Civil Engineering nOVEMBER 2021 | Vol 29 No 10

56 November 2021 Civil Engineering N ational Treasury has officially designated cement, which means that as of 4 November 2021 the use of imported cement is prohibited on all government-funded projects. National Treasury has issued a circular of the new ruling to all relevant state departments in terms of the Preferential Procurement Regulations. The designa- tion prescribes that all organs of state must, from 4 November 2021, stipulate in tender invitations that only South African produced cement, made with locally- sourced raw materials, will be allowed for use on all public sector construction projects. National Treasury has stipulated a 100% threshold for both common and masonry cements. According to Bryan Perrie, CEO of Cement and Concrete SA (CCSA), the ce- ment industry, which has been lobbying for state protection against cheaper imported cement for several years, is delighted at the designation of cement. “This is an important ruling to protect a sector vitally important for the national economy. Furthermore, it has come at the right time in view of the multi-billion rand infrastruc- ture projects planned by the government over the next three years,” he states. The government last year announced 50 strategic infrastructure projects and 12 special projects as the initial phase of a wide-ranging infrastructure spending programme to aid post-pandemic re- covery efforts. “The designation of cement will assist in protecting the local cement industry from unfair competition. In countries such as Kenya, for one, rampant imports have all but destroyed local cement production. Although cheaper, imported cements reaching South Africa may conform to regulatory standards, South African cement producers have to comply with a Mining Charter, transformation targets, and social and labour plans, all of which importers do not have to comply with. In addition, local producers are subject to Carbon Tax which the importers are also exempt from,” says Perrie. The designation of cement will apply to all projects entered into by state entities, including national, provincial, and local au- thorities as well as state-owned enterprises. CCSA has also applied for a Sunset Review of the anti-dumping tariffs im- posed on Pakistani cement in 2015. An in- vestigation in this regard has been initiated by the International Trade Administration Commission of South Africa.  Local cement only for government projects T he Bargaining Council for the Civil Engineering Industry (BCCEI) has confirmed the successful signing of a substantive agreement to extend the civil engineering industry Conditions of Employment and Wage and Task Grade collective agreements for a further three- year period until the end of August 2024. Kevin Moodley, acting general secretary at the BCCEI, says that the signing of the agreement is a significant milestone for the civil engineering sector and has again dem- onstrated the value of industry stakeholders working closely for the good of the sector. The agreement was signed between The Consolidated Employers Organisation (CEO) and the South African Forum of Civil Engineering Contractors (SAFCEC) representing the employers, as well as the Building, Construction and Allied Worked Union (BCAWU) and National Union of Mineworkers (NUM) representing the employees. “The successful signing of the three- year agreement will bring a level of comfort to both employers and employees at a time when we need it most,” says Moodley. Commenting on some of the specifics of the new three-year agreement, Moodley says it was agreed that an across the board (ATB) increase of 4.8% will be applicable to those employees who earn above the published current rates for year one. In year two, which will run from 1 September 2022 to 31 August 2023, employees who earn above the published rate will receive an ATB of CPI plus 0.75% on their current rate, while in year three, being from 1 September 2023 to 31 August 2024, employees earning above the published rate will receive an ATB of CPI plus 0.75% on their current rate. With respect to the conditions of employment, some positive changes have been agreed to which include an acting allowance. This will see an allowance paid to an employee while acting in a position higher than their current job grade. In addition, increases have been effected on various allowances including the sleep out allowance, the living out allowance, the night shift allowance and the cross-border allowance. Other changes will ensure that the Conditions of Employment are now aligned with amendments to the Labour Relations Act. An example of this is that employees will be entitled to 10 days of parental leave subject to benefits from UIF. The three-year agreement will become effective from the date of promulgation which is effectively when the Minister of Employment and Labour signs the agreement.  Civil engineering sector signs new three-year agreement The use of imported cement is now prohibited on all government projects