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Is This The Beginning Of The End?

Dec 8, 2016



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Dear Industry Employer

During the last five years NEASA has taken the MEIBC to task in respect of a number of issues, including the unlawful extension of agreements, poor governance, mismanagement and hostile conditions towards SMMEs.

We have taken the Council to court successfully on a number of occasions and have spent in excess of R22 million on litigation in order to fight this unjust regime.

The MEIBC now finds itself in a precarious financial position. It is common cause that the Council is insolvent and cannot pay its creditors. NEASA is of the view that should the Council be allowed to continue to operate under these circumstances, it will constitute reckless trading. This is not a situation we are willing to support. Consequently, at the Management Committee meeting of the Council on 6 December 2016, NEASA proposed that the Council should opt for voluntary liquidation. This, in our view, is the only responsible course of action to take.

Although this motion did not garner the support of all employer parties and predictably no support from any labour parties, our position has been formally recorded and will be discussed at a further Manco meeting on 9 December 2016.

We believe that the proposed course of action is appropriate under the circumstances and supports our quest to act in the best interest of our members.

We will keep you appraised of developments.



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