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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Forest Sector Charter

12. Preferential Procurement

12.2 Additional Instruments

12.2.1 Industry Codes of Conduct for the Forest Sector


To ensure equitable and sustainable contracting and employment practices in the Forest Sector, industry (through its representative associations), in consultation with labour, undertakes to establish Industry Codes of Conduct for the Forest Sector that will cover the following elements:

(a) Codes  for  forestry  contracting: These Codes will control and direct the  relationship between contracting companies and contractors, and between  contractors and sub-contractors.  The  Codes  will  provide  for  larger  and  longer-term contracts enabling contractors to improve margins and invest in their  businesses and staff. It will also provide for transparent and accessible tendering  systems and fair pricing that will support good governance and fair labour practices.
(b) Codes   for   emerging   forest   grower   schemes:  These  Codes  will  control  and  direct contracts with emerging growers  in company-affiliated schemes. The Codes will ensure transparency in the costing of support services and market related pricing arrangements for timber that will support sustainable business practices,  good  governance  and  fair labour practices.
(c) Codes  for  charcoal  contracting: These Codes will control and direct the  relationship between small black charcoal producers and the brand name producers and industrial users of charcoal. The Codes will provide for partnership ventures  between small scale suppliers and large scale buyers of charcoal and a fair, transparent and stable pricing system that will support sustainable business  practices, good governance  and fair labour practices.
(d) Codes  for employment  practices: These Codes will give practical effect and weight to fair labour practices as provided for under the Basic Conditions of Employment  Act, 1997, and other labour legislation as it applies to employees, including contract workers, in the forest sector. Government also undertakes to ensure that enterprises that procure timber and other forest products from  state  forests  shall  sign  a   commitment of compliance with these Codes. Failure to do so or to comply with  these Codes will disqualify enterprises from procuring state timber and other forest products.


This measure will be operational within one year of the signing of the Charter.