Annual Report - JD Group

Employment benefits funds
Approximately 95% of Group employees are members of a
retirement fund offered by the Group. The retirement funds are
the Alexander Forbes Retirement Fund Pension and Provident –
(JDG Trading (Pty) Ltd (“AFRF”)); The JD Group Defined Benefit
Pension Fund (Defined Benefit Fund); the SA Commercial Catering
and Allied Workers Union National Provident Fund (“SNFP”);
various small funds in Botswana, Lesotho and Swaziland and the
Social Security Fund (“SSF”) in Poland. The Group also participates
in the Profurn Pension Fund and the Profurn Provident Fund, both
of which will be absorbed into the AFRF once regulatory approval
is granted.
The AFRF is an umbrella fund, in which a number of employees
participate, and has a professional board of trustees in place.
Management committees comprising four employer appointed
and four employee elected members monitor and review the AFRF,
monitor investments and assist in the distribution of death
benefits. The employer appointed management committee
members who represent JDG Trading on the AFRF are Ivan Levy,
Jan Bezuidenhout, Lindsay Mentor and Rénier Krige.
The SNPF in an umbrella fund in which a number of employees
participate in terms of a collective bargaining arrangement with
SACCAWU. Old Mutual Employee Benefits Industry Funds Unit are
the administrators of the SNPF.
The Defined Benefit Fund employer trustees are Ivan Levy
(chairman/employer trustee), Jan Bezuidenhout (principal
officer/employer trustee), Lindsay Mentor (employer trustee)
Rénier Krige (employer trustee) and four member elected trustees.
Frequency of meetings
The AFRF and Defined Benefit Fund hold annual formal
management committee meetings with informal meetings as and
when required.
Details of the Group’s retirement funds and impact on the
financial statements are set out in note 23 of the annual financial
statements.
Employment equity and skills development
JD Group strives to create an environment in which all individuals
and teams may develop their full potential for the benefit of
themselves and the Group.
The directors acknowledge that the effective development of
employees is key to the success of the Group. The human resource
policies include a broad framework of corporate values and are
driven by the need to ensure effective utilisation of and
investment in human resources. Merit and competence are the
key criteria for advancement in the Group. Acknowledging the
diversity of cultures in the employee complement, the Group
continually seeks to redress historical imbalances so that all
employees can compete on equal terms. The Group applies
policies that do not discriminate on grounds of race, age,
disability, gender or religion and which provide good opportunities
for previously disadvantaged sections of the community.
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The Group recognises the rights of employees regarding freedom
of expression and freedom of association and representation. The
Group affirms that employees have the right to choose to
participate in organised labour structures and collective
bargaining. Where possible, employee participation in problem
solving and decision making is encouraged.
Training and career development are important elements of
JD Group’s business philosophy and success. In a challenging
environment, strong leadership is required to guide a successful
business. The Group puts a high priority on developing the next
generation of business leaders and continues to explore new
ways to foster a progressive workplace that attracts and inspires
employees of the required calibre.
The Group actively pursues people development in order to
influence, support and grow operational efficiency and
performance. Training and development of all employees is a nonnegotiable
core principle of the Group.
In April 2003, the JD Group Learning Academy (JDLA) was
established at the previous Morkels head office in Hillfox,
Roodepoort. The JDLA has hosted almost 8 000 delegates since
inception. Although the JDLA is the primary venue for behavioural
skills development, the chains run their own regional training
centres. Technical and retail specific skills development are catered
for at business unit level.
Structured development includes Basic, Retail, Advanced and
Executive Development Programmes. During the period the Group
conducted 9 500 employee development interventions in
compliance with the workplace skills plan administered by the
Wholesale and Retail Education Sector Authority.
Stakeholders’ communication
The board is aware of the importance of balanced and
understandable communication of the Group’s activities to
stakeholders and strives to clearly present any matters material
to a proper appreciation of the Group’s position. The interests
and concerns of stakeholders are addressed by communicating
information as it becomes known.
The directors foster a mutual understanding of objectives shared
between the Group and its institutional shareholders by meeting
with and making presentations to them on a regular basis. The
board welcomes the attendance of private shareholders at the
annual general meetingand other general meetings, which
provides them with the opportunity to address questions. At last
year’s annual general meeting, all resolutions were passed on a
show of hands. The level of proxies lodged on each resolution was
announced at the meetings.
The Group adopts a proactive stance in timely dissemination of
appropriate information to stakeholders through print and
electronic news releases and the statutory publication of the
Group’s financial performance.