bursaries
843
learnerships
were awarded
in South Africa
training
R140.9 million
invested in training and development
14 000+
employees trained
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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.
employees-1-120x54
Despite the physical nature of most positions in the industrial sector, the group has 68 PERMANENT EMPLOYEES with disabilities.
R15.7 million
contribution to socio-economic development
Revenue per segment

31% Diversified industrial

27% Diversified chemical

42% Diversified logistics

DIVISIONS
Chemical
Integrated timber
Integrated bedding
Automotive components
Passenger transport
Contractual logistics
EMPLOYEES
539
1 425
1 464
2 555
4 095
9 000+
Employee splits
Blackˆ employees as a percentage, per category, of total workforce:
Top management
Senior management
Middle management
Junior management
Semi-skilled
Unskilled
ˆ Black includes African, Coloured and Indian
18.2%
20.6%
28.9%
65.5%
95.8%
96.8%
black-white-80x168

Blackˆ

White

male-female-80x168

MALE

FEMALE

cert
Divisional accreditation

QMS systems and accreditations are in place in approximately 80% of operations with some businesses being covered 100%. Many of the logistics accreditations are site specific and are driven by customer/contract requirements. Most of the QMS systems are verified by various external parties including customers, DEKRA, EQSA, SABS, Lloyds and others.

Accreditations include:
ISO 14001; ISO 9001; ISO 18001; SQAS; SANS 1505; SABS; RTMS; NOSA; SMETA; and Responsible Care.

Value added statement
30 June 2017

CONTINUED OPERATIONS 2017 2016
Turnover 19 783 16 232
Cost of products and services (12 351) (9 223)
Value added 7 432 7 009
OPEX before working capital changes 3 341 2 858
Salaries & wages 4 039 3 700
Turnover (19 783) (16 232)
Inventories (41) (73)
VAT payable
Accounts payable 93 524
Cost of products and services (12 351) (9 223)
     
Income from investments 133 68
TOTAL WEALTH CREATED 7 565 7 077
     
DISTRIBUTION OF WEALTH    
Salaries & wages 4 039 3 700
Interest paid 633 357
Taxation paid 510 482
Dividends and capital distribution paid 479 385
Re-invested 1 904 2 153
  7 565 7 077

54% Salaries and wages

8% Interest paid

7% Taxation paid

6% Dividends and capital distribution paid

25% Re-invested

Investing in people is key to the group’s efforts to attract and retain competent employees to achieve its strategic objectives.

Human resources (HR) and industrial relations activities of all group divisions have been structured to promote effective employee relations. Investing in people is key to the group’s efforts to attract and retain competent employees to achieve its strategic objectives.

Operating decisions are made at appropriate levels, with divisional HR committees being responsible for the development of their people.

Management, through divisional HR committees, considers and advises 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. Yet, the need to employ people with the right level of managerial skill and experience, particularly in the technical and operational disciplines, remains a challenge.

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, where available (Read more). 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 among all race groups.

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

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.

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 group supports the 10 principles of the UN Global Compact, as described by the Companies Act, which places legal responsibility on companies to take cognisance of all aspects of human rights. All divisions have signed their commitment to adhere to these principles. The full report has been submitted to the social and ethics committee and will be 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.

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.
A large portion (more than 40% on average) of the workforce is unionised. Where required, we have 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 FY2017 without industrial action, with the exception of Unitrans Passenger. Unitrans Passenger was affected by the bus industry strike that commenced on 11 April 2017 until 14 April 2017. The strike was only supported by approximately 25% of the total employees in the passenger transport division.

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. 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 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.

Read more: Technology enhances driver and road safety

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 proactively aligns day-to-day business practices in South Africa with the broad-based black economic empowerment (B-BBEE) codes. Commitment to the principles of B-BBEE, to make it real and tangible for the group and its employees, is a key priority.

In accordance with its strategic transformation objectives, Steinhoff International Holdings N.V., KAP’s majority shareholder, has recognised the importance of affording its South African employees an opportunity to participate in the success of its businesses.

Approximately 12 000 KAP Industrial employees participate at various levels in the Steinhoff International share ownership scheme, and collectively hold more than
40 million Steinhoff shares with the associated funding.

During the financial year a dividend of R15 million was declared to scheme participants.

Products and services

We are committed to 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.

Read more: Public safety – a key focus area

Community relations and CSI

Throughout the group, divisions are involved in social projects that are aligned with their strategies. Support is usually given to organisations within close proximity to the operations, to make a difference in such communities.

The most outstanding example of this is Ugie – a small town nestled in the mountains of the northern part of the Eastern Cape. The investment and subsequent progress of the PG Bison particleboard manufacturing plant and the Eastern Cape Forest (ECF) cluster in Ugie have substantially benefited, directly and indirectly, Ugie and its surrounding communities.

Read more: Socio-economic development

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