Sustainability

Social Performance

During the review period, 200 new employees became share owners, taking the total to 2 700, and R27,3 million in dividends has been paid to these share owners and loan funders. Additionally, R3,4 million was spent on PPC broad-based trust projects.

Beneficiaries of empowerment

PPC is firmly committed to black economic empowerment in South Africa, given the importance of meaningful participation by black people in the mainstream economy to meet the country's socio-economic objectives.

Following the conclusion of our R2,7 billion BBBEE transaction in 2008, our shareholding includes some 3,5 million black beneficiaries in broad-based shareholder groupings, including employees and communities. This transaction created and transferred over 15% of PPC's equity into black hands through various trusts, a consortium of strategic business partners, and community service groups (overleaf) to provide the maximum benefit to participants through innovative funding structures that release dividends at the earliest possible time.

In 2010, PPC continued to engage with various national and provincial government departments to align the company's broad-based socio-economic transformation objectives with that of government. Progress is guided by our REAL (relevant, empowering, actualised and lasting) transformation philosophy, the heart of all our social performance initiatives.

Since the launch of the PPC external trusts, trustees have been implementing various projects across the different trusts, most notably under the PPC Construction Industry Associations Trust.

PPC external broad-based and internal staff trusts

Since announcing the PPC broad-based black economic empowerment transaction in September 2008, good progress has been made in implementing the aims of both the external broad-based and internal staff trusts linked to the transaction.

Over half or 8% of the 15,29% equity stake, totalling R1,4 billion, relates to these trusts, and it required focus and commitment from all stakeholders to ensure the successful launch and implementation of the individual trusts. The focus for each of these trusts is detailed below.

Creating sustainable opportunities for black emerging contractors
The PPC Construction Industry Associations Trust (CIA) (Reg No IT 1040/08)

Launched in January 2009, the long-term objective of this trust is to deliver strategic projects that contribute to the socio-economic upliftment of disadvantaged individuals and communities across South Africa.

In 2010, the trustees approved an additional R1,9 million (2009: R3,2 million) to four beneficiary construction associations (detailed below). This allocation will cover numerous projects aimed at capacitating the development of association members. Another R1 million has been set aside for the projects of new beneficiaries being identified by the board of trustees.

To date over 600 members from different associations have participated in accredited training programmes.

Beneficiary associations

• Khuthaza Development Solutions (previously Women for Housing)
  In 2009/2010, members were trained in practical building skills at the Tjeka Training Centre in Chamdor, Mogale City. A further 41 contractors received accredited training in bricklaying, plastering, plumbing, painting and carpentry, while another 20 contractors were trained in project management and 24 contractors received computer training. The total cost of this training was R402 000.
  
  In the latter part of 2010, contractors were trained in negotiation skills and construction management. Funding for these programmes amounted to R500 000 and was covered by the allocation for 2010.
• National African Federation for the Building Industry (NAFBI)
  Last year NAFBI spent its allocation of R656 000 on leadership training for its provincial directors and training for its members on tendering and pricing, construction site management and financial management. Altogether 181 members benefited from the training.
  
  NAFBI also used some of its 2009 allocation to establish its website as a communication tool with its members (www.nafbi.org).
  
  In 2010 NAFBI elected to spend its R500 000 allocation on health and safety training for 79 members and financial management training for a further 40 members. Both programmes were run by accredited black training providers. An additional 32 members were trained in bricklaying skills.
• South African Women in Construction (SAWiC)
  In 2009 SAWiC used its allocation of R271 000 to develop its website (www.sawic.org) and organised governance training for 19 members. The funding was also used to compile SAWiC information brochures and for assistance with printing its annual report.
  
  In 2010 a further R405 000 was allocated to SAWiC to develop its office capacity nationally and to train members in public-private partnerships, computer skills and construction management.
• Mellon Housing Initiative
  Mellon spent its 2009 allocation of R604 000 on life skills training for 160 contractors as well as practical building skills for 211 contractors.
  
  The 2010 allocation of R500 000 went to supervisory skills for 24 of its foremen and life skills training linked to practical building skills for a further 24 contractors. In addition, Mellon has arranged for 57 community staff members to receive training in computer skills

Supplying key skills for the sector
The PPC Education Trust (Reg No IT 1041/08)

The PPC Education Trust was launched in August 2009, with its first project targeted at beneficiaries in the cement manufacturing, mining and construction sector in the Mafikeng region, where unemployment is widespread.

In 2009 the board of trustees approved a three-year artisan training programme for five trainees in the plater welding, fitting and turning, and electrical fields at a cost of R1,8 million. The project is being implemented by the PPC technical skills academy, with solid progress reported by current learners. Cognisant of the dire shortage of skills in the sector and, importantly, in the Mafikeng region, two more local community members will join the artisan training programme in 2011.

Building sustainable communities
The PPC Community Trust (Reg No IT 1035/08)

In 2010, the trustees introduced the PPC Community Trust to senior PPC management at all operations, and met with the relevant community engagement forums and local government.

To date, 26 project proposals have been received from nine designated beneficiary communities. These projects include food gardens, early childhood development initiatives, upgrading a clinic in Atteridgeville near Pretoria, computer literacy, a rural youth leadership training programme and renovation of a daycare centre in the Eastern Cape. These projects will be implemented in 2010 and 2011 once community engagement forums have been formalised and appointed.

Our people and their families
The PPC Team Benefit Trust (Reg No IT 1036/08)

Launched in June 2009, this trust initially concentrated on financial literacy among shop-floor employees, which was identified as a priority after conducting a needs analysis survey across the business.

The financial fitness initiative is being implemented across all PPC sites for the remainder of 2010, covering all qualifying employees and their families. Initiatives for the new financial year are being assessed by the trustees.

Making employees shareholders
The PPC staff trusts

Since the launch of the internal staff trusts, some 2 672 existing staff beneficiaries have collectively received R6,5 million in dividends. The Future PPC Team Trust, which deals with new staff members, is currently 41% allocated, with 302 249 shares passed on to beneficiaries. Some 162 new beneficiaries have joined this trust since the last report. The Black Managers Trust is currently 61% allocated, with 6,3 million shares passed on to beneficiaries, and 32 new beneficiaries since the 2009 report.

In the reporting period, dividends of R20,9 million were paid to the trust loan funders on behalf of beneficiaries.

As share owners our people now take a broader view of PPC as a business, realising that, as part owners, their wellbeing and growth are interlinked with PPC as an organisation - working together to create a better life for all.