Annual Review 2019 by Wow Concepts

SEIFSA 2019 ANNUAL REVIEW

SEIFSA To promote sustainable metals and engineering industries to ensure that they are strategically positioned for innovation and growth in the interests of a prospering Southern Africa.

To be Southern Africa’s most respected advocate for the metals and engineering industries in order to create innovative businesses positioned for growth and working in partnership with all stakeholders in the interests of Southern Africa.

VISION

MISSION

To foster mutually-beneficial relationships between employers and labour in the industries and to help members develop their human capital to realise their full potential.

VALUES

Integrity Integrity is paramount to us. It informs everything that we do and how we do it.

Diversity We embrace, value and leverage Diversity.

Excellence We seek to do everything right the first time, with Excellence.

Stewardship We take Responsibility for our actions and treat SEIFSA’s assets with respect.

Passion We approach every task, however small it may appear to be, with Passion.

Innovation We always strive to Improve our performance and to come up with new products and services.

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CONTENTS PAGE Chairman’s Report .............................................................................................4 Chief Executive Officer’s Report .................................................................10 Chief Financial Officer’s Report ..................................................................16 Metal Industries Benefit Fund Administrator’s Report .....................20 Metal and Engineering Industries Bargaining Council’s Report ....24 Administration Services Report .................................................................26 About SEIFSA ....................................................................................................28 Marketing Report ............................................................................................30 Communication Report ................................................................................36

Industrial Relations & Legal Services........................................................40 Economics & Commercial ............................................................................46 Safety, Health, Environment & Quality ....................................................52 Human Capital & Skills Development ......................................................54 Small Business Hub ........................................................................................60 Advocacy and Lobbying ..............................................................................62 Social Responsibility Report ......................................................................70 Secretariat Report ...........................................................................................74

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BUSA ....................................................................................................................76 MERSETA .............................................................................................................77 MEIBC ...................................................................................................................77 MIBFA ...................................................................................................................78 NEDLAC ...............................................................................................................78 NDC ......................................................................................................................78 HRDC ....................................................................................................................78 NNR ......................................................................................................................78 RMA ......................................................................................................................78 BBCMWG ............................................................................................................78

BOARD OF DIRECTORS ..............................................................................80/1 EXECUTIVE TEAM ............................................................................................80 MANAGEMENT TEAM ....................................................................................80 STAFF MEMEBERS ...........................................................................................81

SEIFSA ANNUAL REVIEW 2019

SEIFSA REPORTS ABOUT THE REPORTS

SEIFSA DIVISIONS PRODUCTS AND SERVICES

SEIFSA REPRESENTATION ABOUT SEIFSA

TEAM SEIFSA ORGANOGRAM

EDITOR: OLLIE MADLALA COVER AND CREATIVE DESIGN: ZANDILE NGUBENI

CHAIRMAN’S REPORT

SEIFSA President Elias Monage

he state of our metals and engineering sector is a UHÀHFWLRQ RI WKH SHUIRUPDQFH of economic activity in South Africa. Disconcertingly, there was a GHFUHDVH LQ SURGXFWLRQ RQ D \HDU RQ \HDU EDVLV GXULQJ WKH \HDU XQGHU UHYLHZ GXH WR WKH SUHYDOHQFH RI D SOHWKRUD RI FKDOOHQJHV LQ WKH sector. This included low aggregate demand. 7KH UROH SOD\HG E\ RXU PHWDOV and engineering sector towards economic growth is still fairly QHJOLJLEOH ZKHQ FRPSDUHG WR WKH SUH HFRQRPLF DQG SURGXFWLRQ crises years of 2009 and 2014 UHVSHFWLYHO\ 7KH VHFWRU¶V ODFNOXVWUH HFRQRPLF SURGXFWLYLW\ UHÀHFWV WKH YHU\ GLVDSSRLQWLQJ JURZWK LQ domestic demand since 2007, during which growth in the Gross 'RPHVWLF 3URGXFW KDV EHHQ KRYHULQJ DURXQG SHU DQQXP

SEIFSA ANNUAL REVIEW 2019

$OWKRXJK WKHUH ZDV QR GRXEW EHWWHU OHDGHUVKLS RIIHUHG E\ 3UHVLGHQW &\ULO 5DPDSKRVD and the Government as he ¿QLVKHG WKH ODVW \HDU RI KLV SUHGHFHVVRU¶V VHFRQG WHUP as Head of State, our country FRQWLQXHV WR EH GRJJHG E\ various challenges. There FRQWLQXHG WR EH D PXOWLSOLFLW\ of contradictory – and often LQÀXHQWLDO ± YRLFHV KHDUG RQ the economy, sometimes IURP ZLWKLQ WKH UDQNV RI WKH JRYHUQLQJ SDUW\ DW D WLPH ZKHQ FRQVHQVXV LV GHVSHUDWHO\ needed to engender investor FRQ¿GHQFH :KLOH ZHOFRPH efforts were made to reach out WR EXVLQHVV DQG ODERXU PRUH VWLOO UHPDLQHG WR EH GRQH WR IRUJH D VWURQJHU SDUWQHUVKLS among the Government, EXVLQHVV DQG ODERXU

The top industries to which the sector sells its output (that is the share of domestic demand for M&E sector products) are:

Construction sector

12.1% Auto cluster

Mining sector

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'HVSLWH WKH RQJRLQJ FRQWHVWDWLRQ RI LGHDV RQ D QXPEHU RI LVVXHV when it comes to management of our economy, one is cautiously RSWLPLVWLF WKDW WKH FHQWUH ZLOO KROG DQG WKDW 3UHVLGHQW 5DPDSKRVD ZLOO VXFFHHG LQ KLV FRPPHQGDEOH HIIRUWV WR ULG WKH FRXQWU\ RI FRUUXSWLRQ DQG to attract foreign direct investment to South Africa.

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facing the industry to ensure that LQWHUPHGLDWH JRRGV DUH SULFHG FRPSHWLWLYHO\ ZLWK D SRVLWLYH HIIHFW RQ PDUJLQV RI EXVLQHVVHV :LWKRXW FR RSHUDWLRQ DOO EXVLQHVVHV ± including small, medium and PLFUR HQWHUSULVHV ± FDQQRW ÀRXULVK DQG H[SDQG ,QWUD LQGXVWU\ VTXDEEOHV DUH FRXQWHUSURGXFWLYH WR WKH REMHFWLYHV RI WKH 1DWLRQDO 'HYHORSPHQW 3ODQ 1'3 LQ WKH ORQJ UXQ HVSHFLDOO\ WKDW RI HQGXULQJ JURZWK DQG HPSOR\PHQW WKHUHE\ FRQVWULFWLQJ WKH HIIHFWLYH LPSOHPHQWDWLRQ RI LWV ORQJ WHUP VRFLR HFRQRPLF URDG PDS ZLWK dire consequences on economic GHYHORSPHQW 'HVSLWH D UHODWLYH UHGXFWLRQ LQ LPSRUW YROXPHV WKDQNV WR WKH SURWHFWLRQ PHDVXUHV IRU WKH XSVWUHDP VWHHO LQGXVWU\ DQQRXQFHG E\ WKH *RYHUQPHQW LPSRUW SHQHWUDWLRQ ± QRWZLWKVWDQGLQJ GHVLJQDWHG SURGXFWV ± UHPDLQV D cause for concern. There are also OHJLWLPDWH FRQFHUQV IURP WKH PLG and downstream steel sectors that the safeguard duty mainly IDYRXUV WKH XSVWUHDP VWHHO VHFWRU This calls for a need to revisit TXLG SUR TXR FRPPLWPHQWV PDGH E\ WKH SULQFLSDO EHQH¿FLDULHV of the safeguard, including the contentious downstream GHYHORSPHQWDO SULFLQJ ZKLFK LV REVROHWH LQ D ZRUOG RI YRODWLOH VWHHO SULFHV H[FKDQJH UDWH DQG WUDGH ZDU $OWKRXJK WKH HVWDEOLVKPHQW WKURXJK LQWHUHVW UDWH VXEVLG\ RI D 5 ELOOLRQ GRZQVWUHDP VWHHO LQGXVWU\ FRPSHWLWLYHQHVV IXQG over three years has relieved VRPH SUHVVXUH IURP D QXPEHU of structural factors, there is still need to ensure that the fund is DFFHVVLEOH WR PRUH FRPSDQLHV /RQJHU WHUP VXUYLYDO DQG UHFRY ery, however, needs honest and sincere discussions around SROLF\ PHDVXUHV DQG FRPSDQ\ EHKDYLRXU 7KH QHHG WR FRQWDLQ LQSXW FRVWV DQG IXUWKHU OHVVHQ WKH LPSDFW RI ERWK WKH ¿QDQFLDO

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6 and economic crises and the 2014 SURGXFWLRQV FULVLV VWLOO H[LVWV $OVR the negative effects of the Chinese economy, which is simultaneously slowing down and overwhelming ZRUOG PDUNHWV ZLWK FKHDS H[SRUWV QHHGV WR EH FRQWDLQHG 7KHUH DUH SURVSHFWV IRU LQFUHDVHG WUDGH DQG LQWHUGHSHQGHQFH ZLWK WKH UHVW RI $IULFD VLQFH ORFDO FRPSDQLHV FDQ VWLOO PDNH XVH RI WKH 5 ELOOLRQ H[SRUW WUDGH IDFLOLW\ ODXQFKHG E\ WKH ([SRUW &UHGLW ,QVXUDQFH &RUSRUDWLRQ RI 6RXWK $IULFD (&,& DQG WKH $IULFDQ ([SRUW ,PSRUW %DQN $IUH[LPEDQN 7KLV DPRXQW SOXV DGGLWLRQDO VXSSRUW WR WKH WXQH RI ELOOLRQ IURP $IUH[LPEDQN WR KHOS DOOHYLDWH WKH WUDQVDFWLRQDO DQG DGDSWDWLRQ FRVWV RI FRXQWULHV which are signatories to the African Continental Free Trade Agreement, VKRXOG ERRVW 6$¶V LQWUD $IULFDQ H[SRUWV WR WKH UHVW RI $IULFD ,PSRUWDQWO\ D FOXVWHU DSSURDFK WR WKH G\QDPLFV RI HDFK VXE LQGXVWU\ is still needed. As highlighted in the State of the Metals and Engineering 6HFWRU 5HSRUW IRU HDFK VXE LQGXVWU\ ZLWKLQ WKH VHFWRU KDV LWV RZQ XQLTXH H[SRVXUH WR QDWLRQDO DQG LQWHUQDWLRQDO PDUNHWV LWV RZQ FDSLWDO RU ODERXU LQWHQVLWLHV DQG LWV RZQ SURGXFWLYH FDSDFLW\ FRQVWUDLQWV DQG SURGXFWLRQ FRVW FKDOOHQJHV Clearly, new investment is needed E\ DOO WKH VXE FRPSRQHQWV LQ RUGHU WR LPSURYH SURGXFWLYH HI¿FLHQFLHV WR WKRVH RI ZRUOG EHQFKPDUNV DQG to grow.

HVSHFLDOO\ JLYHQ WKDW JRYHUQPHQW KDV WKH ODUJHVW SURFXUHPHQW VSHQG RI URXJKO\ 5 ELOOLRQ 6R far, the steel industry seems to EH WKH HDUOLHVW EHQH¿FLDU\ EXW WKH H[SHFWDWLRQ LV IRU WKH EHQH¿W WR WULFNOH GRZQ WR RWKHU LQGXVWULHV LQ the M&E cluster. 2SSRUWXQLWLHV OLNH 6(,)6$¶V DQQXDO Southern African Metals and (QJLQHHULQJ ,QGDED RIIHU D JUHDW SODWIRUP IRU LQGXVWU\ SOD\HUV WR SXW WKHLU KHDGV WRJHWKHU GHOLEHUDWH RQ matters of common interest and VHHN WR LQÀXHQFH *RYHUQPHQW SROLF\ ,W LV FUXFLDOO\ LPSRUWDQW WKDW WKH ,QGDED HQMR\V WKH IXOO DQG HQWKXVLDVWLF VXSSRUW QRW RQO\ RI FRPSDQLHV LQ $VVRFLDWLRQV DI¿OLDWHG WR 6(,)6$ EXW DOVR WKDW RI DOO LQGXVWU\ SOD\HUV LQFOXGLQJ WKHLU VXSSOLHUV DQG FXVWRPHUV

MEIBC NEGOTIATIONS ON WAGES AND CONDITIONS OF EMPLOYMENT 5HJUHWWDEO\ HIIRUWV WR H[WHQG WKH 0(,%& 0DLQ $JUHHPHQW WR QRQ SDUWLHV ZHUH QRW FRQFOXGHG during the year under review. That meant that those that were not SDUW\ WR WKH $JUHHPHQW FRQWLQXHG WR HQMR\ DQ XQIDLU DGYDQWDJH ZKHQ LW FDPH WR LQSXW FRVWV WKDQNV WR PXFK ¿OLEXVWHULQJ RQ WKH 0(,%& Management Committee when it came to extending the Agreement. However, that notwithstanding, ZH UHPDLQ KRSHIXO WKDW WKH QHZ 0LQLVWHU RI (PSOR\PHQW DQG /DERXU ZLOO GR DOO LQ KLV SRZHU LQ IXWXUH WR SURWHFW FROOHFWLYH EDUJDLQLQJ DQG to ensure that agreements duly UHDFKHG LQ VXFK EDUJDLQLQJ DUH extended throughout the industry.

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Stimulation and redirection of domestic general government SURFXUHPHQW GHPDQG WRZDUGV domestic metals and engineering SURGXFHUV LV D SROLF\ PHDVXUH over which South Africa has FRQWURO 7KH UHFHQW LQLWLDWLYH E\ WKH 'HSDUWPHQW RI 7UDGH DQG ,QGXVWU\ aimed at designation, localisation DQG VXSSOLHU GHYHORSPHQW LV ODXGHG DV D VLJQL¿FDQW WRRO LQ WKH LQGXVWULDO SROLF\ WRRONLW WR VXSSRUW WKH EURDGHU PDQXIDFWXULQJ VHFWRU Delegates visiting exhibitors at 4th Annual M & E Indaba

SEIFSA ANNUAL REVIEW 2019

$V WKH QHJRWLDWLRQV DSSURDFK LW LV LPSRUWDQW WR EHDU LQ PLQG the state that the South African HFRQRP\ FXUUHQWO\ ¿QGV LWVHOI in – a mostly negative economic DQG EXVLQHVV HQYLURQPHQW FKDUDFWHUL]HG E\ D VWDJQDQW HFRQRP\ DQG MRE ORVVHV EHLQJ H[SHULHQFHG LQ WKH PHWDOV DQG engineering and other economic sectors. 7KHUH LV UHDVRQ WR KRSH WKDW WKH DPHQGPHQWV WR WKH /DERXU Relations Act made last year – ZKLFK EURXJKW EDFN WKH VHFUHW EDOORW LQWURGXFHG DGYLVRU\ DUELWUDWLRQ DQG D FRGH RI JRRG SUDFWLFH RQ FROOHFWLYH EDUJDLQLQJ DQG GHIDXOW SLFNHWLQJ UXOHV ± ZLOO PLWLJDWH WKH FKDQFHV RI WKH NLQG RI SURORQJHG DQG YLROHQW VWULNH DFWLRQ seen in 2014.

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to solvency and functionality is a JRDO WKDW LV VKDUHG E\ DOPRVW DOO VWDNHKROGHUV UHSUHVHQWHG RQ WKH MEIBC.

BUSINESS SUSTAINABILITY 2Q WKH EXVLQHVV IURQW FKDOOHQJHV RI GLIIHUHQW NLQGV UHPDLQ $W WKH WRS RI RXU OLVW LV RXU FRXQWU\¶V SRRU HFRQRPLF SHUIRUPDQFH IROORZHG E\ FRQWLQXLQJ VLJQL¿FDQW LPSRUWV RI FRPSHWLWLYH SURGXFWV DQG VNLOOV DQG RXU PDQXIDFWXULQJ VHFWRU¶V DSSDUHQW ODFN RI LQWHUQDWLRQDO FRPSHWLWLYHQHVV These challenges will continue to VWDUH XV LQ WKH IDFH DQG PD\EH even worsen, until such time WKDW 6RXWK $IULFD ,QFRUSRUDWHG ± *RYHUQPHQW EXVLQHVV DQG ODERXU – gets together to address them FRQVWUXFWLYHO\ SXWWLQJ WKH FRXQWU\¶V LQWHUHVWV DERYH DOO HOVH DQG WKHQ LPSOHPHQWLQJ WKH VROXWLRQV DJUHHG to. To this end, the metals and engineering cluster of industries QHHGV PRUH VXSSRUW IURP ERWK WKH *RYHUQPHQW DQG &DSWDLQV of industry in order to trigger a turnaround in 2019. Increased H[SRUW YROXPHV DQG H[SRUW FRPSHWLWLYHQHVV DUH SLYRWDO LI FRPSDQLHV LQ WKH FOXVWHU LQWHQG WR gain from the African Continental Free Trade Area and to maximise EHQH¿WV IURP SUHIHUHQWLDO UDWHV RQ 90% of goods originating from the continent. 6(,)6$¶V VWUDWHJLF UROH LQ LQÀXHQFLQJ SROLF\ FDQQRW EH XQGHUHVWLPDWHG 7KH )HGHUDWLRQ¶V involvement with Business, *RYHUQPHQW ,QVWLWXWLRQV OLNH WKH International Trade Administration Commission and Business Unity 6RXWK $IULFD DQG ODERXU LV JHDUHG WRZDUGV LPSURYLQJ WKH EXVLQHVV DQG UHJXODWRU\ IUDPHZRUN IRU WKH sector. Internally, we have to ensure that 6(,)6$ FRQWLQXHV WR EH HTXDO

to the challenges that confront LW LQFOXGLQJ RQ RXU DSSURDFK WR FROOHFWLYH EDUJDLQLQJ DQG WKH PDQGDWLQJ SURFHVV 7KH RQJRLQJ challenge facing the Federation is to demonstrate that it has the interests RI DOO SOD\HUV ELJ DQG VPDOO LQ WKH metals and engineering sector DQG WKDW DV PXFK DV SRVVLEOH LW UHSUHVHQWV RU VSHDNV IRU DOO RI WKHP 7R WKDW HQG WKH )HGHUDWLRQ¶V 6PDOO %XVLQHVV +XE 6%+ LV RI FULWLFDO LPSRUWDQFH , HQFRXUDJH PDQ\ FRPSDQLHV ± ODUJH PHGLXP VL]HG and small – within and outside WKH EURDG 6(,)6$ PHPEHUVKLS WR PDNH XVH RI WKH LPSUHVVLYH VXLWH RI VHUYLFHV RIIHUHG E\ WKH 6%+

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DI¿UPDWLYH DFWLRQ PHDVXUHV WR redress the disadvantages in HPSOR\PHQW H[SHULHQFHG E\ GHVLJQDWHG JURXSV +HUH DUH VRPH NH\ ¿QGLQJV IURP WKH UHSRUW :KLWH SHRSOH RFFXS\ RI WRS PDQDJHPHQW MREV LQ 6$

2YHU WKH SDVW \HDUV WKHUH KDV EHHQ D GHFOLQH LQ ZKLWH LQFXPEHQWV LQ VHQLRU management. The African SRSXODWLRQ RFFXSLHV of senior management, while

WKH FRORXUHG SRSXODWLRQ VLWV DW DQG WKH ,QGLDQ FRPPXQLW\ at 9.4%. %ODFN SHRSOH RFFXS\ RI SRVLWLRQV DW XQVNLOOHG OHYHO &RORXUHG SHRSOH RFFXS\

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of senior management, while coloured population sits at

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and Indians sits at

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while coloured people RFFXS\

11.1% Foreign nationals are at

and Indians sits at

SEIFSA ANNUAL REVIEW 2019

FEMALES

43.5% of females

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STATE OF THE NATION 6RXWK $IULFD¶V RXWORRN ZDV VLJQL¿FDQWO\ VKLIWHG E\ WKH DSSRLQWPHQW RI D QHZ 3UHVLGHQW WR OHDG WKH FRXQWU\ LQ 0DUNHWV UDOOLHG VWURQJO\ WKH GD\ DIWHU &\ULO 5DPDSKRVD DVVXPHG WKH SUHVLGHQF\ :KLOH WKH LQLWLDO HXSKRULD RFFDVLRQHG E\ WKLV WUDQVLWLRQ KDV VLQFH GLVVLSDWHG WKHUH LV HYHU\ UHDVRQ WR EHOLHYH WKDW WKH FRXQWU\ ZLOO EH PXFK EHWWHU UXQ LQ WKH QHZ GLVSHQVDWLRQ :H ORRN IRUZDUG WR ZRUNLQJ ZLWK WKH QHZ &DELQHW LQ WKH LPSOHPHQWDWLRQ RI WKH PDQ\ XQGHUWDNLQJV PDGH E\ 3UHVLGHQW 5DPDSKRVD The year under review has EHHQ FKDUDFWHULVHG E\ D VHULHV RI KHDULQJV LQWR 6WDWH FDSWXUH ,W UHPDLQV RXU KRSH WKDW WKH KHDULQJV ZLOO EH IROORZHG E\ WKH SURVHFXWLRQ RI WKRVH DOOHJHG WR KDYH EHHQ LQYROYHG LQ YDULRXV DFWV RI FRUUXSWLRQ ERWK LQ WKH SXEOLF DQG WKH SULYDWH VHFWRUV ,Q SDUWLFXODU WKH ZRUN WKDW FRQWLQXHV WR EH GRQH E\ WKH 6WDWH &DSWXUH &RPPLVVLRQ OHG E\ 'HSXW\ &KLHI -XVWLFH 5D\PRQG =RQGR ZLOO EH RI YLWDO LPSRUWDQFH LQ ensuring that South Africans get to DSSUHFLDWH IXOO\ WKH H[WHQW WR ZKLFK WKHLU FRXQWU\ ZDV WDNHQ DGYDQWDJH of and that the country cleanses itself. $OO RI XV ± DV FLWL]HQV EXVLQHVV DQG ODERXU OHDGHUV HOHFWHG SXEOLF RI¿FLDOV HWF ± KDYH D FROOHFWLYH GXW\ WR HUDGLFDWH WKH WHUULEOH

7KHUH LV QR GRXEW WKDW IRFXVHG HIIRUW DQG SODQQLQJ LV UHTXLUHG WR QDYLJDWH 6(,)6$ DQG LWV PHPEHU Associations through increasingly FKDOOHQJLQJ FLUFXPVWDQFHV VRFLR HFRQRPLF GLI¿FXOWLHV SROLWLFDO DQG UHJXODWRU\ XQFHUWDLQW\ DQG WKH ZHDN EXVLQHVV ODQGVFDSH 7R DFKLHYH LWV REMHFWLYHV 6(,)6$ UHTXLUHV ZHOO LQIRUPHG VWURQJ UHVSHFWHG OHDGHUVKLS D XQLWHG DQG HIIHFWLYH %RDUG DQG &RXQFLO DQG D SUHVHQFH DQG YRLFH ZLWK DOO VWDNHKROGHUV , ZRXOG OLNH WR H[SUHVV P\ WKDQNV WR WKH 6(,)6$ PHPEHUVKLS ZKLFK VXSSRUWHG P\ DSSRLQWPHQW DV President. 7KLV KDV EHHQ DQ HYHQWIXO \HDU DQG WKHUH KDYH EHHQ PDQ\ RXWVWDQGLQJ FRQWULEXWLRQV E\ LQGLYLGXDOV WR the successes that SEIFSA has achieved, negotiated and LQÀXHQFHG 0\ VLQFHUH WKDQNV JR WR DOO 6(,)6$ &RXQFLO 0HPEHUV IRU WKHLU VXSSRUW DQG DFWLYH SDUWLFLSDWLRQ DW RXU PHHWLQJV 0\ WKDQNV also go to fellow Directors on the SEIFSA Board and to the SEIFSA Executives. I am grateful to the entire SEIFSA team for its collective and individual energy, HQWKXVLDVP DQG SDVVLRQ IRU WKH )HGHUDWLRQ <RXU FRQWULEXWLRQ SURIHVVLRQDOLVP DQG GHGLFDWLRQ DUH JUHDWO\ DSSUHFLDWHG Finally, I wish the men and women ZKR ZLOO EH HOHFWHG RQWR WKH %RDUG of Directors at the Annual General 0HHWLQJ LQ 2FWREHU WKH YHU\ EHVW RI OXFN LQ WKH \HDU DKHDG

Elias Monage

President and Board Chairman

CHIEF EXECUTIVE OFFICER’S REPORT A GOOD YEAR, FOR THE THIRD YEAR IN A ROW DUG RQ WKH EDFN RI WZR VXFFHVVIXO \HDUV 6(,)6$ KDV DJDLQ KDG DQRWKHU JRRG \HDU LQ )< )RU WKH WKLUG \HDU LQ D URZ WKH )HGHUDWLRQ KDV JHQHUDWHG D KHDOWK\ VXUSOXV QRWZLWKVWDQGLQJ WKH SRRU VWDWH RI RXU HFRQRP\ 7KLV JRRG SHUIRUPDQFH ZKLFK KDV QRZ EHFRPH D VROLG SDWWHUQ LV EDVHG RQ WRXJK GHFLVLRQV WKDW KDYH KDG WR EH WDNHQ RYHU WKH SDVW ¿YH \HDUV 7KHVH KDYH VHHQ WKH )HGHUDWLRQ SD\LQJ SDUWLFXODU DWWHQWLRQ WR FRVW FRQWDLQPHQW ZKLOH VLPXOWDQHRXVO\ ZRUNLQJ KDUG WR PD[LPLVH UHYHQXH JHQHUDWLRQ RSSRUWXQLWLHV :KLOH PHPEHUVKLS IHHV FRQWLQXH WR EH LPSRUWDQW RYHU WKH SDVW IHZ \HDUV ZH KDYH PDQDJHG WR JHQHUDWH PRUH UHYHQXH IURP WKH )HGHUDWLRQ¶V YDULRXV SURGXFWV DQG VHUYLFHV LQ RUGHU WR HQVXUH JUHDWHU VXVWDLQDELOLW\

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SEIFSA ANNUAL REVIEW 2019

5HJUHWWDEO\ WKH 6RXWK $IULFDQ HFRQRP\ FRQWLQXHG WR SHUIRUP SRRUO\ GXULQJ WKH \HDU XQGHU UHYLHZ ,QHYLWDEO\ WKH PHWDOV DQG HQJLQHHULQJ VHFWRU ZDV VLPLODUO\ DIIHFWHG DV ZDV JHQHUDO PDQXIDFWXULQJ 7KLV LV GLVDSSRLQWLQJ HVSHFLDOO\ ZKHQ WKH HXSKRULD ZKLFK JUHHWHG 3UHVLGHQW &\ULO 5DPDSKRVD¶V ¿UVW IHZ PRQWKV LQ RI¿FH LQ LV WDNHQ LQWR FRQVLGHUDWLRQ $W WKH WLPH WKHUH ZDV PXFK KRSH DQG RSWLPLVP WKDW WKH HUD RI ODFN OXVWUH HFRQRPLF JURZWK ZRXOG VRRQ EH EHKLQG XV 6DGO\ WKDW ZDV QRW WKH FDVH GXULQJ WKH course of the year.

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Then Minister in the Presidency Dr Nkosazana Dlamini Zuma was among speakers at the 2018 M&E Indaba

Excellence attracted the highest number of entrants to date, and the hall for the Awards function held at Sunnyside Park +RWHO LQ 3DUNWRZQ -RKDQQHVEXUJ LQ 0D\ ZDV RYHUÀRZLQJ <RXWK (PSOR\PHQW ,QLWLDWLYH &KLHI ([HFXWLYH 2I¿FHU 7DVKPLD ,VPDLO 6DYLOOH ZDV D SRSXODU JXHVW VSHDNHU

Among the key policy makers in attendance was then-Minister in the Presidency, Dr Nkosazana Dlamini-Zuma, with yet another impressive list of speakers from business, Government and labour.

7KH IRXUWK 6RXWKHUQ $IULFDQ 0HWDOV DQG (QJLQHHULQJ ,QGDED which was again held at the IDC Conference Centre in Sandton, ZDV DQRWKHU JUHDW VXFFHVV $PRQJ WKH NH\ SROLF\ PDNHUV LQ attendance was then-Minister in the Presidency, Dr Nkosazana Dlamini-Zuma, with yet another impressive list of speakers from EXVLQHVV *RYHUQPHQW DQG ODERXU At the time of compiling this report, the Fifth Southern African Metals and Engineering Indaba, which coincides with the 25th \HDU RI 6RXWK $IULFD¶V GHPRFUDF\ ZDV DERXW WR WDNH SODFH

STABILITY AT INDUSTRY INSTITUTIONS 7KHUH FRQWLQXHG WR EH VWDELOLW\ DW WKH WZR LPSRUWDQW LQGXVWU\ institutions, the Metal and Engineering Industries Bargaining Council (MEIBC) and the Metal Industries Bargaining Funds $GPLQLVWUDWRUV 0,%)$ :KLOH $GPLQLVWUDWRU $I]XO 6RREHGDDU FRQWLQXHG LQ RI¿FH DW WKH 0(,%& GXULQJ WKH \HDU XQGHU UHYLHZ WKH &RXQFLO DOVR ZHOFRPHG QHZ &(2 'DYLG 6LFHOR 1GXQD 6HSDUDWH UHSRUWV E\ 6(,)6$ 2SHUDWLRQV 'LUHFWRU /XFLR 7UHQWLQL DQG &KLHI )LQDQFLDO 2I¿FHU 5DMHQGUD 5DMFRRPDU RQ ERWK LQVWLWXWLRQV DUH LQFOXGHG HOVHZKHUH LQ WKLV $QQXDO 5HYLHZ

SEIFSA ANNUAL REVIEW 2019

At the time writing, we have no reason to believe that the MEIBC will not be ready to host the 2020 negotiations on wages and conditions of employment.

NEW FACES ON THE EXECUTIVE COMMITTEE During the year under review, two former members of the Executive Committee moved on. Former Industrial Relations and Legal Services Executive Bridgette Mokoetle, who was also Company Secretary, left the Federation’s employ at the end of May to open her legal practice. Her exit was well managed: she had indicated, in November 2018, her intention to go into private practice this year, and was persuaded to delay her decision until March 2019. During her last three months (April-May 2019) with the Federation, she was on contract and spent two days a week attending to SEIFSA’s business. Her successor, Sibusiso

Mthenjana, started on 1 May 2019. He and Ms Mokoetle worked together during that month to effect a smooth transition. Former Human Capital and Skills Development (HC&SD) Executive Melanie Mulholland and her husband relocated to the Western Cape in April 2019. Her last month with SEIFSA was March 2019. She has since joined the Cape Engineers and Founders Association, which is DI¿OLDWHG WR 6(,)6$ DV ([HFXWLYH Director. We were in the fortunate position of being able to appoint Michelle Norris, who was the HC&SD Manager at the time, our new HC&SD Executive. Ms Norris has since settled comfortably into the position. To continue to contain costs, we also took a decision to out-source the services offered by our Safety, Health, Environment and Quality (SHEQ) Division. That led to thenSHEQ Executive Nonhlalo Mphofu being impacted by the restructuring. As a result, a Section 189 process,

Sibusiso Mthenja na Industrial Relations & Legal Executive

in terms of the Labour Relations Act, was initiated and she exited the organisation at the end of the ¿QDQFLDO \HDU 7KURXJK LWV YLUWXDO SHEQ Division, SEIFSA now offers considerably more SHEQ services throughout the country, thanks to its partnership with two established service providers. I thank Ms Mokoetle, Ms Mulholland and Ms Mphofu for their service to the Federation and wish them well in their respective current endeavours. I also congratulate Mr Mthenjana on his appointment and Ms Norris on her promotion, and wish them well in their new positions. 7KH ¿QDQFLDO \HDU marks the last year of the threeyear Settlement Agreement signed in August 2017. Thanks to that agreement, our sector has enjoyed relative calm and stability in the interim, without any industrial action.

Mic helle Norris

Human Capital & Skills Development Executive

THE YEAR AHEAD

1H[W \HDU LV YHU\ LPSRUWDQW IRU RXU VHFWRU PDUNLQJ DV LW GRHV WKH QHHG for a return to negotiations on wages DQG FRQGLWLRQV RI HPSOR\PHQW It will require, yet again, that all $VVRFLDWLRQV DI¿OLDWHG WR 6(,)6$ DQG OLNH PLQGHG HPSOR\HU SDUWLHV ZRUN FORVHO\ WRJHWKHU WR GHYHORS UHDOLVWLF PDQGDWHV DKHDG of the negotiations, with our ODERXU SDUWQHUV KDYLQJ D VLPLODU UHVSRQVLELOLW\ $W D WLPH ZKHQ 6RXWK $IULFD LV IDFLQJ D SRVVLEOH VRYHUHLJQ UDWLQJV GRZQJUDGHV E\ 0RRG\¶V WKH RQO\ FUHGLEOH UDWLQJV DJHQF\ WR KDYH NHSW XV DERYH MXQN status so far, not only our struggling VHFWRU EXW WKH HFRQRP\ DV D ZKROH cannot afford industrial action next year. $V DOZD\V 6(,)6$ ZLOO ZRUN FORVHO\ ZLWK PHPEHU $VVRFLDWLRQV to execute the mandate given WR LWV QHJRWLDWRUV E\ WKH 6(,)6$ &RXQFLO RXU DVVHPEO\ RI PHPEHU Associations from which our PDQGDWH GHULYHV :H ZLOO DJDLQ VWLFN FORVHO\ WR WKH JLYHQ PDQGDWH :H ORRN IRUZDUG WR WKH FRRSHUDWLRQ RI PHPEHUV DQG ODERXU SDUWQHUV DOLNH LQ WKH FUXFLDO SURFHVV DKHDG Also in the year ahead, SEIFSA

ZLOO EH DFWLYH LQ FKDPSLRQLQJ WKH LQWHUHVWV RI WKH FRXQWU\¶V manufacturers through the BRICS Business Council. This follows ¿UVW P\ DSSRLQWPHQW LQWR WKH 0DQXIDFWXULQJ :RUNLQJ *URXS RI WKH 6RXWK $IULFDQ &KDSWHU RI WKH BRICS Business Council, followed E\ P\ HOHYDWLRQ WR WKH SRVLWRQ RI Chairman of the Manufacturing :RUNLQJ *URXS 7KDW ZLOO FHPHQW WLHV EHWZHHQ WKH )HGHUDWLRQ and all interested manufacturing JURXSV LQ WKH FRXQWU\ LQFOXGLQJ FRPSDQLHV WKDW DUH PHPEHUV RI RXU DI¿OLDWHG $VVRFLDWLRQV

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MY THANKS

Kaizer M. Nyatsumba

The team with which I have the SOHDVXUH RI ZRUNLQJ DW 6(,)6$ LV richly deserving of my gratitude DQG DSSUHFLDWLRQ &ROOHFWLYHO\ ZH KDYH FRQWLQXHG WR ZRUN KDUG WR HQVXUH WKH )HGHUDWLRQ¶V VXFFHVV , GLS P\ KDW WR DOO VWDII PHPEHUV from Executive Committee 0HPEHUV WR WKH PRVW MXQLRU HPSOR\HH As always, colleagues and I are immensely grateful to all SEIFSA PHPEHU $VVRFLDWLRQV IRU WKHLU FRQWLQXHG VXSSRUW IRU DQG OR\DOW\ WR WKH )HGHUDWLRQ :H DSSUHFLDWH

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)LQDOO\ P\ WKDQNV DQG DSSUHFLDWLRQ go to SEIFSA President and Board Chairman Elias Monage for his VXSSRUW DQG JXLGDQFH DQG WR WKH %RDUG RI 'LUHFWRUV IRU LWV VXSSRUW DQG VWHZDUGVKLS RI WKH )HGHUDWLRQ Their collective wisdom and FRPPLWPHQW WR *RRG &RUSRUDWH Governance remain greatly DSSUHFLDWHG

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SEIFSA CEO Kaizer Nyatsumba addressing M&E Indaba Indaba delegates

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SEIFSA ANNUAL REVIEW 2019

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The main aims of the Pension Funds Act are to:

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In terms of the Pension Funds Act, PHPEHUV KDYH WKH ULJKW WR HOHFW RI WKH %RDUG 0HPEHUV $ 7UXVWHH DFWV LQ D ¿GXFLDU\ FDSDFLW\ DQG VKRXOG EH IDPLOLDU ZLWK DQG understand the laws governing retirement funds. 7KH %RDUG RI 7UXVWHHV KDV DSSRLQW ed as its agent, the Metal Industries %HQH¿W )XQG $GPLQLVWUDWRUV 0,% )$ WR DGPLQLVWHU WKH IXQGV RI (P SOR\HUV DQG (PSOR\HHV LQ WKH PHW als and engineering industries. The %RDUG LV QHYHUWKHOHVV DFFRXQWDEOH DQG XOWLPDWHO\ UHVSRQVLEOH WR WKH Registrar and the Financial Servic HV %RDUG 0,%)$ SURYLGHV DGPLQ istration services for the following )XQGV • • •

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A BRIEF HISTORY OF THE FUNDS THAT ARE ADMINISTERED BY MIBFA ENGINEERING INDUSTRIES PENSION FUND The Engineering Industries Pension )XQG EHLQJ WKH FRQWLQXDWLRQ RI WKH 0HWDO ,QGXVWULHV *URXS /LIH DQG Provident Fund with which the 0HWDO ,QGXVWULHV *URXS 3HQVLRQ Fund was merged with effect IURP -DQXDU\ ZDV ¿UVW HVWDEOLVKHG LQ

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SEIFSA ANNUAL REVIEW 2019

6XUSOXV DSSRUWLRQPHQWV KDYH H[FHHGHG 5 EQ 5 EQ SULRU \HDU WR GDWH ZLWK EHLQJ DGGHG PRQWKO\ IRU WKH HPSOR\HHV¶ EHQH¿W IURP WKH &RQWULEXWLRQ Increase Programme Reserve $FFRXQW &,35$ ZLWK QR FRVW WR WKH HPSOR\HU RU HPSOR\HH ,Q DGGLWLRQ WR WKH PHPEHUV¶ LQYHVWPHQW FRQWULEXWLRQV E\ PHPEHUV DQG HPSOR\HUV SOXV LQYHVWPHQW UHWXUQV DQ H[LW ERQXV RI ZKLFK YDULHV ZLWK WKH DFWXDULDO YDOXDWLRQV EHFRPHV SD\DEOH WR D PHPEHU ZKHQ WKH PHPEHU H[LWV WKH )XQG :LWK HIIHFW IURP $SULO D VOLGLQJ VFDOH RI H[LW ERQXVHV KDV EHHQ DSSURYHG E\ the Trustees. During the year, the Funds Living $QQXLW\ KDV EHHQ UROOHG RXW WR WKH PHPEHUV $ )XQG KRXVLQJ VFKHPH LV LQ WKH SURFHVV RI EHLQJ investigated. Should the entire FULWHULD EH PHW WKH UROORXW RI WKLV scheme should commence in 2020. The South African Revenue Services is also revising legislation to allow the transfer from a SURYLGHQW IXQG WR D SHQVLRQ IXQG XSRQ UHWLUHPHQW 7KLV ZLOO HQDEOH SHQVLRQHUV WR JDLQ PD[LPXP SHQVLRQ IRU D ORQJHU SHULRG RI WLPH

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Lucio Trentini

Operations Director

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On 1 January 2019, the DPHQGPHQWV WR WKH /DERXU 5HODWLRQV $FW FDPH LQWR RSHUDWLRQ LQWURGXFLQJ IXUWKHU measures to ensure that registered WUDGH XQLRQV DQG HPSOR\HUV¶ RUJDQLVDWLRQV FRPSO\ ZLWK WKHLU constitutions and requirements of WKH $F ,Q WHUPV RI VHFWLRQ T RI WKH /5$ WKH &RQVWLWXWLRQ RI HYHU\ WUDGH XQLRQ RU HPSOR\HUV¶ RUJDQLVDWLRQ PXVW SURYLGH WKDW D WUDGH XQLRQ RU HPSOR\HUV¶ RUJDQLVDWLRQ EHIRUH FDOOLQJ D VWULNH RU ORFN RXW PXVW FRQGXFW D EDOORW RI PHPEHUV LQ UHVSHFW RI ZKRP LW LQWHQGV WR FDOO WKH VWULNH RU ORFN RXW )ROORZLQJ D GLUHFWLYH LVVXHG E\ WKH 5HJLVWUDU RI /DERXU 5HODWLRQV LQ )HEUXDU\ DGGUHVVHG WR DOO WKH UHJLVWHUHG HPSOR\HUV¶ organisations, all Associations are required to amend their &RQVWLWXWLRQV WR HQVXUH FRPSOLDQFH ZLWK WKH QHZ SURYLVLRQV RI WKH /DERXU 5HODWLRQV $FW DV DPHQGHG UHODWLQJ WR WKH EDOORWLQJ SURFHGXUH WR EH IROORZHG ,Q WKLV UHJDUG WKH 2I¿FH KDV DVVLVWHG DOO PHPEHU $VVRFLDWLRQV with ensuring that their Constitutions ZHUH FRPSOLDQW

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Theresa Crowley Associations Manager

ABOUT SEIFSA he Steel and Engineering Industries Federation of 6RXWKHUQ $IULFD 6(,)6$ LV D QDWLRQDO HPSOR\HU IHGHUDWLRQ UHSUHVHQWLQJ WKH PHWDOV DQG engineering industries. SEIFSA KDV IRU WKH SDVW \HDUV SURYLGHG DFWLYH VXSSRUW IRU LWV PHPEHUV DQG OREELHG IRU SROLFLHV WKDW KDYH LPSURYHG WKH EXVLQHVV HQYLURQPHQW LQ ZKLFK LWV PHPEHUV RSHUDWH

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6(,)6$¶V PDQDJHPHQW WHDP UHSUHVHQWV HPSOR\HUV RQ D QXPEHU of organisations that are critical to the success of the industry as a whole, including Business Unity 6RXWK $IULFD 1EDLAC and the 1DWLRQDO 6NLOOV $XWKRULW\ 2YHU WKH years, the SEIFSA management WHDP KDV SRVLWLYHO\ LQÀXHQFHG OHJLVODWLRQ DQG SROLF\ DIIHFWLQJ ODERXU UHODWLRQV VNLOOV GHYHORSPHQW as well as economic and trade matters.

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6(,)6$ 1HZV 6(,)6$¶V ZHEVLWH ZZZ VHLIVD FR ]D Regular electronic mails Regular Association meet ings; and The Annual Southern African Metals and Engineering ,QGDED

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MARKETING REPORT

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INDUSTRY EVENTS SEIFSA AWARDS FOR EXCELLENCE 2019 Awards Trophies made by artisans at SEIFSA Training Centre

Guest attending the 2018 SEIFSA Awards for Caption Ceremony Excellence

Born out of the need to encourage growth and celebrate excellence in the metals and engineering sector, the SEIFSA Awards for Excellence offers an opportunity for companies operating in this vital sector to receive well-deserved recognition by industry peers for their capabilities, expertise and innovation. In front of an audience of more than 150 guests at the Sunnyside Park Hotel in Parktown, Johannesburg, HC Heat Exchangers and Pamodzi Unique Engineering were amongst the big winners. Other winners were Babcock International (Environmental Stewardship Award), Howden (Health and Safety Award), Vesco Plastics (Customer Service of the Year Award), SNC Lavalin (Artisan Development of the Year Award) and Schneider Electric (Best Customer Service of the Year Award). Outgoing Cape Engineers and Founders Association Executive Director Colin Boyes was honoured with the CEO’s Award for Outstanding Contribution to

the Industry, Koketso Lekganyane received the CEO’s Award for Student of the Year for excelling at the SEIFSA Training Centre in 2018. KSB Pumps and Valves was named Company of the Year for its outstanding support for SEIFSA, and the Constructional Engineers Association was recognised for being the SEIFSA Association of the Year. Pamodzi Unique Engineering was praised for having embraced transformation by not only focusing on the ownership aspect of the Broad-Based Black Economic Empowerment codes, but also RQ PDNLQJ VLJQL¿FDQW SURJUHVV in the employment equity as well as the enterprise and supplier development elements of the scorecard. This saw Pamodzi moving from level 6 on the scorecard in 2014 to level 2 in 2017. The judges were also impressed by the work the company has done to entrench its company culture, which is centred around the theme of togetherness. Babcock

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followed the company’s initiative to protect, control and conserve water usage. This included the company’s monthly monitoring of its own water usage, its use of water meters through its different sites as well as its recycling and re-use of its own water. These initiatives resulted in a saving of approximately 5000 litres of water. To win the Health and Safety Award, Howden demonstrated a multifaceted approach to risk management by implementing VHYHUDO SURJUDPPHV WR LQÀXHQFH positively the safety culture within the organization. Cognisance ZDV WDNHQ RI WKH LQÀXHQFH RI technology as a communication tool and customised software was used effectively to raise health and safety awareness. In the artisan development category, SNC Lavalin stood out from its competitors as exceptional for a number of reasons, including the fact that the company not only committed to building its own training centre, but also committed to training key artisan trade skills

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METALS & ENGINEERING INDABA 2018

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THE 68TH ANNUAL SEIFSA GOLF DAY

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SEIFSA ANNUAL REVIEW 2019

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REAL PRODUCTION OF COMPANIES IN THE SECTOR

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R123 BILLION

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SHEQ LEGAL ADVISORY SERVICE The introduction of the two new DOOLDQFH SDUWQHUV LQ WKH ODWWHU SDUW RI WKH \HDU XQGHU UHYLHZ has seen SEIFSA introduce more FRPSUHKHQVLYH 6+(4 VHUYLFHV 7KHVH LQFOXGH • •

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The two new alliance partners have considerably supplemented SEIFSA Safety, Health, Environment and Quality Division’s offerings throughout the industry and across the country

HUMAN CAPITAL AND SKILLS DEVELOPMENT DIVISION

EIFSA, acting through direct representation on the Business Unity South Africa (BUSA) Standing Committee on Education and Training (SUB-CET), plays a major role in co-ordinating the views of business and lobbying for employer-friendly skills development policies and approaches at national level.

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HUMAN CAPITAL The skills and competencies of our people determine our success in executing the activities that form part of our critical enablers. Human capital is the biggest cost to our business. SEIFSA is a Level 4 contributor as a Qualifying Small Enterprise p for Broad-Based Black Economic

• • • • •

February 2019: March 2019: April 2019: May 2019: June 2019:

Lindiwe Modise Lerato Lebeko Khumo Kodisang Mariaan De Jager Marique Kruger

SEIFSA complies with all relevant South African labour OHJLVODWLRQ 7KHUH KDYH EHHQ VLJQL¿FDQW FKDQJHV WR 6RXWK African employment legislation during the past year. Wellness initiatives provide employees with access to services that promote individual health and wellbeing. Key initiatives include an annual wellness day where employees are encouraged throughout and monitored.

INTERNSHIP PROGRAMME Nine learners were enrolled on the internship development programme from Ekhuruleni East Technical and Vocational College. The learners, together with one graduate intern from the Tshwane University of Technology, have been placed in the various operational areas of SEIFSA.

Empowerment. Accordingly, we are reformulating plans to address the priority elements of the B-BBEE scorecard to achieve our transformation targets. SEIFSA thrives on happy, motivated employees. We incentivize and reward competitively for exceptional performance, strongly encouraging the achievement of personal goals. We use every opportunity to celebrate team or personal achievements and reinforce the spirit of performance. One of the ways in which achievement is recognised and celebrated is through the designation of Employees of the Month. During the year under review, the following colleagues were Employees of the Month: • • • • • • •

May 2018: July 2018: August 2018: September 2018: October 2018: November 2018: December 2018 / Jan 2019:

Tshimangadzo Netshituni Penny Seitz July Malakoana Mark Lotter Lindiwe Modise Matshidiso Mokoena Kristen Botha and Nuraan Ali Intern at work, Eugene Selepe

SEIFSA ANNUAL REVIEW 2019

HUMAN RESOURCE OVERSIGHT STATISTICS

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EMPLOYMENT AND VACANCIES During the year under review, SEIFSA had four resignations. Two RI WKH SRVLWLRQV ZHUH ¿OOHG WKURXJK LQWHUQDO SURPRWLRQV LQ OLQH ZLWK RXU VXFFHVVLRQ SODQQLQJ SURFHVV DQG WKH DYDLODELOLW\ RI WKH UHTXLUHG VNLOOV VHWV DQG RUJDQLVDWLRQDO ¿W 7ZR SRVLWLRQV KDYH EHHQ ¿OOHG IURP externally. SEIFSA commenced a UHVWUXFWXULQJ SURFHVV LQ WKH 6+(4 'LYLVLRQ WR SXW LQ SODFH HFRQRPLF DQG ¿QDQFLDO PDQDJHPHQW PHDVXUHV WR HQVXUH ORQJ WHUP VXVWDLQDELOLW\ RI WKH RUJDQLVDWLRQ 7KLV SURFHVV DIIHFWHG WKH SRVLWLRQ of the SHEQ Executive.

CAREER AWARENESS

Phumula Gardens Primary School Teachers Choir

Mic helle Norris

Human Capital & Skills Development Executive

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Mark Lotter

Marketing Manager

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Inputs into Initiatives aimed at attracting investments into 10 designated special economic zones (SEZs) Driven by the DTI

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SEIFSA ANNUAL REVIEW 2019

Progress report on the various meetings of the Joint SEIFSA - Transnet Working Group

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SEIFSA ANNUAL REVIEW 2019

Guests at the 2018 Annual SEIFSA GOlf Day

Team SEIFSA Spending a day at Phumula Gardens Primary School as part of SEIFSA CSI Initiative

SOCIAL RESPONSIBILITY REPORT Social Responsibility is to become a corporate citizen that responds to not only shareholder value but also a thriving healthy socioeconomic environment. As such a citizen SEIFSA believes that social responsibility is not only a moral imperative but an integral part of our business model. SEIFSA uses the following blended approach to ensure that we are socially accountable and building towards an enhanced future for our industry.

SEIFSA ANNUAL REVIEW 2019

APPRENTICESHIP Moses Negoma awarded Student of the year at the SEIFSA Awards for Excellence 2018

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7KURXJK WKH VFKHPH 6(,)6$ promotes balance and diversity in the student body by encouraging previously-disadvantaged individuals to seek assistance.

SEIFSA, over the year under review, awarded three new scholarships to apprentices in the Millwright trade, this will lead to a National 2FFXSDWLRQDO &XUULFXOD &HUWL¿FDWH WKURXJK WKH 6(,)6$ 7UDLQLQJ FHQWUH over a four-year period. A millwright is a high-precision craftsman or skilled tradesperson. Millwrights by nature of their profession have to be extremely well versed in many aspects of construction/demobilization. Once millwrights qualify, they have the opportunity to qualify as technicians, engineers, planners, foremen and many other routes requiring mainly electrical and mechanical expertise. SEIFSA keeps a watchful eye on scarce skills and aligns its funding to FRQWULEXWH WR D FRQVLVWHQW ÀRZ RI D VNLOOV SLSHOLQH IRU WKH IXWXUH

UNDERGRADUATE STUDY SEIFSA has a longstanding, reputable bursary fund in place and boasts DQ DOXPQL RI VXFFHVVIXO EXVLQHVV OHDGHUV ZKR EHQH¿WHG IURP WKLV IXQG DW WKH EHJLQQLQJ RI WKHLU FDUHHUV 7KH )HGHUDWLRQ KDV LQIDFW XQGHUWDNHQ to support and facilitate the development, availability and retention of skilled human capital needed by the steel and engineering sector.

Whilst the scope of the SEIFSA bursaries primarily relates to employers and employees within the ambit of the steel and engineering manufacturing sector ZKR DUH DI¿OLDWHG WR $VVRFLDWLRQV federated to SEIFSA, the policy does not preclude applications from eligible persons falling outside the ambit of the steel and engineering sector. 7KH )HGHUDWLRQ KDG WZR EXUVDUV who completed their undergraduate TXDOL¿FDWLRQV LQ WKH \HDU XQGHU review, after being funded for the IXOO GXUDWLRQ RI WKHLU TXDOL¿FDWLRQV 3LWVR 7DHOH FRPSOHWHG KLV % 7HFK LQ Mechanical Engineering at the Cape 3HQLQVXOD 8QLYHUVLW\ RI 7HFKQRORJ\ DQG 7KRNR]LOH 0WVKZHQL FRPSOHWHG KHU % 7HFK &LYLO (QJLQHHULQJ ZLWK a specialisation in Water. We pride ourselves in the distinctive calibre of individuals that are recruited through our bursary process.

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INTERNSHIP PROGRAMME

The SEIFSA Training Centre in %HQRQL RXWVRXUFHG WR *LMLPD$VW VLQFH LV PDQDJHG E\ D JRYHUQLQJ FRPPLWWHH FRPSULVLQJ 6(,)6$ DQG *LMLPD$VW UHSUHVHQWDWLYHV 7KH 6(,)6$ Training Centre can train DSSUR[LPDWHO\ SHRSOH SHU GD\ DQG RIIHUV DSSUHQWLFHVKLSV LQ trades. In addition, the Training &HQWUH LV D 'HSDUWPHQW RI +LJKHU Education and Training registered Trade Test centre. The SEIFSA Training Centre ZDV UXQQLQJ DW FDSDFLW\ XWLOL]DWLRQ IRU WKH ZHHN WUDLQLQJ SURJUDPPHV D WRWDO RI candidates attended this training IRU WKH \HDU DQG FDQGLGDWHV ZHUH WUDGH WHVWHG E\ WKH &HQWUH 7KH WUDGH WHVW SDVV UDWH IRU WKH SHULRG -XO\ -XQH ZDV FDOFXODWHG DW )URP WKH DERYH WKH *LEHOD ,76 SURMHFW KDV FRQWULEXWHG WUDLQHHV LQ WKH VHFRQG KDOI RI WKH ¿QDQFLDO \HDU L H -DQ -XQH 7KH *&5$ KDV WUDLQHG OHDUQHUV WKURXJK VKRUW OHDUQLQJ SURJUDPPHV SEIFSA furnished the training centre with a light delivery vehicle DV SDUW RI SURYLGLQJ WRROV WR HQDEOH SHUIRUPDQFH DW WKH FHQWUH The SEIFSA Training Centre has DJDLQ SXW LQ D QRWDEOH SHUIRUPDQFH given the challenging economic circumstances. The Centre remains a trusted and leading training facility to many in industry.

2018/19 SEIFSA Interns

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SEIFSA ANNUAL REVIEW 2019

CAREER AWARENESS SEIFSA attended a variety of Career Day sessions throughout

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ADOPT A SCHOOL

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6(,)6$ DGRSWHG D 6FKRRO Phumula Gardens Primary situated in Germiston with more than 2000 learners. This school LV KRPH WR NLGV IURP FKLOG KHDGHG households and children who live in RDP houses. SEIFSA has EHHQ DVVLVWLQJ ZLWK WKH YDULRXV QHHGV RI WKH VFKRRO DV SDUW RI RXU FRUSRUDWH VRFLDO UHVSRQVLELOLW\ 7KLV LV DQ RQJRLQJ UHODWLRQVKLS that will continue into the future, DV ZH HQGHDYRXU WR FRQWULEXWH LQ WKH EXLOGLQJ RI D FRPPXQLW\ DVVHW in which the community and its FKLOGUHQ FDQ SULGH WKHPVHOYHV

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SEIFSA BOARD OF DIRECTORS:

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BOARD MEETINGS In the year under review, there were four Board Meetings held on the IROORZLQJ GDWHV $XJXVW 1RYHPEHU )HEUXDU\ DQG 0D\

SEIFSA ANNUAL REVIEW 2019

7KH DWWHQGDQFH 5HJLVWHU RI WKH 'LUHFWRUV DW WKH %RDUG 0HHWLQJV ZDV DV IROORZV Director

6 August 2018

Elias Monage Present $OSK 1JDSR 3UHVHQW Andrea Moz Present Ellen Veldhoven Present 0D\OHHQ .\VWHU 3UHVHQW $QWKRQ\ %R\ 3UHVHQW 1HLO 3HQVRQ 1 $ 1RQKODQKOD 1JZHQ\D1 $ 3DWULFN 0HWVZL 1 $ 7XPL 7VHKOR 1 $ 6HQHFD /XWFKPDQD 1 $ 3LHWHU 'X 3OHVVLV 5HVLJQHG .DL]HU 1\DWVXPED 3UHVHQW Lucio Trentini Present

6 November 2018 Present $EVHQW Present Present 3UHVHQW 1 $ $EVHQW 3UHVHQW 3UHVHQW 3UHVHQW 3UHVHQW 1 $ 3UHVHQW Present

4 February 2019 6 May 2019

Present $EVHQW Present Present $EVHQW 1 $ $EVHQW 3UHVHQW 3UHVHQW 3UHVHQW 3UHVHQW 1 $ 3UHVHQW Present

Present 3UHVHQW Present Present 3UHVHQW 1 $ 3UHVHQW $EVHQW $EVHQW $EVHQW 3UHVHQW 1 $ 3UHVHQW Present

No. of Meetings Attended

4 4 4 4

7KH $WWHQGDQFH 5HJLVWHU RI WKH 'LUHFWRUV DW WKH 6SHFLDO %RDUG 0HHWLQJ ZHUH DV IROORZV Director

September 2018

Elias Monage $OSK 1JDSR Andrea Moz (OOHQ 9HOGKRYHQ 0D\OHHQ .\VWHU 1HLO 3HQVRQ 1RQKODQKOD 1JZHQ\D 3DWULFN 0HWVZL Tumi Tsehlo Seneca Lutchmana Anthony Boy .DL]HU 1\DWVXPED Lucio Trentini

Present 3UHVHQW Present $EVHQW $EVHQW 3UHVHQW 3UHVHQW 3UHVHQW Present Present Present 3UHVHQW Present

No. of Meetings Attended

1 1 1 1 1 1

7KH $WWHQGDQFH 5HJLVWHU RI WKH 'LUHFWRUV DW WKH 5HPXQHUDWLRQ &RPPLWWHH 0HHWLQJ ZDV DV IROORZV Director

August 2018

Elias Monage Ellen Veldhoven Mayleen Kyster

Present Present Present

No. of Meetings Attended 1 1 1

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September 2018

$OSK 1JDSR 0D\OHHQ .\VWHU Andrea Moz 1HLO 3HQVRQ 6HQHFD /XWFKPDQD 1RQKODQKOD 1JZHQ\D

3UHVHQW $EVHQW Present 1 $ 1 $ 1 $

April 2019

No. of Meetings Attended

1 $ 1 $ Present 3UHVHQW $EVHQW 3UHVHQW

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May 2019

Andrea Moz 1HLO 3HQVRQ Seneca Lutchmana 1RQKODQKOD 1JZHQ\D

Present 3UHVHQW Present $EVHQW

No. of Meetings Attended

1 1

There were no noteworthy governance issues which confronted the Board during the course of the year.

Sibusiso Mthenja na Company Secretary

REPRESENTATION

SEIFSA REPRESENTATION ON OTHER BODIES SEIFSA IS REPRESENTED ON THE FOLLOWING EXTERNAL BODIES: • •

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Business Unity South Africa %86$ Commission for Conciliation, 0HGLDWLRQ DQG $UELWUDWLRQ &&0$ (QHUJ\ 7DVN 7HDP RI %86$ (VNRP 6(,)6$ DQG 6WUXFWXUDO Forum for the Overseeing of 'HYHORSPHQW LQ WKH (VNRP Build Programme. SEIFSA Training Centre Governing Body. Manufacturing, Engineering and Related Services Seta PHU6(7$ Metal and Engineering Industries Bargaining Council 0(,%& 0HWDO ,QGXVWULHV %HQH¿W )XQGV $GPLQLVWUDWRUV 0LEID 1DWLRQDO (FRQRPLF 'HYHORSPHQW DQG /DERXU &RXQFLO 1HGODF South African Society for &RRSHUDWLYH (GXFDWLRQ 6$6&( South African Institute of Iron and Steel Downstream 'HYHORSPHQW &RPPLWWHH Price Monitoring Committee. Technical Sectoral Liaison Committee on Trade $JUHHPHQWV RI 1HGODF 1DWLRQDO 1XFOHDU 5HJXODWRU Advisory Council for

SEIFSA ANNUAL REVIEW 2019

• • •

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BUSINESS UNITY SOUTH AFRICA (BUSA) %86$ SDUWLFLSDWHV LQ D ZLGH UDQJH of forums and structures that VKDSH WKH QDWXUH RI RXU UHJXODWRU\ HQYLURQPHQW ,Q SDUWLFXODU %86$ SOD\V DQ DFWLYH UROH LQ 1HGODF ,QWHUQDWLRQDOO\ LW LV D PHPEHU RI the International Organisation RI (PSOR\HUV WKH 3DQ $IULFDQ (PSOR\HUV¶ &RQIHGHUDWLRQ DQG WKH 6RXWKHUQ $IULFDQ 'HYHORSPHQW &RPPXQLW\ (PSOR\HUV¶ *URXS %86$ LV DOVR WKH RI¿FLDO

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COMMISSION FOR CONCILIATION, MEDIATION AND ARBITRATION (CCMA) /XFLR 7UHQWLQL 6(,)6$¶V 2SHUDWLRQV Director, serves on the Board of the CCMA and on the Accreditation 6XE &RPPLWWHH RI WKH &&0$

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NATIONAL NUCLEAR REGULATOR (NNR)

LABOUR MARKET CHAMBER /XFLR 7UHQWLQL 6(,)6$¶V 2SHUDWLRQV 'LUHFWRU LV D EXVLQHVV UHSUHVHQWDWLYH RQ 1HGODF¶V /DERXU 0DUNHW &KDPEHU 7KH FKDPEHU SURYLGHV D IRUXP ZKHUH WKH VRFLDO SDUWQHUV DUH DEOH WR HQJDJH LQ PHDQLQJIXO GHEDWH DURXQG SURSRVHG DPHQGPHQWV WR ODERXU OHJLVODWLRQ DQG SODQQHG FKDQJHV WR WKH FRXQWU\¶V ODERXU PDUNHW SROLF\

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SEIFSA ANNUAL REVIEW 2019

Former SEIFSA Industrial Relations & Legal Services Executive, %ULGJHWWH 0RNRHWOH VHUYHG DV RQH of the Directors on the Board of the 115

RAND MUTUAL ASSURANCE (RMA) Former SEIFSA Industrial Relations & Legal Services Executive, %ULGJHWWH 0RNRHWOH VHUYHG DV RQH of the Directors on the Board of the RMA.

BRICS BUSINESS COUNCIL MANUFACTURING WORKING GROUP 6(,)6$ &(2 .DL]HU 1\DWVXPED LV D PHPEHU ± DQG &KDLUPDQ ± RI WKH 0DQXIDFWXULQJ :RUNLQJ *URXS RI WKH 6RXWK $IULFDQ &KDSWHU RI WKH BRICS Business Council.

Lucio Trentini

Operations Director

BOARD OF

TEAM SEIFSA

Elias Monage President and Chairman

Alph Ngapo Vice President

Neil Penson Vice President

Andrea Moz Vice President

Mayleen Kyster Non-Executive Director

Seneca Lutchmana Non-Executive Director

EXECUTIVE TEAM

Kaizer Nyatsumba &KLHI ([HFXWLYH 2I¿FHU Lucio Trentini Operations Director

Michelle Norris Human Capital & Skills Development Executive

Michael Ade Chief Economist

Sibusiso Mthenjana Rajendra Rajcoomar Industrial Relations and &KLHI )LQDQFLDO 2I¿FHU Legal Services Executive

MANAGEMENT TEAM

Mariaan de Jager Kelisha Moodley Mark Lotter Marique Kruger Theresa Crowley Finance Manager Human Capital & Marketing Manager Economist Associations Skills Development Manager Manager

SEIFSA ANNUAL REVIEW 2019

Nuraan Alli Sales Manager

Michael Lavender Zolile Moyikwa Industrial Relations IR & Legal Manager Services Manager

DIRECTORS

Ellen Veldhoven Non-Executive Director

Patrick Metswi Non-Executive Director

Nonhlanhla Ngwenya Non-Executive Director

Tumi Tsehlo Non-Executive Director

Kaizer M. Nyatsumba &KLHI ([HFXWLYH 2I¿FHU

Lucio Trentini Operations Director

STAFF MEMBERS

Tshidi Mokoena Receptionist

Denelle Chetty Credit Controller

Neo Zulu Credit Controller

Lindiwe Modise 2I¿FH $VVLVWDQW

Lerato Lebeko Executive PA to the &KLHI ([HFXWLYH 2I¿FHU

Monica Pillay Executive PA to the Operations Director

Penny Seitz Credit Controller

Eleen Snyman Economics and Commercial Statistics Clerk

Natalie Fourie 6DOHV 2I¿FHU

Khumo Kodisang Associations Administrator

Jeanette Dlamini IR and Legal Services Administrator

Zandile Ngubeni Creative Designer

Thabiso Lebea Events and Facilities Coordinator

July Malakoana Invoicing Clerk

Kristen Botha Marketing and Sales Assistant

Tshimangadzo Netshituni Junior Credit Controller

Sibusiso Mthenjana Company Secretary

SEIFSA ANNUAL EVENT

SEIFSA AWARDS 2018

SEIFSA ANNUAL REVIEW 2019

SEIFSA ANNUAL EVENT

:20(1·6 '$< 2018

SEIFSA ANNUAL REVIEW 2019

SEIFSA ANNUAL EVENT

GOLF DAY 2018

SEIFSA ANNUAL REVIEW 2019

SEIFSA ANNUAL EVENT

GOLF DAY 2018

SEIFSA ANNUAL REVIEW 2019

SEIFSA ANNUAL EVENT

M & E INDABA 2018

SEIFSA ANNUAL REVIEW 2019

M & E INDABA 2018

SEIFSA ANNUAL REVIEW 2019

SEIFSA ANNUAL EVENT

PRESIDENTIAL BREAKFAST 2018

SEIFSA ANNUAL REVIEW 2019

STEERING THE WAY

FOR CHANGE

The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is a national employer Federation representing the metal and engineering industry. For 75 years, SEIFSA has provided active support for employer Associations and lobbied for policies that have improved the business environment in which its members operate.

INTEGRITY

DIVERSITY

SEIFSA ANNUAL STEWARDSHIP REVIEW 2019

EXCELLENCE

PASSION

INNOVATION

PUBLISHED BY Steel and Engineering Industries Federation of Southern Africa (SEIFSA) 6th Floor, Metal Industies House 42 Anderson Street Johannesburg 2001 PO Box 1338 Johannesburg 2000 Tel: 0861 SEIFSA +27 11 298-9400 Fax: +27 11 298-9500 Email: info@seifsa.co.za Web: www.seifsa.co.za Reg. No. 1949/03422/08

Annual Review 2019

Articles inside

Social Responsibility Report

Secretariat Report

Human Capital & Skills Development