BUILDING: CT Building Council Shows Growth
Recent Western Cape Business News
General consensus seems to indicate that a slow down has reached the building industry, however, the Bargaining Council for the Building Industry (BIBC) has announced an increase of close to 5% in contributions. “Our March figures, which represent the first five months into the Council or building industry’s 2008/2009 year, show that contribution purchases are up by 4% compared with the first five months of the 2007/2008 year,” said Henry Strydom, Secretary for Building Industry Bargaining Council (Cape of Good Hope).
In addition to this, the Council announced that the financial income, derived from the contributions and levies, is up by 23% for the same period. This translates into a real increase of contributions in financial terms of about 16%, taking into account that the industry enjoyed a 9% wage increase. The contributions referred to are daily contributions to pension and provident funds, annual leave and bonus funds, medical aid and sick pay funds as well as council levies.
Strydom has warned against drawing the immediate conclusion that the building industry has not been effected by a downturn in the economy, suggesting that this positive growth may show other trends. “It is likely that the industry is attracting a greater number of smaller traders, or perhaps that the industry is responding to the BIBC’s call to register and thereby become compliant, which is essential if we are to regulate this sector,” explained Strydom.
Strydom concluded, “The Council is increasing its presence within the industry and the designated agents are visiting as many building sites as is possible. Armed with statutory powers granted in terms of the Labour Relations Act, employers are urged not to refuse inspectors entry into any building site at any time. To refuse such agents will construed to be defeating the ends of justice, which in itself is a serious contravention”.
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