S&V Weekly Newsletter Vol.9 No.20, May 15 2023

Download PDF

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

Wage negotiations

NULAW accepts General Goods and Tanning offers, SACTWU has still to respond

Gerald Naidoo, General Secretary/Principal Officer, National Bargaining Council of the Leather Industry of SA
General Goods and Handbag Sector:
The second round of wage negotiations took place in Cape Town on 03 and 04 May 2023. The Employer Organisation has made the below offer of settlement to the NULAW & SACTWU.

1)      Wage Increase: An increase of 7% on all prescribed operations with effect from 1 July 2023.

   2)      Family Responsibility Leave: Family Responsibility Leave will be increased by one day’s unpaid leave, effective from 1 July 2023.

NULAW has accepted the employer’s offer of settlement whilst SACTWU has indicated that they would need to consult their members before providing an official response to the settlement offer. SACTWU has not responded to the Employer’s offer as yet.

Tanning Sector:
SATEO has made a final offer of settlement to SACTWU & NULAW as follows:
1)      Wage Increase: A wage increase of 7.25% on all prescribed operations with effect from 1 July 2023.

2)      Learners: The provisions for learners in Schedule 1 shall be amended as follows:
Learner-ship shall apply to employees employed on Bands A1, A2, B, C and E in Sections 1, 2, 3, 4 and 5.
The period of learner-ship shall be reduced by six months with the removal of the Second Six months of experience. (learners shall earn 80% of the prescribed rate pay for the first six months of experience and thereafter earn the qualified rate of pay for the operation performed).

3)      Family Responsibility Leave: The scope of Family Responsibility Leave will be broadened to include “when the employee’s biological grandparent is sick”
NULAW accepted the employers’ offer while SACTWU will revert by 25 May.

Footwear
The second round of the Footwear Sector wage negotiation will take place in Durban on 16th & 17th May 2023.

Retailing

Jerry Robins, Elegant Man
Matatiele, Mt Ayliff and Mthatha (E. Cape), Kokstad (KZN), SA - Temperatures are down and winter is on its way but we hope that business will warm up.
      Times are tough … we are now competing with 25+ new stores post lockdown in our small little town.
Nationals and chains have now depleted what was left of the little pie to share …
I would now say that our little town is over-traded with similar merchandise not to mention the so called “fong kong” stores and the lack of protection from major brands re: counterfeit sellers.
      It has become sad that our loyalty over the past 30+ years is not returned; some of the so called bigger or more recognised brands don’t want or need the little guys anymore.
Sad that those same little guys took the gamble to start and launch those so called bigger more recognised brands in these remote areas. Now “we” just discarded and no longer part of the picture 30+ years later.
      It is what it is, most likely it would equate to my quote as this is ultimately what they want, that business ethics and loyalty are just some life morals that no longer exist …
      “SOME PEOPLE ARE SO POOR … ALL THEY HAVE IS MONEY.”

      But we are here to fight and we will serve our customers to the best of our customer’s expectations and requirements … …. we won’t let them down!!!   “

In case you missed it!

The May issue of S&V African Leather Magazine

CLICK HERE TO VIEW IT ONLINE

S&V African Leather Magazine Vol17 No5 May 2023
IN THIS ISSUE:

03 Upfront
- A new quip from Sam Setter in each issue.

05 An Eclectic View
- Chromium VI update 2023. The tanning industry, especially in Europe, needs to fight a political battle if it is to remain viable, writes H. Procter.

08 Sustainability
- Sustainable Leather Foundation awarded contract from Joint Action SIPS to support improvement and development in the SADC region, writes MD Deborah Taylor

10 New Products
- MK Quimica’s Bioderm MK ALV: A safe replacement for sodium chlorite.

12 Occupational Health & Safety
- UNIDO safety course for leather industry.

13 Notice Board
- Kenya appoints board for KLDC ‘to steer economic transformation agenda’.
- Obituary: Shelagh Davy, veteran editor who made a difference.
- George Kotze appointed COO of Reho Meat Processors.
- Julian Osgood takes over as communication head for IULTCS.

15 Exotics
- Croc farm cruelty case to go ahead: SACIA says law must follow its course.

16 Weights & Measures
- Compiled by the ISTT.

17 Trade Statistics
- SA hides, skins and leather trade statistics for March 2023, issued by SARS



Advertisers in this Issue
Authenticae (02), Cape Karoo International (04), Evolution Engineering (01), International School of Tanning Technology (ISTT) (11), Mimosa (09), Rolfes Leather Division (07), S&V Calendar (14), S&V Directory (10), Southern African Footwear & Leather Export Council (SAFLEC) (06), Stahl (OFC), Sustainable Leather Foundation (03).

Stock Exchange News Service

TFG: 14% growth in 4th quarter

Cape Town, W. Cape, SA (Wednesday, 10 May 2023) - Salient features:
- Pleasing Group retail turnover growth of 14,3% achieved in Q4 FY2023, compared to Q4 FY2022, despite the unprecedented levels of load shedding experienced in South Africa and global macroeconomic challenges;
- The Group delivered retail turnover growth of 19,4% for the twelve months ended 31 March 2023;
- TFG Africa recorded retail turnover growth of 15,6% (6,0% excluding Tapestry*) in Q4 FY2023, compared to Q4 FY2022,which was negatively impacted by the high levels of load shedding experienced in Q4 FY2023;
- Per the latest RLC market share figures, TFG continued to grow ahead of the market during Q4 FY2023 and the twelve months ended 31 March 2023, further expanding market share by 0,3% in respect of both these periods, for those categories reported. Given the superior growth of TFG’s Sports Division and the acquisition of Tapestry Home Brands (neither reported via RLC), TFG Africa further entrenched its footprint, customer base and market leadership positions in all its key categories;
- Cash retail turnover growth for TFG Africa in Q4 FY2023 of 17,8% compared to Q4 FY2022. Cash retail turnover for Q4 FY2023 now contributes 74,5% to total TFG Africa retail turnover and 82,5% to total Group retail turnover;
- TFG London’s retail turnover declined 5,2% (GBP) in Q4 FY2023 compared to Q4 FY2022, which period was influenced by pent up demand following Covid-19 lockdowns. This decline in turnover was not however unexpected, in light of the repositioning of the TFG London business model towards a smaller but more profitable business;
- TFG Australia delivered a 6,7% (AUD) growth in retail turnover during Q4 FY2023 compared to Q4 FY2022;
- Group online retail turnover grew 17,7% in Q4 FY2023, whilst online retail turnover contributed 10,8% (Q4 FY2022: 10,5%) to total Group retail turnover;
- TFG continued to invest in capital expenditure to improve logistics infrastructure, local manufacturing, ecommerce capabilities and its store network (new and revamped stores); and
- Strong balance sheet position maintained despite the acquisition of Tapestry, strategic capital investments and higher levels of load shedding.

Outlook: consolidation phase and defending gross margin
TFG has endeavoured to mitigate as much of the load shedding challenges it has to deal with on a daily basis. The year ahead, however, is expected to remain challenging especially for the South African business where load shedding and increasing consumer pressure are expected to worsen.

Despite the Group’s high level of conviction around a number of clearly defined and identified growth levers and organic investment opportunities, the Group, in light of the current load shedding and global economic uncertainties, is adopting a very prudent approach and treating FY2024 as a year of consolidation and focusing on improving operating leverage.

Operationally, considering the current macroeconomic conditions and the likelihood of continued high levels of load shedding, there will be a continued focus on controlling inventory purchases so as to defend gross profit margins and reduce the absorption of working capital, with FY2024 inventory purchases expected to be below those of FY2023 on a like-for– like-basis. Expense control is also a key lever and during the second half of FY2023, support and administration expenses of approximately R220 million were frozen. Similar cost savings initiatives are planned for the year ahead. We also revisited our planned capital allocation for the year ahead, and have curtailed our planned new store openings, with the result that our store capital expenditure is likely to approximate half of what we spent in FY2023. TFG’s future brand and store roll-out pipeline remains as robust as ever, however, current market conditions require a slower execution of this roll-out.

Trade since the year-end has been muted across all three of our trading territories. For the trading month of April 2023 (compared to April 2022), TFG Africa had retail turnover growth of 12,5% (3,2% excluding Tapestry*), TFG London had negative retail turnover growth of 14,3% (GBP) and TFG Australia had negative retail turnover growth of 3,6% (AUD. Both TFG London and TFG Australia are up against a very high base in the comparative period which was driven by a post COVID-19 heightened demand for occasionwear and back to work shopping as mentioned in the previous paragraphs.

Annual financial results
Shareholders were advised that the Group expects to release its annual financial results for the 12 months ended 31 March 2023 on SENS on Friday, 9 June 2023.

A live webcast of the annual financial results presentation will be broadcast at 10:00 am (SAS) on Friday, 9 June 2023. A registration link for the webcast will be available on the Company’s website at www.tfglimited.co.za. The slides for the annual financial results presentation will be made available on the Company’s website prior to the commencement of the webcast. A delayed version of the webcast will be available later the same day.

They Said It

"Great mag! Thanks for adding my comments. I just noticed a slight spelling error. My name is Robert Manock not Richard Mannock and our brand is called Manock Naturals not Manock Originals!" - I suppose if you’re going to get things wrong, you may as well do it properly. Apologies, Robert. I actually did know, but my mind was obviously elsewhere.

New subscribers last week

Estie, Okapuka Feelot and Tannery Manager, Meatco, Brakwater, Windhoek, Namibia
Tanya, Supervisor, LGB Distributors, Johannesburg, South Africa
Devan Odayan, Designer, Dick Whittington Shoes, Pietermaritzburg, South Africa

Directory entries updated last week

KRB Safety & Packaging cc, Midrand, Gauteng, SA.

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za

Birthdays this week

15/05/1941: Pieter van Niekerk, retired, formerly Midland Leather KZN (Gringo), Port Shepstone, KZN, SA.
15/05/1963: Michelle Wilson, Prime Sole, Harare, Zimbabwe.
15/05/1974: Brett Isaacs, BMI Agencies, Johannesburg, Gauteng, SA.
16/05/1942: Abie Kleinbooi ?.
16/05/1962: Rashid Minty, A.A. Minty, Klerksdorp, N.W. Province, SA.
16/05/1973: Nerisha Jairaj, SAFLEC, Durban, KZN, SA.
18/05/1944: Glen Puttergill, retired, formerly Glen's Shoes [closed], East London, E. Cape, SA.
18/05/1969: Andrew Lofthouse, emigrated, formerly Leather Systems, Port Elizabeth, E. Cape, SA.
18/05/1974: Rudolph de L Volschenk, Leo D’ Mar, George, W. Cape, SA.
19/05/1970: Chalkie Harrower, C&B Harrower Agencies, Johannesburg, Gauteng, SA.
20/05/1934: Diana Beckley, retired, formerly agent, Durban, KZN, SA.
20/05/1951: Sam Ferreira, Samfer Equipment Technologies, Cape Town, W. Cape, SA.
21/05/1949: Norman Norris, retired, formerly Urban Zone, Randburg, Gauteng, SA, now South Coast, KZN.
21/05/1949: Donald Blanshard, Foot Fashion, Johannesburg, Gauteng, SA.
21/05/1976: Sandeep Chunilal, Speri, Johannesburg, Gauteng, SA.
21/05/1987: Matthew Dunning, Trumpler Leather Chemicals, Worms, Germany, formerly NTE, Pietermaritzburg, KZN, SA.

In memoriam this week

15/05/2010: Louis Conradie (b. 26/06/1935), Conloo Joinery, Welkom, Free State, SA.
17/05/2002: Johan Wilken (b. 1/11/1925), Klein Karoo International, Oudtshoorn, W. Cape, SA.
17/05/2021: Pierre van Niekerk (b. 19/05/1965), Gringo Leather, Port Shepstone, KZN, SA.
19/05/2009: Robbie Trench (b. 28/03/1945), Panama Shoes, RPM Footwear (both closed), Durban, KZN, SA.
19/05/2022: Tony O'Hagan (b. 13/05/1941), retired, formerly MD, Adidas SA, Cape Town, W. Cape, SA.
21/05/2019: Theo Heffer (b. 06/12/1934),Association of SA Manufacturers of Luggage, Handbags & General Goods, Johannesburg, Gauteng, 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.

3. Malawian Kwacha (MWK)

Source: https://www.xe.com/currencyconverter/

4. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

5. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (12 May 2023) - The current average hide price increased by 8.8% to R3.67/kg from R3.37/kg a week ago. The current price is 8.2% higher than the average price a month ago and 11.9% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R3.40 Maximum price: R5.00. Please note: 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, and Zama Sangweni, agricultural economist, Absa group.

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:
Jones & Kent, Johannesburg, Gauteng, SA. Men’s outfitter.
Jonsson Workwear, Durban, KZN, SA. Workwear manufacturer.

Contact us

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

Next newsletter: May 22, 2023.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Our website www.svmag.co.za