Q & A with Vic Naidoo - President of Master Builders KwaZulu-Natal

1. You have been quoted as saying that one of your priorities for your term of office is to drive enhanced training activities for the Association.  What do you see as the current challenges facing the industry with regard to training at the moment?

We actually have a number of issues which need to be resolved to get to where we need to be with training.  The funding of training, through the CETA system, is very administration intensive and generally quite inflexible.  This discourages employers from embarking on training as they often do not have the capacity to tackle the bureaucratic requirements.  It is also very difficult to find a satisfactory way of addressing the requirement for on the job training.  Deadlines and margins are so tight particularly in these times, that employers, again, particularly the smaller ones, do not have the capacity to organise their labour force in such a way that meaningful on the job mentorship can easily be undertaken.  The building industry in KwaZulu-Natal doesn't have a minimum wage and as a result it is not an industry of choice for aspiring builders.  We have many wonderful men and women in the industry but believe that if there were a legally enforced minimum wage that resulted in the industry becoming known as a better payer, we would attract a higher calibre of candidate able to achieve the excellence demanded from clients.

2. How do you see the Association being able to play a role with regard to training?

I believe the Association can play a meaningful role facilitating the issues mentioned above, using it's status and capacity to ease the burdens placed on employers.  There are no simple solutions but we are already looking forward to a pilot project next year which will see us focusing on the foreman training which will increase the standards of construction supervision and help us avoid costly reworking and delays.

3. The building industry in KwaZulu-Natal does not currently have a prescribed minimum wage.  What other benefits would accrue if this were put in place?

Well, in addition to the reason mentioned just now, we know that we have a lot of legitimate, ethical enterprises in the industry who not only pay their workers a decent wage, but also invest in training and health and safety.  These enterprises are competing with operators who attempt to get away with the lowest possible wages and do not invest in their labour force in any way.  These enterprises compete with each other in the open market and we unfortunately have situations where the unscrupulous operators can come in at lower prices prejudicing those who attempt to do the right thing.  If there were a legally enforceable minimum wage the playing field would be levelled as everyone would be working with similar or the same labour costs.

4. What is the Association doing about transformation?

A: The KZNMBA was perceived as a 'white mens club' – and historically that was true, this is changing. We now have in excess of 25% of members that are wholly black owned, and in excess of 30% of new members recruited are black owned. We have now had two Presidents of colour, Gavin Strydom and myself,  and our new Executive Director is of colour as well. The Executive Council is committed to continue with this process of transformation in all levels within the staffing of the association as well the supplier chain.  We are currently a level 3 B-BBEE contributor. We welcome contractors of colour to participate in the affairs of the Association and consider serving on the Council  and be part of this process and to take the Association from strength to strength in the interest of the contractor and the construction industry.

5. What do you see as the major challenges facing the building industry today?

There can be no doubt that the economic conditions currently prevailing are devastating to this industry.  There are issues however that have even been prevalent in good times and the effects of these are simply being made worse now that times are tight.  We have significant problems with public sector procurement.  Requirements for different departments differ and we have tender practices which are uncertain and at times even corrupt.  The regulatory burden on the builder seems to be ever increasing with levies, statutory registrations and general bureaucracy which take up a lot of time and effort to successfully navigate.  We are also hampered by a lack of accurate information in terms of public sector spending. Not knowing what is really being allocated for different projects hampers the industry's ability to plan and respond appropriately. 

The next significant challenge is one that spans both the public and private sector and that is that of the security of payment.  Very few enterprises can sustain a situation where they are not paid promptly for work that is done.  Margins are low and the value of projects is high.  In this regard we would like to see security of payment legislation that compels payment that is due without having to go the civil litigation route.  Finally we face issues around sustainability and the availability of resources.  Whether it is something as simple as building materials, or something as out of our control as the supply of electricity for new developments, more and more we are bumping up against the fact that resources are limited and not infinite.  It is going to take some serious collaboration and deep thinking to overcome these issues and is something that we discuss at Association level.

6. What values do you believe are important to ensure sustainability of the building industry and, more broadly, of business at large?

Predominately I think we need to invest in people.  People who are well trained and have the ability to work safely and produce quality work benefit everybody from the businessman to the client to the workers themselves.  When people are empowered they are able to all work together for a common goal.  This will become more and more necessary as the pressures we face increase. Over and above this the entire built environment needs to be very carefully implemented going forward.  Given the scarceness of resources we need to ensure at all levels that the appropriate buildings are being built in the appropriate places using the appropriate materials and designs and for appropriate uses.  Again this appropriateness is something that needs to be applied at all points in the value chain and really requires outstanding leadership and planning to ensure that it happens in the best possible way.

7. What would you say are the most valuable offerings for members of the KZN Master Builders Association?

I think one of most valuable offerings that the Association has for members is one that they often do not think about.  That is the ability to advocate and lobby for their interests.  Whether it is in the skills development, labour relations, regulatory, procurement, contractual or health and safety fields, the Associations on both a provincial and national level spends a lot of time and resources doing the best that it can to keep the playing fields level for members.  In addition to this, the specialist services which we provide members such a legal advice, health and safety assistance, training assistance etc., are invaluable for members giving them the support they need at incredibly competitive rates and coming from a place of expertise.  Finally the Association is very much a community for its members.  This is both physical and online and provides a platform for members to interact with each other, learn from each other and share ideas, collectively taking the industry to new levels of professionalism and excellence.

Gary Amstutz