Seifsa represents small and big companies, and seeks a win-win dispensation with labour
SEIFSA REPRESENTS SMALL AND BIG COMPANIES, AND SEEKS A WIN-WIN DISPENSATION WITH LABOUR
JOHANNESBURG, 12 JULY 2017 – Contrary to propaganda maliciously spread by another employer organisation, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) represents both small and big companies in its sector and fights hard to represent their interests, SEIFSA CEO Kaizer Nyatsumba said today.
Responding to a statement issued by NEASA today, Mr Nyatsumba said he found it bitterly disappointing that, following the deadlock in the 2017 wage negotiations in the metals and engineering sector, increasingly NEASA CEO Gerhard Papenfus was “viciously lashing out at everybody and everything, with SEIFSA particularly singled out for his worst propaganda campaign”.
Mr Nyatsumba said that Mr Papenfus appeared to be growing increasingly desperate and, in the process, sought to portray SEIFSA as an organisation that represented big employers in the sector and concluded deals only suitable to them.
“Nothing could be further from the truth. We represent both small and big employers. In fact, the overwhelming majority of our member companies employ no more than 50 people. Therefore, in our approach to negotiations with labour, we always strive to reach a deal that is acceptable to all our members, both small and big,” Mr Nyatsumba said.
He also took exception to Mr Papenfus’s attempts to characterize historic wage settlements in the Metals and Engineering Industries Bargaining Council as having been agreements between SEIFSA and one union, NUMSA.
“Nothing could be further from the truth. SEIFSA, which represents 25 independent employer Associations, has always negotiated and concluded agreements with all the trade unions in this sector, including Solidarty. Although there are currently five unions within the MEIBC, all six trade unions were signatories to the 2014 settlement agreement,” he said.
Mr Nyatsumba stressed that SEIFSA operated strictly in accordance with a mandate from its member Associations which, in turn, get mandated by their members and keep them informed during the negotiations process. The Federation also regularly writes directly to member companies to keep them apprised of developments.
Mr Nyatsumba said that SEIFSA, whose Economics and Commercial Division closely monitors trends within the sector on an ongoing basis, knows only too well the terrible state in which the sector finds itself and is equally – if not more – concerned about it.
“Unlike NEASA, we do not believe that a solution to the challenges faced by the sector can be imposed on any of our stakeholders, including labour. Instead, we believe in working closely with government and labour, as partners, in search of solutions, instead of standing on rooftops and shouting insults at everybody.
“That is why we engage with labour on an ongoing basis, and not only during wage negotiations, and are involved in ongoing efforts to lobby policy makers in the best interests of the sector. Shouting and pointing fingers is easy, but engaging in a search for win-win solutions is another thing altogether,” Mr Nyatsumba said.
He said that, in keeping with the initial mandate from the SEIFSA Council (an assembly of the Federation’s member Associations), SEIFSA had worked closely with other employer organisations – including NEASA – until last week. It will now engage directly with the unions in an effort to avoid industrial action, “which would have a devastating impact on an already fragile sector”.
“We have absolutely no intention of concluding a deal that would worsen the situation, nor do we have a mandate to do so. Instead, in these bilateral engagements we will seek to conclude a realistic settlement acceptable to our members.
“Clearly, it will not be possible to reach a settlement unless it is fair both to our members and to our labour partners. After all, it is in our mutual interest – and, indeed, South Africa’s – that no further job losses occur and that over time the sector becomes more competitive internationally,” Mr Nyatsumba said.
He said that it was unfortunate that, at a time when employers’ efforts should be on reaching an acceptable deal with labour to avoid industrial action, SEIFSA finds itself having to respond to NEASA’s vitriol and to set the record straight.
“For the record, we at SEIFSA have absolutely nothing against NEASA. We do not consider the organisation to be an enemy and have never singled it out for attacks, which is why we worked with it and other employer parties in a joint employer caucus both during this round of negotiations and in 2014. Unfortunately, our two organisations (SEIFSA and NEASA) no longer agree on the best way forward.
“We find it extremely unfortunate that NEASA has again targeted SEIFSA for these wholly unjustified, vitriolic attacks. We have no intention of responding in kind,” said Mr Nyatsumba.
End
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
The South African economy is struggling to support manufacturing
The South African economy is struggling to support manufacturing, says SEIFSA
JOHANNESBURG, 3 JULY 2017 – The decline in the June 2017 ABSA Purchasing Managers’ Index (PMI) is a confirmation that the fundamentals of the South African economy are too weak to support the manufacturing sector, according to the the Steel and Engineering Industries Federation of Southern Africa (SEIFSA).
The PMI dropped to 46.7 index points in June 2017, down from 51.5 index points recorded in May 2017. On the whole, at the present level (below 50 index points) the index is indicative of contraction in the manufacturing sector.
“Following the sharp decline of the index in April 2017 to 44.7 index points, on the back of the unfortunate political events and the downgrades, we had welcomed the rebound in the May 2017 reading to 51.5 index points as a normalization of the trend, following a relative degree of overreaction to the heightened political noise and developments of April 2017,” SEIFSA Senior Economist, Tafadzwa Chibanguza said today.
Mr Chibanguza said, in addition to the weak economy, the manufacturing sector had experienced a gradual and painfully slow erosion of confidence and production capacity.
He said business activity, new sales orders, employment, inventories and, purchasing commitments decreased to below 50 index points. This was indicative of deterioration in an already negative environment, he said.
“At a deeper glance, this weakness is a function of a weak economy. This was also very evident in SEIFSA’s first quarter review of the metals and engineering sector, wherein those sub-industries with lower export-to-output ratios and more reliant on the domestic economy for orders, performed the worst and, in fact, contracted in all instances.
“Unfortunately, the stronger rand in June 2017 would not have contributed any upside to export prospects, hence the broad deterioration in the PMI indices. Manufacturers would have faced headwinds both at home from a slowing economy which is in a technical recession and outside of its boarders because of a stronger rand,” Mr Chibanguza said.
End
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
SEIFSA welcomes automotive sector’s commitment to increase sourcing of locally-produced goods
SEIFSA welcomes automotive sector’s commitment to increase sourcing of locally-produced goods
Johannesburg, 28 June 2017 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes the automotive industry’s commitment to increase its sourcing of locally-produced goods.
SEIFSA Senior Economist Tafadzwa Chibanguza said the announcement made by representatives of the National Association of Automobile Manufacturers of South Africa in Sandton this (Wednesday) afternoon that Original Equipment Manufacturers (OEMs) would increase their sourcing of locally-produced goods as part of their 2035 Transformation Plan boded well for the metals and engineering sector, which was a supplier to auto manufacturers. The announcement was made after a meeting with the ANC leadership, which was also part of that press conference.
Mr Chibanguza said that the announcement speaks directly to the metals and engineering sector, which SEIFSA represents. He said the automotive sector makes up 31% of the total demand profile of the metals and engineering sector.
“It is, in fact, the largest domestic demand source for metals and engineering products, followed by construction and then mining. Prospects to increase local sourcing of inputs translates favourably to the metals and engineering sector since it indicates a potential growing share of activity for local companies.
“This is a classic case of a dynamic and pragmatic approach to a difficult economic environment,” Mr Chibanguza said.
He said that current levels of economic activity are very weak and only economic growth would counter that situation, but that would not happen overnight. The announcement by the automotive sector was a welcome, dynamic response to that weak environment.
Mr Chibanguza expressed the hope that the current impasse in the mining sector occasioned by the new Mining Charter would be resolved speedily in order to improve demand levels from that sector to the metals and engineering sector.
Ends
Issued by:
Nuraan Alli
Sales Manager
Tel: (011) 298- 9436
Email: nuraan@seifsa.co.za
Web: www.seifsa.co.za
PPI data point to margin pressure in the metals and engineering sector, says SEIFSA
PPI data point to margin pressure in the metals and engineering sector, says SEIFSA
Johannesburg, 27 June 2017 – The Producer Price Inflation (PPI) data released by Statistics South Africa (StatsSA) today indicate significant margin pressure for companies in the metals and engineering sector, with a negative deferential recorded between input cost and selling price inflation, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said.
SEIFSA Junior Economist Roberta Noise said the PPI Index released by StatsSA for May 2017 showed a 4.8% annual change in final manufactured goods. This is up by 0.5% when compared to April 2017. She said that the annual increase was driven by food products, beverages and tobacco products with a 1.9 percentage point contribution, followed by coke, petroleum, chemical, rubber and plastic products contributing 1.6 percentage points.
Ms Noise noted that the intermediate manufactured goods changed to 3.1% in May 2017 from 5% in April 2017 on an annual basis. Contributors to the annual change include chemicals, rubber and plastics (1.6 percentage points) as well as sawmilling and wood (1.3 percentage points). The most significant contributor to the monthly 0.3% change was coke, petroleum, chemical, plastics and rubber products, with a 0.4 percentage point contribution.
Ms Noise said that SEIFSA’s input composite cost index showed a 11.4% increase for May 2017. The growth in input cost inflation relative to the growth in selling price inflation reflected in the PPI Final Manufactured and Intermediate Manufactured continues to record a significant negative deferential gap between input costs and final selling price inflation.
“The fact that the difference between input cost and selling prices is not narrowing draws one to the logical conclusion that producers are carrying this cost differential in the market, putting their margins under severe pressure,” Ms Noise added.
The Intermediate manufactured goods for the Production Price Index, which represents prices of products in the metals and engineering sector more extensively, is growing slower than what the industry is experiencing relative to input costs.
“The picture remains gloomy for the industry, with downward price rigidity at the forefront,” Ms Noise concluded.
Rising unemployment shows an economy in trouble, says SEIFSA
Johannesburg, 27 June 2017 – The employment figures released by Statistics South Africa (StatsSA) today indicate a deeply troubled economy which, in the absence of a solution, will see ordinary South Africans continuing to suffer badly, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said.
SEIFSA Senior Economist Tafadzwa Chibanguza said that given the 2017 first-quarter Gross Domestic Product (GDP) figures recently published, which revealed that South Africa had fallen into a recession, it almost seemed a forgone conclusion that the employment figures for the same period would confirm a negative picture.
“In fact, the employment figures mirror those of the GDP, with the tertiary services contributing the most to the employment declines,” Mr Chibanguza added.
The quarterly employment statistics released by StatsSA showed that a total of 48 000 jobs were lost between the fourth quarter of 2016 and the first quarter of 2017, amounting to a 0.5% decrease. Between the first quarter of 2016 and the first quarter of this year, a total of 58 000 jobs – representing 0,6% of jobs – were shed.
The 48 000 jobs lost in Q1 2017 is a net number, which is the result of decreases in most sectors and increases in some. Chibanguza said if all the jobs lost in the tertiary sector were added up, then a total of 64 000 jobs were lost between the end of Q4 2016 and Q1 2017. If the 4000 jobs lost in the manufacturing sector were added, then a total of 68 000 jobs were lost in Q1 2017.
Mr Chibanguza said that, with employment being an outcome variable which increases or decreases on the back of higher or lower levels of economic activity, South Africa “a thorough introspection of its challenges in order for meaningful solutions to be found”.
He said that it was encouraging to note that the mining sector had added 8000 jobs and the construction sector 12 000 jobs in Q1:2017. He said that the increase in mining jobs was to be expected given the relatively better mining production statistics released for the first quarter of 2017, which was assisted by stronger commodity prices.
However, Mr Chibanguza cautioned that the new version of the Mining Charter released by the Minister of Mineral Resources last week had the potential to undo this upside.
He added that construction employment generally tended to be volatile, depending on the number of projects in progress, and sounded a caution that the current weak levels of business confidence and the accompanying slow gross fixed capital formation were likely to imperil this trend.
“Rome is burning and the man on the street is the biggest victim”, Mr Chibanguza warned.
Ends
Issued by:
Nuraan Alli
Sales Manager
Tel: (011) 298- 9436
Email: nuraan@seifsa.co.za
Web: www.seifsa.co.za
Issue 5 - 2017 Wage Negotiations Update
The Management Committee Meeting of the Council agreed today (21 June 2017) to appoint a sub-committee to meet for the purposes of attempting to resolve the disputes declared by the employers and all the trade unions.
The sub-committee will meet on the following days under the facilitation of the Senior CCMA Commissioner:
- Wednesday, 28th June;
- Thursday, 29th June;
- Wednesday, 5th July; and
- Thursday, 6th July
The mandate of the appointed sub-committee is to attempt to resolve the dispute or to recommend to the Management Committee of the Bargaining Council a process by which the disputes can be resolved.
The SEIFSA Council will be meeting on Monday, 26 June to receive a comprehensive report on developments to date and to review and, if necessary, revise the SEIFSA mandate going into the next important phase of the Main Agreement negotiation process.
Kaizer Nyatsumba
Chief Executive Officer
Direct | Tel: 011 298 9403 | Fax: 011 298 9503 | Cell: 072 177 8197 |
E-mail: kaizer@seifsa.co.za
Head Office | Tel: 011 298 9400 or 0861 SEIFSA | Fax: 011 298 9500
For info:
Lucio Trentini
Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270 I
E-mail: lucio@seifsa.co.za
Letter to Stakeholders: Solidarity Judgement
RE: LABOUR COURT APPLICATION – SOLIDARITY// MEIBC AND OTHERS CASE NO. J2924/2016
1. We refer to the above matter and confirm that the Labour Court delivered a written judgment (which is also reported) in this matter earlier today.
2. You will recall that Solidarity lodged an application during the course of 2016 with the Labour Court for purposes of saving the MEIBC from being wound up under the Labour Relations Act, 66 of 1995 as amended (LRA), and it sought an order to the effect that the MEIBC be placed under administration and an Administrator be appointed with powers similar to those of a business rescue practitioner under the Companies Act.
3. In its analysis of the merits, the Labour Court recognized that although the LRA does not make specific provision for a bargaining council to be placed under administration, such a process is a necessary intervention and assistance to bringing back the bargaining council on track so that it can fulfill the purpose for which it was established.
4. In view of the above, the Court made an order in the following terms:
a. An Administrator is hereby appointed for the MEIBC in the person of senior CCMA Commissioner Mr. Afzul Soodebaar.
b. The term of appointment of the Administrator shall be for a period of six (6) months from date of the court order.
c. The term of appointment of the Administrator in terms of (b) above may be extended for a further period as agreed to by the MANCO in consultation with the Department of Labour; or in the absence of such agreement, by way of an order of the Labour Court made on application by any of the parties to the MEIBC, with proper notice of the application being given to all other parties to the MEIBC.
d. For the entire term of the appointment of the Administrator, including any
extension(s) thereof, the MEIBC and MANCO shall resort under the Chairmanship of the Administrator who, in collaboration with the MANCO, shall manage the MEIBC. In the event of any dispute arising between the Administrator and MANCO about a managerial or financial issue and function of or relating to the MEIBC, the decision of the Administrator shall prevail and shall bind the MEIBC.
e. The Administrator shall be remunerated out of the funds of the MEIBC on the tariff as prescribed by the Companies Act No 71 of 2008 applicable to business rescue practitioners.
f. The Administrator shall have the following powers:
i. The Administrator shall have full management control of the MEIBC in collaboration with MANCO, but in the event of a dispute, in substitution of MANCO.
ii. The Administrator may delegate any management function to a person who is part of the existing management of the MEIBC, or to such other person that the Administrator deems appropriate, after consultation with MANCO.
iii. Subject to the financial procedures of the MEIBC, as read with any changes required by the order, the Administrator shall control the funds of the MEIBC and take control of and operate or close existing bank accounts of the MEIBC.
iv. The Administrator shall develop a plan on the prospects of rehabilitating the MEIBC to solvency and functionality, which plan is to be furnished to MANCO and the Department of Labour within a period of four (4) months from the date of the court order.
v. The Administrator must ensure that MANCO considers, with a view of adopting within six (6) weeks of the date of the court order, a budget for 2017/18 period.
vi. If MANCO fails to adopt the budget under (v) above, the Administrator shall determine this budget, after considering any representations by the parties to the MEIBC.
vii. The Administrator shall be responsible for overseeing the recruitment of a new General Secretary of the MEIBC, in consultation with MANCO and a selection committee to be appointed from amongst the members of the MANCO, which shall include both employer and employee party representatives.
viii. Following consultation with MANCO, the Administrator is authorized, during his term of office, to apply to the Labour Court for an amendment, amplification or clarification of powers granted to the Administrator in terms of this order, in the event that it is necessary to do so for the purposes of the effective management of the MEIBC.
5. SEIFSA welcomes this decision by the Labour Court, which we consider as a victory towards saving the MEIBC for the proper administration of the Metals and Engineering Industries Sector.
We trust that you find the above in order.
Issue 4 - 2017 Wage Negotiations Update
The Main Agreement Wages and Conditions of Employment Negotiations which continued today (15 June 2017) ended with the trade unions all declaring a dispute against the employers and the employers, in response, declaring a counter-dispute against all the trade unions.
The crux of the dispute declared by the trade unions relates to three views strongly held by labour:
- fundamentally, that the trade unions will not accept any changes to terms and conditions of employment that are aimed at diluting or varying downwards the existing terms of employment;
- secondly, that any wage offer must be based on actual rates of pay, as opposed to minimums;
- and, thirdly, that any eventual settlement must be extended to all non-parties in the industry.
During the session today, the employers made reference to the importance of constructing a new collective agreement that is competitive in nature and caters to the different needs of each employer constituency. Employers again stressed the importance of keeping factors like business sustainability, competitiveness, job retention and job creation in mind during the negotiations.
Employers reaffirmed the offer of a 5,3% wage increase (informed by the current official inflation rate) on the current minimum rates, accompanied by demands for a three-year Agreement, among other things.
In terms of the Bargaining Council’s Constitution, the dispute is now likely to be dealt with at a Management Committee Meeting of the Council on Wednesday, 21 June, where the parties will agree on how best to process it.
Kaizer Nyatsumba
Chief Executive Officer
Direct | Tel: 011 298 9403 | Fax: 011 298 9503 | Cell: 072 177 8197 |
E-mail: kaizer@seifsa.co.za
Head Office | Tel: 011 298 9400 or 0861 SEIFSA | Fax: 011 298 9500
For info:
Lucio Trentini
Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270 I
E-mail: lucio@seifsa.co.za
Issue 3 - 2017 Wage Negotiations Update
The Main Agreement Wages and Conditions of Employment Negotiations held on the 7th and 8th June 2017 ended with the employers presenting a wage model which aims to take into account the difficult economic and business conditions experienced by members.
When the negotiations commenced on 7 June under the facilitation of a Senior CCMA Commissioner, the trade unions provided motivations for their respective demands and requested that the employers respond to their demands and table a wage offer.
In response over the two days, the employers made reference to the importance of constructing a new collective agreement that is competitive in nature and caters to the different needs of each employer constituency. In particular, they highlighted issues related to sustainability, competitiveness, job retention and job creation.
Today (Thursday, 8 June) the employers tabled a 5,3% wage increase (informed by the current official inflation rate) on the current minimum rates, accompanied by demands for a three-year Agreement, among other things. The unions unanimously rejected the employers’ proposals and demanded that they return to their constituencies for revised mandates.
Negotiations are scheduled to continue on Thursday, 15 June 2017. The SEIFSA Council will meet on Monday, 12 June 2017 to receive a report and consider the best way forward.
Kaizer Nyatsumba
Chief Executive Officer
Direct | Tel: 011 298 9403 | Fax: 011 298 9503 | Cell: 072 177 8197 |
E-mail: kaizer@seifsa.co.za
Head Office | Tel: 011 298 9400 or 0861 SEIFSA | Fax: 011 298 9500
2017 Wage Negotiations Update
The structure and format of the 2017 Main Agreement wages and conditions of employment negotiations have finally begun to take shape.
In an unprecedented and strategic move, the four main employer groupings in this year’s negotiations have agreed to appoint an independent person to take on the role of a joint employer caucus facilitator. His primary responsibility will be to get coherency among the four employer groupings and, where possible, to consolidate different employer positions to be presented as common employer views.