Wine Charter

Wine Industry Charter
by Keith Levenstein

Business Report has reported that The SA Wine Industry Council has adopted a wine industry transformation charter.

The charter is based on the definitions of  the codes of good practice, and also takes into account EMEs, QSEs and generic companies.

The wine charter also has seven elements:

Ownership
Management
Employment Equity
Skills Development
Procurement
Business development initiatives  (Enterprise Development)
Rural development and poverty alleviation (Socio-Economic Development)

EMEs are exempt from complying, but according to the report they would still have to demonstrate what they had done to improve conditions in the industry and show active involvement in empowerment if they were to tender for government contracts.

Commentary:

It is good news that the wine charter is aligned with the codes of good practice. The process from now one is for the minister of agriculture to give the go-ahead and then to send the charter to the dti for gazetting as a section 12 code. This is for information only and will carry no force of law. Thereafter it can be gazetted as a section 9 code which does give it force of law.

So, far only two charters – the financial services charter and the construction charter have made to to being gazetting as a section 12 code. This was in February 2007 when the final codes of good practice were gazetted. To date, no charter has been gazetted as a section 9 code.

The ICT charter is reported to also be nearing completion, but it still has not been gazetted in terms of section 9 of the act.

It is impossible to guess how long it will take for any one charter to go from a section 12 to the final section 9. The chances are that the codes of good practice themselves will still be changed and re-gazetted before any charter can gain the force of law by becoming a section 9 code.

Until a charter for an industry has been gazetted as a section 9 code, all enterprises in the industry must still follow the codes of good practice. 

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