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
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.
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:
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.
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.
Sasol may, in this document, make certain statements that are not historical facts that relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves and cost reductions, including in connection with our BPEP, RP and our business performance outlook. Words such as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 28 August 2018 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude, mmboe – million barrels oil equivalent. All references to years refer to the financial year 30 June. Any reference to a calendar year is prefaced by the word “calendar”.