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A Third Consecutive Decrease

Persistent Rise in Inflation Is Worrying, Says SEIFSA

By | Featured, Latest News, Press Releases, Uncategorised | No Comments

Johannesburg, 12 December 2018 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is disappointed by the latest Consumer Price Index (CPI) figures, which indicate that inflation increased further in November 2018, despite the  decision by the South African Reserve Bank to raise the repurchase rate by 25 basis point to 6,75% from 6,50% last month in an effort to  contain inflation within the mid-point of its 3-6 percent target band.

The CPI figures released by Statistics South Africa (StatsSA) today indicate that the annual consumer price inflation increased to 5.2 percent in November 2018, from 5.1 percent in October 2018. On a month-on-month basis, the CPI increased by 0.2 percent in November 2018.

SEIFSA Economist Marique Kruger said given that the demand for the Metals and Engineering (M&E) cluster’s intermediate products is a derived one based on consumer spending, the persistent rise in inflation is cause for concern.

However, Ms Kruger said the increase in the CPI was expected going into the festive season, underpinned by a seasonal pattern of higher consumer spending, galloping November fuel prices and a generally upward-trending Producer Price Index (PPI) for both the intermediate and final manufactured goods. The concern is that the increasing trend in inflation is likely to continue in the near term, compelling consumers to cut back on spending for final manufactured goods which warrant the use of intermediate manufactured products of the M&E cluster of industries as inputs.

“The latest inflation data is disappointing and does not augur well for businesses in the M&E cluster of industries and the broader manufacturing sector. The concern is that companies will continue to face headwinds, including higher interest rates, operational expenses and inflationary intermediate inputs costs,” Ms Kruger said.

In addition, she said it was worrying that the PPI data to be released tomorrow is likely to maintain its upward pressure on inflation.

SEIFSA closely monitors the release of both the CPI and PPI data for final and intermediate manufactured goods, amongst other indicators of its price and index pages (PIPS), due to their importance to the M&E sector. Both indices are used by companies in the secto in financial decision-making processes towards costs mitigation r through, for instance, Contract Price Adjustment processes.

In conclusion, Ms Kruger said despite the difficult operating environment, companies should capitalise on the prevailing signs of a silver lining to build on lower fuel prices for December and slowly improving domestic demand, reduce operational costs and positively boost margins and profit levels.

Issued by:

Ollie Madlala

Communications Manager

Tel: (011) 298 9411 / 082 602 1725

Email: ollie@seifsa.co.za

Web: www.seifsa.co.za

SEIFSA is a National Federation representing 23 independent employer
Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making companies to micro-enterprises employing fewer than 50 people.

Improving M & E Production Is Encouraging, says SEIFSA

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Johannesburg, 11 December 2018 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes the preliminary production data for the Metals and Engineering (M&E) cluster of industries released by Statistics South Africa (Stats SA) today.

“The data, which reflects an increase in output for October 2018, augurs well for both the cluster and the broader manufacturing sector,” the Federation’s Chief Economist, Michael Ade, said this afternoon.

After adjusting for the sectoral weights, the preliminary seasonally-adjusted production data for the M&E sector indicated that output improved to 11,9 percent on a year-on-year basis in October 2018, when compared to October 2017. The improved performance is in line with an increase in production in the broader manufacturing sector, which also increased by 3,0 percent year-on-year in October 2018, following comparatively positive but lower output levels recorded in September 2018 and August 2018 respectively.

On a month-on-month basis, the M&E sector also performed well, improving from 0,3 percent in September 2018 to 9,3 percent in October 2018. The sector’s improved monthly performance was mainly supported by higher output in the petroleum, chemicals, rubber and plastic products (1,8 percent) and the basic iron and steel, non-ferrous metal products, metal products and machinery (1,7 percent) sub-industries.

“Against the backdrop of a slowly improving economy, the improvement in production for the cluster is encouraging. Evidently, producers were able to take advantage of a brief strengthening of the rand to capitalise on the importation of cheaper intermediary inputs, leading to the best increase in manufacturing production since the start of the year,” Dr Ade said.

He said the sector’s performance also coincides with an improved pace of the real Gross Domestic Product (GDP) growth, which surprised on the upside during the third quarter of 2018, officially moving the domestic economy out of a technical recession and providing impetus for more output, investment and employment.

Dr Ade said it is very important that the sub-components of the M&E cluster continue to expand, given the need to continuously improve on overall job numbers in the broader manufacturing, which is still a cause for concern. The latest Quarterly Employment Statistics numbers released by Stats SA earlier today shows that manufacturing employment decreased by 0,6% or 7,000 jobs quarter on quarter in June 2018 to September 2018, despite the sector’s positive contribution to GDP growth in the same quarter.

Dr Ade said this highlights the need to maintain the output growth momentum towards better employment numbers.

Dr Ade said that he hoped that the encouraging increase in domestic growth will translate to higher demand for intermediate and final manufactured goods, which will invariably have a positive impact on production and employment within the manufacturing sector. He noted that, importantly, businesses are optimistic that the recent slowdown in fuel prices will also have a positive impact on companies’ logistics costs in the short term, thus enabling an up-tick in business activity to the expansionary zone.

“These dynamics are encouraging and SEIFSA is optimistic that the basis for a continuous improvement in output going into the new year now exists for businesses to leverage on, and further expand,” Dr Ade concluded.

Ends

SEIFSA is a National Federation representing 23 independent employer  Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.

 

 

SHEQ Consultancy

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SHEQ COMPLIANCE SERVICES  

SEIFSA’s SHEQ Division assists member companies in meeting the requirements of the Occupational Health and Safety Act, the Compensation for Occupational Injuries and Diseases Act and other safety, health, environment and quality legislation. The SEIFSA SHEQ division guides companies in addressing safety, health, environment and quality issues at the workplace and thereby protecting management from vicarious liability and criminal prosecution.

The Division offers an audit programme which includes the following: 

  • An annual audit;
  • The provision of the administrative documentation required to ensure that the mandatory administrative requirements are observed;
  • A written report identifying and addressing areas of non-compliance and, where necessary, specific recommendations for action by management; andThe formulation of an implementation plan to assist in the achievement
  • and maintenance of full and proper legal compliance.

SHEQ LEGAL ADVISORY SERVICE

  • SEIFSA provides a comprehensive range of consultancy and advisory services to member companies on safety, health, environment and quality issues, including:
  • General health and safety legal advice and assistance;
  • Interpretation and advice on occupational health and safety legislation;
  • Interpretation and advice on workmen’s compensation legislation;
  • Formulation and implementation of company level health and safety management systems and procedures;
  • Incident investigations and reporting; and
  • Legal compliance guidance and auditing.

12 February 2019: Skills Development Planning and Reporting Seminar

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SEIFSA is proud to announce that due to popular demand we will be hosting SEIFSA’s Annual  Skills Development Planning and Reporting Seminar which is an informative and practical engagement platform where company delegates will be afforded the opportunity to engage experts and captains of industry about skills development challenges. The seminar in principle focuses on unraveling the skills planning and reporting requirements, criteria, templates, and policy with links to the National Skills Development Management System (NSDMS) as well as the implications, challenges and opportunities available to companies that are registered with the merSETA.

This collaborative workshop will provide you with guidelines and practical tools to ensure a successful Mandatory and PIVOTAL grant submission to the merSETA by 30 April 2019. This workshop affords you the opportunity to understand Merseta’s Grant Policy 2019/2020 and National Skills Development Management System (NSDMS). If you are interested in attending this annual learning and networking opportunity event with like-minded individuals please click here for more information

Skills Development CTA

About the workshop

Once again SEIFSA has joined forces with the experts to address the skills development reporting submission requirements for 2019/2020. This full day informative and practical engagement platform provides the knowledge and covers all the practical key elements of the merSETA’s reporting requirements in order to claim the Pivotal and Mandatory Grant including submission of the Workplace Skills Plan and Annual Training Report. This practical session includes the basic needs analysis tool process, workplace skills plan and annual training report submission requirements as well as the National Skills Development Management System (NSDMS) processes that are responsive to strategic business imperatives.

The presenters

SEIFSA has once again managed to harness a group of dynamic and well informed captains of industry to present various relevant topics at a micro and macro level that will benefit both you and your organisation.

  •  Kyle Mitchell, Honeycomb BBBEE;
  • Winston Adams, Merseta;
  • Imaan Hiebner, SARS;
  • Melanie Mulholland, SEIFSA; and
  • Preggy Chetty – Thuthukisa

Who should attend?

Members who are new to the skills development reporting requirements for pivotal and mandatory grants and who wish to ensure that they are at the forefront of effective implementation.

Skills development facilitators, human resource managers/practioners, training managers, managers, owners and managers of small and medium enterprises, experienced managers who would like to brush up on their knowledge and get to grips with the New Skills Development Management System (NSDMS).

PROGRAMME

08h00 – 09h00     Registration and refreshments

09h00 – 09h15    Welcome, introduction and setting the scene.  Melanie Mulholland, SEIFSA Human Capital & Skills Development  Executive

09h15 – 09h45    The BBBEE codes and its impact on skills development. Kyle Mitchell – Honeycomb (BBBEE Agency)

09h45 – 10h15     Maximising the Tax Benefits for Skills Development.  Imaan Hiebner– SARS, Regional Manager

10h15 – 10h45     Mid-morning refreshments

10h45 – 12h00    merSETA Perspective for 2019/20 reporting year. Winston Adams, merSETA

12h00 – 12h45    Lunch

12h45 –  13h30  Workplace Skills Plan (WSP), Annual Training Report (ATR) and PIVOTAL Plan and Report Templates,  Guidelines and NSDMS  – 
                              Melanie Mulholland, Human Capital & Skills Development Executive

13h30 – 14H15  Leveraging the Centers of Specilaisation Project (DHET) – and working with TVETs to train apprentices – Preggy Chetty – Thuthukisa

14h15 – 14H30  Closure 

Date/time 12 Feb 2019/ 09h00-15h00

Venue Country Club Johannesburg Country Club Johannesburg 1 Napier Road, Auckland Park, Johannesburg

Skills Development CTA

The workshop will cover

Understand the merSETA criteria and requirements for submission of the skills planning and reporting templates due on 30 April 2019

Highlight the benefits and uses of the New Skills Development Management System (NSDMS) for effective skills planning and reporting

Work through the New Skills Development Management System (NSDMS) templates including the PIVOTAL Plan and PIVOTAL Training Report

Understand the labour representative’s role in the approval process

Discuss the Training Committees’ role and responsibilities for the 2019/20 mandatory and pivotal grant submission requirements

Highlight and align current policy expectations and implementation objectives

Share insights with colleagues and peers

Participate in group discussions to gain from the best practice experiences of other companies. Network with other skills development facilitators and HR practioners so that you can handle skills development planning and implementation with confidence.

Included in the fees

Certificate of attendance

Refreshments

Lunch

Parking 

Sectoral Level Economic Research

By | State of the Metals Industry Report | No Comments

SECTORAL LEVEL ECONOMIC RESEARCH

The EC division published a fifth further enhanced version of its State of the Metals and Engineering Sector Report in January 2018. The Report which entails research triangulation and robust statistical analyses (including descriptive, inferential and statistical modelling) takes an annual look of the sector, elaborating on the drivers and underlying dynamics of observed variables like production, demand, employment, intermediate input costs, profit trends, export competitiveness, investment and capacity utilization.

Over the years, the Sector Report has become the benchmark for monitoring business activities and developing economic trends on a sub-industry and sector level. The sub-industries covered included the rubber, plastics, basic ferrous, basic non-ferrous, metal products, machinery and equipment, household appliances, electrical machinery and equipment, transport equipment as well as parts and accessories for motor vehicles. Tracking progress of these various sub-components during the year relative to the initial prognosis and outlook proved to be a powerful tool for understanding the health of the sector.

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The report relies on recognized external sources of data. These include Statistics South Africa, the South African Reserve Revenue Services, Quantec and the World Bank. These are complemented by other sources such as the Economic Trend South Africa and the Industrial Development Corporation. The availability of accurate and credible economic information on sub-industry level is a resource available to members, but not fully utilised. Great effort was made to ensure that the type of data used, the sources and the methods employed in compiling the data are bench-marked to both national and international standards.

The information is analysed in a unique way to produce an overview of the national and international standards. The information is analysed in a unique way to produce an overview of the national and international standards. The information is analysed in a unique way to produce an overview of the national and international environment, vividly depicting the state of the local M&E cluster, highlighting the important drivers of growth and concluding with a predictive annual outlook.

The purpose of the State of the Metals and Engineering Sector Report

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The purpose of the State of the Metals and Engineering Sector Report

The main aim of the report is to track whether the sector is expanding or declining and several longitudinal data and trends (which are often very volatile) are monitored accordingly. The study makes use of an eclectic methodology in its analyses and entails comparing the most current data point to the one immediately preceding it. It also makes use of a monthly and annual analyses, including several year-to-date versus previous year comparisons. The approach helps in contextualising the growth trend in the industry, in generally highlighting the various drivers of growth (or lack of) and in predicting output trends in the sector with a high confidence interval. Ad hoc monthly commentary and periodic reviews are subsequently published as derivatives of the research report.

The second objective of the study is to provide an intrinsic understanding of the dynamics of observed trends. The analysis in this regard is evidenced-based, robust and compelling, further igniting several discourses. Resultantly, more in-depth reviews and opinion pieces of specific drivers have been conducted and published in several platforms. Some of these include the SEIFSA News journal and domestic newspapers including technical publications.

The third objective is for the report to ignite interest and provide evidenced-based impetus for collaboration advocacy and lobbying. Collaboration and lobbying should be aimed at reducing specific constraints as identified in various internal for a within SEIFSA. Given that the EC division acts as a repository of much of the information on the sector’s economic performance over the years, an important aspect of the research is, therefore, in facilitating advocacy and lobbying initiatives in several external forums.

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The level of advice sought from SEIFSA by policy makers and the impact it had dealing with metals crisis over the years proved how valuable this can be. SEIFSA has received positive indications that it will still be part of a soon to be reconstructed steel price monitoring committee and this is good for the industry. SEIFSA currently serves in other forums including the Technical Sectoral Liaison Committee (TELESICO), the National Economic Development and Labour Council’s (NEDLAC’s) Trade and Industry, Economic Development, Manufacturer’s Trade and Tariffs forum and BUSA’s Economic Policy and Tax Policy committees, including other sub-committees.

A substantive input was made when EIFSA recently held a high-level meeting with President Ramaphosa’s Economic Adviser and a team of investment envoys of the South African government. The meeting provided an opportunity for all parties to discuss salient issues affecting investments into the M&E cluster in particular and the broader manufacturing sector in general. Moreover, it also reaffirmed the importance of business maintaining a good working relationship with the Government (and the governing party) and to continuously work towards broadly improving local economic conditions.

Another substantive input was made when SEIFSA and Transnet recently launched a joint Working Group (WG) with the mandate of addressing prevailing inefficiencies towards ultimately reducing logistics costs for the businesses. Effectively three working streams were created by the joint SEIFSA-Transnet WG to continue with the objective of the working group. These include the logistic efficiency, the competitiveness and benchmarking work streams. Progress reports from these initiatives will be made available to stake holders on a regular basis as stipulated in the WG terms of reference document.

What does the future promise?

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What does the future promise?

The main question is what should be done to ensure that the sector is more competitive, export more and possibly improve profits and employment numbers?

The continued survival of the sector depends, as far as the domestic economy is concerned, crucially on the health and growth of the sectors which are drivers of its demand, namely mining, construction and automotive sectors. Hence the urgent need to conclude issues around the mining charter in order to attract so much needed investments across the board and boost domestic growth. In addition, the need to grow market share in regional markets and also mitigate potential risks from the existing trade war between two of the World’s largest economies is also important.

Also, part of the answer is that all the stakeholders within the sector must put differences aside and collaborate more. A salient and undeniable fact is that the industry is notorious for being more reactive than proactive when dealing with challenges. Although some intermediate products of the metals and engineering cluster are close substitutes, unscrupulous tactics should not be used by one sub-industry over the other, to gain competitive trade advantage. Competition is encourage, albeit in a business-as-usual atmosphere rather than belligerently. Without co-operation, all businesses including the small, medium and micro enterprises cannot flourish and expand. Intra-industry squabbles are counterproductive to the objectives of the National Development Plan (NDP) in the long run, thereby, constricting the effective implementation of its long-term socio-economic road map, with dire consequences on jobs and economic development.

There has been a relative reduction in import volumes, thanks to the protection measures for downstream steel industry (safeguard tariffs) announced by the government. Also, the establishment of a R1.5 billion (over three years) downstream steel industry competitiveness fund, through interest rate subsidy, will relieve some pressure due to a number of structural factors which have undermined the sector’s competitiveness. This had resulted in a number of firm closures and more than 6% related job losses.

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Longer-term survival and recovery, however, needs a whole paradigm shift in policy measures and company behavior. There is need to contain input costs and further mitigate the impact of both the 2007/8 financial and economic crises and the 2014 productions crisis which are still felt in the industry. Also, the negative effect of the Chinese economy which is simultaneously slowing down and overwhelming world markets with cheap exports need to be contained. Encouragingly early indications suggest there has been no unusual spike in imports despite the existing trade war.

Increased trade and interdependence with the rest of Africa should receive a boost from a new R13,4 billion export trade facility launched by the Export Credit Insurance Corporation of South Africa (ECIC) and the African Export Import Bank (Afreximbank). This should boost exports from South Africa to the rest of Africa with a combined population of about 1,2 billion people and GDP of roughly US$2,2 trillion. Companies in the sector need to “sharpen the saw” and focus more on the exporting to the SADC region (including SACU), especially given the favourable growth forecast for the region. Of total exports into Africa, almost 81% are destined for SADC, West Africa (8,7%), East Africa (8,9%), North Africa (1,3%) and Middle East (0,5%).

Importantly, a ‘cluster’ approach to the dynamics of each sub-industry is needed. As highlighted in the State of the Metals and Engineering Sector Report for 2018/19, each sub-industry within the sector has its own unique exposure to national and international markets, its own capital or labour intensities and its own productive capacity constraints and production cost challenges. Gross fixed capital formation (new investment) is clearly needed by all the sub components, in order to improve productive efficiencies to that of world benchmarks and to grow.

The M&E sector is intimately linked to the fortunes of the agricultural, mining and quarrying, construction and auto sectors (and to some extent, the electricity and transport sectors). The signs of recovery in each of the aforementioned sectors (and export demand) is crucial for the M&E sector over the longer term. Stimulation and redirection of domestic general government procurement demand towards domestic metals and engineering producers is a policy measure over South Africa has control. The recent initiative by the DTI aimed at designation, localisation and supplier development is lauded as a significant tool in the industrial policy toolkit’ to support the broader manufacturing sector.

This is especially given that government has the largest procurement spend.  The steel industry seems to be the earliest beneficiary but the expectation is for the benefit to trickle down to other industries in the M&E cluster. In addition, enhanced cost-effectiveness and moral suasion is also needed to ultimately attract private sector demand as well.

SEIFSA Press Release Jar with coins

SEIFSA Welcomes SA’s Exit From Recession And Urges Businesses To Capitalise On Improving Demand In Order To Expand

By | EC Latest News, Featured, Press Releases | No Comments

Johannesburg, 4 December 2018 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes South Africa’s official exit from a technical recession in the third quarter of 2018, and urges businesses to capitalise on improving local demand in order to expand.

South Africa’s real GDP increased by 2,2% in the third quarter of 2018, following a revised seasonally-adjusted 0,4% quarter-on-quarter (q/q) decrease recorded in quarter two of 2018. The broader manufacturing sector’s performance was equally encouraging, with the sector significantly contributing to growth in GDP in the third quarter.

Speaking after today’s release of GDP numbers, SEIFSA Chief Economist Michael Ade said the biggest concern often raised by stakeholders in the broader manufacturing sector as a stumbling block to expansion, profit and job creation is that of stagnant or poor demand. Dr Ade said although other documented constraints still prevail, the overriding challenge is that of lack of demand, with poor local demand often cited by businesses as the main reason for their increasingly turning to regional African and global markets for sales, despite the additional logistic costs involved.

“The improvement in GDP growth is, therefore, encouraging as it provides a platform for local businesses to be inward looking, against the backdrop of an improved demand for their intermediate and finished products,” Dr Ade said.

However, he warned that although South Africa has officially exited the recession, challenges still prevail. Although the improvement in growth signals a step in the right direction, the economy and businesses are still under duress characterised by high intermediate and operational costs, poor ratings from Fitch and S&P (which still rate South Africa’s debt at sub-investment grade or junk status), vulnerability to investor sentiments and poor business and consumer confidence.

He said much work still needs to be done to revive a stuttering South African economy and support industrial growth and expansion. For this to happen, Dr Ade said urgent intervention is needed to prevent the recent electricity blackouts from spiraling out of control as the ripple effect from load shedding will inevitably place businesses under duress, discourage investment and impact negatively on company output and economic growth. Accordingly, the Government needs to continue with identified reforms in beleaguered State-owned enterprises (SOEs), while also containing high debt levels.

“The SOEs and municipalities, through their designation for localisation imperatives, are important parts of a kaleidoscope of end-users which are very key to the survival of the manufacturing sector, including its diverse metals and engineering cluster of industries. Therefore, the SOEs and municipalities need to be in good shape in order to continuously sustain positive GDP growth projections and demand levels and boost expansion in industrial production,” Dr Ade said.

He added that the support of these institutions is important for continuous improvement in manufacturing, especially considering that manufacturing is amongst the sectors which contributed positively to the lift in third-quarter GDP growth momentum.

Dr Ade said although the manufacturing sector seems to be slowly regaining its influence, underpinned by repeated recording of positive monthly output figures since April 2018, it still needs more support.

Going into the new year, Dr Ade said some signs of green shoots which are necessary to kickstart the economy are evident for businesses to capitalise on and move to the next level of growth. He observed that the weak rand-to-dollar exchange rate which presented the biggest challenge to businesses in the manufacturing sector has strengthened, fuel prices have temporarily slowed (with a possible breather on logistic costs), and the PMI rebounded to 49,5 index points in November, representing the first increase after three consecutive months of declines and the best performance  since July 2018.

“Above all, domestic demand – which is the most important and sustainable driver of growth for the manufacturing sector, irrespective of Government incentives or protectionism – has improved and stakeholders are very hopeful,” he said.

In conclusion, Dr Ade said SEIFSA is also hopeful about constant improvement in GDP growth, but re-iterates the need for more swiftness in policy implementation and consistency in monitoring and evaluation of relevant interventions in order to maintain the positive growth trajectory.

SEIFSA is a National Federation representing 21 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.

About IR and LS

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SEIFSA Industrial Relations & Legal Services

SEIFSA’s IR and Legal Services division has highly-skilled and experienced staff that are acknowledged industry experts. They have a specialised knowledge of collective bargaining, Bargaining Council agreements, dispute resolution, labour law and environmental and commercial law issues.

The IR and Legal team assists with:

  • Company-level IR policies, procedures and practices
  • General industrial relations and legal issues
  • Bargaining council agreements and exemption applications
  • Company-level disciplinary enquiries and appeal hearings
  • Dispute resolution
  • Legal Representation in the MEIBC, CCMA and Labour Courts
  • Conciliation and arbitration proceedings
  • Employee job grading
  • Retrenchments and short-time

Provides advice and training on issues pertaining to:

  • Collective Agreements
  • Basic Conditions of Employment Act (BCEA)
  • Employment Equity Act (EEA)
  • Labour Relations Act (LRA)
  • Employment Services Act (ESA)

SEIFSA’s experts are ready to advise, assist and represent management in all dealings with trade unions at company level, for example on:

  • Proposed employee retrenchments
  • Industrial disputes and strikes
  • Union demands for recognition and access

We negotiate company-level union recognition and procedural agreements and give written comments and advice on all company-level policies and documents – for example, on labour broking, employment contracts and disciplinary warning letters.

The assistance includes, but is not limited to drawing up IR documents, including documents relating to grievance and disciplinary procedures, working time arrangements, email and internet policies and dealing with absenteeism in the workplace. They also advise on the legitimacy of medical certificates.

Bargaining Council Matters
SEIFSA’s experts help to interpret and implement bargaining council collective agreements relating to:

  • Working conditions
  • Short-time
  • Retrenchments
  • Use of labour brokers
  • Pension and Provident Funds
  • Disability issues

We prepare exemption applications for companies from bargaining council agreements on:

  • Wage Increases
  • Leave Enhancement Pay

Job Grading
SEIFSA’s grading specialists visit member companies and grade employees’ jobs in accordance with bargaining council’s job grading structures.

Disciplinary enquiries
SEIFSA provides qualified and experienced experts to chair and run in-company disciplinary enquiries and appeals.

Legal Representative
SEIFSA provides Legal representation in the MEIBC, CCMA and Labour Courts

SEIFSA speaks for industry

Our senior IR staff is active in the formulation of employer bargaining strategies and tactics. We also participate directly in industry-wide negotiations with trade union representatives. SEIFSA negotiates all terms and conditions of the industry’s collective agreements – from wage increases, employment conditions and social security arrangements through to financial and administrative issues relating to bargaining council operations.

Corporate and Commercial Law Training and Advisory Services Including, but not limited to:

  • Advice and drafting of commercial contracts such as leases and agreements of purchase and sale, production, distribution, leases, sub-contracting etc
  • Advice in contractual disputes
  • Advice and guidance on corporate governance principles
  • Advice and guidance on business law principles
  • Advice and guidance on business rescue proceedings
  • Advice and guidance n Compromises
  • Advice and guidance on fundamental transactions and takeovers

The Industrial Relations and Legal services division now also offers retainer packages on all of the above issues.

Industrial Relations Workshops, also offered on an in-house basis

  • A – Z of the Metals and Engineering Industry Main Agreement workshop
  • Managing sick leave and absenteeism
  • Fair and effective discipline
  • Employment contracts and the Law
  • Understanding how to grade your scheduled employees
  • Retrenchments, Lay- offs and short-time
  • Effective Industrial Relations
  • Managing conflict and common problem areas effectively
  • Retrenchments, short-time and lay-offs

Legal services Workshops; also offered on an in-house basis

  • Chairing of disciplinary hearings: Doing it the right way
  • POPI Act
  • Managing incapacity and poor performance
  • Law of evidence
  • Business contracts and SLAs
  • Labour Law court processes
  • How To Tender Successfully, Untainted By Corruption – Beginner’s course
  • Key Aspects of Labour Law
Business Stability

SEIFSA Encouraged By Improvement In Broader Manufacturing Purchasing Managers’ Index

By | EC Latest News, Featured, Press Releases | No Comments

Johannesburg, 3 December 2018 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes the improvement in overall business activity in the broader manufacturing sector, as reflected in the ABSA Purchasing Managers’ Index (PMI) released today.

As a lead indicator and the first data point that is published for the preceding month, the PMI sets the tone for how manufacturers and various stakeholders in the broader manufacturing sector view the month ahead.

The headline PMI data released today improved from 42.4 percent in October 2018 to 49.5 percent in November 2018, placing the PMI data virtually on par with the 50-neutral level which separates expansion from contraction.

“The rebound in the data is encouraging. Despite low business and consumer confidence, it seems that manufacturing activity is generally improving, albeit rather slowly and still under pressure,” SEIFSA Economist Marique Kruger said.

She added that it was also encouraging to note that almost all the sub-indices improved in November 2018 vis-à-vis October 2018, with the new sales orders, inventories and suppliers’ performance trending in expansionary zones.

The only blip in the performance of the sub-indices was that of the employment sub-index, which still trends in the contractionary zone and seems to have taken a knock in November 2018 when compared to October 2018.

Ms Kruger said SEFSA remained hopeful that the increasing trend in the sub-indices would continue and eventually improve the composite seasonally-adjusted PMI for December 2018.

“Progression in the PMI is important towards boosting overall economic activity for quarter 4 of 2018, also enabling businesses to start the year 2019 on a positive note,” Ms Kruger concluded.

SEIFSA is a National Federation representing 21 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making companies to micro-enterprises employing fewer than 50 people.
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