Today, Sasol participated in a Commission for Conciliation, Mediation and Arbitration-facilitated (CCMA) mediation between Sasol and Solidarity, in relation to a dispute on Sasol Khanyisa. The first day of mediation has been concluded and the parties will reconvene at the CCMA on 3 October 2018.

At the mediation, Sasol reaffirmed our commitment to transformation and inclusive growth through our Broad-Based Black Economic Empowerment (B-BBEE) programmes, of which Sasol Khanyisa is an important component. We reiterated our position that transformation is, and will remain, a business, social and moral imperative for Sasol.

Sasol Khanyisa presents but one step Sasol is taking to bring about a more inclusive economy by affording an opportunity specifically to previously disadvantaged groups, as defined by the Department of Trade and Industry’s B-BBEE codes.

We look forward to further constructive engagements with Solidarity when we reconvene.

NOTE TO EDITORS: Please note information below pertaining to Phase 1 of Sasol Khanyisa

Background

Solidarity originally declared a dispute against Sasol in January 2018, objecting to the exclusion of White employees from Sasol Khanyisa Phase 2. After a second round of CCMA discussions, the CCMA issued a certificate of non-resolution in May 2018 after not being able to reach common ground. A certificate of non-resolution does not imply that Solidarity is correct or that Sasol is wrong, it means that the parties could not find any middle ground, and gives permission to Solidarity to withdraw labour and protest in a safe manner. We value Solidarity’s relationship with Sasol and will ensure that we keep the lines of communication open between us.

Sasol Khanyisa Context

On 1 June 2018, Sasol Limited officially launched Sasol Khanyisa after having received shareholder approval on 17 November 2017. Our intention is to create meaningful financial benefits for approximately 230 000 Black public shareholders and qualifying employees, and to achieve 25% direct and indirect Black ownership of Sasol South Africa Limited (SSA).

We are aware of negative reports and sentiment expressed from various quarters of society against Sasol Khanyisa. These reports are largely premised on a misunderstanding of elements of the transaction pertaining to employee participation.

Qualifying Criteria 

Employee participants in Sasol Khanyisa Phase 1 are ALL permanent Sasol employees, regardless of race, tenure or seniority, who were participants of Sasol Inzalo and still actively employed on 1 June 2018. Phase 2 of Sasol Khanyisa is extended to our Black permanent employees (African, Indian, Coloured), as defined by the DTI Codes of Good Practice.

Qualifying employees in Sasol Khanyisa will receive equal shareholding across the organisation. The qualifying criteria for employees are as follows:

Phase 1:

All Sasol employees who participated in the Sasol Inzalo Employee Scheme, and who were permanently employed on 1 June 2018, will participate in Phase 1 and are eligible for R100 000 worth of Sasol Ordinary shares, or Sasol BEE Ordinary Shares which will vest in 2021. 

There were 6 313 White employees and 11 962 Black employees in this Phase at the start of the transaction.

Phase 2:

All Black employees who were permanently employed on 1 June 2018, participated in Phase 2 and are eligible for 1 240 Sasol Khanyisa rights to shares which will vest in June 2028 or the earlier of settlement of funding obligations. This means that the rights to shares are fully funded through notional vendor financing and any dividends declared over the next 10 years will be used to service the funding obligations and create net value at the end of the empowerment period for participants. There were 18 282 Black employees in Phase 2 at the start of the transaction. 
 
Sasol’s Transformation Journey

Transformation, in the form of share ownership in Sasol South Africa by previously disadvantaged groups, is an important business, social and moral imperative for Sasol. 

Sasol Khanyisa is not part of Sasol’s Employee remuneration or benefit structures. It was specifically designed to address the ownership component of the B-BBEE Codes and therefore Sasol Khanyisa primarily focuses on the inclusion of Black employees and public shareholders.