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SEIFSA News 4 March 2010

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SEIFSA News 4 March 2010

CONTENTS PAGE

Publisher Steel and Engineering Industries Federation of South Africa (SEIFSA) Editor Prisha Marais [email protected] Layout and Cover Zandile Ngubeni Advertising Kristen Botha [email protected] (011) 298-9455 Editorial Enquiries Tel: (011) 298-9436 Fax: (011) 298-9536 [email protected] PO Box 1338 Johannesburg, 2000 ISSN 1560 - 9049 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. Advertorials When 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 member companies in the metal and engineering industry. It is also available on an annual subscription basis to member companies requiring more than one copy. 10 issues published annually. Members R15.00 per issue (incl. VAT) R155.00 per annum (incl. VAT) Prices valid from 1 July 2009 until 30 June 2010. Subscriptions July Malakoane (011) 298-9418

COVER STORY

Union war against labour brokers lacks research and facts 4

FOCUS ON

Products and Services Industrial Relations Health and Safety Skills Development Economic and Commercial 06 08 09 10 An historical occasion ­ The QCTO is launched Merseta Newsflashes - Enhanced Benefits for Merseta Levy Payers A celebration of apprentice excellence

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BBBEE - A case study of success through skills development 20

INDUSTRY NEWS

Increase in the MEIBC administration and dispute resolution levies New Appointments Industry Employment Short-Time, Lay-off and Retrenchment Statistics

14 14 IR Case Study The imprisoned employee: new decision

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Update on the industry funds' surplus apportionment scheme 17

ADVERTISER

Scaw Metals

INTERNATIONAL WATCH

International articles 15

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

SEIFSA News 4 March 2010 3

COVER STORY

Union war against Labour Brokers lacks research and facts

osatu's onslaught on the Temporary Employment Solutions (TES) industry, or labour broking, is based on anecdotal evidence and emotional accounts. The fact remains that as at the current moment, there is still no peer-reviewed research comprising readily available CCMA awards or Labour Court judgments to support the union's claims that labour broker-led violations of labour laws and regulations are widespread and growing, not only in small, informal enterprises, but also in South Africa's largest and most reputable companies. The decision either to ban or further regulate the labour broking industry is being based on unrepresentative sector interviews that take anecdotal evidence as the basis upon which national labour and employment policy is to be decided, and would have dire repercussions for South Africa's economy. This is according to the Confederation of Associations in the Private Employment Sector (CAPES), an industry association representing the interests of the TES industry. According to Loane Sharp, a labour analyst, there are many misperceptions about TES and the role that it plays in economies throughout the world, including South Africa. As an industry locally, we have more than sufficient proof and researched facts about the industry readily available, both from the industry association CAPES and various statutory bodies such as the Services SETA and Statistics SA. According to CAPES, since 2000 labour brokers have introduced around 3.5 million temporary, part-time and contract employees into the South African labour force. Approximately two million of these employees were firsttime job-seekers, 92% were African, and 85% were youth aged between 18 and 35. More than 32% of these employees secured traditional, permanent jobs within 12 months ­ and 47% did so within three years. According to the Services SETA, labour brokers contributed R415 million to the National Skills Fund in 2008/2009 alone. And, according to Statistics SA, "atypical" employees represent between 13.1% and 59.2% of total sector employment in South Africa, with the highest proportions of atypical employees found in construction (59.2%), wholesale and retail trade (42.8%), and transport and communications (39.7%). It is expedient for unions to present a picture of labour brokers as a recent innovation largely specific to South Africa and specifically geared to violating labour laws and regulations, but the facts suggest, instead, that labour brokers are South Africa's primary, formal channel for introducing unskilled, unemployed African youth into the world of work.

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John Botha, Chief Operations Officer of CAPES comments that there is a need for responsible trade unionism and serious thought needs to go into the consequences and negative impact that a ban would have on hundreds of thousands of temporary employees and their further estimated three million dependants

John Botha, Chief Operations Officer of CAPES comments that there is a need for responsible trade unionism and serious thought needs to go into the consequences and negative impact that a ban would have on hundreds of thousands of temporary employees and their further estimated three million dependants. For many in the labour movement, the primary point of contention concerning labour brokers arises from the presence of a third-party in the ongoing employment relationship and claims that a third-party intermediary gives rise to such problems as employee uncertainty over the employer's identity, logistical difficulties experienced by unions when organising in multiple, dispersed workplaces, and the apparent lack of unfair dismissal protections in circumstances of self-terminating employment contracts. For example, by cross-utilising temporary workers between multiple organisations and sectors, agencies

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COVER STORY

provide their workforces with a degree of continuity in employment that a single employer subject to various internal and sectoral cycles could not easily provide. It is extremely dangerous to base concrete proposals for national labour and employment policy on anecdotal evidence, poor research methods, and limited reference to available industry data. The programme to ban or severely curtail labour brokers comes to a head at NEDLAC this month - and the livelihoods of one million people, supporting 3.6 million others, hang in the balance. There are many facts and myths about the TES industry, such as: Facts and Myths about the TES Industry Myth #1: Agency workers are not adequately protected against unlawful labour practices Myth #2: Labour brokers exploit workers, earning an abnormal profit from their activities Myth #3: Labour brokers are causing the casualisation of the labour market Myth #4: Labour brokers erode the permanent employee base in organisations Myth #5: Agency workers are less loyal, and perform less well, than their permanent counterparts Myth #6: Labour brokers undermine trade unions' power in the workplace Myth #7: Labour broking is a South African phenomenon Myth #8: Labour brokers do not invest in their employees Myth #9: Jobs provided by Labour brokers are unskilled and dispensable Myth #10: Labour brokers are opposed to regulation Myth #11: Labour brokers do not add value

For further reading on facts and myths about the TES Industry visit SEIFSA website www.seifsa.co.za or book on the SEIFSA Conference taking place on 11 - 12 May 2010 to hear more on labour broking where John Botha presents his keynote address entitled "Labour Brokers and Non-Standard Forms of Employment."

John Botha Chief Operations Officer, Capes Member of the BUSA negotiating team at NEDLAC John Botha is currently the Chief Operations Officer of the Confederation of Associations in the Private Employment Sector (CAPES). John is one of the eight business representatives on NEDLAC's Labour Market Chamber (since 2005), representing Business Unity South Africa. John was also a member of the business delegation to the ILO in 2006 to negotiate Recommendation 198 on Disguised Employment Relationships. Previously, John was the Group Executive HR Director for the Adcorp Group and Managing Director of Global Business Solutions, a leading national labour law firm. He started his career at Sasol Synthetic Fuels after having been awarded a bursary. John is the leading authority on Temporary Employment Services and A-typical employment in SA and also chairs the BUSA caucus on a-typical employment.

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FOCUS ON SEIFSA PRODUCTS AND SERVICES

SEIFSA's highly skilled and experienced IR advisers have a unique combination of industry-related knowledge of collective bargaining, bargaining council collective agreements, dispute resolution and labour law.

Lucio Trentini, Michael Lavender and Gordon Angus, together with our alliance partners (who are recognised experts who have been contracted to provide various industrial relations services to SEIFSA member companies) offer a range of consultancy services, workshops, in-house training and publications. ADVICE AND INFORMATION During the current economic climate, effective advice is essential and it is only a phone call away on: 4 General industrial relations and legal issues such as leave pay, sick leave, overtime and retrenchments 4 Labour law 4 Bargaining council agreements and exemption applications 4 Company-level IR policies and procedures 4 Company-level disciplinary enquiries and appeal hearings 4 Dispute resolution 4 Conciliation and arbitration proceedings 4 Employment equity requirements 4 Employee job grading CONSULTANCY 4 Interpretation and advice on labour laws 4 Interpretation and implementation of bargaining council agreements 4 Formulation and processing of bargaining council exemption applications 4 Formulation and implementation of company-level industrial relations policy documents and procedures 4 Chairing of company-level disciplinary and appeal enquiries 4 Assistance in dispute resolution processes at the bargaining council's Centre for Dispute Resolution (CDR) and at the CCMA 4 Representation at conciliation and arbitration hearings at the CDR and CCMA 4 Assistance in completing employment equity reports and formulating employment equity plans 4 Employee job grading PUBLICATIONS See advert on page 23

PUBLIC WORKSHOPS 4 Effective Industrial Relations on the Shopfloor 4 Conducting Fair and Effective Discipline at the Workplace 4 Ensuring Fair Dismissals for Retrenchments, Misconduct and Incapacity 4 Confidently Handle Common Problems, Potential Hot Spots and Grey Areas at the Workplace 4 Managing Sick leave at the Workplace 4 How to Prepare and Present a Winning Case at Arbitration 4 Understand the Law of Evidence and Conduct Winning Disciplinary Enquiries 4 Current Labour Law ­ Understanding the Key Aspects of the LRA, EEA and BCEA in the Metal Industry 4 The 2009 Main Agreement 4 Understanding, Administering and Interpreting the Main Agreement for the Engineering Industry 4 Employment Contract Law ­ Alternatives to costly and inflexible working arrangements

The dates for these workshops are on the SEIFSA website (www.seifsa.co.za)

IN-HOUSE TRAINING In-house training is a cost-effective option for companies wishing to train a group of delegates. The above public workshops can be customised to meet company needs and run in-house. SEIFSA MAIN AGREEMENT HANDBOOK 2009 The Main Agreement Handbook for the Metal Industry is an easy-to-read summary of the industry's Main Agreement. It includes: 4 The wage increase effective from the 1st July 2009. 4 All technical schedules. 4 Management notes that explain the more complicated sections of the Main Agreement. 4 Various pro forma letters to assist management in applying specific provisions of the Main Agreement, e.g. retrenchments, short time and lay off. Subscription The handbook is subscribed to by 5 000 companies in the metal and engineering industry. To subscribe please contact SEIFSA on 011 298 9400.

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SEIFSA News 4 March 2010

FOCUS ON SEIFSA PRODUCTS AND SERVICES

SEIFSA IR TEAM

Lucio Trentini IR Executive (011) 298-9414 [email protected] 082 449-6270 SEIFSA ALLIANCE PARTNERS

Michael Lavender IR Training Manager (011) 298-9415 [email protected] 082 459-7678

Gordon Angus IR Services Manager (011) 298-9433 [email protected] 083 412-1437

The following alliance partners are all IR specialists who offer various industrial relations services

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FOCUS ON SEIFSA PRODUCTS AND SERVICES

SEIFSA offers members practical advice and training on all health and safety issues. In addition to consulting companies on general issues, our health and safety experts also assist companies to develop and implement effective health and safety management systems to ensure legal compliance with the relevant Acts and regulations. A health and safety audit will identify any areas of non-compliance in a company's operations and a report will then be drawn up providing recommendations on how to rectify these.

CONSULTANCY 4 Legal compliance matters 4 Hazard identification and risk assessment 4 Workmen's Compensation Claims 4 Compliance auditing 4 Representation at health and safety committees 4 Incident investigation 4 Fire risk surveys PUBLICATIONS See advert on page 23 PUBLIC WORKSHOPS 4 Compensation for Occupational Injuries and Diseases Act (COIDA) 4 Hazard Identification and Risk Assessment 4 Health and Safety Representative Training (1 day) 4 Health and Safety Representative Training (2 day) 4 Incident Investigation 4 Introduction to the OHS Act for Management Our health and safety alliance partners, Elize Aspeling and Bosman Stramrood, are both specialists in this field. Through consultancy, risk assessments, legal audits and workshops, they will assist your company to achieve legal and systems compliance and educate your workforce on health and safety issues which will contribute to a reduction in incidents and save costs through efficient risk management. ALLIANCE PARTNERS Elize Aspeling 084 447-3857 [email protected] Bosman Stramrood 084 777-0067 [email protected] HIV/Aids Wellness Programme Is HIV/Aids affecting your productivity or increasing accidents on your shopfloor due to poor physical health? HIV/Aids can be managed cost effectively if intervention is carried out in the workplace and opportunities created for employees to be educated and to find out their status. The starting point for any programme consists of management buy-in and commitment as well as a clear understanding of how to manage HIV effectively in the workplace. For information on implementing an effective HIV/ Aids Management Programme or on the half-day in-house course on HIV/Aids, contact SEIFSA's alliance partner, Charmaine McCue on 073 167-5667. HEALTH AND SAFETY AUDIT PROGRAMME This programme has been designed to assist companies to meet the legal requirements of the Occupational Health and Safety Act of 1993, to ensure minimum legal compliance with the law, and to protect employees, visitors and contractors from injury and assets from damage.

NEW Programme (See insert brochure for more information)

The dates for these workshops are on the SEIFSA website (www.seifsa.co.za).

IN-HOUSE TRAINING In-house training is a cost-effective option for companies wishing to train a group of delegates. The above public workshops can be customised to meet company needs and run in-house. HEALTH AND SAFETY TEAM AND ALLIANCE PARTNERS Noni Ndlovu, together with our alliance partners (who are recognised Health Care experts who have been contracted to service SEIFSA member companies) offer members consultancy services, workshops and in-house training. Noni Ndlovu SEIFSA Health Manager (011) 298-9402 [email protected] and Safety

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FOCUS ON SEIFSA PRODUCTS AND SERVICES

Rapid development of South Africa's technical skills is one of the most critical challenges facing South Africa.Through its skills development experts, SEIFSA is at the forefront of numerous skills enhancement initiatives at both national and industry levels.These initiatives serve to build a stronger and more durable platform for skills development across all sectors of the South African economy.

CONSULTANCY ON SKILLS DEVELOPMENT 4 Interpretation and implementation of skills development legislation including the recent legislative changes 4 Accessing mandatory and discretionary grants from the Merseta 4 Appointment and training of skills development facilitators and training committees 4 Apprenticeship and learnership training and management 4 Engineering scholarships and bursaries at universities and universities of technology PUBLICATIONS See advert on page 23 PUBLIC WORKSHOPS A range of highly interactive workshops include: 4 Skills Development Update 4 Mandatory grants ­ Organising Framework for Occupations (OFO) 4 Introduction to Skills Development 4 Discretionary Grants 4 Skills Development Facilitator (SDF) Training

skills programmes. The centre is Merseta-accredited and also offers assessment and advisory services. SEIFSA SD TEAM Janet Lopes Skills Development Executive (011) 298-9405 [email protected] 082 556-2946 Veronica Fisher Skills Development Administrator (011) 298-9404 [email protected] ALLIANCE PARTNERS Carol Jordaan and Pam Upham 071 218 3720 Ian Clark 082 604 5164 Angie Hawkins 082 934-2656

The dates for these workshops are on the SEIFSA website(www.seifsa.co.za).

IN-HOUSE TRAINING In-house training is a cost-effective option for companies wishing to train a group of delegates. The above public workshops can be customised to meet company needs and run in-house. MEMBERSHIP OF ETAC The SEIFSA Education and Training Advisory Committee (Etac) meets quarterly and provides members with updates on key developments in skills development at both national and industry levels. FUNDI TRAINING CENTRE SEIFSA's training centre in Benoni offers customised technical training for apprentices, learners and workers on

SKILLS DEVELOPMENT BEST PRACTICE PROGRAMME Can you state with confidence that you are achieving maximum financial and strategic benefits from your skills development activities?

NEW Programme (See insert brochure for more information)

This programme will enable you to identify your areas of strength, your areas of minimal compliance and the areas requiring improvement.

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FOCUS ON SEIFSA PRODUCTS AND SERVICES

SEIFSA's Economic and Commercial Services team is uniquely qualified to advise members on matters involving tenders, international trade issues and Broad-Based Black Economic Empowerment.

Michael McDonald, Charl Cilliers and Christelle Badenhorst, together with our alliance partners (who are recognised BBBEE experts who have been contracted to service SEIFSA member companies) offer members consultancy services, workshops and in-house training.

CONSULTANCY 4 Broad-Based Black Economic Empowerment issues 4 Conditions of tender 4 Contract price adjustment provisions 4 International trade issues PUBLICATIONS See advert on page 23 PUBLIC WORKSHOPS 4 Theory and Calculation of Price Adjustment 4 BBBEE Made Easy 4 Preparing for BBBEE Scorecard Verification 4 Manage and automate your BBBEE Preferential Procurement Scorecard

By including data from these indices in a contract price adjustment formula, a company can calculate future changes in costs of labour, steel, transport and other inputs affecting the final cost of manufacture and adjust prices up to the date of delivery. The SEIFSA Price and Index Pages is available on an annual subscription basis. Using a user name and password, subscribers also have access to the indices on SEIFSA's website (www.seifsa.co.za). SEIFSA EC TEAM Michael McDonald Economic and Commercial Executive (011) 298-9413 [email protected] 082 459-7677 Charl Cilliers Economic and Commercial Manager (011) 298-9410 [email protected] 082 787-7475 Christelle Badenhorst CPA Statistics Clerk (011) 298-9411 [email protected] ALLIANCE PARTNERS Bruce Rowe BBBEE Scorecard Consultant 083 324-4464 Roger Latchman BBBEE Scorecard Verification 083 337-6133

The dates for these workshops are on the SEIFSA website (www.seifsa.co.za).

IN-HOUSE TRAINING In-house training is a cost-effective option for companies wishing to train a group of delegates. The above public workshops can be customised to meet company needs and run in-house. SEIFSA PRICE AND INDEX PAGES The SEIFSA Price and Index Pages is a unique monthly publication which covers the latest statutory and actual cost indices for materials, services, labour and road freight costs. It also includes a number of sector-specific indices. These indices are particularly valuable for best practices, benchmarking and calculating price adjustment or escalation clauses for contracts and tenders. They are also useful for keeping price lists up to date.

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FOCUS ON SEIFSA PRODUCTS AND SERVICES

SEIFSA BROAD-BASED BLACK ECONOMIC EMPOWERMENT TOOLKIT The system allows you to measure your BBBEE compliance based on current data.

NEW Programme (See insert brochure for more information)

Scenarios allow you to then make changes to your input data and see the affect this will have on your scorecard, allowing you to plan and predict your compliance level.

FREE BBBEE Toolkit Demonstration

Dates 24 March 2010 27 April 2010 27 May 2010 25 June 2010 28 July 2010 24 August 2010 Venue SEIFSA Drummond Room, 6th floor Metal Industries House, 42 Anderson Street Johannesburg The presenter Wayne Muller, MPowered Business Solutions Who should attend? Representatives from companies that are seeking to drive BBBEE compliance in a sustainable manner, based on delivering business value. Any person within the responsible for developing BBBEE strategy, ensuring levels are achieved and for compliance. company that is and implementing target compliance measuring BBBEE

The demonstration will cover: 4 Calculate your current BBBEE 4 Scorecard 4 Implement compliance initiatives 4 Identify gaps and areas for improvement 4 Streamline verification preparation 4 Plan future compliance levels

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SEIFSA News 4 March 2010

SEIFSA News 4 March 2010

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INDUSTRY NEWS

Increase in the MEIBC administration and dispute resolution levies

he parties to the Metal and Engineering Industries Bargaining Council (MEIBC) have approved a levy increase of 8.1% with effect from 1 April 2010. The levy increases have become necessary in order to ensure that the increased demand by the industry for it's services is adequately met. The new levies will be reflected in the April levy return, which will be dispatched mid April 2010. Kindly take note that deductions of the new levies in respect of weekly paid employees must be effected from the first week in April. Should you require any further information, please contact the MIBFA credit control department on tel. 011 870 2000.

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New levy increases

NEW APPOINTMENTS

Janet Lopes appointed to serve on the Human Resource Development Council SEIFSA is pleased to announce that Janet Lopes, the federation's skills development executive, was recently appointed by the country's Deputy President to serve on the newly established Human Resource Development Council (HRDC). This is an important acknowledgement of Janet's significant role in national skills development issues over many years, and places Janet and SEIFSA at the forefront of some rather exciting developments expected to emerge from this new national forum. The inaugural meeting of the HRDC will be held in March and readers can expect Janet to keep members informed of all developments at this forum. Guy Harris nominated to serve on the National Planning Commission SEIFSA is pleased to report that the federation has nominated Mr Guy Harris, SEIFSA's electricity consultant, to serve on the proposed National Planning Commission to be established by the Minister of Planning in the Presidency. The National Planning Commission is intended to be an important institution tasked with working with government on a long-term vision for the country and a long-term strategic plan for government.

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SEIFSA News 4 March 2010

INTERNATIONAL WATCH

FINLAND

Working lives set to increase by up to five years

A new method of calculating state pensions in Finland will be introduced next year. The inclusion of a life expectancy coefficient in actuarial calculations will mean that a young person currently starting their first job will have to work for up to five years longer than a worker currently aged 60 to obtain an equivalent pension. Federation of European Employers, 25 November 2009 CEEMET News Bulletin, No. 20, 2009 FRANCE Minimum wage rises by 0.5% The national minimum wage in France was increased by 0.5% in January 2010 to 1343.77 per month (for a 35-hour week). Earlier, an expert group had recommended that the minimum wage should remain unchanged during 2010. Agreements on older workers French legislation adopted in 2008, aimed at promoting the employment of older workers, called on employers and trade unions to conclude, by the end of 2009, sector or company level collective agreements on active age management. These agreements are required to specify a target on the employment of older workers to be achieved during the agreement's term, along with specific actions to promote the employment of this group of workers, such as training, skills assessments, part-time work for older workers, recruitment measures and improved working conditions. The law provides that all companies with at least 50 employees that are not covered by such an agreement by 1 January 2010 will be subject to a financial penalty of 1% of their total salary bill. Federation of European Employers 15 December 2009 CEEMET News Bulletin, No. 20, 2009 GERMANY Volkswagen agrees worldwide participation rights Volkswagen Germany signed an agreement in October 2009 guaranteeing employee participation rights in its sites around the world. The rights include information, consultation and German-style co-determination, including: 4 A charter on labour relations setting out binding employee participation rights at all VW sites. 4 Employee representative rights on a range of information, consultation and co-determination in areas such as the company's economic situation, production methods, restructuring, HR policies, work organisation, pay systems, training and health and safety. 4 Compulsory regular meetings between management, employee representatives and employees at site level. The VW agreement is the first of its kind to be signed by a multinational company, and exports elements of Germany's advanced system of employee participation to all its operations around the world. European Employment Review 431, December 2009 CEEMET News Bulletin, No. 20, 2009.

Company Feature

The SEIFSA News editorial team invites SEIFSA member companies to contact us about new projects, innovative products and/or services, milestones or awards. This is a wonderful opportunity to let the industry know about your company's successes. Our editorial team will write the article for you (no cost involved) or you are welcome to email press releases and electronic photographs to us for publication. The editor reserves the right to withhold articles due to space limitations or any other reason. See page 3 for our contact details.

SEIFSA News 4 March 2010

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INDUSTRY NEWS

Industry Employment

Short-Time, Lay-Off and Retrenchment Statistics

January 2008 - December 2009

Introduction

The vast majority of SEIFSA member companies were forced, at least by the first quarter of 2009, to implement extensive short-time working and lay-off arrangements across all occupational categories and skill levels. By mid 2009, large-scale retrenchments were the order of the day as companies fought to remain financially viable in the face of extreme trading conditions. This was reflected in a dramatic slump in industry employment. Surprisingly, employment reached a 10-year peak of 399,088 jobs in February 2009, but then dramatically slumped to 324,236 jobs by December - shedding over 75,000 jobs in ten months.

Short-Time Working and Lay-Off Arrangements

As the economic crisis began to take effect, the number of short-time working and lay-off arrangements implemented by employers, over the period January 2008 to December 2009, rose sharply across all sectors peaking in the second quarter of 2009.

As conditions in industry worsened, the number of short-time working and lay-off arrangements implemented by employers over the period January 2008 to December 2009 rose dramatically, peaking in the third and second quarters of 2009, respectively.

Retrenchments

South-Africa's economy shed nearly a million jobs in 2009, far more than expected, with the country's jobless rate climbing to 24,5% in the third quarter of 2009. Between February and December 2009, employment in the metal and engineering industry fell by over 75,000 jobs, illustrating that the pace of job losses accelerated even though the severity of the recession eased. Manufacturing and retail sales, the economy's second and third biggest sectors respectively, were hardest hit. Analysts forecast that the economy is likely to carry on shedding jobs until at least the first quarter of 2010.

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INDUSTRY NEWS

Industry employment fell to 324,236 jobs by December 2009. On a slightly positive note, it appears that the economic slide has now been arrested and we hope that the worst of the extreme operating conditions in industry and job losses will gradually come to an end. Nevertheless, it is anticipated that short-time working arrangements will remain a feature for at least the first half of the year, with industry employment remaining under considerable pressure. Interestingly, total industry employment data as at December of each year (based on the monthly employee contributions to the bargaining council pension and provident funds) for the period ending 2009, shows employment levels in industry back at levels last seen in the mid-1980s.

Update on the industry funds' surplus apportionment scheme

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Conclusion

There is little doubt that 2009 (as measured against 2008) was an extremely difficult period with the prospects for further job losses and the continuation of short time working and lay-off arrangements expected to continue well into 2010.

n accordance with the provisions of the Pension Funds Act, the metal industry pension and provident funds are required to determine the funds' surpluses and to formulate a proposed surplus distribution and apportionment scheme for the benefit of former members and other defined fund stakeholders. This proposed surplus apportionment scheme must be submitted to the Registrar of Pension Funds by the end of September this year. Acting in accordance with this legal obligation, the pension and provident fund trustees appointed a surplus committee to manage this process and to formulate the proposed surplus apportionment scheme. This process is now well advanced and it is anticipated that the draft apportionment scheme and all the necessary supporting actuarial data and investigations will be finalised very shortly. The proposed scheme, once finalised by the committee, must be referred to the funds' trustees for approval. Following the trustees' approval, it must then be communicated to the industry for input and comment. Once all the particular issues raised by the stakeholders during the consultation period have been satisfactorily resolved, the draft apportionment scheme may then be submitted to the Registrar of Pension Funds for final approval. Once approved by the Registrar, the scheme must then be implemented - with former members and pensioners receiving their designated share of the available surplus. Importantly, the former members only participate in the share of the surplus to the extent that the benefits they received at the time of exiting the funds were less than the prescribed minimum benefits now prescribed by the Act. The balance of the surplus must then be equitably distributed between the stakeholders to the funds, including members with unclaimed benefits, active members and the party employers. The members of the surplus committee hope to finalise the draft apportionment scheme shortly and then to present it to the trustees, stakeholders and Registrar, respectively. It is anticipated that the surplus distribution process will probably only commence during early 2011. The funds' actuary is currently preparing a detailed update of the surplus apportionment scheme for presentation to the SEIFSA Council. This update will be published in the next issue of SEIFSA News.

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SKILLS DEVELOPMENT

An historical occasion ­ The QCTO is launched

he long-awaited launch of the Quality Council for Trades and Occupations (QCTO) attended by a full house of invited guests including NSA members, Seta CEOs, officials from a wide range of government departments including the DHET, DoL and DTI, task team members and the German donor funding agency, the GTZ, took place at the Gallagher Convention Centre at a high profile celebration on Tuesday, 23 February 2010. The Skills Development Act, as amended in 2008, makes provision for the establishment of the QCTO. This body is envisaged to: 4 Support improvement in the quality assurance for learning in and for the workplace; 4 Be a centralised body for the development, monitoring Minister Blade Nzimande and Professor Merlyn Mehl at the launch of the QCTO and quality assurance of occupationally related qualifications as an effective and industry-driven system to learning and will function closely with SAQA, Umalusi ensure that workplace learning needs are addressed. and the Council on Higher Education. Professor Merlyn Mehl gave an inspiring address at the ceremony with a strong focus on the importance of a system designed to support and enhance workplace learning, to codify knowledge production from the workplace environment and to challenge the intellectual primacy of institutionalised education. The keynote address was delivered by Minister of Higher Education and Training, Dr Blade Nzimande. After giving a brief introduction to the background to the development of the QCTO emerging from the NQF review process, he gave an impassioned presentation on the strategic imperative of an integrated approach to post-school-education and the potential benefits of the QCTO in laying the foundation for workplaces to become more productive. Newly appointed QCTO Board members under the chairmanship of Wilson Nzimande were introduced to the gathering as well as the acting CEO, Adrienne Bird. Employers will certainly welcome the formation of the QCTO and see the appointment of the new Communities of Expert Practice (CEPs) comprising industry experts with subject matter expertise to develop standards and

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Employer Representatives on the QCTO

Nominations for Board members were submitted via the BUSA/Nedlac process and SEIFSA congratulates the two representatives who have been appointed to serve on the QCTO Board to represent employer interests: Willy Matthiae (SEIFSA nomination) Stella Carthy (Chamber of Mines nomination)

We need to create an intellectual home for workplace learning Professor Merlyn Mehl

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SKILLS DEVELOPMENT

Merseta Newsflashes

Enhanced Benefits for Merseta Levy Payers

Introduction of Steel Erector as a new ATRAMI occupation

he new occupation of Steel Erector which was promoted by SEIFSA has been approved by the Merseta and the MEIBC. It therefore becomes the fourth Atrami occupation (together with pipe fitter, machine toolsetter and universal grinder) to be registered. Copies of the training schedule are available from the Merseta.

Merseta Accelerated Artisan Training Programme (AATP)

he Merseta is inviting further applications from companies wishing to participate in the ground-breaking accelerated artisan training programme over an 80 to 90 week period with a R90 000 discretionary grant payable per candidate. This innovative, modern apprenticeship programme fast-tracks artisan development through up-front institutional training until all the modules in the training schedule have been completed. This is followed by workplace training once the apprentice is indentured for the balance of the training period leading up to the completion of a qualifying trade test. Participation in this project is subject to a minimum apprentice intake of ten or more candidates per company. Employers also need to have enough qualified artisans to mentor the apprentices i.e. a ratio of one qualified artisan to two apprentices is the normal requirement according to workplace approval quality assurance standards. Full details of the entry requirements for candidates can be accessed on the Merseta website under the heading PROJECTS ­ AATP. Enquiries and applications for participation can be submitted to the Senior Project Manager, Ms Helen Brown on [email protected]

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Merseta Mandatory Grant Applications ­ deadline for submission of applications: 30 June

atanet information can be accessed on the Merseta website www.merseta.org.za under the heading Mandatory Grant Information. Contact the SEIFSA office for advice and assistance or for information on training committee workshops.

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Merseta Discretionary Grants for 2010/2011

he criteria, categories and amounts for discretionary grants will be finalised shortly for the financial year commencing on 1 April. Details will be posted on the SEIFSA website during March.

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Voucher Implementation Project for SMEs (VIP)

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Toolbox pilot project

ME companies with fewer than 50 employees can still make application for funded training through the VIP project. As a result of high demand, prioritisation of applications has become necessary and funding is currently confined to technical courses accredited by the Merseta. Vouchers issued have a validity of three months. An independent impact evaluation of the project is currently being conducted.

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ME companies with fewer than 50 employees can make application to the Merseta for free toolboxes for their apprentices. Applications can be made on-line through www.mersetatoolbox.co.za. The support desk for queries can be contacted on (011) 412-4870/4.

Retrenchment Assistance Plan (RAP)

he revised guidelines for the Merseta RAP scheme which provides funded training for retrenched workers will be posted on the SEIFSA website shortly.

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SEIFSA News 4 March 2010

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SKILLS DEVELOPMENT

A celebration of apprentice excellence

n 20 March, a newly-qualified young South African fitter-and-turner from an accelerated apprenticeship programme jointly run by SEIFSA and the Swiss-South African Cooperation Initiative (SSACI) will board a plane for Switzerland to do a four-week internship with Bühler, a Swiss technology company and global leader in food processing, chemical process engineering and die casting. The lucky artisan is one of the first graduates of a group of forty formerly unskilled, unemployed youngsters who have been put through accelerated apprenticeships ­ intensive 80-week programmes leading up to a trade test - in various engineering trades at Fundi Training Centre, Benoni. Accelerated apprenticeships were originally developed by SEIFSA to help alleviate critical skills shortages in the engineering industry. SSACI is a public-private partnership in development between the Swiss government's international agency for development cooperation, SDC, and Swiss companies trading in South Africa. It opens up new pathways to employment for young South Africans through skills training projects, especially in engineering and the trades. In 2008, SSACI saw the potential of accelerated apprenticeships to revitalise technical skills training in South Africa and to fast-track youths with an aptitude for engineering trades into skilled employment. It entered into a partnership with SEIFSA to fund a group of 40 apprentices and use them to showcase the concept of accelerated apprentices to the industry and the South African government. In this way, it is hoped more resources could be brought to skills training. Amongst SSACI's corporate sponsors are well-known manufacturing and engineering firms such as ABB, AfriSam,

O

The top six students at the Fundi Training Centre

Bühler, Hilti and Schindler. Through SSACI, companies like these and the Swiss government have together committed over R90 000 000 to skills development for South African youths. The companies have also provided internships and work experience for hundreds of students in mechanical and electrical engineering courses at public FET colleges. SEIFSA looks forward to interviewing the winner of this high profile award for the next edition of SEIFSA News and congratulates SSACI on their highly practical and focused support for meaningful vocational training initiatives that contribute to the pool of skilled artisans in SA in scarce skill trades.

BBBEE ­ A case study of success through skills development

I

ncreasingly, organisations are viewing BBBEE requirements as yet another compliance tax. However, this need not be the case. Managed effectively, BBBEE requirements can be turned to value-adding advantage. Tri-metals, a medium-sized engineering company with an annual turnover of around R46 million has government as a major client. Compliance with the BBBEE code was mandatory. Tri-metals uses several small, black-owned suppliers ­ in line with the BBBEE code. However, Tri-metals wanted to maximise its points to take full advantage of the benefits that it could derive. Section 600 of the BBBEE code, Enterprise Development, was its target, given the substantial 15 points the section carries. HR Director Piet Swanepoel's view was that, while meeting the code's requirements, the company should look for additional value that they might gain in the process. The company's main black-owned supplier Tri-metals had severe challenges with general business management, resulting in regular cash-flow problems and late deliveries. This impacted on own profits. If the situation was to improve, the supplier's business and management skills needed to be improved. Swanepoel sourced a small business management programme for the supplier, but added an innovative

spin. He and four of his team leaders joined the supplier on the two day Team Business training programme, run by Business Education Design, working as mentors to the other participants. In the process, there were numerous valuable benefits both for Tri-metals and for its supplier: 4 They jointly identified and are now implementing further supply opportunities for Tri-metals. 4 The quality of service delivery from the suppliers improved dramatically and the supplier-customer business relationships are effective, constantly seeking win-win outcomes. 4 Because the investment was made in Tri-metal's own supplier, they were able to claim 125% of the costs incurred A final, yet critical, benefit was that the team leaders themselves left the programme with enhanced business understanding and skills. SEIFSA clients interested in this approach can contact SEIFSA's alliance partner, Business Education Design (Pty) Ltd on (011) 501-3001, email [email protected] or Janet Lopes on (011) 298-9405 or email [email protected]

Note: The name of the company has been changed to protect its identity.

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SEIFSA News 4 March 2010

SEIFSA News 4 March 2010

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CASE STUDY

INDUSTRIAL RELATIONS

The imprisoned employee:

new decision

A

ll kinds of contractual issues arose in NUM & another v CCMA & others. The employee, in the service of Eskom, was arrested for the death of another person (this matter was not work related). The employee was eventually convicted on a charge of culpable homicide and sentenced to five years' imprisonment. Soon after starting his sentence, his term of imprisonment was changed, for some reason, from five years to ten months. But he was informed by the employer that, because he was no longer able to work, he had repudiated his contract of employment and that the employer had accepted this repudiation. The trade union tried to do what it could for the employee, but was informed that he had not been dismissed. The CCMA commissioner, charged with arbitrating an unfair dismissal dispute, found that no dismissal took place in this case. The employment contract automatically terminated because of impossibility of performance on the part of the employee. The employee was the author of his own misfortune. This was the only real reason the CCMA commissioner gave for rejecting the employee's claim that he had been unfairly dismissed: that because of the employee's inability to perform, the employer had accepted his repudiation of the contract. There was, therefore, no dismissal because the contract of employment "automatically" terminated as a result of the impossibility of performance. The Court pointed out that there were a number of decisions that the CCMA commissioner could have looked to for guidance. The Court also pointed out that the award contradicted itself. The commissioner said that if the impossibility was temporary (as it was in this case) the employment contract was suspended. But if the impossibility to perform was permanent or for a lengthy period, the commissioner said, the contract terminates once the permanency had been established. But the commissioner failed to make any finding on whether the inability to perform was temporary or permanent in this specific case. Because the Labour Court intended to refer the matter back to the CCMA to be heard by another commissioner, the Court was reluctant to say too much about the merits of the case. it is clear, however, that the issue of the length of the employee's imprisonment would play a significant role. The second commissioner would have to establish whether the employee's imprisonment would be for a relatively short period or for a lengthy or permanent period. This really is the crux of the matter in situations where an employee has been imprisoned. Once the issues become clouded with contractual principles (impossibility of performance, repudiation of the contract, acceptance of the repudiation, etc) things become more difficult than they really should be. In most cases, it is sufficient if the

employer simply deals with the case as one of incapacity. And in this context, the period of incapacity plays a pivotal role. Carl Mischke: IR Network/A Division of LexisNexis Butterworths

The aim of this book is to highlight the predismissal procedures in the Code and assist employers to comply with these pre-dismissal disciplinary procedures when conducting disciplinary enquiries. Contact SEIFSA on (011) 298-9400 to order a copy.

This revised management guideline includes a comprehensive model disciplinary procedure and code suitable for implementation at company level. It also incorporates the Code of Good Practice dealing with key aspects of dismissals and the Code of Good Practice on sexual harassment in the workplace. Contact SEIFSA on (011) 298-9400 to order a copy.

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SEIFSA News 4 March 2010

SEIFSA News 4 March 2010

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SEIFSA News 4 March 2010

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