S&V Weekly Newsletter Vol.7 No.33, August 16 2021
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
NBCLI 'still determined to fine errant flip flop producers and force them to comply'
Durban, KZN, SA – Enforcement proceedings are still underway against flip flop supplier Yun Cheng (Pty) Ltd and its manufacturing arm, Winseen Manufacturer (Pty) Ltd, both based in Germiston, Gauteng, for non-compliance with National Bargaining Council of the Leather Industry of SA (NBCLI) regulations, NBCLI general secretary Gerald Naidoo has confirmed. The issue has been ongoing since 2019.
This follows the failure of Yun Cheng and Winseen last November to convince the Commission for Conciliation, Mediation and Arbitration (CCMA) that they should be considered part of the wholesale and retail sector, and therefore not subject to the NBCLI's wage agreement.
The 2, which supply local chain stores, admitted in their submission to the CCMA that they would "lose money on every pair" if they adhered to the NBCLI's wage agreement.
The NBCLI first had to win a hearing before the CCMA because Yun Cheng and Winseen challenged its authority over them, claiming they were part of the wholesale sector. The CCMA hearing was initially scheduled for December 2019, and was finally settled in November 2020, with CCMA commissioner Prince Kekana ruling in the NBCLI's favour.
Prior to their challenge, Yun Cheng and Winseen were registered with the NBCLI, but "failed to comply with the NBCLI Main Collective Agreement". On 05 November 2019, they agreed to pay close to R4.4 million, in instalments, to the NBCLI in a settlement agreement, but on 13 November 2019 they filed a 'demarcation dispute' with the CCMA.
They delayed proceedings further by requesting that their GM, Sol Zhamg, who couldn't return from China because of Covid travel restrictions, be allowed to testify, and when the CCMA ordered an online deposition by him, they couldn't produce him.
Yun Cheng and Winseen argued that they import most of their uppers and soles, drill the soles and assemble the sandals. Of their 120 staff, most are involved in packaging and dispatch. Just 2 machines, operated by 6 personnel, produce locally-made uppers and soles, which are "miniscule compared to the number of flip flops stored in the warehouse to be sold in bulk", and are "incidental to the main activity of the sale of flip flops".
The NBCLI argued that the businesses were "clearly manufacturing and partially manufacturing footwear", including "assembling uppers and soles by drilling and affixing them", manufacturing soles and finishing components "i.e. screen printing", and manufacturing flip flops.
"All footwear, excluding bespoke footwear, irrespective of the material/s used, fall[s] within [the NBCLI's] scope", it argued.
"On the applicant's own version, [EVA Industries] is a direct competitor...EVA Industries is registered with the NBCLI and compliant with the main collective agreement. The applicants have derived an unfair advantage by avoiding non-compliance at all costs over the years," it said. "They make the admission...when stating that their 'inclusion under the scope of the respondent will result in a loss per flip flop sold'.
In his judgement, the CCMA's Kekana found that Yun Cheng and Winseen are engaged in the leather and footwear industry, that their activities do fall within the scope of the NBCLI, and that they must remain registered with the NBCLI. However, while "the applicants made a concerted effort to delay these proceedings...[and that] it is tempting to order costs against [them]...the requirements of law and fairness dictate that there should be no cost order".
This month, the NBCLI's Naidoo said: "The companies are not paying their employees the prescribed wage rates, nor are they paying the required contributions to the Council. The enforcement proceedings in the Council are underway."
To read the full transcript of the CCMA case, go to:
https://www.svmag.co.za/lists/uploadimages/AWARD_HO3596-19.pdf
Green shoots for Namibia?
Windhoek, Namibia – Trading conditions in Namibia have been "tough for 4 years", commission agent Carl Brinkmann said on Saturday, and while there's little sign the overall economy will improve, the surviving apparel and footwear retailers "are getting a bigger slice of a smaller cake".
He represents Bolton Footwear's Barker and Crockett & Jones brands, and he said he had 9 of the surviving 18-odd Namibian-owned apparel and footwear retail businesses as customers. All other apparel retailers in a country with a population of just 2.3 million are subsidiaries of SA chains.
"Crockett & Jones is a well-liked, good brand here," he said, "but orders have dwindled from 15 000 pairs a season to 4 000."
He said the country was "in serious 'dwang' economically and politically", mirroring the situation in SA. It had had a very serious spike in Covid infections, and many people, including professionals, were out of work.
However, a years-long drought ended last year, and tourism, which represents "at least 15% of GDP", was showing signs of life, with bookings coming through.
Brinkmann, like many Namibian business people, has multiple business interests, including stakes in a pharmaceutical company and a tourism business. "Footwear is actually a sideline," he said, "but I enjoy it."
Adidas to sell Reebok to Authentic Brands Group
Press Release
Herzogenaurach, Germany (12 August, 2021) – Adidas announced today that it has entered into a definitive agreement to sell Reebok to Authentic Brands Group (ABG) for a total consideration of up to €2.1 billion, with the majority to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration. The closing of the transaction is subject to customary closing conditions and is expected to occur in the first quarter of 2022. Adidas intends to share the majority of the cash proceeds to be received upon closing with its shareholders.
“Reebok has been a valued part of Adidas, and we are grateful for the contributions the brand and the team behind it have made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success. As for Adidas, we will continue to focus our efforts on executing our “Own the Game” strategy that will enable us to grow in an attractive industry, gain market share, and create sustainable value for all of our stakeholders,” said Kasper Rorsted, CEO of Adidas AG.
Jamie Salter, Founder, Chairman and CEO of ABG commented, “It’s an honour to be entrusted with carrying Reebok’s legacy forward. This is an important milestone for ABG, and we are committed to preserving Reebok’s integrity, innovation, and values - including its presence in bricks and mortar. We look forward to working closely with the Reebok team to build on the brand’s success.”
Adidas bought Reebok in 2006. At the time, the acquisition included the Rockport, CCM Hockey and Greg Norman brands, which Adidas later divested for a total consideration of €0.4 billion. In 2016 Reebok initiated a turnaround plan called "Muscle Up" through which the brand was able to significantly improve its growth and profitability prospects. In March of this year, Adidas presented its 2025 “Own the Game” Strategy designed to significantly increase sales and profitability and gain market share by 2025. During the strategy formulation process, Adidas assessed strategic alternatives for Reebok with a focus on ensuring both Adidas and Reebok would be well positioned for sustainable growth. Following this evaluation, Adidas decided to focus its efforts on further strengthening the leading position of the Adidas brand in the global sporting goods market and announced the initiation of a formal process to divest Reebok in February 2021.
The sale of Reebok has no impact on Adidas’ financial outlook for the current year or the company’s 2025 financial ambition that was announced as part of its Own the Game strategy in March of 2021.
On its website, Authentic Brands Group says its "global portfolio spans the media, entertainment, luxe, fashion, street, wellness, home, active and outdoor lifestyle sectors".
Its brands are: Above The Rim, Adrienne Vittadini, Aéropostale, Airwalk, Arrow, Bandolino, Barney's New York, Brooks Brothers, Eddie Bauer, Elvis Presley, Forever 21, Fredericks of Hollywood, Frye, Greg Norman, Hart Schaffner Marx, Herve Leger, Hickey Freeman New York, Jones New York, Izod, Judith Leiber, Juicy Courture, Julius Erving, Lucky Brand Los Angeles, Marilyn Monroe, Misook, Muhammad Ali, Nautica, Neil Lane, Nine West, Prince, Shaquille O'Neal, Sports Illustrated, Spyder, Tapout, Thalia Sodi, Thomasville, Tretorn, Van Heusen, Vince Camuto, Vision Street Wear and Volcom.
Looting: The aftermath part 5
DTIC: R3.75 billion to help affected businesses
Pretoria, Gauteng, SA – The dtic and its Development Finance Institutions, the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF) have put together a funding package in support businesses affected by the violent looting and unrests that took place in KwaZulu-Natal and Gauteng last month.
The R3.75 billion package aims to provide industrial loan support at zero percent interest rate to affected companies towards rebuilding of infrastructure, including equipment, fittings for the premises, stock and working capital.
For more information visit
http://www.thedtic.gov.za/wp-content/uploads/Economic_Rebuilding_Package.pdf
Ginger Bhagwandas Exclusive: Thanks to suppliers
By Sanjay Bhagwandas, director
Durban, KZN, SA – We would like to thank all our trading partners for their unwavering support during these trying times. The risk of armed robberies has increased due to last month's events, hence greater vigilance and security is necessary. We are rebuilding under adverse trading conditions and hope for better months ahead as the pandemic dissipates.
Notice Board
Ben Peters
Port Elizabeth, E. Cape, SA - Ben Peters, who led the management buyout that created component supplier Tuftex, died on 06 August, aged 86. An obituary will follow in the August issue of S&V Footwear & Leather Goods later this week.
Chris Greyling
George, W. Cape, SA - Jason Greyling has provided this update on his father's condition:
Hi everyone sorry for taking so long to get back with a update regarding my father's surgery.
We managed to get most of the funds together for the surgery in time for him to have it on the 20th of July. Since then I have refrained from giving updates to make sure that he would be out of the woods before doing so. There was a moment that we had a bit more to worry about shortly after the surgery.
The first night of his surgery he did have a seizure and on the following day was told he would have to go for speech therapy. For a few days after that he struggled to communicate clearly and was in a lot of pain for a week or so after.
Since then he has had a really good recovery and is able to talk more clearly. He is doing really well and the doctors are happy with the outcome and his progress. He is coming back to work on and off for a bit and showing good signs of operating, though should still be resting but he is a stubborn one.
I would like to thank all of you who donated and helped during this time and especially those of you who were supportive, especially to my father.
Moving
Port Elizabeth, E. Cape, SA - The Leather Industry Sick Benefit Fund and the NBCLI Eastern Cape District Committee are relocating on Friday, 27 August 2021, from North End, Port Elizabeth, to First Floor, Fiveways Shopping Centre, 62-64 Cape Road, Richmond Hill, Port Elizabeth, 6001.
The postal address, phone and fax numbers and email addresses will remain the same.
The office will be closed on Friday, 27 August 2021.
Tracking down a relative
I wonder if you can help me trace any records relating to my uncle, Charles Cross, who emigrated from England to Port Elizabeth in 1928 as a shoe designer. Do any of the shoe manufacturers at that time still exist in Port Elizabeth? Any leads you can give me would be greatly appreciated. - Michael Cross (michaelcross1710@gmail.com)
Editor's Note: If anyone has any suggestions to make about Charles Cross, please let me know, even if you also respond directly to Michael Cross.
Fairs
ACLE rescheduled to November
Shanghai, China – The organisers of All China Leather Exhibition (ACLE) announce that ACLE 2021, originally scheduled to be held at the Shanghai New International Expo Centre from 31 August to 2 September, will be rescheduled to 23 - 25 November 2021 at the same venue.
The change comes as a result of the tightened preventive measures introduced by the Shanghai Pandemic Prevention and Control Department. ACLE is the definitive and only international leather fair in China. Every year ACLE has welcomed hundreds of thousands of buyers from the main tanning and leathergoods, footwear, automotive and furniture manufacturing provinces of Mainland China.
They Said It
"I had to reply to this section below.
An urgent request to readers: this is the first week in the six-and-a-half years that we have been producing the newsletter that we have more names in the in memoriam section that under birthdays
I also know more people in the Memoriam section (almost every week) than the Birthdays--not a good sign!" - Glen Mitchell, Shoprite Checkers, Cape Town, W. Cape, SA
"Simply put: Unless you live in KZN , you have no idea of the impact of the looting, devastation, destruction and heartbreak that it has had on businesses and people in general. Businesses that have been handed down and been trading for over 40 – 50 years plus are gone." - Jeff Isaacson, commission agent, Durban, KZN, SA.
Directory and Calendar updates
The S&V Directory and the S&V Calendar are dynamic documents, undergoing ongoing constant updating. Readers are therefore advised to refer to them at least once a week.
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
16/08/1957: Paul McMillan, Reflex, George, W. Cape, SA.
17/08/1939: Mike di Lembo, retired, formerly Villani Shoes, Johannesburg, Gauteng, SA.
17/08/1959: Berkly Lupton, Apeco, Johannesburg, Gauteng, SA.
17/09/1969: Rajeev Pattundeen, Palm Footwear, Durban, KZN, SA.
17/08/1972: Alistair Watt, Bresan Footwear, Pietermaritzburg, KZN, SA.
18/08/19??: Robbie Blom, Leisure Holdings, Durban, KZN, SA.
18/08/1958: Mike Wallace, agent, Cape Town, W. Cape, SA.
18/08/1961: Braam Pretorius, ?, formerly Watson Shoes, Great Brak River, W. Cape, SA.
18/08/1971: Rooksana Moosa, Mozak Shoes, Amanzimtoti, KZN, SA.
19/08/1959: Luis de Freitas, Leather Leisure, Welkom, Free State, SA.
19/08/1979: Suran Sukdav, Ornella Footwear, Durban, KZN, SA.
20/08/1952: Darrell Weir?
20/08/1965: Craig Brouwer, Albatros Clothing & Promotional Gifts, Germiston, Gauteng, SA.
20/08/1980: Nicholas Bryant, A Greenaways and ProFit Safety Footwear, Cape Town, W. Cape, SA.
21/08/1949: Brian Pollock, retired, formerly Jordan Shoes, Cape Town, W. Cape, SA.
21/08/1952: Wayne Little, Matas Import, Cape Town, W. Cape, SA.
21/08/1974: Lisa Rheeder, Acol Chemical, Harare, Zimbabwe.
22/08/1936: Norma Varley, retired, Edgars, Durban, KZN, SA.
22/08/1945: Richard Hirsch, Richardson's Shoes, Johannesburg, Gauteng, SA.
22/08/1954: Jax Snyman, The Sweat Shop, Johannesburg, Gauteng, SA.
In Memoriam this week
16/08/1997: Ed Aubin, agent, Port Elizabeth, E. Cape, SA.
16/08/2012: Margaret Jordaan (b. 15/01/1931), Centra-Cast, Durban, KZN, SA.
17/08/2016: Alan Sykes (b.17/10/1945), Western Tanning [now Mossop Western Tanning] and Corium [closed], Wellington, W. Cape, SA.
17/08/2020: Manilal Jeeva (b. 23/07/1944), P. Jeeva Outfitters, Pretoria, Gauteng, SA.
18/08/2016: Christian Meyer (b. 16/12/1936), Jack & Jill [closed], Port Elizabeth, E. Cape, SA.
19/08/2002: Dick Ilsley (b.11/12/1921), BUSM [closed], Durban, KZN, SA.
19/08/2019: Ronald 'Ronnie' Harris (b. 4/12/1934), La Nuova Shoes [closed], Pinetown, KZN, SA.
20/08/2016: Gordon Horsfield (b.), GW Cowie & Co, Durban, KZN, SA.
21/08/????: Edward Jones-Davies (b. 10/06/1925), BUSM [closed], Port Elizabeth, E. Cape, SA.
21/09/1993: Bhagwandas Dayaram Ambaram (b. 15/07/1943), JFK Trading, Durban, KZN, SA.
22/08/2006: Bob Butler (b. 01/02/1928), Burton’s Shoes, Cape Town, W. Cape, SA.
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.
Exchange rates
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/06/26 |
R16.88 |
R19.63 |
R14.14 |
R2.19 |
2021/07/03 |
R16.91 |
R19.70 |
R14.25 |
R2.20 |
2021/07/12 |
R17.04 |
R19.91 |
R14.35 |
R2.21 |
2021/07/17 |
R17.02 |
R19.85 |
R14.42 |
R2.22 |
2021/07/24 |
R17.48 |
R21.41 |
R14.85 |
R2.29 |
2021/07/31 |
R17.33 |
R20.30 |
R14.60 |
R2.26 |
2021/08/09 |
R17.33 |
R20.45 |
R14.76 |
R2.27 |
2021/08/14 |
R17.37 |
R20.42 |
R14.72 |
R2.27 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/06/26 |
12.97 |
15.09 |
10.87 |
1.68 |
2021/07/03 |
12.95 |
15.09 |
10.91 |
1.68 |
2021/07/12 |
12.96 |
15.15 |
10.92 |
1.68 |
2021/07/17 |
12.95 |
15.11 |
10.97 |
1.69 |
2021/07/24 |
13.06 |
15.25 |
11.09 |
1.71 |
2021/07/31 |
13.20 |
15.47 |
11.12 |
1.72 |
2021/08/09 |
12.99 |
15.33 |
11.06 |
1.70 |
2021/08/14 |
13.12 |
15.43 |
11.13 |
1.71 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/06/26 |
961.88 |
1118.55 |
805.90 |
124.84 |
2021/07/03 |
958.45 |
1116.77 |
807.73 |
124.79 |
2021/07/12 |
952.21 |
1112.73 |
802.19 |
123.93 |
2021/07/17 |
955.84 |
1115.17 |
809.54 |
124.94 |
2021/07/24 |
955.43 |
1115.52 |
811.65 |
125.23 |
2021/07/31 |
965.02 |
1130.54 |
813.06 |
125.83 |
2021/08/09 |
957.51 |
1129.86 |
815.31 |
125.70 |
2021/08/14 |
960.30 |
1129.20 |
814.20 |
125.70 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/06/26 |
27.04 |
31.46 |
22.66 |
3.51 |
2021/07/03 |
26.95 |
31.40 |
22.71 |
3.50 |
2021/07/12 |
26.89 |
31.42 |
22.65 |
3.49 |
2021/07/17 |
26.73 |
31.18 |
22.64 |
3.49 |
2021/07/24 |
24.77 |
28.92 |
21.04 |
3.24 |
2021/07/31 |
22.91 |
26.84 |
19.30 |
2.98 |
2021/08/09 |
22.63 |
26.70 |
19.27 |
2.97 |
2021/08/14 |
22.83 |
26.85 |
19.36 |
2.98 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
Official US$ |
2021/06/26 |
431.93 |
502.29 |
361.90 |
56.06 |
85.36 |
2021/07/03 |
429.42 |
500.36 |
361.90 |
55.91 |
85.42 |
2021/07/12 |
429.43 |
501.85 |
361.90 |
55.90 |
85.50 |
2021/07/17 |
427.41 |
498.50 |
361.90 |
55.85 |
85.50 |
2021/07/24 |
426.00 |
497.38 |
361.90 |
55.83 |
85.63 |
2021/07/31 |
429.54 |
503.21 |
361.90 |
56.00 |
85.64 |
2021/08/09 |
424.85 |
501.36 |
361.90 |
55.79 |
85.72 |
2021/08/14 |
426.81 |
501.91 |
361.90 |
55.87 |
85.74 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (12 August, 2021) - The current average hide price increased by 3.28% to R9.93/kg from R9.60/kg a week ago. The current price is 7.21% higher than the average price a month ago and is 1527% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R8.28, Maximum price: R11.00. Please note, we have changed our methodology and price levels are not directly comparable to previous prices that we reported on. Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, Absa group.
Hide & skin price progression |
Date |
Hides/Kg |
Dorper/Skin |
Merino Skin |
2020/11/06 |
2.36 |
26.00 |
44.00 |
2020/11/13 |
2.38 |
23.59 |
40.00 |
2020/11/20 |
2.69 |
35.00 |
50.00 |
2020/11/27 |
3.08 |
36.00 |
49.00 |
2020/12/04 |
3.65 |
34.03 |
49.00 |
2020/12/11 |
3.68 |
33.21 |
50.83 |
2020/12/18 |
3.93 |
32.59 |
51.67 |
2021/12/25 |
4.08 |
34.39 |
51.67 |
2021/01/01 |
3.93 |
34.03 |
54.00 |
2021/01/08 |
3.88 |
31.43 |
46.43 |
2021/01/15 |
4.03 |
31.43 |
46.43 |
2021/01/22 |
4.16 |
30.00 |
47.00 |
2021/01/29 |
4.04 |
33.05 |
50.83 |
2021/02/05 |
3.86 |
31.41 |
45.71 |
2021/02/12 |
4.33 |
35.46 |
45.83 |
2021/02/19 |
4.29 |
34.49 |
50.00 |
2021/02/26 |
4.94 |
34.70 |
47.50 |
2021/03/05 |
5.67 |
38.33 |
51.67 |
2021/03/12 |
4.80 |
42.50 |
59.17 |
2021/03/19 |
4.99 |
35.74 |
52.86 |
2021/03/26 |
6.33 |
35.16 |
55.00 |
2021/04/02 |
6.50 |
31.83 |
49.00 |
2021/04/16 |
8.98 |
37.44 |
50.00 |
2021/04/22 |
8.37 |
|
|
2021/04/29 |
8.98 |
40.96 |
62.00 |
2021/05/06 |
7.56 |
40.96 |
62.00 |
2021/05/24 |
7.82 |
40.83 |
61.67 |
2021/05/28 |
7.47 |
|
|
2021/06/14 |
8.34 |
40.83 |
61.67 |
2021/06/24 |
8.31 |
|
|
2021/07/02 |
8.25 |
42.21 |
66.00 |
2021/07/09 |
9.53 |
46.39 |
64.00 |
2021/07/16 |
8.17 |
39.00 |
61.00 |
2021/07/23 |
8.44 |
43.33 |
67.50 |
2021/07/30 |
7.57 |
39.00 |
61.00 |
2021/08/06 |
9.60 |
39.63 |
64.00 |
2021/08/12 |
9.93 |
|
|
Note: For previous prices, see HERE
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:
Favourite Sports, Newcastle, KZN, SA. Sports goods retailer.
Favourites American, Ladysmith, KZN, SA. Men's outfitter.
Classified Adverts
Lorraine Carol McDonald
Is seeking employment in a secretarial or personal assistant (PA) position in a vibrant and dynamic organization, utilizing my skills and abundant experience to contribute to its future success.
Editor's note: If her surname looks familiar, it should. Lorraine is the wife of footwear production man Dave McDonald, so she is familiar with footwear terms and needs. She also worked for adhesive supplier Genkem when it was a major supplier to the footwear industry.
A comprehensive CV, with references, is available.
She can be contacted at lorrainemcdonald733@gmail.com , 082 337 2831.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: August 23, 2021.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Our website www.svmag.co.za
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