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SOCIAL ASPECTS Relations with Employees Sharing the Toyota Way The Toyota Way, supported as it is by the twin pillars of ‘Respect for People’ and ‘Continuous Improvement’, provides a framework for the values that govern the way Toyota people go about their business. The Guiding Principles also allude to the fostering of a corporate culture that ‘enhances individual creativity and teamwork’, ‘mutual trust’ and ‘respect between labour and management’. This ethos of mutual respect is seen as crucial to the continuing success of TSAM, and is reinforced by competitive remuneration and employee benefits, recognition and reward for effort, open channels of communication and structures promoting good management/ labour relations. Health and safety of employees and contractors is of paramount importance, with programmes in place to ensure a healthy, motivated and productive workforce. In the South African context, TSAM has an obligation to promote broad based black economic empowerment (BBBEE) in the interests of nation-building. Thus there is a special focus on Employment Equity (EE) in the workplace, which is a key component of BBBEE. Total employment The economic recession and resultant drop in production over the reporting period resulted in a 12% reduction in total employment from 9 089 in FY08 to 7 934 in FY09. This was achieved by not renewing the contracts of temporary employees, and a number of salaried staff took voluntary separation packages. There were no retrenchments. The majority of TSAM employees are based at the manufacturing plant at Prospecton, and the balance at the marketing offices in Sandton. 38 Toyota South Africa Motors Sustainability Report 2010 Success in a competitive business such as automobile manufacturing cannot be achieved without a motivated, committed and unified workforce that is focused on achieving common objectives. TMC set the tone with the Guiding Principles and the Toyota Way, and TSAM carries these values through into its daily operations, which is borne out by the company’s ongoing success. Total workforce by employment type, employment contract and region Payroll area FY08 FY09 JHB: Salaries 668 645 JHB: Hourly 322 351 DBN: Salaries 1 908 1 746 DBN: Hourly 6 113 5 129 Contractors1 78 63 Grand Total 9 089 7 934 1 Refers to contractors paid through a third party (eg. agency) or invoice Table 18 Employee turnover Staff turnover in FY08 was high at 21%, but dropped to 12% in FY09. The highest turnover rate occurred in the male 26-30 year age group. This is lower than the employee turnover rate experienced by other Original Equipment Manufacturers (OEMs). However the high turnover rate among technical experts, specialist and designated artisans in particular, remains an area of concern. This must be seen in the context of an increasing skills shortage being experienced in South Africa generally, especially in terms of technical expertise (artisans and engineers). Total number and rate of employee turnover by age group and gender for FY08 400 350 300 250 200 150 100 50 0 36 Figure 44 308 70 352 44 267 25 123 21 18-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 99 Age group 7 Female Male 89 9 75 5 70 6 86 Benefits and remuneration The Motor Industry Bargaining Council sets the local entry-level minimum wage for each region in South Africa. In FY08 the TSAM minimum wage for Skill level 1 was R29.33 per hour, which is 56% more than the local entry-level minimum wage. In FY09, this increased to R31.53 per hour, also 56% more than the local equivalent. Ratio of TSAM entry-level wage to local minimum wage 56% higher than minimum wage Table 19 FY08 FY09 Comparison of TSAM entry-level wage to local minimum wage at significant locations of operation TSAM minimum wage for skill level 1 Local* minimum wage for comparable skill level 56% higher than minimum wage FY08 FY09 R29.33 R31.53 R16.43 R17.66 *There may be regional differences for ‘local minimum wage’; this report uses ‘Highveld Region’ data. Table 20 Total number and rate of employee turnover by age group and gender for FY09 400 350 300 250 200 150 100 50 0 16 Figure 45 65 33 168 29 105 20 67 7 18-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 81 Age group 9 Female Male 96 10 89 11 74 4 86
Full-time employees enjoy a 13 th cheque bonus, Masibambane agreement bonus (paid on achievement of a certain production or sales related activity), provident fund and medical aid. TSAM has introduced a defined contribution scheme for all new employees that join the company. This scheme pays a contribution to an individual’s account every month, which is then invested, the returns of which are credited to the individual’s account. Existing employees can choose to switch to this scheme, or remain on the old defined benefit pension scheme, which pays out a fixed amount to the retiree every month according to the numbers of years worked and salary at retirement. Recruitment Formal recruitment processes are in place for internal appointments, external appointments and temporary staff. These procedures have timeframes and turnaround times, all of which are linked to defined tasks, communication routes and requirements. Performance management TSAM has rolled out a performance management process over the last three years. The process started in FY08 with salaried employees in Bands 10-11 and upward receiving performance and career development reviews. Reviews were introduced to Bands 8-9 and upward in FY09, hence the percentage of employees receiving reviews doubled between FY08 and FY09. Reviews will be extended to Bands 5-7 in FY10. The goal is for 100% of salaried employees to receive performance and career development reviews in FY10 and beyond. Percentage of salaried employees receiving regular performance and career development reviews FY08 FY09 34.5% 70.8% Table 21 Overtime Benefits Permanent employee (salaried) Stipulated work hours per week and average hours worked overtime in production Overtime hours worked The majority of TSAM employees are based at the manufacturing plant at Prospecton, Durban. Permanent employee (hourly) Temporary employee (hourly) SOCIAL ASPECTS Temporary employee (salaried) Retirement fund ✓ ✓ ✓ x Medical aid ✓ ✓ ✓ x Bonus – 13 th cheque ✓ ✓ ✓ x Leave ✓ ✓ ✓ ✓ Hampers – year-end x ✓ ✓ x Canteen – subsidy ✓ ✓ ✓ ✓ Staff car purchase ✓ ✓ ✓ ✓ Study assistance scheme ✓ ✓ x x Lease vehicle ✓ ✓ x x High school assistance ✓ ✓ x x Tertiary bursary ✓ ✓ x x Group personal accident ✓ ✓ ✓ ✓ U.I.F. ✓ ✓ ✓ ✓ Long service award ✓ ✓ x x Incentive bonus ✓ ✓ ✓ x TSAM has a formal overtime policy for salaried and hourly staff. TSAM has a stipulated 40-hour work week, with an average of six hours per person per week spent on production overtime. Reduced production in FY09 resulted in a reduction in overtime hours worked. FY08 FY09 Item No. of hours Employees No. of hours Employees Total salary overtime hours worked 385 053.90 2 864 204 838.04 2 625 Total hourly overtime hours worked 1 567 223.97 7 715 1 047 304.56 6 016 Total overtime hours worked 1 952 277.87 10 579 1 252 142.60 8 641 Average weekly overtime hours worked 37 543.81 11.27 24 079.67 14.35 Table 23 Table 22 Percentage of employees not managed on an hourly basis with overtime compensation schemes FY08 FY09 Total employees 10 871 9 039 Total S5-10 2 864 2 625 % Employees non-hourly with overtime schemes 26.35% 29.04% Table 24 The variance in total employee numbers quoted in Tables 23 and 24, and Table 18 on page 38 is due to the fluctuation in employee numbers over the reporting period. Toyota South Africa Motors Sustainability Report 2010 39
Page 2 and 3: About this Report This is the sixth
Page 4 and 5: MESSAGE Executive message from the
Page 6 and 7: SPECIAL FEATURE Toyota South Africa
Page 8 and 9: SPECIAL FEATURE 30 years of market
Page 10 and 11: ABOUT THE COMPANY About the Company
Page 12 and 13: ABOUT THE COMPANY The Toyota Way is
Page 14 and 15: ABOUT THE COMPANY The Toyota Code o
Page 16 and 17: ENVIRONMENTAL ASPECTS Figure 8 Glob
Page 18 and 19: ENVIRONMENTAL ASPECTS The TSAM Four
Page 24 and 25: ENVIRONMENTAL ASPECTS Energy/Global
Page 26 and 27: ENVIRONMENTAL ASPECTS Reduction of
Page 28 and 29: TMC’s commitment to hybrid techno
Page 30 and 31: ENVIRONMENTAL ASPECTS Sandton waste
Page 32 and 33: ENVIRONMENTAL ASPECTS Atmospheric Q
Page 34 and 35: ENVIRONMENTAL ASPECTS Environmental
Page 36 and 37: ENVIRONMENTAL ASPECTS Risk reductio
Page 38 and 39: SOCIAL ASPECTS Customer satisfactio
Page 42 and 43: SOCIAL ASPECTS Human rights TSAM’
Page 44 and 45: SOCIAL ASPECTS TSAM’s Graduate Tr
Page 46 and 47: SOCIAL ASPECTS SPECIAL FEATURE Reco
Page 48 and 49: SOCIAL ASPECTS Fatalities There wer
Page 50 and 51: SOCIAL ASPECTS Occupational health
Page 52 and 53: SOCIAL ASPECTS Relations with Busin
Page 54 and 55: SOCIAL ASPECTS is made to assist in
Page 56 and 57: SOCIAL ASPECTS of the Kavango-Zambe
Page 58 and 59: Independent Assurance Statement To
Page 60 and 61: Global Reporting Initiative Index G
Page 62 and 63: Glossary of terms and acronyms 3R R

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