Non-financial overview

Our people

 

Safety and health

Lost-time injury frequency rate (LTIFR)
Lost-time injury frequency rate (LTIFR)
Occupational health

In the review period, site evaluations of occupational health services were completed for 27 business units. This highlighted the need for a group standard which has been prioritised for FY19.

Integral to our business strategy is unleashing the power of our people. This means creating a great place to work attracts, develops and retains talented people who deliver winning performance.

Our long-term success depends on ensuring the safety of our people, visitors and contractors at our operations. Despite our diligent efforts to improve overall safety management, in FY18 we regrettably recorded a fatality when an Albany Bakery employee, Mr Thulani Shoba, died on duty in a route-to-market incident in Durban. Our deepest condolences go to his family, friends and colleagues.

All reported incidents are investigated to identify root causes. Based on FY18 reported incidents, behavioural and operational discipline are the leading causes of injuries.

Our people

At Tiger Brands, our people and our brands are our biggest differentiator. We leverage on their talent and agility to nourish and nurture more lives every day. To this end, we continuously strive to create a great place for our diverse people to thrive, grow and innovate.


A Great Place to Work

In the review period, we engaged our leaders and workforce to identify cultural barriers affecting our business performance. As an outcome, we have refreshed our values and defined our winning culture and behaviours that will support executing our business strategy and embedding our new operating model.

In line with our people strategy, key focus areas during the period included the attraction, acquisition and development of core capabilities. In FY18, we invested R61 million of local labour costs on in-house training in South Africa, through the Tiger Brands Academy, as well as learnerships.

As part of creating a great place to work we reviewed our remuneration strategy, and focussed on engagement with our union stakeholders on matters of mutual interest.

Key indicators FY18   FY17   FY16  
Employee headcount 17 608   18 085   21 474  
Female employees 3 637   3 532   3 910  
Learnership participants 529   417   324  
Skills development (Rm) 60,5   56,7   66,8  
Total training as % of payroll 1,80   2,08   2,05  
Overall staff turnover rate (%) 11,0   9,1   7,1  
Retention rate of key talent (target 80%) 89%   91%   91%  
Rewarding winning performance

Despite the group's financial performance being severely impacted by challenging operating environment and the Listeria outbreak, in FY18, we sought to leverage the remuneration strategy to attract and retain key skills to support our business strategy.

To ensure our remuneration policy remains competitive and fulfils the objective of attracting, motivating and retaining high-performing employees, pay scales and other elements of the remuneration mix were reviewed after considering market benchmarks and capabilities required to deliver the business strategy.

Changes included:

  • Refining our approach to linking our annual execution plans directly with business strategy by ensuring the appropriate focus of our short-term incentive metrics on growth, efficiencies, people and sustainability
  • Revising our market anchor point for guaranteed pay from the 50th to 65th percentile of the national market and implementing a pay-progression model to ensure we are able to attract and motivate talent and core capabilities
  • Increasing focus to address any unjustifiable pay inequities
  • Developing a clawback and malus policy to minimise risk
  • Revising long-term incentive performance metrics to align executive and shareholder interests.
Employee relations

In fulfilling our strategic goal of creating a constructive, safe and fair working environment for all our people, our leaders engage directly with our people regularly to address issues of mutual interest. We also work closely with employee representatives, partner trade unions to ensure everyone has a voice in matters that affect them daily.

Fourteen wage-negotiation cycles were settled across our sites out of 18 scheduled for the period, and the balance will be concluded in the new year. An average settlement of 7,5%
was achieved.

Our employees have full freedom of association, with over 62% belonging to unions (including three major industry unions). Site management and shop stewards meet monthly to address issues of mutual interest.

Communities

Key indicators (Rm) FY18     FY17     FY16     FY15  
Total SED spend 32,0     35,0     23,0     24,2  
Tiger Brands Foundation spend 28,7*   23,9*   19,0*   15,3  
Beneficiaries reached 88 632     104 215     100 977     118 443  

* For the Foundation's financial year to end-February.

To fulfil our responsibility to contribute to the welfare of our communities, we revised our socio-economic development (SED) strategy to be more responsive to challenges.

The new SED strategy is integrated into our business objectives and focused on real – and changing – community needs.
In the spirit of stakeholder inclusivity (a key insight from the 2017 stakeholder survey), this strategy has integrated national and societal challenges. This allows us to respond to real issues impacting communities.

In the review period, we invested 1,5% of net profit after tax, or R32 million, on community development, achieving several milestones:

  • Over 55 600 high-quality, nutrient dense and fortified food packages distributed
  • 30 000 direct and indirect beneficiaries reached monthly via the Tiger Brands food and nutrition support programme
  • Over 3 000 beneficiaries in crisis supported through our CSI and employee volunteerism programmes
  • In partnership with the Tiger Brands Foundation, we supported the development and distribution of 15 000 placemats and 10 500 posters focused on nutrition education in schools
  • 204 community members trained in food gardening and community education.
Tiger Brands Foundation

In 2011, the Tiger Brands Foundation implemented South Africa's first in-school breakfast programme in partnership with the Department of Basic Education's national school nutrition programme.

From six primary schools in Alexandra, this has expanded to 94 schools in all provinces, providing the essential breakfast meal to around 67 500 learners.

  • By September 2018, we had cumulatively invested over R174 million to serve more than 65 million breakfasts to our country's most vulnerable learners
  • We have constructed or upgraded 38 school kitchens
  • Created over 390 sustainable jobs for the community as food handlers, monitors and regional coordinators
  • Provided a stipend of R550 per month for 367 food handlers, injecting over R2,4 million into vulnerable communities
  • Introduced a food-handlers skills training programme accredited by the South African Qualifications Authority
  • Ensuring uniform food-preparation safety and hygiene standards.

Transformation

In South Africa, we support social transformation by advancing broad-based black economic empowerment (BBBEE) and other initiatives.

Tiger Brands is currently rated level 3 against the agriculture sector (agri-BEE) codes gazetted in December 2012. As these codes were gazetted after the group's last verification, it will be measured against the amended codes in December 2018. We are conducting our final verification, with the outcome available by 5 December 2018 (therefore not in time for this report).

Our internal assessment indicates that the group, measured against the amended codes, will temporarily drop to level 7 (discounted to level 8) given the new minimum requirements for priority elements (ownership, skills development, enterprise and supplier development).

To align with the revised codes, we are developing a broader group transformation strategy that will ensure integrated execution in all elements of the BBBEE scorecard to achieve level 4 status by FY22.

Transformation

Preferential procurement

Tiger Brands is committed to driving preferential-procurement practices and local-content requirements. In line with the agri-BEE codes, we provide a valuable procurement opportunity to drive social and economic transformation in South Africa.

In the review period, R12 billion was spent with BBBEE verified suppliers including R2 billion with black-owned enterprises.

Enterprise and supplier development (ESD)

Our aim is to develop the operational and financial capacity of black-owned and black women-owned enterprises to become part of our value chain – from sourcing to distribution – as reliable and competent suppliers.

The new enterprise and supplier development office is mandated to develop and execute our ESD strategy and unlock procurement opportunities for black enterprises.

In the review period, we supported 58 black farmers under our smallholder programme. This included financial and non-financial support, agronomics and agrarian support, as well as business mentorship and 0% interest loans.

  • 52 tomato farmers supplied Tiger Brands with 5 200 tons of tomatoes.
  • 6 bean farmers supplied 70 tons of beans.

With a total investment of R11 million, these farmers have been entrenched in our procurement chain. In turn, they created 412 jobs, including 194 female employees. An additional investment of R1,3 million was made in Khayelitsha Cookies, Cape Town, to commission a factory producing Purity baby rusks. Khayelitsha Cookies created 91 jobs, all women.

In 2019, we plan to expand the smallholder farmer programme to wheat, sorghum and peanuts.