OVERVIEW OF THE subsector
The Glass Chamber is one of five CHIETA Chambers and Glass is one of nine sub-sectors. The Glass Subsector involves the manufacture of raw glass by melting various raw materials (e.g. soda ash), which is converted into products. Although the Glass Subsector can be divided into several sub-industries, the Glass Industry Employers’ Association (GIEA) divides the Glass Subsector into four main sub-industries:1
Glass manufacturing (mass production);
Glass processing and distribution;
Fibreglass manufacturing; and
Industrial mineral and manual glass production.
Economic activities in the Glass Subsector are defined by the SIC Code 341100 - Manufacture of glass and glass products and SIC Code 34112 - Manufacture of glass containers; glass kitchenware and tableware; scientific and laboratory glassware; clock and watch glasses; and other glass products not elsewhere classified.
Similar to the broader Chemical Sector, the Glass Subsector is linked to other sectors of the economy such as mining, building and construction, automotive manufacturing, boatbuilding, aircraft manufacturing, solar energy, and creative arts and crafts.
There are various types of glass, which are used to manufacture a variety of products used in these sectors: Container glass, flat glass, domestic glass, glass wool fibre, reinforcement fibres, optic fibre, special glass and glass frits:2
Container glass is used predominantly in packaging bottles for drinks and jars for food, and to a lesser extent in the packaging of pharmaceutical and perfume/cosmetics products.3 Flat glass is used to make windscreens and windows for automobiles and other forms of transport, windows and facades for houses and buildings, as well as solar energy equipment like solar thermal panels and photovoltaic modules. It is also used, in much smaller quantities, for many other applications like interior fittings, decoration, appliances and electronics. Flat glass is manufactured in flat sheets and processed either as float glass, sheet glass or rolled glass. Glass produced by way of the float process represents the overwhelming majority of production. The domestic glass industry is an established mature business and includes products such as ovenware, drinking glasses and giftware. Giftware ranges from jewellery to home décor products. Glass wool fibre is typically used in building insulation. Reinforcement fibres are used in the strengthening of composite materials, including thermosetting resins and thermoplastics. Optic fibre industry products have a relatively high value and there is significant international trade in these products. The special glass industry covers a range of products such as lighting glass, cathode-ray tubes, and specialised scientific and medical items such as optical glass and pharmaceutical tubing glass. Finally, glass frits are produced for glazes and enamels, which are used for protecting and decorating ceramic materials and metals.
As mentioned above, glass is produced for use in various other sectors of the economy. The markets for which glass is produced have a direct influence on the demand for glass products and on the specific requirements glass products must adhere to. At the same time, developments in the Glass Subsector have a direct influence on the sectors that constitute its markets. Some of the main sectors with which the glass industry link are the building industry, the automotive industry, consumer, food and beverages industry, and the pharmaceutical industry.
In the building industry, glass strongly influences architectural design and glass technologies allow large buildings to be energy efficient by optimising the use of natural daylight, and to protect the environment.4
The market for automotive glass consists of original equipment supplied to car manufacturers for new vehicles and automotive glass replacement products supplied to the aftermarket, usually following damage. Globally in 2009, demand for replacement glass represented 17% of the total demand for automotive glass, against 83% for original equipment glass. With high crime levels in the country, glass replacement can play an increasing role in South Africa.5
Although the solar energy market for flat glass is relatively small in volume compared to the building and automotive markets, it is fast expanding due to the increasing demand for renewable energy. Renewable energy is a strong driver for innovations and extra clear glass with low iron oxide content is typically used in solar applications.
Glass on boats needs to satisfy a wide range of performance criteria, especially to meet international standards governing marine safety. Specifications for marine windows include resistance to high pressure; thermal and solar protection; defrosting and demisting; and ballistic protection. High speed vessels need to be equipped with highly resistant, but still very light glazing. Glass on commercial and cruise ships are, however, not very different from the glass used on cars.
The advanced materials intervention is one of the IPAP sectoral interventions. Advanced materials are those with superior properties such as toughness, hardness, lightweight, durability and elasticity. South Africa’s advanced materials industry has pockets of excellence in research situated in universities, science centres and manufacturing industry clusters that are internationally competitive.6 Glass strength is of particular importance in aircraft. Specially engineered glass protects against the static electric charging that can occur during flights. Glass technology applied to aircraft also includes protection against solar radiation, electro-magnetic radar beams and damaging effects of bird strikes against the windscreen. Flat glass is also used in many other products such as household appliances, office equipment, greenhouses and protective shielding against radiation (including nuclear radiation).
Products of the hollow glass industry can be divided into: Container glass such as used in bottles and jars; flaconnage, which is used in higher value containers for medicines and perfumes; and tableware products or various domestic glass products.7
The thin glass sheet market is dominated by two production methods: Float and fusion. Both production methods require extremely precise temperature and power control in order to be capable of producing flawless molten glass and forming thin glass sheets to the highest standards. The demand for ultra-thin sheet glass increased substantially over the last 20 years. Thin film transistor and liquid crystal glass is found in many applications like computer displays, television screens, mobile phones, e-books and tablet devices. Ultra-thin glass is also used as substrate for thin film solar applications, as well as in newly developed high power automotive batteries and new lighting devices.8
profile of the subsector
This part of the report provides a profile of the Glass Subsector. It starts by describing the different role-players in the subsector such as employers, industry associations, employer associations and trade union active in the industry. It also describes the employees working in the subsector as at the end of March 2012.
ORGANISATIONS IN THE subsector EMPLOYERS AND employer organisations
In the 2011/2012 financial year 124 employers in the Glass Subsector paid skills development levies to CHIETA, which represents 8.0% of all CHIETA levy-paying companies (refer to Table 2-1). These companies paid 5.4% of the total levies in the Chemical Sector. Only nineteen (15.3%) of all levy-paying companies in the Glass Subsector submitted WSPs.
Table 2‑1 Levy-paying companies and WSP submissions according to subsector
Subsector
|
Number of
levy-paying
companies
|
%
|
WSP
submissions
|
% of total
companies
in sector
|
% of total
companies
in subsector
|
% of total levies paid
|
Base Chemicals
|
314
|
20.4
|
127
|
8.2
|
40.4
|
13.2
|
Explosives
|
7
|
0.5
|
2
|
0.1
|
28.6
|
1.8
|
Fertilisers
|
89
|
5.8
|
23
|
1.5
|
25.8
|
8.2
|
FMCG
|
162
|
10.5
|
72
|
4.7
|
44.4
|
3.5
|
Glass
|
124
|
8.0
|
19
|
1.2
|
15.3
|
5.4
|
Petroleum
|
251
|
16.3
|
85
|
5.5
|
33.9
|
43.2
|
Pharmaceuticals
|
131
|
8.5
|
64
|
4.2
|
48.9
|
12.9
|
Speciality Chemicals
|
266
|
17.3
|
113
|
7.3
|
42.5
|
7.9
|
Surface Coatings
|
118
|
7.7
|
60
|
3.9
|
50.8
|
3.5
|
Other
|
80
|
5.2
|
6
|
0.4
|
7.5
|
0.4
|
Total
|
1 542
|
100.0
|
571
|
37.0
|
|
100.0
|
Source: SARS Levy data, 2011/2012; WSP submissions, June 2012.
In the 2011/2012 financial year, more than half (54.8%) of the levy-paying companies were micro (employing between 1 and 19 people), 30.6% small (employing between 20 and 49 people), 11.3% medium size (employing between 50 and 149 people) and only 3.2% large (employing 150 and more people) (Table 2-2). One of the four large companies in the Glass Subsector, four (28.6%) of the 14 medium size companies, eight (21.1%) of the 38 small companies and six (8.8%) of the 68 micro companies submitted WSPs.
Table 2‑2 Size of levy-paying companies and companies that submitted WSPs
Glass
|
Levy-paying companies
|
WSP submissions
|
|
N
|
%
|
N
|
% of levy-paying companies
|
Large
|
4
|
3.2
|
1
|
25.0
|
Medium
|
14
|
11.3
|
4
|
28.6
|
Small
|
38
|
30.6
|
8
|
21.1
|
Micro
|
68
|
54.8
|
6
|
8.8
|
Total
|
124
|
100.0
|
19
|
15.3
|
Source: SARS Levy data, 2011/2012; WSP submissions, June 2012.
Employers in the Glass Subsector have established their own organisation, the Glass Industry Employers’ Association (GIEA). The Association is registered in terms of the Labour Relations Act, 1995 (LRA), and has a particular role to play in representing the interests of its members in labour-related matters, especially in regard to the establishment of wage rates and other conditions of employment. Of the estimated 8 000 people employed in the subsector, 6 400 are in the service of GIEA members. Of those, some 4 600 employees fall within the scope of the Bargaining Unit, for whom conditions of employment are determined by industrial agreement, and negotiated centrally between GIEA and the relevant trade unions. These negotiations take place under the auspices of the National Bargaining Council for the Chemical Industry.9
industry ASSOCIATIONS
The Association of Architectural Aluminium Manufacturers of South Africa (AAAMSA) Group administers, besides the architectural aluminium industry, the glass, ceiling and partitioning, and insulation industries represented by various associations. Its main objective is to promote commercial and group interest. The activities of AAAMSA associations are in fenestration, glass and glazing, insulation, and ceiling and partitioning industries represented by the following industry associations: South African Glass & Glazing Association (SAGGS); South African Glass Institute (SAGI); South African Building Interior Systems Association (SABISA); Sky light Association of Southern Africa (SASA); Aluminium Stockist and Distributors Association (ASDA); Thermal Insulation Association of Southern Africa (TIASA); Expanded Polystyrene Association of Southern Africa (EPSASA); Thermal Panel Manufacturers Association (TPMA); Specialists Engineering Contractors Committee (SRCC); and the South African Fenestration Insulation Energy Rating Association (SAFIERA).10
trade unions
The following are the main trade unions active in the Chemical Sector:11
Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU)
General Industries Workers Union of South Africa (GIWUSA)
Solidarity
South African Chemical Workers Union (SACWU)
United Association of South Africa (UASA)
These trade unions are all active in the CHIETA structures and the first four are members of the National Bargaining Council for the chemical industry.
EMPLOYEES represented by the SUBSECTOR TOTAL EMPLOYMENT
Figure 2-1 below shows the total employment in the Chemical Sector. The Glass Subsector is relatively small employing only 5.1% of the workers in the Chemical Sector.
Figure 2‑1 Total employment in the Chemical Sector and its subsectors
Source: WSP submissions, June 2012.
employment in the subsector
Type of employment
Most (92.4%) employees in the Glass Subsector were in permanent positions. Only a few (2.7%) were contractors and 5.0% were temporary workers (Figure 2-2).
Figure 2‑2 Type of appointment of employees in the Glass Subsector
Source: WSP submissions, June 2012.
equity profile
Race and gender
The majority of workers in the Glass Subsector were African (56.5%), Coloured (14.9%) and Indian (4.3%). Whites constituted about a quarter (24.3%) of the workforce (Figure 2-3). In terms of gender the majority (81.2%) were male (Figure 2-4).
|
|
Figure 2‑3 Population group of employees in the Glass Subsector
|
Figure 2‑4 Gender distribution of employees in the Glass Subsector
|
Source: WSP submissions, June 2012.
In the Glass Subsector, African males formed the majority of workers in all occupational categories, except in the managerial, professional, and services and sales workers categories (see Annexure 1). Among the managers, the majority (42.5%) were White males and nearly a quarter African males (23.4%). In the professional category, White males and African males each constituted just over a quarter (27.6% and 25.4% respectively), while the rest of the groups each formed less than 20%. Although White females constituted a quarter of the service and sales workers category, African men formed the second largest group (19.7%) in this category. Africans and males formed the majority in all other occupational groups (technicians and associate professionals; clerical support workers; skilled and trade workers; plant and machine operators and assemblers; elementary occupations; and learners) in the Glass Subsector.
Women are generally under-represented in the Glass Subsector. Looking at the employment of African women as such in the Glass Subsector, the majority of them were employed as elementary workers (20.9%) and plant and machine operators and assemblers (20.2%). Although 15.6% of all African women in the subsector were employed as technicians and associate professionals; 11.5% as professionals and 11.4% as clerical and sales workers; only 8.2% of them were in managerial positions. More African women also need to become artisans, as only 7.5% of all African women employed in the subsector were employed as skilled and trades workers. It is possible that in future more African women could move into higher level occupations, as they formed the third most (14.9%) of all the learners in the Glass Subsector. However, almost two thirds (61.7%) of learners were African males and close to a quarter (19.1%) were White males.
Disability
There were 892 employees with disabilities working in the Chemical Sector as a whole. This equates to 0.6% of all employees in the sector. Figure 2-4 below displays the proportion of disabled employees by subsector. The Glass Subsector has the highest proportion of disabled employees – 1.1%.
Stakeholders noted that it is difficult to employ disabled people (depending on their disability) in certain occupations due to health and safety requirements. It is particularly difficult in key production occupations. However, there was an acknowledgement that more effort needs to be made to identify those occupations in which people with disabilities can be employed and to recruit people with disabilities for these occupations. In addition, the CHIETA will work with stakeholders on training around disability awareness. The CHIETA is supporting projects aimed at people with disabilities through the discretionary grants.
Figure 2‑5 Percentage employees with disabilities per subsector: March 2012
Source: WSP submissions, June 2012.
EDUCATIONAL QUALIFICATIONS
In the 2011/2012 mandatory grant submissions, employers provided information on the qualifications of 73.6% of the workers employed in the Glass Subsector. Almost half (47.0%) of these employees had a National Senior Certificate (matric) and 35.9% had post-school qualifications. Only 3.4% had very limited schooling and had not reached NQF Level 1 (Table 2-3).
Table 2‑3 Highest qualifications of employees in the Glass Subsector
Highest qualification
|
N
|
%
|
Below Level 1
|
201
|
3.4
|
NQF Level 1
|
154
|
2.6
|
NQF Level 2
|
340
|
5.8
|
NQF Level 3
|
308
|
5.2
|
NQF Level 4
|
2 771
|
47.0
|
NQF Level 5
|
781
|
13.3
|
NQF Level 6
|
945
|
16.0
|
NQF Level 7
|
250
|
4.2
|
NQF Level 8
|
106
|
1.8
|
NQF Level 9
|
31
|
0.5
|
NQF Level 10
|
5
|
0.1
|
Total
|
5 892
|
100.0
|
Undefined
|
2 110
|
|
Total subsector employment
|
8 002
|
|
Source: WSP submissions, June 2012.
There was no indication of the highest qualification levels of a substantial number (2 110) of workers in the Glass Subsector (Table 2-4). Most of these workers were in core occupations and over a quarter (27.9%) of them were skilled agricultural, forestry, fishery, craft and related trades workers; nearly a quarter (23.5%) were technicians and associate professionals; 16.3% were plant and machine operators and assemblers; and 10.6% were managers. No information was provided on the qualification levels of 2.8% of service and sales workers, 4.6% of clerical support workers, 4.9% of professionals, and 8.3% of elementary workers.
Table 2‑4 Qualifications not indicated
Occupations in which qualifications were undefined
|
N
|
%
|
Managers
|
224
|
10.6
|
Professionals
|
103
|
4.9
|
Technicians and associate professionals
|
496
|
23.5
|
Clerical support workers
|
97
|
4.6
|
Service and sales workers
|
58
|
2.8
|
Skilled agricultural, forestry, fishery, craft and related trades workers
|
589
|
27.9
|
Plant and machine operators and assemblers
|
344
|
16.3
|
Elementary occupations
|
174
|
8.3
|
Learners
|
26
|
1.2
|
Total
|
2 110
|
100.0
|
Source: WSP submissions, June 2012.
AGE
The average age of employees in the Glass Subsector was 41 (Table 2-5). Almost a third (31.1%) were between the age of 25 and 34 and 28.5% were between 35 and 44. Only 2.9% were younger than 25 and only 1.3% were older than 65.
Given the central role of artisans in the Glass Subsector, it is positive that artisans (skilled agricultural, forestry, fishery, craft and related craft workers) had a slightly lower average age (40) than the Glass Subsector as a whole and only 4.9% of this group were nearing retirement. Other core occupations such as professionals; technicians and associate professionals; plant and machine operators and assemblers; and elementary workers, all had an average age of 41. Clerical support workers had a slightly higher average age (42) than others in the subsector, as well as the highest percentage (12.5%) nearing retirement. The average age (45) of managers was the highest and 11.6% of managers neared retirement age. However, managers of own companies are not compelled to retire at a specific age.
Table 2‑5 Occupations by age in the Glass Subsector
Occupations
|
Age groups
|
Total
|
Average age
|
Close to retirement (55-60)
|
15-24
|
25-34
|
35-44
|
45-54
|
55-64
|
65+
|
N
|
%
|
N
|
%
|
N
|
%
|
N
|
%
|
N
|
%
|
N
|
%
|
N
|
%
|
|
N
|
%
|
Managers
|
2
|
0.2
|
153
|
16.0
|
338
|
35.3
|
276
|
28.8
|
169
|
17.7
|
20
|
2.1
|
958
|
100.0
|
45
|
111
|
11.6
|
Professionals
|
9
|
1.8
|
190
|
38.6
|
137
|
27.8
|
96
|
19.5
|
47
|
9.5
|
13
|
2.7
|
491
|
100.0
|
41
|
19
|
3.9
|
Technicians and associate professionals
|
45
|
3.2
|
437
|
31.0
|
397
|
28.2
|
366
|
26.0
|
140
|
9.9
|
24
|
1.7
|
1 410
|
100.0
|
41
|
73
|
5.1
|
Clerical support workers
|
8
|
1.4
|
163
|
29.0
|
159
|
28.2
|
137
|
24.4
|
89
|
15.8
|
7
|
1.2
|
562
|
100.0
|
42
|
70
|
12.5
|
Service and sales workers
|
10
|
6.8
|
48
|
32.6
|
39
|
26.5
|
31
|
21.1
|
17
|
11.4
|
2
|
1.5
|
148
|
100.0
|
39
|
11
|
7.6
|
Skilled agricultural, forestry, fishery, craft and related trades workers
|
34
|
2.3
|
521
|
35.1
|
460
|
31.1
|
326
|
22.0
|
132
|
8.9
|
9
|
0.6
|
1 482
|
100.0
|
40
|
73
|
4.9
|
Plant and machine operators and assemblers
|
57
|
2.8
|
695
|
34.2
|
519
|
25.5
|
465
|
22.9
|
275
|
13.5
|
24
|
1.2
|
2 035
|
100.0
|
41
|
137
|
6.7
|
Elementary occupations
|
21
|
2.6
|
224
|
27.8
|
229
|
28.4
|
201
|
25.0
|
126
|
15.6
|
3
|
0.4
|
804
|
100.0
|
41
|
83
|
10.3
|
Learners
|
47
|
44.7
|
55
|
52.1
|
2
|
2.1
|
|
0.0
|
1
|
1.1
|
|
0.0
|
105
|
100.0
|
26
|
0
|
0.0
|
TOTAL
|
233
|
2.9
|
2 486
|
31.1
|
2 280
|
28.5
|
1 898
|
23.7
|
996
|
12.4
|
102
|
1.3
|
7 895
|
100.0
|
41
|
577
|
7.2
|
Source: WSP submissions, June 2012.
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