Steel Industry Boosts Numsa Wage Offer to 6% From 4.4%

LOCAL NEWS

• Steel industry sweetens its deal with union Numsa to 6% from 4.4% as the strike runs into its 6th day. The union has yet to respond to the deal, but was previously asking for 8% in the first year and CPI+2% for the next two years.
  • Sefisa CEO says an extension of the strike would be devastating for employees, which has cost workers R100m in lost wages on the "no work no pay" policy. Also noted the effect on the economy as the steel industry shuts down for over a week
• Energy Expert Ted Blom says Eskom's load-shedding may be around for at least 5 years, blaming CEO De Ruyter's broken promises to conduct maintenance as and instead focus on renewables as the primary cause of the issue. Says this approach was ill-conceived
• National Treasury prohibits the use of imported cement in all Govt-funded projects, giving a significant boost to local producers. Treasury issued a circular this week detailing the new limits, which call for 100% local procurement.
  • All state entities, including national, provincial, and local authorities and state-owned enterprises, must, from November 4 this year, stipulate in tender invitations that only South African produced cement, produced with locally sourced raw materials, be allowed.
  • The move forms part of the government's plan to boost jobs and local economic activity through localization
• DA's Geodin Lewis says Cape Town is ready to bypass Eskom and move towards higher energy security by procuring power directly from independent power producers who are ready to ramp up supply in a matter of months if given the green light.
  • Additionally, residents and small businesses that produce their own power would be allowed to do so via the city's network. Says this would provide cleaner and more reliable supply. Notes Load-shedding in June cost R500m/day per stage, wiping out R25bn in value in two weeks