BACKGROUND
It was at the dawn of 1994 when the first shares was distributed to workers in the company. Shares was issued to a wide range of staff from supervisory level up to senior management. A total of 28 employees was involved in this historical move which has also marked a change in attitude from the side of employees. The feeling of being a co-owner has brought new meaning to life for these employees who in return has now understood the value of their contribution towards making a success of the company. This was initiated by Mr. Karsten (Snr.) and it has definitely set a new trend of rewarding for excellence and giving effect and an alternative definition to the word empowerment. It has also happened at a very historic turning point in our countries history which was filled with lots of uncertainty and hope. This move has certainly marked a path of hope and prosperity. A part of a family business has now been giving to people who initially came to seek for employment and nor did they now they will be exposed to words such as dividends and shareholding.
FURTHER DEVELOPMENTS
Again in 1998 and 1999 respectively shareholding for workers was extended with the inclusion of another 320 employees as shareholders in the company. This was again made possible with the assistance from government through the equity scheme for farm workers. The shares was held in a trust called the Yarona Trust. Yarona is a Tswana word which is an African indigenous language simply meaning, it's ours. A choice which was made by the people for the people. Yarona Trust also has an elected trustee who sits on the board of directors on behalf of the other beneficiaries (shareholders). The trust deed also makes provision for the re-election of the current trustee or the election of a new trustee over a period of two years. Shareholders (beneficiaries) in Yarona Trust are based on different farms which is owned by the company. They are also entitled to receive dividends if so declared by the board of trustees of Yarona Trust.
OUR LATEST MOVE
The 23rd of October 2003 has seen one of the largest black empowerment projects in agriculture in South-Africa been launched as an agreement was signed between Karsten Farms and the IDC (International development corporation) calling to life Keboes Fruit Farms. Keboes is situated about 260 kilometres from Upington next to Onseepkans very close to the Namibian border. So close that it's only the river which serves as the border line indicating where the farms stops on the one side. The project was started off on the farm called Raap & Skraap which use to be part of Karsten Farms but now stands separately as a company on it's own namely Keboes. A 50 % (fifty percent) of Keboes Fruit Farms is black owned with partners such as the BMFI (Black Management Forum Investments Company) and the workers, and the other half is owned by Karsten Farms.
The black management forum Investments company owns a 27 % share in Keboes and the workers owns a 23 % share/interest. Karsten Farms owns a 50 % share/interest in Keboes Fruit Farms. The 23 % share will also be vested in a Trust which will give effect in seeing that the workers will now be beneficiaries of a Trust in return own shares in Keboes Fruit Farms.
In order to ensure that an open and transparent process was followed in the distribution of shares in Keboes amongst the workers, an advert was drawn up in an attempt to invite all employees to apply for shares in Keboes. A selection criteria was put into place for the simple reason not to discriminate against any applicant. If an employee has applied in writing on the prescribed application form and meets the requirements set by selection criteria than he/she autimatically qualifies. This again has sparked the opportunity for another 380 employees to become shareholders in Keboes Fruit Farms. Here again there is an elected trustee who will sit on the board of directors on behalf of the beneficiaries (shareholders).
Shareholding by the workers has become a way of life in our company. We believe that our employees are our biggest assets and it is therefore important that we always strive to do the best we can to support and empower our people to take their rightful position in society.
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