Additional information and reports

Human capital


Our people are one of our most important stakeholders and a key driver of our business.

RESOURCES AND THEIR ALLOCATION

At the end of the financial year, we had 10 417 employees across our operations, a decrease of 632 employees on last year. The decrease in headcount was mainly due to the restructure of the Monticello workforce that resulted in a decrease in headcount of 162 employees. The restructure consolidated management positions on the gaming floor to ensure greater accountability and role clarity. The effect of the restructure process on headcount in South Africa will only be evident in the 2015 year-end results and will be reported accordingly.

Our permanent employees comprise core and scheduled employees. Core employees work on a full-time basis whereas scheduled employees work on a roster basis, according to business levels. Scheduled employees are guaranteed a minimum number of work hours per month and are paid the same hourly rate and benefits as core employees.

Total number of permanent employees:

  2014   change   2013  
Core   8 808   (6.8%)  9 450  
Scheduled   1 609   0.6%   1 599  
  10 417   (5.7%)  11 049  

The reduction in core employees is due to the Monticello restructure, retrenchments and the non-replacement of staff who have resigned.

Total workforce by region and gender:

  2014   2013  
Country   Female   %   Male   %   Total   Female   %   Male   %   Total  
Botswana   207   57   155   43   362   211   56   164   44   375  
Chile   767   51   726   49   1 493   875   50   875   50   1 750  
Lesotho   214   53   188   47   402   206   53   186   47   392  
Namibia   161   58   116   42   277   156   58   112   42   268  
Nigeria   138   31   301   69   439   149   33   303   67   452  
Panama*   7   39   11   61   18   –   –   –   –   –  
South Africa   3 533   52   3 272   48   6 805   3 707   52   3 470   48   7 177  
Swaziland   80   39   127   61   207   83   42   116   58   199  
Zambia   154   37   260   63   414   160   37   276   63   436  
Total   5 261   50   5 156   50   10 417   5 547   50   5 502   50   11 049  

* Panama commenced employment in the 2014 financial year.

 

SKILLS DEVELOPMENT SPEND

Our skills development spend across the Group increased to R63 million from R60 million last year, with a significant investment increase in both formal and informal learning interventions. 8 100 of our employees benefited from learning interventions targeted at their roles and growing the leadership pipeline, up from 7 045 in the previous year. The range of training interventions also increased from 299 to 340 in 2014.

Training costs as a percentage of leviable payroll (South African units only):

R million   2014   2013  
Leviable payroll   1 530   1 466  
Training costs   58   51  
% of leviable payroll   3.8%   3.5%  

 

GRANTS AND LEVIES

To access skills development grants from the Culture, Art, Tourism, Hospitality and Sport Sector Education and Training Authority (CATHSSETA) under the levy grant scheme, we are required to:

  • pay a skills development levy to SARS;
  • submit a Mandatory Grant Plan (MGP) detailing all learning interventions to be undertaken for the year; and
  • submit an annual training report confirming successful implementation of the MGP for the previous year.

New grant regulations came into effective on 1 April 2013 which decreased the mandatory grant payments from CATHSSETA from 50% of our skills development levies down to only 20%. During this transitional period, the Group received the maximum recovery for mandatory grants.

R million   2014   2013  
Skills development levy paid   15.3   14.6  
Mandatory grants received from CATHSSETA   (4.9)  (7.3) 

 

PEOPLE CAPITAL MANAGEMENT SYSTEMS

The Group has embarked on a strategic initiative to implement a centralised and fully integrated Enterprise Resource Planning (ERP) solution, primarily to reduce business costs and improve operational efficiencies. Our current people capital management systems will migrate to the new ERP solution in accordance with the overall programme roll-out plan. We plan to commence early in 2015.

 

TERMINATIONS

During the year under review, there were 2 057 terminations across the Group. Employee turnover is at 19%, representing an increase of 193 terminations from last year.

Reason for termination by region:

Reason for termination Botswana   Chile   Lesotho   Namibia   Nigeria   South Africa   Swaziland   Zambia   Total  
Death   1   2   2   3   1   25   1   2   37  
Dismissal – Incapacity Health           2   9   1     12  
Dismissal – Incapacity P/Work   3                 3  
Dismissal – Misconduct   8   383   9   9   27   198   10   6   650  
Dismissal – Ops Req. Voluntary              5       5  
Dismissal – Ops Requirements     162         24     2   188  
End temporary employment       1     1       2  
Mutual Agreement Separation       1       13   1     15  
Resignation   24   324   21   36   32   626   4   25   1 092  
Retirement   1     5   1   1   42   1   2   53  
Total   37   871   38   50   63   943   18   37   2 057  

Reason for termination by age band:

  Age band  
Reason for termination 10-20   21-30   31-40   41-50   51-70   Total  
Death     4   12   13   8   37  
Dismissal – Incapacity Health     2   2   3   5   12  
Dismissal – Incapacity P/Work     3         3  
Dismissal – Misconduct   63   329   193   53   12   650  
Dismissal – Ops Req. Voluntary         1   2   2   5  
Dismissal – Ops Requirements   7   72   67   26   16   188  
End temporary employment   2          2  
Mutual Agreement Separation        3   7   5   15  
Resignation   44   464   434   124   26   1 092  
Retirement           53   53  
Total   114   876   712   228   127   2 057  

HUMAN RIGHTS AND FREEDOM OF ASSOCIATION

The Group recognises that it has a responsibility to ensure the effective management of human rights.

The principle of freedom of association is formally endorsed in our employee relations policy statements and in our recognition agreements with trade unions in South Africa and the other countries where we operate. The Group encourages meaningful engagements and healthy relationships with trade unions in our operations. Time is spent with our identified trade unions on relationship building initiatives, over and above the normal bargaining sessions parties engage in. A large percentage of our workforce falls under bargaining units as per table alongside which means their interest and rights are being managed though union engagements, negotiations and consultation.

Bargaining unit membership as a % of headcount as at 30 June 2014 

Country   %  
South Africa   53.59%  
Botswana   78.73%  
Lesotho   82.59%  
Namibia   74.01%  
Nigeria   0.00%  
Panama   0.00%  
Chile   0.00%  
Swaziland   57.00%  
Zambia   88.16%  
Total   47.56%  

During the year under review the Group had no strike action other than in Sun City where we had three strikes as per the table below. The accumulated cost of the strike to the Company was R2 823 902, spent on replacement labour to ensure that the business continues to operate during the strike.

Month   August 2013   November 2013   June 2014  
Number of strike days   12 days (24/08 to 04/09)  1 day (1/11)  7 days (28/06 to 4/07) 

EMPLOYEE WELLNESS

The key driver of our wellness strategy is working together with our employees and service provider, LifeAssist, to achieve greater health and wellbeing. Employees, their spouse or life partner, and children have 24/7 access to LifeAssist via telephone, SMS and email. Services include counselling and advisory services for financial and legal assistance, wellness and health, HIV/Aids, critical incident management and trauma (including trauma response), substance abuse, depression, stress and burnout, and psychosocial issues. The programme is branded as the One Sun Wellness Programme.

  • For the year under review around 8 500 employees of Sun International and their immediate families were eligible to participate in the One Sun Wellness programme. Total engagement with the programme (via all points of contact) relative to eligible employees was just short of 47%.
  • The primary points of contact with eligible employees are wellness days, training, website and telephonic contact.
  • A high ratio of face-to-face and tele-counselling continues, albeit down from last year.
  • Case utilisation as a percentage of headcount is between 7 – 8%, which is comparable to other organisations with a similar headcount.
  • An increase in the number of manager-initiated referrals (as opposed to self-referral) to the programme indicates a growing awareness of the efficacy of the programme and how it can contribute to reducing the number of person-days lost.

The organisation is currently in discussion with LifeAssist to continue the relationship for the next three years.

A care package was put in place to provide targeted support to employees and their families impacted by the restructuring programme currently underway in our South African operations. Support for employees exiting the organisation as a result of the restructure will continue to be provided for six months post their exit.

SEXUAL HARASSMENT

There have been two reported offences during the past year. These resulted in a final written warning at GrandWest and a dismissal at Morula. We continuously ensure that the channels available to report sexual harassment cases are known to all staff and that they are comfortable to use them. The channels include lodging a grievance through Human Resource Department or through the KPMG hotline.

HIV/AIDS

Our primary focus is on HIV/Aids prevention strategies through One Sun Wellness. These include HIV awareness surveys, voluntary testing, free counselling, clinical management and comprehensive medical treatment programmes. Employees have access to information, support and referral through our intranet, wellness website, printed newsletters, posters and HIV/Aids awareness days. Employees are entitled to HIV/Aids treatment benefits including the provision of anti-retroviral treatment through our Aid for Aids programme.

We have made arrangements with Aid for Aids to continue offering support to employees affected by the section 189 restructuring process. We will fund the various Aid for Aids services they have been receiving within this programme for a maximum period of six months for employees after they have separated from the Company to ensure continuity of the services that employees have been receiving while employed with Sun International. In addition, respective employees were also encouraged to contact Aid for Aids to ensure that they are provided with more information and guidance on how to join Government programmes for more assistance.