Basil Read  
ANNUAL REPORT 2009
Milestones in time
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Sustainable development  
   

Social performance

Our people

Basil Read is making significant process in creating an equitable working environment for its people and developing their full potential. The group is committed to playing a role in South Africa’s transformation beyond legislative compliance, and this commitment guides our corporate social investment initiatives as we embed sustainable development into every facet of our business.

Individual development, equality and performance-based advancement are the cornerstones of our approach to employing and maintaining a balanced and highly skilled workforce. Accelerated opportunities for talented people are steadily eradicating past inequalities and ensuring a pool of skills for the continued growth of the group.

High-performance culture

Given the enormous growth of Basil Read in recent years – with a staff complement rising from 600 to over 5 000 since 2005 – a performance enhancement programme was introduced during the year to continue building the sense of pride and passion that characterises this group.

Capitalising on the football fever that will mark 2010, the strategic focus of this League of Champions programme is to instil a high-performance culture through teamwork across the group. Working from established benchmarks, teams set goals for November 2009 and then new targets for March 2010. Winning scores are based on elements such as performance improvement, meeting deadlines and team spirit – all of which will be rewarded. The purpose is to align the broader group’s vision and instil an even greater pride in the Basil Read brand.

Training and development

Based on the long-standing approach that continuous development unlocks individual potential, numerous opportunities are extended to every member of our group. Diverse, quality training by accredited providers covers a broad range:
  • Management development
  • Learnerships
  • Foreman development
  • Adult basic education and training
  • Other opportunities for personal development include mentorship programmes, on-site technical training, and international exposure.

Basil Read has one of the best plant teams in the field and this reputation is protected by closely monitoring the comprehensive training programmes in place for all mechanics and plant operators.

Collectively Basil Read spent 2,81% of the leviable amount as defined by the construction sector scorecard on training and development, well above the requirement of 1,5%. In meeting our responsibility to transform the workplace, the group aims to spend over 70% of our annual budget on developing the skills of employees from previously disadvantaged backgrounds.

In addition to formal training programmes, the group often undertakes informal training in local communities near our various sites in skills such as bricklaying and carpentry. In Nelspruit, where the Mbombela Stadium was being constructed, some 70 locals were trained as bricklayers, carpenters and shutter hands. This included 30 women who were trained as bricklayers.

Skills development in Cosmo City

During the review period, Basil Read Developments took the initiative by contracting a professional training company to develop the skills of 20 candidates from Cosmo City. This is in line with the need and desire to use local skills wherever possible.

Training was conducted in five modules:
  • Introduction to the world of construction contracting (completed in September).
  • Health and safety (completed in September).
  • Quality and productivity on a construction site (completed in November).

The remaining modules were completed in January and February 2010.


Bursary programme

In addition, the Basil Read bursary programme supports a number of students entering our fields of activity each year. Candidates can choose from a range of disciplines including civil engineering, quantity surveying, building and financial management.

In 2009, 44 young people enrolled at tertiary institutions received assistance with tuition, registration and accommodation.

Quantity surveyors play an extremely important role in this industry, but they are becoming a very scarce commodity. While the quantity surveying industry seems to attract a large number of black women, the challenge appears to be long-term retention of these candidates. Basil Read is taking steps to encourage people in this direction through its bursary programme, raising awareness and on-site training to encourage people within the company to become quantity surveyors.

Basil Read takes an active interest in the candidates’ progress, arranging help if required, and providing vacation work to enable students to gain practical experience while studying theory. On completion, graduates are guaranteed positions in the group, which ensures that the skills base is constantly replenished with new talent.

  Field of study Male   Female  
  BEng Civil Engineering 19   3  
  BTech Civil Engineering 6   –  
  BSc Civil Engineering 2   –  
  BTech Construction Management 2   1  
  BSc Construction Management 1   2  
  BTech QS 1   1  
  BSc QS –   1  
  BSc Construction Studies –   1  
  BSc Property Studies –   1  
  BSos Psychology 1   –  
  BCom Financial Management 1   –  
  NDip Building 1   –  
  Total 34   10  


Developing foremen

Our programme for developing foremen provides specialised education for learners who have passed grade 12. While addressing the shortage of middle managers in our industry, this course also empowers learners in other fields. The first two-year programme was completed in 2009, giving Basil Read 12 new foremen with the appropriate skills to deploy on various sites. The next intake began in February 2010 with 15 participants.

In an attempt to uplift educational standards, representatives from the construction industry met with the Department of Education to examine ways of addressing skills shortages in the construction sector. The industry pledged its involvement in the country’s Further Education and Training (FET) Colleges.

As part of this commitment, Basil Read became involved with the Tshwane South College in Atteridgeville, Pretoria in support of their three year National Certificate (Vocational) course, which comprises classroom work, as well as practical, on-site training. The complete three year course carries a National Qualifications Framework (NQF) level 4 certification, which is the approximate equivalent of a junior foreman. Each successful year of study is equivalent to one NQF level.

Basil Read provided funding for 10 students to start this course and takes a group of students each year for the practical component of the course. Each student is assigned to a Basil Read site to gain a better understanding of how the theoretical knowledge they are acquiring is practically applied.

Going beyond the bursary

During the year, Basil Read extended its corporate teambuilding approach and activities to its bursars. The group of over 40 students attended a three-day team-building trip at the Vaal River, learning to interact and form stronger relationships while having a great deal of fun.

This team-building event follows the December road trip when the students were taken to sites that best illustrated Basil Read’s range of activities – Chris Hani/Baragwanath Hospital, Mbombela Stadium and the Atterbury road site. The purpose was also to encourage and motivate the students to take full advantage of the opportunities available and emphasise the importance of studies and day-to-day learning on the job.

To emphasise that Basil Read is not just a funder for tertiary studies, but a participant in lifelong learning, students received feedback on psychological assessments conducted earlier in the year. Each student has also been assigned a mentor, which will go a long way in their further career development at Basil Read.

 

Building and civil engineering learnerships

More than 150 technical high school graduates from in and around KwaZulu-Natal have been specifically selected by Basil Read to enrol in a Building and Civil Engineering learnership with the Training Force Construction Academy in Pietermaritzburg and Durban. The first intake will commence with their studies in 2010.

To test the suitability of candidates, Training Force teamed up with School Trade, an adopt-a-school programme. As a minimum, applicants were required to have successfully completed Mathematics, Science, Engineering Graphic Design and a Workshop related subject at matric level. Technical high schools in the area were also approached to recommend suitable candidates.

Through this learnership, the group hopes to prove that technical high schools continue to play a pivotal role in the development and nurturing of future tradesmen and women and assist in addressing the shortage of qualified artisans in South Africa.

Adult basic education and training

In 2007, Basil Read implemented formal ABET (adult basic education and training) courses. Working with accredited providers, employees acquire communication, numeracy and life skills to prepare them for learnerships and further education and training courses. The courses are proving their worth to people with little formal primary or secondary schooling as well as those who have been out of the educational environment for some time.

Through training provider Triple E, the group selected 40 unemployed previously disadvantaged women from the community to commence with ABET level one courses. The two-month programme started in October 2009. Additional levels are expected to be undertaken in 2010.

The group also has four ABET programmes running at various sites for employees. These programmes began in September 2009 and will continue through 2010.

Industrial relations

Basil Read enjoys sound labour relations. At all levels of management, our people ensure they understand the company’s industrial relations policies and procedures, and implement them fairly and correctly.

Basil Read has strengthened its internal resources to effectively manage industrial relations by forming a dedicated employee relations wing. During the review period, this team has focused on creating awareness of the responsibilities and rights of both employer and employee on site, and disseminating information about current trends and practices in the field to management. This has been supplemented by formal courses on industrial relations developments and legislation to encourage line managers to assume greater, but informed, responsibility for these issues at site level.

Black economic empowerment and employment equity

Black economic empowerment remains a key focus area for Basil Read, reflecting the group’s support for the objectives of the Broad-Based Black Economic Empowerment Act and associated Codes of Good Practice.

As the group is already black-empowered at ownership level, we are concentrating on the other elements that make up true broad-based economic empowerment, with immediate focus on management control and skills development. As the construction industry scorecard has now replaced the current dti scorecard for procurement on construction projects, Basil Read’s targets have been aligned to the former and our progress reported in the 2009 financial year.

Basil Read became the first truly black-empowered construction company in South Africa in 2005, when 51,9% of the company was acquired by a consortium of Amabubesi Investments and Metallon. Although Metallon has since sold its stake, the latest shareholding analysis shows that over 30% of the group is held by black shareholders with unrestricted voting rights.

Basil Read has been fully committed to meeting its BBBEE objectives since the inception of the dti scorecard, which preceded the newly promulgated construction sector scorecard. After a concerted effort to have our suppliers and subcontractors certified, in May 2008 we achieved level 4 to become a 100% contributor. This was well ahead of our target of achieving level 5 status by early 2009. Following significant acquisitions during the review period, the focus has been on consolidating and standardising processes to ensure that our level 4 status is sustainable before aiming for a higher level.

As a level 4 contributor, Basil Read is well placed to participate in large contracts for major parastatals and state-owned entities.

We understand, however, that broad-based black economic empowerment is a journey, not an event. While Basil Read scores well in the areas of ownership, preferential procurement, enterprise and socio-economic development, we continue to face challenges in management control, employment equity and skills development. Our interaction with other construction companies shows they face identical challenges, yet these are the very areas on which the transformation of the local construction industry rests. We trust that the promulgation of the construction charter as a legislated sector scorecard will facilitate an industry-wide effort to accelerate this process.

Specific and ongoing interventions are in place to ensure our group plays a significant role in empowerment:
  • A comprehensive employment equity and skills development programme was implemented in 2009.
  • More black directors were appointed at operational level in 2009, with the first appointment taking effect in March 2009.
  • 34% of bursary students employed in 2009 are from historically disadvantaged population groups.
  • Of 12 employees who graduated from our internal accredited management development programme, five were black.

HIV/Aids

This year marks the 21st anniversary of World Aids Day – and in South Africa the response to Aids has ‘come of age’, with government fully committed to reducing the spread of this pandemic and providing effective treatment to those infected. While many of these changes are positive, the fact that two decades have passed highlights how much more still needs to be done.

Acknowledging the seriousness of HIV/Aids in South Africa and the workplace, the Basil Read group continues to work towards being a model in the marketplace and to positively influence customers, suppliers and competitors in their response to this challenge.

Each year, Basil Read participates in the Aids Week Bannerthon with banners enveloping head office, Mbombela Stadium, Chris Hani/Baragwanath and Paarl Hospital in Cape Town. The bannerthon concept enjoys ongoing support from South African businesses that want to be involved in a meaningful challenge to address the real threat of Aids to business and the economy. It creates visibility and awareness during the annual international Aids Week while raising funds for selected Aids orphan homes.

Enterprise development

Building on a proven approach of identifying and developing suitable companies through assistance and mentoring, Basil Read is making steady progress with initiatives focused on enterprise development.

BR-Tsima offers quality construction services to the North West, Mpumalanga and Limpopo provinces. Previously 100% owned by Basil Read, the group transferred 80% of BR-Tsima to a BEE consortium to facilitate the genuine and sustainable transfer of skills and knowledge. Basil Read also contributed an interest-free loan of R1,2 million for BR-Tsima to continue operations while securing further contracts and a 50% share in a R50 million contract.

The group is helping Bokhomo Mpha (Pty) Limited become a sustainable stand-alone enterprise in the civil engineering and building market. This addresses all aspects of the knowledge and skills required to operate a construction company, including financial mentoring, management, estimating and project delivery. By focusing on the genuine transfer of skills and knowledge we will, over time, build sustainability and hopefully create a wholly black-owned civil engineering construction company, able to compete equally with the larger players in this market.

 
   
 
 
 
       
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