The capacity and capability of our employees is a cornerstone of sustainability in Murray & Roberts. The Group aims to be an employer of choice in the construction and engineering sectors and its world class delivery of products and services is a reflection of the capability of its diverse but experienced workforce.

The Murray & Roberts employment value proposition is equal to global practices of high performing employers of choice. It focuses on issues that enable our human capital to achieve the strategic objectives of our Group by:

attracting competent and fitting employees
retaining employees
supporting employee performance
transitioning and developing employees
communicating with employees

The capacity and capability of our people is a cornerstone of our sustainability

Due to the diversity of Murray & Roberts, individual business entities are encouraged to tailor their human resource plans to their specific needs, but they are required to align their plans with the Group’s employment value proposition.

Murray & Roberts endorses employee rights contained within the Constitution of South Africa 108 of 1996, including the right to freedom of association. The Group’s policies and procedures are aligned with the constitution and the laws of South Africa and where appropriate, other countries in which we operate.

Human resource policies and procedures, including procedures for the management of grievances, disputes and disciplinary measures, are in place in all group operations.

Capacity development

A global benchmark study conducted by Murray & Roberts revealed that human capital development is one of five key characteristics of best-in-class engineering & construction companies. Building world class leadership, as well as individual and organisational capability and capacity, is crucial to Globalising Murray & Roberts. The Group complies with prevailing skills development legislation and provides a range of training, learning and career development opportunities for its people. In 2010, investment in formal employee training and development was approximately R117 million (2009: R96 million), including wages and salaries of participants and capital expenditure in upgrading training facilities. Approximately 10 000 employees undertook formal skills enhancement and training development during the year.

Murray & Roberts plays a leading role in addressing the skills deficit in South Africa through public sector initiatives, including the requirements of the Accelerated and Shared Growth Initiative for South Africa (ASGISA) that govern our involvement in the power generation projects, particularly the Eskom power program. Enhancement of academic knowledge in power related subjects and establishment of large scale skills development capability is prioritised within communities surrounding major power stations and selected other developments.

The National Business Initiative’s Education College Industry Partnerships program with South Africa’s Department of Education has been enhanced by the Group’s continued investment in artisan training and in particular the Tlhahlong artisan training centre at the Lephalale FET College. Murray & Roberts Construction runs a construction skills and supervisory training centre and has been recognised by the Construction Education and Training Authority as a Construction Centre of Excellence.

CASE STUDY: TLHAHLONG ARTISAN TRAINING CENTRE

In 2007, Murray & Roberts Projects (formerly Murray & Roberts MEI) was awarded a contract by Hitachi Power Africa to supply and install structural steel, ducting, bunkers, piping and free issue boiler and ancillary equipment for the Medupi power station. The project is based in Lephalale, Limpopo near the Matimba power station.

Murray & Roberts Projects has agreed to meet significant targets of ASGISA: 700 artisans will be trained for the Medupi power station project through the Tlhahlong artisan training centre. The centre covers a space of 6 000 m2 and includes: classrooms, storerooms, workshops as well as a simulation area for steel erecting and rigging. Training is taking place in conjunction with the following key stakeholders:

Murray & Roberts Projects
The FET College in Lephalale
Gijima AST (the training provider)
The merSETA (manufacturing, engineering & related services SETA)

Murray & Roberts aims to leave a positive legacy in communities where the company undertakes large projects. Through the Medupi project, Murray & Roberts will contribute substantially to the upliftment of the local community with the transfer of skills and the development of new skills.

Training at the centre is based on the Accelerated Artisan Training Program (AATP) module which was introduced by the merSETA to address the skills shortage in the country. Training consists of 26 weeks of institutional training at the Tlhahlong Centre, and workplace experience is undertaken at the Medupi site according to a structured log book with activities signed off by a qualified artisan who also acts as coach. The minimum period of the workplace exposure is 54 weeks. The entire training period ends with a trade test that needs to be completed and passed.

The total capital investment by Murray & Roberts to erect and equip the Tlhahlong centre was just under R27 million. Afrox made a donation to the value of R1,2 million in the form of welding equipment and consumables.

As Limpopo is one of the poorest provinces in South Africa with a large number of unskilled inhabitants and a high rate of unemployment, the Tlhahlong Centre provides a unique opportunity for individuals to qualify as artisans, therefore empowering the community and, in turn, building skills capacity in the country.

This model will be extended to facilitate localised development of higher level artisan skills for other infrastructure investment programs.

Murray & Roberts actively attracts and develops young talented people to fulfil its human capital and transformation needs. The Group has established an integrated graduate pipeline to supplement the learnerships and traineeships offered by many of its operations. This pipeline comprises a tertiary education bursary scheme, a graduate development program (GDP) and a campus engagement initiative.

The Murray & Roberts bursary scheme provides financial assistance to full-time students, enabling them to qualify for a degree or national diploma at a recognised South African University or University of Technology, and to contribute to the Group’s medium and long term needs for qualified staff. The scheme is aimed primarily at engineering and built environment fields of study. The number of bursaries awarded annually depends on the Group’s needs.

Murray & Roberts currently has a total of 167 bursars (2009: 193), 57% of whom are black students and 32% female. The Group aims to increase the number of black bursars in the year ahead to at least 70%.

The GDP is part of the Leadership Pipeline approach to addressing human capacity and transformation issues. It aims to provide a steady pipeline of future leaders. The GDP is in its fifth year with an ex-bursary intake of 53 graduates (2009: 88). Currently, 62% of the graduates are black and 23% female.

Murray & Roberts and its operations offer skills development programs, from adult basic education to learnerships and leadership programs. The Group had 1 140 (2009: 438) people undertaking learnerships at 30 June 2010, 91% of whom are black, and 559 (2009: 276) black employees on adult basic education and training initiatives.

The Group has implemented a comprehensive leadership performance and development process for its corporate and senior operational leadership teams. Performance reviews are formal and in most instances conducted biannually, and monthly performance and development discussions are encouraged. There are more than 720 managers active in the system. Leadership development initiatives comprising four differentiated and role aligned programs ensure that Murray & Roberts people are well equipped to meet current and future leadership opportunities. The programs are designed to support development of individuals throughout their careers and to help individuals to understand:

the role they are assigned to
what work they value at present and what work they should value to become more effective and to prepare for a transition
where and on what they invest their time at present and how
they should change their time application to become more effective and to prepare for a transition
the core skills, knowledge and experience required to be effective at their level
their own level of performance and development needs

The leadership development program, excluding new graduates, has 167 (2009: 181) delegates, 40% of whom are black managers and 14% female.

The Group conducts an annual leadership succession review to identify and plan key activities to ensure that the right people assume leadership positions across the Group now and into the future. The leadership review extends the Group’s business planning process by solely focusing on people selection, performance, development and succession aligned to the Group’s business plans.

Murray & Roberts is committed to the national agenda of South Africa, including the pursuit of employment equity throughout the organisation, the economic empowerment of all sectors of society and facilitation of the growth of direct investment into the economy.