Ethical operations – reporting on the 6 capitals
Human capital
Clover is committed to:
- establishing a culture of exceptional performance
- maintaining a culture of legal compliance
- developing and growing all employees
- creating a competent and diverse workforce
- establishing a pleasant, healthy and motivating working climate.
The ever-changing business environment has necessitated ongoing re-assessment of our human capital strategy. During this past financial year, we made significant changes to certain pillars supporting the strategy. These included:
- a revised approach to the use of temporary employment services
- modifications to certain employee retention strategies
- a fresh approach to managing individual and team performance
- a revision of the impact of our Africa expansion strategy on our human capital.
Legislation
Clover is committed to lawful and ethical business. As regulators continue issuing new regulations and amending existing ones, Clover ensures that these updates are communicated and implemented throughout the business. Ongoing training is bolstered by periodic internal assessments of awareness of current legislation. Our Social and Ethics Committee monitors and takes cognisance of relevant legislation, other legal requirements and prevailing codes of best practice.
Clover has moved beyond compliance, as we realised that having a diverse workforce is not compliance or a box that needs to be ticked. To support value creation in the long term, we need to promote INCLUSION in all its variations. Clover must not only embrace physical diversity such as race, gender, age, physical ability, but also DIVERSITY OF THINKING. This requires all Clover people to embrace diversity in all its forms.
Attracting and retaining employees
Achieving our vision and mission is largely dependent on Clover's ability to attract and retain high-calibre individuals. The 21st century workforce is global, highly connected, technology-savvy, and demanding. As Clover expands its reach across Africa, critical new skills are scarce and their uneven distribution around the world has forced Clover to develop innovative new ways to find people, develop capabilities, and share expertise.
At Clover, we have a multi-generational workforce that is highly diverse, and requires constant engagement. Clover's engagement and retention mechanisms are directly related to our “Way Better” fabric of doing business.
Clover's brand reputation helps us to attract, source, recruit, and access talent. To drive passion and engagement, we are persuading the aging Baby Boomer generation to extend their working lives to train and mentor our newer Millennial generation employees.
TOTAL NUMBER OF EMPLOYEES OF JUNE 2015
| Company | Permanent | Fixed Term/ Temp |
Grand Total |
| Clover SA (Pty) Ltd | 6 982 | 453 | 7 435 |
| Clover Fonterra Ingredients (Pty) Ltd | 13 | 0 | 13 |
| The Real Beverage Company (Pty) Ltd | 164 | 3 | 167 |
| Clover Waters (Pty) Ltd | 33 | 3 | 36 |
| Clover Dairy Namibia (Pty) Ltd | 47 | 40 | 87 |
| Clover Swaziland (Pty) Ltd | 33 | 13 | 46 |
| Clover Botswana (Pty) Ltd | 322 | 30 | 352 |
| Clover MilkyWay (Pty) Ltd | 91 | 2 | 93 |
| Lactolab (Pty) Ltd | 8 | 1 | 9 |
| Grand Total | 7 693 | 545 | 8 238 |
Percentage of employees who are permanent: 93,38.
TOTAL NUMBER OF EMPLOYEES JUNE 2016
| Company | Permanent | Fixed Term/ Temp |
Grand Total |
| Clover SA (Pty) Ltd | 7 694 | 472 | 8 166 |
| Clover Fonterra Ingredients (Pty) Ltd | 13 | 13 | |
| The Real Beverage Company (Pty) Ltd | 125 | 1 | 126 |
| Clover Waters (Pty) Ltd | 45 | 3 | 48 |
| Clover Dairy Namibia (Pty) Ltd | 100 | 1 | 101 |
| Clover Swaziland (Pty) Ltd | 34 | 7 | 41 |
| Clover Botswana (Pty) Ltd | 336 | 2 | 338 |
| Clover MilkyWay (Pty) Ltd | 102 | 6 | 108 |
| Lactolab (Pty) Ltd | 7 | 1 | 8 |
| Grand Total | 8 456 | 493 | 8 949 |
Percentage of employees who are permanent: 94,49.
EMPLOYEE TURNOVER FOR PERMANENT EMPLOYEES
| 2015 | 2016 | |||
| Company | Total who left |
% | Total who left |
% |
|---|---|---|---|---|
| Clover SA (Pty) Ltd | 696 | 9,97 | 555 | 7,21 |
| Clover Fonterra Ingredients (Pty) Ltd | 0 | 0 | 2 | 15,38 |
| The Real Beverage Company (Pty) Ltd | 16 | 9,76 | 23 | 18,40 |
| Clover Waters (Pty) Ltd | 2 | 6,06 | 2 | 4,44 |
| Clover Dairy Namibia (Pty) Ltd | 21 | 40 | 34 | 34,00 |
| Clover Swaziland (Pty) Ltd | 6 | 18,18 | 10 | 29,41 |
| Clover Botswana (Pty) Ltd | 48 | 14,91 | 35 | 10,42 |
| Clover MilkyWay (Pty) Ltd | 0 | 0 | 13 | 12,75 |
| Grand Total | 789 | 10,39 | 674 | 7,98 |
Note: Data for Lactolab (Pty) Ltd is not available for the 2015 and 2016 financial years.
PERCENTAGE OF EMPLOYEES WHO ARE WOMEN
| Permanent | Fixed Term/Temporary | Total | ||||||||||
| % | % | % | ||||||||||
| Company | Male | Female | Total | Women | Male | Female | Total | Women | Male | Female | Total | Women |
| Clover Botswana (Pty) Ltd | 233 | 103 | 336 | 30,65 | 0 | 2 | 2 | 100,00 | 233 | 105 | 338 | 31,07 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Clover Dairy Namibia (Pty) Ltd | 87 | 13 | 100 | 13,00 | 1 | 0 | 1 | 0,00 | 88 | 13 | 101 | 12,87 |
| Clover Fonterra Ingredients (Pty) Ltd | 6 | 7 | 13 | 53,85 | 0 | 0 | 0 | 0,00 | 6 | 7 | 13 | 53,85 |
| Clover MilkyWay (Pty) Ltd | 59 | 43 | 102 | 42,16 | 6 | 0 | 6 | 0,00 | 65 | 43 | 108 | 39,81 |
| Clover SA (Pty) Ltd | 5973 | 1721 | 7694 | 22,37 | 298 | 174 | 472 | 36,86 | 6271 | 1895 | 8166 | 23,21 |
| Clover Swaziland (Pty) Ltd | 26 | 8 | 34 | 23,53 | 6 | 1 | 7 | 14,29 | 32 | 9 | 41 | 21,95 |
| Clover Waters (Pty) Ltd | 36 | 9 | 45 | 20,00 | 1 | 2 | 3 | 66,67 | 37 | 11 | 48 | 22,92 |
| The Real Beverage Company (Pty) Ltd | 90 | 35 | 125 | 28,00 | 1 | 0 | 1 | 0,00 | 91 | 35 | 126 | 27,78 |
| Lactolab (Pty) Ltd | 2 | 5 | 7 | 71,4 | 1 | 0 | 1 | 0,00 | 3 | 5 | 8 | 62,5 |
| Grand Total – 2016 | 6 512 | 1 944 | 8 456 | 22,98 | 314 | 179 | 493 | 36,38 | 6 826 | 2 123 | 8 949 | 23,70 |
| Grand Total – 2015 | 5 854 | 1 839 | 7 693 | 23,90 | 376 | 169 | 545 | 31,00 | 6 230 | 2 008 | 8 238 | 24,37 |
Strategic resourcing
Clover's dynamic environment requires that we anticipate the future competencies needed to execute our strategy. To ensure that Clover's productivity remains optimised, we must regularly review the composition of our labour force and our utilisation of resources. Long term value creation requires a labour force that has:
- business acumen and understands the CORE (Clover's business model)
- the collaborative ability to build cross functional teams
- global cultural agility
- creativity
- customer centricity
- influence and Inspiration
- the ability to build creative and effective teams.
Alignment of employees
Business and individual objectives have been aligned to Clover's vision and mission by using the Balanced Scorecard and Key Performance Indicators (KPIs). We believe that employee alignment is critical for building the culture of exceptional performance that drives business success. We have transformed Clover's HR team into skilled business consultants and business partners. Clover is refining the performance management platform that was introduced last year. The HR team is tasked with managing service levels, designing service focused systems and measuring employee quality of service. This is done using advanced analytics. We arrange special events to share and clarify the company's objectives, vision and strategy.
Productivity and continuous improvement
A continuous improvement mind-set is needed to maintain Clover's competitive advantages. Our “Way Better” initiatives at individual and team levels focus on cost, speed, quality, safety and morale.
Acquisitions and mergers present the opportunity to take lessons from these entities across to existing Clover operations, while also using our industry knowledge and resources to tackle their inefficiencies.
Equipping our employees with the right skills remains a high priority. Clover's investment in human capital training and development during this year was as follows:
| Clover SA Annual Training Report |
|||||
| Intervention | 2016 | 2015 | 2014 | 2013 | 2012 |
| Number of employees trained | 2 786 | 2 601 | 2 127 | 1 953 | 2 224 |
|---|---|---|---|---|---|
| Total training spend per year (R'000) | R16 070 | R13 486 | R8 337 | R7 965 | R4 879 |
| Training spend per employee | R1 902 | R1 657 | R1 298 | R1 215 | R744 |
| Number of days spent on training | 12 845 | 15 306 | 6 705 | 4 627 | 2 965 |
| 2016 | 2015 | 2014 | ||||
| Intervention | Total employees |
Black employees |
Total employees |
Black employees |
Total employees |
Black employees |
| Number of employees trained | 2 786 | 2 102 | 2 601 | 2 167 | 2 127 | 1 715 |
|---|---|---|---|---|---|---|
| Number of employees enrolled on Learnerships, Skills Programmes and Apprenticeships | 608 | 454 | 455 | 380 | 344 | 308 |
| Number of employees on Formal Workplace Experience and In-Service Training Programmes | 30 | 28 | 24 | 21 | 38 | 29 |
| Number of bursaries (employee/unemployed) granted for degree and diploma studies | 21 | 9 | 26 | 12 | 36 | 17 |
| Value of bursaries granted for Degree and Diploma Studies | R120 000 | R120 000 | R325 113 | R191 864 | R678 023 | R461 135 |
* Only one new bursary was awarded in the 2016 financial year. Skills development focus shifted to occupationally directed learning programmes such as learnerships, apprenticeships, workplace experience and internship programmes.
SIGNIFICANT ACHIEVEMENTS INCLUDE:
- Clover was awarded the Diamond Award (2nd Place) in the Large Company Category by the Food and Beverage Seta for providing increased opportunities to employed and unemployed people to complete occupationally directed programmes (learnerships, skills programmes, internships, and apprenticeships). South African Breweries took the top spot, with the other three finalists being Oranjevis Joint Venture, Distell Ltd and Tiger Management Services.
- Consistent improvement over the last three years of Clover's score in the skills development element of the B-BBEE Scorecard.
- Clover received a special commendation from the University of Stellenbosch Business School for the excellent performance and achievements in the 2015 academic year of Clover employees that completed the Management and Senior Management Development Programmes with the business school.
New skill sets will be required as Clover and our industry sectors evolve. This will necessitate a renewed focus on fast tracking, coaching and mentoring of young talent, supported by competence building and people development throughout the business.
Learning and development
To retain Clover's position as one of Southern Africa's leading fast moving consumer goods companies, Clover proactively works to develop employees in all disciplines.
We have focused specifically on Wholesale and Retail Operations Learnerships, Job Technical Training Programmes at our production facilities and the upskilling of sales personnel and management. A large number of employees were exposed to a range of management and leadership programmes and a number of internships were introduced.
The formal programmes depicted in the diagram to the right are in place or being finalised for implementation in the 2016/17 financial year.
Employee Wellness
Clover is committed to proving a safe and healthy work environment for our employees. Organisational and individual wellness initiatives enable employees to maintain healthy mindsets and work environments.
To support a healthy work environment, Clover provides:
- access to two medical aid schemes, namely Discovery and Umvuzo
- clinic facilities at certain major sites. These are manned by full time professionals
- annual medicals for management
- trauma counselling through International Counselling and Advisory Services (ICAS)
- a generous leave policy that grants adequate rest periods to employees
- trauma cover for life threatening diseases.
LEARNING AND DEVELOPMENT INITIATIVES
Please click on the image to see an enlarged version.
TOTAL NUMBER OF PERSON HOURS WORKED (PHW)
| Company | Permanent | Temporary | Gross man-hours July 15 to June 16 |
Absent days* |
Nett total man-hours for 2016 |
Nett total man-hours for 2015 |
| Clover SA (Pty) Ltd | 18 003 960 | 1 104 480 | 19 108 440 | 1 711 496 | 17 396 944 | 17 208 506 |
|---|---|---|---|---|---|---|
| Clover Fonterra Ingredients (Pty) Ltd | 30 420 | – | 30 420 | 3 016 | 27 404 | 26 329 |
| The Real Beverage Company (Pty) Ltd | 292 500 | 2 340 | 294 840 | 36 840 | 258 000 | 253 012 |
| Clover Waters (Pty) Ltd | 105 300 | 7 020 | 112 320 | 7 584 | 104 736 | 83 141 |
| Clover Dairy Namibia (Pty) Ltd | 234 000 | 2 340 | 236 340 | 9 312 | 227 028 | 177 250 |
| Clover Swaziland (Pty) Ltd | 79 560 | 16 380 | 95 940 | 4 280 | 91 660 | 84 588 |
| Clover Botswana (Pty) Ltd | 786 240 | 4 680 | 790 920 | 108 184 | 682 736 | 895 127 |
| Clover MilkyWay (Pty) Ltd | 238 680 | 14 040 | 252 720 | ** | n/a | – |
| Grand Total | 19 770 660 | 1 151 280 | 20 921 940 | 1 880 712 | 18 788 508 | 18 727 954 |
* Absent days includes annual leave days.
** No data available
Note: Data for Lactolab (Pty) Ltd is not available for the 2015 and 2016 financial years.
In addition to the above, the total man-hours lost due to strike activity amounted to 10 699 hours or 1 337 man-days from the period 1 July 2015 to 30 June 2016.
TOTAL NUMBER OF PERSON DAYS LOST DUE TO ABSENTEEISM
| Company | Family responsibility |
Sick | Special | Study | Grand total for 2016 |
Grand total for 2015 |
| Clover SA (Pty) Ltd | 5 109 | 29 361 | 13 902 | 838 | 49 210 | 41 684 |
|---|---|---|---|---|---|---|
| Clover Fonterra Ingredients (Pty) Ltd | 4 | 53 | 19 | – | 76 | 41 |
| The Real Beverage Company (Pty) Ltd | 103 | 7 | 1 434 | 9 | 1 553 | 1 172 |
| Clover Waters (Pty) Ltd | 25 | 99 | 35 | 7 | 166 | 138 |
| Clover Dairy Namibia (Pty) Ltd | 40 | 88 | 25 | 5 | 158 | 99 |
| Clover Swaziland (Pty) Ltd | – | 37 | – | – | 37 | 125 |
| Clover Botswana (Pty) Ltd | 94 | 1 436 | 326 | 66 | 1 922 | 1 490 |
| Grand Total | 5 375 | 31 081 | 15 741 | 925 | 53 122 | 44 748 |
* No data is available for Clover MilkyWay (Pty) Ltd and Lactolab (Pty) Ltd for the 2015 and 2016 financial years.
Change of the labour landscape
We are pleased to report that Clover's work and labour environment remained cordial and stable throughout the past year. We train our managers to conduct ongoing and open communication with their employees. Management and labour representatives communicate regularly and constructively at a national and branch levels. The following table shows the percentage of employees belonging to trade unions:
Percentage of permanent employees who belong to a Trade Union
| Company Name | Percentage 2015 |
Percentage 2016 |
| Clover SA (Pty) Ltd | 49,61 | 48,00 |
|---|---|---|
| Clover Fonterra Ingredients (Pty) Ltd | 0,00 | 0,00 |
| The Real Beverage Company (Pty) Ltd | 41,10 | 36,80 |
| Clover Waters (Pty) Ltd | 60,61 | 66,67 |
| Clover Dairy Namibia (Pty) Ltd | 29,79 | 33,00 |
| Clover Swaziland (Pty) Ltd | 0,00 | 0,00 |
| Clover Botswana (Pty) Ltd | 41,93 | 57,01 |
| Clover MilkyWay (Pty) Ltd | 0,00 | 37,20 |
| Grand Total | 45,00 | 48,73 |
Note: Data for Lactolab (Pty) Ltd is not available for the 2015 and 2016 financial years.
Employment Equity
Clover fully supports employment equity in the workplace and various measures are in place to contribute towards our employment equity objectives. These include bursaries, internships and other employee development initiatives. Employment Equity (EE) remains a primary focus area, supported by measures that will enable Clover to achieve its employment equity objectives. These include:
- taking steps to appoint suitably qualified candidates from the designated groups as vacancies arise
- training and development initiatives to prepare talented candidates to fulfil Clover's longer term employment equity objectives
- an employment equity report, submitted to the Department of Labour, that details our transformation progress.
Clover supports the relevant Codes of Good Practice. We do not accept unfair discrimination in respect of race, colour, language, religion, gender or political views or on the grounds of disability. Therefore, all employees receive the same opportunities to develop according to their merit and ability.
Clover's Executive Committee is responsible for implementing and monitoring our EE plan. In executing its duties, the Executive Committee assigns specific responsibilities to individuals and managers. Site managers are responsible for implementing EE plans at Clover's sites. Our HR department monitors appointments in terms of the EE plan and reports annually to the Social and Ethics Committee on progress towards achieving EE targets.
Clover has increased the number of employees from designated groups as tabled below:
Percentage of staff from designated groups at June 2016
Employment Equity Plan – numerical targets
To improve diversity in the workplace, and especially to address the levels of representation of people from designated groups, Clover is committed to achieving the targets set out below:
| Affirmative action measures and objectives** | 2015/2016 Objectives % |
Achieved 30 June 2016 % |
2016/2017 Objectives % |
| Black people on F Band | 14,29 | 14,29 | 16,66 |
| Black people on E Band | 21,05 | 12,50 | 16,66 |
| Black women on E Band | 15,79 | 6,25 | 5,55 |
| Black people on C5 – D5 Band |
26,32 | 25,78 | 27,00 |
| Black women on C5 – D5 Band |
9,09 | 7,88 | 8,27 |
| Black people on C1 – C4 Band |
59,66 | 60,98 | 62,30 |
| Black women on C1 –C4 Band |
14,83 | 16,07 | 16,27 |
| Disabled people | 0,58 | 0,57 | 0,57 |
* 2016 data includes MilkyWay employees for the first time.
** 2016 objectives have been adjusted from the prior year following a Section 43 review by the department of labour in December 2015.
Broad-Based Black Economic Empowerment (B-BBEE)
Clover supports the transformation of South Africa's economy and we regularly review our overall business strategy in the context of these principles.
Clover's most recent B-BBEE verification was performed by Net Value Services (Pty) Ltd, an IRBA approved verification agency. Based on our June 2015 year-end, Clover was assessed against the current Agri B-BBEE Sector Codes for the third time. Clover's overall score was 68.52, which retained our status as a Level 4 B-BBEE contributor.
The extent to which the Agri Sector Codes will be modified in accordance with the newly amended generic B-BBEE Codes, which became effective as from 1 May 2015, is uncertain. All sector codes were intended to be aligned to the amended generic B-BBEE Codes by 31 October 2015, but no feedback has yet been received from the Department of Agriculture, Forestry and Fisheries.
Once the Agri Sector Codes have been finalised, Clover will re-assess its B-BBEE strategy and make the necessary adjustments.
Innovation and technology
Clover is presently improving its capability to generate information that proactively adds value to the business. We not only need a system for records, but also require a system that engages and interrogates data.
Following the successful implementation of the new payroll system, Clover is presently implementing phase two of our integrated human capital platform, which will enhance performance management, talent management, recruitment and learning for Clover's people.
Africa expansion
Potential opportunities in Africa are constantly assessed. Our HR function assists with resourcing these operations, while at the same time ensuring compliance with local legislation.
Value creation
Current
- Ongoing upskilling of employees through training programmes, financial assistance for study purposes and offering of bursaries
- Upskilling employees through learnerships and management development programmes
- Employee assessments and feedback
- Coaching and mentoring for talented individuals
- Access to modern equipment and technology
- Productivity gains encouraged through incentive schemes
- Retaining employees through job satisfaction and competitive reward schemes.
Future
- To be a sought after employer by providing employees with flexible work conditions and purpose-driven challenges
- Enable employees to pursue excellence and establish themselves as major assets of Clover
- Offer employees the opportunity to explore multi-chapter career paths that progress through our various businesses.
