Job creation

OUR MANAGEMENT APPROACH

South Africa has one of the highest rates of youth unemployment in the world. This issue has a direct impact on the group, particularly in those parts of the business where service orientation is
most critical. The lack of job opportunities means that young people are not able to acquire employable skills, which in turn creates a skills deficit when an employment opportunity arises.
This impacts business performance and creates considerable formal and on-the-job training needs that have to be addressed through training and personal development programmes. High levels of youth unemployment also pose a potential threat to social cohesion.

Initiatives undertaken in response to this issue fall broadly into two categories, those which are closely linked to the group’s human capital development approach and which focus on bridging potential employment candidates into the workplace, and enterprise development schemes, which target job creation and the development of small and medium-sized enterprises to generate future employment growth.

OPERATIONAL STRATEGIES AND INITIATIVES

In the Vehicles businesses, the ability to draw new entrants into the business from the available skills pool is critical for growth. Many of the group’s training programmes target the recruitment and training of potential employees who otherwise lack the ability to access full-time employment successfully. Youth development programmes are in place to employ people from the potential skills pool. An artisan training programme is also in place whereby artisans are provided
with on-the-job training, and this recruits approximately 75 individuals each year.

The ‘Spotters’ programme in Auto Pedigree also targets young unemployed individuals – see the boxed text overleaf.

The Car Rental business has adopted a proactive enterprise development approach which seeks to maximise owners’ equity and foster creditworthiness and cash-flow viability in the businesses which are supported, by contributing towards capital equipment. Through enterprise development initiatives, the business has established five black-owned car rental agencies in Bela Bela, Mafikeng, Mogale City, Thohoyandou and Newcastle in South Africa.

To ensure the success of the businesses supported, the company facilitates training programmes, technical and other assistance, provision of expert or specialised advice and information and guidance on running a successful car rental company. Total capital investment per annum in the five black-owned agencies which have been created is R8,8 million.

Job creation efforts in the division also resulted in the creation of 107 additional permanent, entry-level jobs between July 2013 and May 2014 for drivers and car park attendants, through insourcing previously outsourced services.

In the Aftermarket Parts business, apprenticeship programmes and learnerships have been offered to new labour market entrants. On-the-job shadowing is used to create interest and support the ability of the business to attract potential employees.

In the Logistics businesses, this issue is most critical in the South African context. As in other areas of the business, job creation initiatives are typically linked to training and/or enterprise development programmes.

An enterprise development initiative with Mzanzi Transport was begun in South Africa in 2012 in conjunction with an owner driver, whose business has grown from one truck in 2012 to ten trucks currently. The success of the initiative is as a result of constant engagement between Logistics Africa and the beneficiary, as well as the support provided to the beneficiary by Imperial Logistics.

Support given by Logistics Africa includes financial support, through an interest-free loan of R1,6 million payable over five years, business support in terms of mentoring and coaching, and the opportunity to sub-contract for substantial contracts through preferential procurement.

Added to this, the dedication and the willingness to develop business skills and acumen by the beneficiary has been a major factor in the growth and success of the business.

The division has also put a bridging programme in place for graduates, in partnership with the City of Ekurhuleni and the Economic Development Department, with the objective of enabling unemployed graduates to enter the job market.

The purpose of this project is to bridge the gap between unemployment and employment, by successful skills development initiatives which provide graduates or learners with solid life skills and real work-readiness skills. The target group for this project is unemployed graduates in the Ekurhuleni Municipality. Graduates embark on a programme of 12 months duration. They sign a fixed-term contract with the city and Logistics Africa provides workplace experience and coaching. Funding for the programmes was obtained from TETA and all the interns were placed on a transport supervision learnership.

The programme began in September 2013 and Logistics Africa placed 19 interns in positions within their various operating companies. The interns also attended a two-day work readiness programme run by the company ‘Free to Grow’. This programme focuses on preparing the interns to enter the world of work.

CASE STUDY

UNJANI CLINIC INITIATIVE PROGRESS REPORT

THE UNJANI CLINIC INITIATIVE
	The Unjani clinic concept has been improved over the last year based on operator feedback.

As outlined in Imperial’s 2013 report, Logistics Africa has created an entrepreneurial concept – the Unjani clinic – to create jobs and simultaneously deliver improved healthcare to disadvantaged communities close to the business’ areas of operation.

Each clinic creates two to three jobs initially (a professional nurse, clinic assistant and security/maintenance provider). When patient numbers exceed 450 per month, additional resources may be required. We plan to open another 36 clinics over the next three years (to June 2017), which will create between 72 and 108 jobs for people in the communities in which we operate and significantly improve the quality of primary healthcare.

To support the ongoing work of the clinics, Imperial has established a non-profit company, Unjani Clinics NPC, with a dedicated team of six employees. Each clinic is owned and operated by a professional nurse, selected on the basis of rigorous criteria and interviews.

The initiative has been structured in a way which will deliver economic, health and social benefits to the community, while being commercially sustainable. The development of the clinics, for example, is supported by professional enterprise development agreements and a support manual which will assist existing and new clinics with day-today operational issues. Computerised systems (for example patient management, financial and ordering systems) have been investigated for implementation over the next period, to improve controls and operating efficiencies. Improvements to the current clinic structure have been made, based on feedback from existing owner/operators and these changes will be rolled out as new clinics are established.

Two significant challenges are ongoing training and regulatory compliance. Training programmes have been developed and training providers are being sourced to assist current and future operators with continued professional development. In terms of regulatory compliance and licensing, we continue to engage with the Department of Health to obtain clarity and recognition for the Unjani Clinic programme. We plan to open 16 new Unjani clinics by June 2015 in Ekurhuleni, the City of Johannesburg and the City of Tshwane, creating between 32 and 48 jobs and providing approximately 20 000 patients with a better quality of primary healthcare. Performance targets for the Unjani Clinics are driven by the patient numbers visiting the clinic – these targets are 180 patients per month on average for the first year of operation, 250 per month on average in the second year and 350 per month on average in year three, increasing by 50 patients each year to year five. We also measure and manage the patient consultation cost and products utilised as part of the service. All performance measures are managed and reported on monthly. At existing clinics, which have been operating for just less than two years on average, patient target numbers are being met, and in some cases exceeded. Across all the clinics, 250 patients are being seen per month and patient feedback has been very positive.

Our aim is to roll out 36 new clinics by June 2017, a target we are confident of meeting

Unjani clinics planned for 2015 will provide high quality healthcare for approximately 20 000 patients in communities as well as between 32 and 48 jobs for operators