EMPLOYEE RELATIONS
Success in a competitive industry cannot be achieved without a motivated, committed and unified
workforce that is focused on achieving common objectives. To this end, we strive to create an
environment in which our employees feel valued and aligned to the company’s values, strategies and
priorities.
In Illovo, as a multi-national organisation, communication with our employees is considered an important
criterion towards the building of their understanding of the company. To this end, we present an annual
group-facilitated Business Understanding Programme to all employees, and in 2014/15, approximately
20 000 of our people were exposed to this programme.
With diverse and widespread senior management teams operating across six countries, regular
communication forums and executive-led site visits are also undertaken. At group and country
management team level, formal management forums are held, aimed both at reviewing operational
performance and engagement in strategic planning processes.
In our observation of the UN Global Compact, and the ILO Declaration on Fundamental Principles and
Rights at Work, we comply with internationally recognised labour practices as legislated in our countries
of operation, ensuring that sound employee relations prevail. Freedom of association is acknowledged
and where our employees have adequate representation, recognition agreements are put into place.
Collective bargaining forums, which determine the levels of wage rates and other substantive
employment conditions via negotiated collective agreements, are
established in all countries of operation. The management of collaborative
relationships with trade unions, along with open communication forums,
allows for internal issues to be dealt with as effectively as possible.
Notwithstanding this the group did experience protected industrial strike
action in South Africa and Swaziland, both of which were consequences of
protracted collective bargaining processes, whereby the dispute
mechanisms had been exhausted. This unfortunately led to 23 days of
production being lost, nine in South Africa and 14 in Swaziland, amounting
to 11 907 man-days lost in South Africa and 30 733 in Swaziland
respectively. In both instances the industrial action was resolved without
any major incident. Wage negotiated settlements were eventually concluded with further intervention of
the formal mediation process.
Standard notice periods for employees are covered within the employment policy of each country of
operation. Regarding operational restructuring, if applicable, the notice periods of the affected
employees are determined with input from relevant employee representative bodies.
Trade union involvement is a normal part of this process and on average 85% of our employees are
unionised.
Trade union membership as a percentage of employees per operation
%
Malawi
Mozambique
South Africa
Swaziland
Tanzania
Zambia
2014/15
85
96
80
96
80
80
2013/14
95
98
80
96
80
91
REMUNERATION AND BENEFITS
Illovo’s remuneration packages are merit-based and market-competitive and do not take into account
arbitrary factors such as race and gender. These packages are reviewed annually, as are the range of
short and long-term incentives such as performance-related bonuses, share purchase and share
schemes.
Aligned with our objective to be an employer of choice, we offer competitive wages, which exceed
country-based standard minimum wages, and are determined through negotiations with relevant country
