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Construction Sector Code – Comment before the 28th of December 2016

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Dear Member

The Minister of Trade and Industry, Dr Rob Davies, invites members of the public to make inputs and comments on the Draft Amended Construction Sector Code which was gazetted in terms of Section 9 (5) of the Broad-Based Black Economic Empowerment (B-BBEE) Act 53 of 2003 as amended by B-BBEE Act 46 of 2013. The closing date for the 60-day commentary period is 28 December 2016.

In February this year Minister Davies repealed the old Construction Sector Code because it was not submitted on time to meet the deadline. Since then the Construction Sector Charter Council, with the support of both the Ministries for Public Works and of Trade and Industry, worked on developing a new sector code. Minister Davies says the Draft Amended Construction Sector Code is a culmination of that process and a step towards having a sector code for the construction sector.   

“The Construction Sector Code remains one of the key sector codes that affect domestic infrastructural development and, as such, it is one of the catalysts for the implementation of B-BBEE in the country.  One of the key unique features of the draft sector code is that the target for Black Ownership is set at 35% (32.5% for the first four years of implementation; thereafter 35%). This is higher than the ownership target for the Generic Codes and it is the second highest black ownership target, behind the Black Ownership target of 40% of the Media and Advertising Sector Code (MAC),” says Minister Davies.

Davies indicates that the draft Amended Construction Sector Code further stipulates that at least 50% of black shareholding needs to be held by professionals in order to discourage passive shareholding, which is incongruent with the new era of empowerment that encourages active participation of Black beneficiaries.

The Amended Construction Sector Code recognizes that the nature of the construction sector is that it is dominated by joint ventures and outsourcing. However, in order to ensure that outsourcing does not dilute actual benefits accruing to Black People, it stipulate that no more than 25% of the value of a contract can be outsourced to an entity or entities with a lower B-BBEE Status Level.

A great deal of effort went into aligning the code with the generic code and aligning the code with the specific needs of the construction industry.
Please provide comments to Melanie@seifsa.co.za by 15 December 2016 in order to submit a combined response from SEIFSA members by 28 December 2016.



Draft IEP Report and the IRP Assumptions and the Base Case Consultation Workshops – Timeframes

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According to the DOE website, stakeholders are invited to comment on the Draft IEP Report and the IRP Assumptions and the Base Case through the consultation workshops and or in writing to the Department. Comments received will be considered in preparing a draft final IRP Update which will be submitted to Cabinet for approval. Closing date for submitting written comments is 15 February 2017.
Interested parties interested in making presentation at the workshop must register by sending an email with the presentation to IRP.Queries@energy.gov.za not later than 2 days before the consultation workshop.
Consultation workshops will take place as indicated below with venues to follow once confirmed:

  • Gauteng: Johannesburg – 07 December 2016
  • Kwa-Zulu Natal: Durban – 09 December 2016
  • Western Cape: Cape Town – 13 December 2016
  • Eastern Cape: Port Elizabeth – 14 December 2016
  • Northern Cape – January 2017 (Exact date to be confirmed)
  • North West – January 2017 (Exact date to be confirmed)
  • Limpopo – January 2017 (Exact date to be confirmed)
  • Mpumalanga – January 2017 (Exact date to be confirmed)
  • NEDLAC – February 2017

For any queries regarding the IRP, contact the Department at IRP.Queries@energy.gov.za
Members are encouraged to participate in the consultation workshops. BUSA will prepare a written response with member inputs before 15 February 2017.


Draft National Qualifications Framework Amendment Bill, 2016 – request for public comment

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Dear Member

The Draft National Qualifications Framework Amendment Bill, 2016, was published in Government Gazette no 40430 of 18 November 2016 for public comment within 30 calendar days of publication.

The aim of the draft Bill is “To amend the National Qualifications Framework Act, 2008 so as to provide for the substitution of the Long Title; to provide for the insertion of new definitions; to provide for the accreditation of private education institutions or private providers to offer qualifications or part-qualifications or any component thereof as contemplated in the principal Act; to provide for a separate register for professional designations; to provide for the formulation of evaluation criteria of foreign qualifications; to provide for the establishment of a register of fraudulent qualifications; to provide for the adherence of education institutions, employers and courts of law to the legal obligations to report fraudulent qualifications; to provide for the establishment by SAQA of a register of misrepresented qualifications; to provide for employers to be obliged to refer qualifications of employees to SAQA for validation and verification; to provide for transitional arrangements and for matters connected therewith.”

Comments can be sent to:

The Director-General
Department of Higher Education and Training Attention:
Adv. E Boshoff Private Bag X174 Pretoria 0001
Email: Boshoff.E@dhet.gov.za
Fax: 012 324 8230


Update on Unemployment Insurance Amendment Act

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Kindly be advised that the Unemployment Insurance Amendment Bill was passed in the National Council of Provinces (NCOP) on 22 November 2016. The Bill was discussed at Nedlac during 2013.

In summary, the Bill contains the following aspects:

  • Increases UIF benefits from 238 to 365 days;
  • Increases maternity leave benefits to 66% , which will no longer be deducted from the mother’s unemployment insurance benefit;
  • Covers workers who lost working hours due to reduced time at their work places;
  • Includes public servants under the UIF, who will thus be covered in the event of dismissal , and includes women who had miscarriages during the third trimester or a still- born birth;
  • Allows the family and/ or nominated beneficiary of a deceased claimant to receive their benefits;
  • Prohibits the charging of fees by any party (e.g. agency) to a UIF claimant for helping them submit their claims.

The process to pass this legislation is long overdue. SEIFSA is pleased with the adjustments to the structure of the UIF benefits, such as maternity leave improvements, longer claim periods for the unemployed, and fewer restrictions for beneficiaries to access unemployment insurance.

Kindly find the Unemployment Insurance Amendment Bill attached for your information.


Letter To Industry about the 2017 Main Agreement

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We would like to introduce or re-introduce SEIFSA to you ahead of the 2017 Main Agreement Wage and Conditions of Employment Negotiations 2017 and assure you of the value that the federation provides. Please see the attached letter outlining the important role SEIFSA plays in this space.

SEIFSA has been very vocal in articulating the concerns of the sector, both publicly in the media and in meetings with various influential stakeholders, including Government. Whenever Government Departments and other stakeholders seek to solicit the input of the sector or to hear its views on various matters, they approach SEIFSA.

If you are not already a member of one of the Associations federated to SEIFSA, now is the time to join. Choose to get involved, have a say and play a role in shaping your industry’s future.



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By Kaizer M. Nyatsumba | Chief Executive Officer

By all accounts, this will be another tough year for South Africa. The prospects are not good at all. Our economy continues to be on the doldrums and our currency, the Rand, is far from recovering from the downward slide of 2015, which was worsened by President Jacob Zuma’s inexplicable decision to drop then Finance Minister Nhlanhla Nene from the Cabinet.

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From the Chief Executive Officer’s desk – July 2015

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By Kaizer M. Nyatsumba | Chief Executive Officer

By the end of this month, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) will have been registered in Zimbabwe, Namibia, Zambia and, possibly, Mozambique. This is consistent with the Federation’s decision, approved by the Board in February 2014, to extend its reach to the Southern African Development Community (SADC), with the “SA” in SEIFSA’s name now standing for “Southern Africa”.

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