Türkiye Elevator Industrialists’ Association (TASFED) Board and the presidents of affiliated member associations met in Ankara on May 21, 2022. At the Board of Presidents, important decisions are made for the sector.
At the meeting chaired by TASFED Chairman Yusuf Atik, the developments and the works of member associations in 2021-2022 period are discussed. Below, decisions are taken:
- Meeting will be held with the Union of Municipalities
- Companies will be required to become a member of the association
- Associations will inform the members about the public developments and the developments experienced in the Federation and the list of member companies will be presented to TASFED.
Additionally, case files of the members which make a counterclaim against Marker Surveillance fines will also be presented to TASFED, in order to set a precedent.
Representatives of Anatolian Elevator Industrialists Association (ANASDER), Elevator and Escalator Industry Businesswomen’s Association (AYSKAD), Bursa Elevator Industrialists Association (BURSAD), Denizli Elevator Industrialists Association (DENASDER), Eastern Black Sea Elevator Industrialists Association (DOKAS), Eskişehir Elevator Industrialists Association (ESASDER), Kayseri Elevator and Escalator Industrialists Association (KAYSAD), Kırıkkale Elevator Industrialists Association (KIRASDER), Mersin Elevator Industrialists Association (MERSİN AS. DER.), All Elevator Industrialists and Business People Association (TASİAD), Central Black Sea Elevator and Escalator Industrialists Association (OKASDER) attended the meeting.
Atik: “Mergers are inevitable”
TASFED Chairman Atik pointed out the activities around the world and said, “We observe that the elevator sector improves day by day. We also successfully benefit the strategic geographical position of our country.” Complaining about the increasing number of the companies, Atik also emphasized that import-oriented market evolved into an export-oriented market today. Atik said:
“It is an achievement for our sector to prove itself. Our duty is to increase these numbers and to have global companies in our country. We should take strong steps in the world market. A global company cannot be established with one single manufacturer. So, mergers are inevitable. If we want to have a global company in Türkiye, we must join our forces. There is no other way. Mergers bring strength. If we do not make mergers, then we cannot be effective.
“Now, it is time to say ‘we’ instead of ‘I.’ In Europe, the company which has a share of 5 percent becomes the biggest shareholder. When we talk about mergers, parties look after share. We are small but we think we are big. So, we should institutionalize our companies and also find a way for mergers. If you can, acquire small companies and merge. Otherwise, we will all go up in smoke.”
Lobbying at the Ministry
Atik spoked ahead out of this article that TASFED and ANASDER frequently visits the Ministry of İndustry and Technology for lobbying and said, “Recently, we requested appointment from the Minister and Deputy Minister separately. We will discuss the increases and state that the fine cannot be more than the price of a product. Market Surveillance fines should be decreased. We will raise an objection to it.”
ANASDER: “We filed a lawsuit to stop Market Surveillance”
Then, Anatolian Elevator Industrialists Association (ANASDER) Vice Chairman of the Board Zafer Karabay took the floor. Karabay stated that, with the meeting at Ministry of Industry and Technology, they requested sanctions to prevent the increasing number of companies and said, “We visited the Ministry of Commerce and share our opinions on Market Surveillance fines. The figures show that the elevator companies are imposed a huge amount of fine. The ability to collect fines is around 10-20 percent; because the company changes its name the next day. We have already filed a lawsuit to state council in order to stop the execution of market surveillance. We worked on Elevator Periodic Control Directive and presented it to TASFED’s Technical Committee. TASFED prepared a document and sent is to the Ministry of Industry.”
Karabay said that they raised an objection because there is no check list for Market Surveillance, and said, “There is a list but the check list is not issues as an annex. It is stated that some additions and exclusions can be done on the list. Market Surveillance fine for a slightly faulty elevator from 50 thousand TL, for a moderately faulty elevator starts from 94 thousand TL, and for a highly faulty elevator starts from 150 thousand TL. Moreover, Market Surveillance fines for the elevators which are registered as of April 2022 will be higher. The price cap here is 650 thousand TL. Upon the demand of the Ministry, a 650 thousand TL fine can be imposed for a slightly faulty elevator or to a company in a good position because of this false criterion. Does anyone make a profit between 50 thousand and 650 thousand TL from one elevator?”
Özçakır: “Apprenticeship law had a huge impact on the sector”
İbrahin Özçakır, the former Board Member of Eskişehir Elevator Industrialists Association (ESASDER) and the current Board Member of TASFED, said, “We had some problems concerning the training program, which is closely related to our students studying at the TASFED Academy in our city, and which is based on training apprentices for Vocational Training Centers. The law had a strong impact on the sector. Students who were absent at the school for many days, preferred to start working in line with the law. As there are only a few students, we choose the company for them. If we get a complaint from the children, we talk to the company or we take them from that company. We are doing our best to bring these children to the sector. 80 percent of the last year’s graduates still work at the field. It makes us very happy.”
TASİAD: “The companies should have the ability to pay penalties”
All Elevator Industrialists and Business People Association (TASİAD) Vice President Mustafa Uçar stated that the new companies are not aware of the responsibilities of the business and the fines imposed as a result of Market Surveillance, and said that these companies should have the ability to pay penalties if they had that mush responsibilities. Uçar continued, “Certificate of completion is sought in the proposals to be submitted for a construction project. Thus, the potential and level of the bidder company is measured. We also need to make preliminary examination in order to evaluate the companies. We have a software infrastructure at TASFED. In order to facilitate the communication, the associations should inform TASFED about the updated information on their members and the people in charge, including their names and surnames, addresses and telephone numbers. By this way, we will be able to keep everyone updated about the studies undertaken here and the developments in the sector. We should speed up this information exchange.”
Uçar said that they tried to hold their meetings on a weekly basis, which were online sometimes, and he education committee continues to work on Haydarpaşa Technical Anatolian High School project as much as the pandemic allows and also underlined that Yasemin Bulut has been carrying out an important task for a long time, such as recruiting members to strengthen the associations and explaining the projects and developments to the members.
OKASDER: “We protect our member companies with ethics agreement”
Central Black Sea Elevator and Escalator Industrialists Association (OKASDER) Chairman Atilla Verim said that they received a recommendation from Samsun Chamber of Industry and Commerce about the maintenance prices while that recommendation is now useless due to the high inflation. Verim said, “The prices issues at that time are now too low. So, they are not feasible. Therefore, we preferred managing these problems with ethics agreement. Members of the association will not give maintenance service under these prices between each other but non-members or the companies which are not under the scope of the ethics agreement will be able to give maintenance service at different rates. Protecting the good companies is important because they suffer in general. Our association does its best to protect its members and the companies that work ethically.”
AYSKAD: “We make a request for being a Chamber”
Then, Elevator and Escalator Industry Businesswomen’s Association’s (AYSKAD) Chairman Yasemin Bulut took the floor. Bulut said, “Our association has been founded in 2018. We visited Ankara in order to sign the Vocational Education Cooperation Protocol in December 2019. On the same day, we also visited Deputy Minister of Industry and Technology Hasan Büyükdede. At our visit, we stated that we need to establish a chamber for solving the problems of our sector. On the same day, we also visited Belma Satır, the President of Petition Committee, in TMBB. We emphasized that we do not get enough state support when compared with the international companies. She told us to prepare some documentation on the details of the issue and make an application. If we cannot establish a chamber, we should prepare such documentation.”
DENASDER: “We cannot document any service without a receipt”
Denizli Elevator Installation, Maintenance and Repair Equipment Industrialists Association’s (DENASDER) Chairman Ali Cirit reproached that they cannot determine the maintenance price, said, “No one is fined in Denizli. We have visited relevant institutions and filed our complaints. A company which manufactures 10 elevators in one year should provide 1.5 trillion TL as a collateral. Due to non-invoiced business, we have no documentary. We have difficulties to tackle with such problems in Denizli. The number of inspections should be increase and the relevant institutions should pay attention on the problems.”
DOKAS: “We need support in order to create awareness”
Next, Eastern Black Sea Elevator Industrialists Association (DOKAS) Barış Sancak took the floor and reminded that they have done good things about the maintenance prices since 2020, when he took office. Sancak stated that both members and the non-members of the association try to keep up with the list they published and said, “We achieved good results, but we are not that good in getting together. We get in touch with the new people and tell them our association and federation. We need support for preparing a booklet including the issues discussed here, distributing them to the companies and raising the awareness of the sector and managers.”
MERSİN AS. DER.: “Membership should be a must”
Mersin Elevator Industrialists Association (MERSİN AS. DER.) Chairman Muzaffer Hızarcı stated that the membership to the association and federation should be a must for the elevator company within the scope of a declaration that should be issues by the Union of Municipalities. Hızarcı said, “When the elevator company brings its registration file to the municipality, the municipality will demand membership certificate and the company will have to be the member of the closest association.”
KIRASDER: “We need state support”
Kırıkkale Elevator Industrialist Association (KIRASDER) Chairman Kemal Yıldırım: “We have meetings with the Chamber of Commerce. We exchange opinions on maintenance prices and ask them to give an advisory document. We worked on it. Now, there are 13 companies in Kırıkkale. Unfortunately, cleaning companies try to establish elevator companies and there are those which try to cooperate with elevator companies. Or there are the ones which attempt to establish cleaning companies. Our profession requires specialization. While there are many huge companies to compete with, we deal with small things. We are not good at imposing sanctions. We need state support.”
KAYSAD: “The number of maintenance companies increased as the prices went up”
Kayseri Elevator and Escalator Industrialists Association (KAYSAD) Chairman Naim Pedük said, “Kayseri tried many things. The municipality did not license the companies without an association stamp. If a company is not the member of the association and did not make their payments, they could not get their license. We also determined a base price in Kayseri. The price list did not change for three years but, when the prices increased, the number of companies also increased. We also got complaints from other cities. Then, we issued an official list through the Chamber of Commerce. Before, we had base price determined by the association member, but we could not sustain it due to the increasing number of companies. Probably, the determining base price will not be successful if the federation will not be a chamber. So, we should work with this aim because it is the only way to get result.”
Objection to penalties is possible
TASFED’s representative Attorney Erdem Serdar Vurgun evaluated the fines between 50-650 thousand TL, as per three risk groups determined by the New Market Surveillance Directive and underlined that making objection against the fines is possible. Vurgun answered the criticisms about the uncertainty of penalties and said, “I think such a large gap is illegitimate. The amount of the penalty is not based on the size of the company. In such cases, the court reverses the judgment. If such a penalty is imposed, a lawsuit must be filed. The court askes why the penalty is imposed in a high price. If the penalty falls short, then the court cancels it. It should have an objective reason. Administrations cannot be given such discretion while the courts do not have a wide discretion.”
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