Our key tool for development is the empowerment of our people and the community
Why this is important
Empowering our people means providing job security, satisfaction, recognition and opportunities for skills and career development; it is also about enabling our employees to grow with the company and share the value created through their hard work. One of our most meaningful initiatives for delivering genuine social value from our fishing activities is the Oceana Empowerment Trust (the Trust).
- Lock-in period extended to 2021
- Trust has three company-appointed trustees and three employee-elected trustees including an independent trustee
- Seven Trust champions identified and trained to fulfil the role of advocates for the Trust
Fair distribution of value derived from fishing rights
In 2014 we achieved a milestone in Oceana’s empowerment efforts, with our employee share ownership scheme, distributing R292 million to 2 483 employee beneficiaries. The Oceana Empowerment Trust, established in 2006 to advance the group’s transformation strategy, has 2 469 black beneficiaries holding almost 13,2million shares in Oceana through the Trust as at 30 September 2018, representing 10% of the group’s total issued shares. Since 2007, the Trust has:
- Received R415 million in dividends
- R103 million paid out in distribution payments to the beneficiaries
This allows real broad-based empowerment to be delivered not only directly to our employees and beneficiaries, but also to the communities in which they live, and in which we operate.
At Oceana our focus on empowerment is both strategic and operational. It is part of how we do business at all levels throughout the company.
Our continued focus on driving transformation on all elements of the B-BBEE scorecard has resulted in Oceana maintaining a level 2 rating, in terms of the Revised Codes of Good Practice, with a score of 96,77 points out of 109 (2016: 100,39). We also have a recognition rating of 125% for procurement in terms of the Department of Trade and Industry’s (dti’s) B-BBEE scorecard. A summary of our performance against each of the seven elements of the scorecard is provided below.
Our B-BBEE performance
Oceana’s B-BBEE performance as measured against the five elements of the dti B-BBEE scorecard showed a maintained score on our black-owned and black-controlled shareholding. Our three major shareholders are Tiger Brands Limited, Brimstone Investment Corporation and the Oceana Empowerment Trust. Our performance on this score exceeds the dti target for black ownership by 25,0%. Management control in the executive committee and black representation increased.
We have maintained our black-owned and black-controlled shareholding. Our three major empowered shareholders that contributed to this continue to be Tiger Brands Limited, Brimstone Investment Corporation and the Oceana Empowerment Trust, with a combined black ownership holding of 63,2%. We achieved the full 25 points for this element.
We achieved maximum points at both black board member and black executive director levels. Black people now represent 57,1% of board and executive management. The proposed employment equity plans for the next three years have been approved by the Department of Labour. The plans are aligned to the B-BBEE Code’s requirements to ensure continuous alignment with our transformation objectives. We continue to make progress in transforming our senior, middle and junior managerial ranks. Our performance in this element of the scorecard was recognised in the top-three companies in South Africa. We achieved 12,86 points out of a possible 19 points for this element.
We have continued to invest in developing our employees against the backdrop of the scarcity of skills in our sector. Recognised training expenditure on all black employees decreased from R29,2 million in 2016 to R20,3 million in 2017 due to the downturn in performance of the group. The employment equity scorecard, and skills development targets are based on racial demographics of the economically active population. We also support youth development through our learnerships for unemployed youth. In 2017 we placed 116 unemployed learners between the ages of 18 to 35 on our unemployment learnerships, apprenticeships and internship programmes. We achieved 15,49 points out of a possible 25 points for this element.
Enterprise and supplier development
The Revised Codes of Good Practice combined the prior elements of “Preferential Procurement” and “Enterprise Development” into the Enterprise and Supplier Development element. We recognise that ensuring that goods and services are procured from suppliers that meet B-BBEE requirements will ultimately result in greater participation of black people in the economy. Our focus on maximising purchases from compliant B-BBEE companies, exempted micro enterprises (EMEs), qualifying small enterprises (QSEs), black-owned and black-women-owned companies, has resulted in 84,4% of our total measured spend being procured from B-BBEE enterprises, exceeding the dti’s target of 80%. Supplier development initiatives included loans and advances, preferential payment terms, and fleet and administrative support. Our main contribution to enterprise and supplier development continues to be through joint ventures with other smaller fishing companies and supply arrangements. Qualifying expenditure of R1,3 billion was spent on suppliers with B-BBEE credentials with 18,8% of net profit after tax (NPAT) spent on supplier development and 3,9% of NPAT spent on enterprise development. We achieved 38,42 points out of a possible 44 points for this element.