Workdays lost in 2013 as a result of industrial action at Group Five increased by roughly 30% over 2012 to 78 465 days, says Group Five human resources director Junaid Allie.

He notes that 7 487 people participated in industrial action at the group’s various businesses this year.

Only two of the 16 strikes were legal.

There has been a general increase in unreasonable demands and a disregard for current binding collective agreements, he adds.

Wage settlements reached throughout the year averaged an increase of between 8% and 10%.

Union membership has been decreasing, however, notes Allie, with 19% of Group Five employees, or 2 416 employees, members of a union in the 2010 financial year, and 15%, or 2 120 employees, members of a union in the 2013 financial year.

in the face of an increase in the number of unions Group Five has to engage with – from five in 2009 to ten in 2013.

Allie says the decrease in membership can be attributed to several factors, such as a younger workforce willing and wanting to “go it on their own”, a desire to maximise income and not pay union fees, as well as the fact that certain unions have recently fallen out of public favour.

With such a large percentage of the work-force not unionised, Group Five has been forced to encourage the appointment of worker representatives to communicate the demands of workers to management.

These worker representatives must then also be educated on the relevant labour legislation, such as the Basic Conditions of Employment Act.

Allie says the number of strikes in the construction industry has been increasing as demands to lift standards of living surged. Some service delivery protests in communities are also spilling over into the workplace.

This means the company has to engage with the local community as well when executing projects, while it also ensures that Group Five makes use of local labour wherever possible.

Employment at the construction and engineering group has been growing steadily since June 2012, with full-time employees in June 2013 at 5 996 people, up from 5 333 in June 2012. The number of part-time employees increased from 5 081 in 2012 to 7 663 in 2013.

Competition Update
Group Five has not yet settled its four outstand- ing cases with the Competition Commission, says CFO Cristina Teixeira.

The commission earlier this year imposed R1.46-billion in penalties on 15 companies in the industry for collusive tendering related to projects concluded between 2006 and 2011.

Group Five, as a whistleblower on these collusive practices, was granted leniency by the commission on all 25 of its submissions.

However, despite its cooperation over a period of four years, the group earlier this year received notice from the commission that it intends fining the group for infringements on four projects in which it has been implicated and for which no leniency has been granted.

Teixeira says Group Five is not unwilling to settle, provided the terms are reasonable.

It is not yet clear what the penalty payable will be, but Group Five has made provision for a fine, she adds.

With regard to civil claims flowing from the Competition Commission investigation, Teixeira says the group has “not received any formal civil claim” from its clients.

Group Five CEO Mike Upton reiterates that the Competition Commission enquiry has damaged the reputation of South Africa’s construction industry.

He says government wants a construction industry that embraces transformation and acts ethically.

“We need to reach out and find each other.”

Upton says any mending of fences – “a work in progress” – will most likely need to occur through industry bodies such as Master Builders South Africa or the South African Federation of Civil Engineering Contractors, on industry’s side, and government’s Depart-ment of Public Works.