Employee Empowerment Trust puts Trentyre ahead of the B-BBEE game
In a bold move towards empowerment and broad-based development, national tyre and service supplier Trentyre has put its money where its mouth is and made shareholders of all its non-managerial employees.
The initiative comes in the form of the Trentyre Empowerment Trust, a broad-based ownership scheme that has acquired ordinary shares in Trentyre comprising 30% of the total issued share capital of the company. All permanent, non-managerial staff members have been made beneficiaries of the Trust.
Nigel Sowerby, Trentyre Operations Director, said the chief aim of the new share structure was “to drive sustainable and profitable growth, together”, in compliance with the country’s Broad-Based Black Economic Empowerment (B-BBEE) and Mining Charter requirements.
“We really want to create a sense of empowerment and of real participation in the ownership of Trentyre for our people,” he said.
“We firmly believe that this plan not only supports South Africa’s call to develop and empower historically disadvantaged people, but will also secure Trentyre’s place as a leader in our industry and provide exciting opportunities for both our employees and our business.
DEVELOPING OUR FUTURE. TOGETHER
“In defining the Empowerment Trust’s aim with the strap line ‘Developing our future. Together’, Trentyre has laid out its vision to be the first choice provider of tyres and services to the commercial and OTR (Off-the-Road) sector in southern Africa, at a sustainable profit.
The deal has also significantly improved Trentyre’s B-BBEE rating – from a level 6 to a level 4 – which, in turn, is good news for its mining, government and other fleet customers’ preferential procurement policies.
According to Sowerby, an upfront investment of R250 000 will provide the Trust with a robust foundation and fund its first empowerment initiative, the details of which are still to be finalised.
“The Trust’s acquisition of the shares was financed by loans from Goodyear South Africa and Trentyre. A portion of the dividends, which are based on Trentyre’s performance, will initially go to repay that loan and the balance will be invested in further empowerment programmes, such as skills development, in accordance with B-BBEE codes. No funds will be paid directly to employees,” he said.
“Clearly, if the business performs well, the loan can be paid back quickly. It’s a good incentive for employees, who all play key roles in the success of the business and who can now enjoy a direct benefit.
“The Trust’s income will be used for empowerment projects, including education funding and similar investments in personal development. We want our people, especially black employees, to feel encouraged to achieve higher levels of competence, self-sufficiency and subsequent advancement within the company.”
Trustees, include Prof Vivienne Lawack (Executive Dean: Faculty of Law, NMMU/Nelson Mandela Metropolitan University; an independent trustee and Chairperson of the Board of Trustees); Julia Modise-Simelane (Group Human Resources Director – Goodyear Tyre and Rubber Holdings, and also a
Director on the Trentyre Board); Lyndon Ownhouse (Finance Director – Magister Projects, and also a Director on Goodyear South Africa Board); Busi Nzo (Financial Planning & Analysis Manager – Magister) and Paul Sherman (Director Compliance & Ethics – Goodyear Tyre & Rubber Holdings).
A subsidiary of Goodyear Tyre & Rubber Holdings, Trentyre is a multi-brand supplier of new and retread tyres, related products and services to the truck, agriculture, passenger, construction and mining industries. The company has a national footprint, with on-site services in the mining, commercial transport and construction industries, and its 52 branches and 12 retread factories strategically positioned in all eight provinces.
“Trentyre is regarded as one of the largest service and product providers of its kind in South Africa’s commercial tyre market,” said Sowerby.
“Its offer of a national service proposition, backed by the powerful Goodyear brand, already gives the company a key competitive advantage in the market. Now, from a preferential procurement point of view, Trentyre’s B-BBEE status will definitely set it apart from its competitors – not only as a credible B-BBEE supplier, but also from a service excellence and footprint point of view.”