Adcock Ingram Integrated Report 2018

PROMOTING EMPLOYEE HEALTH ANDWELLNESS Promoting health and wellness has a positive influence on our employees’wellbeing and productivity, at work and outside. Adcock Ingram offers an Employee Assistance Programme (EAP) in conjunction with ICAS that is open to all permanent and contract employees, providing professional and confidential counselling services, designed to assist with personal distress that may or may not impact on productivity or work performance. These anxieties include, but are not limited to, health, including mental health, relationships and family, financial and legal, alcohol and substance abuse, grief and bereavement, trauma and critical incidents. Stress and relationships issues are the two most prominent concerns listed. The overall engagement rate*, which includes uptake of all services provided by ICAS, amounted to 27.8% during the year under review, compared to 30.4% during 2017 but is still above the ICAS average of 19.1%. Plans are in place to promote these services continually to all employees. * Engagement rate is made up of individual cases, group interventions participants, and profiled eCare users who are internet users who ask questions and access content. HEALTH AND SAFETY Adcock Ingramhas onsite clinics with qualified health practitioners at our three factories as well as in Midrand.The onsite clinic’s focus is meant to be 70% towards occupational healthcare and 30% towards primary healthcare, however the current situation indicates that the clinics are being used for a significantly higher amount of primary healthcare purposes in comparison to occupational healthcare issues. u u Primary healthcare includes: respiratory, cardiovascular, digestive, UTI, skin, wellness, hypertension, diabetes, asthma, epilepsy, tuberculosis, and HIV u u Occupational healthcare includes: periodic assessments (pre-employment, post-employment and exit), vision screening, first aid, disability and injuries on duty. TRANSFORMATION, DIVERSITY AND INCLUSIVITY Adcock Ingram is committed to uphold human rights, which includes ensuring that all employees and people we deal with are treated with dignity and respect. We value diversity and inclusion and are committed to non- sexism and non-racism across our policies, practices and daily operations. This journey is underpinned by our Company values and solid transformation strategy to ensure the sustainability of our efforts and impact thereof. PROGRESS ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT ACT Compliance with the Broad-Based Black Economic Empowerment Act (B-BBEE Act) ensures that we contribute meaningfully towards national priorities to transform the industries in which we operate, to make the economy more inclusive. Under the guidance of the Social, Ethics andTransformation Committee (SET) we have continued to improve on our implementation plan for a sustainable contribution to the transformation agenda. As such the B-BBEE status as independently assessed by Empowerlogic in November 2017 resulted in a Level 3 rating. EMPLOYMENT EQUITY Employment Equity is a national imperative, legislated through the Employment Equity Act. Compliance requires that we put in place systems to enable a diversified and equitable workplace that continues to reflect national priorities. There has been extensive work done to ensure integrated and sustainable Employment Equity Act compliance, and consultation takes place across the business via the National Transformation Forum and site forums in all our divisions. TALENT MANAGEMENT As a forward-looking organisation, Human Capital is considered integral and a key ingredient to Adcock’s Ingram success. By ensuring that we have the best people in the right roles and a healthy environment, we empower our people to create better futures for themselves and the business. To this end we value individual and collective performance. Key to the sustainability and future of our business is managing the succession pipeline, in particular, of senior and executive management. Our aim is to ensure a 2:1 succession cover ratio of the leadership level where possible, meaning that each leader has at least two potential successors, one who can fill the position within a short timeframe and the second in the medium– to long-term. “Growing our own timber” is our business mantra. Employees are encouraged to develop their capabilities in line with the business growth plan. In the absence of skills within the talent bank, this expertise is acquired externally. EMPLOYEE RELATIONS We are committed to a workplace free from discrimination, compliant with all the relevant labour laws, and are resolute on transparency and open communication. This ensures that workplace grievances are avoided or speedily resolved. The Company has maintained a low referral rate to the CCMA and Bargaining Council. The Heads of Human Capital from the respective sites engage with the unions regarding various bargaining unit employee related matters as well as wage negotiations. This year a two-year wage agreement was concluded between the Group and the union, effectively agreeing on the increases for 1 July 2017 as well as 1 July 2018. 41% of employees in South Africa belong to a bargaining unit, with the union membership split as follows: CEPPWAWU 40% GIWUSA 39% SACWU 13% Other 8% During the year, Giwusa members undertook industrial action regarding a revised disciplinary procedure.The 10-day strike was resolved through a constructive mediation process. The strike was confined to the Clayville site and business contingency plans were in place to minimise the disruption of operations. Regrettably 2 989 man days were lost due to this industrial action. THE YEAR IN REVIEW Highlights   Improvement in the:   Disability profile; and   Number and gender diversity of participants in the owner-driver scheme.   Increase in skills development spend.   100% absorption of talent pipeline including apprentices, disabled learners and graduates.   Achieved B-BBEE Level 3 rating.   A 2-year wage agreement negotiated with the Bargaining Council.   A decrease in staff turnover from 10.4% to 10.1% against an industry norm of 11.2%. ADCOCK INGRAM  Integrated Report 2018 37