/ 9 March 1998

Settlement in security strike

MONDAY, 12.45PM:

TWO weeks of striking by security industry employees has been ended by a settlement reached between unions and employers over the weekend.

The settlement follows the Labour Court of Appeal’s judgement on Thursday upholding a previous decision deeming the strike to be legal. In both cases, the applications of employers to have the strike declared illegal were dismissed with costs.

The settlement includes a 10% wage increase, a 3% employers’ contribution towards a provident fund, and bonus of 1% of monthly wages. Workers had demanded 12% wage increases and other benefits, while employers had offered 10%.

The strike began with violence in the centre of Johannesburg when protesting guards stoned police and burnt vehicles. Nine days of attempted intervention by the Commission for Conciliation, Mediation and Arbitration bore little fruit until the final decision by the courts that the strike was legal.

BUSINESS BRIEFS

COEGA GETS THUMBS-UP

THE Coega Industrial Development Zone in the Eastern Cape has been cleared by Enviromental Affairs and Tourism Minister Dr Pallo Jordan. Jordan said that as long as his department’s environmental recommendations are met, the development is approved. The department has begun to compile an enviromental management framework for the Port Elizabeth metropolitan area, including Coega, to ensure the sound management of the project, including an independent, on-site environmental management office.

RESERVES UP IN FEBRUARY

SOUTH Africa’s total gold and foreign exchange assets increased R3,1-billion to R30,9-billion in February from R27,8-billion in January. The SA Reserve Bank said on Monday that gold holdings fell R225,7-million to R5,3-billion (R5,5-billion) and foreign assets were up R3,3-billion at R25,6-billion (R22,3-billion). Gold holdings fell 70850 fine ounces to 4040796 (4111646). The rand gold price fell to R1306,47 (R1338,86).

SAPPI TO REDUCE POLLUTION

SAPPI plans to spend R100-million reducing the pollution emitted by its paper mill at Ngodwana in Mpumalanga. The plant, situated on the N4 highway, is variously described as an “eyesore” and an “environmental hazard” and has a notorious stench. The plant’s managers plan to implement the ISO 14001 environmental management standard. The plant’s annual turnover is R1,3-billion, and it employs 1300 people.

UMGENI WATER WINS AWARD

UMGENI Water’s 1996/7 environmental report beat Sasol and Eskom to capture the World Wildlife Fund for Nature’s award for “best annual environmental report in South Africa in 1997”. The water board also won in 1995.

JCI BOARD MEETS WEDNESDAY

MINING and investments giant Johannesburg Consolidated Investments, currently facing dismantling, has announced a meeting by its board of directors for Wednesday, to discuss interim results — the release of which has been delayed — and negotiations over its future.

ANGLO, RMB AGREE ON MERGER

ANGLO American and Rand Merchant Bank Holdings announced over the weekend an agreement in principle to merge certain financial services interests. Trade of shares in RMBH, Momentum Life, Southern Life and First National Bank was suspended on Friday afternoon.

PROBE OF KZN D-G

KWAZULU-NATAL Director-General Otty Nxumalo purports to be unperturbed by the provincial auditor-general’s investigation into irregularities involving R28-million in his office. In January, the auditors queried the absence of files for 21 reconstruction and development projects and the absence of financial details for another 45. Business plans and banking details are missing for other projects. Nxumalo was supposed to have responded to the auditors last month, but has not yet done so.