Page 1 of 6 123 ... LastLast
Results 1 to 10 of 56

Thread: Microlenders to blame for wage demands

Hybrid View

Previous Post Previous Post   Next Post Next Post
  1. #1
    Moderator IanF's Avatar
    Join Date
    Dec 2007
    Location
    Jhb
    Posts
    2,679
    Thanks
    197
    Thanked 529 Times in 405 Posts

    Microlenders to blame for wage demands

    This article rings true and is worrying Trevor Manuel blames Microlenders

    UNSECURED lending is a significant factor in unprecedented demands for a 100% wage hike, Minister in the Presidency Trevor Manuel says.

    Addressing a conference in Sandton on Thursday on business and transparency, Mr Manuel said unsecured lending also played a role in the deaths of 34 miners killed at Lonmins Marikana mine last year after a standoff over wages.

    Mr Manuel blamed microlenders for the high wage demands issued by the Association of Mineworkers and Construction Union (Amcu).

    Amcu is seeking increases of more than 100% for all unskilled and semiskilled employees in the gold sector. Its demands include a minimum entry-level wage of R11,500 for surface workers and R12,500 for underground workers.

    At present, the minimum wage in the gold industry is about R5,000 and varies slightly according to mining houses.

    "There were 13 microlenders operating in that small community," Mr Manuel said. "Many of the workers didnt see up to about 40% of their income."

    Mr Manuel said most employees had garnishee orders in place and never saw their salaries. He said one microlender had been charging interest of 30% a month.

    Mr Manuel said unsecured lending was also a factor in corruption. The amount of borrowing needed to be reduced.

    Analysts seem to concur with Mr Manuels sentiments.

    Imara SP Reid research head Stephen Meintjes agreed, but said there were other factors as well.

    "Yes, we believe its a significant factor but we must understand that unsecured lending took place in other sectors as well. But it is undoubtedly a factor," he said

    South Africa has seen sharp growth in unsecured lending over the past five years, raising concern about a credit bubble consumers ability to repay their loans.

    Figures from the National Credit Regulator show the total amount of unsecured lending has grown fourfold from R7bn to R29bn.

    The annual growth rate has moderated since peaking at 67% in the first quarter of 2011.

    The Reserve Bank said in its financial stability report in March that the banking sectors total gross unsecured credit exposure rose to R441bn in the fourth quarter, from R398bn in the previous quarter.

    It was against this background that Mr Manuel said microlenders had also become a huge problem for the country.

    A senior analyst from Avior Research said: "It is possible, there are a lot of loan sharks out there who put the miners under pressure."

    The South African Human Rights Commission (SAHRC) organised the conference, at which Mr Manuel was the keynote speaker.

    The gathering brought together a number of businesspeople, academics and members of government to discuss the role and relevance of transparency in the business sector.

    SAHRC deputy chairwoman Pregs Govender said there was a need for proper compliance and transparency in the business sector. She said the conference was aiming at best practice and, through engagement on issues related to corruption, ensuring business enjoyed the benefits of transparency.
    I haven't had the pleasure of having garnishee orders for my staff but have seen how this lending screws up people's lives. What is worrying me is the one solution is to demand higher wages instead of educating the masses into a savings culture. Then the addon costs that these guys incur when lawyers phone and insurance and whatever is sickening.
    The government is trying with the NCA but needs more education for the poor suckers who get caught in this. I just can't see how the people involved in this feel it is moral.
    Anyway rant over.
    Only stress when you can change the outcome!

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by IanF View Post
    I haven't had the pleasure of having garnishee orders for my staff but have seen how this lending screws up people's lives. What is worrying me is the one solution is to demand higher wages instead of educating the masses into a savings culture. Then the addon costs that these guys incur when lawyers phone and insurance and whatever is sickening.
    The government is trying with the NCA but needs more education for the poor suckers who get caught in this.
    Teach everyone one thing to put the brakes on this - the in duplum rule. And it's an area where businesses can help when it comes to garnishee orders too.

  3. #3
    Moderator IanF's Avatar
    Join Date
    Dec 2007
    Location
    Jhb
    Posts
    2,679
    Thanks
    197
    Thanked 529 Times in 405 Posts
    Quote Originally Posted by Dave A View Post
    Teach everyone one thing to put the brakes on this - the in duplum rule. And it's an area where businesses can help when it comes to garnishee orders too.
    Dave I wonder why Trevor Manuel did not bring this up or maybe it was ignored by the reporter? Have you used this yet?
    Only stress when you can change the outcome!

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by IanF View Post
    Have you used this yet?
    I have one staff member with a garnishee order, and the time for me to declare the debt satisfied (by virtue of in duplum) is drawing close. It's going to be interesting moment, I'm sure.

  5. #5
    Moderator IanF's Avatar
    Join Date
    Dec 2007
    Location
    Jhb
    Posts
    2,679
    Thanks
    197
    Thanked 529 Times in 405 Posts
    Quote Originally Posted by Dave A View Post
    I have one staff member with a garnishee order, and the time for me to declare the debt satisfied (by virtue of in duplum) is drawing close. It's going to be interesting moment, I'm sure.
    Dave any feedback on the in duplum declaration?
    Only stress when you can change the outcome!

  6. #6
    Diamond Member
    Join Date
    Apr 2010
    Location
    planet earth
    Posts
    3,943
    Thanks
    153
    Thanked 317 Times in 287 Posts
    The bling is confusing people, the big TV, the fancy car, etc. The problem is not the bling, it the access to the HP for the bling. I agree that the micro lenders and banks are to blame, its a vicious circle. The bank gives the money to buy the house, the person can afford the house but not all the other commitments and bling which comes with owning a house, rates and taxes etc, so they go borrow money, now because they have a house they get credit and so the cycle begins, the more debt the more loans.

    For people who have better salaries or jobs get credit cards and the same thing they roll credit cards, pretty much the same thing the micro lenders do to the less fortunate people.

  7. #7
    Bronze Member msmoorad's Avatar
    Join Date
    Jan 2009
    Location
    durban, SA
    Posts
    179
    Thanks
    34
    Thanked 29 Times in 26 Posts
    Quote Originally Posted by ians View Post
    The bling is confusing people, the big TV, the fancy car, etc. The problem is not the bling, it the access to the HP for the bling. I agree that the micro lenders and banks are to blame, its a vicious circle. The bank gives the money to buy the house, the person can afford the house but not all the other commitments and bling which comes with owning a house, rates and taxes etc, so they go borrow money, now because they have a house they get credit and so the cycle begins, the more debt the more loans.

    For people who have better salaries or jobs get credit cards and the same thing they roll credit cards, pretty much the same thing the micro lenders do to the less fortunate people.
    you are correct

    and then when any programme is launched to teach people how to manage their money, its almost laways the banks or other lending institutes that sponsor it.
    talk of a conflict of interest
    their advice is not really the soundest cos they still make it seem as if borrowing from the bank etc or buying on HP is OK but they "teach" people not to borrow more than they can afford to make payments on monthy.

    the best advice is to only buy for cash
    until u can afford it, do without it

    and we know how difficult it is for those who have been deprived for so long & suddenly have access to everything to control themselves.
    A conspiracy theory no longer means an event explained by a conspiracy. Instead, it now means any explanation, or even a fact, that is out of step with the governments explanation and that of its media pimps.

  8. #8
    Diamond Member
    Join Date
    Apr 2010
    Location
    planet earth
    Posts
    3,943
    Thanks
    153
    Thanked 317 Times in 287 Posts
    I got into a habit of always keeping my suppliers aware of my intentions and up to date with what was going on. I found they will let you ride out any cash flow issue you have for example or if you have a bad paying customer. IF I say I am going to pay on the 15th then I pay on that date, if I cant for some reason I make them aware days in advance.

    It worked well until recently when one of the suppliers was bought out by someone else, I paid R30 000 as I promised on the Friday afternoon, Monday morning I went in to buy more stuff I was told my account was on hold, I battled for a month or 2 to scratch the money together to complete the project, got paid the full amount and paid all outstanding debts, except 1, that was last year in October, they are still trying to get the balance of the money out of me. The money is sitting in a savings account while they sort out all the legal stuff. Their lawyer sent me a whole lot of warning threatening letters, I am busy negotiating a settlement figue less the lawyers fees and less than the original figue.

    My point...stick to your word and communicate with people it makes life so much more pleasant.

  9. #9
    Junior Member
    Join Date
    Mar 2013
    Location
    Pretoria
    Posts
    21
    Thanks
    1
    Thanked 0 Times in 0 Posts
    Mirco lenders quench the drinking addicts and its a double blow to ones pocket. Very seldom employees borrow with a genuine cause, in the event of a genuine cause then they approach the employer and how often does one have such requests not from perverts

  10. #10
    Full Member polpak's Avatar
    Join Date
    Jun 2013
    Location
    Australia
    Posts
    33
    Thanks
    16
    Thanked 6 Times in 5 Posts
    Always are those who offer more, without being clear of costs... Is there a need for more financial
    education, perhaps simple budgeting mandatory ?

    The difference between chaos and living, is managing debt repayments.

Page 1 of 6 123 ... LastLast

Similar Threads

  1. Unfair wage structure??
    By deejaypsy in forum Labour Relations and Legislation Forum
    Replies: 3
    Last Post: 31-Jan-13, 07:54 AM
  2. 5 % wage increase
    By murdock in forum South African Politics Forum
    Replies: 0
    Last Post: 26-Aug-11, 05:42 PM
  3. Easier to blame.
    By tec0 in forum General Chat Forum
    Replies: 2
    Last Post: 04-Jan-10, 11:35 AM
  4. The SA electrical power shortage - who is to blame?
    By Dave A in forum Electrical Load Shedding Forum
    Replies: 2
    Last Post: 06-Feb-08, 09:31 AM
  5. Letter of Demands
    By jazz in forum National Credit Act Forum
    Replies: 1
    Last Post: 02-Dec-07, 09:56 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •