omnia holdings annual report 2010 omnia holdings annu

concern assumption at the interim reporting stage has been
affected. The directors have formed a judgement that there is a
reasonable expectation that the Group has adequate resources
to continue to operate for the foreseeable future, and therefore
continue to adopt the going-concern basis in the preparation of
the financial statements.
Employment equity and transformation
Workforce diversity
Our transformation goals aim to reflect the demographic profile
of South Africa, in line with the economically active population
at all levels. These goals are set to address areas of underrepresentation
in terms of diversity by race and gender at all
levels. To realise our growth strategy, we focus on the attraction,
development and retention of skills within the Group and in the
broader South African context.
Initiatives to promote BBBEE
Omnia regards BBBEE as a business fundamental that is crucial
to the future of South Africa and its economy. It is an essential
process required to bring about increasing black participation in
the South African economy and reducing the existing disparity
between income inequalities.
Our BBBEE imperatives are based on the principles that:
� Poverty can only be effectively dealt with in a high-growth
environment.
� Wealth must be generated and opportunities created to
ensure a more equitable society.
� It is a moral necessity, required to address the legacy
of a past in which the majority of South Africa’s citizens
were excluded, on the basis of their race, from enjoying
the benefits to be derived from being participants in the
mainstream economy.
Omnia has completed its financial year 2009 (based on the
annual report for the year ended 31 March 2009) BBBEE formal
verification and it has, in line with its strategy, achieved a
Level 5 status, with an overall score of 58,42 in terms of the
Department of Trade and Industry’s (the DTI’s) BBBEE Codes
of Good Practice. Omnia’s verification was conducted by
Empowerdex, a SANAS-accredited verification agency.
A Level 5 status affords a BBBEE procurement recognition of
80% for customers of the Omnia Group. A copy of the new
certificate and report is available on the intranet and the Omnia
website at www.omnia.co.za.
Omnia performed well in terms of skills development, enterprise
development and socio-economic development, having
exceeded some of the targets set by the Codes in these
categories. This is a reflection of the Group’s focus on
developing employees and communities, and addressing the
skills challenge faced by the Group. The Group has also done
well in preferential procurement. We are hopeful that ownership
will improve in the 2010 financial year verification, when our
employee share scheme, Sakhile 2 is included. Our concerted
efforts towards employment equity within all divisions will,
however, continue. Omnia is within six points (a score equal to
or greater than 65) of achieving a Level 4 status with a 100%
BEE recognition level, which is in line with our target for 2010.
OMNIA ANNUAL REPORT 2010 49
Omnia also participated in the Financial Mail/Empowerdex
survey for 2010, and based on recent information, although
not tested to the degree performed during a formal verification,
achieved a score of 63,74, and is ranked 59th overall in the
Top 100 Empowerment Companies index in South Africa,
published by the Financial Mail in April 2010. We have once
again performed better than some of our competitors. We will
commence the 2010 verification process in the last quarter
of the 2010 calendar year.
Equity ownership
Omnia established the Sakhile equity scheme for employees,
which places 10% of the company in the hands of our South
African employees, in 2007. At the time of the launch, eligible
employees were awarded 1 000 shares each. The Sakhile
initiative ensures that the Group’s broader employee base
benefits directly from its growth over the longer term, thus
aligning their interests with those of shareholders. A separate
legal entity, Sakhile, is now overseen by a board of directors
who are nominated to their positions by members.
The Omnia Board has long recognised the need for significant
management ownership participation within the Group and
believes that the Group’s success is related to the excellence
and long-term dedication of its key management personnel.
The Board also believes that an effective partnership
arrangement between the shareholders of Omnia and
management enhances the wealth of the group.
According to these objectives, a second phase of the employee
share scheme, Sakhile 2, was launched during 2010. Aimed at
black members of Omnia’s management team, a portion of the
shares allocated to the scheme are to be used to attract skilled
individuals to the Group and to retain talented black board
members, executives and employees.
Employment equity
At Omnia we believe that a diverse workforce contributes to
cross-cultural understanding, broadens perspectives and helps to
enhance our competitive edge. We are therefore committed to
transforming Omnia’s workplace by systematically implementing
an employment equity plan, which, based on a robust set of
principles, guides the actions and initiatives we take to build
a truly representative workforce. These principles include:
� Offering equal opportunities to all employees, irrespective
of race or gender.
� Providing an enabling environment which allows people
to develop to the full extent of their capabilities.
� The payment of remuneration packages that take account
of individual performance and union agreements.
� The provision of a consultative environment for workforce
representatives.
� Fostering a sense of ownership.
� Fostering an internal focus of control.
Part of Omnia’s process of developing the employment equity
plan was establishing employment equity committees at
plant-level across all divisions. These ground-based committees
report to the divisional committees, who then report to the
central Group employment equity committee.
Plant and divisional-level committees debate strategies and
monitor legislative compliance, while the central committee