S&V Weekly Newsletter Vol.4 No.34, August 27, 2018

This Newsletter is sponsored by SAFLIA

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Lesotho apparel sector wage rates rocket

Maseru (Lesotho) – Following a delay of 5 months, labour unrest and a strike, the Lesotho Minister of Labour and Employment, Keketso Rantso, on August 18 announced increases ranging from 27% to 37% in the country's minimum wage rates for the textile sector. Annual increases are normally published in April.
       An observer close to the Lesotho apparel sector said that because the increases were not retrospective to April, the increases were not as steep for the 2018/19 year, but that they would have a much bigger impact on the 2019/20 year, and he predicted this would lead to major disinvestment by Taiwanese companies which set up in Lesotho to take advantage of AGOA.
       The rates below are monthly wages (note: M = Maloti, which is 1:1 with the SA Rand):

The rates are still way below South African wage rates, where entry level footwear workers earn R7135 per month following the latest wage agreement.
       The clothing, textile and leather manufacturing sector in Lesotho includes footwear, luggage, handbags, belts and the components and services used to make them, excluding informal enterprises and businesses employing fewer than 20 people.
       There are currently 2 footwear manufacturers in Lesotho - Reflex Footwear (linked to Stanhope Boot & Shoe in Pinetown) and Jaguar Shoes (formerly Springfield Footwear, linked to Novita Shoes in Durban). Reflex director Rudi le Roux said he had not yet seen the Government Gazette, and was unsure what the implications would be, "but it will definitely affect us".

Workers in Lesotho's retail sector received much lower increases - close to 7% - although their wages are higher than the textile sector:

Retail sector

Kenya seeks SA buyers for fair

From Yassin Awale, Leather Sector Advisor, Ministry of Industry, Trade and Co-operatives
Nairobi (Kenya) – As you are aware Kenya will be hosting ITMF (https://www.itmf.org) and Origin Africa (http://originafrica.org) 7-11 September 2018.
       During Origin Africa we have various exhibitors in the textile, cotton, apparel , leather and leather products both large manufacturers and MSMEs. Immediately after the expo we are planning to have an MSME workshop and have various talks especially from international buyers and manufacturers where we hope to provide insight to product manufacturers as to what are the market demands and trends to enable them grow their export businesses.
       For this forum we are trying to identify key buyers of footwear and leather products and accessories, would you have any names (contacts) in mind that we could extend an invitation to, both in South Africa as well as Europe, Asia and USA? - +254 722 710 162, yassin.awale@gmail.com

Just a nice story

From Ernest Heunis, chairman, Skin, Hide & Leather Council

Ernest and Beverly Heunis (left) with their tour party outside Strassberger Skoene.

My wife and I where on a tour with Namaqua Tours to see the Namaqualand flowers and we stopped in Clanwilliam at Strassberger Skoene.
       It was amazing to see how many of the tourists (all South African) bought themselves a pair of genuine South African pair of leather shoes.
       This in contrast to another roadside shop called Kardoesie, outside Citrusdal, where my wife bought an expensive sunhat that had a South African flag label on it as well as a CANSA (Cancer Association of South Africa) label. On lifting the CANSA label there was another label underneath - MADE IN CHINA.
       What a shame!!!

They Said It

"It's an amazing story - very few companies actually get out of business rescue." - PQ Clothing CEO Greg Horwitz. We will carry an article on the company in the next newsletter.

From: Clive Jackson Moss [mailto:clive@tanschool.co.za]
Sent: 19 August 2018 03:07 PM
To: Tony Dickson
Subject: busy with article

Hi Tony
Just to let you know I am busy with the article. Did not forget. Just needed to mark some student tests urgently on Friday while invigilating another test. Regards
Clive

From: Tony Dickson [tony@svmag.co.za]
Sent: 19 August 2018 07:13 PM
To: 'Clive Jackson Moss' [clive@tanschool.co.za]
Subject: RE: busy with article

Methinks you protest too much...I'm sure you have spent the day relaxing, drinking beer and ogling some pretty sheep.

From: Clive Jackson Moss [mailto:clive@tanschool.co.za]
Sent: 19 August 2018 07:45 PM
To: 'Tony Dickson'
Subject: RE: busy with article

No relaxing or drinking beer, but I must confess I did ogle some sheep!!!!

Note: I'm never quite sure whether Clive is joking about those sheep...

Exchange rates

Source: http://www.x-rates.com/calculator/

27/08/1945: Krish Gangiah, Impact Footwear, Durban.
27/08/1962: Vidrik Thurling, Thurling Investments, Cape Town.
28/08/1947: Kathy Graham, retired, formerly Bagshaw, Port Elizabeth.
28/08/1964: Maon Saxe, Lonshoe Holdings, Cape Town.
28/08/1969: Craig Munro, ? formerly Crafcor Hart Hides (closed), Pietermaritzburg.
29/08/1961: Steve Miller, Dodo's/Franco Ceccato, Cape Town.
29/08/1976: Minesh Gangiah, Impact Industries Footwear Manufacturers, Durban.
29/08/????: Indira B Ambaram, JFK Trading, Durban.
01/09/1941: Stan Kotkin, retired, formerly Footwear Trading (ceased trading), Johannesburg.
01/09/1942: Judy Vincent, Saddler Belts & Leathercraft, Durban.
01/09/1971: Antonella Florio, Vanity, Ladybrand.
02/09/1941: Saag Jonker, Ostrich Products SA, Oudtshoorn.
02/09/1960: Arveen Boodhoo, Dick Whittington Shoes, Pietermaritzburg.
02/09/1952: Derek Ellway, formerly Inspectashoe [closed], Cape Town, now in the UK.
02/09/1963: Sunil Daya, Randy’s Agency, Port Elizabeth.

In Memoriam this week

27/08/2006: Keith Barkus (b. 08/04/1954), agent, Durban.
28/08/1997: Richard Denton (b. 24/06/1914), Ricmar group [closed], Durban.
28/08/2013: Tony Denton (b. 06/03/1943), Ricmar group [closed], Himeville.
30/08/1997: Neville Socher, Medicus agent.
01/09/2012: Mike Cromhout (b. 06/02/1947), agent, Cape Town.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

ABSA Agri Trends 23/08: Hides & skins prices

The average hide price over the past week was R5.34/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. The average price for Dorper skins was R36.00, and for Merino skins was R91.00.

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

Classified Adverts

In need of a boardroom?

SAFLEC, situated at 6 Stedman Mews, 128 Jan Hofmeyr Road, Westville, has a boardroom for hire.
       It seats up to 12 people around a table, and has space to add up to 15 more chairs in the room. You are welcome to view the room before hiring.
       For more information, please contact Louise on 031 266 1473 or louise@saflec.co.za.
We look forward to being of service.

Contact us

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

Next newsletter: September 3, 2018.

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