NUM shocked by BUSA's understatement on transformation results

The National Union of Mineworkers (NUM) is shocked and alarmed by the findings of a study by Business Unity South Africa (BUSA) showing that transformation in South Africa is inadequate (see report). The NUM notes that the study itself is conservative and that the situation is actually far worse than it is projected.

The study released by BUSA titled "a snapshot of the demographic profile and pace of transformation of JSE listed companies" reveals that the overall percentage of black people is at 25,3% below the 50% target. This is not only a lie but a public relations exercise on the part of Business Unity South Africa to rectify its dented image. The NUM believes the transformation percentages are far below the 25% that appears on the so-called study.

The so-called study further goes on to project the following worrying image which the NUM believes that the picture is actually more worrying than it is projected:

• The overall percentage of black people was at 25.3%, well below the 50% target set in the Codes
• Black executive directors account for 9.5% of executive directors, while black non-executive directors stood at 27.6% - the target for each is 50%
• The percentage of black independent non-executive directors was 38.1% compared with a target of 40% - indicating that this target has been met
• Black chairpersons account for 22%; black CEOs for 6.9%; and black CFOs for 7.9% - again, the target for each is 50%
• The percentage of black female directors was at 10.2%; black female CEOs at 1.2%; and black female chairpersons at 3.9%
• White males account for the majority of senior positions on the JSE: 52% of all board positions, 72% of executive directors, 51% of chairpersons, 76% of CEOs and 76% of CFOs

The NUM strongly believes that these figures are cooked in such a manner not to unsettle the South African working people as the transformation percentages are generally far below the twenties, around 10% and below. For BUSA to therefore argue that the current pace of transformation is inadequate is an understatement and ridiculous and a bluff to the majority of South Africans. In the mining and construction sectors, the situation is far worse than 10%. BUSA is part of the problem and cannot therefore point fingers in the direction of the companies it represents.

Statement issued by Lesiba Seshoka, National Union of Mineworkers, September 20 2011

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