TUESDAY, 9.00AM:
THE South African Chamber of Business on Monday slated recent changes to labour laws, labelling them biased in favour of labour, and likely to inhibit job creation.
In a submission to the National Assembly’s labour portfolio committee, which is holding hearings on the labour Budget vote, Sacob said the cumulative effect of the legislation will encourage business to evade labour market laws, to the ultimate detriment of workers.
The submission added that the labour reform programme fails to properly prioritise the needs of the South African labour market, nor does it — in the absence of a macroeconomic strategy — “dovetail with other measures of economic restructuring.”
South Africa’s largest labour federation, the Congress of South African Trade Unions, has refused to participate in the hearings, claiming the Budget process does not allow meaningful input from the public.
BUSINESS BRIEFS
BOTSWANA INFLATION DROP
BOTSWANA’S inflation dropped 6,9% last month, continuing the downward trend it has displayed over the last two years. Inflation fell to 9,3% in March 1997 from 10,2% the previous year. The all-items consumer price index rose 0,8% in March over February to 110,3 points on a base of 100 in November 1996. The cost of living in Botswana has risen 16,8% since March 1996.
DIDATA-JOHNNIC TALKS GO AHEAD
DIMENSION Data will meet with Johnnies Industrial Corporation (Johnnic) on Tuesday to discuss a proposal for Didata to acquire Johnnic through a reverse takeover, and to restructure the group. The proposal was drawn up by Standard Corporate and Merchant Bank as a counter bid to rival New Africa Investments Limited’s merger proposal. The Didata bid is backed by Johnnic shareholder Worldwide Africa Investments.
KLUEVER HEARING POSTPONED
THE inquiry into allegations that Auditor-General Henri Kluever’s office covered up an alleged R170-million Strategic Fuel Fund loss was again postponed on Tuesday. Public Protector Selby Baqwa, who chairs the tribunal, was admitted to hospital on Monday evening with bronchitis. The hearing will resume on June 1, and will continue for a month.
MALAWI TO BUY POWER
MALAWI is looking to buy 50 megawatts of hydroelectric power from Mozambique’s Cahora Bassa plant because of power shortages caused by severe drought in the country. Allexon Chiwaya, chief engineer for the the Electricity Supply Commission of Malawi, said the project should get under way later this year at a cost of $40-million, which is being sought from donors. Malawi has had to ration electricity supplies because three hydroelectric dams on the Shire River, which supply 95% of the country’s power, have been hit by dropping water levels.
TGWU TAKES ON AUSTRALIANS
THE Transport and General Workers’ Union on Tuesday said its members will not work on ships associated with Australia in solidarity with Australian dockworkers sacked in an industrial dispute. The TGWU said the ships will not be loaded or off-loaded by TGWU dockers until the 1400 workers fired are reinstated. The TGWU added that it “will stand by our Australian comrades no matter what and will do everything in our power to ensure a speedy resolution, even if it means taking on the right-wing Australian government”.
FOREIGN BOND DEMAND DOUBLES
FOREIGN demand for South African bonds has doubled this year, compared to last year. Non-residents have bought R12,01-billion in the year to date, compared with R6,6-billion during the same period last year. The sharp increase in demand confirms market confidence in South Africa as a stable emerging market, analysts said.
MAIZE ESTIMATE UP
THE National Crop Estimates Committee on Monday placed its third estimate for the 1998/99 commercial maize crop at 7416 million tons, a rise in its previous estimate of 7287 forecast last month. The committee estimates the white maize harvest at 4459 tons and the yellow maize crop at 2957 tons.
DAIMLER-BENZ ISSUES EURORAND
DAIMLER-Benz International Finance, the finance arm of the automobile manufacturer, issued a R250-million four-year eurorand bond on Monday. The issue carries a coupon of 11,25%, which is the lowest seen on a coupon bond issue, lead manager Socit Generale said.
HARMONY EARNINGS RISE
INDEPENDENT gold company Harmony’s quarterly profits rose by R1-million to R33,1-million, despite restructuring and a low gold price, the company said on Monday. Restructuring has reduced the mine’s tonnage by 22%, but cut costs to make one of the country’s lowest-cost producers, MD Bernard Swanepoel said. The company’s Free State mines achieved a cash cost level below $250 an ounce, while working costs for all operations were reduced by 17%. “We are a little smaller, but a lot more profitable,” Swanepoel said.
MTN STAKE NEARLY SOLD
PROTRACTED negotiations for American telecommunications firm SBC Communications’ 15% stake in cellular network provider MTN are expected to close next week. M-Cell, a 29,5% shareholder in MTN, and Transnet, with 20%, announced on Monday that they are in advanced stages of negotiation to buy the shares. Naftel, through which New Africa Investments Limited and Omni hold an interest in MTN, also issued a cautionary warning to shareholders. SBC Communications has to sell its R1,6-billion share in MTN after it entered a joint 30% investment in Telkom with Telecom Malaysia last year.
2 000 LOSE JOBS IN GOLD FIELDS SHOCK
MORE than 2 000 Namibian mineworkers will lose their jobs this week after Gold Fields Namibia announced on Friday it is to close three of its base metal mines in the country. The company is to make an urgent application to Namibia’s high court this week for the sequestration of the its main asset, Tsumeb Corporation. Namibia’s mineworkers’ union on Sunday, however, resolved to oppose the liquidation of the three mines in Otjihase near Windhoek, and Kombat and Khusib Springs in the north of Namibia near Tsumeb. Mines and Energy Minister Toivo ya Toivo registered shock at the bombshell decision, accusing the company of being “dishonest” in not consulting the government.