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S&V Weekly Newsletter Vol.2 No.32, August 15, 2016

S&V Footwear and Leather Goods / S&V African Leather/ S&V Protect

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

 

National Treasury Draft Export Tax Guidelines status

Plan to tax raw and wet blue hides ‘still under consideration’

From Jay Irkhede, Director: Leather & Footwear, the dti

Pretoria (SA) – The National Treasury presented a Draft Export Tax Guidelines at the Export Tax workshop conducted on the 26th May 2016. This followed the instructions from the dti executives to start compiling the information required for (1) scrap metal, (2) skins and hides, and (3) chrome, based on the draft presented.
In mid-July 2016 the dti officially requested National Treasury if the Draft Export Tax Guidelines have been finalised and if the dti can proceed with this work. The response in August 2016 from the National Treasury indicates that the guidelines might further change depending on feedback from the cluster/cabinet/public consultation process. The National Treasury official also indicated that above approval process then has to fit in with normal tax processes – and the tax laws amendment bill – which will take some time.
Though the National Treasury indicated that there will be no resistance to the general idea of an export tax, the dti has raised concerns over a long process by National Treasury since the work is still under-way after four years, and a definitive 'go-ahead to do the necessary preparation' will be required from National Treasury on scrap metals and hides.
In the interim, the dti will continue the work of Skins and Hides beneficiation policy in coordination with the industry. Also, the dti has expressed its satisfaction on the very positive outcome from the leather industry, the advancement and the contributions made by the leather sub-sector to the national economy during the last five years. – [+27 (0)83 875 3388, jirkhede@thedti.gov.za]

 

SATRA workshops reminder

SATRA will run 4 production efficiency systems demonstration workshops this month, hosted by SAFLIA and the DTI.
The first will be in Cape Town, at Jordan Shoes, on August 23, starting at 9.00.
The second will be in Great Brak River, at the Southern Cape Region Footwear Cluster, Belhambra House, Charles St, on August 24, starting at 9.00.
The third and fourth will be in Durban at the Hotel School Restaurant, DUT Ritson Campus, on August 25 at 12.00 and on August 26 at 9.00.
SAFLIA has sent invitations to all manufacturers.
It urgently requests that people intending to attend RSVP to Ina Venter at ina@saflia.co.za, to assist with catering.

 

 

Vietnam Minimum Wage Could Increase 7.3%

by Tara Donaldson, Sourcing Journal, Posted on August 4, 2016 in Labour

Just one week after factories proposed a wage freeze for garment workers in Vietnam, labour unions and businesses have agreed to a wage hike.
If the government approves it, Vietnamese workers will see a 7.3% increase to the minimum wage starting in 2017, Thanhnien News reported. The increase amounts to 180,000-250,000 Vietnamese dong ($8-$11) more a month depending on the region. The current average monthly wage ranges from 2.4 million to 3.5 million dong ($108-$157), which, according to local labour unions, still only covers 80% of workers’ basic needs.
Vietnam’s labour federation had proposed an 11% increase, but the Vietnam Chamber of Commerce and Industry, which represents employers in the country, only agreed to 5%. The 7.3% was settled on after negotiations among stakeholders.
Wages have been a contentious issue in Vietnam of late as the rates of pay have gone up an average of 26.4% per year for local business. Earlier this year, wages went up 12.4%.
Because Vietnam has only met 41% of its export target for 2016, textile and garment factories in the country threw out the idea of a wage freeze to help the country maintain its competitiveness. As such, employers were imploring the government to hold off on any hikes for 2017 and only increase the wage thereafter every two or three years.
That request, however, seems to have gone unheeded. The government will now review the wage council’s proposal for next year’s increase and come back with a final decision. If the 7.3% increase gets approved, it would be workers’ lowest pay raise since 2010. – [https://sourcingjournalonline.com/]

 

ABSA Agri Trends 26/07: Hides & skins prices

The average hide price over the past week was R15.42/kg green. Hide prices are determined by the average of RMAA and independent companies.
The average price for Dorper skins was R46.82/skin and Merino was R89.06/skin.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
27/11 13.11 78.75 71.11
15/01 13.45 83.13 84.89
22/01 13.79 82.50 79.79
29/01 13.93 84.44 79.17
05/02 14.18 79.00 85.37
12/02 14.35 79.17 93.27
23/02 13.76 76.50 96.02
01/03 14.09 68.93 94.00
08/03 14.20 67.50 93.29
29/03 13.85 63.85 88.37
05/04 14.15 64.55 87.92
12/04 14.21 64.55 99.17
10/05 14.66 60.00 91.08
17/05 14.50 60.77 92.41
31/05 14.60 54.09 89.48
07/06 15.01 60.42 99.13
14/06 15.08 58.00 87.27
21/06 15.11 56.50 92.27
28/06 15.25 55.42 94.23
19/07 15.30 50.42 92.98

 

Appointments

Pietermaritzburg (SA) – John Bouwer has been appointed marketing manager of Eddels Footwear with effect from September 1, following the resignation of Gavin Wilkins, who said he would be pursuing personal interests. Bouwer has resigned from Bresan Footwear, Hopewell Footwear and Reunion Components’ Angel Soft division, where he was consulting.

Johannesburg (SA) – Skechers distributor has appointed two new agents.
Andy Williams will handle the Western Cape and Gerhard Vorster will handle Gauteng.
Williams, who has over 30 years’ experience as an agent, also imports leather comfort footwear from Portugal (Aco Shoes and Nursing Care)  and Turkey (La Pinta) for better end retailers. He also represents WAM Agencies’ Ferradini range.
Vorster is the former Reebok territory sales manager.

 

Events

Johannesburg (SA) – Upmarket UK retailer Ted Baker is to open a 180 m² store in Sandton City. Operating through stores and online, it carries menswear, womenswear and accessories. – [www.tedbaker.com]

 

They Said It

"I have a few names that I would like you to add to the in memoriam list. Unfortunately, they are still alive." - The Little Slipper Company’s John Ashworth.

 

Birthdays this week

15/08/19??: Bob McDonald, retired, formerly Budget Footwear [closed], Durban.
16/08/1960: Steven Harris, Woodheads, Cape Town.
16/08/1961: Alan Hornby, Topline Agencies, Cape Town.
17/08/1939: Mike di Lembo, Villani Shoes, Johannesburg.
17/08/1945: Roger Benjamin, agent, Port Elizabeth.
17/08/1972: Alistair Watt, Bresan Footwear, Pietermaritzburg.
18/08/19??: Robbie Blom, Leisure Holdings, Durban.
18/08/1971: Rooksana Moosa, Mozak Shoes, Amanzimtoti.
18/08/1961: Braam Pretorius, Watson Shoes, Great Brak River.
18/08/1958: Mike Wallace, agent, Cape Town.
19/08/1959: Luis de Freitas, Leather Leisure, Welkom.
19/08/1979: Suran Sukdav, Ornella Footwear, Durban.
20/08/1965: Craig Brouwer, Albatros Clothing & Promotional Gifts, Germiston.
20/08/1980: Nicholas Bryant, A Greenaways, Cape Town.
21/08/1952: Wayne Little, Matas Import, Cape Town.
21/08/1974: Lisa Rheeder, Acol Chemical, Harare.

 

In Memoriam this week

15/08/2011: Geoffrey Leonard Keane-Murphy (b. 08/03/1927), consultant, Durban.
15/08/2011: Newton Wade (b. 16/06/1925), Panama Shoes [closed], Durban.
15/08/2015: MH Moosaji, Trendsetters, KwaDukuza.
16/08/1997: Ed Aubin, agent, Port Elizabeth.
16/08/2012: Margaret Jordaan (b. 15/01/1931), Centra-Cast, Durban.
19/08/2002: Dick Ilsley (b.11/12/1921), BUSM [closed], Durban.
21/08/????: Edward Jones-Davies (b. 10/06/1925), BUSM [closed], Port Elizabeth.

Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.

 

Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

 


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2016 Directories

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Email tony@svmag.co.za for details


  

 

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: August 22, 2016.

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