A MUCH-NEEDED STEEL DEVELOPMENT FUND SQUEEZED INTO … · 2017-10-11 · THROUGHCnr Rustenburg Road...

1SEIFSA NEWS | MARCH / APRIL 2017

STRENGTH THROUGH A CRISIS

A MUCH-NEEDED

SQUEEZED INTO A CHALLENGING NATIONAL BUDGET

STEEL DEVELOPMENT FUND

IT IS PARAMOUNT TO MATCH TRAINING WITH SOCIO-ECONOMIC NEEDS

NEWSS E I F S A

MARCH / APRIL 2017

2 SEIFSA NEWS | MARCH / APRIL 2017

HEAD OFFICEmerSETA House,95 7th

Avenue,Cnr Rustenburg RoadMelvilleJohannesburg, 2092

Tel: 010 219 3000Fax: 086 673 0017

EASTERN CAPE

14-20 Pickering StreetNewton Park,Port Elizabeth, 6045

Tel: 0861 637 734Fax: 041 363 0144

GAUTENG SOUTHmerSETA House,95 7th


Tel: 010 219 3000Fax: 086 673 0017

GAUTENG NORTH & NORTH WESTAutomotive Supplier Park,30 Helium RoadRosslyn Ext. 2Pretoria, 0200

Tel: 0861 637 731Fax: 0866 700299

FREE STATE & NORTHERN CAPE 46 Second

AvenueWestdeneBloemfontein, 9300

9b Roper StreetKimberley, 8301

Tel: 0861 637 733Fax: 051 447 8873

KWAZULU-NATAL149 Essenwood,149 Stephen Dlamini RoadMusgraveDurban, 4001

Tel: 086 163 7736Fax: 031 201 8732

LIMPOPO & MPUMALANGA1st Floor, No.8 Corridor Crescent Route N4 Business ParkBen Fleur Ext 11, Witbank, 1040

Tel: 0861 637 735Fax: 013 656 4629

WESTERN CAPE

Bella Rosa Road, Bellville, 7530

Tel: 0861 637 732Fax: 021 914 8131

CALL CENTRETel: 086 163 [email protected]

WE CARE:It’s about caring for people we render services to

WE BELONG: It’s about working together with colleagues

WE SERVE: It’s about going beyond the call of duty

LEADERS IN CLOSING THE SKILLS GAP

merSETA Social @mersetasocial www.merseta.org.zaw

“PAST, PRESENT AND FUTURE”

The merSETA is the Manufacturing, Engineering and Related Services Sector

Education and Training Authority, established through the Skills Development Act

of 1998 (as amended). The merSETA facilitates skills development in the following

sub-sectors: Metal and Engineering, Auto Manufacturing, Motor Retail and

Components Manufacturing , New Tyre Manufacturing and Plastics

Manufacturing.

VISIONLeaders in closing the skills gap

MISSIONTo increase access to high quality and relevant skills development and training opportunities to support economic growth in order to reduce inequalities and unemployment and to promote employability and participation in the economy.

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_chromalin_SEIFSA_Advert_November2016

Wednesday, November 02, 2016 1:22:26 PM


PublisherSteel and Engineering Industries Federation of Southern Africa (SEIFSA)

AdvertisingKristen Botha | [email protected](011) 298-9455

EditorIsrael MlamboTel: (011) 298-9411 | Fax: (011) 298-9511 E-mail: [email protected] PO Box 1338 | Johannesburg, 2000

Design and layoutZandile NgubeniTel: (011) 298-9421E-mail: [email protected]

ISSN - 1560 - 9049

CONTENTSMarch / April 2017

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Circulation:3 300 (Not certified)Opinions expressed in the articles do not necessarily reflect the views of SEIFSA. Similarly, advertising in this publication does not imply endorsement or approval of any such products or services by SEIFSA. While every attempt is made to ensure the accuracy and correctness of the information contained in this publication, SEIFSA accepts no liability for any losses or damages sustained through the use thereof. Articles may only be reproduced with permission.

AdvertorialsWhen a company logo appears with an article, it indicates that the article has been commissioned by the company.

SEIFSA News is an exclusive membership benefit.

SEIFSA News is distributed free of charge to all members in the metal and engineering industry. It is also available on an annual subscription basis to members requiring more than one copy.

6 issues published annually.

Members – 1 free issueAdditional copies – R21.00 per issue (incl VAT)Non-members – R225.00 per annum (incl VAT)

Prices valid from 1 July 2016 until 30 June 2017.

Subscriptions July Malakoane Tel: (011) 298-9418E-mail: [email protected]

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Strength through a crisis

A much-needed steel development fund

It is paramount to match training with socio-economic needs

STRENGTH THROUGH A CRISIS

A MUCH-NEEDED

SQUEEZED INTO A CHALLENGING NATIONAL BUDGET

STEEL DEVELOPMENT FUND

IT IS PARAMOUNT TO MATCH TRAINING WITH SOCIO-ECONOMIC NEEDS

NEWSS E I F S A

MARCH / APRIL 2017 During the metals and engineering sector crisis, companies of various sizes have shutdown with the resultant job loss whilst others have seen their revenues decrease.

However, in the same crisis, there are companies that have stayed afloat and even experienced some levels of growth.

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SEIFSA Board Committees

Well-attended regional breakfast roadshows strengthen SEIFSA and member companies’ relations in a crucial negotiations year.

SEIFSA remains confident of its metals and engineering sector growth forecast for the year

Managing HIV/AIDS in your WorkplaceIndustry veteran Michael Pimstein

w w w . s e i f s a a w a r d s . c o . z a

SEIFSAAWARDS for

EXCELLENCE2017

In partnership with

Support Excellence: Sponsor the SEIFSA Awards for Excellence 2017

Take your marketing and branding to a higher level of awareness with a sponsorship package that suits your budget and needs.

Sponsorship amounts are scalable and allow any-size company to achieve a level of recognition. Should you have any questions, please do not hesitate to contact our Sales and Marketing Manager, Ms. Nuraan Alli on 011 298 9436 or [email protected].

HAS YOUR COMPANY EXCELLED IN 2016

ENTER THE SEIFSA AWARDS FOR EXCELLENCE NOW

SEIFSA invites you to submit entries to one or more of the seven categories of the Annual SEIFSA Awards for Excellence, now in its 3rd year.

Category entering – maximum two entries permitted

Most Innovative Company Of The Year

Best Corporate Social Responsibility Programme Of The Year

Most transformed company of the Year

Environment Stewardship Award Of The Year

Health and Safety Award Of The Year

Customer Service Award Of The Year

Artisan Award Of The Year

25 May 2017 IDC Conference CentrePlease submit your entry or entries to reach SEIFSA on or before 17H00, Thursday, 13 April 2017.

Sponsor: Merseta Artisan Award of the Year

HEAD OFFICEmerSETA House,95 7th


Tel: 010 219 3000Fax: 086 673 0017

EASTERN CAPE

14-20 Pickering StreetNewton Park,Port Elizabeth, 6045

Tel: 0861 637 734Fax: 041 363 0144

GAUTENG SOUTHmerSETA House,95 7th


Tel: 010 219 3000Fax: 086 673 0017

GAUTENG NORTH & NORTH WESTAutomotive Supplier Park,30 Helium RoadRosslyn Ext. 2Pretoria, 0200

Tel: 0861 637 731Fax: 0866 700299

FREE STATE & NORTHERN CAPE 46 Second

AvenueWestdeneBloemfontein, 9300

9b Roper StreetKimberley, 8301

Tel: 0861 637 733Fax: 051 447 8873

KWAZULU-NATAL149 Essenwood,149 Stephen Dlamini RoadMusgraveDurban, 4001

Tel: 086 163 7736Fax: 031 201 8732

LIMPOPO & MPUMALANGA1st Floor, No.8 Corridor Crescent Route N4 Business ParkBen Fleur Ext 11, Witbank, 1040

Tel: 0861 637 735Fax: 013 656 4629

WESTERN CAPE

Bella Rosa Road, Bellville, 7530

Tel: 0861 637 732Fax: 021 914 8131

CALL CENTRETel: 086 163 [email protected]

WE CARE:It’s about caring for people we render services to

WE BELONG: It’s about working together with colleagues

WE SERVE: It’s about going beyond the call of duty

LEADERS IN CLOSING THE SKILLS GAP

merSETA Social @mersetasocial www.merseta.org.zaw

“PAST, PRESENT AND FUTURE”

The merSETA is the Manufacturing, Engineering and Related Services Sector

Education and Training Authority, established through the Skills Development Act

of 1998 (as amended). The merSETA facilitates skills development in the following

sub-sectors: Metal and Engineering, Auto Manufacturing, Motor Retail and

Components Manufacturing , New Tyre Manufacturing and Plastics

Manufacturing.

VISIONLeaders in closing the skills gap

MISSIONTo increase access to high quality and relevant skills development and training opportunities to support economic growth in order to reduce inequalities and unemployment and to promote employability and participation in the economy.

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Wednesday, November 02, 2016 1:22:26 PM

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Mandatory Grant submissions 2017/18 are due 30 April 2017

2017/18 Skills Develeopment ChecklistSEIFS enters into alliance partnership

SEIFSA welcomes the National minimum wage announcement

OHS Risk Assessment is a must


cEO’S dESK

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The past few months have been very hectic for the SEIFSA team, especially for Operations Director Lucio Trentini, Chief Financial Officer Rajendra Rajcoomar

and myself. Supported by a great team led by Associations Manager Theresa Crowley, we have been involved in a series of meetings with General Managers, Managing Directors and Chief Executive Officers of companies that were members of the South African Engineers and Founders Association (SAEFA).

Although these engagements began some months ago, they have accelerated since 1 December 2016 when we were informed by the Chairman of that Association that, at its Special General Meeting a day earlier, SAEFA had decided to resign from the 74-year-old Federation. In addition to these meetings with leaders of companies that are/were members of that Association, we have also held regional roadshows on the East Rand, the West Rand, the Midrand area, Johannesburg and the Vaal Triangle to talk about the SEIFSA membership value proposition and to ask companies to remain within the SEIFSA family.

At the time of writing, colleagues and I were still in the middle of this process. However, we have been very well received by the companies with which we have held meetings so far and our regional roadshows have been well attended. Indeed, the

FROM THE cHIEF EXEcUTIVEOFFIcER’S dESK

number of former SAEFA member companies that have switched to other SEIFSA-affiliated Associations collectively employ by far the majority of the employees working for companies that were members of SAEFA before the unfortunate 30 November 2016 de-federation decision.

Given the importance of this matter not only to the companies concerned, but also to the entire SEIFSA family and, indeed, the metals and engineering sector, I have decided to deal comprehensively with the SAEFA resignation in my column in this issue of SEIFSA News. I do so in the form of a question-and-answer interview for the benefit of any interested stakeholders and, indeed, those companies that have yet to make the decision to remain affiliated to an Association that continues to be part of the SEIFSA family.

WHy dId SAEFA RESIgN FROM SEIFSA?

For some time now, the Association has not been aligned with SEIFSA and its member Associations on a number of issues. These include approaches on the position of the financially-challenged Metals and Engineering Industries Bargaining Council and extension of collective agreements to

5SEIFSA NEWS | MARCH / APRIL 2017 5

non-parties, among others. The SEIFSA constituency regards the MEIBC as an important institution whose survival is vital for industrial stability in the sector, and believes that ideally collective agreements reached by the majority of parties in negotiations should be extended to non-parties, while SAEFA holds different views on these issues.

WERE THE dISAgREEMENTS OF SUcH A NATURE THAT THEy cOUld NOT HAVE BEEN SOlVEd?

To the end, we believed strongly that a way could be found to ensure alignment between the SAEFA leadership and SEIFSA. After all, for many years SAEFA was one of the most loyal members and ardent supporters of the Federation. Things started to change when the current leadership of SAEFA was elected two years ago. Regrettably, despite numerous efforts by the SEIFSA Executive Team and the Board to resolve differences with the Association, in the end some in the SAEFA leadership campaigned actively and aggressively for the Association to resign from SEIFSA, South Africa’s oldest and largest employer representative in the metals and engineering sector.

We understand that the SAEFA leadership has been critical about the way in which SEIFSA has been led and has alleged that the organisation has failed to implement mandates from its members. How do you respond?

Yes, some in the top leadership of SAEFA have, indeed, made a series of unfounded allegations against SEIFSA and have been very reluctant to accept incontrovertible facts that disprove their allegations. It is important to note that these allegations have been made by some individuals, and not by the entire Association or all of those in its leadership, and that they are both malicious and baseless.

For the record, SEIFSA is strictly a mandate-driven organization. The Federation derives its mandates from its members, which meet in an assembly of Associations called the SEIFSA Council, to debate matters and agree on a common position that becomes the Federation’s mandate. This has always been the way in which the Federation has operated. When there is no unanimity among member Associations on any matter, the majority position adopted at the SEIFSA Council becomes SEIFSA’s mandate on that matter.

SAEFA HAS AlSO AllEgEd THAT SEIFSA HAS NOT BEEN AS VIRUlENTly OUTSPOKEN AS NEASA AgAINST THE UNIONS ANd THE gOVERNMENT. HOW dO yOU RESPONd?

For a start, unlike others, SEIFSA does not consider the Government and labour as enemies. Instead, we view them as

important stakeholders with whom we have to work cooperatively to advance the interests of our sector and to grow the country’s economy. Where we disagree with either stakeholder group, we say so boldly, and when we agree with them on any matter, we work with them as enthusiastic partners.

Secondly, SEIFSA is a federation representing employers throughout the broad metals and engineering value chain. These range from primary steel producers through to metal fabricators, and from small companies employing anything up to 50 people to large, listed or multi-national companies in different sub-sectors of the metals and engineering sector with thousands of employees. Given this vast and diverse constituency, SEIFSA does not easily and readily make public pronouncements on matters in a manner that organisations representing only employers of a particular kind can or do. When it makes public pronouncements, SEIFSA endeavours to represent the views of all – or most – of its constituency. That calls for great circumspection, which is not the case with the organization to which we are being unfairly compared.

HOW WIll SAEFA’S RESIgNATION AFFEcT SEIFSA?

Unfortunately, SAEFA’s resignation weakens the Federation at a time when greater unity of purpose is required among employers to solve the challenges that confront the sector, including the welfare of the MEIBC and the 2017 negotiations on wages and conditions of employment. To that extent, the resignation affects SEIFSA.

However, the Federation still represents 25 loyal employer Associations, which collectively employ the majority of factory workers (in excess of 150 000) in the metals and engineering sector. It remains the authoritative voice of employers in the sector, represents them in collective bargaining and lobbies on their behalf. It remains the only employer representative in the sector with healthy relations with all stakeholders, including labour and the Government, and believes firmly that it will take a solid partnership among Government, business and labour to get South Africa to realize its economic potential.

HOW MANy cOMPANIES ARE MEMBERS OF SAEFA (ANd ARE All OF THEM lOST TO SEIFSA)?

Just over 500 companies were members of SAEFA. Many of them were unhappy with the decision taken by the Association’s leadership and have since resigned from the Association because they want to remain part of SEIFSA. We expect many more to do so in the weeks and months to come. These companies are joining some of the existing SEIFSA-affiliated Associations, while others are planning to form new Associations that will be affiliated with SEIFSA. We expect at


least 300 of these companies (60%) to continue to be part of the SEIFSA family. Collectively, these companies employ by far the vast majority of employees within that Association.

Many companies want to remain within SEIFSA for many reasons, apart from the fact that most of them have had a strong, productive association with the Federation over the years (in the case of some companies, for longer than 50 years). They know that, unlike any other employer organization in the sector, SEIFSA has unequalled experience in collective bargaining, employs qualified and experienced subject-matter experts in a number of Divisions (e.g. Economics and Commercial; Industrial Relations and Legal Services; Human Capital and Skills Development; Safety, Health, Environment and Quality, etc.) and offers a series of important products and services (like the unique SEIFSA Prices and Index Pages) which they access at a discounted price.

WIll SEIFSA ANd SAEFA AdOPT AdvErSArIAl PoSItIoNS IN thE 2017 NEgOTIATIONS ON WAgES ANd cONdITIONS OF EMPlOyMENT?

SEIFSA’s philosophy is to work constructively and cooperatively with all stakeholders, whether they be fellow employer organisations or labour unions. That will continue to be our approach not only to the 2017 Negotiations, but to all other matters in which we are involved. We may have differences with the current leadership of SAEFA, but we do not see them or their Association as an enemy. Our approach to these matters is professional, and not personal. We will work with all employer parties within the MEIBC when we are in agreement on issues,

as we have always done, and we will advance SEIFSA’s views and interests when there is no agreement with fellow employer parties.

WHAT WOUld yOU SAy ARE THE MAIN dIFFERENcES BETWEEN SEIFSA ANd SAEFA?

We are comfortable to talk about what we (SEIFSA) stand for, and not so much what others stand for. Fundamentally, SEIFSA believes in:

• working closely with our member Associations to further their interests;

• effective lobbying of (or with) stakeholders (Government, business and labour) to advance the interests of our members;

• constructive collective bargaining which results in a win-win outcome that leads to an internationally competitive metals and engineering sector that can preserve – and even create – jobs;

• working with labour, as partners, to solve the challenges which confront the sector, including its non-competitiveness, and to lobby policy makers together in the interest of the sector; and

• a solid, collaborative partnership among Government, business and labour.

Kaizer M. NyatsumbaChief Executive Officer

SEIFSA BOARd cOMMITTEES

AUDIT AND RISK MANAGEMENT COMMITTEEChairperson : Mr. Alph NgapoMember : Mr. Leon Viljoen REMUNERATION COMMITTEEChairperson : Mr. Oupa Komane Member : Mr. Elias Monage

SOCIAL AND ETHICS COMMITTEEChairperson : Mr. Pieter du PlessisMember : Mr. Anthony Boy

Bridget Mokoetle, Company Secretary said: “I would like to

congratulate all the committee chairpersons and members in this regard and on behalf of the secretariat, we look forward to being of service to you.”

THE FOllOWINg ARE MEMBERS OF EAcH BOARd cOMMITTEE FOR SEIFSA, WhIch WErE ElEctEd At A boArd mEEtINg hEld oN 6 FEbruAry 2017.

cEO’S dESK


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SEIFSAAWARDS for

EXCELLENCE2017

In partnership with

Support Excellence: Sponsor the SEIFSA Awards for Excellence 2017

Take your marketing and branding to a higher level of awareness with a sponsorship package that suits your budget and needs.

Sponsorship amounts are scalable and allow any-size company to achieve a level of recognition. Should you have any questions, please do not hesitate to contact our Sales and Marketing Manager, Ms. Nuraan Alli on 011 298 9436 or [email protected].

HAS YOUR COMPANY EXCELLED IN 2016

ENTER THE SEIFSA AWARDS FOR EXCELLENCE NOW

SEIFSA invites you to submit entries to one or more of the seven categories of the Annual SEIFSA Awards for Excellence, now in its 3rd year.

Category entering – maximum two entries permitted

Most Innovative Company Of The Year

Best Corporate Social Responsibility Programme Of The Year

Most transformed company of the Year

Environment Stewardship Award Of The Year

Health and Safety Award Of The Year

Customer Service Award Of The Year

Artisan Award Of The Year

25 May 2017 IDC Conference CentrePlease submit your entry or entries to reach SEIFSA on or before 17H00, Thursday, 13 April 2017.

Sponsor: Merseta Artisan Award of the Year


cOVER

A member of the SA Electro-Plating Industries Association, Team Plating Works cc is a family-run business which Tony says has avoided the crisis effects by focusing on providing

good quality and service and specializing to customers’ requirements. With his two children, Gary and Tracy, central to the business and its management style – which fuses Tony’s hard-and-fast approach with a more consultative philosophy, the company has managed to operate at full capacity and operates 24/7. Tony is also a Chairman of SA Electro-Plating Industries Association. The other contributing factor to the protection and health of the business, explains Tony, is that the company’s “clientele is solely local and we are not directly affected by Chinese cheap steel imports.”

the metals and engineering sector has been battered for a few years and is not yet out

of the woods although stakeholders’ efforts are starting to show some positive changes.

during this crisis, companies of various sizes have shutdown with the resultant job loss

whilst others have seen their revenues decrease.

however, in the same crisis, there are companies that have stayed afloat and even

experienced some levels of growth. team Plating Works cc, led by tony Joseph, is one

of the companies that fielded off the difficulties of the crisis.

Even though some of Team Plating Works’ clients import ready-plated articles such as fasteners and small machined parts which could be manufactured locally, Tony is glad that his factory still books orders from these clients for customising. He explains why: “Most of the plated fasteners that are imported are restricted to the very small-sized fasteners and self-tapping screws plated in Zinc plus a clear passivation only. If customers require a colour variant such as yellow, green or black, then these fasteners and self-tappers have to come to us for modification.”

This unique differentiator fuels production and boosts the company’s order book, cushioning the industry challenges. “Over the past few years

THROUgH A cRISISStrEngth


we have only experienced a few months’ drop in production and in actual fact have recorded monthly record figures since January 2016 and indications are that this will be the case for the year ahead,” says Tony.

The company has been in operation since May 1974 and has experienced the various cyclical difficulties of the sector.

Besides labour expenses due to overtime, what really frustrates Tony’s production and growth prospects are municipal limitations for support with more electricity supply and the high municipal water and electricity charges. “We are at full capacity and work 24/7, which has become a little expensive with regards to overtime and related issues. However, our intention is to increase our capacity by 40% this year but we find it difficult to finance the exorbitant charge levied by the municipality to increase our electricity supply from 125Amps per phase to 200Amps per phase,” says Tony.

On costs regarding electricity, he has received a quotation of R150 000 from the council plus a R60 000 increase in electricity deposit in order for them to supply the necessary electricity. Since the existing cable has the capacity to carry 250APM per phase, he has estimated that the cost of the change-over should not exceed R10 000. Tony is negotiating with the relevant municipal departments in an endeavour to arrive at a mutually beneficial solution.

“Should we be successful with extensions to our capacity, my intention is to employ two more people to assist in production. Two new employees would represent about 11% increase in my labour force. Team Plating Works presently employs 18 people in the workshop and two office assistants, excluding Tony and his two management members.”

Adding to the challenges, says Tony, is that there are many smaller electro-plating establishments in the country that are neither registered with the MEIBC or with municipalities. “These so-called ‘hole in the wall’ platers are destroying the industry for reputable electro-platers who are at a distinct disadvantage having to pay levies, pensions, UIF, effluent charges, scheduled wages, bonuses and holiday pay,” explained Tony.

Asked about his personal management style which contributed to running a great business, Tony says: “I am by nature autocratic and find it hard to delegate. However, the advent of my son and daughter into the business has seen the emergence of a more consultative management style with many decisions taken after consultation between management and staff. The firm has a very fine balance between the new and the old which seems to work exceptionally well”.

An optimistic individual and big-picture thinker, Tony says that the economic indicators point to an upturn – a view that SEIFSA has held for the 2017/2018 period particularly for the metals and engineering sector. “I think all that is required is better political leadership and pro-business sentiments coming from politicians and for them to make the necessary decisions for the improvement of the economy no matter how unpalatable they may be to a socialist ideology,” says Tony.

Nevertheless, he remains defiantly positive and sees opportunities to be had: “I am convinced that the economy will show a turnaround and am preparing for such an approaching eventuality”.

Tony Joseph of Team Plating cc


INdUSTRy NEWS

Well-attended regional breakfast roadshoWs STRENgTHEN SEIFSA ANd MEMBER cOMPANIES’ RElATIONS IN A cRUcIAl NEgOTIATIONS yEAR.

As all employers in the sector know, 2017 is a crucial year for the metals and engineering sector. It is a year when negotiations on wages and conditions of employment will take place ahead of the expiry in June 2017 of the three-year Settlement Agreement

reached in 2014.

The Federation has held several welcomed roadshows by way of breakfast sessions with member companies in which the SEIFSA team, including its executives, unpacked the wage negotiations and the State of the Metals and Engineering Sector Report 2017/2018.

“We have held regional roadshows on the East Rand, the West Rand, the Midrand area, Johannesburg and the Vaal Triangle to talk about the SEIFSA membership value proposition – and we have seen companies appreciate this outreach. Some of the roadshows have had in excess of 100 company representatives attend,” said SEIFSA CEO Kaizer Nyatsumba.

The successful roadshows were in addition to meetings with leaders of companies regarding maintaining and sustaining relationships with them.


General purpose machinery recorded the most impressive year-on-year growth rate at 13.7%, followed by basic iron and steel products at 9.8%

“The data set released by Statistics South Africa today marks the first data set that we can compare against our simulated model for 2017. Directionally, our simulation for 2017 is 76% in line with the data released today,” said Mr Chibanguza.

He said that although it was still too early in the year to draw concrete conclusions, SEIFSA remained confident that 2017 will be a turning point for the metals and engineering sector, with the forecast 1.4% growth likely to be realized.

seifsa reMains cONFIdENT of its METAlS ANd ENgINEERINg SEcTOR gROWTH FOREcAST for the Year

The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) today expressed confidence that its forecast of a 1,4% growth in the metals and engineering sector for the year remains realistic.

SEIFSA Senior Economist Tafadzwa Chibanguza said the data released by Statistics South Africa (StatsSA) today – which confirmed a 0,4% year-

on-year expansion in the sector in January 2017 and a 1% contraction between December 2016 and January 2017 – show that although 2017 is a turning point, nevertheless there were still potential downside risks. The December 2016-January 2017 contraction was an affirmation of that risk.

Mr Chibanguza said that the most severe contraction on a year-on-year comparison was experienced in other transport (-21%), structural metal products (-14%), electrical machinery (-6%), motor vehicle trailers and semi-trailers (-6%) as well as plastic products (-5.3%).


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- Alos Holdings (Pty) Ltd- Amani Industrial Services- AMT Placement Services- BathusiStaffingServices(Pty)Ltd- BDM Management (Pty) Ltd- CAP Personnel Placements (Pty) Ltd- Capacity Outsourcing (Pty) Ltd – a Division of ADCORP- Capital Outsourcing Group- CDR Contracts (Pty) Ltd- Consortium Personnel Consultants) cc- Eduardo Construction (Pty) Ltd- ESG Recruitment cc- Global Industrial Consultants cc- Global Isizwe Placements cc- Inqaba Services (Pty) Ltd- International Task Labour cc- Khuboni Placements (Pty) Ltd- Lapace Construction (Pty) Ltd- M & S Projects- Mabhele and Associates cc- Molapo Quyn Outsourcing (Pty) Ltd - Monyetla Services (Pty) Ltd- Parsons Engineering cc- Phakisa Technical Services (Pty) Ltd - Primeserv ABC Recruitment (Pty) Ltd- Primeserv Staff Dynamix (Pty) Ltd- Quyn International Outsourcing (Pty) Ltd- Scribante Labour Consultants (Pty) Ltd- Sebcon Contracting Services cc- Seven Stars Investments (Pty) Ltd- SizuluntuStaffingSolutions(Pty)Ltd- SizweStaffingSolutions(Pty)Ltd- Staff-U-NeedadivisionofAdcorpStaffing- Swift Human Resources (Pty) Ltd- Transman (Pty) Ltd- Valorem Recruitment (Pty) Ltd.

CEA (LBD) AccREdITEd cOMPANIES as at 13 februarY 2017

seifsa WelCoMes nEW MEMBErSthe following companies became members of associations federated to SEIFSA during February - march 2017

AL & AD MAchinery ccAssociation of Metal Service Centres of South Africa

KAMvA Project engineers & constructors (Pty) LtDAssociation of Metal Service Centres of South Africa

QuAD rAcKs & cAbLesAssociation of Metal Service Centres of South Africa

Ar Process Projects (Pty) LtD.Constructional Engineering Association (South Africa)

bAbAnAngo recruitMent services ccConstructional Engineering Association (South Africa)

nALco AfricA (Pty) LtDConstructional Engineering Association (South Africa)

AfriLeK AutoMAtion (Pty) LtDElectrical Engineering and Allied Industries Association (EEAIA)

DeneL AerostructuresElectrical Engineering and Allied Industries Association (EEAIA)

PLAntech consuLting engineersElectrical Engineering and Allied Industries Association (EEAIA)

unicA iron AnD steeLIron and Steel Producers’ Association of South Africa (ISPA)

KAeser coMPressors s A (Pty) LtDLight Engineering Industries Association of South Africa

Ahi-cArrier south AfricA (Pty) LtDRefrigeration & Air Conditioning Man & Suppliers Association

rito AirconDitioningSARACCA

sfi grouP (Pty) LtDSARACCA

bonec LubricAtion services (Pty) LtDSEIFSA Associate Membership

gregory grAnt t/A tiMes tAbLesSEIFSA Associate Membership

internAtionAL cheMicAL sPeciALitiesSEIFSA Associate Membership

rustenburg cheMicALs (Pty) LtDSEIFSA Associate Membership13SEIFSA neWs | MARcH / APRIl 2017


A MUcH-NEEdEd STEEl dEVElOPMENT FUNd SqUEEZEd INTO A cHAllENgINg NATIONAl BUdgET

There is no doubt that preparing the budget under the current economic climate was a very challenging exercise. Moreover, recent socio-economic

developments particularly the students uprising related to fees would have made preparing the budget that much more difficult.

The process is a delicate balancing act between maintaining spending commitments (higher education, health and social grants), while ensuring responsible management of public finances. The third variable to add into the mix is the ratings agencies who will also be watching keenly how national treasury mauves these dense pressures.

An opening remark Finance Minister Pravin Gordhan often prefaces his response in media (or other interviews), is that; you can never please everyone with a national budget. A fair point, however, that said; SEIFSA welcomed the 2017 budget with particular excitement related to the announcement of a R95 million allocation for the establishment of a Steel Development Fund.

SEIFSA representatives were fortunate to be in Parliament on the day of the budget, which provided us the opportunity to interact with National Treasury officials on various aspects of the budget – including the Steel Development Fund.

This brief report details our analysis of the budget, particularly focusing on those issues of keen interest to the metals and engineering sector.

Our overarching assessment of the budget is that it is heavily skewed in favour of the social expenditure at the expense of expenditure into productive sectors of the economy. The obvious limitation of this approach is that it reinforces the need to resort to short-term solutions (like taxes) to plug the shortfalls, which penalises a few in order to satisfy the never-ending social demands.

Investing in the productive sectors of the economy (like manufacturing), would create a strong asset base that would be able to sustainably cater to some of the social demands, through increased taxes from higher production. Arriving at this end state would be structural process that would in turn require a structural shift in country’s mindset.

BAcKdROP OF THE BUdgET

At the onset of preparing the 2017 budget, a challenge already presented itself in the form of a R30.4 billion revenue shortfall in the 2016/2017 fiscal year. This is largely a function of slower economic growth experienced during this period. To put it in context, this was also the largest underperformance relative to budget estimates since 2009/10 fiscal year.

The government has also committed to a fiscal consolidation path (one which the rating agencies will be watching with great intent), in order to narrow the budget deficit and contain the growth in public debt. In order to meet these objectives, the 2017 budget proposed cutting the expenditure ceiling by R26 billion (R10.2 billion in 2017/18 and R15.9 billion in 2018/19) and raising R28 billion in tax revenue.

EcONOMIc OUTlOOK

There is a general sense of economic optimism for the year 2017, as depicted in table 1 below. The table reflects National Treasury’s assessment of the macroeconomic environment. Except for CPI which is expected to average at the same level between 2016 and 2017, what stands is the evident improvement in all the macroeconomic variables between 2016 and 2017. Given the import intensive nature of the South African economy, increasing imports are reflective of stronger domestic demand – a function of a relatively stronger economy.

EcONOMIc ANd cOMMERcIAl


Table 1: Macroeconomic Performance and Projections

Source: National Treasury

Of importance to the constituency that SEIFSA represents (mostly manufacturers) is the assumptions underpinning National Treasury’s assessment of the improving macroeconomic environment, namely;

1. A relatively weak real exchange rate, which should assist export competitiveness

2. An uptick in commodity prices which is expected to last into 2017

3. An easing in the severe drought conditions experienced during 2016

4. Stabilising electricity supply 5. Improved labour relations, which in National Treasury’s

assessment should improve the operating environment and potentially boost job creation.

This turning point in the global and domestic fortunes create a number of opportunities for policy makers and the country at large, however the recent flare of social demands have the potential to negate or disturb the underlying opportunities.

FIScAl FRAMEWORK

Table 2 below depicts the revenue, expenditure, budget deficit, net total debt and debt serving cost projections under the current and medium term estimates.

Table 2: Consolidated Fiscal Framework


The 2017/18 budget proposes to plug the revenue shortfall through relatively short term measures namely;

1. A new top personal income tax bracket of 45% for taxable incomes above R1.5 million

2. Increases in dividend withholding tax rate from 15% to 20%3. A 30c/l increase in the general fuel levy 4. A 9c/l increase in the road accident fund.

Our focus as SEIFSA is however primarily on the expenditure side of the budget and more importantly on the manufacturing incentives and the planned investment into the economy.

cONSOlIdATEd EXPENdITURE PlANS

Structurally, the national government is on a fiscal consolidation path in order to ensure the sustainability of public finances. The importance of fiscal consolidation is increased in an environment of low economic growth and downside risks to revenue collection exist. Although the size of the net national debt is within relatively reasonable levels, the risk of a sovereign credit downgrade threatens to increase debt servicing costs significantly. The fact that debt servicing costs are already the fastest growing component of government expenditure is a cause for concern, as can be seen in graph 1 below.

Graph 1: Nominal growth in expenditure components


The 2017 budget proposes to spend a total of R 1.56 trillion for the fiscal year 2017/18.

Non-interest expenditure is expected to be R1.39 trillion, with debt servicing costs totalling R162 billion and an allocation for the contingency reserve pegged at R6 billion.

Within this budgeted expenditure are reprioritised resources to the tune of R30 billion, which has been derived from baseline reductions of costs within the sphere of government, revision in social grant projections and drawing down on some reserves

15SEIFSA neWs | MARcH / APRIl 2017


(contingency and National Skills Fund reserves). Higher education will receive just over half (R16 billion) of the reprioritised funds.

Table 3 below details the consolidated government expenditure by function for the current and over the medium term expenditure framework. Economic affairs, which details allocations for developing infrastructure and industry (and of most importance to SEIFSA) are expected to receive 15.3% of the total non-interest expenditure. Within that, industrial development and trade is expected to receive 2.1% (or R 28 billion during FY 2017/18) and economic infrastructure and regulation to receive 6.4% (or R 89 billion during FY 2017/18). In the 2017/18 fiscal year economic affairs will receive R215 billion.

Table 3: Consolidated Government Expenditure by function


STEEl dEVElOPMENT FUNdIt is within the industrial development and trade allocation,

where the allocation for the steel development fund will be housed.

Engagements and suggestions about this fund started in mid-2016, where the Department of Trade and Industry (DTI) and Industrial Development Corporation (IDC) took a keen interest on the metals and engineering sector, more especially to the calls expressing the dire situation faced by the sector. In these engagements, investment (or the lack of) was signalled as one of the most obvious reasons the sector found itself in the dire situation. SEIFSA in alliance with allied partners stressed the fact that incentives into the sector need to also

take the form of investment packages that will assist to raise the competitiveness of companies in the sector.

The R95 million that has been budgeted for this fund is a mid-term expenditure figure, therefore roughly R 31.6 million/year, which will be transferred to the IDC who will in turn manage the fund. The proposed fund size will be R 1.5 billion, in which the balance will be raised by the IDC.

The fund is intended to improve the competitiveness of foundries and steel fabricators in the metals and engineering sector. However, it is our intention as SEIFSA to lobby DTI, IDC and National Treasury for the scope of the fund to be expanded to also include the other sub-industries in the sector, while also raising the proposed amount.

Table 4 below details the rest of the expenditure plans related to economic affairs and infrastructure investment.

Table 4 – Economic Affairs Expenditure


Over the medium term expenditure framework R4.2 billion will be allocated for industrial infrastructure projects, with 32 strategic projects expected to be approved for special economic zones and industrial parks. Over the medium term, R 9.6 billion has been allocated to the Manufacturing Incentive Programme of which 1450 companies are expected to benefit. This amount includes R1.3 billion for bolstering competitiveness.

In a nutshell, the National Treasury has to be commended for putting together a well compiled budget in the current difficult economic environment and with social demands spurring from all angles. The challenge was obviously compounded by their commitment to fiscal consolidation, which they have done a magnificent job at keeping to. There is no doubt this is one budget where difficult decisions had to be made, and in all; we welcome the budget, while still sounding our call for a the need to structurally shift the expenditure to the productive sectors of the economy.

Tafadzwa ChibanguzaSEIFSA Senior Economist, Economics Division

EcONOMIc ANd cOMMERcIAl


Education and skills shortcomings are at the heart of South Africa’s employment crisis – a conundrum where the economy continues to create opportunities for

semi-skilled and skilled workers, while shedding jobs in unskilled areas. This exacerbates poverty and inequality according to Pravin Gordhan in his 2017 Budget Speech. An ongoing challenge for the South African Government is to estimate and anticipate the education and skills needed to support and enable societal development and a productive and inclusive economy for all.

In my opinion basic, further and higher education are predominantly focused on training people for jobs and not work. How can South Africa move forward when unemployment is at 26.5%? Our youth are disengaged and disillusioned having studied in fields or towards careers that aren’t available. In 2011 Census, 3.2 million youths aged between 18- to 29-year-olds were not in employment, education or training (NEETS). In the fourth quarter of 2016 this same age group averaged 43% of the unemployment figure. This does not bode well for showing improvements.

The lack of opportunities to enter the workforce to gain experience, coupled with poor school education and limited networks, consign many young jobseekers to long-term unemployment. South Africa if it wants to succeed and compete with global players needs to urgently look at strategies or initiatives that bring the misplaced youth options and access to opportunities with the skills they have, develop those skills to turn the tides of youth unemployment and create sustainable economic growth – Strategies that focus on artisan development inclusive of a clearly and articulated entrepreneurial focus – those that want to move on and create new businesses be provided with the relevant platforms and networks. Scare skills in the manufacturing environment indicate that Welders, Electricians, Boilermakers and Plumbers, to name a few are in need – what are we doing as a country to enable and support qualified Artisans to start their own businesses? The answer is not much.

Artisans today need to be qualified in ways that draw on both disciplinary and multi-disciplinary knowledge bases. They require diagnostic, problem solving and s specialist skills at high levels of technical complexity. Artisans have to be well rounded individuals as they have to interact and communicate in complex inter-personal and team milieus. Life skills are important too, as is proficiency in

written, spoken, visual and information technology (IT languages) used in the workplace and in technical areas where they work. Broader quality knowledge, skill and dispositional range than what is usually considered technical skills. This allows Artisans to keep up to date with changing employment and technological trends – and in need allow them to become entrepreneurs today growing the companies of tomorrow.

Employers from most sectors within South Africa’s economy are trying to remain afloat in these hard economic times and cannot absorb as many individuals as we would need to for sustainability, in fact many companies are trying to keep the employees they have, opting for no salary/wage increases so that everyone remains employed. South African ranks sixth globally in terms of youth unemployment and 11.75 million individuals within the active labour force have less than a grade 12 certificate. Participating in mechanisms of skills development such as apprenticeships is one of many ways that employers could develop skills that they need whilst improving employability. But trainability is also important – quality of skills are important if as a nation we want to relentlessly and continuously innovate. Every worker should be considered a knowledge worker; technical workers trained to be multi-skilled creative problem solvers using the work (or work-like) environment to contextualize. This would need to be industry driven and focused on specific industry needs.

The legislative environments of skills development, employment equity and B-BBEE whilst aspirational each with their own objectives - aiming for decent work for all, redressing past unfair imbalances and so on –cannot enable or support long term sustainability alone because no matter how articulated and grounded these policies are without a South African Entrepreneurial focus we won’t advance. Perhaps we need to stop and decide as one to rather start prepare individuals, specifically the youth, for work that doesn’t yet exist and technologies that haven’t been invented so we can solve problems we don’t know are problems. This can be done if there is a definitive and concerted effort form all social partners to create quality entrepreneurs reconditioned for the 21st century world of work. Melanie Maulholland SEIFSA Human Capital and Skills Development Executive

IT IS PARAMOUNT TO MATcH trAInIng WITH SoCIo-EConoMIC nEEDS

HUMAN cAPITAl ANd SKIllS dEVElOPMENT



MANdATORy gRANT SubmISSIoNS 2017/2018 are due 30 april 2017

SEIFSA continues to offer assistance to companies in order to enable and support their current Skills Planning and Reporting requirements.

SEIFSA’s skills development and human capital team are adept to assist companies with the preparation and submission of the Workplace Skills Plans (WSP),

Annual Training Reports (ATR), PIVOTAL Plans (PP) and PIVOTAL Training Reports (PTR). The cost for this service will be provided upon request.

Developing and submitting the WSP, ATR, PP and PTR documents serves as-building blocks to developing staff in order to ensure that organisations reach their strategic objectives.

Skills Development Facilitators are reminded of the following:

• The reporting periods for 2017/2018 are the annual training report (ATR) will be for the period 1 January 2016 until 31 December 2016, and the workplace skills plan (WSP) will be for the period of 1 January 2017until 31 December 2017.

• Please note that the merSETA Seta Management System will be available from February 2017. Only electronic submissions will be accepted.

• Where a recognition agreement exists between the organisation and labour/union, immaterial of the size of the workforce, a labour/union representative on the Training Committee is required to sign-off on the grant application on or before the deadline date. This includes PIVOTAL.

• Where a recognition agreement does not exist and the company employs 50 or more employees, an employee


representative on the Training Committee is required to sign-off on the mandatory grant application on or before the deadline date. This includes PIVOTAL.

• The labour/union or employee representatives, whichever is applicable, must submit an application to register via: http://196.4.89.14/cdas/merseta.asp and click on “Register as a Skills Development Facilitator” and follow the prompts.

• Large and medium-sized companies that intend to be considered for discretionary grants for PIVOTAL programmes must submit their mandatory grant application and complete the PIVOTAL plan on or before the deadline date.

• Preference will be given to learners linked to the merSETA identified Priority Skills and the Strategic Infrastructure Projects (SIPs).

• Medium and large companies that intend to be considered for non-PIVOTAL programmes will be required to submit their application via the discretionary grant funding window.

The guide on “How to submit the mandatory grant application” and the SIPs information is also available on the merSETA website - www.merseta.org.za.

For more information on how SEIFSA’s Human Capital & Skills Development team can assist you with your mandatory grant submissions for 2017/2018 please contact us on (011) 298 9400 or visit our website www.seifsa.co.za.

Theory and Calculation of Contract Price Adjustment (CPA)The Theory and Calculation of Contract Price Adjustment Workshop provides a systematic explanation of the full range of indices used in Contract Price Adjustment, practical application of indices and formulas and how to derive the most value from the practice.

EARN CPD POINTS

attend our CPA Courses

Venues

www.seifsa.co.za

Boksburg22 March 2017

SEIFSA JHB12 April 2017

Cape Town20 April 2017

Boksburg26 April 2017

SEIFSA JHB10 May 2017

Boksburg24 May 2017

For more information please contact:Roberta Noise

Junior Economist on 011 298 9408 or

[email protected]


1. The reporting timelines are:

WSP/PP: 1 January 2017 to 31 December 2017 (Check applicable OFO codes)

ATR/PTR: 1 April 2016 to 31 December 2016

2. Understand the difference between Mandatory and PIVOTAL programmes: The acronym means Professional, Vocational, Technical, Academic Learning (PIVOTAL) and this type of learning must be registered on the National Qualification Framework (NQF) and will end in an Occupational Directed Qualification e.g. Apprenticeships or AET level 4

Note: The information that pulls through to the PIVOTAL Plan forms the basis of the Discretionary Grant application

3. Don’t forget to complete the Scarce and Critical Skills as well as the Impact of Skills pages the content has changed

4. Ensure that the Minutes of the training committee meetings as well as the Sign off page are uploaded on SMS or before the deadline date

5. The Sign Off page – Where a Recognition agreement exists between an organisation and labour/union, immaterial the size of the workforce, a labour/union representative on the Training Committee must sign off on or before the deadline date. Where there is no recognition agreement but the company employs 50 or more employees an appointed

employee representative on the Training Committee, must sign off on or before the deadline date. Labour/Employee Representatives have to submit as well as the SDF, in other words they must have their own User Name and Password to access Merseta’ s SMS.

This sign off is to ensure that communication and consultation took place prior to the submission.

Keep in mind that the final submission date for Workplace Skills Plans, PIVOTAL Plans, Annual Training Reports and PIVOTAL Reports is 30 April 2017.

If you need any assistance or support please don’t hesitate to contact SEIFSA’s Human Capital & Skills Development team on 011 298 9400 .

Good luck!

The compliance issues for the annual mandatory and PIVOITAL grant submissions time and again hampers the true strategic importance of these submissions, and results in submission that only reflects the most immediate training and development needs, and are tailor made for compliance rather than reflecting the strategic intent of the company. Skills Development enables companies to plan develop skills and gain experience critical to the success of the business, and the annual submissions should reflect the company’s strategic intent.


Your 2017/2018 SkILLS DEvELoPMEnt ChECkLISt

SEIFSA have put together some key points to keep in mind:


THE FOllOWINg cHEcKlIST cAN BE USEd TO ENSURE THAT yOU ARE REAdy For thE SkIllS dEvEloPmENt ImPErAtIvES oF 2017/2018.

Put a tick in the block for those items that apply to your company where you are fully up to speed.

have you scheduled and prepared for the following......

1. Do you check the SEIFSA website weekly to ensure you are aware of any skills development related issues or policy developments?

Prioritise this on your to-do list.

2. Have you started early planning of your mandatory and PIVOTAL grant submission to the Merseta? (The deadline date is 30 April 2017)

Update your knowledge of the Organising Framework for Occupations (OFO) (as the basis of your mandatory grant application).

3. Do you have any new staff members who need an understanding of the fundamentals of the skills development legislation?

Book them on the next Introduction to Skills Development (SD) workshop.

4. Do you have more than 50 employees in your company? Do you have an effective Training Committee to consult on your mandatory and PIVOTAL grant submission?

Contact the Skills Development team at SEIFSA for details of the in-house training committee workshop which can be offered at your premises to train and upskill your committee members in terms of their roles and responsibilities.

5. Is your Labour Representative on the Training Committee trained for their role and responsibilities?

Make a booking for the next Labour Representative SDF programme.

6. Are you a medium to large company?

Schedule the training of relevant staff as assessors, mentors and coaches in order to support and evaluate your learners.

7. Can you state with confidence that you are achieving maximum financial and strategic benefits for your skills development activities?

Attend the Skills Planning and Reporting Workshops to enable successful online submission via the Seta Management System (SMS) to the Merseta.

8. Are you aware of all the legislative and policy changes in Skills Development environment?

Book your skills development and HR managers as well as your SDF on the Skills Development (SD) Update workshop so that you understand the implications of the skills development dispensation and the new mandatory and discretionary grant dispensation.

9. Attend the annual SEIFSA/Merseta Seminar on Skills Planning and Report 2017 – scheduled for 16 February 2017 to get the latest tips for a successful submission

10. Are you receiving your weekly evite from the HC&SD Team to ensure that you are aware of news and can plan attendance at workshops, seminars and conferences?

Yes No


The SEIFSA Training Centre is a state-of-the-art training centre that has both the resources of industry experts and equipment to offer specialised artisan training.

Take Note:2017 Intake dates

SEIFSATRAINING CENTREi n s p i r i n g e x c e l l e n c e

04 Apr27 June19 Sept

Established by Managed by

27 June

SEIFSA Training Centre

Lets get socialLike us. Follow us. Keep in touch.

To keep in touch with SEIFSA

SEIFSA SEIFSA_SA Steel and Engineering Industries Federation of Southern Africa

SEIFSA Training CentreTel: 011 422-2500 Fax: 011 422-2503Email: [email protected] 16 Lancaster Road, Industrial Sites, Benoni

SEIFSA TRAINING CENTRE

OPEN DAY26 May 2017



The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has entered into an alliance partnership with Emergence Growth, an award winning Human Capital and Reward Consultancy with offices across Africa. For the first time, through this alliance, we are now able to offer the members of SEIFSA the following exciting range of services:

In addition, Emergence Growth is the official partner to Gallup. In this regard, we bring Strengths based development to Southern Africa.

There are a number of advantages to using an independent professional consultancy:

• Added credibility;• Specialised industry knowledge;• Access to a large database of statistics, trends and

information;• Access to a wide range of specialised resources both locally

and globally;• An objective and unbiased standpoint which can be

presented without fear of internal pressure for promotion of a particular solution; and

• A customised consultant/organisational fit.

If we can provide you with more information, please feel free to contact us:

raun smythe Melanie MulhollandManaging Director Human Capital & Skills Development Executive

+27 82 821 7636 082 852 [email protected] [email protected] www.seifsa.co.za

seifsa enters into an allianCe partnership With EMERgENcE gROWTH

The SEIFSA Training Centre is a state-of-the-art training centre that has both the resources of industry experts and equipment to offer specialised artisan training.

Take Note:2017 Intake dates

SEIFSATRAINING CENTREi n s p i r i n g e x c e l l e n c e

04 Apr27 June19 Sept

Established by Managed by

27 June

SEIFSA Training Centre

Lets get socialLike us. Follow us. Keep in touch.

To keep in touch with SEIFSA

SEIFSA SEIFSA_SA Steel and Engineering Industries Federation of Southern Africa

SEIFSA Training CentreTel: 011 422-2500 Fax: 011 422-2503Email: [email protected] 16 Lancaster Road, Industrial Sites, Benoni

SEIFSA TRAINING CENTRE

OPEN DAY26 May 2017


lEgAl SERVIcES

While the National Minimum Wage (NMW) does not directly affect the Metals and Engineering sector, as a Federation we felt that it is important to share

the information with our members.

As you may now be aware, all social partners have agreed on – and all parties other than COSATU have now signed – the NMW and Labour Relations Stability Agreement. COSATU has indicated that it is not withdrawing from the Agreement, but that it wants to take the extra step of consulting its Central Executive Committee before signing.

We believe that the agreement will have a positive contribution towards a sustainable labour relations environment in South Africa since it seeks to address one of the major concerns that have contributed to lack of investment into South

Africa: labour market instability.

In her comment on the signing of the NMW and Labour Relations Stability Agreement, Business Unity South Africa CEO Tanya Cohen said: “We believe that the NMW is an important step in the right direction towards a living wage and sends a message that all the social partners, including business, are committed to creating a fair, inclusive and progressive economy”.

The Agreement includes:

1. A Declaration on the NMW and LR stability, inclusive of the Accord, Code of Good Practice and Labour Relations Act Amendments;

2. A principle agreement on the modalities of a NMW; and3. An Accord on Labour Market Stability.

seifsa WelCoMes the announCeMent of the NATIONAl MINIMUM WAgE ANd lABOUR RElATIONS STABIlITy AgREEMENT


SEIFSA welcomes the announcement of a package of labour market agreement reached by business, labour, government and community representatives which provides a foundation for a profound and much-needed shift in the tone of labour relations in South Africa.

As part of the package of agreements, the social partners at Nedlac have agreed to a NMW and a suite of measures which will promote greater stability in labour relations.

The Agreement recognises that employees should be paid a fair minimum wage for productive work, that strikes should be peaceful and functional, that all stakeholders have a leadership role to play in bringing stability to the labour market and that productive employment is essential for inclusive growth.

NATIONAl MINIMUM WAgE (NMW)

One of the key provisions of the Agreement is the introduction of a NMW of R20 per hour, which will come into effect on 1 May 2018. The NMW is introduced with the option of exemptions based on affordability and will be phased in for the first year, with domestic workers at 75% and agricultural workers at 90%.

There is a specific agreement that exemption processes will be streamlined and efficient, and particularly designed to enable smaller businesses to apply for exemptions without undue process burdens. A NMW Commission will be established, which will determine annual escalations based on evidence. An adjustment criterion will include consideration of employment levels, GDP and productivity, amongst other factors.

lABOUR RElATIONS ANd STABIlITy

In a press release issued by BUSA, Mr Elias Monage said: “The Agreement commits all social partners to protecting the full range of constitutional rights that apply during industrial action, in particular the right to life and protection from personal harm, protection of property and the right to trade. There is a commitment to take all steps to prevent violence and intimidation during strike action and to act quickly to deal with any such incidents”.

SEIFSA is in full agreement with this view and believes that same is a much-needed reinforcement of the constitutional rights of both employers and labour.

The Accord also introduces a Code of Good Practice on Collective Bargaining, Industrial Action and Picketing to guide parties on good practice, to build capacity and shift the tone of labour relations to ensure that industrial action is peaceful.

It also includes amendments to the Labour Relations Act that embed the concept of secret balloting before strikes and advisory arbitration in the event that there is prolonged or violent strike action.

There is also a commitment to monitor and review the effectiveness of the Code and the LRA amendments in Nedlac to determine whether they are achieving the desired effect.

Bridgette MokoetleIndustrial Relations and Legal Executive

Contact Bridgette on 011 298 9413 or [email protected]


THE lINK BETWEEN TB ANd HIV

If HIV has weakened a person’s immune system, they are more vulnerable to infection with tuberculosis (or TB). But why is it important to talk about TB in the context of

an HIV/AIDS workplace programme, you ask? Well, not only is TB is the most common opportunistic infection, it is also the most frequent cause of death for people living with HIV in Africa. The Department of Labour’s Code of Practice , which we refer to often in this series, says in section 8.3 that ‘the working environment must be safe and healthy in order to prevent transmission of HIV and TB in the workplace’, so let’s find out more about TB.

WHAT IS TB ANd HOW IS IT TRANSMITTEd?

TB is caused by bacteria that pass through the air, and are most often spread through coughing. Typically, a person who is sick with TB and is not receiving the appropriate treatment coughs TB germs into the air and another person breathes them into their lungs. TB normally infects the lungs but it can also infect other parts of the body such as bones and joints.

Interaction between TB and HIV

The bacteria don’t make everyone ill; it depends how strong your immune system is. Only 10% of people with a healthy immune system that are infected with TB will ever become sick from TB during their lifetime. However, HIV increases the risk of progression from TB infection to TB disease from 10% per lifetime to 10% per year. Over 50% of people who are co-infected with TB and HIV will get sick with TB before they die.

INTERAcTION BETWEEN TB ANd HIV

The bacteria don’t make everyone ill; it depends how strong your immune system is. Only 10% of people with a healthy immune system that are infected with TB will ever become sick from TB during their lifetime. However, HIV increases the risk of progression from TB infection to TB disease from 10% per lifetime to 10% per year. Over 50% of people who are co-infected with TB and HIV will get sick with TB before they die.

SyMPTOMS OF TB

The symptoms of TB include:

• Coughing for more than 3 weeks • Loss of appetite • Weight loss • Night sweats • Tiredness • Chest pain • Coughing blood

TREATMENT OF TB

TB is a very serious illness, but it can be cured. The DOTS approach (DOTS stands for Directly Observed Treatment Short-course) is the cornerstone of South Africa’s approach to the management of TB. As part of DOTS, it is important that a treatment supporter encourages the patient to complete their TB treatment and observes them taking their treatment.

Not adhering to treatment may result in the development of multi-drug resistant (MDR) TB or extensively drug resistant (XDR) TB, both of which are difficult and expensive to treat with a 30-40% success rate.

Contact Redpeg for accredited HIV/AIDS workplace training, consulting and research. [email protected] | (011) 794 5173 | www.redpeg.co.za

MANAgINg HIV AIdS in Your WorkplaCe

AllIANcE PARTNER

Remember, TB patients who are receiving the appropriate treatment are not infectious and therefore it’s safe to work and socialise with them. ‘


OHS RISK ASSESSMENT IS A MUST

Section 8.2 of the Act requires employers to identify hazards, establish precautionary measures and provide means to apply those precautionary

measures. The employer shall also ensure the safety and absence of risks to health in connection with the production, processing, use, handling, storage or transportation of articles or substances.

Failure to comply with this requirement is a criminal offence, and an employer found guilty of such offence would be liable to a fine of up to R100 000 and or two years in prison.

Although different regulations of the OHS Act stipulate hazard specific requirements for risk assessment, the process always follows the pattern below:

SAFETy, HEAlTH, ENVIRONMENT & qUAlITy

Apart from being a legal requirement, risk assessment has the following benefits to your organisation:

• Blueprint to the pro-active/ preventive approach to occupational health and safety.

• Avoidance of accidents and related direct and indirect costs• informs the safety aspect of standard operating procedures• contributes to sustainable business growth

For more information on OHS Risk Assessment training and consultancy, please email Nonhlalo Mphofu on [email protected].

The Occupational Health and Safety Act is clear about the employer’s legal obligation to identify and control occupational health and safety risks. An employer is any person who is in charge of a process, section and or issues instructions to employees.

Identify all OHS Hazards

Evaluate the risk

Develop controls

Implement controls

Review adequacy of controls


BACK COVER

Upcoming SEIFSA Workshops / Events

DIVISIONS: Economics and Commercial (EC), - Health, Safety, Environment & Quality (SHEQ), - Industrial Relations (IR) and Legal Services (L)Human Capital & Skills Development (HC&SD) SEIFSA Training Centre (STC) - Small Business Hub (SBH)

To book, please contact Thabiso Lebea (011) 298-9442 or make an online booking www.seifsa.co.za

ALL PRICES EXCLUDE VAT

20172017MONTH

APRIL

MAY

JUNE

PRICE (Member)R2 500.00R2 475.00R2 100.00R1 692.10R2 500.00R2 000.00R 2505.00R2 475.00R2 000.00R2 000.00R2 500.00

R2 655.00R1 500.00R2 500.00R2 000.00R2 500.00R1 900.00R1 700.00R2 500.00R2 000.00R1 900.00R2 505.00R3 750.00R2 505.00

R2 000.00R1 250.00R1 900.00R1 900.00R1 250.00R1 900.00R2 000.00R1 900.00R1 250.00R1 900.00R3 750.00R2 000.00R1 900.00R2 500.00

WORKSHOP/ EVENT

Skills Development Planning and ReportingFair and Effective DisciplineFire Fighting Level 1 TrainingISO 9001: 2015 WorkshopSkills Development Planning and ReportingTheory and Calculation of Contract Price AdjustmentHealth and Safety Representative Training NQF 3 - Day 1-2Fair and Effective DisciplineTheory and Calculation of Contract Price AdjustmentTheory and Calculation of Contract Price AdjustmentSkills Development Planning and Reporting

Labour Law Simplified Legal Liability WorkshopCommunication and Interpersonal Skills workshop Theory and Calculation of Contract Price Adjustment Skills Development Breakfast Seminar Retrenchments, Short Time and Lay Off's16.2 Appointees - SHECommunication and Interpersonal Skills workshop Theory and Calculation of Contract Price Adjustment Managing Misconduct Effectively Quality AwarenessSupervisory Training Workshop (unit standard aligned) Quality Awareness

Theory and Calculation of Contract Price Adjustment Incident Investigation workshopStrike Handling A - Z of the Main AgreementHealth and Safety Representative Training Strike Handling Theory and Calculation of Contract Price Adjustment A - Z of the Main AgreementHIRAA - Z of the Main AgreementSupervisory Training Workshop (unit standard aligned) Theory and Calculation of Contract Price Adjustment A - Z of the Main AgreementIntroduction to Skills Development

DATE

455

101112

19 - 2020202626

0308041011161623242630

30 - 3131

07080913142121232627

28-29293030

DURATION

1 Day1 Day1 Day1 Day1 Day1 Day2 Days1 Day1 Day1 Day1 Day

1 DayHalf Day

1 Day1 Day

BreakfastHalf DayHalf Day

1 Day1 Day

Half Day1 Day2 Days1 Day

1 Day1 Day

Half Day Half Day

1 DayHalf Day

1 DayHalf Day

1 DayHalf Day2 Days1 Day

Half Day1 Day

REGION

JHBBoksburg

JHBJHBJHBJHBJHBJHBCPT

BoksburgJHB

BoksburgJHBJHBJHBJHBJHBJHBJHB

BoksburgBoksburg

JHBJHBJHB

JHBJHB

BoksburgJHBJHBJHB

BoksburgJHBJHBJHBJHBDURJHBJHB

PRICE (Non-member)

R3 120.00R3 095.00R3 171.00R2 280.70R3 120.00R2 950.00R 3690.00R3 095.00R2 950.00R2 950.00R3 120.00

R3 330.00R1 500.00R 3120.00R2 950.00R 3120.00R2 385.00R2 584.00R 3120.00R2 950.00R2 385.00R3 690.00R4 685.00R3 690.00

R2 950.00R1 885.00R2 385.00R2 385.00R1 885.00R2 385.00R2 950.00R2 385.00R1 885.00R2 385.00R4 685.00R2 950.00R2 385.00R3 120.00

DIVISION

HCSDIR & LSHEQSHEQHCSD

ECSHEQIR & L

ECEC

HCSD

IR & LSHEQHCSD

ECHCSDIR & LSHEQHCSD

ECIR & LSHEQHCSDSHEQ

EC SHEQ

IR & LegalIR & Legal

SHEQ IR & Legal

EC IR & Legal

SHEQ IR & LegalHC & SD

EC IR & LegalHC & SD O

ur p

assi

on, Y

our s

ucce

ss

Date post:	26-Jul-2020
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