opportunities for the youth through learnerships and educational upskilling. The group maintained its level 7 rating.

The company successfully concluded a transaction in its Contractual Logistics division, which became effective on 3 September 2018 and which provides its South African logistics operations with > 51% black and > 30% black-women ownership. The company also founded the Sakhumzi Foundation Empowerment Trust with the objective of consolidating various empowerment activities of KAP within an independent entity, with enduring benefit to a broad range of beneficiaries.

Products and services

We acknowledge that the success of our business is dependent on consistently providing our customers with responsible and sustainable solutions when choosing our products and services. Customer needs are mainly focused on efficiency, cost saving and the implementation of sustainable long-term solutions.

The availability of raw materials is an aspect that receives great attention and we use resources responsibly, providing customers with quality, sustainable and value products and services.

In our supply chain solutions and passenger divisions, great care is taken to ensure that all safety requirements regarding public transportation and road safety are adhered to and are supported by divisional policies and procedures.

Community relations and CSI

The group acknowledges that it has a key role and responsibility in supporting the communities in the areas where it operates. The group addresses this through a focus on community development, education and childcare. Throughout the group, divisions identify and are involved in social projects that are aligned with their strategies and that are usually in close proximity to the operations, to make the biggest impact and difference to these communities.

The businesses actively engage with community members and work with community organisations, NGOs and various community service delivery organisations to develop the appropriate projects and to successfully execute these projects to the best advantage of the recipients.

Read more on a few of these initiatives in the sustainability report.

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