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SUN INTERNATIONAL ANNUAL REPORT ’10
The automation of the Performance Management System (PMS) – ‘SunSpec’
– was completed and is now being rolled out across the group.
Going forward, plans are still in place to introduce the LMS by June 2011.
The delivery of Manager and Employee Self-service within the PeopleSoft
application will commence during the latter part of the new financial year.
The e-recruitment site on our corporate website for external and internal
applicants continues to provide benefits to our talent acquisition strategy.
UNION RELATIONSHIPS
The group concluded a long term agreement with the SA Catering and
Commercial Allied Workers Union (SACCAWU) in South Africa and
one-year agreements in Botswana and Swaziland (with the respective
recognised unions) in the year under review. The agreements improved
wages and other terms and conditions of employment of employees.
Negotiations are in progress in Zambia, Lesotho and Namibia.
The current minimum TCOE remuneration for unionised employees
compares favourably with other leading sectors in the economy.
The group concluded two additional agreements with SACCAWU granting
the union full recognition and bargaining rights at The Table Bay and Sibaya
Entertainment Kingdom. Representatives from all unionised units (both
management and full-time shop stewards) meet at a Central Forum on a
quarterly basis to negotiate terms and conditions other than wages and
employment benefits. Amongst others, parties are currently negotiating
night transport arrangements to ensure safety of employees when they
travel from work to their homes at the end of late night shifts.
Management of the wage strike in South Africa
On 4 December 2009, SACCAWU members embarked on a seven-week
strike at our unionised South African properties. As a result of the high
levels of violence and intimidation, we instituted a lockout at GrandWest,
Boardwalk and Fish River Sun on 4 December 2009, at the Wild Coast
Sun on 11 December and the other properties on 17 December.
An escalation of unlawful acts in Cape Town resulted in our obtaining
an interim order at the city’s Labour Court in respect of GrandWest on
15 December 2009.
On 31 December, SACCAWU staged two marches at Sun City and the
Wild Coast Sun where memoranda to management were handed over to
highlight the wage demands. Management responded to the issues
raised and committed to continue negotiations with SACCAWU to reach
a final settlement. These negotiations culminated in a two-year wage
agreement on 22 January 2010.
The agreement stipulated a wage increase of 8.75% in the first year
of agreement, effective from 1 July 2009. In the second year of the
agreement, wages increased by the Consumer Price Index measured from
1 July 2009 to 30 April 2010, plus 1.75% with a guaranteed minimum
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increase of 7.75%. This is the first time both parties concluded an
inflation-linked increase and is a very positive base for the group and the
union going forward.
The use of scheduled employees is important to our business model that
must respond to the demand patterns of our customers. Our ‘scheduled
employees’ are in fact permanent employees entitled to the same
remuneration (on a pro-rata basis) and benefits as their core counterparts.
SACCAWU has, however, been very negative on the use of scheduled
employment. To overcome this, we agreed to move a number of our
current scheduled employees to core employment status, in particular
within those job categories which are currently staffed 100% with
scheduled employees. This has been implemented.
Other employment conditions agreed include the following:
Extension of the bargaining unit
Increase on night shift allowance
Increase on home ownership subsidy scheme
Improved education assistance scheme, and
Increase on full time shop stewards’ allowance
On the eve of the signing of the wage agreement, 57.5% of striking
employees had signed the group’s offer to return to work and, overall, the
strike’s impact on our operations and customers was limited.
We launched a revamped relationship building initiative to restore and
sustain our relationship with SACCAWU.
CHANGE MANAGEMENT
The ability to manage change has become a key competence and is an
integral part of Project Siyakha. To ensure our company is adaptable,
flexible and competitive and also remains the benchmark for long term
growth and sustainability, competency building initiatives for all levels of
employees have been put into place. The overall objective is to ensure
that all business transformation initiatives achieve the desired result.
Change contextualisation sessions have been conducted at some of our
units with the Executive Operating Committee, including, among others,
Carousel, Sun City, Boardwalk, Flamingo and Carnival City. Change network
training has started, with Carousel already completed and other units
being scheduled.
Sustainability initiatives include teaser campaigns sent to selected audiences,
establishment of change networks, conducting of assessments after various
change initiatives have been completed and circulation of a Futures
Perspective document which indicates forthcoming business changes that
enables awareness and preparation for changes which will be implemented
in the future.