1966: The land-locked kingdom of Lesotho gains its independence from British rule.

Dust off your wind instruments, it’s International Toot your Flute Day.

IMPROVED BUSINESS CONDITIONS FAIL TO SPARK INDEX

The Standard Bank purchasing managers index (PMI) released yesterday showed that domestic business conditions improved slightly in September to 48 after dropping to a 29-month low of 47.2 in August. The index looks at the whole economy and a score below 50 and indicates a contraction in business conditions. This is the third consecutive month of deterioration.The PMI decline was broad-based as new orders, output, employment and inventories fell further. However, Standard Bank said the index was likely to improve as president Cyril Ramaphosa’s economic stimulus plan took hold. The Absa PMI, which measures sentiment in the manufacturing sector, also pointed to a weak economy in Q3 2018. The index dipped to its lowest level in just over a year, slipping to 43.2 points in September from 43.4 in August. (BDLive)

… AS WORLD BANK CRIMPS GROWTH OUTLOOK

The World Bank has revised SA’s growth forecasts down for this and next year, and has taken a dim view of President Cyril Ramaphosa’s economic stimulus plan. While the forecasts are higher than that of the Reserve Bank and many analysts, the World Bank now expects growth of 1.0% in 2018, down from 1.4%. Growth forecasts were lowered from 1.8% to 1.3% in 2019, and from 1.9% to 1.7% in 2020. “Growth is expected to remain subdued in 2019, as domestic demand is constrained by high unemployment and slow growth in credit extension to households, and as fiscal consolidation limits government spending,” said the World Bank in its regional economic outlook for Africa released yesterday. The World Bank also warned that Ramaphosa’s economic stimulus plan will have a limited impact. The plan was announced following the shock statistics that SA had entered a recession for the first time since the global financial crisis.  (BDLive)

FEARS THAT JOBS SUMMIT IS ANOTHER TALK SHOP

Business and NGO leaders making presentations on proposed solutions to the country’s unemployment crisis at the National Economic Development and Labour Council (Nedlac) beginning today have warned that the event is being "stage-managed". The process that underpinned the first jobs summit in two decades was merely repackaging old initiatives and projects, they said. Limitations on the subjects to be explored will make the gathering a "dud". Nedlac’s social partners — the government, business, labour and the community — have held discussions with various stakeholders including leading academics to gather a wide variety of views ahead of the summit. Signs are not encouraging that the government, labour and business will achieve much more at the Nedlac jobs summit than during the 2017 edition. (BDlive)

IS MANTASHE’S EXPLORATION MOVE MINING’S GAME CHANGER?

Mineral resources minister Gwede Mantashe has moved to undo one of the most damaging elements in his predecessor’s version of the Mining Charter, releasing exploration companies from onerous black ownership conditions that the industry partially blames for a drop in activity to levels not seen in about five decades. His predecessor Mosebenzi Zwane issued a third version of the charter in June 2017, obliging prospecting companies to have 51% black ownership, effectively bringing already volatile levels of exploration to the lowest level since at least the 1960s. Reviving exploration is essential to develop new mines in SA, where the mining sector contributes about 8% to the economy and employs more than 460 000 people. Mantashe gazetted a fresh version of the third charter on September 27. Mantashe said prospecting rights fell outside the obligations laid out in the charter for mining rights. Roger Baxter, CEO of the Minerals Council SA, said the steps Mantashe had taken to improve the environment and create “a much better enabling framework to get those venture capitalist companies back in SA, both domestic and foreign … is a game-changer”, Baxter said. (BDLive)

COAL MINERS URGE LONG-TERM ESKOM SUPPLY CONTRACTS

Coal miners have called on Eskom to revert to cost-plus mines to save both the industry and itself. Speaking at the 2018 Joburg Indaba, South32 COO Mike Fraser said coal was expected to remain a big part of the SA energy mix and a significant portion of Eskom’s costs. Because of this, reverting to long-term contracts would be mutually beneficial for both Eskom and for the coal industry, Fraser said. Senior coal analyst at XMP Consulting Xavier Prévost said that while there were enough coal resources in the ground investment was desperately needed. The price of coal had increased 100-fold since 2007, Prévost said. As such, "cost-plus mines are a must — that will control the prices, otherwise nothing will". In the past, "cost-plus" mines had been built in conjunction with Eskom on the condition that coal would be supplied to the utility at cost with a modest margin on top. But former Eskom CEO Brian Molefe announced his intention to break ties with such mines. (BDLive)

CALL CENTRE SECTOR TO CASH IN ON BREXIT

SA’s burgeoning call-services sector, which gets more than half its work from Britain, could attract larger inflows as the effect of Brexit weighs and companies seek savings by moving operations offshore, industry officials said yesterday. Cultural affinity, good English language skills and similar time zones helped spur the sector seeking to compete with India and the Philippines in a global industry worth US$89 billion (about ZAR1.3 trillion) in 2017. "When there is uncertainty, the outsourcing industry blooms. Obviously there is huge uncertainty around Brexit and that provides outsourcing opportunities... to countries such as SA" said Kerry Hallard, president of the London-based Global Sourcing Association. (Reuters)

SA AVIATION SECTOR WORTH ZAR134 BILLION

A report by the Air Transport Action Group (ATAG) said the aviation industry in South Africa supports about 472 000 jobs and contributes about ZAR134 billion to its GDP. In Africa as a whole, the aviation sector directly employed over 415 000 people in 2016. Air transport in Africa is estimated to support 6.2 million jobs (directly and indirectly) and accounts for US$55.8 billion (about ZAR812 billion) of the continent's economic activity. That was 1.8% of all employment and 2.6% of all GDP in African countries in 2016. (Fin24)

KPMG SA HEADHUNTING NEW CEO

In the wake of controversies plaguing auditing firm KPMG SA, it has decided to move its CEO Nhlamulo Dlomu to a “global role” — specifically around dealing with organisation culture change and ethical leadership. While the search for a new CEO is “well advanced”, KPMG’s Wiseman Nkuhlu will serve as executive chair in the interim. Dlomu was appointed in October 2017 after Trevor Hoole in the aftermath of its dealings with the Guptas and the South African Revenue Service. (BDLive)

STAND UP TO TRUMP, URGES EX-WTO JUDGE

Member countries of the World Trade Organisation (WTO) should unite against US president Donald Trump’s bullying, former WTO chief judge James Bacchus said yesterday. Bacchus said that Trump was stampeding countries into accepting constraints on their own exports, even though they knew it was illegal to do so, and intimidating judges at the WTO who had ruled against the US. "What the US really wants is to be judge and jury in all its disputes in the WTO involving the US," said Bacchus. He said that the other 163 WTO members could exploit a rarely used WTO rule to isolate Washington, using arbitration instead of standard litigation. (Reuters)

EXPENSIVE DEBT PUTS BRAKES ON US CAR SALES

Auto sales in the US fell by 7% last month – following a trend of Americans spending less as borrowing money becomes more expensive. Vehicle manufacturers Toyota, Nissan, and Ford all saw their US sales decline by more than 10% in September. Fiat Chrysler was the only major carmaker to gain, as sales of its Jeeps jumped. Prior to this January, auto sales hadn’t fallen in eight years. Higher interest rates are partly to blame – the US Federal Reserve hiked rates last week for the third time this year with another raise expected before year-end. More expensive debt is also crimping sales of American homes that have fallen for eight months in a row as mortgage rates climb to the highest since 2011. (Finimize)

CERTIFICATE IN LABOUR LAW
 

Starts: 15th October 2018

The Certificate in Labour Law aims to equip delegates with the necessary labour legislation and procedures to ensure that accurate and ethical procedures are installed on returning to the workplace. Labour legislation in South Africa is one of the biggest challenges facing businesses in all industries today.
 
There is a maze of labour legislation governing correct practices and procedures that changes on a regular basis. Implementing unsound or outdated human resource practices in the workplace can result in costly and time-consuming battles with staff down the line.

The course is suitable for anyone who deals with employment law issues in the workplace. This includes small-business owners and managers, HR personnel, supervisors, foremen, managing partners of professional firms, franchise owners or managers and factory managers.

Duration:

6 days

Contact:

For more information please contact Percy Sishi: 
T: +27 31 260 1853
E: sishis@ukzn.ac.za