Human rights are central to Barloworld’s legitimacy and are principally addressed in the group’s code of ethics. In this regard human rights are covered in the constitutions, legislation and common law of countries in which Barloworld operates. Barloworld is also a signatory to the UN Global Compact of which Principles 1 and 2 address this issue.

In addition, internal policies, procedures and practices prohibit a violation of human rights. This aspect is also covered under the group’s approach to occupational health and safety.

All employees and stakeholders are included in this protection and are also expected to conduct themselves accordingly.

People, and empowerment and transformation, comprise two of the group’s five key strategic focus areas and the group strives to ensure that it acts as a responsible custodian for current and future generations on sustainability issues, that its business strategies are legitimate in the eyes of its stakeholders, and that it adopts a caring approach towards sustainable socio-economic development in the countries in which it operates.

No specific record is kept of investment agreements that include human rights clauses as any such agreement would necessarily comply with applicable legislation and fulfil the standards reflected in Barloworld’s values, internal policies and procedures. Full due diligence processes are conducted for any significant investment and human rights issues are covered in this process.

A similar approach applies to suppliers and contractors. Those that do not comply are reviewed and ultimately terminated in the event that the shortcomings cannot be addressed. The group sources the majority of its products from leading global OEMs with established and entrenched human rights policies and practices.

In South Africa, the BBBEE status of suppliers and contractors is closely reviewed.

Breaches of human rights can be addressed through the applicable legal system, internal procedures including the anonymous “Ethics Line” call centre which is entrenched in Barloworld. In addition, employees may use established grievance procedures which prohibit victimisation and may also seek union or industry assistance in this regard (refer to page 62 for further details on the Barloworld Ethics Line).

All breaches of human rights are investigated and appropriate action taken in terms of the relevant policies and disciplinary procedures. Every incident is reported together with the action taken and the outcome.

The urban and industrial locations of Barloworld operations ensure that they do not negatively impact the communities within which they are located. All operations comply with applicable legislation and the establishment or exit of business premises does not significantly affect specific communities. In these circumstances there are no focused initiatives that assess and manage the impact of Barloworld’s operations on communities other than the ongoing review and commitment to legal compliance and responsible corporate citizenship.

In addition to the prevailing legislative environment, internal policies and procedures throughout Barloworld prohibit corrupt behaviour. Criminal behaviour is not tolerated and formal charges are laid against a perpetrator.

Facilitated by legal practitioners, structured sessions take place with group and divisional executives to review all business conduct and ensure compliance with legislation, internal values, standards, policies and procedures.

Induction and other staff training initiatives address these aspects as components of required and expected behaviour. In South Africa, such issues are also addressed in the consultation forums required in the employment equity and workskills planning process.

In addition to the group’s anti-fraud policy, the “Barloworld Group Policy On Dealing With: Public Officials, Agents, Distributors, Intermediaries: Trade Restrictions, Export Controls and Sanctions” was distributed throughout the group and all staff are required to comply with this policy.

These policies highlight the group’s “Zero Tolerance” towards fraud, corruption and related activities. They also protect employees who raise serious concerns, relating to such unacceptable conduct, against victimisation. This approach applies in all regions where the group operates and associated risks are investigated and appropriate measures taken prior to investing in regions where such practices may be more prevalent than in others.

In order to ensure that conflicts of interests are avoided, staff are required to formally declare any interests in contracts and/or businesses, whether direct or indirect.

No funds were paid to political parties during the year and it is not Barloworld’s policy to support any political party. The group and its divisions participate in relevant industry forums and appropriate industry lobbying activity and policy development. These activities are non-political.

Equality
• Addressed in code of ethics and related policies

Barloworld subscribes to the principle of equal opportunity and embraces diversity in all its operations and in all geographies in which it operates. This commitment is explicit in the group’s codes and values framework and extends to the removal of any unfair discrimination based on gender, sexual preference, race, religion or disability. Empowerment and transformation are included as one of the group’s five strategic focus areas.

The two cases of alleged age discrimination mentioned in the 2008 report have been withdrawn by the complainants. In Handling there were two cases of alleged discrimination based on disability. One has been resolved and the other, in the US, is in the process of being defended. A discrimination matter in Logistics was addressed in terms of the division’s disciplinary procedures.

Employment equity, transformation and empowerment targets, which include race, gender and disability, are in place in South Africa in line with local legislation, and localisation and gender objectives are set for non-South African operations. In South Africa and other southern African countries where required by authorities, employment equity plans are submitted as well as progress reports against such plans.

These plans specifically set out employment targets which address race, gender and disability. In addition, in South Africa, the DTI’s BBBEE scorecard sets out specific targets and levels to be attained in order for specified levels of accreditation to be reached. All Barloworld operations in South Africa have such scorecards.

Women's empowerment An initiative focused on supporting women in management is being progressed by Group executive: Global human resources and transformation, Khanya Kweyama, is one of many initiatives in the group aimed at building human capital and managing diversity. Initiated in 2008, this process is aimed at inspiring and retaining quality female managers and promoting gender equality in the Barloworld group. The focus this year has been on providing inspired leadership by sharing more widely the experiences and advice of a number of popular and successful female executives who currently act as role models and coaches across the group. An event was convened at Barlow Park to coincide with the South African national Women’s Day in August to facilitate sharing experiences as women in the workplace.

On an ongoing basis the group reviews its remuneration practices and is committed to removing unfair discrimination in this regard. In South Africa pay differentials are disclosed in terms of employment equity legislation. Discrimination or victimisation in the group is addressed through established processes, including disciplinary and grievance procedures which may include union or industry support, through the Barloworld Ethics Line, or the prevailing legal system.

	Group – Employees by employment category and gender
	2009			2008*
Category	Male	Female	Total	Male	Female	Total
Board	5		5	6		6
Executive	25	2	27	24	2	26
Senior management	70	8	78	76	10	86
Middle management	1 910	686	2 596	1 883	599	2 482
Skilled upper	6 580	2 253	8 833	7 733	2 109	9 842
Semi skilled/apprentices/trainees	5 306	1 483	6 789	4 913	1 848	6 761
Labour/unskilled	447	143	590	1 026	242	1 268
Total	14 343	4 575	18 918	15 661	4 810	20 471
* 2008 Logistics off-shore statistics restated to include 803 employees from Swift and Flynt.

Disability confidence policy Championed by the group’s disability concerns ambassador Thuli Matlala, Barloworld has embarked on a process of rolling out a disability confidence policy which focuses on: • Sensitising the workplace to various disabilities; • Providing information on relevant legislation and policy; • Placement, equity and the provision of reasonable accommodation; • Assisting with the formulation of workplace policies to address disability and non-discrimination; • Politically correct terminology regarding disability; • Advice on the accessibility of the built environment; • Access to information and communication for persons with hearing loss; and • Disability etiquette.

Empowerment and transformation in South Africa
• Achieved at least DTI Level 4 rating for South Africanoperations
• A target of DTI Level 3 to be achieved by all South African operations by end 2011
• Employment equity targets also set in terms of relevant legislation
• Three major business units have black CEOs
• Focus on preferential procurement

BBBEE in South Africa is aimed at broadening participation in the economy and sharing its benefits to include individuals who were excluded and disadvantaged in the past on the basis of race. Barloworld believes that the successful implementation of BBBEE will underpin the future sustainable development of the country and its people as well as ensuring the ongoing success, competitiveness and sustainability of the group. Accordingly, it is one of the five strategic focus areas of the group. In 2008 Barloworld implemented a BBBEE equity transaction at holding company level which resulted in an effective 29% empowerment of its South African businesses in terms of the BBBEE Codes of Good Practice. Participants included strategic black partners, black management, South African employees, an education trust and community service groups.

The General Staff Trust established in terms of the transaction has allocated Barloworld shares to its members. The General Staff Trust and the Black Non-executive Directors Trust have received two sets of dividends since inception.

Trustees have been elected for the Black Managers Trust whose members’ shares vest over a period of time.

The Barloworld Education Trust is in the process of selecting bursars for the 2010 academic year. The trust has also received two sets of dividends.

Barloworld’s strategic black partners continue to make a significant contribution to Barloworld, particularly those directly involved in the automotive, equipment and logistics operations. In line with the group’s stated transformation and empowerment objective for 2009, all Barloworld’s South African businesses have achieved at least a DTI Level 4 rating.

Barloworld’s objective is that all its South African business units achieve at least a Level 3 rating by the end of 2011. Progress on the various elements of the scorecard varies by business unit.

Given the nature of the group’s South African ownership structure and its BBBEE transaction, the business units all score highly under the ownership element. Similarly the business units achieved full scores under the enterprise development (ED) and social economic development (SED) elements with their activities in this regard being supported by Barloworld Siyakhula and the group’s South African Corporate Social Investment programme respectively. These centralised programmes assist the business units in meeting their investment targets of 3% and 1% of net profits after tax for these elements of the BBBEE scorecard.

Barloworld Education Trust (BET) One of four trusts established when Barloworld concluded a major empowerment transaction at holding company level in 2008, the BET’s aim is to facilitate broad based black economic empowerment through education. The BET is currently reviewing bursary applications for support in 2010 to study in disciplines that are in line with the business and development needs of the country: Engineering: industrial, mechanical, mining, civil, electrical; supply chain management, agronomy, information technology, marketing (brand management) and risk management. The BET is managed by a board of trustees, the majority of whom are independent persons. Prof Pitika Ntuli, a well known academic (previous dean of students and professor of fine arts at the University of Durban- Westville and deputy vice-chancellor of the University of Durban-Westville), a writer, poet and sculptor, is the current chairperson of the BET board of trustees.

Preferential procurement and the support of local emerging businesses also varies by business unit, and their ability to do so is influenced by the nature of their products and services as well as the BBBEE status of represented principals/OEMs. Scores in this regard range from 18.23 (out of 20) to 9.66. Good progress is being made under the management and control element and in this regard, equipment South Africa, motor retail southern Africa and the logistics division continued to be managed by black CEOs. Special focus is on the employment equity and skills development elements of the scorecard. These activities are complemented by Employment Equity legislation that requires targets and workskills plans for all operations. Focused recruitment and extensive training and development activities target previously disadvantaged employees.

The community service group partners who participate in Barloworld’s empowerment transaction remain the DEC Investment Holding Company which addresses disability empowerment concerns, the Shalamuka Foundation, which ensures the sustainability of the largest whole school development programme in Africa, and Ikamva Labantu Empowerment Trust, which provides for the needs of disadvantaged communities.

Ikamva Labantu multi-purpose centres Ikamva Labantu’s communitybased activities have addressed the social, economic, educational and health and nutritional needs of children, youth, women and seniors over many years. In order to deliver an integrated, holistic service, the organisation uses centralised community hubs, or multi-purpose centres, as bases. These centres offer: • Senior club facilities; • Crèche and after school care facilities; • Food gardens; • Youth programmes; • Psycho-social services; • Home-based care; • Educational and capacity building assistance; • Recreational and sporting facilities; • Life skills training; and • Provision of transport to and from the activity centres. Ikamva Labantu currently provides services from five centres in the Western Cape province of South Africa.

Barloworld Siyakhula
Barloworld Siyakhula operates a R34.6 million fund that supports black-empowered companies in the small and medium enterprise (SME) sector and assists Barloworld’s South African operations by introducing diversity and empowered partners into their supply chains.

Supplier diversity is an ongoing and strategic business activity that seeks to bring sustainability into the supply chain and ensure that transformation takes place in the right places, at the right times and with the right people. It also boosts the Barloworld value chain, both upstream (shareholders and suppliers) and downstream (distributors and customers), ensuring that the value of supplier diversity is mutually beneficial in terms of the BBBEE scorecard. Barloworld Siyakhula, the group’s enterprise development initiative, is charged with making this happen.

In the short term, the focus on supplier diversity creates value for the group by: ensuring cost effective compliance with BBBEE and sectoral codes (specifically enterprise development and preferential procurement); investing in the development and growth of sustainable and empowered small and medium enterprises; minimising reputational and legislative risk and reducing compliance administration for all divisions.

In the longer term, Barloworld Siyakhula should become a self-funding asset within the group, continuing to ensure that Barloworld is relevant in a transformed business world and contributing to the socio-economic stability of South Africa.

Barloworld is dedicating resources to grow and develop enterprises and businesses into competitive, commercially sustainable enterprises.

For further details visit: www.barloworldsiyakhula.com.

Socio-economic development
Barloworld views corporate social investment (CSI) as a vital response to the socio-economic development (SED) imperative to empower previously disadvantaged individuals and uplift communities in South Africa, to the benefit of all. The group’s South African operations target 1% of their profits after tax for social investment. The group has allocated a total of R75 million to social investment initiatives over the past five years (2005 – 2009), the majority of it in South Africa and much of it through a centralised programme, although a number of Barloworld divisions also make direct contributions to local initiatives which add community value or which have an industry orientation.

The centralised programme is implemented primarily through the Barloworld Trust and works in development partnerships with a number of carefully selected non-governmental organisations (NGOs). It seeks to strategically align with the key social development needs highlighted by government and the group’s stated business objectives, for example facilitating the development of scarce skills which require a university entrance pass in mathematics and science, facilitating transformation and empowerment, and building awareness of the need to address climate change at community level.

Focus is on education and skills development, leadership development, poverty alleviation and job creation, the empowerment of youth and women, health and welfare – with the emphasis on orphaned and vulnerable children, disability concerns, HIV/AIDS and palliative care for the terminally ill, and the environment. Corporate programmes include the Maths and English Programme of the Independent Schools Association of SA (ISASA), Penreach, Teach South Africa, the Rural Education Access Programme (REAP) and READ. Barloworld supports the Africa Leadership Initiative (ALI), The President’s Award for Youth Empowerment and loveLife’s Connected! programme. The group enjoys strong working relationships with the WWF and the Endangered Wildlife Trust and supports Food and Trees for Africa in their efforts to “green” townships and sequester carbon.

It partners with the National Business Initiative, The Business Trust and Ikamva Labantu to address its poverty alleviation and job creation objectives. The Barloworld Artworks programme facilitates the transfer of business skills to arts organisations through mentorship. The group spent 87% of its CSI in South Africa and the remainder in the rest of the world. For further information on Barloworld’s corporate social investment activities over the past five years, visit: www.Barloworld.com/ content/sustainability.

Barloworld partners with Noah to assist children impacted by HI V/AI DS in South Africa It is anticipated that by 2050 the AIDS pandemic will be one of the most significant factors to have shaped humanity in this century. South Africa is one of the most severely affected countries in the world. As new HIV/AIDS infections are mainly heterosexual, sexually active young adults, the people who are dying, are primarily the young parents of the country. Noah (Nurturing Orphans of Aids for Humanity) builds the capacity of communities to care for their own orphaned and vulnerable children (OVC), currently assisting over 30 000 children in 101 communities around the country.

Employees
• A group strategic focus area
• Value creation by and for employees
• A comprehensive employee value creation initiative is entrenched throughout the group
• Reduction in employee complement due to economic downturn
• Continued commitment to, and investment into, training and Development

Barloworld understands that its employees are the foundation of the group’s success. Accordingly, “People” is one of the group’s five strategic focus areas. The ability to attract, develop and retain the necessary skills and competencies it requires to implement its value driving strategies and meet its growth objectives remains one of the group’s most vital attributes.

The group is committed to recruiting from the local communities in which it operates. As it predominately operates in developed urban locations, the required skills are available and the majority of the workforce is locally based. This also applies to local subcontracting. In those instances and regions where the required skills are not available, the focus is on expatriate assignments with the commitment to develop a local skills base. There is a small contingent of international assignees.

Critical success factors for employee value creation
The group has identified six critical success factors to ensure optimal value creation by employees and for employees. These are: Clear purpose and direction; Alignment; Inspiring climate; Sustainable competence; Performance management; Structured team forums. These are appropriately implemented throughout the group through a range of interfaces and interventions.

Salient aspects of the critical success factors are:

Clear purpose and direction
Focused interventions and communications ensure that employees in the respective operations understand the priorities and goals of their organisation and their particular roles in achieving these, a process which provides stability and purpose. This fosters a sense of duty and results in commitment and pride throughout the organisation.

Alignment
The alignment of individual roles and activities with key objectives and timeframes is endorsed and supported by mechanisms to access collective wisdom and employee participation. Reward and recognition systems are underscored by appropriate values and structures.

Inspiring climate
Barloworld seeks to provide a caring, equitable and professional environment for employees in which they are motivated to engage and contribute their best efforts to an organisation with which they are proud to be associated.

•	Strong leadership founded in a culture and value system that guides responsible conduct, establishes a fair and equitable environment, and deals effectively with unacceptable conduct.
•	Employee benefits, including terms and conditions of employment, are well structured, competitive and in accordance with relevant legislation. Remuneration is generally in excess of legislated minimum wage levels. However, where industry negotiated agreements and other relevant legislation is applicable, appropriate remuneration is paid in accordance with these requirements. Retirement funding, medical aid, employee wellness and assistance programmes are in place.
•	Defined benefit schemes are limited (refer to pages 105 and 162). To ensure consistency and equity, the global Watson Wyatt job grading methodology is used throughout the group. Benefits provided to employees that are not provided to temporary or part-time employees vary by division and region. In addition to benefits already mentioned, they also include maternity leave, study leave, long–term incentive and retention schemes, disability cover and life cover.
•	Transfer opportunities across departments, companies and regions offer employees opportunities to broaden their horizons by working in different business sectors and cultures. Although hiring is primarily done on a localised basis, Barloworld cannot be regarded as a primary employer in any region.
•	Collective labour relations are constructively managed based on the principle of freedom of association. Trade unions are recognised at appropriate operational levels and the operations covered by specific industry agreements participate in relevant industry forums. There were only 1 772 “employee-days” of industrial action throughout the group during the year. These related to matters in equipment Iberia and equipment South Africa.
•	Effective communication takes place across the organisation through a range of channels, interfaces and interventions, including internet and intranet systems, publications, notice boards, poster campaigns, briefing sessions, induction programmes for new employees and structured team forums. At a group level, information is shared by the CEO on a regular basis through the “Briefing Barloworld” newsletter.
•	Occupational health and safety (OHS) standards are covered by prevailing legislation and Barloworld operations conform to the principles of the International Labour Organisation’s (ILO) Guidelines on Occupational Health & Safety. The group has a philosophy of “Zero injuries or harm to” employees and business units operate under a strict risk management audit protocol. OHS is the direct responsibility of Barloworld’s divisional CEOs, and formal health and safety committees comprising management and worker representatives covering all South African staff. In other regions the applicable laws apply, with staff in Spanish, UK and US operations all being covered. Both the Netherlands and Belgium operations also have such committees in place. During the year no fines or instances of non-compliance were recorded. Employee safety is a primary concern. Conformance with safety rules and procedures is rigorously enforced, including the wearing of personal protection equipment. Operations comply with prevailing legislation in this regard. Formal risk management audit protocols are entrenched throughout the group. These include in depth analysis of occupational health and safety and external verification. Tragically there were three work related deaths during the year as a result of motor accidents. All three instances have been fully investigated and, where necessary, steps taken to avoid future incidents. A number of employee wellness and support programmes are in place, including medical aid schemes and assistance programmes. HIV/AIDS receives particular attention in countries with high prevalence rates, and programmes cover education, prevention, voluntary counselling and testing (VCT) and disease management, including the provision of anti-retroviral medication. All employees are encouraged to take the necessary precautions to prevent infection and to regularly check their status. Currently 108 employees receive HIV/AIDS assistance, 31 from company sponsored anti-retroviral medication schemes, and 77 from existing medical aid schemes. The reduction in the number of employees who know their status is influenced by the rolling three year VCT cycle and reduced counselling and testing was done during the year. It is also significantly affected by the inclusion of handling as a separate reporting entity in South Africa. No testing has taken place in this division since its stand-alone status. Barloworld Equipment has on-site clinics in South Africa and Spain which provide primary health care and occupational health services to staff, including confidential and anonymous counselling and assistance on any issue that could impact on productivity and wellbeing. This includes counselling on various communicable diseases. Automotive’s businesses in South Africa have the Independent Counselling and Advisory Services (ICAS) support system which covers health related issues. Other divisions have appropriate resources. The group proactively introduced measures within its businesses to deal with the H1N1 influenza pandemic. The impact on employees was minimal. In the event of a serious communicable disease, guidance notes would be issued to employees for their protection and that of their families. There are no formal Health and Safety agreements with trade unions although this aspect is regularly included on the agenda of trade union meetings with management in the various operations. There is currently one claim against the company originating in handling for noise induced hearing loss. The company is refuting the claim. There were no other instances which require employees be compensated for health and safety matters.
	Health and safety statistics LTIFR    Fatalities  Occupational diseases  Division  2009   2008 2007   2009   2008 2007   2009   2008 2007   Automotive  0.94   0.58 0.36   1   1 1   Equipment  1.4   1.81 3.73   1 1   4 4   Handling  1.67   1.47 1.7   1   2 5   logistics  1.27   1.67 1.77   2   1 1 Corporate    1.19   Total  1.23   1.34 2   3   3 2   1   7 9   Employees    Employees who know  their status  % who know their  status  % of those tested who  are HIV positive Division  2009   2008   2007   2009   2008  2007   2009   2008 2007   2009   2008 2007   Automotive  6 307   6 478   5 645   3 688   3 308  3 141   58   51 56   4   4   4   Equipment  3 020   3 113   3 188   1 411   2 684  2 684   47   86 84   6   4 4   Handling  414   nr   nr   nr   logistics  1 174   1 446   1 475   846   394  394   72   27 27   8   17 17   Corporate  103   104   235   103   45  163   100   43 70   6   9 3   Total  11 018   11 141*  10 543   6 048   6 431  6 382   55   58 60   5   5 5   The abbreviation ‘nr’ stands for ‘not reported’ * Excludes 440 employees from handling division as testing was not conducted in 2008
•	Freedom of association is formally assured and employees may associate or not with employee representative organisations and trade unions. Barloworld recognises trade unions that are sufficiently representative of employees at the appropriate organisational level. There were no violations of freedom of association and collective bargaining during the year.
•	There is no child, forced or compulsory labour in any Barloworld operation. Such employment would be contrary to the organisation’s values, policies and recruitment practices, and illegal in the countries in which the group operates.
•	Indigenous rights are respected in all operations. No complaints or cases were made against the group in this regard during the year.
•	Generally the security of Barloworld operations and sites is outsourced to reputable third party service providers. Suppliers are investigated on an ongoing basis to ensure that all aspects of their services conform to prevailing legislation and to Barloworld’s ethics and standards, including those pertaining to human dignity and human rights.
•	Responsible societal conduct is a feature of Barloworld’s approach to good corporate citizenship and social responsibility. As far as corporate social investment and other related investments are concerned, the group is committed to adding community value. (see page 84).
•	Employees’ perceptions about the company and its progress in addressing the six critical success factors are routinely monitored and assessed. A structured Individual Perception Monitor (IPM) takes place bi-annually through an anonymous survey. The IPM assessment is on a scale of 1 – 4, with a rating of above 3 considered the Barloworld standard. The results are carefully analysed and shared, and detailed feedback is provided to relevant parties. Where areas of concern are indicated, solutions are developed with employees and remedial action taken. During the current year, all operations except Handling and Equipment Iberia participated in the IPM. Whilst not directly comparable due to differences in the group’s composition and scope of participating operations, the group’s aggregated performance is monitored. Divisions and business units focus on their respective IPM scores. “Employee engagement” is a new survey category introduced during the year to measure employee commitment and loyalty to the group. It is particularly pleasing to note the result in this regard given the difficult trading and operational conditions over the past year. It is also pleasing to note a general improvement in the “Clear purpose and direction”, the “Alignment”, the “Inspiring climate” and the “Structured team forums” categories. The decline in rating for “Sustainable competence” and “Performance management” is a concern. While such results may be understandable given the prevailing operational circumstances and focus on operational continuity, these areas are receiving attention as they are critical aspects for the sustainability of the group.
	Sustainable competence Maintaining the necessary skills and attributes in its human resource base is critical for the group’s ongoing ability to compete in global markets and create value. This objective is achieved through focused recruitment, individual development plans, career planning, training and development programmes, competitive reward systems and careful succession planning. The loss of strategic employees and shortages of intellectual capital are identified as high ranking risks in the group and managed through comprehensive processes. Although operational requirements resulted in a reduction in the number of employees, the group was mindful of the skills required to fulfil its sustainable value creation mandate once economic conditions improve.
•	Training and development is provided through a wide range of internal and external programmes, courses and initiatives that ensure the ongoing development of employees at all levels of the organisation. Individual development plans are prepared and linked to future opportunities.
•	Although 2009 training spend was below 2008 levels, the group remained committed to ensuring its skills pipeline and expenditure was marginally increased in respect of its semi skilled/apprentices/trainees category which increased relatively from 40% in 2008 to 45% in 2009. Proportionate spend on middle management also increased year-on-year. The average hours of training per occupational level also indicates the focus on the skills pipeline with the significant averages being in the middle management, skilled and semi skilled/apprentices/trainees levels. During the year, there was limited board and executive training and the amount spent in this regard was not material. Training programmes address management and technical skills that provide for continued employability and also assist with career endings.
•	On an annual basis an intellectual capital review (ICR) is conducted by the CEO to review the positions and performance of the most senior employees in the organisation, including those in critical positions, to consider future opportunities, development requirements and succession plans.
•	Leadership and executive development programmes have been created in conjunction with leading universities and usually run on an annual basis. These programmes provide unique opportunities to inculcate values and culture and share strategic information with identified talent and future leaders, senior managers and executives. A Leadership Development Programme (LDP) was run in 2009. To date 96 employees have completed the Executive Development Programme (EDP) and 369 the LDP. These programmes also have an important role in addressing the group’s diversity commitments. As an example, the delegate demographics of the recent LDP reflected all divisions, eight countries, 30 males, 5 females and a 32% to 68% breakdown between black and white South Africans. A key aspect of these development programmes is the Action Learning Projects (ALP) which required delegates to address current work-related issues. Formal feedback is given to group executives by the various teams and, in many instances, the projects are incorporated into the relevant operation.
2009 LDP Action Learning Projects • Creating environmental sustainability for Barloworld • What is the optimal kilometre usage and time period before a rental vehicle should be disposed? • Increasing market share in a declining market • To evaluate potential methods and propose a feasible model of delivering appropriate integrated customer   solutions, incorporating all divisional offerings • Partnership between Barloworld Equipment and Barloworld Logistics Supply Chain Management • “Cash to cash cycle”.
•	Technical skills development remained a high priority despite the difficult economic conditions and significant learnership and apprentice programmes are in place to build a strong pipeline of skills to meet present and future requirements in the group. Both automotive and equipment have made significant investments in training facilities over the period. Equipment SA invested R120 million in its technical training centre and associated accommodation. Equipment Iberia’s training facility has also received recognition as a leader in technical career development and received the Caterpillar Excellence Award for achieving a three star rating in the Learning Capability Assessment Tools (LCAT) audit.
"You're hired" Barloworld takes on the Apprentice Barloworld Handling in the UK has hired another nineteen new apprentices through its highly popular apprentice scheme. Despite difficult trading conditions Barloworld sees continued investment in apprentice training and development as a key factor in the future success of its business and wider industry. The business currently employs 52 apprentices throughout the UK and is committed to maintaining a talented team of professional engineers across the country to ensure high levels of service excellence and customer satisfaction.
	In September 2008, in response to a shortage of critical skills in South Africa, particularly of artisans, technicians and technologists, the member CEOs of Business Leadership South Africa committed to assisting government in the development of human capital. This includes monitoring and reporting on the status of in-house initiatives, as well as reaching out beyond their factory gates in collaboration
Commitment to skills development sets Barloworld apart Mr Membathisi Mdladlana, South Africa’s Minister of Labour (pictured with Mr Peter Bulterman, CEO of Barloworld Equipment Southern Africa to his left) and Mr Jim Owens, Chairman and CEO of Caterpillar Inc., officially opened the Barloworld Equipment Technical Training Centre on Thursday, 29 October 2009. “This occasion demonstrates Barloworld Equipment’s commitment to the future of our country and the entire SADC region,” said Mr Mdladlana. “Your effort in taking a strategic decision to press on with an investment in a training centre that has the capacity to train more than 2 000 learners is commendable.” The new Technical Training Centre in Isando, together with an accommodation block for learners, will provide Barloworld Equipment with the sustainable technical skills to deliver on its solutions-based value proposition to customers. “While other capital expenditure was halted due to the economic downturn, this was considered essential to the company’s business sustainability and continued market leadership,” said Dumisa Ntsebeza, chairman of Barloworld Limited. The facility will provide skills for all Barloworld Equipment’s southern African operations, as well as other African Caterpillar dealers and Barloworld’s automotive, handling and logistics divisions.
	with other companies, government, educational institutions, sectoral education training authorities (SETAs), industry associations and national business organisations to monitor the skills situation and report on training and development efforts. The South African operations have some 997 graduates and diplomates with an average age of 38 and 1 696 artisans, technicians and technologists with an average age of 39. Barloworld Automotive has 380 apprentices in South Africa which is approximately 18% of the industry total, while equipment has 394 learnerships. In total the South African operations have a skills pipeline of 803 apprentices and learnerships, as well as 80 individuals studying for either degrees or diplomas.
Automotive: Grooming tomorrow's professionals today.. Barloworld Motor Retail SA’s focused approach to employee development is paying dividends. Not only did 31 artisans qualify through its apprentice programme in the past 12 months, but also seven of their current black managers are graduates of its management development programme. The Barloworld Automotive Academy commenced training some two years ago. It currently has over 380 apprentices (including eight females) and training facilities in three provinces in South Africa to fast-track the training of future artisans. Automotive’s track record of appointment after qualification is more than 90%.
•	During the reporting period the group did not escape the effects of the global economic crisis on labour turnover. While all attempts were made to avoid an active reduction of the workforce, in a number of business units this was unavoidable and only undertaken after all alternatives had been thoroughly investigated. Significant effort was made to passively reduce the headcount by not filling vacancies left by resignations, retirements and dismissals. In many instances a reduction of the workforce was avoided though agreed restructuring of tasks, a reallocation of resources and relocation of employees. In Iberia, temporary suspension of employees on a rotation basis also reduced the workforce and resulted in cost savings. Across the group some 1 114 employees were retrenched or made redundant. These steps were only taken after extensive consultation with employees and employee representatives and, in every instance, all legal and applicable agreements and procedures were adhered to. This included applicable minimum notice periods contained in relevant industry, collective and individual agreements which vary by industry, region and individual. Significant reduction in employee numbers took place in equipment (Iberia and southern Africa), handling (UK and US) and logistics (Middle East, Asia and Africa). Assistance is provided to employees in case of involuntary termination and employees have access to pre-retirement advice and assistance. While the difficult economic circumstances required such action, the group is mindful of the inevitable recovery of the economies and the concomitant requirement of the businesses for relevant skills. Due consideration was given to this aspect in all staff reduction exercises. Employee Turnover Resignations   Transfers   Retrenchments/   redundancies*   Retirements**   Dismissals   Deaths***   Other****     Total 2009  1 625   110   1 114   208   577   65   422     Total 2008  2 360   281   238   148   728   74   241     Total 2007  2 481   60   191   135   423   62   968   * Includes voluntary terminations ** Including retirements due to ill health *** Including accidental deaths (work related/non-work related) and death   due to illness **** Reflects sales of business and termination of fixed term contracts
Performance management A structured performance management process utilising integrated balanced scorecard methodologies is entrenched in the organisation. These set out clear objectives and targets, provide direction, guidance and feedback on performance, as well as actions to reinforce accountability and ownership. Performance and reward systems are linked through salary reviews, bonuses and benefits such as incentive schemes and promotional opportunities. Approximately half of all employees received formal performance and career development reviews during the year. Structured team forums The ongoing success of the organisation depends on its ability to harness, focus and direct the collective wisdom and experience of all employees across the group. This is achieved through regular structured team meetings at all levels of the organisation which have become an established feature of management. These provide an opportunity to share information, improve motivation and commitment, encourage collective problem solving, build cohesive teams, recognise performance and provide efficient communication structures across the group.     Automotive: Grooming tomorrow’s professionals today…. The Winner: Thuli Matlala In making the award, Clive Thomson highlighted the multifaceted criteria of his selection. “It is the degree to which the person ventures outside the boundaries of their job, exercises effort beyond the call of duty, creates value in one or more Value Based Management (VBM) elements and demonstrates leadership attributes consistent with what Barloworld is striving for. Each nominee is a winner in their own right and tonight Thuli is a deserving winner. Thuli is able to demonstrate to the world that she can do anything an ‘abled’ person can do, but walk.” CEO award Exceptional excellence on the part of individuals is recognised through nomination for the prestigious annual CEO award. Candidates are formally nominated by their peers at divisional level and then put forward for group selection. The winner is selected by the CEO. Nominees (From left to right): Abeeda Motlekar, Branch Manager, Kimberley Avis Rent a Car South Africa For leading a team that exclusively comprises previously disadvantaged individuals and which has consistently won external accolades and recognition awards. Ruben Baloyi, Employee Relations Manager Barloworld Equipment South Africa For outstanding work during employee restructuring initiatives in South Africa, minimising the impact and ensuring dignity and fairness for those affected. Thuli Matlala, Corporate Social Investment (CSI ) Officer Barloworld Corporate Office South Africa For assisting Barloworld companies to confront insensitivity and prejudice against disabled people in the workplace, and in broader society. Lucía Ríos Segura, CRM-Call Centre Barloworld Finanzauto Spain For her leading role in the internal development of a personal digital assistant (PDA) that significantly benefits the salesforce, adding value to all of the business areas and enhancing the competitive position of the company. Victor Temlett, National Accounts Manager Barloworld Handling South Africa For his vital role in securing the company’s single biggest outright sale and largest single materials handling equipment transaction in South African warehousing, which also significantly increased the company’s market presence. Regina Ramesar, Proof Of Delivery (POD) Administrator Barloworld Logistics South Africa For significantly exceeding contractual obligations and achieving a “zero defect” record, which resulted in substantial incentive payments being received by the company.
	Product responsibility • Majority of products and technologies are sourced from leading global OEMs which address health and safety issues as   well as product information • OEMs provide warranties • OEMs responsible for product review and development • Group solutions and services comply with legislation • Extensive customer satisfaction surveys and follow-up processes • Customer privacy respected Most of the products that Barloworld offers carry OEM warranties and guarantees and product responsibility resides with the OEMs. However, appropriate insurance is raised to cover liabilities which may arise from product use, rental or after-markets activities. All products sold have the certification, labelling, product and service information required by legislation. Detailed hand-over procedures are followed and the OEMs’ recommended inspection, maintenance and continual safety system upgrade and training programmes are promoted to ensure customer health and safety. OEMs continue to improve the safety of their products as well as reduce the negative environmental consequences arising from the use of their products. Both equipment and handling divisions offer operator training to customers to ensure safe working and operation of plant and equipment.
Barloworld Logistics lifts inaugural industry enviro award Barloworld Logistics was recognised for the work it does in deploying a customised software tool, CAST-CO2, which can be used anywhere in the world to measure and optimise the impact of a supply chain network on carbon emissions.
	The logistics division has software products in respect of which customers’ rights are clearly delineated in licence agreements as well as in maintenance and support agreements. Its CASTCO 2 product offers customers the opportunity to optimise the carbon footprint of their supply chain. Customer satisfaction is critical to the ongoing success of Barloworld. In this regard stringent measurement systems are in place in all divisions which are continually monitored, reviewed and responded to. Examples include the Caterpillar Business Intelligence Group (BIG) programme which consolidates the average level of customer satisfaction by region and product group. Dissatisfied customers are identified as those with an average score of 70% and less. Responses from the BIG surveys are analysed and the average level of satisfaction (per region and product group) is established. This in turn is compared to the set satisfaction and loyalty target of 81%. Equipment SA’s trend over the past five years has been positive (with variances per product). An average of 89% was achieved in the past year. In addition to the Caterpillar BIG analysis, customer satisfaction data is maintained and managed in a database package called Saleslogix. In automotive operations, all dealerships participate in external, independent customer satisfaction index surveys. These are normally conducted by OEMs. In addition, individual motor dealerships conduct their own surveys, particularly in respect of their service departments. Car rental operations also conduct regular independent customer surveys and consistently score well. In this regard Avis Rent a Car South Africa conducts some 3 500 independent customer interviews per month and achieves scores which are generally above 82% with peaks up to 87%.
Avis cares To accommodate disabled drivers, Avis has fitted 10 vehicles in South Africa with hand control systems. They also have six temporary hand control units that can be fitted on request.   A Paraplegic Toyota Quantum has been introduced to its Avis Chauffeur Drive offerings. This vehicle has a hydraulic side-lift that hoists passengers in their wheelchairs onto a customised platform in the vehicle where they are securely strapped.
	Avis Rent a Car South Africa was again voted Best Car Rental Brand in South Africa for the sixth consecutive year in an independent survey. Avis Rent a Car Norway and Avis Rent a Car Sweden received the Grand Travel Award for the 14th and 17th consecutive year respectively. Fleet Services operations are monitored with their scores at around 85%. Handling operations have a number of customer interface interventions which include Customer Focus Meetings, a National Response Centre in the UK and a variety of customer surveys and a call centre in South Africa. Customer surveys, together with direct customer interventions and ad-hoc customer focus groups, form the basis of customer feedback, which is consolidated and reviewed at all levels in the group, including divisional board meetings.
	During the year, there were no instances of non-compliance with any regulation concerning customer health and safety, nor were any penalties or fines recorded. Quality and customer satisfaction are elements of the ISO 9001 quality management system certification and this rating is maintained in the following operations: • Automotive:   – Avis Rent a Car: South Africa, Botswana, Lesotho, Mozambique, Namibia and Swaziland   – Avis Fleet Services: South Africa, Namibia   – Motor Retail: Four Australian VW dealerships (Two in Sydney and two in Melbourne) • Equipment South Africa: Bellville, Bloemfontein, CRC Boksburg, Durban, Isando, Middelburg • Equipment Botswana: Gaborone Equipment Iberia: Finanzauto’s Central warehouse in Madrid and Services in Arganda • Handling: Handling UK (except for Barloworld Handling Ireland) including Defence Logistics Support. All marketing and advertising conforms to Barloworld’s principals’ standards, local adaptations of which require their prior consent. Apart from one instance in the US regarding non-solicited emails, which was quickly resolved, there were no other instances of non-compliance with regulations concerning advertising, promotion and sponsorship nor were any other complaints received in this regard. There were no instances of customer privacy being compromised nor were there any substantial losses of customer data or incidents of non-compliance concerning product and service information and labelling.