address by lulu letlape to the bmf national …...• mercedes-benz south africa (mbsa) is wholly...

SPEECH BY

LULU LETLAPE EXECUTIVE DIRECTOR

CORPORATE AFFAIRS

MERCEDES-BENZ SOUTH AFRICA (PTY) LTD CORPORATE AFFAIRS

AT

THE ANNUAL CONFERENCE OF THE BLACK MANAGEMENT FORUM

TOPIC

“CHALLENGES IN IMPLEMENTING EMPLOYMENT EQUITY”

AT 15:00

ON 17 OCTOBER 2008

THANK YOU (MS THEMBAKAZI MNYAKA) FOR THE KIND INTRODUCTION.

Mercedes-Benz South AfricaA Daimler Company

Lulu Letlape Executive Director Corporate Affairs

October 2008

Black Management Forum Conference -

Challenges in implementing employment equity

THE PRESIDENT OF BMF, JIMMY MANYI, MEMBERS OF BMF ALL DELEGATES AND DIGNITARIES PLEASE ACCEPT THAT ALL PROTOCOL IS OBSERVED GOOD AFTERNOON LADIES AND GENTLEMEN

WITH MY TALK THIS AFTERNOON I WISH TO ACHIEVE TWO MAIN OBJECTIVES. FIRSTLY, I HOPE YOU WILL GAIN INSIGHT INTO THE CHALLENGES THAT FACE LARGE CORPORATES, ESPECIALLY A MULTI-NATIONAL LIKE MERCEDES-BENZ SOUTH AFRICA AND THAT YOU APPRECIATE THAT LEGACIES FROM THE PAST, NO MATTER HOW UNACCEPTABLE, CANNOT BE CHANGED OVERNIGHT, BUT ONLY WITH PERSISTENCE AND TENACITY . OF COURSE, THEY CAN AND MUST BE CHANGED. WE CAN ALL ASSIST OUR ORGANISATIONS MAKE THE NECESSARY TRANSITIONS, AS SMOOTHLY AND QUICKLY AS POSSIBLE. THIS BRINGS ME TO THE SECOND OBJECTIVE OF MY TALK. I HOPE THAT YOU ALL LEAVE THIS SESSION INSPIRED AND MOTIVATED TO REMAIN THE CHAMPIONS OF CHANGE IN ALL THE ORGANISATIONS IN WHICH YOU FIND YOURSELVES. LADIES AND GENTLE MEN, IN ORDER TO SKETCH THE PATH TAKEN BY MY COMPANY TO A TRANSFORMED AND FAIRER WORKPLACE,

WE NEED TO CONTEXTUALISE THE BUSINESS ENVIRONMENT IN WHICH THE COMPANY OPERATES. IN ORDER TO DO SO, ALLOW ME TO BRIEFLY GIVE YOU BACKGROUND ON THE COMPANY.

Slide 4


Mercedes-Benz South Africa (MBSA) overview

• Mercedes-Benz South Africa (MBSA) is wholly owned by Daimler AG

• The company is one of the largest foreign investors in South Africa

• MBSA manufactures Mercedes-Benz C-Class cars, Mitsubishi light delivery vehicles and a range of Mercedes-Benz, Freightliner and FUSO commercial vehicles in East London, Eastern Cape

• MBSA is the only Mercedes-Benz C-Class manufacturer outside Germany


Our business

• Atlantis Foundries (100%)

• Fleet management• * Daimler Fleet Management (65% held by MBFS)

• Vehicle finance and insurance• Mercedes-Benz Financial Services (100%)

• Manufacturing• Sales and marketing

• Mercedes-Benz South Africa

• Vehicle retail• Sandown Motor Holdings (50,1%)

• Foundry

* Daimler Fleet Management continues to trade as debis Fleet Management (dFM)

THIS BRINGS ME TO THE MATTER OF TRANSFORMATION AND CHANGE…


We reached this point through struggle and turmoil…

I BELIEVE IT IS SUPERFLUOUS TO RE-STATE THE OBVIOUS. WE ARE ALL AWARE OF THE INEQUALITIES OF THE PAST. THE ARTIFICIAL DEMOGRAPHICS ENTRENCHED BY THE APARTHEID REGIME WHERE JOB RESERVATION, INEQUALITY AND UNFAIR EMPLOYMENT PRACTICES WERE THE ORDER OF THE DAY. AT MERCEDES-BENZ SOUTH AFRICA, WE BORE THE THRUST OF A MASSIVE STRIKE, NEARLY CRIPPLING THE PLANT IN 1987, 1988 AND 1990.

ALLOW ME TO SHARE WITH YOU A VIDEO CLIP FROM A DOCUMENTARY WHICH WE MADE ON OUR COMPANY IN 1996. THIS HIGHLIGHTS THE STRUGGLE PERIOD OF THE LATE 80S AND EARLY 90S. I APOLOGISE FOR THE POOR QUALITY OF THE CLIP BUT IT WAS SHOT ON VHS AND OLD TECHNOLOGY. (VIDEO)


We reached this point through struggle and turmoil…

LADIES AND GENTLEMEN, THAT WAS AN UGLY PERIOD AND WE TRUST AND BELIEVE THAT THIS WILL NEVER REPEAT ITSELF AND THAT THERE WILL NOT BE A NEED FOR THIS TYPE OF MILITANCY AGAIN. AS YOU SAW FROM THE VIDEO, MERCEDES-BENZ SOUTH AFRICA SET OUT ON A PATH OF TRANSFORMATION IN 1990. MANY INTERVENTIONS WERE TRIED, SOME SUCCESSFUL, SOME NOT SO

SUCCESSFUL. BUT WE MAINTAINED OUR NEW-FOUND INTEGRITY AND BEGAN OUR PROGRESSIVE APPROACH TO TRANSFORMATION. TO ILLUSTRATE OUR COMPANY’S CLAIM TO FORWARD-THINKING EMPLOYMENT PRACTICES, CONSIDER THE FOLLOWING: MERCEDES-BENZ SOUTH AFRICA WAS THE FIRST AUTOMOTIVE COMPANY IN SOUTH AFRICA:

• TO GIVE FORMAL RECOGNITION TO THE LABOUR MOVEMENT IN THE 80S AND TO ENGAGE WITH THE UNION TO PROVIDE A MORE HUMAN, MORE DIGNIFIED AND FAIRER WORKPLACE. THIS THEY DID THROUGH A PROGRAMME WHICH THEY DUBBED ‘TRANSFORMATION BY OBJECTIVES’ IN THE 1984.

• MOREOVER, MERCEDES-BENZ SOUTH AFRICA WAS THE FIRST LOCAL AUTOMAKER TO SET A DECENT AND LIVEABLE MINIMUM WAGE FOR EMPLOYEES, EVEN THOUGH THIS GAVE RISE TO THE OTHER AUTO MAKERS BECOMING MOST DISGRUNTLED WITH US.

• THE COMPANY WAS THE FIRST IN OUR INDUSTRY TO PROVIDE EQUAL EMPLOYEE BENEFITS TO ALL EMPLOYEES, REGARDLESS OF RACE OR GENDER.

• ANOTHER FIRST WAS IN 1999 WHEN WE PROVIDED FREE A.R.V.S. THROUGH OUR HIV WORKPLACE PROGRAMME. SHORTLY THEREAFTER THE SAME HIV TREATMENT AND CARE

PROGRAMME WAS EXTENDED TO THE DEPENDANT FAMILY MEMBERS OF OUR EMPLOYEES AND RETIREES. TODAY THE COMPANY IS ACTIVE IN ASSISTING ALL ITS SUPPLIERS, DEALERS AND OVER 30 SMMES IN THE AMATOLA DISTRICT AROUND EAST LONDON.

THE LIST GOES ON… WITH THIS ATTITUDE THE COMPANY CONTINUES TO FACE HEAD-ON THE CHALLENGES OF TRANSFORMATION AND EMPLOYEMENT EQUITY SO TO THE FIRST CHALLENGE.


Challenge 1

The availability and retention of skills, especially good technical skills

CHALLENGES OF UNEMPLOYMENT AND POVERTY IN SA ARISE FROM THE LEGACY OF COLONIAL RULE AND APARTHEID. WHILE STRIDES HAVE BEEN MADE TO RECEDE THE FRONTIERS OF POVERTY AND UNEMPLOYMENT WITH THE ECONOMY MOVING FROM NEGATIVE GROWTH TO ALMOST 50% ANNUAL GROWTH AND ALSO ONE MILLION NETT JOBS BEING CREATED PER ANNUM SINCE 2002, THERE IS STILL WIDESPREAD UNEMPLOYMENT AND POVERTY, SPECIFICALLY AMONGST THE MAJORITY OF SA – THE BLACK PEOPLE.

A HUGE AMOUNT OF BLACK SKILLED PEOPLE ARE STILL NOT BEING ABSORBED BECAUSE THE ECONOMY IS GROWING IN SECTORS THAT REQUIRE HIGHLY SKILLED AND TECHNICAL WORKFORCE. WITH BLACK PEOPLE, HAVING BEEN DENIED QUALITY EDUCATION AND LACKING THE SKILL THAT WILL MAKE THEM PRODUCTIVE IN THE ECONOMY, THIS MEANS AS A SOCIETY – SOUTH AFRICA NEEDS A LOT OF EFFORT TO PROMOTE SKILLS DEVELOPMENT IN OUR COUNTRY. WHILE GOVT. HAS CREATED AN ENABLING ENVIRONMENT, WITH BILLIONS OF RANDS BUDGETED FOR EDUCATION, AND AN ENABLING LEGISLATION TO PROMOTE SKILLS AND DEVELOPMENT THROUGH THE EMPOWERMENT SKILLS ACT, GOVT. ON ITS OWN WILL NOT BE ABLE TO MEET THIS CHALLENGE. PRIVATE SECTOR AND CIVIL SOCIETY SHOULD ALSO PLAY THEIR PART.


Skills and retention initiatives at MBSA• Partnerships with tertiary institutions

• University of Karlsruhe Engineering Scholarship for engineering scholarships to previously disadvantaged matriculants

• Wits University Engineering Scholarship for engineering scholarships to previously disadvantaged matriculants and students

• Stellenbosch University for Black MBA

• Graduate programmes• Two-year graduates internship programme in SA• STEP - Experiential work programme for graduates for a period of six months in

Germany

• Technical programmes• Technical training centres in SA and Germany• Auto Mechatronics Learnerships

• Recruitment• Transformation forum • Deviation committeeor

THE TRAINING AND UPSKILLING SHOULD NOT BE SEEN AS A CONSTRAINT, BUT AS AN IMPERATIVE FOR GROWTH, AND IT IS ALSO A POLITICAL IMPERATIVE, OUR CONSTITUTION ENJOINS ALL OF US TO PROMOTE EQUITY IN EVERY AREA OF HUMAN ENDEAVOUR IN SA. AT MBSA WE REALISE THAT THE HIGHLY-SKILLED WORKFORCE LEADS TO HIGH PRODUCTIVITY.

TRAINING AND SKILLING EMPLOYEES SHOULD NOT ONLY BE ABOUT SELFISH COMPANY NEED FOR SKILLS, BUT ALSO BE ABOUT CONTRIBUTING TO THE GENERIC TALENT POOL IN THE COUNTRY, AND SPECIFICALLY FOR THE INDUSTRY IN WHICH THE COMPANY OPERATES. TRAINING AND SKILLING EMPLOYEES SHOULD ALSO CONTRIBUTE TO THE RETENTION OF EMPLOYEES. RETENTION, HOWEVER, IS NOT IN ISOLATION AS THERE OTHER FACTORS TO BE CONSIDERED LIKE THE CULTURE OF THE COMPANY, THE NURTURING ENVIRONMENT, COMPENSATION, ETC. AT MBSA WE HAVE A RECORD OF RETAINING STAFF WELL OVER 10 YEARS. SO TOO, WE HAVE A RECORD FOR RETAINING KEY BLACK SKILLS AND TALENT. FOR EXAMPLE OUR HUMAN RESOURCE EXECUTIVE DIRECTOR STARTED OFF ON THE SHOP FLOOR AS A TEAM MANAGER AND HAS BEEN WITH THE COMPANY MORE THAN 20 YEARS. ANOTHER EXAMPLE IS OUR HEAD OF QUALITY MANAGEMENT IN MANUFACTURING, WHO IS THE FIRST BLACK SOUTH AFRICAN IN THIS POSITION STARTED IN THE COMPANY MANY YEARS AGO AND HAS MOVED AHEAD THROUGH THESE PROGRAMMES AND ROSE THROUGH THE RANKS.

IN ADDITION WE NEED TO LEAVE NO STONE UNTURNED IN APPOINTING QUALIFIED BLACK PEOPLE AND THOSE WITH POTENTIAL IN WORKPLACES. (GO BACK TO SLIDE AND HIGHLIGHT MBSA EXPERIENCE) TRANSFORMATION FORUM WITH LEADERSHIP COMMITMENT CHAIRED BY A BOARD MEMBER, AND IS THEREFORE EMPOWERED TO DRIVE ALL TRANSFORMATIONAL ISSUES IN THE COMPANY INCL. BBBEE. ONE OF THE FUNCTIONS OF THE TRANSFORMATION FORUM IS THE DEVIATION COMMITTEE – THIS COMMITTEE ENSURES ROBUST INTERACTION BETWEEN MANAGERS AND THE FORUM WHEN THERE IS AN INTENTION TO APPOINT NON-EE CANDIDATES.

Mercedes-Benz South AfricaA Daimler CompanyMBSA- EE Progress vs. Targets: Race

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YOU WILL SEE FROM THIS RATHER COMPLEX SLIDE THAT WE HAVE SET THE TARGETS FOR 2009 AND 2011 (IN DARK BLUE AND PINK RESPECTIVELY) AT VARIOUS LEVELS IN THE ORGANISATION. TAKE FOR EXAMPLE THE MANAGEMENT LEVEL ON THE LEFT. HERE WE ARE DEMANDING QUITE A STRETCH –THE TARGET REQUIRES THAT THE EE REPRESENTATION MUST DOUBLE.

ALSO INTERESTING IS THAT AT SENIOR MANAGEMENT LEVEL AND AT MIDDLE MANAGEMENT LEVEL THERE IS A LARGE STRETCH (THE PINK BAR) REQUIRED IN 2011. TOWARD THE RIGHT WHICH ARE THE SPECIALISED AND CUSTOMARY OPERATIONAL LEVELS THE EE REQUIREMENTS HAVE LARGELY BEEN MET. ON TO THE NEXT CHALLENGE


Challenge 2

Gender equity

WOMEN EMPOWERMENT IN THE WORKPLACE IS OF CRITICAL IMPORTANCE. AS THE OLD ADAGE SAYS, “A WOMAN’S PLACE IS NOT IN THE KITCHEN, BUT IN THE STRUGGLE”. THAT IS WHY WE NEED TO APPLAUD THE POLICY DECISION OF THE RULING PARTY, FOR GENDER PARITY. EXAMPLES OF THESE ARE THE FEMALE MINISTERS IN GOVT., THE DGS, THE CEOS OF PARASTATALS, LIKE ACSA AND TRANSNET, THE CURRENT AND THE PREVIOUS DEPUTY-PRESIDENT. MANY PERFORMING EXCEPTIONALLY.

THE PRIVATE SECTOR SHOULD NOT STAND ON THE SIDE AND WATCH TRANSFORMATION TAKING PLACE IN THE PUBLIC SECTOR. WE NEED TO SEE FUNDAMENTAL TRANSFORMATION IN TERMS OF WOMEN EMPOWERMENT WITHIN THE PRIVATE SECTOR. ONCE AGAIN THIS MUST NOT BE ABOUT THE NUMBERS GAME TO MERELY MEET THE SCORECARD, FULFILLING CHARTERS, BEING POLITICALLY CORRECT – BUT IT MUST BE BECAUSE GENDER PARITY IS AN ECONOMIC IMPERATIVE. AND THIS MUST BE INCORPORATE INTO THE COMPANY’S STRATEGIC PLANS.


Gender equity at MBSA

• Business Women’s Forum

• Mentorship and coaching

• Accelerated appointment of women

OUR BWF ESTABLISHED A FEW MONTHS AGO – HAS A MANDATE TO IDENTIFY KEY

• NETWORKING OPPORTUNITIES FOR WOMEN WITHIN AND OUTSIDE THE COMPANY

• KEY TRAINING PROGRAMMES • SENSITISE THE WORKPLACE TO THE CHALLENGES

FACING WOMEN IN THE WORKPLACE • ACTS AS A MONITORING TOOL FOR THE

RETENTION OF FEMALE EMPLOYEES AND

THEREFORE PROVIDES CRITICAL ADVICE TO THE BOARD

ONGOING MENTORSHIP AND COACHING OF UPCOMING FEMALE EMPLOYEES, NOT JUST BY FEMALE LEADERS, BUT BY SENIOR MALES AS WELL. FEMALE EMPLOYEES WILL NEED TO UNDERSTAND THE GAME PLAN OF THEIR MALE COLLEAGUES. DR NZIMANDE, YESTERDAY SPOKE ABOUT THE BIG BUSINESS DECISIONS PERCEIVED TO BE MADE ON THE ‘GOLF COURSE’ . WOMEN NEED TO PART OF THESE DECISIONS AND THEREFORE SHOULD BE WHERE THE MEN ARE. SO WE WILL FOLLOW YOU! LOOKING AT THE APPOINTMENT OF WOMEN…

Mercedes-Benz South AfricaA Daimler CompanyMBSA- EE Progress vs. Targets: Black Females

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THE BIGGEST CHALLENGE FOR MOST COMPANIES IN THE PRIVATE SECTOR IS AT THE BOARD LEVEL. A QUICK LOOK AT THE SAME TYPE OF PICTURE REFLECTING THE EMPLOYMENT RATIO OF SPECIFICALLY BLACK FEMALES ILLUSTRATED A VERY SIMILAR PICTURE TO THE OVERALL ONE I JUST SHOWED YOU FOR RACIAL DIVERSITY.

EXCEPT AT MANAGEMENT BOARD LEVEL WHERE YOU SEE WE HAVE REACHED OUR TARGET REGARDING THE MALE/FEMALE RATIO – AND I’M VERY HAPPY TO BE PART OF OUR GOAL IN THIS RESPECT.


Moving forward on the road to Transformation…Siyaphambili

EE IS NOT AN EXERCISE FOR POINTS, BUT FOR CONTRIBUTING TO THE ECONOMY OF THE COUNTRY. SUCCESSFUL IMPLEMENTATION OF EE IN THE PRIVATE SECTOR WILL ACTUALLY CONTRIBUTE TO ADDRESSING OTHER CHALLENGES LIKE CRIME (WITHOUT

JUSTIFYING CRIME), AND POLITICAL STABILITY. AND THIS IS IMPORTANT FOR THE ECONOMIC SUCCESS OF THE PRIVATE SECTOR. TRANSFORMATION IS A JOURNEY ALL COMPANIES – THE WHOLE OF THE PRIVATE SECTOR – MUST MAKE. IT IS NOT ALWAYS SMOOTH SAILING. LIKE A JOURNEY YOU MAY HAVE TO DEVIATE ALONG THE FREEWAY AND STOP-OFF AT THE SHELL GARAGE, BUT INEVITABLY YOU MUST CONTINUE AND GO BACK ONTO THE HIGHWAY. IF WE ALL FOCUS ON THIS JOURNEY, WE WILL EVENTUALLY ENSURE THAT THE COUNTRY ACHIEVE THE 6% GROWTH, IMPROVES ITS SKILLS, HALVES UNEMPLOYMENT AND FULFILLS THE MILLENNIUM DEVELOPMENT GOALS.


Thank you for your attention

THANK YOU.

address by lulu letlape to the bmf national …...• mercedes-benz south africa (mbsa) is wholly...

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