FRIDAY, 1.00PM:
LABOUR Minster Tito Mboweni on Thursday announced the government’s long-awaited employment strategy, promising fiscal support of up to R1-billion for jobs creation programmes in the short term.
The strategy — which will dictate the government’s position in the coming presidential jobs summit — calls for sacrifices from business and labour. Depending on the outcome of negotiations before the summit, business and labour could be called on to contribute to the Umsobomvu Fund which will be used to create employment and stimulate opportunities for youth. Business may also be asked to fund various other employment generating initiatives, promote small business entry into the economy and establish training programmes. Labour faces measures to increase labour market flexibility. The strategy also requires labour to accept a lower entry youth wage, and a form of wage restraint.
BUSINESS BRIEFS
PETROL PRICE RISE
THE Department of Mineral and Energy Affairs on Friday announced a one cent increase in the price of petrol from Wednesday July 1. In announcing the raise a spokesman for the department attributed the price increase to the weakening rand and United States dollar exchange rate.
SAFCOL MAY RETRENCH 300 STAFF
THE South African Forestry Company is considering retrenching up to 300 employees, CEO Tienie van Vuuren announced on Thursday. The job losses will come from Weza Mmand Timbadola sawmills as a result of a study to reduce Safcol’s overhead cost structure. Van Vuuren said that new technology at the sawmill which allows it to process double the number of logs in half the time will eliminate the need for a double shift.
COMESA MEMBERS MUST REDUCE TARIFFS
COMMERCE and trade ministers from the 20-nation Common Market for Eastern and Southern Africa began their fifth meeting on Thursday with a call on countries to meet the deadline to establish a free trade area for the sub-region by the year 2000. Pan African News Agency reports that, in line with the tariff reduction programme, all member countries are expected to by 90% by October 1998. Officially opening the meeting, Democratic Republic of Congo’s minister for international co-operation Celestin Luanghy, said that only Comoros, Eritrea, Kenya, Sudan, Uganda and Zimbabwe have reached the 80% tariff reduction target set for 1996, with a further five countries reaching a 60% to 70% reduction.
SAA GETS MAJORITY SHARE IN TANZANIAN AIRPORT
SOUTH African Airways on Thursday acquired a 51% stake in Tanzania’s Dar es Salaam Airport Handling Company. The Tanzanian government sold 16% of its 65% shareholding to SAA for an undisclosed sum, leaving it with a minority 49% share.
SOUTHERN BLOCS NEED TO CO-OPERATE
TRADE and Industry Minster Alec Erwin on Thursday called on developing southern hemisphere nations not to become reliant on developed nations for their growth. Speaking at the International Conference on Latin America, Erwin said regional blocs need to build socio-economic co-operation among themselves. One aspect of this is to outsource certain stages in the manufacturing process to other countries within the regional bloc, Erwin said.
Y2K LAWS APPROVED
CABINET on Thursday approved an action plan to ensure South Africa is ready for the year 2000 (Y2K) millennium bug, paving the way for antidumping legislation for those whose equipment and software will not be compliant. The plan identifies 68 ”mission critical” systems within government which must not fail. A six-phase action plan to target these critical areas has been developed, Post and Broadcasting Minister Jay Naidoo said. He added that a government survey has showed that 70% of government departments, and 90% of large organisations anticipate completing their conversion on time.
MINISTRY WANTS AECI SALE CLOSED
THE Competitions Board is reportedly coming under increasing pressure from the Trade and Industry Ministry to approve Sasol’s proposed R4,6-billion acquisition of AECI. As the board is due to announce a three-month investigation into the merger on Friday, Sasol and AECI’s parent company Anglo American Industrial Corporation have set a time limit on the board’s investigations. If the board fails make a recommendation to Trade and Industry Minister Alec Erwin within a ”reasonable” time-frame, the offer will lapse, Business Day reports.