Proposed Developments in Transport Sector Codes
As the transport sector transitions away from eight years of regulatory uncertainty, the introduction of the new Integrated Transport Sector B-BBEE Codes is expected before the end of 2024, with no transitional period for implementation. Here’s what businesses need to prepare for:
Proposed changes to the Codes
- Ownership: The proposed revisions suggest integrating Employment Equity Plan (EAP) demographics into the ownership criteria to foster more inclusive ownership structures.
- Management Control: The draft changes include removing the Junior Management Element and setting higher targets for board voting rights for black individuals, especially black women.
- Skills Development: Introduction of Advancement Programmes for Junior, Middle and Senior Management – this includes Management Development Programmes (MDP) to improve the managerial skills of employees
- Enterprise and Supplier Development: A potential new requirement is the establishment of an Integrated Transport Sector Enterprise and Supplier Development Fund, mandating contributions towards the growth of black-owned enterprises in the transport industry.
- Socio-Economic Development: Future contributions are expected to focus on integrating individuals from rural areas and townships, with a priority on development relevant to the transport sector.
Strategic Implications for Companies
With these anticipated updates, companies in the transport sector should begin preparing to adapt their B-BBEE strategies to meet new standards:
- Strategic Planning and Flexibility: Businesses should start planning their B-BBEE tactics in light of the potential enactment of new legislation. Building flexibility into these plans and incorporating risk management strategies will be crucial.
- Budgeting and Contributor Status: It’s important for companies to anticipate the potential impact of the proposed codes on their B-BBEE budget and contributor status. Keeping abreast of developments and seeking expert consultation for compliance are essential steps.
- Proactive Alignment: Organizations should begin aligning their strategies with the anticipated changes and prepare to integrate new amendments, ensuring efficient management of their B-BBEE scorecards.
The Role of QCTO in the Transport Sector
The QCTO continues to play a critical role in the transport sector’s transformation. Established in 2010, the QCTO is focusing on defining mandatory training requirements, enhancing management advancement programs, and increasing the participation of black engineers in management development initiatives.
Conclusion
While the proposed Transport Sector Codes are yet to be enacted, they signal both potential challenges and opportunities for the transport industry. Businesses must begin adapting their strategies proactively to align with the expected requirements. Additionally, staying informed about the QCTO’s initiatives in training and competency development will be crucial for compliance and achieving transformation objectives.
Take note – the below Learnerships are expiring the end of June- contact CSG Skills for alternative QCTO Learnership solutions.
- Transport NQF Level 1 (SAQA ID: 59300) – Expiring end June 2023
- Freight Handling NQF Level 3 (SAQA ID: 57831) – Expiring end June 2023
- Wholesale and Retail Operations NQF Level 3 (SAQA ID: 63409) – Expiring end June 2023
- Management NQF Level 4 (SAQA ID: 57712) – Expiring end June 2023
- Management NQF Level 5 (SAQA ID: 59201) – Expiring end June 2023
- Management I – Human Resource Management
- Management II – Leadership Fundamentals | Operations management | Change management
- Management III – Decision Maning | Innovation | Team Performance Management | Risk Management
- Management IV – Unit Management | Recruitment & Selection| Conduct negotiations | Project Management
Contact our experts at CSG today to ensure your business is prepared and proactive in the face of upcoming regulatory changes.
