Metals Industry strike - my take

[irisyang]

what we can do is to keep peaceful of our society...

[IanF]

well obviously one cannot speak on behalf of someone else. One can speculate but that is all it would be "speculation"

Teco I think you meant except then it makes sense here is an explanation Anyway how do we stop the confrontation between employee and empoyer?

[tec0]

Teco I think you meant except then it makes sense here is an explanation Anyway how do we stop the confrontation between employee and empoyer?

Honestly why don't you answer that question. I have been up for over 48 hours and my mind is not thinking clearly. When I have time to sleep I will have a look at the labour laws contact a few friends schooled in laws and if he is willing explain to me in layman terms what is written and what was amended and why.

like any situation you need to know what have changed. As I was corrected by your local labour Guru the laws have changed and my knowledge as it stands is outdated so my conclusions may not even be applicable.

Actually why not ask your local Guru this question. He is clearly qualified and knows the law by heart and according to other members he is credible so ???

There you go Mister Greig Whitton, the stage is all yours.

[PeterRich]

To be honest, I really don't think that the legal requirements for dismissing an employee are that onerous. Obviously it is a lot easier for an employee to quit their job than it is for an employer to fire someone, but I don't agree that requiring employers to have a fair reason for dismissing someone and giving their employees an opportunity to respond to those reasons is that unreasonable.

Furthermore, there are some employers that have no interest in complying with any labour regulations - even those that are reasonable and fair - and have used labour brokerers to exploit their workers without breaking the law. Which is why the changes to the Labour Relations Act will make these practices illegal.

Consider the dilemma of a small business. A few of the skills he requires. Firstly he/she needs to be an expert in his field, and in addition, financial skills, selling skills, management skills, business law, employing skills, laws governing contract, labour law and all this on a budget that would fold any corporate.

What happens when someone is employed. A mistake was made due to lack of skills or psychometric testing could not be afforded. Should such a company be allowed to fold because he could not afford to comply with the labour laws

If just one person develops a bad attitude, that company is at the risk of folding. A small company seldom has the time, energy, money and often lacks the skills to deal with these situations.

Your comments are valid, but cannot be as broad based as you may be suggesting

Do you you beat up your baby, because it can't walk well yet?

[Greig Whitton]

Consider the dilemma of a small business. A few of the skills he requires. Firstly he/she needs to be an expert in his field, and in addition, financial skills, selling skills, management skills, business law, employing skills, laws governing contract, labour law and all this on a budget that would fold any corporate.

As a business owner myself and someone who helps other entrepreneurs, I very much sympathise with the challenge that you have perfectly summed up. So many of my clients began their business because they excelled at a particular trade or skill - be it catering, IT, engineering, or some other profession - only to discover the hard way that building a business around those talents involves a whole different set of complex skills.

We absolutely need simpler, less onerous rules - particularly with respect to our labour laws. But that does not mean that all regulations are bad. And when it comes to dismissal situations, I don't think that our laws are particularly complex:

1. Don't fire someone unless you have a fair reason (e.g. poor performance, incapacity, misconduct, operational requirements).
2. Before you fire someone, explore alternatives to dismissal and give the affected employee an opportunity to respond to your reason for firing them.

You don't need to be a labour law "guru" to get to grips with this. I've sat down with clients and explained it to them in half an hour or less. I've written plain English business guides that require less than an hour to read and apply.

Part of the problem is that many small business owners don't want to learn, or assume that it is a lot more complex than it really is. They want the freedom to do as they please. And in some respects, they do deserve more freedom. But dismissal is not one of those situations. You can't have business owners (irrespective of the size of their company) firing people on a whim. It would lead to exactly the sort of exploitation that labour brokering has been used for (not, of course, to suggest that all labour brokers or their clients are exploitative).

As you correctly point out, business owners often make mistakes due to a lack of business expertise. But their employees shouldn't have to pay for those mistakes. Being a business owner opens up fantastic opportunities, but it's not without risk or responsibility.

[Slow Blow]

60K cash a month, no K4's, fook em all

[adrianh]

As a business owner myself and someone who helps other entrepreneurs, I very much sympathise with the challenge that you have perfectly summed up. So many of my clients began their business because they excelled at a particular trade or skill - be it catering, IT, engineering, or some other profession - only to discover the hard way that building a business around those talents involves a whole different set of complex skills.

We absolutely need simpler, less onerous rules - particularly with respect to our labour laws. But that does not mean that all regulations are bad. And when it comes to dismissal situations, I don't think that our laws are particularly complex:

1. Don't fire someone unless you have a fair reason (e.g. poor performance, incapacity, misconduct, operational requirements).
2. Before you fire someone, explore alternatives to dismissal and give the affected employee an opportunity to respond to your reason for firing them.

You don't need to be a labour law "guru" to get to grips with this. I've sat down with clients and explained it to them in half an hour or less. I've written plain English business guides that require less than an hour to read and apply.

Part of the problem is that many small business owners don't want to learn, or assume that it is a lot more complex than it really is. They want the freedom to do as they please. And in some respects, they do deserve more freedom. But dismissal is not one of those situations. You can't have business owners (irrespective of the size of their company) firing people on a whim. It would lead to exactly the sort of exploitation that labour brokering has been used for (not, of course, to suggest that all labour brokers or their clients are exploitative).

As you correctly point out, business owners often make mistakes due to a lack of business expertise. But their employees shouldn't have to pay for those mistakes. Being a business owner opens up fantastic opportunities, but it's not without risk or responsibility.

Well said.

[adrianh]

[FONT="]The ultimate problem[/FONT]: Forcing human capital to work happily for an amount the employer determines

I disagree, the ultamate problem is a third party holding a wedge between employer and employee.

I say this because my staff and my famility have overlapping lives because not only do we have similar problems they also work at my home. We have a very clear understanding of their issues and they have the same understanding of ours. When they don't deliver nobody gets paid and sometimes they do deliver and the customer doesn't pay so they still don't get paid. We all sort of suffer together. When things pick up we all share in the spoils. Ok, so what I am trying to say is they work hard and we work hard and we all have our nuts on the same line. They understand that there is a light at theend of the tunnel but that it is up to each and every one of us to suffer together till we reach that light. It is their choice, they are free to leave if they want, they understand that if they don't do the work then mywife and the girls and I will do it and it will get done with or without them. They cannot hold us at ransom simply because there is nothing that they can do that we cannot or will not do ourselves. Ok, so what would the situation be with a union shop steward wedged between us and the workers, well for starterse wouldn't have the level of personal contact that we do. They would be the workers and we would be management. They would stop all work if their salaries are paid late and that would simply worsten the situation because now more work isn't getting done. We would be unable to address issues as they arisebecause all communications have to go via the union...etc..

Anyway, to cut a long story short, I have no time for unions and I believe that they are the single most destructive force not only in the workplace but also in this country. I have witnessed numerous smallish businesses close down due to unionisation and the militancy that goes with it and I vow that I will close my doors before I will allow a arrogant incompetent knitwit to dictate to me and my workers what we may and may not do.

[cyppokagain]

One of the reasons I got here was following metals prices vis a vis geopolitical and macro/micro impacts.

Two things the mines in SA suffered from was capital wasn't being put in due to all the regulation, BEE(taxes), and other aspects which not only limit capital returns at the time of investment, through the development and mining phase but also at the time of equity return and capital recycling. The second aspect is capital investment in other locations where you could be certain of capital you put in remaining yours and labor being substituted by more intensive(underground) development. Think Finland and Canada where and underground mine might cost a multiple of what it would in SA but if you lay things out long term it becomes cheaper since the fixed costs amortize over time and theoretical inflation or deflation would help you recoup a larger share of capital due to labor/capital machinery break-down. Regulation regarding pollution may be tougher but capital certainty regarding ownership and benefits is also carries more trust.

The only way to keep a society going is to have everyone have a stake that they earned, and not just phantomly redistributed based on someone's preconceived notions today and then tomorrow, and then after that and so on. Everyone should be able to have a chance to participate in the market and make ends meet. Gov't wants barriers because it gets fees from entry/exit/participation and so on irrespective of weather there is growth through the system or it simply stagnates.

[gac]

And the truth is that throwing more money at employees doesn't necessarily improve the level of initiative - initiative is an ingrained attitude to life in general and it can only be rewarded when displayed - not rewarded in advance in the hope it gets displayed.

[Greig Whitton]

I say this because my staff and my famility have overlapping lives because not only do we have similar problems they also work at my home.

Great post, Adrian. Would you mind elaborating on this part? What sort of business do you run? Did you make the decision to have employees live with you from the start, or did it evolve over time, or was it a practical necessity? How are disagreements and conflict resolved, especially when your personal and professional boundaries are so intertwined?

[adrianh]

Great post, Adrian. Would you mind elaborating on this part? What sort of business do you run? Did you make the decision to have employees live with you from the start, or did it evolve over time, or was it a practical necessity? How are disagreements and conflict resolved, especially when your personal and professional boundaries are so intertwined?

Let me give you a bit of history and insight into my world.

I spent 20 years in IT programming, DBA'ing, project managing etc. My wife is q ualified heavy current technician and she spent 17 years working for ESKOM in planning and finance. I was never cut out for the corporate thing because I was too much of a loskop hard@$$. I got pushed out of a company about 10 years ago, mostly because I was a twat at the time (but that took me a long time to realize). I made the fatal mistake of distancing myself from an industry that I love because I hated the people. I then started a little business from the house and it slowly developed. When I say slowly I mean really slowly, I don't think that there is a mistake that one could make in business that I haven't made. My wife left ESKOM about 3 years later and joined me. The idea was to build our own little thing so that she could have the freedom to spend time with the kids and also do the admin / financial side of things. It has been very difficult financially and we have learned to get by with next to nothing. We earned good salaries while we were employed but we were both terribly unhappy. We spent many years scraping the barrel though we had a lot of support. We put absolutely everything into the venture and I would say that even though we have had an absolutely terrible financial time we became happier and happier. Things started picking up as the entire business process started to be formalized and we started to develop a smallish but good client base. The business is now in what I suppose is called a "consolidation phase" we have good products, customers, reps, staff, manufacturing methods, equipment and financial support that we need. This phase is where all those ingredients are clearly documented and turned into clearly defined processes and procedures. I have a crystal clear idea of what I need to do to accomplish this task and it is going to take me finding or writing a custom business management system to suit our needs. Our "business information" is simply too scattered and ad hoc to be of any real practical use.

Ok, now to what we do. let me start the discussion by telling you about the technologies that we use on a daily basis and then work backwards: We do 2D & 3D drawing and design, laser cutting, cnc machining, mould making, resin casting, white metal casting, brass etching, vinyl cutting, sublimation printing, pad printing, airbrushing, small scale microprocessor electronics...and very much anything else that one can do in a smallish workshop. We do ad hoc work to a small degree but mostly concentrate on our own in-house products.

Ad-hoc work
========
Laser cutting for Architectural students, architects, producers of jewellery, art, toys, wine boxes, model aircraft, quilting and sewing industry, model robots....the list goes on...
Silicone mould making for the soap, toys, parts, jewellery and all sorts...
Model building on commission We built 1:24 scale locomotive and coach models for Spoornet, developed a 1:35 scale armoured car model for a Pretoria based manufacturer, a 1:72 pylon racing tower and lots more.
We print t-shirt, mouse pads and make all the gifts for all the local kids.

In-House products
The business then has two separate but related entities; Hillcraft (non model related) and Scalecraft (Scale Modelling)

Hillcraft
=====
We manufacture various product sets aimed at various markets: The products are basically similar but themed appropriately per market (lets call them decorative products) laser cut mirrors, keyrings, bookmarks and many others.
Then we also make large dollhouse kits and various other knock down laser cut kits such as drawer systems, trays etc.

Scalecraft
======
Ok, now this is where all the fun happens. We are THE largest manufacturer or South African Railways scale model trains in the world. We currently focus of HO which is 1:87 scale but we will move over into other scales as well over time. We are able to produce most of the rolling stock the the SAR had in the olden days. I think that we currently do about 300 different models sporting up to 7 different liveries each. You name the train, we've built it, the various Blue Trains, Royal Train, Drakensberg, the various renditions of the Union Limited, premier Classe, Trans Karoo, Orange Express and many more. We do numerous locomotives, electric, diesel and steam. lots of building, and many more products. We also manufacture building jigs to hold the trais while you work on them, model trays, track laying guides.....and lots more.

BTW: We also supply ROVOS Rail with models of their rolling stock that they sell on to their customers. We do 30-50 models per month for them and we are able to manufacture every single coach and locomotive that they have in their fleet.

Ok...now you know what we do.

With regards to the structure of the business
============================
My house is a workshop. The double garage is full of gear, a pad printer, a laser and casting equipment, the (what used to be the lounge) sports a laser, a cnc mill, brass etching equipment and lots of computers. Of course the kitchen is a storage / packing area and what used to be the dining room is now the library, $hitpile and, well that's where it goes when you don't know where to put it. I love what I do so I am at it 16-20 hours a day. My wife is at it as well when she isn't busy with the kids. The situation is perfect for us because I am always busy making something or the other and as such am able to run multiple jobs simultaneously. I certainly wouldn't trade the setup for anything else, it would be great to build on more space though.

You see, this is why I say that our lives overlap with the staff. They get here anytime from 7am to 9am. Sometimes the kids are here, sometimes I am still half asleep and so on. We operate as a fairly close family because we are, believe it or not, actually very caring people. My wife is an admin / finace guru and help the staff with everything from sorting out visas to opening bank accounts and dealing with Unisa documentation. The staff grow with us and I let them use my equipment and stuff if the need arises. None of them make a lot of money and they do need to deal with their own personal $hit. It is really a two way street, we help them build their lives and better themselves and they do their level best to get all the work done. Of course the local guy has his momnets but he isn't all bad, he is just like one of the kids that needs a bit more attention. A lot of people would say that it is a terrible situation to have people in your house all the time but it is not so, we are very loyal to them and they are loyal to us. Like I said, when money doesn't come in then we all sit up the creek together.

I suppose that this would all change as the company grows and that is ok. I think that we could put more distance between us if we weren't so terribly reliant on one another. The bottom line is that we would not have been able to develop the business without this absolute single minded drive to create something out of nothing. I am honest when I say that the business may be mostly my brainchild but it sure as hell has them to thank for bringing it to life.

You asked about disagreements and conflicts. They rarely occur because there is only one mantra at the moment and that is production. Each person has a role and the bottom line is very simple, we all do what we are supposed to and we accept that mistakes happen, we deal with it immediately and move on. The great thing about me being as hands on as I am is that there is hardly anything that they can do wrong that I haven't messed up on numerous occasions myself. As long as we learn it is all good.

Man I tell you, if I could put down an appropriate Business system & IT system tomorrow and fill it with our data the world will be my oyster.

You can see the models and stuff here https://www.facebook.com/Scalecraft
and look at the catalogue here http://issuu.com/hillcraft/docs/scal...gue_2014_06_01

Greig, you should come over one day so that I can show you around. You will see that we live/work/operate in a happy/productive/ultra creative and somewhat off the wall environment.

[Greig Whitton]

Thank you for taking the time to provide such generous insight into your world!

Man I tell you, if I could put down an appropriate Business system & IT system tomorrow and fill it with our data the world will be my oyster.

Have you approached your local SEDA branch for assistance with this? Alternatively, it might be worth checking out the Graduate Asset Programme for a suitably skilled graduate (i.e. someone with a business admin and/or IT background) who is looking for an internship / working experience.

Greig, you should come over one day so that I can show you around. You will see that we live/work/operate in a happy/productive/ultra creative and somewhat off the wall environment.

I would love to take you up on that offer. The next few months are particularly crazy for me, but nearer the end of the year would be good.

[adrianh]

Great.

I would love to take you up on that offer. The next few months are particularly crazy for me, but nearer the end of the year would be good.

I must admit that the irony of this statement is truly...well how shall I put it....rather odd.

Let me explain why I find the situation quite amusing.

A company who calls itself "Evergrow" which claims to be "Helping South African business owners grow their business without the growing pains" is totally oblivious to its own poor marketing strategy. Think about it, I run a small company that is growing at a tremendous rate and is struggling with all sorts of issues and is looking to implement not only a business system but also an IT system. I invite you to come around a have some coffee. Your response it that you are too busy for the next 3 months to drive to Goodwood and drink a cup of coffee with a potential client. The trip would take maybe one hour out of your day and you could even pop in at Canal Walk on the way back.

Please don't get me wrong, I am quite happy to do without your services. Our interaction crystalized the following thought in my mind....(me having two teenage daughters and all)...

It is not what we claim to know, nor what we aim to teach, but rather the footprints that we leave to light the path for those whom we wish would follow!


Peace brother!

[desA]

Clipped 'im, adrianh - got under his facade.