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SADFIA plans to solve Trade Test problem

OCTOBER 2018

GOVERNMENT AND MOTOR INDUSTRY close to finalising SA Automotive Masterplan LOOKING AFTER THE DIESEL FUEL INJECTION TECHNICIAN RMI UPDATE: INFRASTRUCTURE SPECIALISATION; FESTIVAL OF MOTORING

www.automobil.co.za BOASTS RECORD ATTENDANCE; PARTINFORM TRAVELS TO THE WESTERN CAPE

OCTOBER 2018

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www.automobil.co.za


CONTENTS – OCTOBER 2018 COLUMNS 5 7 9 56 66

UPDATES

P28

12 News 28 RMI Review

Editor: Reuben van Niekerk reuben@thefuture.co.za

Sub-editor: Peggy Lendrum peggy@thefuture.co.za

Infrastructure Specialisation; Festival of Motoring boasts record attendance; Partinform travels to the Western Cape

COVER STORY

Design and layout: Heinz Bawa heinz@thefuture.co.za Reporter: Wynter Murdoch wynter@thefuture.co.za

P46

Publisher: Richard Lendrum richard@thefuture.co.za

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SADFIA – Ensuring the future of Trade Testing for

the Diesel Fuel Injection Technician SADFIA represents the Diesel Fuel Injection Industry, a small, highly specialised sector of the Motor Industry whose main function is the repair and servicing of diesel fuel injection systems fitted to diesel engines

Production: Mabel Ramafoko mabel@thefuture.co.za

FEATURES

Advertising Sales Executives: Enver Lawangi, Greg Surgeon, enver@thefuture.co.za greg@thefuture.co.za Future Publishing (Pty) Ltd 247 Jan Smuts Avenue, Dunkeld West, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 803-2040

Driver’s Seat: Jakkie Olivier, CEO of the RMI Editor’s Letter: Reuben van Niekerk Hot Stuff! New product showcase Frequently Asked Questions: Resigning with immediate effect Tailpiece: Don’t drive with worn shocks, warns MIWA

P49 P34

RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Denice Grobler, Danelle Van Der Merwe, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman and Reuben van Niekerk

A digital version of this magazine is available at www.rmi.org.za

32

Tech savvy consumers driving change

In almost every industry, we’re seeing the rise of the empowered consumer

There is more to suspension than meets the eye says Jake Venter

The long-awaited judgement in the Assign Services matter, on the controversial deeming provision, saw the light on 26 July 2018, when the Constitutional Court ruled on the matter

34 38

40

Putting a damper on things

The Deeming Provision judgement delivered

Understanding the Shifren clause

Shifren - is the non-variation clause variable? Andries Stander investigates

Looking towards 2035, the challenges, disruptions and requirements of the SA automotive industry were discussed at the recent NAAMSA Automotive Conference

42

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Government and Motor Industry close to finalising SA Automotive Masterplan

Finding value in the SA Classic car market

Automobil is the official journal of the Retail Motor Industry Organisation (RMI) which hosts 13 constituent associations: ACRA (component remanufacturers); ERA (engine re-builders and automotive engineers); MDA (motorcycle, scooter, quad and jet-ski/outboard engine dealers); MIMA (Motor Industry Manufacturers’ Association); MIWA (the full spectrum of workshop operators); MPEA (wholesale and retail part dealers); NADA (new and used car and truck dealers); VTA (vehicle testing); SADFIA (diesel pumproom operators); SAPRA (Fuel resellers, convenience store and car wash operators); SAMBRA (collision repairers and automotive refinishers); SAVABA (vehicle body builders) and TDAFA (tyre dealers and fitment centres).

Experts impart insider knowledge at the second HAGI VCCM conference, held recently in Sandton.

merSETA is well-placed to tackle the training needs of Industry 4.0, says its CEO Dr Raymond Patel

Automobil is available to purchase from the publishers at R25 a copy.

59

In a time when the consumer is bombarded with alternatives to keeping their cars running, Toyota believes that their replacement parts and service are still the best option.

Automobil is produced and published monthly by Future Publishing (Pty) Ltd for the Retail Motor Industry Organisation. The views and opinions expressed in the publication are not necessarily those of the publishers or the Retail Motor Industry Organistion. While precautions have been taken to ensure the accuracy of advice and information contained in editorial and advertisements, neither the publishers nor the Retail Motor Industry Organisation can accept responsibility for errors, misrepresentations or omissions, or for any effect or consequence arising therefrom. Permission to republish any article or image or part thereof must be obtained in writing from the publishers.

© Future Publishing (Pty) Ltd

www.automobil.co.za

53 54

60

We are taking on Industry 4.0 with all its challenges

Why original Toyota parts and service are superior

CDK Global boosts workshop business by building customer trust

According to new research commissioned by CDK Global, by far the biggest reason customers return to a workshop is ‘trust’

B-BBEE Rewards for employment of youth

Businesses can now improve their BEE level with up to 2 levels by participating in job creation and, more specifically, in meeting the criteria for the Youth Employment Services (Y.E.S)

OCTOBER 2018 -

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BENEFITS OF BELONGING A short summary of the benefits of RMI membership

The RMI has represented the retail motor industry and its members for more than 100 years. With more than 7 500 member businesses, our unity is our strength. RMI representation at often volatile and disruptive centralised wage negotiations. Professional industrial relations advice by expert specialists, ensuring procedural and substantive fairness when disciplining staff. Industry labour relations seminars focused on the rules, agreements and industry-specific topics that affect retail motor industry businesses. Chairing of disciplinary hearings and AUTOMATIC entry and representation at the CCMA, DRC and Labour Court. Representation at various MIBCO and Industry-related Boards and committee structures.

Affiliation to reputable organisations recognised by Government, big business, consumers and relevant stakeholders like Business Unity SA (BUSA). Protection against one-sided legislative changes or new laws and regulations. Exceptional CPA support and member assistance during defence cases at the National Consumer Commission (NCC) and the Motor Industry Ombudsman of South Africa (MIOSA). Facilitation of a business-to-business complaint where both parties are RMI members, with a complaint resolution rate in excess of 95%. Quality and Standards function – representing the retail industry at various South African Bureau of Standards (SABS) committees and working groups. Representation at the National Regulator for Compulsory Specifications (NRCS), defending our industry when compulsory specifications and standards are compromised.

The informative Automobil magazine and weekly web letters that facilitate two-way communication and create consumer and industry awareness. The RMI is regularly invited to comment on industry topics by both print and broadcast media, and participates in and hosts numerous conventions and shows. Associational accreditation ensures ongoing development and implementation of commercial value propositions specific to the association. Training needs and representation via merSETA and W&RSETA. We actively drive industry-wide training and apprenticeship issues through our position on the merSETA Board and our involvement with the Technica manuals. Representation at the Moto Health Care Fund, Industry Provident Funds and the Sick, Accident and Maternity Pay Fund. The RMI offers industry-specific products like RMI4BEE / RMI4LAW / RMI4OHS /RMI4SURE.

Need to get hold of the RMI? Turn to Page 8 of this issue for all the contact details

4 OCTOBER 2018

www.automobil.co.za


DRIVER’S SEAT

Our voice in the media As we enter the last quarter of 2018, I am delighted to say we have launched our PR campaign for RMI, and the initial response has been very encouraging says Jakkie Olivier, CEO of the RMI

Jakkie Olivier, CEO of the RMI

W

e believe the time is right to speak to consumers and the motoring industry to highlight what we stand for and why it is important to use RMI members. The PR strategy, compiled during July and implemented in August, aims to raise the profile of the RMI and its constituent associations in the public space, and to draw consumers to RMI members. Moving forward, we will be drafting regular monthly content to increase our voice in the market. We will be regularly tackling issues in the sector, educating consumers on their vehicles and road safety, and sharing our core messages. The three initial core messages we will be focusing on include dispute resolution; assurance of quality standards of service and ethical trading conditions, and the importance of the upliftment of businesses and people. We have received great enthusiasm from the media for the content distributed so far, and in the first month achieved over 80 placements. This ranged from our full articles being published, to mentions of RMI – all of which contribute to increased awareness of the RMI brand. Our placements have appeared in

the motoring trade magazines and websites, consumer newspapers and websites, and also on daily news sites and papers. We’ve had hits in The Star, Automotive Business Review, Wheels 24, Randfontein Herald, Pretoria News, South Coast Herald, Suid Kaap Forum, Car, Heraut Heidelberg Nigel, George Herald and Bizcommunity, to name some. We also got exposure for our dispute resolution benefit in an interview on SAFm. Through the different topics we decide on, the aim is also to give our constituent associations a voice in the media. So, for example, our recently compiled article on reducing road deaths through regular tyre checks included quotes from our tyre experts, Tyre Dealers’ and Fitment Centre Association (TDAFA). Each of our associations is doing great work in the sector, and we need to share and celebrate their expertise. You may also have read or seen recent news reports on the growing trend of technology innovation across the automotive industry in terms of the empowered consumer. Today’s consumers are more empowered than ever before, thanks to access to information available on the Internet. When it comes to purchasing a new vehicle, many consumers conduct

extensive online research and seek out peer-to-peer recommendations before narrowing their choice down to two or three models. While consumers still use dealerships to complete the purchase, research indicates that many South Africans are willing to conduct the entire car-purchase process online, including paying a deposit and arranging finance. Beyond the actual purchase of a car, technology plays a significant role in improving the customer experience when owners have their cars serviced. In an increasingly customer-centric world, consumers expect a certain level of service in all facets of life, including the servicing of their vehicles. The RMI will soon launch a mobile app of its own, aimed at connecting consumers to accredited RMI members. App users will also have easy access to specials offered by RMI members in their area. From a customer service point of view, RMI members will be able to use the app for training purposes, to connect with other RMI members and to access up-to-date RMI news. Our app will take the guesswork out of locating a good partner for vehicle care, and will seamlessly connect consumers to the nearest RMI member. Watch this space.

For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300

www.automobil.co.za

OCTOBER 2018 -

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CONSTITUENT ASSOCIATIONS Who do they represent and what are their objectives?

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he RMI is a proactive, relevant, retail and associated motor industry organisation recognised as the leading voice in South Africa’s automotive aftermarket, serving the daily needs of its members and playing a key role in enabling motor traders to deliver top class service to motoring consumers. Here are the associations which fall under its umbrella… ACRA (Automotive Component Remanufacturers’ Association) ACRA represents component remanufacturers involved in the remanufacture of safety-critical components and radiators, an ever-growing industry in which keeping abreast of change is crucial for business owners. ERA (Engine Remanufacturers’ Association) ERA represents motor engineers who re-machine, rebuild and remanufacture engines in South Africa. ERA members promote the reuse of engines, parts and components in a manner that is green and sustainable. ERA members create employment and skills development opportunities, directly in their own machine shops and indirectly through suppliers to the industry and component manufacturers. MDA (Motorcycle Dealers’ Association) MDA represents members who are motorcycle dealers – these members benefit from an extensive array of value-add services and products such as commercial insurance, labour legal assistance and representation, consumer dispute resolution, and a strong relationship with the Association of Motorcycle Importers and Distributors. MIMA (Motor Industry Manufacturers’ Association) MIMA members are Parts, Equipment and Component Manufacturers and suppliers to Original Equipment Manufacturers and the automotive aftermarket that exports into Africa and other countries in the world. MIWA (Motor Industry Workshop Association) MIWA, the largest association within the RMI, strives to keep its members informed about the ever-changing auto repair industry, thereby ensuring that vehicles are repaired to acceptable standards designed to make them perform better and safely on South African roads. MPEA (Motor Parts and Equipment Association) MPEA represents South Africa’s auto part traders, including wholesalers, retailers and independent operators in the replacement motor parts industry. Genuine replacement parts are available at accredited MPEA spares outlets at affordable prices, backed by the manufacturer’s warranty. NADA (National Automobile Dealers’ Association) NADA represents the interests of business people who own or operate new vehicle franchise dealerships and qualifying used vehicle outlets. NADA is committed to the image enhancement of the retail motor business, facilitating the interface between dealers and OEMs/distributors, building relationships between dealers and customers and bringing relevant industry issues to the attention of government.

6 - OCTOBER 2018

TA

Vehicle Testing Association

VTA (Vehicle Testing Association) The VTA represents private vehicle testing stations that are committed to operating within the law in accordance with the Road Traffic Act and the relevant SANS standards. In this highly regulated environment, the association represents the interests of its members at government working groups and is committed to enhancing the reputation of the industry in all the spheres. SADFIA (South African Diesel Fuel Injection Association) SADFIA members operate fully equipped pump rooms aimed at providing cost-effective service solutions for owners of diesel powered vehicles seeking fuel injection system testing, repair or replacement. SAMBRA (South African Motor Body Repairers’ Association) SAMBRA is an active leader in the motor body repair industry and consolidates, communicates and regulates repair standards in the motor body repair industry. SAMBRA ensures the provision of technical and business skills training that meets the demands of the industry and instils confidence in consumers and industry stakeholders. SAPRA (South African Petroleum Retailers’ Association) SAPRA represents and promotes the interests of petroleum retailers in South Africa and fosters strong relationships with the Department of Energy, oil companies, banks, financial institutions and other stakeholders that have an impact on the sustainability of the service station industry. SAVABA (South African Vehicle and Bodybuilders’ Association) SAVABA members are professional, certified and regulated vehicle body builders in South Africa who manufacture commercial vehicle body applications (tanker, coal, refrigerated trucks and trailers) and bus bodies (commuter and tourist type). Members manufacture using the latest equipment and highly trained staff to ensure strict compliance with SABS standards and other legal specifications. TDAFA (Tyre Dealers' and Fitment Association) The TDAFA is the only representative body for tyre dealers nationally. The association works on all issues relevant to tyres and the fitment industry. Strategically, the TDAFA is positioned as an intermediary between government, the tyre industry and consumers and is recognised by government and industry leaders as the legitimate voice representing tyre dealers. RMI contact details Head Office: 011-886-6300 | www.rmi.org.za Surrey Square Office Park, 330 Surrey Avenue, Ferndale, Randburg, 2194 RMI Regional Offices: Highveld: Randburg: 011-886-6300; Northern: Pretoria: 012-348-9311; KwaZulu-Natal: Durban: 031-266-7031; Eastern Cape/Border: Port Elizabeth: 041-364-0070; Western Cape: Cape Town: 021-939-9440; Free State/Northern Cape: Bloemfontein: 051-430-3294

www.automobil.co.za


EDITOR’S LETTER

It is not all doom and gloom shows that industry and the public are enthusiastic about motoring.

I

f one uses the recent NAAMSA conference held at the Festival of Motoring as a barometer of the local automotive industry, then I think it is fair to say that the local industry is in a good position at the moment. The high numbers of attendance to both the conference and the expo, which saw nearly 70 000 visitors through the gates,

AA_TechnicalCollege_1_2.pdf

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2018/08/01

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During the conference, Andrew Kirby President and CEO of Toyota SA Motors, highlighted an interesting trend that is taking place in Europe. He said that the rate of driver’s licence applications in Germany has seen significant decline as millenials no longer strive to own cars. On the contrary, Afrillenials are focused on success and are playing asset catchup, and want to own cars. This is good news, and Kirby expects that the segment for affordable, practical, and well-designed cars will see good growth as a result.

Other speakers at the conference went into great detail on how important the automotive industry is for the South African economy, and I have highlighted some of these very enlightening numbers on page 42. In this edition of Automobil we highlight SADFIA and the work that they are doing in the Diesel Fuel Injection Industry. This Association is a great example of how working with business can be beneficial to the industry as a whole. They have teamed up with Bosch to help alleviate the shortage of trade test opportunities in this sector. Speaking about industry, Naamsa is on the cusp of announcing their Masterplan which is set to replace the APDP and guide the industry all the way to 2035.

The competitive advantage your business needs.

Reuben van Niekerk, Editor

AA.co.za Education Driven by the AA

Ensure that your technical staff are skilled to deliver optimum service and ongoing productivity. Calling all employers who are interested in hosting learners, at no cost for stipend or training. Ts & Cs apply. Trade training offered: • Automotive electrician

• Diesel fitter

• Automotive engine fitter

• Motor mechanic

• Diesel mechanic

• Diesel fuel injection technician

Call us NOW! 086 133 3668 weekdays 8am to 4pm. www.automobil.co.za

OCTOBER 2018

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NEWS

SPEAK TO US

SAMBRA Richard Green richard.green@rmi.org.za

 hief Executive Officer: C Jakkie Olivier jakkie.olivier@rmi.org.za

SAPRA Vishal Premlall vishal.premlall@rmi.org.za

RMI EXECUTIVES

Chief Operations Officer: Jan Schoeman jan.schoeman@rmi.org.za Financial Director: Renee Coetsee renee.coetsee@rmi.org.za Company Secretary: Gary McCraw gary.mccraw@rmi.org.za

RMI BOARD MEMBERS Jeรกnne Esterhuizen (President) Barry Canning (Vice-President) Jakkie Olivier Johann van de Merwe Jaco Koen Franz Maritz Mams Rehaman

Lindsay Bouchier Eugene Ranft Chris Le Roux Dupre Le Roux Les McMaster Vuyani Mpofu Andrea Bogner Ferose Oaten Frank MacNicol Mark Dommisse

RMI PARTNERS RMI4Sure 0860-104-202 RMI4Law 0861-668-677 RMI4BEE 0861-764-233 RMI4OHS 012-998-7139

DIRECTORS MIWA Pieter Niemand pieter.niemand@rmi.org.za NADA, MDA Gary McCraw gary.mccraw@rmi.org.za

RMI HEAD RMI HEADOFFICE OFFICE

RMI REGIONAL OFFICES

Danelle van der Merwe Brand and Communication Manager danelle.vandermerwe@rmi.org.za

Highveld: Randburg: 011-886-6300

Neo Bokaba HR Manager neo.bokaba@rmi.org.za Julian Pillay Regulatory Compliance Manager julian.pillay@rmi.org.za 011-886-6300 | www.rmi.org.za Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194

8 - MAY 2015

VTA, SAVABA Julian Pillay julian.pillay@rmi.org.za TDAFA, MPEA, MIMA Hedley Judd hedley.judd@rmi.org.za TRAINING Louis van Huyssteen louis.vanhuyssteen@rmi.org.za SADFIA, ACRA, ERA Attie Serfontein attie.serfontein@rmi.org.za TRANSFORMATION Joy Oldale joy.oldale@rmi.org.za

Facebook.com/AutomobilSA

@AutomobilSA

Northern: Pretoria: 012-348-9311 KwaZulu-Natal: Durban: 031-266-7031 Eastern Cape/Border: Port Elizabeth: 041-364-0070 Western Cape: Cape Town: 021-939-9440

www.rmi.org.za

Free State/Northern Cape: Bloemfontein: 051-430-3294

TA

Vehicle Testing Association

www.automobil.co.za


NEW PRODUCTS

HOT STUFF

Say Hello to the future of Automotive Diagnostics more. As the vehicles have become more sophisticated, so too have the electronic control systems, which means that computers are becoming more and more integrated into the vehicle’s management system. It is already so advanced that it has become a Management System and technicians need to be able to diagnose and reset these systems. Most components, including gearboxes, need to be coded or calibrated to the ECU following their replacement.

If you are or have been working in the Automotive Industry for the last 20 years, you will be aware that computers are an integral part of all motor vehicles these days. All new vehicles since the turn of the century have been fitted with Electronic Fuel Injection and Ignition systems, and oxygen sensors. These systems require computers (Electronic Control Units) to operate them and all the ancillary electronic systems that run hand in glove with them, e.g. Injectors, throttle bodies and many

A decent diagnostic is essential to perform these tasks. It’s not only mechanical things which can go wrong with a car – programmes or software can also become corrupted, and software gets updated periodically and then needs to be reloaded. And it’s not “Agents Only” - you can also download and reflash (reprogram) the ECU. All you need is the right tool that is capable of doing it, such as the Launch PAD III, which, in addition to all the other functions as mentioned above, will also download software programs and updates from the factory and write them onto the vehicle ECU. Contact Yan Li on 074 8555 555 or visit www.launchsa.co.za

The Thule Motion Roofbox makes a quiet statement Italian motoring magazine, Automobilismo, recently tested seven roof-mounted luggage boxes and found the Thule Motion XT to be the best. The title, considered one of the country’s most influential (190 000 copies are printed), scored the Thule ‘box 45 out of a possible 50 points, with a maximum 10 achieved in two of five categories. The magazine’s testers found the Thule product to be the quietest and the leader when it came to quality and details. To quote the writer of the test: “It is not just about the quality or the perceived robustness. We found out that behind Thule there is a careful aerodynamic study that makes this box very silent, without any rustle or hiss, and even consumption is at the top of the competitors on the market.” Thule luggage boxes and other products are imported by SA Sport & Cargo and are available through Thule Partner Stores. Find out more about Thule at www.thule.com/en/za

www.automobil.co.za

OCTOBER 2018 -

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10 - SEPTEMBER 2018

www.automobil.co.za


www.automobil.co.za

SEPTEMBER 2017 -

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NEWS

Volkswagen expands African operations

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olkswagen has signed Memorandums of Understanding with the governments of Ghana and Nigeria to build vehicle assembly plants in each of the countries and to explore the development of new mobility solutions in Ghana. The documents were signed on behalf of Volkswagen by the company’s head of the Sub-Saharan Region, Thomas Schaefer, and by officials representing the governments of Ghana and Nigeria. German Chancellor Angela Merkel – who was in Africa for discussions with political leaders – witnessed both signings. In a statement, Schaefer said Volkswagen would continue to expand its business in Africa’s Sub-Sahara region. “Both memorandums demonstrate one thing: the seriousness with which Volkswagen takes its commitment to Africa. “We are well positioned. Final hurdles for the development of the automotive industry in Sub-Saharan Africa have been removed. This is a great opportunity for us.” In Ghana, Volkswagen has undertaken to build an assembly plant as well as a training academy. Additionally, the company will conduct a study to determine the feasibility of introducing vehicle rental, car sharing, ride-hailing and shuttle services. In turn, the Ghanaian government has undertaken to develop a comprehensive Automotive Industry Policy with a view to incentivizing vehicle manufacturing in the country. The policy will include

12 - OCTOBER 2018

At the signing ceremony in Ghana: Thomas Schaefer, Head of Volkswagen’s Sub-Saharan Region and Managing Director of the Volkswagen Group South Africa; Angela Merkel, Chancellor of Germany; Mahamudu Bawumia, Vice-President of the Republic of Ghana; and Alan Kyerenmaten, Ghana’s Minister of Trade and Industry

a preferential procurement agreement regarding locally produced vehicles. In Nigeria, Volkswagen has committed to expanding its manufacturing operations on a step-by-step basis and, in the long term, to turning the country into a West African automotive hub.

Volkswagen already builds vehicles in South Africa and Kenya, and recently began to assemble them in Rwanda, where community car sharing is offered as an integrated mobility solution and where ride-hailing will be provided soon.

The first stage of the project involves the establishment, in conjunction with the German government, of a training academy aimed at initial employees while also providing technical instruction in automotive skills for the broader community.

According to the statement, Volkswagen’s Transform 2025+ strategy aims to strengthen the brand’s position in emerging markets. The statement quotes Schaefer as saying that, alongside the United States, South America and China, the Sub-Sahara region will play an increasingly important role in building sales.

Subject to commercial viability, the company has also undertaken to develop a comprehensive Volkswagen vehicle and service network in Nigeria. In return, the government has pledged to accelerate the passage of Nigerian automotive policies, including the gradual transition from importation of used cars to the manufacture and distribution of new passenger vehicles.

“Although the African automotive market is comparatively small today, the region could develop into a growth market of the future,” he says. “Volkswagen will continue to grow its importer network in the Sub-Saharan region and explore other opportunities for growth and development. As a next step, exploratory talks are being held with the Government of Ethiopia.”

www.automobil.co.za


Isuzu sponsors Southern Kings

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suzu Motors South Africa has signed a three-year sponsorship agreement with the Eastern Cape’s Southern Kings rugby team – the country’s first blackowned rugby franchise. The Port Elizabeth-based automotive company’s CEO, Michael Sacke, said the rugby franchise – which has been bought by a consortium of predominantly black entrepreneurs – represented an ideal partnership for Isuzu. “We both have our sights set on achieving sustainability, growth and success for the long run. We urge the residents of the Eastern Cape to join us in rallying behind the Kings, so that we can help build a strong rugby base in our region,” he said. The Kings are contesting the Guinness Pro14 Championship which features clubs from Ireland, Wales, Scotland, Italy and South Africa. “As an innovative, solutions-orientated automotive company, we are proud of our Eastern Cape roots and, as such, are pleased to be partnering with our local rugby team.

Celebrating the sponsorship announcement: Charl Crous, Chief Operations Officer of the Isuzu Southern Kings, Loyiso Dotwana, chairman of the business consortium, Michael Sacke, CEO and MD of Isuzu Motors South Africa and Gary Markson, one of the consortium partners

“We hope our support will ultimately help boost the local economy through increased sports tourism and other spinoff opportunities,” Sacke said.

the local game. We want to build a professional and competitive team with the long-term aim of winning the Guinness Championship.”

Chairman of the Kings’ franchise owners, Loyiso Dotwana, said the Eastern Cape community deserved a rugby team of which it could be proud. “This is the home of black rugby, and our team will help to promote social cohesion in

He said the consortium was in discussion with Nelson Mandela University with a view to reviving a rugby academy on campus to provide incubation and training facilities for the team.

and Rural Economy Summit held in East London. The inaugural summit – which was hosted by the Department of Trade and Industry, the Black Economic Empowerment Advisory Council and the Eastern Cape Department of Economic Development – took place against a backdrop of renewed governmental efforts involving economic redistribution and a more inclusive economy.

AIDC sets transformation example

T

he AIDC’s Enterprise Development Programme in the Eastern Cape – specifically the Buffalo City Municipality Automotive Aftermarket Incubator at Mdantsane – was spotlighted recently at a National B-BBEE Township

www.automobil.co.za

Hoosain Mahomed, the CEO of the AIDC in the Eastern Cape, said the incubator served as an example for progress. “It is a classic model of how

priorities of government with respect to inclusion and economic transformation can be achieved,”’ he said. “In an area where unemployment stands at 66%, nine new businesses in the incubator between them had a turnover of R7,2-million for the year. The project has created permanent employment for 71 people with an additional 300 members of the community supported.” The summit was preceded by provincial seminars which gave a voice to rural and township communities and highlighted the urgency to transform with a view to including the areas in the mainstream economy. For more information on the incubator view www.aidcecenterprisedevelopment.co.za

OCTOBER 2018

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Land Rover helps to save the rhino

NEWS

Renault unveils new SUV

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enault has unveiled in Moscow a new SUV-styled model which, from next year, it will sell in global markets – including Africa. Sales of the Arkana – a C-segment crossover-coupé – are expected to contribute positively to the brand’s international expansion plans. “The vehicle’s class-unique design will be a real novelty in a very competitive C-segment,” says a statement issued by the company. “Customers’ needs are getting more and more diverse, and the Arkana has been born from those expectations. It proposes a balance between the elegance of a sedan and the sturdiness of an SUV.” Conceived with all-terrain capability by Renault Russia, the model offers high ground clearance, wide wheel arches and large wheels. “It is a sturdy vehicle ready to face harsh driving conditions and tough weather,” says the statement, adding: “But it is also

elegant, with a high waistline and a coupé roofline emphasised by side chrome detailing and a panoramic glass top.” The model will be manufactured in different countries – including Russia, Europe and Asia – as part of Renault’s Drive the Future strategy through which the company aims to increase its global sales volumes to five million units by 2022. “Arkana will play a key role in helping to achieve this goal,” says a spokesman for the brand. “While the car has been developed to meet Russian customers’ expectations, we are confident that, with minor adaptations to meet requirements in specific regions, it will be well received in markets around the world. In that sense, the model will be instrumental in helping Groupe Renault to achieve its international growth plans.”

Land Rover Chief Designer Gerry McGovern

L

and Rover has joined an urban artwork trail in London which is aimed at helping to conserve Africa’s rhinos and their habitat.

The brand’s model of a rhino – painted by chief designer Gerry McGovern – made its debut last month in collaboration with wildlife preservation organisation, Tusk. The 1,2m-long rhino sculpture was towed into Trafalgar Square by a Discovery SUV in support of Tusk’s London Rhino Trail, which is aimed at raising money to help ensure the survival of the endangered animal. The initiative involves 21 sculptures – donated and decorated by leading figures from the worlds of art and design – installed at prominent locations across the UK capital. The works draw will be sold at an auction this month and the proceeds donated to Tusk. McGovern said: “I wanted to celebrate the magnificence of this unique creature, so my rhino is covered in a chrome finish that makes it visible from a long distance, consequently creating awareness of the plight of the animal in Africa. “The horn is painted red, inspired by the dye treatments conservationists use to protect rhinos from poachers, which helps to signify the absurdity of this beautiful animal being hunted for such a small part of its overall being.” A spokesman for Jaguar Land Rover said the company was committed to projects that not only demonstrated the talent of its designers, but which highlighted the work carried out by charities such as Tusk. Each of the 21 sculptures will be sold on October 9 to raise funds for Tusk projects across Africa.

14 OCTOBER 2018

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OCTOBER 2018

15


Gumtree World Rallycross of South Africa is back and it’s bigger & better! If you enjoy the ecstatic sensation of high-powered engines, outrageous speeds and intense rubber-burning wheel spins, then the Gumtree World RX SA is the event for you! Watch as the Gumtree World Rallycross of South Africa takes over the Killarney Raceway in Cape Town on the 24th and 25th of November 2018, and transforms the track into a powerful, all-out, relentless two days of the fastest motorsport action imaginable. Following on from 2017’s hugely successful event that saw almost thirty thousand people attend, this year’s races are only the second time the Gumtree World Rallycross of South Africa has played out in Africa.

16 SEPTEMBER 2018

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With rallycross being one of the fastest growing motorsports in the world, it’s no surprise that it embodies the pure entertainment and adrenaline from seeing all of the competing motoring beasts battle it out right in front of you. Driver entries are also on the up, and the best of the best will be out to play in Cape Town. Current World Champion Johan Kristoffersson will be joined by hard-racing track heroes Sebastien Loeb, Peter Solberg and Mattias Ekström. With twenty-five hugely popular drivers in all, spectators will be spoilt for choice. Also on the line up will be the RX2 category and local disciplines of motor racing, as well as loads of additional entertainment on and off the track. Don’t miss out on this incredible homage to speed, precision driving and all things motorsport! Get your tickets today on TicketPro - www.ticketpros.co.za So go on, satisfy your need for speed and head on over to the Killarney Raceway. The sun will be out, the engines will be roaring, and the cars will be unbelievably fast. For more information visit - www.wrxsa.co.za #WorldRXSA

www.automobil.co.za

SEPTEMBER 2018

17


NEWS

VW creates digital community

V

W will invest $4-billion (about R57,28-billion) by 2025 to build digital businesses and products including a cloud computingbased platform and a new software operating system. Believing that vehicles will evolve into central hubs for the Internet of Things, the company is speeding up the development of its own software ecosystem, called vw.OS.

will be designed to complement the Volkswagen experience on wheels, enabling the world to be brought into vehicles through the new operating system. Stackmann adds that the brand hopes its open interfaces will encourage third parties to participate in creating a strong We community by contributing their own software to the project.

“We have a clear vision. Going forward, Volkswagens will increasingly become digital devices on wheels,” says Jürgen Stackmann, the brand’s Board Member for Sales.

Michael Jost, Volkswagen’s Chief Strategy Officer, says that, in future, software and associated services will make a significant contribution to differentiation in the automobile industry.

He says customers will become part of the ecosystem – dubbed We – which

“To deal with this development, we need to reinvent the automobile in some

ways,” he says. Changes include simpler vehicle IT architecture, the first example of which will be incorporated in the brand’s ID family of electric vehicles from 2020. “The new architecture dispenses with a large number of separate control units that run on manufacturer-specific software – today, there are as many as 70 such units in a vehicle,” Jost says. Instead, vehicle intelligence will be concentrated in just a few computers with a unified programming language. “Software will come from one source – vw.OS,” Jost explains, adding that separating hardware from software lays the groundwork for remote updates and upgrades on a continuous basis, a perquisite for autonomously driven vehicles.

New communications chief for Volkswagen SA

V

olkswagen Group South Africa has announced the appointment of Andile Dlamini as Head of Communications. A former product PR manager and personal assistant to Thomas Schaefer, the company’s Chairman and Managing Director, Dlamini boasts more than 15 years’ experience in South Africa’s automotive industry. He joined Volkswagen in 2008, having previously worked in the public relations departments at BMW SA and Toyota SA.

Andile Dlamini

18 OCTOBER 2018

Dlamini replaces Volkswagen communications veteran Matt Gennrich who, despite reaching the company’s mandatory retirement age in March this year, was asked to stay on to oversee transition. Though Gennrich officially

relinquished operational responsibilities on September 1, he remains with the company on a consultancy basis until the end of the year. “We wish Andile all the best in his new position. His experience in public relations and the automotive industry, as well as his passion for the Volkswagen Group, made him the ideal candidate for this position,” Schaefer said in a statement. He thanked Gennrich for his loyalty, dedication and contribution in many different roles over the years. “Matt’s knowledge and passion for the automotive industry has been of great benefit to the company. He will be missed,” the statement concluded.

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“2020 will therefore be a turning point for the Volkswagen brand. While today, some 1,5-million vehicles with no online access can connect with the Internet thanks to a retrofit solution, 2020 is the year when the brand will begin to connect its entire fleet. Each year, over five million new vehicles will then become part of the Internet of Things.” The backbone of the ecosystem will be a Group-wide, cloud-based platform called

the One Digital Platform (ODP). “Volkswagen is spearheading the development of the OPD in collaboration with Group brands. And we are seeking additional external support. We will soon be announcing cooperation projects and partnerships,” says Christoph Hartung, the brand’s Head of Digital and Mobility Services. According to Jost, by implementing its Transform 2025+ strategy, Volkswagen has launched the biggest change process

in its history. “By 2025, Volkswagen intends to play a leading role in the new automobile industry, set up innovative mobility solutions and become the world market leader in e-mobility. “The focus is on the evolution from an automaker to a mobility service provider with a connected fleet,” he says. “We plan to spend some $4,0-billion on our digitalisation offensive during this period.”

Brett Soso joins McLaren Automotive

L

uxury British sportscar and supercar maker McLaren Automotive has announced the appointment of Brett Soso as the new Regional Director for the Middle East, Africa and Latin America region.

With 24 years of experience in the automotive industry, Soso, a South African, will be based in Bahrain. He has a wealth of experience in the luxury automotive sector as well as in the region, most recently serving as Regional Director Middle East and Africa for Rolls-Royce Motor Cars. “I’m pleased to welcome Brett to the regional management team. We are confident that his experience and knowledge will contribute to the continued success of McLaren in the region,” said Jonathan Pollock, Global Sales Director, McLaren Automotive.

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Brett Soso

OCTOBER 2018 -

19


NEWS RMI UPDATE

Raikkonen rejoins Sauber F1

Standing in front of the Goodyear timeline at the new Head Office are Piotr Czyzyk; Trentyre and Commercial Director, Ria Bronkhorst; Human Resources Director, Marquis Pretorius; Sub-Saharan Director, Nonkosi Dyantyi; Group Communications Manager and Goodyear Group Managing Director; Darren Hayes Powell

Goodyear SA moves into new HQ

G

oodyear South Africa has consolidated its Johannesburg based head office to support the company’s business strategy of simplification, increased efficiencies and enabling effective employee engagement. Located at the Hertford Office Park in Midrand, the eco-friendly building features a specific interior design aimed at cultivating creativity and collaboration. “The open plan design is essential for letting in natural light, creating a refreshing and energizing work environment,” says a statement issued by the company. Group Managing Director Darren HayesPowell says the move enables Goodyear South Africa to better implement its One Team strategic principles. “Our employees are core in creating an agile and innovative organisation. The consolidation provides an empowering environment for our teams to work together.” The office accommodates Trentyre staffers who were based at Germiston; Goodyear Group and Sub-Saharan Africa

20 OCTOBER 2018

team members and support staff who were based at the International Business Gateway in Midrand; and the Consumer Sales Team that was based at Hi-Q Head Office in Spartan. “The Hi-Q Head Office will soon be moving to the Motor City at Waterfall in Midrand, which will be in close proximity to the new Goodyear South Africa offices,” says Hayes-Powell. He adds: “Over the years, we have made consistent efforts to ensure that the Goodyear brand continues to grow within South Africa and Sub-Saharan Africa. The move to a new and consolidated office location provides us with improved speed to market, as well as faster decision making between our business teams and support functions. “All of these investments are in line with our business imperatives and expresses our commitment to grow in Africa, both in developing our local talent as well as our capabilities to support our customers.”

F

ormer world champion Kimi Raikkonen will leave Ferrari at the end of the season and join Sauber, the team at which he began his Formula One career in 2001. The 38-year-old Finn has signed a twoyear contract. He will be replaced at Ferrari by current Sauber driver Charles Leclerc, 20, who will partner Sebastian Vettel in 2019. “Feels extremely good to go back where it all began,” Raikkonen said in a post on Instagram. Sauber’s team boss, Frederic Vasseur, said: “Signing Kimi as our driver represents an important pillar of our project, and brings us closer to our target of making significant progress as a team in the near future.” Raikkonen is the last Ferrari driver to win a world championship, clinching the title in 2007. In 2010 he took a two-year break from F1 to compete in the World Rally Championship, rejoining the sport with Lotus in 2012. In 2014 he rejoined Ferrari. Leclerc has been picked as the Italian team’s next star after impressing in his debut F1 season. “Dreams do come true,” he posted on Twitter. “I will be eternally grateful to Ferrari for the opportunity given.”

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JUNE 2018 -

21


NEWS

Jaguar pioneers R30-million power grid in SA

J

aguar, in conjunction with energy company GridCars, is in the process of establishing 82 public charging stations in South Africa’s major hubs and along frequently travelled holiday routes. The R30-million investment is aimed at making day-to-day travel, as well as long journeys, possible for owners of electric vehicles – including the soon to be introduced Jaguar I-Pace. According to a statement issued by Jaguar Land Rover, in addition to publicly available charging stations to be installed in customer parking areas at every one of the company’s retail outlets around Southern Africa, another 30 stations will be erected at shopping centres in Johannesburg, Pretoria, Durban, Cape Town, Port Elizabeth, East London and Bloemfontein. “South Africa’s city centres will now also be connected by the Jaguar Powerway – a series of 22 charging stations along the N3 between Gauteng and Durban and the N1 between Gauteng and Cape Town. Cape Town will also be connected to the Garden Route with a series of

22 - OCTOBER 2018

charging stations along the N2 all the way to East London,” the statement says. Richard Gouverneur, Managing Director of Jaguar Land Rover South Africa, said the brand was proud to be setting the pace for a new generation of electric vehicles. “The launch of the Jaguar Powerway demonstrates our commitment to electrification technology and the future of mobility in our market. This new network provides peace of mind to our Jaguar I-Pace customers who can now experience more of their world with less range restrictions.”

available in South Africa. The DC charger is fitted with the CCS DC type socket used by the vast majority of EVs. Jaguar Land Rover owners will use an RFID card to activate the charging station and manage electricity billing to the card. Cards can be credited with simple EFT payments, much like cellphone airtime top-ups. Charging station electricity rates will also be discounted by 25% for all Jaguar Land Rover EV or PHEV owners.

The majority of charging stations on the public network will be 60kWh fast chargers, meaning 100km of range will take around 20 minutes to administer. A charge from 0 to 80% will take around 72 minutes.

Like petrol, the price of electricity fluctuates, but for now the rate for 1kWh on the card will be between R3 and R3,50 depending where in South Africa it’s redeemed. According to Jaguar’s statement, a full recharge for a 90kWh battery in an I-Pace will cost between R270 and R315 – far less than the fueling costs of conventional internal combustion engine vehicles.

All charging stations will also be equipped with a 22kWh AC fast charger to accommodate plug-in hybrid vehicles (PHEVs). The AC standard Type 2 socket will allow charging of all EVs currently

The entire Jaguar charging grid and Powerway is expected to be operational by the end of next month. The I-Pace will be available in South Africa in the first quarter of 2019.

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ASSOCIATION OF THE MONTH

SADFIA – Ensuring the future of Trade Testing for the Diesel Fuel Injection Technician SADFIA represents the Diesel Fuel Injection Industry, a small, highly specialised sector of the Motor Industry whose main function is the repair and servicing of diesel fuel injection systems fitted to diesel engines

Chris le Roux SADFIA chairperson

T

hese diesel engines are generally fitted to earth-moving equipment, highway trucks, stationary engines and passenger vehicles and members of SADFIA participate in an inter-industry warranty system on repair work performed by them, and they subscribe to a code of ethics and repair classification system that governs warranties.

24 - OCTOBER 2018

The RMI New Thinking Model Since the implementation of the RMI NTM or New Thinking Model in July 2017, SADFIA was grouped with similar remanufacturing associations, which have become known as RMI REMAN Cluster, which includes ERA, SADFIA and ACRA. The New Thinking Model has been embraced, and a very impressive Annual Report was produced which detailed all the projects, both those that are underway and those that have been completed. The RMI REMAN Cluster has grown into a unit and is stronger than ever before and moving

with focused momentum towards positive change and a better business atmosphere among the ERA, SADFIA and ACRA sectors. It made perfect sense to cluster these associations together due to their shared industry aspects, and has proved to be very successful. These three associations will continue to operate and grow together as a unified body under the auspices of the RMI. Subsequently, future meetings, projects and communications will be grouped together allowing the targeting of a greater and more influential audience.

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Photos courtesy Bosch Trade Test Centre

SADFIA on the forefront of breaking Trade Test barriers During the RMI REMAN Cluster Annual General Meetings in 2017, as well as on numerous occasions before, the need for an industry resolve regarding the scarcity of trade testing facilities for the Diesel Fuel Injection Technician in South Africa was identified and made a priority of SADFIA. SADFIA has engaged with the relevant stakeholders since the implementation of the project, and has made significant progress. The SADFIA office and NEC is currently collaborating with the National Artisan Moderation Body (NAMB), the Education Training Quality Assurer (ETQO), the Quality Council for Trades and Occupations (QCTO), Robert Bosch SA and MerSETA in order to solve the issue of the scarcity of these tradetesting facilities. Engagement with the above-mentioned stakeholders has identified that there is most certainly a critical scarcity of Trade Test centres catering for trade-testing Diesel Fuel Injection technicians.

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Attie Serfontein, Director: REMAN Cluster: ERA, SADFIA & ACRA

SADFIA believes that Pump rooms are positioned to facilitate Trade Tests and should be considered as an option to solving this problem, as SADFIA pump rooms, along with industry, spend large amounts annually on equipment, and a trade-test facility for testing apprentices in the Diesel Fuel Injection Trade is of critical importance. It has also been identified that there is a bottleneck of apprentices waiting to do their trade test for the current qualification in a time when there is a high demand for qualified personnel.

This matter was discussed at the last RMI Reman Cluster NEC meeting where an action plan was formulated. A meeting was set up with industry and stakeholders to find the best possible approach for SADFIA and the industry at large. These discussions led to a partnership with Bosch who shares the concern and who is very capable and well equipped to become an Accredited Trade Test Centre through QCTO, ETQO and NAMB. Bosch subsequently applied for the accreditation of the Trade Test Centre – in

OCTOBER 2018

25


ASSOCIATION OF THE MONTH

terms of the Low Pressure Trade of the current curriculum and Trade Test. The accreditation takes approximately two to three months, and is now very near completion with internal and external moderators already being identified by Bosch and the industry. The RMI REMAN Cluster: ERA, SADFIA and ACRA, together with the SADFIA NEC, is excited about this new endeavour as it showcases what can be achieved when an industry works together. There is still a lot of hard work that needs to go into this project, and we will all have to continually play our part to provide the industry with a resolution. Death of the Diesel - courtesy Dave Stalker (SADFIA Consultant) There are various reasons and issues why the diesel engine is under threat, particularly in Europe but also in the USA, and it is inevitable that this eventually spreads to Asia and other countries. The key reason is the pollution effects from NOx and PM (soot) from diesel engines that do not meet the required EU exhaust emissions levels of the

26 - OCTOBER 2018

Automotive Euro 6 & 7 and City Pollution standard. Europe is concerned over pollutionrelated health issues and soot formation on buildings in the major city limits. Germany, France and the UK are particularly affected, and pressure groups are targeting Governments, City councils and OEMs to reduce and meet pollution emissions levels.

OEMs announcing cessation of diesel engine production from 2020 onwards, with a shift in focus to hybrid and electric vehicles. It will affect SA in the coming future, but I believe at a more gradual pace, as our pollution is primarily caused by industry and not automotive. A major potential issue is how this trend will affect employment and the employee.

Some cities in EU are considering the banning of diesel vehicles, and soon we will see how and when. This has led to a marked reduction of new diesel vehicle sales in EU, with several

Meet the RMI – SADFIA (NEC) National Executive Committee Mr Chris Le Roux - SADFIA NEC Chairperson (and KZN Regional Chairperson) Mr Bevan Ras - SADFIA KwaZulu-Natal Regional Vice-Chairperson Mr Dirk Du Plessis - SADFIA NEC Vice-Chairperson (and Western Cape Regional Chairperson & Turbocharger Representative) Mr Louis Lichtblau - SADFIA Highveld Regional Chairperson Mr Johan Botha - SADFIA Highveld Regional Vice-Chairperson Mr Cedric Higgins - SADFIA Eastern Cape Regional Chairperson Mr Clive Louw - SADFIA Free State & Northern Cape Regional Chairperson Mr Marc Henwood - SADFIA KwaZulu-Natal Regional Committee Member & Turbocharger Representative Mr John Bamber - SADFIA KwaZulu-Natal Regional Committee Member

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E X CLUSI VE RA T ES AUGUST 2018 -

27


TRAINING

Infrastructure Specialisation A pilot programme to re-align artisan training with industry has been launched, says Schalk Burger of Creamers Engineering News

T

he Centres of Specialisation pilot programme has been launched by the Department of Higher Education and Training (DHET) to develop a focused and industry-led apprenticeship structure for 13 priority professions needed for infrastructure development. The objective is to test the effectiveness of direct private-sector involvement in the training of artisans to ensure that up-to-date training, which fulfils the necessary practical experience requirements of their qualifications, is provided. “This will be supported by the Quality Council for Trades and Occupations’ (QCTO) trade qualifications as a South African adaptation of the dual-system apprenticeship models used in Germany, Switzerland, Austria, Japan and India. Our trade-partner countries, as well as the European Union, have provided detailed input for the programme,” says

28 - OCTOBER 2018

DHET Special Projects Unit Centres of Specialisation head Adrienne Bird. The 13 trades form part of the 94 technical trades that were identified as necessary for the roll-out of the 18 Strategic Integrated Projects (SIPs) under the National Infrastructure Plan. The focus on trades in high demand aims to ensure that the strategic projects of government will be constructed and maintained using skilled South African artisans. Twenty-six existing technical and vocational education and training (TVET) colleges will provide specialised training in one or more of the 13 trades and will manage the practical training of students at private industrial companies. A centre of specialisation is a department within a public TVET college campus dedicated to training quality artisans in sufficient numbers in partnership with employers to meet the needs of the SIPs and development projects, explains Bird.

The programme is specifically aimed at capacitating the TVET colleges to produce the quality and quantity of artisans required, she emphasises. “Quality standards and quantity targets are to be set for each trade which are to be attained over the lifespan of the Centres of Specialisation Programme that will run until 2022. The selected colleges will be provided with resources to upgrade workshops and equipment to deliver the training effectively,” states Bird. Centres of specialisation will implement new trade qualifications registered on the National Qualification Framework by the QCTO. These new qualifications have been developed to overcome the historical spread of uneven sector education and training authority (Seta) trade qualifications, and provide one national standard for each trade that is easily understood in the labour market.

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“After the 13 trades were identified, we approached industries and their associations as key partners, and were told that the skills the colleges produce do not meet industry norms. We approached all the industry associations to work with us to build the capacity of the colleges and accelerate how we produce these skills,” she says. The Steel and Engineering Industries Federation of Southern Africa, the Retail Motor Industry, the Institute of Plumbing South Africa and the Southern African Institute of Welding (SAIW) are the first four industry associations participating in the programme. APPRENTICESHIPS The DHET is working with the South African Qualification Authority and industry partners to identify employers near the centres of specialisation colleges that are willing to provide apprenticeship positions for the students. “Fortunately, we had many more expressions of interest – more than 1 000 – to take in apprentices than we have students in this first phase of the programme,” says Bird. At this stage, the DHET is focusing only on 26 colleges, but hopes to roll out the artisan apprenticeship model across the country, as well as to new colleges and trades in time, if the programme is successful. The model will motivate industry stakeholders and employers across the public and private sectors to partner with TVET colleges and build a quality apprenticeship system, she adds.

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“Through these partnerships and the quality of vocational education and training provided, the DHET hopes that society’s confidence in the TVET sector will grow and that they will become institutions of choice for students and partners of choice in training for industry employers. The DHET is appointing two facilitators for each college and is working to train the trainer,” details Bird. Retail Motor Industry Organisation (RMI) national training director Louis van Huyssteen says skilled artisans are crucial for South Africa to address its development. RMI members are encouraged that the theory and practical will be delivered at the colleges and the workplace experience component that will happen at individual workplaces. Employer members participating in the programme will benefit from South African Revenue Service tax rebates, incentives, and a return on investment if they employ an apprentice, he adds. The centres of specialisation model ensures the apprentice is in the employ of the company for a full three years before qualifying, increasing the possibility of employment and uptake post qualifying.

give opportunities for industry input. Further, each TVET college will have a structure consisting of employers, college staff, management and occupational team members to ensure the project delivers the results as envisaged by DHET and the industry, he states. FUNDING Crucially, the training programme, which includes the apprenticeship periods that students spend under the tutelage of a qualified artisan, is funded by the Setas. The apprentices are neither employed by the companies in which they complete their work experience, nor are they guaranteed a job afterwards. However, they will have up-to-date and first-hand experience of operating in the industry, and this boosts their chances of securing employment. The higher quality of education and skills that the artisans have because of their workplace experience will enable them to enter a work environment directly and contribute fully and effectively, explains Bird.

“Industry’s demand for qualified artisans is such that the newly-qualified artisan will get appointed to a vacant position by the same employer or another employer,” he added.

“We have 780 confirmed grant commitments from Setas, meaning there is a grant for every contracted apprenticeship in the programme. The National Skills Fund has set aside R150-million to support the colleges to ensure that they are up-to-date and ready,” Higher Education and Training minister Naledi Pandor said in March.

The frequent interaction between workplace and provider in the dualsystem methodology will support and

“We want to use fiscal funds to pay for the theory and the simulated practical components, while the levy continues

OCTOBER 2018 -

29


TRAINING

to fund the employer grant. Further, partnerships with the private sector in this practical space will be considered and, if agreed, funded. This will mean your tax will be working harder for you as they will be funding programmes that meet your needs.” The pilot project is highly strategic, and the department will roll it out incrementally to other trades and colleges at system level when its monitoring and evaluation is done, she said. INDUSTRY-READY The industry associations said their members welcomed the initiative and the focus on improving the colleges to produce the skills that industries need, although there is some hesitation among members to support another industrial training initiative. Southern African Institute of Welding (SAIW) business development manager Etienne Nell confirms that members welcomed the idea, but are still hesitant because the old learnerships were not removed more quickly and the economy is not favourable, with training remaining in the background. “There is a huge demand for highly skilled welders in South Africa, as well as worldwide, with the American Welding Society indicating in their annual report that there will be a shortage of 450 000 welding personnel in the US

30 - OCTOBER 2018

by 2023. There are many welders in SA, but they cannot get jobs with their current qualification because they have not been properly trained and trade tested,” illustrates Nell. The Centres of Specialisation project will deliver very highly skilled welders, with their qualification aligned to the International Institute of Welding guideline and, therefore, accepted in 58 countries, he adds. Currently all major projects in SA, like coal-fired giant power stations Medupi and Kusile use only imported welders, because of their high skill level. When a new apprentice exits this programme, they will have the required skill level and be suitable for employment in developing infrastructure, says Nell. However, a crucial difference is the inclusiveness of the process, involving the associations, colleges, academic experts, DHET and labour organisations to develop an effective and sustainable artisanal skills development model for South Africa, adds Van Huyssteen. “Employers are positive about the programme and specifically the integrated training of the dual system. This linking of the training provider and the employer is necessary to supply trained individuals for industry,” says the Institute of Plumbing South Africa national training manager Nick Joubert.

The water industry is an especially important industry, as it is directly linked to sanitation and healthy drinking water. Greater exposure to industry best practices, new technologies and skills used in the supply-side bulk water and demand-side consumption portions of the industry will broaden the knowledge of the apprentices and deepen the impact of artisan training across the industry, he says. Moreover, the industry has a key problem where many who work professionally in the water industry, particularly in the domestic market, are not qualified and have not completed their trade test. There is a need, beyond the centres of specialisation programme, to provide unqualified professionals with a means to access training, complete their trade tests and qualify to build and maintain the water infrastructure to minimum levels of standards and health and safety, says Joubert. An apprenticeship model might help to develop those working in the industry to gain the required qualification and competencies, he adds. “The model meets the requirements of industry. The welders’ curriculum was designed by Industry Members and the SAIW, hence, the NOCC-A21 welders’ curriculum aligns with international welding qualification standards. This programme will serve the market well for a very long time,” Nell concludes.

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SEPTEMBER 2018 -

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RMI UPDATE

Tech savvy consumers driving change in the automotive industry In almost every industry, we’re seeing the rise of the empowered consumer, and with technology-driven trends like electric vehicles, self-drive cars and predictive maintenance, the automotive industry is no exception

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oday’s consumers are more empowered than ever before, thanks to access to information available on the Internet. For example, when it comes to purchasing a new vehicle, many consumers conduct extensive online research and seek out peer-to-peer recommendations before narrowing their choice down to two or three models. While consumers still use dealerships to complete the purchase, research indicates that many South Africans are willing to conduct the entire car-purchase process online, including paying a deposit and arranging finance. “These trends are encouraging innovation across the automotive industry,” says Jakkie Olivier, CEO of the Retail Motor Industry Organisation (RMI). “We serve passionate consumers who want a more personalised

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experience and we’re seeing the hype around vehicle technology moving to other spheres of the industry.”

and servicing of new motor vehicles, which are usually carried out via a network of approved dealerships.

“Dealerships are and will continue to be an absolute necessity in the new vehicle buying process, however the role they play may be slightly different to what it has been to date,” says National Automobile Dealers’ Association’s (NADA’s) National Chairperson, Mark Dommisse.

Beyond the actual purchase of a car, technology plays a significant role in improving the customer experience when owners have their cars serviced. In an increasingly customer-centric world, consumers expect a certain level of service in all facets of life, including the servicing of their vehicles. In the automotive industry, websites and mobile apps can assist with this by offering a more connected and customised experience.

“Motor vehicles are highly regulated products that require stringent FICA regulations when being purchased. In addition, licensing, insurance, financing and periodic servicing and/or maintenance are specialist areas needing expertise and a lot of investment by the dealership owner,” continues Dommisse. Various laws and regulations govern the sale, financing

Today’s mobile apps offer the ability to streamline car care. They can connect to on-board vehicle computers, tell you everything from where the next petrol station is, to where the next road block is and what is the quickest route to

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work. In fact, many car manufacturers have developed smartphone apps that allow consumers to stay connected to their vehicles at all times, even if they’re in another city. Using these apps, consumers can start their vehicles remotely, set the climate control, view service diagnostics, set travel limitations and a host of other services. However, most South African consumers drive older vehicles that are not equipped with this technology. “Smartphone use is on the rise in South Africa, and there is already a selection of mobile apps that help consumers with their car management. There are three factors important to today’s empowered consumer: Time, convenience and cost. If the automotive industry keeps these three requirements top of mind, they can become an indispensable ‘passenger’ in South Africa’s vehicles,” advises Olivier. RMI will soon launch a mobile app of its own, aimed at connecting consumers to accredited RMI members. App users will also have easy access to specials offered by RMI members in their area. From a customer service point of view, RMI members will be able to use the app for training purposes, to connect with other RMI members and to access up-to-date RMI news. “RMI members are skilled automotive professionals who adhere to a strict code of conduct, so when using RMIaccredited businesses, consumers can be assured of value for money – competitive pricing, quality work and recourse for complaints. Our app will take the guess work out of locating a good partner for your vehicle care and will seamlessly connect you to your closest RMI member. Watch this space,” says Olivier.

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OCTOBER 2018

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TECH TALK

Putting a damper on things There’s more to suspension than meets the eye, says Jake Venter A car’s suspension system has to: • Provide a good ride while at the same time control body movement in such a way that the driver can retain full control. This means that the wheels must be able to follow the road profile as closely as possible without introducing any sudden jarring motion. • Ensure that the wheels respond to the driver’s input as accurately as possible. This means the wheels have to maintain their designed attitude with respect to the road surface as closely as possible, in spite of coping with any vertical movement. • Ensure that the vehicle responds in a desired manner to forces produced by the tyres during braking, accelerating

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and cornering. When seen from the side when a vehicle moves forward, the body dives during braking, squats during acceleration and when seen from any end it rolls during cornering. The suspension geometry must be designed to resist these motions. • Provide isolation from the highfrequency vibration induced by the tyre/road interaction to reduce the transmission of road noise. These requirements cannot be achieved in full measure on any suspension system with the result that any practical layout is a compromise.

Design Limitations Suspension design is heavily influenced by cost considerations, as well as development and testing time limitations. This means that previous designs are often used as carryover components, and many new designs may have a number of previous components. Weight, packaging space, reliability and robustness, maintenance criteria and ease of assembly all play a role when deciding which construction and layout to use. Dependant suspension Suspension layouts are determined by considerations such as whether it is for the front or rear of a vehicle, whether the

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wheels are driven or undriven, steered or unsteered, and whether there is an engine taking up suspension space or not. In a dependent system the wheels are linked by the suspension in such a way that the vertical movement of any wheel affects the movement of the other wheel to some extent. Such layouts are very common on heavy commercial vehicles at both ends, and at the rear on light delivery vehicles. They’re less common at the rear on rearwheel-driven passenger cars, but may still be found at the rear on front-wheel-driven cars. Such layouts are relatively simple in construction, very robust, and have the advantage for off-road use that upwards wheel movement does not reduce the ground clearance between the locating axle and the ground. Hotchkiss layout In this design the axle is mounted on fore-and-aft leaf springs which allow a certain amount of up-and-down movement but very little sideways movement. The springs are pin-jointed to the chassis at the front, and to a pivoted link at the rear to accommodate the lengthening that occurs when the spring is forced to move upwards. These spring units are not able to control the axle while braking or accelerating, but this defect can to some extent be controlled by using suitable trailing arms and transverse locating links. Trailing link layout Many modern systems control the axle movement by employing robust trailing arms that enable the use of coils springs instead of leaf springs. Sideways control is achieved by using a transverse locating rod or angling the upper links. Semi-Dependent Suspension These layouts are usually found at the rear of front-wheel-driven cars, in combination with coil springs. The wheels are mounted on trailing arms that are welded to a transverse beam that can twist torsionally. This allows each wheel to move up or down a small amount without affecting the other wheel.

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Independent Suspension Here the movement of each wheel has no effect on the other wheel. This form of suspension came into use on passenger cars in the Thirties, because dependent beam axles could not cope with some of the wheel vibrations front wheels were prone to. MacPherson strut Earle S MacPherson developed this typical front suspension unit while working for General Motors in Detroit, but did not use it. MacPherson consequently left GM and joined the Ford motor company. They liked the design and used it initially on the 1950 Ford Consul and Zephyr. Its major advantage, and the reason it’s almost universal at the front on modern passenger cars, is the fact that the MacPherson layout feeds the suspension forces into the car body at a point that’s usually above the wheel height where a unit-construction body is strong enough to cope with the stress. Most other layouts feed the forces in at a lower point where extra reinforcement has to be provided.

The strut consists of a shock absorber, surrounded by a coil spring, attached to the wheel hub at the bottom, and a swivel bearing at the top at such an angle that it forms the required steering axis inclination. The swivel bearing is mounted underneath the front mudguard at a reinforced location. The MacPherson strut is unique since it is the only strut that swivels with the wheel as it moves from left lock to right lock. This layout eliminates the usual upper control arm and thus allows for more width in the engine compartment. It is a relatively simple construction but has some disadvantages. Replacing the shock absorbers requires that the suspension be taken apart. The top mounting point into the body tends to make it easy for road noise to reach the interior of the vehicle. Double wishbones A few cars and some light commercial vehicles – especially those that have a separate chassis – still use a front suspension construction that have upper and lower wishbone-shaped links (known in the USA as A-brackets) that locate the wheels. Suspension is usually by coil, but Toyota employs torsion bars on their 4WD vehicle-one-ton trucks because the coil spring is in the way of the front drive shafts.

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TECH TALK Trailing arms This layout is used mainly at the rear, for front- or rear-wheel-drive vehicles. A trailing link is one that swivels at the front so that when a car moves forward the link rotates in an arc so that the rear end moves in a circle. It can be used with any type of spring, but coils are usually preferred. Swing axles This design dates from 1903 and was later adopted by Dr Porsche for the Volkswagen Beetle, while Mercedes-Benz used this layout on many of their models. The Beetle and some early Mercedes models had one universal joint on each side of the differential unit so that the wheels swivelled in an arc, giving a very compliant ride, but exhibiting excessive camber changes. Most present layouts employ four universal joints – one at each wheel and one on each side of the differential to keep rear wheel movement nearly vertical. Semi-trailing arms This layout is a cross between a pure trailing arm and the swing axle. It allows controlled wheel movement without excessive camber changes. The geometry can be designed to provide small amounts of rear wheel steering to improve handing. Multi-link suspension Many modern luxury rear-wheel-driven cars employ a multi-link rear suspension system to control the wheel movement to within very fine limits. Four links are often used, but some manufacturers use five links to exercise even more control. SPRINGS Leaf springs These are at least 300 years old and are still used on horse-drawn carriages, trains, commercial vehicles, and at the rear on inexpensive family cars. In earlier designs the high inter-leaf friction affected passenger comfort, but many modern leaf springs have single tapered

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leafs that eliminates this problem. These spring units are very robust and have the major advantage that a well-equipped workshop can repair them or even make new spring units. Coil springs Here the springing effect is obtained by the twisting that occurs in the metal when the spring is compressed. These springs combine well with most spring layouts, but sometimes are awkward to accommodate when room has to be found for front-wheel driveshafts. Coils are a compact and lightweight springing medium that require little maintenance and have the perfect shape for mounting the shock absorber inside. The spring rate (load/movement) can be varied by reducing the coil spacing at one end or varying the coil diameter. Torsion bars These usually employ a straight twisting steel rod to supply the resistance to movement, but the Volkswagen Beetle used the twisting of long flat steel plates to achieve the same effect. The stiffness is determined by the rod diameter as well as the length. Many torsion bar layouts have an adjustment to vary the pre-loading. Air springs This system is popular on tour buses, and has been used on luxury saloons.

The usual coil spring is replaced by a flexible air container that is connected to an air pump. The system is controlled electronically to supply the pressure required by the vehicle load and the road conditions. Hydropneumatic springs This system was first introduced by CitroĂŤn. Here the springing effect is produced by a constant mass of inert gas, like nitrogen, in a variable volume enclosure. Wheel movement moves a piston that transmits the motion to the fluid, and this compresses the gas via a flexible diaphragm. As the volume decreases the gas pressure increases.

Jake Venter has worked as a mechanic, as an engineer in an engine assembly plant and as a lecturer, but now prefers journalism.

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AVAILABLE FROM SELECTED www.automobil.co.za www.pia.co.za

STORES AND OTHER LEADINGSEPTEMBER SPARE2018 SHOPS - 37 CH6702


LABOUR

The Deeming Provision judgement delivered The long-awaited judgement in the Assign Services matter, on the controversial deeming provision, saw the light on 26 July 2018, when the Constitutional Court ruled on the matter

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he correct interpretation of Section 198 A(3)(b), which is central to the dispute, required to be determined. The Court was further concerned with whether the deeming provision resulted in the sole employer relationship between the worker placed by the labour broker and the client or, whether the deeming provision resulted in the dual employment relationship between the placed worker, the labour broker and the client. Section 198 A(3) reads as follows: 3) For the purposes of this Act, an employee: (a) Performing a temporary service as contemplated in sub-section (1) for the client is the employee of the temporary employment services in terms of section 198(2); or (b) Not performing such temporary service for the client is: (i) Deemed to be the employee of that

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THE CCMA In 2015 the matter was referred to the CCMA for adjudication. Assign services argued that after the 3 (three) month period lapsed, the deeming provision did not terminate any commercial agreement between the client and the TES (Temporary Employment Service). The employment relationship between the TES and the placed BACKGROUND workers was also not terminated, resulting in In 2015, Assign Services, a temporary a dual employer interpretation. They argued employment service (TES), placed 22 the dual employer interpretation offered workers with Krost Shelving and Racking greater protection to placed workers. (Pty) Limited. Some of the employees were members of NUMSA. These placed However, NUMSA argued that the dual workers provided service to Krost which employer interpretation was incorrect service was for a period exceeding and would lead to great uncertainty three months and was on a full-time for the placed workers and that these basis. Assign services were in support vulnerable workers will be exploited of a dual-employer relationship, whilst as a result of the interpretation. Numsa, in turn, was of the opinion that the sole employer relationship The Commissioner ruled that the sole was the correct interpretation. employer interpretation was correct as client and the client is deemed to be the employer; and (ii) Subject to the provisions of section 198B, employed on an indefinite basis by the client. To provide context to this article, it is important to have regard to the history and detail of the Assign Services matter.

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the dual employer interpretation will cause a vast number of problems for the workers – a group that the LRA aims to afford greater protection. THE LABOUR COURT After the award made by the Commissioner, Assign Services approached the Labour Court seeking to review and set aside the award. They argued that the Commissioner committed material errors of law. Moreover, Assign Services held the view that section 198A should be read together with section 198(2). Section 198 (2) provides that “a person whose services have been procured for or provided to a client by a temporary service is the employee of that temporary employment service, and the temporary employment service is that person’s employer”. The counter-argument advanced by NUMSA was that if section 198A (3) (b) is triggered, section 198(2) has no application to the affected employees. The Labour Court found that the Commissioner indeed committed material errors of law. It held that the employment contract between the TES and the employee was the correct one, and that the TES remained the employer, despite any new statutory relationship. The Labour Court took a whole different approach from the Commissioner and found that the dual employer interpretation would afford the vulnerable employees the greatest protection. THE LABOUR APPEAL COURT During 2016 NUMSA applied for leave to appeal and brought its notice to appeal to the Labour Appeal Court (LAC). The Court, after it heard all parties’ arguments, held that the sole employer interpretation was the correct interpretation in circumstances where it promoted the objectives of the LRA. It also referred to the definition of temporary service in section 198A (1) and

remarked that only employees rendering a service that was truly temporary in nature should be employed by a TES. Any employee who is employed for longer than three months, is no longer performing a temporary service and should therefore be considered the employee of the client and consequently the client becomes the sole employer (Section 198A(3)(b)). THE CONSTITUTIONAL COURT Assign services applied for leave to appeal to the Constitutional Court. The Constitutional Court was put to task in determining the correct interpretation of section 198A(3)(b)(i). It was their argument that the LAC’s judgment banned labour brokers (temporary employment services). They further indicated that serious consequences would arise for the South African labour market should such interpretation be upheld. The Constitutional Court held that section 198A must be read together with the right to fair labour practices, section 23 of the Constitution as well as the purpose of the Labour Relations Act as a whole. The Court held that when reading the LRA, each provision should create “clear and precise parameters” to enable both employers and employees to meaningfully engage in labour relations. The majority of the Constitutional Court found that for the first three months the TES will be regarded as the employer, thereafter the client will be deemed to be the employer of the employee. This will give rise to the sole employer interpretation. The majority further found with reference to the language used by the legislature in section 198A(3)(b) that the language is plain and when interpreted in the context that it is supportive of the sole employer interpretation.

distinguishes between employees employed by the TES for temporary work and those deemed to be employed by the TES’s client where the work is not temporary”, if this was to be interpreted as the TES becoming one of the employers” it would “strain the language used”. The logic was to say that if the legislature intended for the client to become a joint employer, the legislature could easily have made provision for the word “also”. Section 198A states that the section does not apply to employees who earn in excess of the threshold that is determined by the Minister from time to time. The threshold is currently set at R205 433-30 per annum THE WAY FORWARD It is important to note that the judgement should not negate the role of TES in the South African labour law context. The amendments that were made to the LRA were to ensure that greater protection was given to employees who were placed by the TES. The purpose was not to exclude labour broking, but to ensure proper regulation thereof. Labour Brokers have a place to operate in law. The judgement serves to restrict the operation of the TES. The TES is required to ensure that the services they offer to clients are indeed temporary in nature and in circumstances where the period of three months is exceeded, a justifiable reason should exist for the non-compliance to the three months as set out in the LRA.

The Court further held that a “plain reading of section 198(3)(b) clearly

Douw Breed is a director at Barnard Incorporated Attorneys, Centurion.

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LEGAL EAGLE

Understanding the Shifren clause Shifren - is the non-variation clause variable? Andries Stander investigates

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n the matter of SA Sentrale Ko-op Graanmaatskappy Bpk vs. Shifren and Others 1964 (4) SA 760, the standard non-variation clause, known as “the Shifren clause”, was recognised by the Supreme Court of Appeal. The Shifren clause is an entrenchment clause and in principle binds parties to the provision that a written contract may only be amended if certain formalities are complied with. Mostly, in practice, amendments are only allowed if effected in writing and signed by all parties to the contract. Although the Shifren clause is included in most commercial contracts in circulation today, the principle underlying the clause has been subjected to legal challenges and judicial deliberation. In the matter of Brisley

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vs. Drotsky 2002 (4) SA 1 (SCA), for example, the Supreme Court of Appeal extensively deliberated on whether or not the contractual inclusion of the Shifren clause is against public policy. In the Brisley judgment it was reiterated by Judge Cameron, as he then was, that all South African law should comply with the provisions of the Constitution and that any law inconsistent therewith, including the law of contract, is invalid. The judgment also reiterated the duty on the court to promote the spirit, purport and objects of the Bill of Rights when developing the common law. In this regard the learned Judge recognised that, there may be circumstances where an agreement will not be enforced because the object it seeks to achieve is

contrary to public policy, Furthermore, it was stated that the values of dignity, equality and freedom require the courts to employ perceptive restraint when considering whether the enforcement of a contract should be declined. This, said the learned Judge, is because contractual autonomy is part of freedom and informs the constitutional value of dignity. In conclusion, it was stated by the learned Judge that: “The Constitution requires that its values be employed to achieve a careful balance between the unacceptable excesses of contractual freedom, and securing a framework within which the ability to contract enhances rather than diminishes our self-respect and dignity. The issues in the present appeal do not imperil that balance.”

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In 2010, the full bench in Nyandeni Local Municipality vs. Hlazo 2010 (4) SA 261 (ECM) held that: “Public policy (as underpinned by constitutional norms) dictates that the Shifren principle, which holds that a contractual nonvariation clause is valid and effectively entrenches both itself and all other terms of the contract against oral variation, should be relaxed so as to bar a party from relying on it where it was invoked for purposes other than the vindication of legitimate rights.” In this matter, the essential question the Court had to answer was whether the enforcement of the Shifren principle is contrary to public policy. In arriving at the aforesaid question, the Court firstly recognised the general rule that, in addition to the requirement of fraud or deceitful conduct, there may be circumstances under which a contract will not be enforced because it is contrary to public policy. The Court distinguished between the situation where a term of a contract is challenged as a result of it being unconstitutional, and where it is challenged as a result of it being in conflict with public policy. In the latter case, the court found, the concept of public policy “is informed by the underlying values and principles of the Constitution and it is in this sense only that the constitutional order is relevant”, whereas in a direct constitutional challenge the constitutional right must first be identified and then be found to be limited by “a law of general application”. This distinction may seem over technical, but it is important as the test in each of the scenarios will differ.

In order to answer the question as to whether the enforcement of the Shifren principle is contrary to public policy, the court had determined the content and meaning of the concept of public policy. In doing so, the court inter alia referred to the judgment of the Constitutional Court in Barkhuizen vs. Napier 2007 (5) SA 323 (CC) wherein the following was expressed: ‘What public policy is and whether a term in a contract is contrary to public policy must now be determined by reference to the values that underlie our constitutional democracy as given expression by the provisions of the Bill of Rights. Thus a term in a contract that is inimical to the values enshrined in our Constitution is contrary to public policy and is, therefore, unenforceable.’ The court stated that the values enshrined in the Constitution do not only include human dignity, equality and fairness, but also the substantive right to fairly resolve disputes. Although, as the court found, the concept of fairness “runs like a

golden thread through the Bill of Rights”, it is used as an adverb or adjective and is not an independent or substantive constitutional right. As a result, a contract does not automatically offend public policy just because it may operate unfairly. The court was of the opinion that, although a contract term itself may not be contrary to public policy, it may have such effect in particular circumstances when it is used to escape the consequences of fraudulent conduct. Accordingly, the test is to determine public policy at the time a court is requested to enforce the relevant term. Although the Shifren principle, is firmly entrenched in our law, in appropriate cases the demands and the requirements of public policy may justify a departure therefrom. The effect hereof is that, although the parties may be under the impression that a written contract may not be varied through an oral amendment, the contrary may be true if the enforcement of the non-variation clause will be against public policy.

Andries Stander is a Director at Barnard Incorporated Attorneys in Centurion. Pretoria. RMI4Law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4Law, call 0861 668 677. Legalex (Pty) Ltd, registration number 2003/003715/07, is an authorized Financial Services Provider (FSP 5277) and underwritten by Guardrisk Insurance Company Limited (FSP 26/10/75) David Furlonger

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OCTOBER 2018

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INDUSTRY NEWS

Government and Motor Industry close to finalising SA Automotive Masterplan

Looking towards 2035, the challenges, disruptions and requirements of the South African automotive industry were discussed at the recent NAAMSA Automotive Conference. Reuben van Niekerk reports

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he Department of Trade and Industry (dti) and the motor industry are now close to finalising the South African Automotive Masterplan which will come into effect in January 2021 and run until 2035. This was the message given by Lionel October, the Director General of the dti, addressing delegates at the NAAMSA Automotive Conference, which was held at the Kyalami Grand Prix Circuit and Conference Centre.

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The well-attended NAAMSA Automotive Conference, in association with the Innovation Group, had the theme, “Paths to the Future” and was held in the AutoTrader Tech Zone as it formed part of the first day’s programme at the 2018 Festival of Motoring.

He stressed the importance of the automotive industry as a player in the SA economy, where it formed half of the annual manufacturing input. He said that increasing industrialisation through more local content and higher production volumes were important components of the Masterplan.

Lionel October was standing in for Dr Rob Davies, the Minister of Trade and Industry, who was unable to attend this important event. October, who has been the Director General at the dti since 2011, said that the dti and the industry were “99% there” in getting agreement on the Automotive Masterplan which is due to replace the Automotive Production and Development Programme.

“Higher production volumes result in economies of scale, and improve an industry’s competitiveness, which impacts on its ability to localise components, with 60% local content being a Masterplan target,” explained October. “It is therefore very important that we hit the point where we are producing more than a million vehicles a year in South Africa, rather than the current level of about 600 000.”

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Andrew Kirby; Chairman of NAAMSA and President and CEO of Toyota SA Motors; Lionel October, Director General of the Department of Trade and Industry; Jeffrey Dinham, Economist at Econometrix

He said another key component of the Masterplan was to speed up transformation of the industry with special focus on creating viable black-owned companies in the supply chain, as well as the promotion of skilled black employees in the ranks of senior management at major manufacturers, with a score of 4 on the manufacturers’ scoreboard for Broadbased Black Economic Empowerment (BBBEE) being the target. Local empowerment in companies operating in SA are a major pillar of BBBEE. So, last year the “Big 7” in the SA vehicle manufacturing industry proposed creating a transformation empowerment capital fund of R3.5-billion over a 10-year period as

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the equity equivalent of having empowerment shareholders in the whollyowned subsidiaries of multinational companies. The fund will be used to facilitate the entry of black companies and industrialists into all aspects of the local automotive value chain, including component suppliers and dealerships.

Andrew Kirby, President and CEO of Toyota South Africa Motors and NAAMSA president, responded by saying that NAAMSA endorses the proposed masterplan which has looked at the automotive industry as a whole and sees it as a target to work towards between 2021 and 2035.

If this proposal is given the green light by government, then the industry should be able to achieve a level 4 on the BBBEE scorecard.

Kirby added that the SA auto industry is, and will be, experiencing the highest level of disruption since 1995 when the market consisted of 20 brands. That number has now grown to 59.

The dti director-general concluded his address by stressing the importance of the automotive sector taking all possible advantage of continental trade agreements to increase exports into Africa.

These disruptors will include technology, changing customer behaviour, and the SA business environment. On the other hand, new challenges will include the ability

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INDUSTRY NEWS

Andrew Kirby at the 2018 NAAMSA Automotive Conference

to respond to market changes, optimising regional integration and establishing infrastruture that allows the automotive industry to be seen as an enabler. “Currently the car park translates to 176 cars per 1000 people, which is why I believe a big portion of growth will be in the development segment of the market with affordable, yet practical solutions” he said. “Millenials prefer ride-sharing, a phenomenon that can be seen by the decline in new drivers licence applications in Europe. In contrast Afrillenials are focused on success. They are playing asset catch-up, and want to own cars,” he said. Looking at Africa, Kirby commented that new sales in Africa could reach 2 million in the next 5-10 years. The opportunities for South African manufacturers include trade measures, the geographic advantage, and cars built for Africans by Africans. A major hurdle is, however, the fact that Africa is still flooded with used cars from Asia, and African countries need to follow the dti’s lead on what was done in SA to stop this influx.

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Kirby also noted that the automotive industry requires investment in infrastructure. “Regulation is required to introduce cleaner fuels, as the lack of clean fuels is restricting the adoption of advanced engine technology. There is a cost disadvantage to this due to diverse market requirements,” he said.

of GDP. However, the combination of direct, indirect and induced impact equates to R312 billlion, or 7,2% of GDP,” said Dinham.

Currently, only 21% or 154 000km of the South African road network is tarred, and there are plans in place to expand this with another 140 000km, which is necessary, as increasing levels of congestion will retard the growth of motorisation.

“The auto industry is the fourth-largest contributor to SA manufacturing sales, and employs 468 502 individuals, making up 2,9% of all formal and informal employment. If one looks at the upstream and downstream effects of the auto manufacturing industry, the number increases to as much as 900 000,” he said.

In conclusion, Kirby stated that is is certainly not business as usual. “The Masterplan is clear, and in order for it to be a success all the role-players, including component manufacturers, OEMs, dealers, retail, government and labour unions, need to work together.” Jeffrey Dinham, an Economist from Econometrix, delivered an insightful presentation on the importance of the SA Automotive Industry and its contribution to the SA automotive industry. “The SA Automotive Industry has a direct impact of R104 Billion, or 2,9%

The impacts are far reaching. For example, 8% of all catering business is thanks to the auto industry.

“The automotive industry is South Africa’s fifth-largest exporter, contributing to 16,2% of SA exports, and our catalytic convertors satisfy 10% of the global demand,” he said. Dinham concluded by painting a rather grim picture of what would happen if the SA automotive manufacturing industry follows in the footsteps of Australia and collapses. “588 452 jobs would be lost, income from taxes and import duties would decline by R37,4 billion, and trade deficit would increase by R75 billion.”

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Ms Lebogang Letsoalo is a Supply Chain coach and currently a Director of Sincpoint, an organisation focused on sustainable supply chain coaching and optimisation solutions. The new merSETA Chair has 18 years experience in different facets of the supply chain fraternity, including in the energy, chemicals and mining industries. She is a former Vice-President of Supply Chain in Sasol and has held executive roles in projects development, capital procurement and other roles in Eskom, DeBeers, Fluor and IBM. In 2008, Ms Letsoalo was profiled and cited in the Financial Mail as one of the top 10 most inspiring women in State-Owned Entities. She has also been nominated for the Global Business Leadership Award - International Conference on Gender & Sustainability - New York 2017. Among her qualifications are a Diploma - Purchasing; Btech Logistics; and a Masters of Business Administration. She is currently enrolled for doctoral studies. She is a Director at Black Industrialist Group (BIG) and also the Founder and Chairperson of African Women in Supply Chain Association (AWISCA), the first and only association in southern Africa focusing on functional mentorship and coaching in supply chain to build skills and capacity in the sector. She is a member of the Advisory Committee of Universities to ensure alignment between industry requirements and Supply Chain curricula offered by universities. Ms Letsoalo provides supervision for MBA and MBL students at UNISA

The merSETA welcomes its new chairperson, Ms Lebogang Letsoalo WE CARE

It’s about caring for people we render services to

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WE BELONG

It’s about working together with colleagues

merSETA Social

WE SERVE

It’s about going beyond the call of duty

@mersetasocial

LEADERS IN CLOSING THE SKILLS GAP


INDUSTRY NEWS

Ferrari F40 eye candy at the VCCM Conference

Ferrari Berlinetta Boxer at the VCCM Conference

Finding value in the SA Classic car market Experts impart insider knowledge at the second HAGI VCCM conference, held recently in Sandton

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peaking at the recent HAGI VCCM Conference at The Capital On The Park hotel in Sandton, Brian Bruce was a keynote speaker at this second annual event, which drew classic car collectors from all around the country.

As an example of the type of (automotive) integrity he is after, Bruce cites the case of one of his favourite cars, a 1934 Jensen Ford prototype, one of three ever produced, and one of only two that exist today.

“Integrity is the most important single aspect of buying a classic car,” said Brian Bruce, a qualified civil engineer and custodian of one of the major classic car collections in the Southern Cape.

“This car has total integrity. Everything about the car is correct. It came with all its original correspondence, invoices, documentation, and even advertising material from 1935, when the production Jensen Ford was produced.

“Classic or vintage cars can generally be described as artefacts, rare objects from the past that are hand-made. And in the acquisition of these artefacts, the process we follow needs to be rigorous.”

“This car for me defines the concept of integrity, as regards to old motor cars. It is not in concours condition, but it is mechanically exceptional and original. Once a car has been modified, you cannot re-install integrity back into a car.”

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He explained that he was always leery of buying a car that was purportedly “restored”, revealing that two close associates had extensive restorations on their classic British sports cars undertaken, and were then forced to have all the work redone, after the initial poor restorations totalled in excess of R1-million. Bruce refers to the oft-repeated saying in classic car circles, “that we are mere custodians of these artefacts.” But he pointed out that in a changing world, enthusiasts would have to accept that certain classics would inevitably be modified and updated with modern mechanical elements. “We refer to this process as repurposing, and it is gaining increasing popularity in

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A 1913 Buick at the VCCM Conference

Classic Car Africa editor and publisher Stuart Grant revealed that his monthly enthusiast publication tended to focus more on the human interest side of the classic car field. And he also imparted some interesting facts regarding the most popular editions of his magazine. “Interestingly,” said Grant “despite the fact that we have had cover pictures ranging from American muscle cars to exotica like Dinos and Lamborghinis and Ferraris, the best-selling magazine to date featured a humble 1970 Renault Gordini, and attracted no less than 46 letters from readers, a record for a cover story.” Tommy Roes, Conference Organiser

countries like America. It enables younger people to drive a classic with all the design beauty of the original, but with the reliability of a modern car.”

“Attendees are bound by their love for old and collectable cars that goes far beyond mere monetary value.

The focus of the conference was accented on the economic benefits of owning a classic car as a valuable, fast-appreciating asset. Organiser Tommy Roes, however, emphasises a key focus of VCCM is value, and value drivers in the local context, which is a much broader conversation.

“We try to create a balance by addressing various aspects that influence value in a South African setting. Restoration, maintenance, storage, insurance, import/export and related subjects all play a major role in the financial aspect which cannot be ignored,” says Roes.

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Grant also opined that social media has played a big role in certain modest classic cars appreciating massively in a short space of time, citing examples of VW Kombis, Alfa GT Juniors and VW Beetles that have been the subject of massive social media exposure and corresponding huge price rises in the past three years. On the subject of realising big percentage gains on classic cars as investments, insurance mogul and classic car collector and race driver Paolo Cavalieri made an interesting case for classic racing cars as one of the best investments. Cavalieri’s

OCTOBER 2018 -

47


INDUSTRY NEWS

Delegates take a break at the well-attended VCCM conference in Sandton

credentials in the world of finance and motor racing are unimpeachable, having headed up Hollard insurance company through its intense growth phase, as well as having been involved in motor racing as a top driver for four decades. As befitting his Italian heritage, he is also a self-avowed “Ferrari nut” and has an extensive association with the Ferrari marque in this country, as well as in Italy. “If you look at the highest values realised internationally at recent auctions, some 50 per cent of them are racing cars,” said Cavalieri. “And the highest values were in fact returned by racing cars. So my question to delegates here today is this: why not consider a racing car as your next classic car investment?” Cavalieri pointed to our extremely rich racing heritage here in this country with players of world renown. He pointed to 1979 World F1 Champion Jody Scheckter, Ferrari F1 designer Rory Byrne and McLaren designer Gordon Murray as shining examples of what South Africa has produced on the global motorsport stage.

48 - JULY 2018

He also highlighted a racing Germanbuilt Zakspeed Ford Escort which won the Kyalami 1000 km race in the mid1970s, a replica of which was recently built in South Africa by the PiazzaMusso family, and made its debut at the recent Goodwood Festival of Speed. Expanding on the subject of race replicas, about a decade ago, Cavalieri embarked on a racing classic project that involved turning an existing collectable car into a race replica of a similar model, as produced by the factory in rare numbers a number of decades ago. Cavalieri set about the project with typical thoroughness, investigating its viability with both a local and a European perspective, and assessing its financial implications, not wishing to over-capitalise on the project. “It is fundamentally important to choose people with a good name in the business, because a car retains credibility when it was re-built or converted by a respected firm. The same obviously goes for both the mechanicals and the body work.

Paolo Cavalieri said with a smile that he was 50 years old when he started the project, and that he is now 60 years old and the car is only now nearing completion. But, he says, the whole journey has been worth it, and he plans to compete in both Europe and in South Africa with the car, in selected events. Gordon Massie is the Managing Director of ITOO Artinsure, a company that specialises in insuring all manner of collectables. Passionate about vintage photography and a keen collector of many categories, Scottishborn Massie has been in South Africa for the past 12 years servicing the local collector community and businesses. A key theme of his address was the subject of “synaesthesia” – the almost intangible sensory attraction of collectable assets – and how this should be addressed when it comes to insuring such assets. And, also, how the insurer should address such issues, as well as the appreciating nature of rare, collectable motorcars.

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RMI UPDATE

Festival of Motoring boasts record attendance The Festival of Motoring, held from 31 August to 2 September, proved bigger and better than ever before. The Kyalami Grand Prix Circuit hosted its third annual festival since 2016

Phil Cells from Pro Align Tech in association with Leaderquip

Phil Cells Pro Align Tech ; Noni Tshabalalala, MIWA Highveld Representative; Danelle van der Merwe, Brand & Communication manager; Hedley Judd, TDAFA, MPEA & MIMA Associational Director

Interaction with show goers, Raoul Spinola, National Representative NADA; Marcia Modiba, MIWA Representative Northern Region

T

he only national, industrysupported auto show, drew a record attendance of 67 218 visitors over the three public event days, with 27 motoring brands represented. Continuing its success from 2017, which saw 57 000 visitors through the gates, the 2018 Festival of Motoring provided a plethora of interactive motoring entertainment with even more additional lifestyle, education, track content and family-friendly activities. The broader appeal paid dividends, with visitor numbers increasing by 18 per cent. One of the major successes was the increased number of participating brands, with a variety of new and exciting models

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featured at the event. A consistent highlight of the Festival of Motoring since its inception is the opportunity for visitors and motoring enthusiasts, both young and old, to not just view static displays, but to jump in, experience, and drive the latest vehicle models.

Deon, Bosch; Vishal Premlall, Director SAPRA; Pieter Niemand, Director MIWA; Marcia Modiba, MIWA Representative Northern Region; Wilma Oosthuizen, PA to MIWA Director

A strong focus was also placed on the motoring accessory and aftermarket industry, adding variety to available retail options for the consumer.

The 2018 show also featured a host of new content ranging from the very first automobile in South Africa to the latest GT race cars and Supercars. Historic race cars and motorsport legends added to the mix of sound and speed during various track sessions.

The RMI had a great looking stand in the upstairs interior. Staff from the RMI offices, as well as the various Associations, were on hand throughout the weekend to answer any questions. The festival was a great opportunity for the RMI to interact with the public and consumers and educate them on the benefits of using RMI member businesses.

Another feature for this year was the addition of various activations focused around family entertainment.

The Festival of Motoring 2019 will once again take place at the Kyalami Grand Prix Circuit from 23-25 August.

OCTOBER 2018 -

49


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50 - OCTOBER 2018

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makes of engines and vehicles.

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RMI UPDATE

Partinform travels to the Western Cape

P

artinform Western Cape 2018, was held at Kronenburg Estate, on the R45 Paarl, just outside Wellington, on Wednesday, 12 September. The venue was absolutely exquisite, and specifically chosen with businesses in the surrounding areas in mind, by affording those in the Strand, Somerset West, Grabouw, Paarl, Stellenbosch, Franschhoek, Villiersdorp, Ceres and Worcester areas the opportunity to experience Partinform.  Suppliers to the motor industry pulled out all the stops to make sure that their stands stood out and attracted passersby and, as if that wasn’t enough, there was also more than enough food and drink to go around.  The RMI stand also enjoyed a lot of interest and the handouts vanished quickly. Attendees participated in a funfilled quiz about the sponsor’s products and the winner and a partner can look forward to a fun-filled weekend of Xtreme Karting, in Johannesburg at the year-end function. Capetonians look forward to Partinform’s return to the Cape and even more excitement next time around. The next Partinform road show takes place at the Horseshoe, 100 Memorial Road, Kimberley on 10 October 2018 at 17h30 for 18h00. If you are involved in the automotive industry come and visit the event, and spend time communicating with your fellow members of the automotive community, or if you need more information, contact Charmaine at Charmsevents on 082 3819026 or E mail: charmsevents@mweb.co.za

Brione Schoeman, MIWA Representative Western Cape ; Enrico Phillips, Associational Representative TDAFA - MPEA – MIMA; Zelda Snyman, Office Administrator; Joy Oldale, Transformation Director

www.automobil.co.za

SEPTEMBER 2018 -

51


Trade Test Centre

For all your automotive industry related training.

We offer internationally accredited training in:

AUTO ELECTRICIAN

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The AIDC offers state-of-the-art manufacturing support facilities, to encourage opportunities for Skills Development & Training at competitive rates.

FOR ANY ENQUIRIES PLEASE CONTACT:

52 - SEPTEMBER 2018

Matsatsi Mphago : 012 564 5000 / ttc@aidc.co.za www.automobil.co.za


149 Essenwood, Stephen Dlamini Road Musgrave Durban, 4001 Tel: 086 163 7736 Fax: 031 201 8732 LIMPOPO & MPUMALANGA 1st Floor, No.8 Corridor Crescent Route N4 Business Park Ben Fleur Ext 11, Witbank, 1040

INDUSTRY NEWS

Tel: 0861 637 735 Fax: 013 656 4629

We are taking on Industry 4.0 with all its challenges WESTERN CAPE 5th floor, Catnia Building Bella Rosa Office Park Bella Rosa Road, Bellville, 7530

WE CARE:

It’s about caring for people we render services to

WE BELONG:

It’s about working together with colleagues

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LEADERS IN CLOSING THE SKILLS GAP

Tel: 0861 637 732 Fax: 021 914 8131

CALL CENTRE Tel: 086 163 7732 info@merseta.org.za www.merseta.org.za

merSETA is well-placed to tackle the training needs of Industry 4.0, says its CEO Dr Raymond Patel In 2006, when I joined the merSETA as Chief Executive Officer, our theme for the year was: "This time, like all times, is a very good one.” It was adopted to reposition the organisation out of the morass of apartheid-era training and education facilitation.

We have facilitated the education and training of more than 350 000 The subsequent year, we adopted the South Africans, including in far-off theme: Umuntu Ngumuntu Ngabantu places like the Peoples Republic of merSETA facilitates ofGermany, artisans. This includes: – a person is a person because of the othertraining China and where a special people. This theme set the organisation merSETA candidate is in the last on a clear of service mandatory delivery months of her PhD. grants to large, med • path Paying and discretionary through internalcompanies reorganisation, to train learners; employing best practices and processes This financial year – 2017/18 – is • Registering assessors and moderators against set criter and hiring experts in the five chambers indeed historic: It is the first time provision of training meets thethat required national standard that make up the mer-Sectors. in 17 years the organisation • Identifying priority skills needs within the Manufacturing has received a clean performance Between the years 2006 and 2017, theSector; information audit against the Related Services merSETA trained the following number predetermined objectives. • Accrediting training providers to ensure that the quality o of learners against different learning simulated training provision is interventions: An impressivedelivered; achievement indeed! • Undertaking workplace This approval is my legacy!at companies to ensure

WE BUILD THE PEOPLE THAT BUILD

Year 2006/7 •

2007/8 • 2008/9

CEO of merSETA; Dr Raymond Patel

F

rom founding status in 2006, the merSETA has in the last 12 years under my tenure reached the epoch of a highly developed and disciplined facilitator of education, training, research and curricula development.

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practical training required is provided to the learner in or On 1 April this year, a new Accounting qualification; Authority was appointed to oversee 26570 Monitoring of workplace based training is carried out; an the strategic and operational outputs 27968 Implementing projects thatorganisation. assists toUnder close of the thethe skills gap

Number of learners trained

30734

2009/10

33406

2010/11

36709

2011/12

38641

2012/13

42168

2013/14

51679

2014/15

48874

2015/16

51384

2016/17

52133

leadership of Ms Lebogang Letsoalo, the 15-member Board will pitch the merSETA at a higher level to effectively face the challenges of the 4th Industrial Revolution. It won’t be an easy task. The challenges are enormous. But the organisation is confident of success.

OCTOBER 2018

53


INDUSTRY NEWS

Why original Toyota parts and service are superior In a time when the consumer is bombarded with alternatives to keeping their cars running, Toyota believes that their replacement parts and service are still the best option

D

id you know Toyota Motor Corporation spent a total of $9 billion during just one financial year (2017/18) on Research and Development including component technology? This obsession with technological advancement with the sole aim of enhancing safety, quality, durability, and reliability is just as engrained in the brand’s local DNA. It’s for this reason that Toyota South Africa is wholly committed to the aftersales support of all its products, and has every single Toyota owner’s interests at heart. The company prides itself on continuous technological development to support its customers; this includes cost

54 - OCTOBER 2018

of ownership, genuine parts supply, and genuine quality service performed by Toyota-trained professionals. Since October 2002, Toyota South Africa has offered complementary service plans on most of the Toyota model range in an effort to contain cost of ownership, and ensures its vehicles are serviced by trained technicians using only Toyota genuine parts. All Toyota-designed parts are required to meet the exact design requirements and pass the Toyota standard testing in order to maintain the required durability and safety standards.

Toyota will never wilfully lower standards or put any customer or their passengers at risk by approving components that have not been thoroughly tested. This, after all, is what defines Toyota genuine parts. When Toyota-designed parts are manufactured by a component company outside of the Toyota manufacturing facility, they are required to adhere to Intellectual Property Rights. What this means is that the part in question can only be manufactured for the exclusive use of Toyota, whether this is in the manufacturing process and/or genuine parts’ supply. The Intellectual Property Rights belong to Toyota, and

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the manufacturers of these products may not voluntary own up and take responsibility for their product. Toyota on the other hand has its brand reputation to protect, which is why it goes to such lengths to instil confidence in its products.

these parts are available to all via the extensive Toyota dealer network. It’s worth noting that some of these parts’ manufacturing companies do make components for the aftermarket, but not to the same Toyota design or specification as the genuine article when it comes to performance and quality. Superficially, they may look the same or similar, but the internal design as well as materials and performance can, and often do, differ vastly. Where such differences exist, these could impact on vehicle safety, durability and reliability. And, in the event of an accident or consequential damage,

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So, the million-dollar question is - are Toyota-designed genuine and nongenuine parts the same? Regardless of how similar they may look on the outside, the answer clearly is, No. The Toyota parts warehouse, located near the OR tambo Internation Airport, is one of the biggest parts distribution facilities in South Africa, and services 237 drop-off points across South Africa, Botswana Lesotho, Swaziland and Namibia. The furthest single drop-off point is located 2200km away, and the vehicles leaving the facility travel a combined distance of 60 000km per day. The 40 000 m² facility in Kempton Park holds everything from small parts including bolts and washers, which the

dealer can order one of, as well as all the fast-moving parts like service items and repair parts for popular models. At any time there are 60 000 to 80 000 active part numbers in the warehouse, which normally caters for 97% of the daily requirements of orders, and the part numbers in stock have generally been requested within the last 30 days. The facility does, however, have 170 000 unique locations, and the variety of part numbers could be expanded to fill all these locations should the need require. In terms of volume, the biggest mover is the humble sump plug washer, with 95 000 of these leaving the facility every month. The parts not in stock are either sourced from a local supplier or a parts supplier within the Toyota network. One of the primary objectives is customer satisfaction, so if a part is not available, it will be airfreighted at no extra cost to the customer.

OCTOBER 2018

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RMI WORKSHOP UPDATE

FAQs Resigning with immediate effect Coetzee vs. The Zeitz MOCAA Foundation Trust and others [2018] ZALCCT 20 makes an interesting point Previous case law In the case of Mtati vs. KPMG Services (Pty) Ltd (2017) 38 ILJ 1362 (LC), the Labour Court found that, after having resigned by giving notice, an employee is entitled to terminate his or her contract of employment by way of a further unilateral act of resignation during the notice period. As a result, employees were able forego serving their notice periods and were thereby able to avoid being subjected to disciplinary proceedings where they had terminated their employment in such a manner. The primary issue to be determined by the court in Mtati was when employment was terminated, which hinged on the court’s interpretation of when the employee’s resignation took effect. Kalipa Mtati, who was employed in a senior position at the auditing firm and had allegedly failed to disclose information relating to alleged conflicts of interest, had first tendered her resignation with notice, and over a week later informed her employer that she had resigned “with immediate effect”. The court in Mtati declared the employee’s dismissal null and void and went on to state that the employee is not required to seek the consent of his or her employer to resign with immediate effect during the notice period. Our view has been and remains that resignation “with immediate effect” constitutes a breach of the employment

56 OCTOBER 2018

contract, unless it is accepted by the employer. Resignation constitutes a unilateral act and, provided an employee gives proper notice, the employer’s acceptance or rejection of the resignation is of no legal consequence. However, where an employee seeks to withdraw his or her resignation, the employee requires the employer’s consent for the withdrawal to have effect. Alternatively, where the employee seeks resignation on shorter than contractual notice, the employer has to agree to this. The court in Mtati relied primarily on the Constitutional Court’s decision in Toyota SA Motors (Pty) Ltd vs. Commission for Conciliation Mediation and Arbitration & others (2016) 37 ILJ 313 (CC) and that of the Labour Court in Lottering

& others vs. Stellenbosch Municipality (2010) 31 ILJ 2923 (LC). However, the court’s interpretation of this legal precedent was incorrect, as neither Toyota nor Lottering support the proposition that an employee is entitled to evade the obligation to serve a notice period by resigning with immediate effect. Facts of Coetzee vs. The Zeitz MOCAA Foundation Trust and others • In May 2018, Mark Coetzee, the executive director and chief curator of the Zeitz Museum of Contemporary Art Africa, was suspended by his employer based on allegations of serious misconduct, pending a disciplinary hearing, and was invited to make representations in respect of the

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allegations. Following his suspension, Coetzee verbally tendered his resignation at a meeting on 16 May 2018. Thereafter, he made a public statement, the content of which had been agreed to between him and the Zeitz MOCAA Foundation Trust, wherein the Trust announced to the press that disciplinary proceedings had been initiated against Coetzee and that he had subsequently “tendered his resignation”. • The court distilled the material issue in dispute to whether the Trust had in fact accepted the alleged immediate resignation of Coetzee on 16 May 2018. • The court noted that the letter sent by Coetzee’s attorneys on 21 May sought clarification from the Trust as to whether it regarded Coetzee as having resigned and held that it is notable that the letter neither alleges that Coetzee had in fact already resigned nor that he had done so with immediate effect. • There was an unsigned employment contract which included a six-month notice period. However, the employer held the employee to a four-week notice period, being the statutory minimum which the employee was bound to serve • Coetzee approached the Labour Court directly with an urgent application, seeking that the disciplinary proceedings which had commenced against him were unlawful and invalid, alternatively interdicting his employer from completing the disciplinary process, on the basis that it had no jurisdiction to discipline him in light of his resignation “with immediate effect”. • In court, Coetzee alleged that on 16 May 2018 he had tendered his immediate resignation. Subsequent to 16 May, Coetzee’s attorneys had, on instruction, written to the Trust on 21 May seeking written confirmation that it was the view of the Trust that Coetzee had resigned and that, therefore, he was not employed by the

museum any longer. The employer responded to this on 22 May, in correspondence sent to Coetzee’s lawyers, which stated “as matters presently stand, based on the facts as recorded above, our client regards your client as having resigned with effect from 16 May, subject to four weeks’ notice as provided for in terms of law”, the longer notice period, there was nothing that prevented the employer from waiving a part of it. • The court dismissed the application and Coetzee was subsequently dismissed by his employer. Impact of the Coetzee decision in light of Mtati The judge made mention of the fact that the Labour Court’s decision in Mtati was overturned ex tempore by the Labour Appeal Court and that there was no need for her to consider that judgment or apply it to the facts of the matter before her. The judge clarified the legal position that an employee’s contract of employment comes to an end only once his or her resignation has taken effect at the end of the notice period, and she referred to the Toyota decision in this regard.

Legal position after Coetzee decision The legal position was confirmed to be the position prior to the Mtati judgment, and the court in Coetzee confirmed that the conventional and well-established principles pertaining to resignation and breach of contract are in force. Where an employee purports to resign without notice, this constitutes a breach of contract. The employer may then elect to either accept the breach and claim damages for loss suffered or enforce specific performance by the employee, by holding him or her to the service of the notice period. The employee may forego the requirement to serve notice only where the employer has waived this requirement, as set out in section 38 of the Basic Conditions of Employment Act.The employer is required to pay the employee the remuneration he or she would have received if he or she had worked during the notice period, unless the parties agree otherwise. In such cases, the contract comes to an end immediately when the employee is relieved of his or her duties. The Coetzee decision has brought certainty and clarity after the Mtati decision threw this aspect of employment law into turmoil in 2016. Credit: Maserumule Corporate Employment Law

www.automobil.co.za

OCTOBER 2018

57


WHY DO THIS TO YOUR ENGINE? THE WRONG AIR FILTER DOES THIS TO YOUR PISTONS THOUSANDS OF TIMES A MINUTE!

An inferior air filter allows dirt into your engine’s combustion chambers, scoring the pistons like sandpaper would- 2500 times a minute. Replacing damaged pistons and rings costs thousands of rands in parts and labour. Which is why you should always choose GUD. With the optimal number of pleats and finer media, GUD air filters trap all sizes of dirt particles. The media paper is moisture resistant to maintain efficiency no matter the moisture in the air intake while the frame is manufactured from the correct density polyurethane, ensuring a tight fit that prevents air by-pass and protects the engine from unfiltered airborne dirt.

58 - OCTOBER 2018

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FIT A GUD AIR FILTER.


INDUSTRY NEWS

CDK Global boosts workshop business by building customer trust According to new research commissioned by CDK Global, by far the biggest reason customers return to a workshop is ‘trust’

W

ith particular emphasis on building customer trust and convenience, the Connected Workshop system from CDK brings together six core areas of a maintenance department. With trust and transparency at the core of the system, the result is a seamless customer experience, fewer missed opportunities, faster customer processing, and greater efficiency. The integrated system, run through CDK’s industry-leading Autoline Drive DMS platform, integrates online service bookings, mobile customer check-in, digital vehicle health check (VHC), and video-based CitNOW technology to deliver a highly-professional, modern, and seamless experience to customers. The end-to-end workshop integration enables automatic customer notifications of service and repair status, facilitates mobile-based customer approvals for additional work, and can even schedule follow-up contact – based on ‘amber’ work advisories. With a high degree of automation and the eradication of data duplication, the Connected Workshop system maximises ‘earning time’ for front desk and workshop functions.

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Stuart Miles, MD for UK and Ireland at CDK Global, said: “Our research shows that if we can secure customers’ trust, we’ll maximise opportunities to retain more than two-thirds of a workshop’s potential audience. CDK’s clever integrations enable highly personalised automated contact with the customer and eliminate duplication of data for service reception teams and technicians. The result is high efficiency, less down time, plus happy customers who come back again and again.” Connected Workshop ensures that customer convenience is prioritised – helping to improve customer service ratings. For example, CDK’s new research shows that only a third of customers who’d ‘ideally book service and maintenance work online’ did so. CDK’s Service Online system plugs this gap, allowing convenient online bookings that automatically populate a workshop’s calendar with customer information. The workshop system also provides a more personalised experience, helping to develop customer trust. While technicians are working on a customer’s car, the integrated CitNOW functionality enables a personalised video to be sent to customers highlighting issues as they are discovered and enabling instant approval to additional work. Customers hate just feeling like a number so, continuing the personalisation theme, the company’s Mobile Service Advisor allows retailers to deliver a tailored customer experience. The system’s functionality frees workshop front-of-house teams from reception desks, allowing them to check-in customers anywhere

on the premises while personalising greetings and remaining informed about the customer’s service history. In addition, CDK’s Campaign Manager can automatically schedule customer reminders to be issued based on work logged during vehicle health checks. This innovation – which connects directly to the DMS – boosts customer convenience by keeping the customer fully informed of required work and helping to pre-plan maintenance – thus removing the requirement to contact the dealership each time a fix is required. These helpful, non-intrusive, and personalised reminders enhance customer communication (an issue for 26% of customers) and help to reinforce trust. Connected Workshop combines the functionality of CDK’s Service Online; Campaign Manager; Mobile Service Technician; VHC Touch, and Tyre Predictor systems. CDK is working with third parties to create a seamless automotive retail consumer experience for consumers – as it has with CitNOW. To find out more about CDK’s Connected Workshop system, plus its integration with the Autoline Drive DMS platform, go to www.cdkglobal.com.

OCTOBER 2018 -

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RMI UPDATE

B-BBEE Rewards for employment of youth

Businesses can now improve their BEE level with up to 2 levels by participating in job creation and, more specifically, in meeting the criteria for the Youth Employment Services (Y.E.S) initiative as published by the Minister of Trade and Industry in Government Gazette No 41866 of 28 August 2018 How does it work ? 1. All businesses, depending on their size, number of employees and average nett profit after tax, get a specific target to create new temporary employment positions in the industry. 2. If the numbers of temporary positions have been filled with black youth for at least 12 months and 5% of these positions have been converted into permanent employment, then such a business's B-BBEE Level can be enhanced with 2 levels. There are, however, a few rules or qualifying criteria which again will differ depending on the size of the business. A. Exempted Micro Enterprises (annual turnover < R10mil) qualifies for Y.E.S registration automatically B. Qualifying Small Enterprises (annual turnover between R10mil

and R50mil) - QSE only qualifies for Y.E.S registration if: i. The QSE maintains or improves on its B-BBEE Level of compliance obtained in the previous year ii. The QSE achieves at least 40% of the target points in Ownership and 40% of the points in either Skills Development or Enterprise & Supplier Development, i.e. the three priority elements or; iii. The QSE obtains an average score of at least 40% across any two of the three priority elements, C. Large Enterprises (annual turnover > R50mil) - Generics only qualify for Y.E.S registration if: i. The Generic enterprise maintains or improves on its B-BBEE Level of compliance obtained in the previous year

ii. The Generic enterprise achieves at least 40% of the target points in all three priority elements, i.e. Ownership, Skills Development and Enterprise & Supplier Development or; iii. The Generic enterprise obtains an average score of at least 50% across all three priority elements Example An Exempted Micro Enterprise, currently having a Level 4 B-BBEE status with an employee headcount of 15 employees will have to do the following in order to enhance his/her B-BBEE Status to a Level 2 a. Create 2 new employment position in his/her business b. Fill those positions with a Black Youths (18 - 35 years) with a temporary or fixed term contract of at least one year c. Convert one of those contracts into a permanent position

To determine what the Y.E.S targets for your Business will be, or for information on additional qualifying criteria, contact Johan Coetzee at rmi4bee@gmail.com

60 - AUGUST 2018

www.automobil.co.za


www.automobil.co.za

OCTOBER 2018

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WORKSHOP

TROUBLESHOOTING MADE EASY Autodata, a leading provider of automotive technical information, shares OEM verified solutions to common problems found in modern motor vehicles. To learn more about Autodata’s innovative online workshop application visit www.autodata-group.com

PEUGEOT 308: WHISTLING NOISE IN PASSENGER COMPARTMENT WHEN TURNING Problem: We have been asked to find the source of a whistling noise which can be heard in the passenger compartment of a 2008 model Peugeot 308 when the steering is turned from lock to lock. We have checked several steering components but have not found the cause of the problem. Is this a known fault? Solution: The fault has been reported to us on a few occasions and it is due to a power steering pipe vibrating against the vehicle’s chassis. Reposition the power steering pipe to ensure suitable clearance between surrounding components (see Fig 1.1). Carry out some lock to lock manoeuvring to confirm the fault has been rectified.

VOLKSWAGEN UP! SEAT HEATER SWITCH STICKS IN DEPRESSED POSITION Problem: We have a Volkswagen Up! in the workshop with a seat heater switch that sticks in the depressed position. We replaced the switch a short time ago for a similar fault – but it has reoccurred. Do you know of any reason why the problem appears to manifest so frequently? Solution: Yes, we have come across this fault before on Up! models. It is due to insufficient clearance between the seat heater switch and the surrounding trim panel. To eliminate the problem, remove the centre console multi-switch assembly. Ensure correct routing of the seat heater switch wiring harness. Check that the seat heater switch operates correctly. If you are satisfied that the seat heater switch does not stick in the depressed position, apply felt tape, available from Volkswagen’s parts department, to the centre console multi-switch assembly as shown in Fig.1. Refit the centre console multi-switch assembly. If the seat heater switch sticks in the depressed position when you test it, fit a new switch and follow the instructions.

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MEMBERUPDATE

The RMI welcomes these new businesses into membership A Akasia Autohouse Pretoria Amalgam Autobody Johannesburg Anax Body Repair Centre East London Auto Pit Stop Midrand Autoguard Queenstown Queenstown B BBB Autobody Boksburg Blue Tech Body Works Kempton Park Braamfontein Autoworx â&#x20AC;&#x201C; Bosch Car Service Johannesburg C C and H Workshop Vryheid Car Service City Hazyview Hazyview Carmile Quality Service Bloemfontein CC Automotive Repairs Polokwane CM Auto Service Centre Port Elizabeth CMF Auto Spares Ga-Rankuwa D Darren and Son Motor mechanic Specialist Sandton Determinants Trading and Projects Pretoria DVN Automotive Workshop Boksburg E E and S Fitment Centre Polokwane Edal Panelbeaters Pretoria Eksodus Motor Service Vryheid Errol Airbrake & Clutch Strand F Finance and Insurance Management Edenvale Forged Speedshop Centurion FSR Developments Bloemfontein G Gibson Maitland GR Panelbeaters Johannesburg Guscotts Engine Rebuilders Port Elizabeth H Halfway Ford Kuilsriver Kuilsriver Halfway Hino Randburg Hi-Q Camperdown Camperdown Hi-Q Mobeni Durban Hi-Q Vanderbijlpark Vanderbijlpark Hybrid Auto Mech Strand Strand Hyundai Sandton Johannesburg I Idaba Trading 355 Rustenburg Inselo Supplies & Services Richards Bay Inyathuko Enterprise Pretoria K Kanimambo Motormedics Pretoria

Kessel Motors Loop Street Cape Town L L & J Motors East London LDS Bande Leeudoringstad Lesleys Performance Middelburg M Mabitsi Auto Kempton Park Magnis Truck Pretoria East Pretoria Malekgaso Mokopane Masana Auto Centre Pretoria MM Motorneers Centurion Mobile Mag Medic Germiston Motswa Pru Nl Trading and Projects Pretoria MRZ Autobody Pretoria N NMS Speedshop Polokwane Nyiko Motor Repair Pretoria P P and D Tuning and Fitment Centre Vereeniging Passmore Auto Mechanics Sebokeng Perfect Car Panelbeaters Bethlehem Phillips Industries Rustenburg Points Tyrelube Highveld Middelburg Power Panel and Paint Port Shepstone Q Qariep Fitment Centre Burgersdorp R R A Engineering Empangeni Randburg Auto Repairs Randburg Rerekilwe Trading and Projects Mokopane Rimtek Meyerton Royal Pledge Auto Services Pretoria RSGP Hydraulics & Mechanicals Polokwane S SA Auto Detailers Vanderbijlpark SAC Alberton Alberton Sewwela Motor Services and Repairs Boleu Sovereign Bethlehem Bethlehem SS Hydraulics Mokopane Supa Quick Fish Hoek Fish Hoek Supa Quick Kempton Park Kempton Park Suzuki Vredenburg Vredenburg Swartberg 1 Stop Beaufort West T Tenyiko Holdings Pretoria Terminus Spares and Mechanical Centre Pretoria TEW Engineering & Projects Johannesburg TH Auto Clinic & Fitment Centre Cape Town The Workshop Autobody Johannesburg Three Angels Collision Repairs Vanderbijlpark Truckmasters Trading Shakaskraal V Vaaltyns Mechanical Workshop Bloemfontein Vumani Panelbeaters Isipingo W Wilrand Fitment Centre Bloemfontein WJ Fleet services Durban WJ Fleet Services Port Elizabeth WM Auto Body Repairs Gansbaai Z Zambezi Multifranchise Pretoria

BENEFITS OF BELONGING With a membership of 8 000, the RMI provides a very effective collective voice that gives members considerable clout in negotiating better trading conditions. As the lead voice in the motor industry, the RMI is a member-driven organisation that constantly seeks solutions to concerns raised by members in the day-to-day running of their businesses.


PROVIDING A COMPLETE SOLUTION FOR ASIAN, AMERICAN AND BRITISH VEHICLE PARTS Asian range

American range

British range

With one of the world’s largest ranges of parts for Asian vehicles, Blue Print is the right choice and solution for all Asian vehicle requirements. This specialism means we have some of the best all-round knowledge of the market and are able to offer an accurate and quality solution.

The American range covers over 200 models with more than 2,000 part numbers available. Like the cars themselves, the Blue Print American range continues to get bigger and better with new parts being continuously added.

In 2014, Blue Print launched a range of parts for traditionally known ‘British’ vehicles. In a short period of time Blue Print introduced 1,400+ parts from over 90 product types, covering more than 8,000 British applications.

Filtration

Braking

Clutch

Steering & Suspension

Engine Management

Transmission

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Cooling

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Body

Tools

Solutions

Blue Print parts are now available in South Africa! The Blue Print brand is represented locally by: Ferdinand Bilstein South Africa (Pty) Ltd Tel. +27 (0)10 900 4545 Available exclusively through selected appointed distributors

Right First Time. www.blue-print.com


TAILPIECE

Don’t drive with worn shocks, warns MIWA Worn shock absorbers seriously compromise a car’s handling and safety on the road

B

ecause shock absorbers wear out gradually, motorists often adjust unconsciously to the change in their vehicle’s handling, unaware of the danger they’re in due to the efficiency of vital components being compromised. “It’s essential that motorists be aware of how dangerous worn shocks can be and familiarise themselves with the signs that their car’s shocks may be due for replacement,” says Dewald Ranft, Chairman of the Motor Industry Workshop Association (MIWA), an affiliate association of the Retail Motor Industry Organisation (RMI). Independent research on the extent to which worn shock absorbers impacts on a vehicle’s safety shows that they

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compromise the driver’s ability to stop, steer and maintain vehicle stability. “In fact it takes 2.6 metres longer to stop from a speed of 80 km/h on a straight road with only one driver in the car and it takes 11.3 metres longer to stop when fully loaded and travelling on a straight road with an uneven surface from a speed of 70 km/h.” Among the signs that a car’s shock absorbers could be worn are steering wheel vibrations, oil leakage, irregular and increased tyre wear as well as steering that will not centre by itself. With the wet season about to hit many parts of the country it is even more important to ensure your vehicle is in a good working condition.

However, Ranft also cautions against opting for replacing your worn shocks with cheap – and unsafe – shock absorbers. Independent tests have proved that certain cheap, imported shocks are extremely dangerous because they aren’t built robustly, the quality of the oil is inferior, they fail the fatigue test, lack flexibility and are often incorrectly assembled. “Quality is vital in this critical component of a vehicle. It’s best not to scrimp on this essential part of driving a roadworthy vehicle. Ensure that you have your shocks checked and fitted at a reputable MIWA service provider and when necessary, insist to have them replaced by a trusted brand,” Ranft concludes.

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FORD TRADE CLUB

Unprecedented access. Unequalled prices.

Ford Trade Club has been set up to offer independent repairers, workshops and bodyshops access to thousands of genuine Ford and Motorcraft parts at reduced prices. We have parts for over 20 different Ford models across 85 distinct product groups in categories from brakes to suspension, backed by Ford warranty and designed and tested by Ford, meaning theyâ&#x20AC;&#x2122;re guaranteed to fit quickly and perfectly every time. With a wide range of parts and new parts being added regularly, youâ&#x20AC;&#x2122;ll want to get involved. As a member of the Ford Trade Club you will also be provided with specialist help and knowledge at your participating Dealership, and will receive exclusive news and offers emailed or sent directly to you. We want to build a strong partnership between Ford Dealers and independent repairers, workshops and bodyshops. Join nearly 2000 others already enrolled and become a member today, go to our website www.fordtradeclub.co.za

Ford Trade Club is operated by Ford Motor Company, South Africa. Applications to join are subject to eligibility. Ford reserves the right to amend the content or operation of Trade Club at any time.

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Aer-o-cure provides an air-tight solution for refinishing professionals. Aer-o-cure’s Combination Downdraught Spraybooths are designed for automotive refinishers that demand a reliable, high quality paint process with minimum running costs. The powerful downdraft ventilation system guarantees a healthy working environment and optimal conditions for painting, removing all vehicle overspray immediately and ensuring a mirror-perfect finish after baking. Minimising energy usage during both the painting and baking cycles is a high priority and is achieved through precisely controlling the motor’s speed via the Microprocessor control. Energy-saving neon lighting is utilised to provide uniform conditions allowing for correct colour tones to be achieved with absolute precision. For a complete Aer-o-cure Spraybooth and Mixing Room solution, visit our website or call now for more information.

10 Reasons why you should choose an Aer-o-cure Combination Downdraught Spraybooth: • Microprocessor controlled, energy efficient • Manufactured in South Africa • OEM Approved • SABS Certified • Lower maintenance costs • Lower operational costs • Easily movable • Established in SA since 1980 • Proven after-sales service and support • Over 2000 spray booths produced since inception

STANDARD MIXING ROOMS MODELS: AM – 30 / 40 STANDARD SPRAYBOOTHS MODELS: AC60- 2800, AC75 – 2800 / 3400, AC90 – 2800 / 3400 OPTIONAL EXTRAS: Extraction • Waterborne Blowing System • Lights • Windows • Gas Burners

For the full range visit: www.aerocure.co.za

Automotive Bodyshop Equipment Aer-o-cure PTY (Ltd) • SADC Registered Manufacturer and Exporter 8 Lees Street, Wynberg, 2090, Johannesburg, South Africa. PO Box 137 Strathavon, 2031 GraphicWerx • AOC_Ad5_AutoMobil_3042

Tel: +27 11 444 6454 Fax: +27 11 444 5677 e-Mail: info@aerocure.co.za * Product / Colour may vary from image provided, subject to stock availability. (E&OE)

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Automobil October 2018  

Automobil October 2018  

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