Our people are one of our most important stakeholders and a key driver of our business.
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:
|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:
|Chile||767||51||726||49||1 493||875||50||875||50||1 750|
|South Africa||3 533||52||3 272||48||6 805||3 707||52||3 470||48||7 177|
|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.
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):
|Leviable payroll||1 530||1 466|
|% of leviable payroll||3.8%||3.5%|
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:
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.
|Skills development levy paid||15.3||14.6|
|Mandatory grants received from CATHSSETA||(4.9)||(7.3)|
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.
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|
|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|
Reason for termination by age band:
|Reason for termination||10-20||21-30||31-40||41-50||51-70||Total|
|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|
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
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)|
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.
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.
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.
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.