Toyota Lead the Way

At the core of Toyota South Africa’s business are its people. We recognise and pursue the value to be found in harmonious and sustainable relationships – with customers, suppliers, communities and employees.
One of the pillars of the Toyota Way is respect for people, and we practice this with all stakeholders.
Our stakeholders are grouped into customers, business partners, employees, shareholders and the global and local community.

Within these categories, we have a comprehensive list of stakeholders with whom we engage on a defined basis, depending on the nature of the relationship. Our social contribution activities focus on the environment, education, arts, culture and community care, which we believe are the basis of a future sustainable society.

The Excellence in Customer Quality Challenge (E-CQC) programme has been the highlight of our customer engagement. From meeting EU emissions standard for our European customers, to designing safety features in our vehicles, the E-CQC campaign was rolled-out to employees, contractors, suppliers and dealerships to ensure that each and every part of the chain deliver the desired quality standards.

Employee surveys are carried out each year, and we have put in place programmes to address the identified shortcomings, namely pay and benefits, the implementation of policies and procedures and interpersonal communications. R300 million has been invested in training over the past five years. We are currently spending more than R70-million a year on direct training and skills development to support the increase in production capacity. Over the past 2 years, 13%and 20%of our employees underwent human rights training respectively.

• A total of 212,184 hours were spent on training in FY’07, of which 98,672 hours were devoted to SHE training.
• In FY’07, we awarded 185 tertiary bursaries, at a total value of R2, 633,000, a 15% increase over FY’06.
• Over 50% of the suppliers that participated in the construction of Paint Line 3 were empowered.
• Attracting and retaining female staff, young African staff, and Technical Experts such as Artisans and Engineers remains a challenge.
• There has been an 8% increase in the number of female General Managers since FY’05.
• FY’06 the Toyota South Africa minimum wage for Skill level 1was R24.92 per hour, which is 57% more than the local entry level minimum wage.
• In FY’07, this increased to R27.16 per hour, 56% more than the local equivalent.
• In FY’06, females earned on average 10% less than their male colleagues, at the equivalent level. This has improved to 1%, and the difference may simply be a function of length of service.
• The percentage of staff covered by collective bargaining agreements has increased by 10% in the years covered by this report, from 77% to 87%.
• Career development and performance reviews are currently undertaken for Bands 10-11 and upward. In 2009, career development reviews will be introduced to bands 8-9 and upward, and then in 2010, from bands 5-6 and upwards. Many departments already provide performance review for Bands 5-6 and upward.
• A long term review of all occupational diseases revealed that there has been a 97% reduction in noise induced hearing loss, a 91% reduction in lung diseases, and a 94%reduction in other occupational diseases since the beginning of the decade.
• Solicited feedback from people who have required medical treatment on site has revealed that access to first aiders and first aid equipment needs to be addressed as a shortcoming in our medical services.
• A review of all EAP cases since 1995 revealed that over 70%of people that made use of EAP’s services remain in service.
• Making use of Careways staff, we now employ 6 full time social workers, allocated to specific divisions, to allow for more effective interventions.
• In 2005, the number of people availing themselves of VCT was 689. In 2007, this had risen to 1,578.
• Treatment of tuberculosis has been introduced on site using the Direct Observed Treatment Short course (DOTS) programme, where medical staff observes people taking their medication for TB. The current cure rate for TB is higher than the 80% target.
• With the cooperation of the Unions, random gate tests were implemented. If workers are found to be under the influence of drugs or alcohol, Toyota renders a supportive service to get these staff members onto relevant dependency programmes. This substance abuse programme has resulted in a significant decrease in positive gate tests for alcohol abuse since 2006.
• We are focusing on a company-wide safety risk reduction programme called Sou-Tenken, concentrating on the Stop-6 risks. The effectiveness of this process is evident in that the more risks that have been identified, the fewer the related incidents. An increase of 65%in the risks identified, resulted in a 66% drop in related lost work cases.
• We report with sincere sorrow the deaths of two people at Prospecton; an employee in FY’06, and a contractor in FY’07. Racking standards and exposure protocols have been introduced, as have contractor work permits to accommodate the use of cherry pickers.
• The past 2 years have seen a 47% and 16% improvement in the lost work case frequency rate respectively: FY’05 = 3.86; FY’06 = 2.05; FY’07 = 1.72.
• Following a serious injury in our Press Plant, with the assistance from Toyota Motor Corporation, improved the lock-out and guarding protection on all hazardous machinery to the cost of over R20 million.

Toyota undertakes supplier audits that are risk based, and include safety, health and environmental criteria. A supplier support programme is in place and suppliers are required to supply certificates proving that they comply with ISO14001, ISO9002 and as far as SOC’s are concerned, must provide approved laboratory certificates.

74% of dealers met ECO I status by the end of 2007, a remarkable improvement from the 48%in 2006. All Lexus, Prius, Mega and Supermega dealers have been set a target of achieving ECO III status by the end of 2008. R2.05 billion will be spent by 2010 on the revamping of dealerships. To date:

We consider that our biggest contribution to society is to be made locally, in the communities with whom we directly interact. One way in which we are addressing this is the translation of the Toyota Motor Corporation focus on traffic safety into local conditions, through for example, support for the “No. 1 Taxi Driver” competition. Other programmes that contribute to traffic safety include:

• Introductory and Advanced 4x4,
• On-road/Off-road,
• Defensive and Tactical Driving,
• Dynamic Handling / High Performance,
• and Hijack Prevention training.

We engage with our communities through a variety of structures and media including for social and environmental impact assessments.

• No complaints were received during the reporting period from communities surrounding our manufacturing activities.
• We have five focus areas for community development, namely education, youth and skills development, SMME development, environmental management and health and welfare. We spent a total of R11.2million in FY’07 on these initiatives.
• Our Corporate Social Investment programmes are divided in local, regional, provincial and national projects.

Toyota South Africa manages and/or contributes to the following community projects: