BUSINESS MAVERICK: Sad end to talc mine illustrates SA’s small business crisis

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BUSINESS MAVERICK: Sad end to talc mine illustrates SA’s small business crisis By Ray Mahlaka rayMahlaka

Business owners are despondent as some have embarked on mass retrenchments or the worst-case scenario of liquidation.

Scotia Talc Mine extracted soft and talc-containing rocks, which are first crushed and then milled into a fine powder which is used in products such as baby powder and automotive paint. Robert Greaves, a director of Chamotte, said the wage demands would amount to an increase of between 300% and 400% in the company’s monthly employment costs, or R400,000 a month.It is not remotely possible to pay that increase. The mine hasn’t had good years for three to four years now. In good years, we used to make R400,000 profit in a year.

Greaves said he had been threatened with violence by the Sheba Siding community whenever he returned to the mine to recover any remaining assets or talc stock. According to Statistics South Africa, the total number of liquidations increased by 53.1% in April 2019 compared with April 2018. Meanwhile, the estimated number of insolvencies increased by 30.1% in March 2019 compared with March 2018.Greaves’ conundrum and liquidation or insolvencies figures underscore how hostile South Africa’s operating environment is for business owners.

 

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peterthomas661 More andmore businesses will close; unemployment will skyrocket. That is the benefit the unions bring their members, and the unwilling passe gers, the non-members

This is soo 😢

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