NATIONAL UNION OF METALWORKERS OF SOUTH AFRICA
153 Bree Street (cnr. Becker), P.O. Box 260483
Newtown Excom
2023
Johannesburg, Tel: 011-689 1700
2001
Fax: 011-833 6330
e-mail:mziwakhe@numsa.org.za
Press statement for immediate release 17 March, 2006.
NUMSA press statement on BEE
The national executive committee of the National Union of Metalworkers of South Africa (NUMSA) is deeply concerned about the flawed process of broad based black economic empowerment(BBBEE) implementation in the metal, auto manufacturing and engineering industries.
Some of these industries, including motor and auto sectors are the most important in the manufacturing environment as they contribute more than a quarter of the manufacturing gross domestic product (GDP).
The metals and engineering industry employs more than 300 000 workers while the auto industry boasts 120 000 workforce.
NUMSA is disgusted at the way these industries have chosen to “dig in their heels” and resist meaningful transformation, NEC statement said yesterday.
“Industries of this magnitude should therefore be leading in the process towards meaningful economic transformation which at the moment finds expression in government’s policy of broad-based BEE,” delegates said.
A comprehensive study by the Corporate Strategy and Industrial Development (CSID) Research Unit based at the University of the Witwatersrand , commissioned by NUMSA painted a grim picture of the implementation of the BBBEE in the metals and engineering as well as auto industry.
Less than 1% of the businesses in these industries are black-owned, the study showed.
Companies chose “to hide behind the fact that they are family-owned enterprises or foreign-owned” as a justification of why they do not bring black equity on board, it was revealed.
The study also found that 75% of board members, responsible for the most critical decisions about the operation and management of companies are white males. Is it therefore surprising that very little transformation takes place, NEC delegates asked ?
Management levels in these industries boast 90% white males, while there has been a significant increase in the number of white females that have been exclusively affirmed in the senior management positions.
Turning to skills development and training, the study also showed that not enough was spent on training workers in critical or core skills. The training offered focused mostly on occupational health and safety.
Furthermore, there is no link between training initiatives and the translation of these into a change in the structure of employment equity. Being trained does not mean you will be considered for a post in a skilled or management position.
The NEC also expressed concern that procurement to black-owned enterprises, lagged behind in these industries. When preferential procurement does take place, it is for non-essential support services such as catering and gardening. There is virtually no opportunity for a black-owned enterprise to supply technical or core services or inputs to these companies.
Despite all of these shortcomings, it seems as if industry could not be bothered to engage meaningfully with all stakeholders over the issue of economic transformation in the metals and engineering and auto sectors.
Industry associations have gone ahead and developed one-sided BEE policies with practically no formal interaction with labour. What also worried NUMSA is that industry associations have chosen to consort together and lobby government in order to obtain the “best deals” for themselves.
The industries have made it clear that they were strongly opposed to entering into charter or sector -wide general agreements, which obliged them to engage in discussions with other stakeholders, including labour.
NUMSA is also dismayed that they insisted that the codes should determine how BBBEE will be carried out in their industries. This comes as no surprise since the codes are lenient towards qualifying small enterprises and multinational companies – the bulk of the membership of these employer associations.
As metalworkers we will not stand aside and let this flawed process unfold without our intervention. “We feel strongly that all stakeholders, including labour should be involved in the process of determining how industry will carry out the BBBEE process,” the NEC warned.
It further demanded immediate resumption of charter discussion processes in both metal and auto industry, adding that the talks should be inclusive of all stakeholders.
For more information contact:
Mziwakhe Hlangani, NUMSA national information officer
Mobile: 083 7293374.
E-mail address: mziwakheh@numsa.org.za