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Mango aims for 10% black pilots by 2014! Here's what you need to do to improve YOUR BBBEE points

by , 18 September 2013
Low cost airline Mango and South African Express Airways (SAX) have announced that the two carriers will collaborate to effect greater sustainability and opportunities to the existing SAX Cadet Pilot scheme, News24 reports. According to the report, the initiative will see cadet pilots from disadvantaged backgrounds absorbed into Mango's pilot body per growth requirements. In fact, Mango says it aims to achieve a 10% black pilot representation level by March 2014. This initiative has cast the spotlight on Broad-Based Black Economic Empowerment (BBBEE) and compliance. Here's what you should know to improve your company's BBBEE points for employment equity.

According to the Practical Guide to Human Resources Management, the BBBEE Codes were set out in 2007.

They set targets for those companies who wish to be measured against the scorecard for employment equity and other elements.

If your business doesn't comply with Sections16, 19, 20, 21, 22 and 23 of the Employment Equity Act (EEA), you could face a fine between R500 000 and R900 000, depending on the level of contravention.

Is that a risk your company can afford to take?

Here's how to improve your BEEE compliance

  • Conduct an analysis to establish the current employment equity status or demographic of your company.
  • Establish numerical goals in line with the company's BBBEE targets.
  • Develop an employment equity plan to strategise on how you will meet the numerical goals.
  • Include your numerical goals in the Employment Equity Report.
  • Always consult your Employment Equity Committee about your company's BBBEE plans and the role employment equity will play in achieving your BBBEE rating. This committee must also help to develop recruitment and development plans so your company can meet your targets.

The Practical Guide to Human Resources Management recommends you keep track of the targets and check variances monthly. Ensure that staff leave and vacancies are filled.

It's also important to evaluate the effect of staff changes to your targets and to be aware of how this may affect your score.

How the rating agency will rate you depends on:

  • The turnover of your business; and
  • The industry that your business forms part of.

Remember, if your company's turnover is less than R5 million, you're exempt from measurement. But you can get a Level 4 certificate through an accredited rating agency.

You can present this certificate to any customer requesting your BBBEE certificate

In addition, the Department of Trade and Industry has gazetted seven Sector Charters under Section 12 of the BBBEE Act.

This means that:

  • Major stakeholders in the industry have developed and agreed on the Charter; and
  • The Charter is fully binding between and among businesses operating in the industry
  • Sector Charters have been published for the:
  1. Intergrated Transport Sector;
  2. Forest Sector;
  3. Construction Sector;
  4. Tourism Sector;
  5. Chartered Accountancy Sector;
  6. Agri-BEE; and
  7. Marketing, Advertising and Communication Sector.

If your company operates in any of these industries, you must consult the Charters when planning your employment equity targets.

If your company doesn't fall in any of these sectors, follow the Generic BBBEE Scorecard

You must use the guidelines set out in the EEA and its regulations when you determine your employment equity score.

Well there you have it. Now that you know what's required of your company, make sure you're BBBEE compliant.

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