TUESDAY, 7.30PM:
THE overall wage settlement level is down from an average 9,7% last year to 9,4%, calculated to the end of April this year, according to a report from labour researchers Andrew Levy & Associates.
This matches employers’ resolve to settle on increases more closely aligned to inflation, now at its lowest level for years.
The average level of settlements is expected to drop more during the second half of the year, the report says.
Of the main sector unions, one of the lowest average settlements for the period under review was the 9% increase agreed to by the Food and Allied Workers’ Union.
The highest average settlement was 10,1% made by the Transport and General Workers’ Union and the Transport and Allied Workers’ Union. The report puts the average inflation rate to March 31 this year at 5,5%, the range of wage settlements between 8% and 18% and the average monthly minimum wage at R1798 against a monthly wage range of R680 to R2800.
BUSINESS BRIEFS
SOEKOR TO DOUBLE OIL YIELD
SOEKOR, the state owned oil exploration group, aims to double the output of its Oribi oilfield off Mossel Bay by the end of the year, investing $75,9-million to achieve this. Soekor plans to develop its Oryx oil field in an attemp to boost production off the Oribi field. The Oryx project will raise the lifespan of the Oribi field from four years to about nine years, and raise capacity from 26-million to 35-million barrels. Production will be kept at 25000 barrels a day, about 6% of SA’s oil needs.
‘STRONG’ ABSA DELAYS SANLAM MERGER
ABSA Bank chairman Danie Cronje on Monday hinted that the expected Absa merger with Sanlam, its dominant shareholder, might be held off for some time, after Absa group showed positive market results for the year to March 31. Cronje said: “We’re not convinced the only model is complete integration.” Absa group delivered a 28,3% increase in headline earnings to R1,7-billion for the year amid strong competition, high interest rates and volatile trading conditions.
NEW SECURITIES TAX BILL
THE Uncertificated Securities Tax Bill, which creates a 0,25% tax on the issue of and change of ownership in securities transferable without a written instrument and go unevidenced by certificates, was tabled in Parliament on Monday. The present Marketable Securities Tax will fall away as the Johannesburg Stock Exchange becomes totally electronic. The two taxes will co-exist for a while, but those who have paid UST will not be liable for MST. Stamp duty will also be payable on transactions in unlisted shares.
CDC DIDN’T PAY IN TAX
THE Ciskei Development Corporation deducted R4-million in income tax contributions from employees’ salaries in 1996 — but never turned it over to the South African Revenue Services, according to an Eastern Cape provincial audit investigation.
EU ANTI-DUMPING THREAT
ANTI-DUMPING duties on steel wire rope exports to Europe threaten engineering group Haggie. The group exports about 4000 tons of steel wire rope to Europe every year, which comprises less than 3% of the European market, less than the threshold at which an exporter can be charged with dumping. But SA has been grouped with rival exporters, from China to Ukraine, which add up to 12%. The duties, if imposed, could hurt Haggie, which recently managed to push up headline earnings 42% to 283c a share for the year to December.
MAPUTO TOLL OPENS JUNE 6
THE Maputo Corridor toll road will be opened on June 6, according to Jos de Nobrega of Investec’s specialised finance division. The project was funded from the outset by banks and the capital markets. The R1,8-billion N4 project is the first stage of the Maputo Development Corridor, which aims to radically improve the transport infrastructure between South Africa and Mozambique. Five toll plazas will cost someone driving Johannesburg-Maputo a total R59,90. Investec and Nedcor Investment Bank are the joint lead arrangers and underwriters of the R1,294-billion senior and subordinated debt. Trans Africa Concessions has a 30-year contract to build, operate and maintain the N4.