S&V Weekly Newsletter Vol.6 No.28, July 13, 2020
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Wage negotiations
Compromise for tanning, footwear sectors
Durban, KZN, SA – The Tanning and Footwear sectors of the National Bargaining Council of the Leather Industry of SA, both of which last year reached multi-year wage increase agreements, last week reached a compromise agreement to increase wages by 7.5% from January 1, 2021, instead of from July 1 this year.
Gerald Naidoo, general secretary of the NBC, said both sectors "have recognised that the COVID 19 pandemic has adversely affected the Industry and put in place relief measures to mitigate the financial hardship faced by employers and to minimise job losses. In doing so the parties have recognised the need to review the multi-year settlement agreement reached during the 2019...Wage Negotiation in terms of which an a wage increase of 7.5% was to be implemented with effect from 1 July 2020.
"The parties have agreed to suspend the implementation of the 7.5% wage increase for a period of six months whereby the increase will become effective from 1 January 2021. There was, however, a caveat in that employees who are retrenched at any stage during the suspension shall have their severance payment calculated on current prescribed wage rates increased by 7.5%."
In the General Goods & Handbag sector, he said negotiations had been adjourned to July 24 for employers to revert on unions' settlement proposals.
In addition, he said the NBC had suspended statutory employer and employee contributions to various funds for 6 months, from July 1 to December 31, 2020. The details are:
FOOTWEAR SECTOR RELIEF:
A contribution holiday is granted from the following:
• Council Levies
• Sick Benefit Fund (including the Maternity Levy)
• Footwear Technological Fund
TANNING SECTOR RELIEF
A contribution holiday is granted from the following:
• Council Levies
• Sick Benefit Fund (including the Maternity Levy)
GENERAL GOODS & HANDBAG SECTOR RELIEF
A contribution holiday is granted from the following:
• Council Levies
• Sick Benefit Fund (including the Maternity Levy)
A reduction of the Employer Levy and Agency Fee from R400 per month to R200 per month for the period 1 July 2020 to 31 December 2020.
"The Collective Agreements reached between the respective parties would mean that the members of the employer organisations that are party to the Bargaining Council (viz. Southern African Footwear and Leather Industries Association (SAFLIA); South African Tanning Employers Organisation (SATEO) and the Association of South African Manufacturers of Luggage, Handbags and General Goods) will enjoy the relief from 1 July 2020 and the legal process for the non party employers to enjoy the relief on the contribution holiday is to utilise the exemption provisions made in the respective collective agreements. Exemption applications have been sent to all non party employers, and application for exemptions must be forwarded to admin@nbcli.co.za. Exemptions will be considered through an expedited process and licences of exemptions will be issued by the Council to regulairse the relief.
"It is essential that all employers submit NIL returns, every month, for the duration of the contribution holiday as this will ensure that the Sick Fund pay benefits to the correct members.
"The Council urges those employers who are in arrears with contributions, to utilize the opportunity of the contribution holiday, to settle arrear contributions and submit outstanding returns."
Retail last week
Better than expected
Orkin's Shoe Centre, Orkin's Men's Centre, Orkini. Family footwear, men's outfitter, 3 stores.
Germiston, Gauteng, SA – "We've been quite surprised that there's business to do," member Ivan Orkin said. "We thought consumers would only be spending on essentials like food, but it hasn't been like that. It's down on last year, but there's certainly enough to be satisfied with, and we've had to replenish some lines."
He said the Golden Walk Centre, in Germiston's CBD, was popular and remained fully let "at least for now", and that Orkin's itself, a second generation business, was a destination store. He said the business had taken sanitising seriously, and had been complimented by customers on doing so.
Hanging on
Hamilton's Men's Shop, P. Jeeva. Men's outfitter, 2 stores.
Proprietor Manilal Jeeva said business had been quiet. "I sometimes see just 2 or 3 customers a day," he said, "and I'm fortunate - many other retailers in this centre don't see any on some days".
He said he couldn't afford to retire, and there was no-one else to run the business, "so it's just a case of keeping going. I open later - about 10 - and I close earlier - around 3 - and hope things will improve."
Stock Exchange News Service (SENS)
Steinhoff: Litigation update
Stellenbosch, W Cape, SA (July 06, 2020) – Steinhoff International Holdings N.V. (Steinhoff or the Company and with its subsidiaries, the Group).
Steinhoff International Holdings N.V. notes the market speculation regarding Steinhoff’s continuing efforts to achieve a global settlement of the various litigation claims brought against it in respect of legacy accounting issues announced on 5 December 2017.
Steinhoff has previously announced that it believes a settlement on terms acceptable to the Steinhoff Board to be in the best interests of the Steinhoff Group and its stakeholders. This strategic priority was reconfirmed in the Message from the Management Board that accompanied the Annual Report for the year end 30 September 2019 published on 30 June 2020.
Accordingly, notwithstanding the challenging trading environment Steinhoff continues to assess options, including total settlement value, consideration and terms, for a global settlement of legacy litigation claims and Steinhoff will update the market in due course. It is still uncertain whether any settlement proposal will be announced or whether any settlement will be supported by the Group’s stakeholders.
Death Notices
Paarl, W Cape, SA - Malcolm Novos, managing member of Economic Shoe Store, died on July 06.
Pietermaritzburg, KZN, SA - Avi Govender, proprietor of Leatherhaven in Failsworth Road, died last week from Covid-19.
They Said It
"I've got a lot of great staff who I've taught to think like me - which isn't always a good thing, I suppose." - Rob Steadman, National Trimmings Specialists, Durban, KZN, SA.
"Ah, that Rodney Bryant is a skinderbek. If you ever want to know what's happening in the footwear industry, phone him." - Former Green Cross staff member Pierre Marais, whose accident was reported in the June issue of S&V Footwear & Leather Goods. When I asked Rodney whether he was comfortable with me publishing it, he said: "No problem at all. I have been around for so long, I should know what's going on by now."
"50% Off Winter Clothing & Footware - Sale Now On!" - Makro newsletter on Friday. Not even multinationals can spell, it seems.
Got anything you'd like to share?
Do you have any suggestions, comments or experiences about the lockdown that you'd like to share with the industry? We will publish the throughout the lockdown, so please let us know. - tony@svmag.co.za
Exchange rates
1. SA Rand (ZAR)
Source: http://www.x-rates.com/calculator/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2020/01/04 |
R15.97 |
R18.71 |
R14.31 |
R2.05 |
| 2020/01/11 |
R15.97 |
R18.76 |
R14.36 |
R2.07 |
| 2020/01/18 |
R16.04 |
R14.47 |
R14.47 |
R2.10 |
| 2020/01/25 |
R15.87 |
R18.82 |
R14.39 |
R2.07 |
| 2020/02/01 |
R16.54 |
R19.81 |
R15.00 |
R2.16 |
| 2020/02/08 |
R16.48 |
R19.41 |
R15.06 |
R2.15 |
| 2020/02/17 |
R16.16 |
R19.44 |
R14.90 |
R2.13 |
| 2020/02/22 |
R16.27 |
R19.43 |
R15.00 |
R2.13 |
| 2020/02/29 |
R17.27 |
R20.08 |
R15.66 |
R2.24 |
| 2020/03/07 |
R17.69 |
R20.44 |
R15.67 |
R2.26 |
| 2020/03/14 |
R18.04 |
R19.94 |
R16.25 |
R2.32 |
| 2020/03/21 |
R18.92 |
R20.50 |
R17.60 |
R2.48 |
| 2020/03/28 |
R19.63 |
R21.93 |
R17.61 |
R2.48 |
| 2020/04/04 |
R20.58 |
R23.37 |
R19.03 |
R2.68 |
| 2020/04/11 |
R19.70 |
R22.43 |
R18.01 |
R2.56 |
| 2020/04/18 |
R20.43 |
R23.49 |
R18.79 |
R2.65 |
| 2020/04/25 |
R20.59 |
R23.53 |
R19.02 |
R2.68 |
| 2020/04/30 |
R20.24 |
R23.27 |
R18.51 |
R2.62 |
| 2020/05/09 |
R19.89 |
R22.69 |
R18.29 |
R2.58 |
| 2020/05/16 |
R20.11 |
R22.49 |
R18.58 |
R2.61 |
| 2020/05/23 |
R19.24 |
R21.47 |
R17.64 |
R2.47 |
| 2020/05/30 |
R19.48 |
R21.67 |
R17.54 |
R2.45 |
| 2020/06/06 |
R18.93 |
R21.28 |
R16.77 |
R2.37 |
| 2020/06/13 |
R19.19 |
R21.39 |
R17.06 |
R2.40 |
| 2020/06/20 |
R19.37 |
R21.28 |
R17.25 |
R2.43 |
| 2020/06/27 |
R19.35 |
R21.28 |
R17.25 |
R2.43 |
| 2020/07/04 |
R19.14 |
R21.24 |
R17.01 |
R2.40 |
| 2020/07/11 |
R18.94 |
R21.16 |
R16.77 |
R2.39 |
Note: For previous rates, see HERE
2. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2020/06/20 |
20.39 |
22.53 |
18.24 |
2.58 |
| 2020/06/27 |
20.48 |
22.52 |
18.25 |
2.57 |
| 2020/07/04 |
20.24 |
22.46 |
17.99 |
2.54 |
| 2020/07/11 |
20.54 |
22.94 |
18.17 |
2.59 |
3. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2020/06/20 |
405.54 |
446.91 |
361.90 |
51.17 |
| 2020/06/27 |
405.98 |
446.46 |
361.90 |
51.13 |
| 2020/07/04 |
407.08 |
451.78 |
361.90 |
51.21 |
| 2020/07/11 |
408.89 |
456.71 |
361.90 |
51.70 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (July 07, 2020) - The current average hide price increased by 5.4% to R0.73/kg from R0.69/kg green a week ago. The current price, however, is 1.7% higher than the average price a month ago and is 56.2% lower than the average price a year ago. The local hide industry is expected to remain under pressure for the next few months. Prices are almost zero (across the board) with absolutely no demand and no expectation for any changes ahead. NB* Hide prices are determined as the average of the RMAA (Red Meat Abattoir Association) prices and prices of independent companies. - Abrie Rautenbach, head Absa agribusiness, and Conce Moraba, agricultural economist, Absa group.
| Hide & skin price progression |
| Date |
Hides/Kg |
Dorper/Skin |
Merino Skin |
| 2020/01/03 |
1.38 |
35.00 |
46.67 |
| 2020/01/10 |
1.42 |
28.69 |
45.71 |
| 2020/01/17 |
1.35 |
30.74 |
45.71 |
| 2020/01/24 |
1.39 |
33.75 |
48.14 |
| 2020/02/07 |
1.36 |
33.47 |
47.50 |
| 2020/02/14 |
1.36 |
33.75 |
47.50 |
| 2020/02/21 |
1.32 |
33.75 |
47.50 |
| 2020/02/28 |
1.29 |
37.22 |
43.89 |
| 2020/03/06 |
1.29 |
36.50 |
43.50 |
| 2020/03/13 |
1.31 |
36.00 |
43.50 |
| 2020/03/27 |
0.93 |
37.22 |
48.33 |
| 2020/04/03 |
0.92 |
37.78 |
47.36 |
| 2020/04/10 |
0.89 |
35.63 |
42.22 |
| 2020/04/17 |
0.88 |
39.38 |
41.25 |
| 2020/04/24 |
0.89 |
33.82 |
43.33 |
| 2020/05/01 |
0.82 |
34.55 |
46.88 |
| 2020/05/08 |
0.82 |
32.10 |
43.33 |
| 2020/05/18 |
0.77 |
32.10 |
43.33 |
Note: For previous prices, see HERE
13/07/1954: Peter Handley, Coventry Shoes, Durban.
14/07/1969: Veronica Clausen (nee Haupt), Clicka Heels, Johannesburg.
14/07/1971: Laurence Lotzoff, Dale Footwear, Johannesburg.
15/07/1933: Joe Powell, retired, formerly Footwork, Trafalgar.
15/07/1971: Philipp Rein, Thurling Investments, Mossel Bay.
16/07/1954: Lex Devlin, emigrated, formerly ACA Threads, PE.
16/07/1956: AR Noorbhai, Razno Agencies, Johannesburg.
16/07/1974: Marisca Ras, The Health Shoe Shop, Pretoria.
17/07/1947: Hennie van der Merwe, chairman, KKI board, Oudtshoorn.
18/07/1950: Magda Erlank, Me Boutique, Newcastle.
18/07/1963: Peter Colombo, formerly Hippo Bag & Screen [closed], Cape Town.
18/07/1973: Sanjay Bhagwandas, Ginger Bhagwandas Exclusive, Durban.
18/07/1974: Zunaid Gathoo, Shoe Zone, Sasolburg.
19/07/1946: Mohamed Iqbal Ahmed, A.V. Mohamed & Sons, Louis Trichardt.
19/07/1967: Fatima Do Tanque, Super Save, Aliwal North.
19/07/1968: Hussein Feyssa, Hafde Tannery, Addis Ababa, Ethiopia.
19/07/1977: Shantell Sables, Elan Polo, Cape Town.
In Memoriam this week
16/07/2004: Frederick (Fred) Howard (b. 16/02/1918), King Tanning Company [closed], King William’s 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.
Have a look at these links
We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Chichobello, Cape Town, W Cape, SA. Bags, jewellery and shoes retailer.
Chilli Mer Boutique, Cape Town, W Cape, SA. Women's boutique, men's clothing
Classified Adverts
THRIVING RETAIL BUSINESS FOR SALE IN KLERKSDORP
Ramjee's Shoe Store, an up-market, reputable and well-established Footwear and Men's Clothing outlet in an incredible location (between 2 Taxi ranks). Well stocked and with a fully trained team. Serves a host of discerning clients, locally and regionally.
Full turnover and inventory figures will be provided on request.
Owner retiring after 40 years of highly profitable trade.
Enquiries: Email kokila.ranchhod@gmail.com or call Bharat 018 462 8211.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: July 20, 2020.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za
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