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'Tough empowerment tactics' - BEE conference for wine industry
"The South African wine industry is gearing up for what is expected to be one of the biggest events on the local calendar, an event that will change the face of the industry forever." So says the Wine Industry Trust (Sawit), about their forthcoming Black Economic Empowerment (BEE) Transformation Conference. The conference - jointly hosted and facilitated by SAWIT and the SA Wine and Brandy Company (SAWB) - takes place on 31 October and 1 November at the Cape Town International Convention Centre. In a press release under the heading "Tough tactics to transform and empower SA wine industry," Sawit says the conference's prime objective is "the development of a Wine Industry BEE Charter, aligned to the national Government Global BEE charter".
Gavin Pieterse, SAWIT chairman, says that less than one percent of South Africa's wine industry is currently black-owned - an indication that transformation in this sector is "long overdue". "The conference is an ideal opportunity for all key role-players to contribute to the formation of a meaningful black empowerment charter and will act as a catalyst facilitating authentic transformation in the wine industry. "Actual transformation in this sector has been non-existent; the conference is the first serious step towards making this a reality for all stakeholders. Transformation of this industry can only be achieved if proper governance is instituted, new ownership is encouraged and supported, and poverty alleviation is pro-actively addressed and if skills development is viewed as a critical imperative," he says. Pieterse moves on to explain that the conference will be used as a platform to debate the successes and failures of black empowerment within the wine sector to date, and to devise workable, practical BEE and transformation solutions. "SAWIT believes that these activities will ultimately allow it to achieve one of its key goals: the entry of previously disadvantaged individuals and groups into the mainstream by providing them with the necessary step-up to proactively grasp economic opportunities and activities offered by the industry at large. "The converence is subtitled 'Towards a Black Economic Empowerment Charter for the Wine Industry' ?we'll not reach that now, but the conferene is a first step to ultimately arrive at a charter that everyone ascribes to," said Mr Pieterse. The conference is expected to be attended by 300 representatives from every level within the wine industry including related bodies and communities such as the South African Department of Agriculture, Sawit and its Section 21 companies, commercial representatives, black entrepreneurs in the wine industry, local community representatives, wine producers, co-operatives and distributors. 'Partnership for change in place' - Sawit chairperson speaks out
"Every single trustee today displays independent thought and is prepared to make his or her own individual contribution in working together for the industry and ensuring that we deliver," he added. Mr Pieterse has been keeping a pretty low media profile during his first year in this capacity, but he explained in an interview with WineLand why he now felt the time was ripe to speak out and present the picture. And it's a truly positive picture that has emerged. He explained that in the first four years of the Trust's (Sawit's) existence, it had been "its own worst enemy," because of the unrealistic and clumsy structure dictated by the original Trust Deed. "But now Sawit has redefined its vision and mandate, cleared all obstacles and negotiated new ways of working, based on commonality of purpose.
"The first stumbling block to overcome was to unlock the impasse that existed with regard to the VAT status of Sawit funds. But an amicable agreement has been reached with SA Revenue Services - by which 50% of Devco allocations will be exempted from VAT. Both the 'ministerial trustees' and KWV representatives are satisfied with this. It's opened the way to address the real issues." The second problem had been the absence of a fully representative and credible industry leadership body with whom Sawit could collaborate. This has now come into place in the form of the SA Wine and Brandy Company (SAWB), whose Wine Industry Plan (WIP) is currently the subject of detailed input by Sawit with a view to enjoy its full endorsement. "We have been consulting closely with government on what they would like to see, so we will have a jointly endorsed strategy with components from Sawit and government input, with SAWB representing the industry's input. "There is, in fact, a very strong emerging relationship between Sawit and the SAWB, who will participate in the BEE conference - a goal of the conference, entitled 'Towards a BEE Charter for the Wine Industry', will be to seek firm benchmarks, targets and a scorecard for BEE progress. We're acting in concert and all development is being driven collectively ... Sawit is actually government's window into the industry.
"We cannot continue to fund blindly and, for instance, have to ensure that new wine entrepreneurs are supported. There has to be the realisation that business can't just go on as usual ? with the same people benefiting and the same markets being targeted. It makes our lives a great deal easier to have a central point of contact - based on the Memorandum of Understanding between us and the SAWB that is currently being defined." Meanwhile, another major development for Sawit was a new structural arrangement - "the previous one has been too unwieldy; it was impossible to get decision-making through.
Then there will be an Exco of three ministerial (including Pieterse as chair) and two KWV members. "This will be a more hands-on, practical and flexible arrangement to ensure rapid decision-making. "We've also streamlined the boards of Devco and Busco, and included representatives directly from the communities and organisations being served, including Sharon February and Piet Waterboer (workers' representatives) at Devco and both Jan Booysen (Winetech) and Mike Ratcliffe (Warwick) on Busco. "Now the funding allocation percentages need to be reviewed - the central focus will have to be more on development and empowerment rather than regulatory functions over time. A higher proportion will have to go to Devco, towards critical equity and business entrepreneurial funding ? we must move away from the practice of throwing money at symptoms of deeper underlying problems, and focus on creating a healthy balance between social welfare challenges and meaningful economic activity. "Banks and other institutions will have to be brought in for additional funding - this particularly also for long term sustainability, as the KWV funds - totalling R470 million - have another six years to go. "These are the key changes of which we can tell the world for the first time; this is what we can fund and will support - and we have the capacity to measure the effectiveness and be accountable for every cent we spend," concluded Pieterse. 'Salary too little ... can't sleep well' - farm worker comments
This was the last comment from a list of "views and thoughts around the subject of Black Economic Empowerment" presented by Vukile Mafilika, a member of the Black Association of the Wine and Spirit Industry, at a workshop on BEE progress measurement hosted by the SAWB. Mr Mafilika explained that he and fellow Bawsi member, Lesley Fillis, interviewed eight members of a Paarl wine farm, whose owner refused that the so-called "focus group" meeting be held on his farm. The meeting was held on a neighbouring wine farm, but the owner later indicated that we would not have problems with follow-up meetings on his farm, as he had initially misunderstood the nature of the meeting. The comments in Mr Mafilika's report highlight the main sources of concern and problem areas among farm workers, but also show considerable misinformation and even naiveté on what empowerment and life improvement is all about. The workshop was conducted in Afrikaans, the mother tongue of the participants, whose ages varied from 26 - 53 years and service periods on the farm, from 5 - 20 years.
The following is an abstract, with the farm workers' names withheld: Black Economic Empowerment is a government-initiated strategy to empower black people to market their wines in international markets. Black people should be given an opportunity to show that they can also try to help the economy.
My wages was R120 per week when I started here. I was not satisfied about that. Now I get R250 per week. My situation has improved. My life has not improved, though. I can say I am not truly empowered. People have had difficulties. Farmers have done things as they like. Farmers have allocated farms only to themselves. There are lots of opportunities. They are giving the money away from the farm. In terms of training they give the opportunity, but the work gets outsourced. Suppose you work with the fencing of the farm. Then they give the job to somebody from outside, but we can also do the same work.
To manage a farm is not easy for one man. It is not work for one man. You must also manage the people, you must work with the books, how to communicate with the people, that is the work of the man who must manage the farm. It's going to be very difficult because the bank ask you for everything, security et cetera. It does not feel good. Our salaries are too low. The bank must lower its criteria.
If we are on the road to empowerment we expect to take part. I think that is right. We must make interviews. We must know how to manage business. Can the manager under whom I work give me the opportunity to become a winemaker? Can I have the right to get the knowledge, but I am not a permanent worker, is there not going to be a clash there?
The farmer always makes the decisions, what you must do. My opinion is that we must speak in a group. Maybe the other person does not agree with the group. He will oppress him.
If we have a trade union then we stand a chance, it can get better. A trade union stands a good chance to press for a policy on employment opportunity and to influence the employer.
Good salaries, medical aid for farm workers, housing, we must get houses that are outside the farm, independent from the farm.
Black empowerment must take place properly. Good organisation. Black empowerment must be funded properly so that there can be good businesses. There must be good funding for farm workers.
If you can get your own house, good security then you can go to the bank.
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