Our people
(Human capital)
Determines Grindrod’s capacity to accomplish its goals. Talented and skilled employees and skills and development training culminate in knowledge, skills, talents, experience, judgement and wisdom that ensures employee safety and well-being, personal and professional growth and indirect advantages such as support of family members.

Grindrod employees represent a rich and diverse human-capital base that provides the skills, competencies, capabilities and experience that ensure the growth and sustainability of its businesses to provide innovative integrated logistics, banking and investment solutions.

Employee complement

Country   2017   2016 % change
South Africa   3 087   3 614 (14.6)
Rest of Africa   1 336   1 470 (9.1)
Asia   666   652 2.1
Middle East   55   55
Europe   42   42
North America   7   7
South America   13   13
Australia   26   28 (7.1)
Total   5 232   5 881 (11.0)

Employee movement (expressed as a percentage of turnover) by division and gender for 2017 is as follows:

Division Gender
  Freight
Services
Shipping Financial
Services
Group Male Female
Resignation 103 13 10 22 90 58
Death 9 1 1 1 10 2
Dismissal 45 5 5 44 11
End of contract 25 67 12 28 103 29
Retirement 6 3 4 10 3
Redundancy 82 1 1 12 74 22
Transfer 1 1
Incapacity 1 1
Other 104 27 16 35 129 53
Turnover of employees (%) 10.6% 11.1% 17.8% 25.9% 72.2% 27.8%

Grindrod manages its human capital to ensure people’s health and safety and invest in their professional and personal growth. Its approach is based on, amongst others, the OHSAS 18001 occupational health and safety management system, the South African Bill of Rights, the UN Universal Declaration of Human Rights and the UN Global Compact Protect, Respect and Remedy Framework regarding human rights, labour standards, environment and anti-corruption.

Health and safety is managed through a safety, health, environment, risk and quality (SHERQ) management committee, chaired by the group executive chairman. Management in divisions is involved in divisional SHERQ meetings and at business level safety is guided by monthly meetings, with representation from shopfloor to management level. The focus on safety is entrenched by the incorporation of safety as a KPI at management level.

Safety

The health and safety of employees, contractors, and visitors are of paramount importance and cannot be compromised. Grindrod maintains occupational health and safety management systems in accordance with the international standard OHSAS 18001 and has a zero-tolerance approach towards breaches of safety and security standards.

Key safety statistics for 2017 show two fatalities and divisional LTIFRs remain stable.

Two fatalities were reported by Grindrod businesses in 2017:

  • The death of a Fuelogic truck driver during an incident that caused the truck to catch fire while stationery; and
  • The death of a Terminals employee who fell from a ladder while repairing a trolley on a pipe conveyor.

All incidents were reported to the relevant authorities for investigation and Grindrod conducted thorough analyses of the incidents to enforce strict adherence to safety procedures, in particular the procedures that were transgressed.

Two other significant incidents reported were:

  • A tug in Maputo Port that capsized and sank. No people were on board at the time of the incident.
  • A full handler that caught fire while stationary at Intermodal Bluff road terminal. Nobody was injured.
Key performance indicators   2017   2016 2015 2014 2013
Freight Services              
Fatalities   2   2 1 2
SHERQ spend (R’000)   28 409   31 354 27 575 56 545 22 896
Medical treatment cases   55   68 128 114 161
Lost-time incidents   39   42 58 68 112
LTIFR*   0.86   0.65 0.67 0.86 1.31
Shipping              
Fatalities     1
SHERQ spend (R’000)   12 231   14 913 15 262 7 842 11 828
Medical treatment cases     6 2
Lost-time incidents   6   7 3 8 8
LTIFR*   0.13   0.21 0.09 0.26 0.29
Financial Services              
Fatalities    
SHERQ (R’000)     12 000 24 099 5 546
Medical treatment cases   2
Lost-time incidents  
LTIFR*    
* Measured per 200 000 hours worked.

Health

The requirements for the mandatory occupational health certificate of fitness form the basis for ensuring a healthy and fit workforce. Businesses target compliance with statutory health and safety obligations, manage health and safety risks, investigate incidents and implement corrective actions and supervise contractors to ensure compliance with Grindrod requirements.

Grindrod also responds in a timely and preventative manner when staff members are exposed to risks in the execution of their duties. In 2017, during the bubonic plague outbreak in Madagascar, Shipping staff on board Grindrod vessels were not infected as they were not allowed on shore and appropriate medical-screening and supply-sourcing steps were implemented.

Restructuring

A major challenge during the year was managing the effects on staff of the Grindrod strategy, which resulted in the retrenchment of some 900 employees, of whom approximately 500 were affected by the closure of non-core Rail businesses. The uncertainty and subsequent drop in staff morale were addressed by reacting to staff feedback in an employee engagement survey and assisting Freight Services to conduct division-wide employee engagement sessions to address concerns. Management outlined the envisaged future vision, business approach and people policies, which will be refined and concluded through two-way engagement forums to optimise business outcomes and employee buy-in. The engagement process is continuing.

People development

Human-capital management is effected at business level to achieve appropriate outcomes through recruitment practices, skills development, talent management, performance management and employee relations, all of which are aligned with the company’s business strategy and employment equity targets. HR is also responsible for guiding businesses to achieve targeted transformation objectives.

During the year, 94 candidates underwent learnership training and 7 students were enrolled on the graduate programme.

Twenty-two members of management successfully completed a bespoke management-development programme established in conjunction with the University of Stellenbosch Business School.

Transformation remains a key focus area, in support of company values and in line with the objectives of the B-BEE Act and the Department of Trade and Industry code of good practice to achieve a workforce reflecting country demographics. The transformation strategy is based on merit and potential, rather than mere statistical accomplishments.

* Note that the 2016 figures do not reflect foreigners separately.

Employment-equity targets have been formalised for the short and medium term, and are supported by transformation KPIs included in executives’ performance scorecards. HR guides reporting entities to meet the procedural requirements of managing transformation as stipulated by the Employment Equity Act and Grindrod engages with the Department of Labour on its transformation initiatives.

Occupational levels     2017 2016   Foreign nationals
Male Female Designated White
African Coloured Indian African Coloured Indian White Total Total Male Male Female Total
2017                          
Top management 1 4 1 1 1 1 9 8 19 1 29
Senior management 6 3 4 2 5 12 42 44 39 1 82
Middle management 25 14 51 9 9 30 58 196 169 86 2 1 285
Skilled 137 46 163 79 41 120 129 715 1 339 92 6 2 815
Semi-skilled 644 71 104 123 36 54 45 1 077 967 27 23 1 127
Least skilled 130 7 7 62 9 1 216 309 4 2 222
Total permanent 943 141 343 276 96 210 246 2 255 2 866 267 35 3 2 560
Temporary / contract 67 5 11 12 4 5 104 229 10 7 121
Grand total 1 010 146 354 288 96 214 251 2 359   277 42 3 2 681
Percentage (%) 37.7 5.4 13.2 10.7 3.6 8.0 9.4 88.0   10.3 1.6 0.1 100.0
2016 total 1 296 183 410 327 111 235 312 2 874 531 60 4 3 469
Percentage (%) 34.6 5.3 11.8 9.4 3.2 6.8 9.0   74.8 15.3 1.7 0.1 100.0
Note that the above table reflects the combined employment equity report submitted by Grindrod to the Department of Labour for the 2017 reporting period.

B-BBEE requirements are addressed by uplifting previously disadvantaged individuals through Black ownership and Black-women ownership, education support, skills development initiatives, equal employment opportunities, preferential procurement practices, black business support and new business incubation programmes. As a result, Grindrod achieved a Level 4 B-BBEE status this year, and its scorecard is available on the company website.

Employee relations subscribes to the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work and contractors are required to abide by these principles. Grindrod commits to:

  • comply with all applicable statutory labour obligations;
  • promote and recognise in good faith the right of our employees to the freedom of association and collective bargaining;
  • not permit any form of forced or compulsory labour;
  • not permit child labour;
  • not permit discrimination in respect of employment and occupation;
  • maintain grievance mechanisms for employees and contractors; and
  • monitor and report on its efforts in this regard.

During the year, multi-year wage agreements were successfully negotiated and concluded with a number of trade unions.

Talent management is aimed at developing adequate skills to ensure the sustainability and growth of the company, supported by retention initiatives and performance management that include performance discussions with employees to recognise the achievement of goals, address areas of development and define learning skills that may be required to improve productivity, career growth and development.

Skills development comprises formal training, professional development and on-the-job coaching internally and through external service providers. A total of 1 479 employees attended training interventions (2016: 2 691), of whom some 84 percent (2016: 85 percent) were designated employees.

Course programme Total
attendees
% designated % black* % female Total cost
(R)
% cost on
black*
Computer skills 1 4 796
Continual professional development 100 93.0 88.0 34.0 249 608 67.4
Formal qualifications 16 100.0 87.5 31.3 276 439 67.4
Learnership 152 96.7 96.1 47.4 2 869 200 98.6
Management development programme 41 90.2 75.6 56.1 976 562 80.2
Off-site training 121 91.7 91.7 285 813 91.5
On-the-job training 229 86.0 86.0 10.5 159 503 71.8
Regulatory 482 95.4 93.4 7.7 449 521 90.6
Shipping and logistics 54 94.4 94.4 13.0 189 661 98.4
Workplace effectiveness 283 96.1 89.4 24.4 241 114 93.2
Grand total 1 479 84.4 80.2 22.4 5 702 217 75.9

Learnerships were arranged by Grindrod for 193 learners (2016: 133):

Black White %
2017 scope and demographics Male Female Male Female Total Black*
Apprentice – Boilermaker 1 1 100.0
Apprentice – Millwright 2 2 100.0
Apprentice – Electrical 1 1 2 100.0
Apprentice – Industrial Refrigeration 3 3
Business Administration – KwaZulu-Natal 10 10 100.0
Business Administration – Gauteng 5 1 6 100.0
CIMA 1 1 100.0
Credit Risk Assessment 2 14 0 0 16 100.0
Disabled Learnership – Credit Risk Assessment 4 2 6 100.0
Disabled Learnership – Domestic Service 15 13 28 100.0
English Learnership 3 5 8 100.0
Freight Handling – Cape Town 2 2 4 100.0
Freight Handling – Gauteng 1 1
Freight Handling – KwaZulu-Natal 3 1 4 75.0
Generic Management NQF3 6 4 10 100.0
GETC: Domestic Service 4 4 8 100.0
GRADS MDP Management 2 5 7 100.0
Management Development Programme – Group 1 7 3 1 11 90.9
Supervisory Management – Durban 11 3 14 100.0
Supervisory Management – Richards Bay 8 2 10 100.0
Management Development Programme – Group 2 4 13 2 19 89.5
MDP Wave 3 – Second Study 2 1 1 1 5 60.0
MDP Wave 3 – Third Study 3 1 1 1 6 66.7
Senior Management Development Programme – USB ED 5 1 2 2 10 60.0
Senior Management Development Programme – WITS 1 1 100.0
Grand total 90 87 9 7 193 91.7
* Includes Black, Coloured and Indian