Social performance

Skills development

The group companies are committed to the development of all their employees and to this end support the Government’s initiatives aimed at promoting training, education and development. The principle of learning through experience, as well as formal training, is adhered to throughout the group.

Training needs are identified and documented in the form of work place skills plans. These plans and implementation reports are submitted to the relevant Sector Education and Training Authorities (SETAs).

Grants have been received from the various SETA Chambers for training completed.

The group spent R8 million on training and development of its employees in 2008. A total of 1 835 employees attended courses. The following table gives an overview of the type of formal training courses which employees attended and the number of participants within the group.

Course programme	Total attendees	Black (%)	Training spend on black (%)
Computer skills	135	72	62
Mobile hoist/driver	235	98	98
Management and supervisory	47	57	69
Adult basic education and training	8	100	100
Continual professional development	120	51	50
Regulatory	435	85	81
Workplace effectiveness	633	72	64
Shipping	222	67	68
Grand total	1 835	76	69

In support of the national skills development strategy group companies continued to engage candidates on learnership programmes. In 2008 a total of 48 candidates (of which 83% were black) completed the programmes.

In addition, employees with professional qualifications are encouraged to keep abreast of developments in their particular fields by attending seminars, conferences and training courses.

Unicorn has been a prominent developer of local seafaring talent since 1965. On completion of approved Maritime Studies at either the Durban Institute of Technology (DIT) or the Cape Technikon, cadets are selected for training to serve as future deck or engineering officers in the Unicorn fleet. They undergo shipboard familiarisation and specialised ancillary training, as required in terms of the International Standards of Training, Certification and Watchkeeping for Seafarers (STCW 95). Training is also undertaken on behalf of third parties such as the National Ports Authority.

The Unicorn Seafarers Training School based in Durban continues to provide valuable support to the maritime industry and demonstrates the group’s commitment to skills development. The school is South African Maritime Safety Authority (SAMSA) accredited and individuals who successfully complete courses, receive certificates that are nationally and internationally recognised.

During 2008, 1 994 seafarers completed courses at the school. This number included amongst others, local and international categories of officers, ratings, cadets, auxiliary crew of cruise liners and yachtsmen. Courses included shipboard familiarisation, safety at sea, proficiency in survival craft, rescue craft, first aid at sea, petroleum tanker safety, chemical tanker safety and able seaman and oiler. All courses are recognised in terms of International Maritime Organisation (IMO) Standards of Training, Certification and Watchkeeping (STCW).

There are currently 53 cadets undergoing training, of which 49 are black and 12 are female.

The cadet training expenditure for 2008 was R2,6 million of which R1,7 million was spent on the training of officers and ratings. This included R420 000 spend on specialised training of officers in the United Kingdom.

In addition to the training of cadets for employment in its own fleet, Unicorn provides training berths at sea and manages the training of cadets on behalf of:

•	Transnet National Ports Authority of South Africa;
•	Namibian Ports Authority (Namport);
•	De Beers Marine (Angola);
•	Sonatide (Angola); and
•	OPS/SBM (Angola).

The group has embarked on the projects described above with the intention of:

•	contributing to the meaningful transforming of the local maritime industry; and
•	supporting the NEPAD initiative by assisting regional African countries with maritime training requirements.

Preferential procurement

Group companies continue to endeavour to direct any discretionary spend towards qualifying BEE enterprises.

This is an area where there has not been sufficient progress and co-ordination of the procurement function is receiving urgent attention by management.

Enterprise development

The success of B-BBEE is highly dependent on the development and growth of small businesses and to this end the group companies are continually seeking to support industry specific qualifying small enterprises.

As indicated earlier, R10 million in interest-free enterprise development loans have been provided by Grindrod (South Africa) to Adopt-a-School Foundation to finance its equity contribution in the empowerment transaction.

A number of guarantees have been issued and a shareholder loan granted to Calulo as part of the transaction within the Shipping division referred to in the ownership section.

Corporate social investment

The main focus of the corporate social investment (CSI) programme is centred around education, which is regarded by the group as key to the future of the country. The group is, however, also involved in environmental, community welfare and health, and business development programmes.

In some instances initiatives are managed at the business unit level and these are appropriate to the circumstances of each business and community in which it operates.

The group spent approximately R2,1 million during 2008 on its CSI programmes (2007: R1,35 million).

In addition, Grindrod Bank spent R1,9 million mainly through discounted fees to private clients of the Bank. These clients are involved in areas such as education, training, environment, arts and culture and health as defined in Section 13 of the Financial Sector Charter. Also included in this amount was the monetary value of the time spent by staff on charitable organisations.

Education and training

A full report on the internal programmes related to education, training and development within the group is referred to in the schools development sub-section of the social performance report. In particular, a full bursary scheme is available to children of employees, both in respect of school and tertiary education with a strong bias towards the previously disadvantaged.

During the year the company completed the building of two classrooms and administrative buildings in the Bothas Hill area in association with Project Build, a Durban based project management organisation involved in the development of school facilities. The building of modern ablution facilities at the Ukusakwabasha School in Bothas Hill commenced in 2008. Planning also got underway for the development of a maritime centre at the Sithengele High School in the Claremont area. This project will be completed in the first half of 2009.

A number of bursaries were awarded to black pupils to attend both private and “model C” high schools in KwaZulu-Natal. The performance of these children is being monitored in association with the management of these schools.

Grindrod continues to sponsor the Liberty Life/JSE Schools Challenge Project.

A new initiative involving the distribution of 1 000 lap desks to children in the Valley of a Thousand Hills area outside Durban was successfully accomplished.

Grindrod (South Africa) will contribute approximately R1 million a year to the Adopt-a-School Foundation for the ten-year period of the lock-in, in terms of the B-BBEE transaction. The intention is that the vast majority of all Grindrod SA’s future CSI expenditure would be directed to AAS, aimed at improving education infrastructure, particularly in rural areas. The CSI expenditure directed towards the Foundation will provide an element of predictability to the funding of its initiatives, as it relies entirely on donor funds, during the period whilst the funding of the transaction is being repaid.

The group has also been involved with the distribution of other educational material to schools and is a supporter of the Fathers Heart Foundation, which operates in the Cato Manor area, through practical caring for orphan children. Another orphan care initiative has been the sponsoring of home care and schooling costs for six teenage pupils under the care of the Durban based I-Care organisation.

Community, welfare and health

A major project reported on in 2007 was the sponsorship of Kingsley Holgate’s Cape to Cape expedition aimed at circumnavigating Africa with the major objective of distributing mosquito nets, spectacles and literacy material. The expedition was successfully completed with the return of the convoy in July 2008. A second payment in the amount of R425 000 was made during the year. The group has also committed to support another expedition in 2009.

A number of containers were donated to underprivileged areas to serve as libraries, administrative offices and storage facilities. This initiative takes place through the group’s container handling business.

The group continues to support several health related initiatives in KwaZulu-Natal including various HIV/Aids donations.

Grindrod provides financial support to the International Sailors’ Society of Southern Africa, which provides practical and spiritual support to international seafarers.

Environment

The group continues to support the World Wildlife Fund, Southern Africa and other environmental related organisations.

Business development

GFS Holdings Limited acquired a 25,1% interest in SM Business Consultants (Pty) Limited owned and run by black women for the management of donor funds and CSI spend.

Grindrod is a member of the South African Chamber of Commerce (SACOB) and has an association with the National Business Initiative (NBI). The latter organisation applies its resources to fund a diverse range of sustainable development programmes aimed at employment creation, education and schools development.

Grindrod has also been a co-sponsor and participating member of the KwaZulu-Natal Growth Coalition, which is a public/private partnership aimed at accelerating economic development in the province.

Grindrod continues to build and maintain sustainable relationships with a range of stakeholder groups particularly in relation to long-term strategic direction and focus on sustainability practices.

OCCUPATIONAL HEALTH AND SAFETY

Progress was made in the year under review in standardising and improving reporting on health and safety performance and investment. Occupational health and safety investment increased from around R4,5 million in 2007 to R8,9 million during 2008. A significant proportion of the 2008 investment was spent on health and safety audits in the Shipping division. There was also an increase in investment in safety equipment, training and improved safety measures throughout the group.

Grindrod’s health and safety objectives and targets are simple – full compliance with applicable legislation with a target of zero incidents, within a culture of continual improvement.

Occupational health and safety is managed in terms of site-level or ship-based integrated safety health and environment (SHE) and quality (SHEQ) management systems. Senior employees in the company are required to ensure that all legal requirements are complied with and this forms part of their personal assessment. Wherever applicable, health and safety committees are maintained at site level, with full staff representation. Major contractors (e.g. shipyards) are audited in terms of safety, health and environmental performance on an ongoing basis. All serious incidents are reported, fully investigated with appropriate action taken, and are reported to the Grindrod Limited board.

The group’s shipbuilding technical specifications have specifically banned the use of asbestos in ship’s construction for the last 20 years.

Performance for the year under review per division was as follows:

Shipping

The division continued its excellent record with only five lost time incidents and one medical treatment case. The injury frequency rate within the division was 3,2 per million man hours, a slight improvement from last year’s rate of 3,4. Following an injury, incident reports are circulated throughout the fleet and discussed in (HSE Stops) safety moments used for training and awareness. The division also participates in a Lessons Learned Scheme with companies in the oil and gas sector and other shipping companies.

KPIs
Health and safety spend	R5 576 817	Of which 66% was spent on H&S audits
Medical treatment cases	1
Lost time incidents	5
Fatalities	–

Freight Services

Companies within the Freight Services division reported a total of 79 medical treatment cases, of which 29 were lost time incidents.

Grindrod regrets to report that during the year three employees lost their lives. All three incidents were thoroughly investigated and appropriate health and safety training has been intensified within this division and a Divisional Occupational Health and Safety Manager with considerable experience has been appointed in 2009.

KPIs
Health and safety spend	R3 282 453	Of which 41% was spent on safety equipment
Medical treatment cases	79
Lost time incidents	29
Fatalities	3

Trading

No injuries were reported during the year.

Financial Services

No injuries were reported during the year.

HUMAN RIGHTS

Grindrod upholds employee human rights throughout its operations. Basic human rights are enshrined in company policy and in employment contracts. There is no child labour and forced labour within the group. There were no incidents of human rights violations during the year under review.

HIV/AIDS

Grindrod acknowledges the enormity of the HIV/Aids epidemic and the severe social and economic implications of the disease. A group policy encouraging education and training and ensuring fair, compassionate and non-discriminatory treatment of those who may be affected by the disease is in place.

Awareness programmes were stepped up in all operational areas. Within the Freight Services division, a full-time HIV/Aids counsellor provides awareness programmes, education and counselling. Long-distance drivers within this division are informed of the location of clinics at certain truck stops throughout the region and are encouraged to utilise these.

Within the Shipping division, modules on HIV/Aids and STD continued to be featured in a number of training courses including the “personal safety and social responsibility”, “first aid” and “personal survival” courses conducted at our Marine Training School. Induction programmes also include a section on HIV/Aids. Companies within the Shipping and Freight Services divisions provide the opportunity for voluntary testing on sponsored health days.

Group companies have made contributions to HIV/Aids awareness programmes and support to HIV/Aids care centres. Such initiatives also include signs and posters on all vessels, distribution of pamphlets and free access to prophylactics. R123 000 was spent on the abovementioned interventions within Unicorn Shipping.