| 6 July 2005 |
| Millers face retrenchment |
| By Lynette Louw |
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Verulam Sawmills is one of 10 small sawmills that might have to close down after hearing that it would not receive any timber from Komatiland Forests for the 2005/2006 contract year.
According to Edward Ferreirinha, director and co-owner of Verulam, they received the notification last Tuesday, three days before the new contracts were suppose to be implemented on July 1. “We were knocked off our feet by this announcement as we received verbal confirmation from Komatiland’s regional managers earlier in June that timber volumes had been allocated to all of us,” he said.
According to Ferreirinha they submitted their quotations in mid-May, like they did every year. “In mid-June we learnt that the allocations were made 80% on the price of quotations and 20% on track record, Black Economic Empowerment (BEE) participation and other social issues,” he said.
Barry van Niekerk established Verulam in 1968 and Ferreirinha bought it in 1983. Employment increased over the years from the original 200 to 270, an increase of 30%.
“In that time we’ve built up a sound track record. We have never retrenched a worker or worked short time.
If we have to close down, approximately 3.000 people will be without an income as one wage owner support about 15. Our staff turnover has been very small and some workers that has been here for 15 years,” Ferreirinha said.
According to Joe Coetzer, acting CEO of Komatiland, there is a shortage of logs in the province due to the devastating forest fires in 2003.
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| If Verulam Sawmills have to close down at the end of July 270 workers would be without jobs. |
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“To my knowledge there is 40% more timber offered on the open market this year than the previous year. They are also still drawing up a BEE charter for the sawmill industry and it will only be available at the end of this year or in 2006.”
Ferreirinha added that the big sawmills were working double shifts to get through all the timber they receive. “They wouldn’t have to work these double shifts if the small sawmills were allocated the extra timber. We aren’t attacking Komatiland, just asking for a fair system,” he said.
The larger sawmills should not receive the small contracts as well. The whole situation was causing panic among clients as they would now not be able to deliver any timber to them.
Apart from the job losses, between R10 million and R30 million in investments per sawmill will be lost. “We are not worthless plants and have lost tens of millions of rand. I have enough timber for the next three working days,” Ferreirinha said last Friday.
Another company in Barberton that is directly affected by this is Glen Garry Sawmills on the Badplaas Road. According to the manager, Terence Jenkins, their contract hasn’t been renewed either. “We have 90 labourers at the mill and at the moment their future is uncertain,” he said.
A delegation from the smaller sawmills had an appointment with the minister of forestry and water affairs in Pretoria on Monday to discuss the situation. Barberton Times spoke to Ferreirinha late Monday afternoon. “This was a waste of time as the minister could not meet us due to another engagement. She sent her advisers who listened to our problems and would convey our message to her,” he said.
The delegation would now arrange a meeting with the managers of Komatiland to try to sort out the problem. “Our last resort would be an organised march. Time is running out and if we don’t get answers soon,. We will have to start giving people notice,” Ferreirinha concluded.
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An internal investigation is being conducted against an employee at the Barberton office of the department of labour.
Xoli Vilakazi has allegedly defrauded unemployment insurance fund (UIF) claimants. It is alleged that he took a cut of the unemployment payment to claimants without their knowledge
He has denied the allegations.
Nelson Mahaba, manager of Barberton department of labour, declined to comment on the matter. “I can’t comment on this issue because it’s still sub-judice,” he said. Sekhothali Lerotholi, assistant manager of communications in the provincial department of labour, confirmed that there was a charge of fraud investigated against an employee within the department in Barberton.
“At this point in time I cannot release any information because the case is still pending,” she said.
During the progress of the investigation, Vilakazi resigned and joined the department of correctional services (DCS).
However, it discovered that labour was investigating him and his service was terminated.
Sarie Peens, DCS spokesperson for Limpopo, Mpumalanga and Northwest, confirmed that the department informed Vilakazi that an application for employment in the DCS has been conditionally approved, on March 17, 2005 in accordance with Section 3 of Correctional Services Act No 9111 of 1998.
“All appointments are subjected to certain conditions. That include certain agreements and it’s the responsibility of the applicant to acquaint himself with the prescripts. Any offence, civil or criminal irrespective if a minor or still pending, must be declared,” Peens said.
When Vilakazi was finally reached for comment he said that he is not aware of any allegations of fraud against him.
“The reason my service was terminated at correctional services was because I didn’t follow the right channels when I resigned. I believe the department of labour acted unfairly towards me and I have lodged complaints against it,” he said.
Vilakazi said he wanted to be reinstated at DCS because he as far as he knew, he was not implicated in any scandal.
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At the Bundes Garden Show that was held in Munich during June, the Gerbera Association South Africa had a display featuring Barberton with the emphasis on the Barberton daisy and the history of Robert Jameson.
They received a gold medal in the category: educational displays.
Peter Ambosrius, honorary member of the association, organised the exhibition.
Due to its success, the Gerbera Association was invited to participate in another exhibition in July.
The theme of this exhibition will be “The Gerbera Association in Barberton” with the emphasis once again on the Barberton Daisy.
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