bold spirit - ArcelorMittal South Africa

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62 ArcelorMittal South Africa Annual Report 2010 Growing a robust skills pipeline During the year we expanded the scope of many of the programmes designed to develop our engineering and technical skills pipeline, and increased the number of bursaries and learnerships in many areas. We recognise the importance of skills development in feeding and nurturing a robust skills pipeline that will sustain our human resources requirements into the future. Our spend on training this year nearly doubled to R172.6 million. This commitment covers a variety of responses to the challenges we face. Challenges Lack of engineering and technical skills Our business relies heavily on engineering and technical skills, both of which are in short supply, not only in South Africa. The skills shortage is made more acute by the need to effect real transformation and an additional effort to be made to develop scarce skills from previously disadvantaged individuals. Ageing workforce Internal analysis also reveals that our production workforce is an ageing one. We estimate that around 1 000 of these highly experienced employees will retire within the next two years. While it is possible to recruit and train employees to replace those lost, the nature of production work requires new recruits to gain hands-on experience. The transfer of skills from the old to the new workforce will prove critical in this regard. Programmes were developed to ensure effective transfer of skills which includes a robust talent identification and succession-planning process. A two-year production learner programme was implemented not only to staff the four-team shift system, but to ensure a steady supply of labour as well as skills transfer. Inadequate or misaligned national education pipeline Sources of skills are by and large inadequate or misaligned to the needs of our industry. Tertiary education institutions are not producing enough graduates to meet the country’s demand, forcing companies to compete aggressively for skilled engineers and technicians. We therefore have to meet our needs for skills with innovative programmes in partnership with learning institutions. By responding to these challenges, we are growing a robust skills pipeline for our current and future needs. Highlights and challenges Skills development remains one of our key areas of strength. During the year we expanded the scope of many of the programmes designed to develop our engineering and technical skills pipeline, and increased the number of bursaries and learnerships in many areas. 86% of our pipeline candidates are drawn from historically disadvantaged groups. Attracting and retaining the best people We have improved our recruiting process for engineering and technical skills and developed a new employee induction programme. We continue to invest in the training and development of our people, providing them with opportunities to grow and develop promising career paths in our organisation. We plan to leverage our position as part of a global group to provide young talent with the opportunity to travel to operations overseas and gain international experience. Skills development Managing skills development The Manager, Training, reporting to the General Manager, Human Resources, is responsible for skills development, which is managed through the training and pipeline centre of excellence (CoE). A training and skills development committee ensures that all stakeholders
63 ArcelorMittal South Africa Annual Report 2010 are engaged on issues of skills development and training. Comprising line management, training CoE representatives, human resources consultants and trade union members, meets once a month to review skills development needs, performance and ongoing strategy. We are guided by an internal training and skills development policy, and comply with the requirements of the Skills Development Act. The dti Codes of Good Practice on Skills Development further inform our skills development strategy, particularly as it relates to transformation of the workplace. Meeting our skills requirements is the responsibility of the training and pipeline CoE, assisted by the talent management and organisation development CoE, the organisational management and remuneration CoE and the transformation committee. An annual company skills audit, together with training needs analysis, highlights where the critical skills gaps lie. A workforce analysis helps to identify our longterm skills pipeline and succession planning needs. The results of these assessments inform a comprehensive workplace skills plan. Black engineers – our most pressing need Training and skills development cannot be separated from the workplace transformation agenda, and any programme to attract and develop skilled people must be aligned with employment equity and black skills development needs (see section ‘Socio-economic equity’). Initiatives to address skills challenges Our response to the skills development challenge is twopronged. Internal initiatives help to develop and train our own people while external projects focus on growing, developing and attracting critical skills from within the current and future market. Programmes include the following: Bursaries • University bursaries: there are currently 100 bursars on our university bursary programme spread over the four years at university, all of whom are studying towards qualifications in the engineering field. At the beginning of the year, 25 bursars enrolled at various universities and we awarded 26 new bursaries for students embarking on degrees in 2011. Around 56% of our bursars are from historically disadvantaged groups. We did not, however, manage to fill all bursary positions due to a lack of suitable candidates. In the year ahead we plan to recruit bursars from among deserving black students who are already enrolled in engineering degrees. • Technician bursaries: our technician training approach reverted to the old model that alternates sixmonth tranches of technical college and on-site training. With the help of CSI funding we managed to add 22 bursars, identified through the ArcelorMittal science centres, to the 24 whom we had already funded for the year. We have awarded 80 technician bursaries for 2011 to meet our growing demand for these skills. • Apprentices: we dropped our intake of apprentices slightly from 512 in 2009 to 419 this year, in order to be able to increase the number of production learners (see below). These trainees will undergo our accelerated artisan training programme, which provides six months of institutional training complemented by 12 months on-site mentored practical training to ensure artisans are
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Annual Report 2010 bold spirit
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Brand values Our goal is to provide
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