Stamp Duties Act, 1968 (Act 77 of 1968)
R 385
Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesBargaining Council for the Metal and Engineering IndustriesMain Collective AgreementPart 25. AnnexuresAnnexure EEmployee Share Option Participation Schemes (ESOPS) and the Requirements of the Broad Based Black Economic Empowerment Act (BBBEE Act) |
The parties agreed as follows:
| (1) | That in compliance with the objectives of black ownership targets as set out in terms of the BBBEE Act and Codes, it is desirable to consider broadening the ownership of businesses through, amongst other initiatives, the establishment of broad based employee ownerships schemes (Esops). |
| (2) | That Esops, properly implemented, can assist in the promotion of an inclusive, ownership culture and thereby contribute to the broadening of the foundation of shared interests between employees and the company |
| (3) | That the establishment of Esops is a voluntary choice of the shareholders in deciding how the company is to comply with the ownership criteria contained in the BBBEE Act and related Codes |
| (4) | That where companies decide to implement Esops the following broad guidelines are recommended for the Esop establishment process: |
| • | That the company will develop the desired allocation, financial, legal, governance and benefit model of the Esop |
| • | That the parties engage in a consultative, consensus seeking process in the roll out and administration of the Esop in order to enhance the value creation, benefit realization and overall understanding of the scheme by all parties. |
| • | That Esops should be structured on non-racial, equal allocation criteria within the bargaining unit in particular |
| • | That the Esop outcomes should create sustainable financial, legal, company and employee empowerment benefits that deliver long term value and savings benefits to the beneficiaries |
| • | That the Esop implementation process should be complemented by an effective education and communication program for the trustees and beneficiaries during both the establishment processes and the ongoing management of the trust after establishment |
| • | That the Esop Trust should be adequately resourced with company, employee beneficiary, and independent trustees and have sufficient independent operational capacity for the Trust to be effectively managed to the highest standards of corporate governance on behalf of beneficiaries |
| (5) | That they will engage constructively in the Esop consultative processes with the specific understanding that the establishment of employee ownership is about forging labour-management partnerships to create shared wealth, grow that wealth and enhance the understanding of all stakeholders about the value drivers of the company. |
| (6) | Upon these guidelines being substantively agreed by the industry, organised labour specifically commits to work in partnership with the employer parties to: |
(a) At industry level:
to jointly promote in the NEDLAC Metals and Engineering Sector Summit planning committee, and any subsequent industry Codes which may emerge from this process, a customisation of the ownership portion of the scorecard contained in the DTI Codes of Good Practice, in favour of maximising ownership points to secure the full and unfettered allocated ownership points to any company in the industry that enters an employee ownership transaction in substantive compliance with the terms of this guideline
where requested by a member company or union, to collaboratively engage parties at company level to assist in building partnerships around employee ownership solutions in a facilitated, problem solving and consultative way
jointly market and promote consultative, partnership driven processes to establish employee ownership at company level in public and for training interventions
| (b) | At company level to |
support company ownership accreditation applications and lobby for the maximisation of ownership points with the relevant authorities and/or ratings agencies wherever companies have entered an employee ownership transaction in substantive compliance with the terms of this guideline
participate positively in collaborative and joint communication and education processes to promote the understanding of employee beneficiaries of the ownership transaction.”
