Employees and employee Benefits
The group employs over 15 000 staff – with just over 10 000 of these in a permanent full-time capacity, and the rest as either permanent part-time, flexitime, contract or casual employees.
Retirement funding
All permanent staff of wholly-owned subsidiaries are required to join the Foschini Group Retirement Fund – a defined contribution fund registered in terms of the Pensions Fund Act, No. 24 of 1956. The fund’s administration is undertaken by the group in accordance with an agreement approved by the Financial Services Board, and it is managed by a board of trustees that meets quarterly. The assets of the fund are under the control of the trustees who are advised by external consultants. Sub-committees for strategy and investments meet quarterly, and the benefits sub-committee meets monthly. Trustees receive no remuneration for their services and particular attention is paid to trustee training, with ongoing training provided to ensure that trustees remain abreast of legislative changes and other developments. As required by legislation, 50% of the trustees are member-elected and the term of office for all trustees representing either the employer or members is three years, after which the trustees are eligible for re-election.
Apart from retirement benefits, the fund also provides a funeral benefit, a death benefit, accidental death benefit and a disability benefit.
Employees of RCS Group are not members of the Group Retirement Fund but receive comparable benefits from either Liberty Life Provident Fund, Liberty Life Pension Fund or the SACCAWU Provident Fund.
Where required, employees of subsidiaries trading outside South Africa belong to umbrella funds that comply with the legislation of the relevant country.
A formal risk assessment of the retirement fund is undertaken at least annually, and taking into account mitigating factors, HIV/AIDS remains the highest potential risk to the fund. Risk is minimised by undertaking regular actuarial valuations, external expert prevalence projections, and ongoing programmes on HIV/AIDS education and awareness.
The Foschini Group Medical Aid Scheme
The Foschini Group Medical Aid Scheme is an in-house, subsidised medical scheme that is designed to best suit the needs of most employees. Membership is voluntary except for senior employees and the scheme is administered by the Metropolitan Health Group. The scheme’s board of trustees is responsible for all aspects of its operations which is reviewed by both the Foschini group medical aid audit committee and the external auditors, with a medical schemes consultant and an actuary providing specialised advice. Monthly operational and quarterly board meetings are held. The trustees and audit committee receive no remuneration for their services.
A risk assessment of the scheme is undertaken at least annually, both by the trustees and the administrators, and the highest risk identified is the volume of legislation affecting medical schemes. Keeping abreast of all current and pending legislation and adapting the scheme’s rules accordingly assists in managing this risk.
Other health plans
An external medical scheme, Ingwe Health Plan, is also available to group employees, and is subsidised by the group in the same way as the in-house scheme. The plans offered cater for lower-income earners providing basic healthcare through capitation agreements with large hospital groups. Ingwe forms part of the black-empowered African Life group.
Employees outside South Africa may elect to join medical schemes that are similarly funded by the group
All permanent staff of RCS Group are required to become members of a medical plan of their choice offered by Discovery Health.
Bursary scheme
The group operates a bursary scheme for children of employees, funded by the Foschini Foundation. This scheme is in the process of being phased out and a new scheme is to be introduced in the 2010 calendar year. The aim will be to bring new talent into the group.
Educational assistance
Low-interest loans are available to employees to assist with the costs of tertiary education for their children. These are available on an annual basis for each child and are repayable over two years to improve affordability.
Home assistance
Low-interest loans are available to employees to assist with the purchase or improvement of property, weighted towards providing greater assistance within the lower price property brackets.
Employees may access further financial assistance from an outsourced facility, utilising their share in the Foschini Group Retirement Fund as security (subject to the rules of the fund).
Sponsorship
Employees are encouraged to undertake studies that will assist them in their current or future careers with the group, with the sponsorship varying according to the level of study and requiring greater financial commitment from employees at higher educational levels. Support for matriculation study fees is 100%. We also offer sponsorship for the UNISA Retail Certificate, an intensive one-year retail-specific diploma.
Healthcare
The management of occupational health lies with an external service provider. Curative and preventative care is provided from a centrally-located occupational health clinic permanently staffed by two nursing sisters with qualifications in occupational health and a medical doctor is on site twice a week to assist with cases requiring specialised attention. The clinic provides a service to all employees working at the head office campuses as well as those at the distribution centres, and offers family planning, HIV testing, primary health care, counselling for psycho-social stress, health education and health screening.
A confidential, outsourced employee wellness help-line facility, manned by a qualified social worker, offers help in regards health, financial matters, trauma, interpersonal relationships, legal issues, substance abuse, HIV/AIDS and general enquiries. The issues unrelated to health are referred to selected service providers at no cost to the employee.
The service provider also manages ill-health within our stores through the WAKE programme, as well as any injuries on duty in terms of the Commission for Occupational Injuries and Diseases Act (COIDA); and facilitates the group’s disability benefit processes.
Employee relations
The group has a documented disciplinary and grievance policy and procedure based upon the principles of fairness and correction rather than punitive action, that is available on the group’s intranet.
Staff safety
The group complies with all relevant legislation, in particular the Occupational Health and Safety Act of 1993, and is committed to ensuring a safe and healthy working environment for its entire staff. Like most other retailers, it operates within a low risk environment.