The impact of EE act on tote turnover - 1 March 2010

Given that the majority of the punting money is made up by the white male punters?
Sure, the majority of the punters are from the proviously disadvantage sector.
(That does not include Possum)

With the aggressive implementation of the government’s EE act, 72 percent of currently employed white males will be retrenched before 1 March 2010.

The idea of imposing a fine of 10 percent of turnover on companies that don't comply with the EE act, will become a reality soon.

Currently all companies with 150 or more employees have to comply with the EE act.
As at the last survey, 77 percent of these companies are run and managed by white males. Only about 5 percent of these white males can survive when the EE act is implemented, the rest will be retrenched, that is before 1 march 2010.

Any given company cannot have more that about 5 percent white staff, when the EE act is implemented. The funny part, most white families are continuing with life, buying new houses, new cars, spending on credit cards, almost as if they think or believe that it will not happen to them.
Reality is, the EE act will be implemented to the T, this year.


Taking all job losses into account, all predictions of further job losses until December 2009, the work force will total about 7 million in South Africa. This excludes agriculture and related jobs.

Given the percentages on the EE act, about 350,000 whites in South Africa will be employed as part of the 7 million work force, once the EE act is fully implemented by perhaps 1 march 2010.

Given the +840 towns in South Africa, an average of 416 white employees will be in employment per town. That's right, 416 whites in Krugersdorp will have employment from companies with 150 or more staff members.

It's only these 416 white employees per town that will have money to pay their bond, pay the car, insurance, medical aid.

It sounds far fetched, however when the EE act is implemented to the T, by 1 march 2010, it will be a reality for all of us.

Where will the tote pools be next year this time, when the EE act has been implemented?

Guess, bookmakers need to take notice too..

I hear you Andrew, and if I was living in SA I would really worry about this.
The only thing is that this is not the first time the government has tried this. They have had their BEE, "Previously disadvantaged Individuals" and "Previously disadvantaged Entities" programmes running now for years and years. They have groups of well paid people who try to police that this happens at companies and that the empowerment figures are correct as per new legislation. It has not affected the way of life for most families that much and people have adapted. I'm not sure how much of a difference these new "acts" will make.

I thought it was only a few short years back when Trevor Manual said that "Affirmative action was a thing of the past".

I'm not entirely sure what is going to happen then with this new EE act but what I do know is the change CANNOT be as great as you may think as there will then be nothing left of South Africa.....Nobody wants that at the end of the day.

I guess we will have to wait and see!

The idea of imposing a fine of 10 percent of turnover on companies that don't comply with the EE act, will become a reality soon.

They new Guy in charge, have tabled the request for the 10 percent fine.
All are supporting him, and it's only a formality to get it approved, signed and stamped.

His mandate is to have the act implemented by the end of this financial year.

not that it concerns me.
I retired in 2004.
too lazy to work.
ps. i use to consult to them, this round they are serious...

it will have serious implications for the economy there....not good. The white male is still the one with the skills at the moment....surely they have taken this into account??? already drones are leaving for Aus + NZ, on top of those that left for Canada and the UK......the brain drain of old hasnt stopped....I can see a further drain happening if this EE enforcement is the case.

Have no stats, but get the impression many coming back "grass is greener scenario"?

The +840 Jse listed companies have been looted by the South African Pirates, including PHUMELELA....?

The "brain drain" and "grass is greener" will make no difference.
The secrets are unfolding, one by one.
The reality will be faced before end of this financial year ending February 2010.

WHAT PERCENTAGE OF TURNOVER is PHUMELELA towards salaries...
THE MAX is 16.5% of turnover.
Reading a previous thread earlier this month on shares trade..PHUMELELA has been sunk..cargo (pension fund money) lost..?????

ESCOM is paying 28 percent of turnover towards salaries..

what does this mean..The company has been high jacked..looted..and sunk..

well oiled companies operate within the following Percentages of turnover.

cost of stock......35%
rent+towncouncil...10%
SALARIES...........16.5%
Vat payable........6.6%
Other(tel, ins)....3.3%
Gross Profit.......28.6%

If SALARIES exceed 16.5%..you rob peter to pay paul...

the 28.6% gross profit make provison for:
medium size companies..ie. franschise to pay 12% to franchisor for fees+ marketing
parastatals and JSE listed companies to repay loans,ie MTN, Bonds..such as Escom Bonds..Transnet Bonds..

ESCOM has diluted the GROSS PROFIT BEFORE TAX to 17.1%, with which they now have to pay existing ESCOM LOANS, MTN's and BONDS..and want to pay new future loans..

How did this 28% on SALARIES come about..
Piracy..employing the brother, the uncle, aunt etc..
creating new and duplicate positions..ie.ESCOM have more than one CIO at >R1.6m pa..(perhaps 4 CIO's).

Auditors turning a blind eye..
All auditor reports are now questionable..category 1 to 3 auditors..

Who's money will be lost..
The working class...their pension money..The pension fund managers invest in the JSE listed indexes or individual shares..

The problem with so many employees..
Strike for beter wages...where will the 28% (should be max 16.5%) end..110%
for each day an employee has leave due to him, the company MUST have the equivalent cash in a bank account.

It's obviously not working, SABC, ESCOM and many of the +840 Jse LISTED companies are in HUGE OVERDRAFTS..

Again, the auditors are to be questioned..
Corporate Governance LAWS must prevail..these CEO',CFO must be jailed by law..

SO 2 Questions must be asked...

1. What percenatge of turnover do a company pay towards salaries..
2. What is the companies bank balance..surely there must be staff with leave due..hence the balance can never be in the red..

AD..better I stick to the quartets..these pirates will hi jack me too..

but then..I use to sit with them in the boardroom..72 of these companies..
these pirates know me..better they walk big circles..the fall from mink to manure will destroy them..the salary % will eventually capsize them all...the masses will demand their pay...like in the rest of Africa..
when the outflow exceed the income, the upkeep will be the down fall..

woody's horses run like @#$%^&*()_
thought they would have 5 winners for the day..
now it's the track..the jock..the virus..the vet..shoot the bloody horses..sell them to the zoo for R5/kg..

Andrew West paints an interesting picture re. BEE and the like in the corporate world.

Another thing that BEE is creating, is a new breed of young white entrepeneurs. Our fathers could pick and choose which corporate they would like to work for, we ( young whites) on the other hand, must now fend for ourselves.

Most of my peer group have in the last few years started our own enterprises. We are now earning more than any of the corporate boys, whether they be black in SA or white's in London.

Just like Jonothan Trott and Kevin Pitersen adapted to survive, so have we. In 10 years time we will be cruising and will thank BEE for forcing us to make our own plan.

WE are creating the new SA, increasing and stimulating the SA economy ! VIVA !

PARTYLINE:

your views a breath of fresh air- well done!

We all refuse to talk about racism; it doesn't exist!
Really?

Let's face certain facts on the ground:

Indians/Coloureds gravitate more towards whites and have been doing so. For instance, an Indian/Coloured is generally preferred for employment over an African.

After 1994, whites have started gravitating towards blacks for solely economic reason- empowermnent (enrichment) deals.

There are different compartments/sectors of relationship between and amongst whites, Indians/Coloureds and Africans. These are because of the historical barriers/contributors to relationships, such as economic,security concerns, educational level, language, social status, religious practices, environment, etc.

Maybe, we have more eloquent (and qualified) members who can probably objectively dissect and amplify the above.

We need a national indaba to openly and honestly debate this topic.

What racsim? not in OUR vocab!

Canada says so, and Verwoerd did also!

Umlilo...my man, i knew you would be reading this !!!

I've recently added a muslim and a Indian fella to distribute my products in Durban and Jo'burg. What a pleasure these guy's are.They have taught me alot about the trade and are sharp.


I totally agree, we need to start public forums and discuss race relations. This will benefit the generations who were party to apartheid.

Us youngsters just want to get on with it, i'm so sick of hearing whites complain about the present and blacks about the past.


Back to the original point, I have been racing since I was a kid. In those years I have tried to introduce countless mates into the game....not one taker( except for free Met tickets)...perhaps they are to sharp to fall for this game, but I love it.

Party Line..

It's so true about the new ventures..
most of the white faces will be freed...
out on parole from their corporate sentence...
life time sentence..
you study till you are 28..phd..mba..the lot..know a lot about a little..
work...work..work..till 63...
fired by the computer system..
the children put you in a old age home..
have your declared mentally unfit, take over your financial estate..

fortunately a few of us are re engineered into a new business..a new venture...

Most of the guys that have been at a single company all their working life, find it hard to adapt..they fail..

As consultant, I was at Datavia, Spoornet IT company during 2002..
26 middle managers were called in..all grade 109's..

all 48 or older..
all white males..all degreed...
Highly skilled guys..
UK companies would pay 1300 pounds per day for their skills..if they had EU passports

the announcement was something like this...
in 6 months time 22 of you guys must be gone..we must get the numbers right..decide who stays..who takes the golden handshake..
the meeting lasted 1 min max..

The strange part..the majority of the ones I know and see..are all well educated..hold degrees bsc..hon..masters and some even phd..from math stats to economic, to political science..all are between 50 and 60..


Stephen..bsc computer science..bottlestore at the VAAL..opens the doors on wednesdays..to throw out the empties..

Aubrey...runs with the wife..every morning..every night..past my place..is he trying to get back into the army..

Martin...wanders around the casino at the airport..does gamble at all..been doing this for the last 3 years..

Mike..sleps around westgate in his slofs...all day long...

Div..bought a army tent..pitched it in the back yard and are staying in the tent..

sure they all got between R2m and R8m retrenchment money, which got transfered to the provident funds....
the same money is now worth < R500k

why..these einsteins..the fund managers got suckered..

brokers that trade in financial instruments look for fund managers to scheme..to outscheme them..pension funds are know as "EXIT BUYERS"

most of the fund managers for all our banks, pension and insurance companies got suckered by the USA brokers...

the RSA einstein fund managers bought MTN's at 63 + 1 last year august, just before the collapse of the USA market..on a 12 month coupon..

They paid 63% of the face value of the paper document(MTN) + 1% brokers commission...thinking that it was a bargain..the seller saw them as EXIT BUYERS.

ie. MTN value R100m in 12 months..
RSA einstein fund managers paid R63m + R1m for the paper..
all they had to do is...wait 12 months and collect R100m..
they must believ in free sex too..

well the market collapsed..and the einstein fund managers got R0.00
doesnt matter..its not their money..it only pension money..

see how the banks are announcing the losses..all in the USA..

Again..the auditors are to blame...
where are the checks and balances they were busy putting in place since 1980's..

partyline:

For over 200 years, horesracing was the exclusive preserve of whites. Blacks (per se) were not exposed to the nitty gritty of owning, training & breeding horses; from their impoverished (or disadvantaged) position, they indulged in the gambling aspect to perhaps fulfil their dreams of becoming ultra-rich (winning a Jpot or P6).

Since they did not have that kind of money (from investments, businesses, etc) as they were also excluded from mainstream economy, they could not be convinced about tax implications (writing off losses, deducting expenses, etc); the only tax they paid those days was 'poll' (or head 'nkanda') tax of 2 Pounds per annum! Those who lived in the rural areas knew horses as a means of transport. If they raced amongst themselves, that was just to assert dominance over others; gambling was not a cog in such exercises!

Today, to convince blacks to own racehorses is a mammoth task. Worse that if even one does purchase a horse and it (true to form!) does not even recoup its training fees, let alone purchase price!

You and I know better, but not the potential initiate, after just 15 years! Besides, why look into horseracing when better offers are on hand, like BEE?

That's the sting!