Today's Labour News

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SaftuANA reports the SA Federation of Trade Unions (Saftu) has condemned the possible use of Public Investment Corporation (PIC) funds to bail out bankrupt state-owned enterprises (SOEs) such as SAA.  

Saftu said it was shocked at Finance Minister Malusi Gigaba’s statement to labour federation Cosatu that he could not guarantee that government would not attempt to use PIC funds to capitalise SOEs.  The federation said in a statement on Saturday that this confirmed earlier reports “that the government wants to use workers’ money from their pension and provident funds to bail out loss-making state-owned enterprises, in particular South African Airways (SAA), which reportedly needs almost R10-billion to stabilise its cash flow and guarantee no loss of jobs.”  Bailing out SOEs that had been bankrupted through mismanagement and corruption could not possibly amount to safe and well-managed use of the funds, Saftu said.  Saftu indicated its support for the call by its affiliate Nupsaw for the National Treasury to refrain from using the PIC to re-finance SAA and said it wanted an immediate moratorium on any further use of Government Employee Pension Fund (GEPF) funds by the PIC “until the boards of these loss-making monoliths have been sacked and replaced by democratic and accountable representatives of the community, workers, and the country.”

  • Read this report in full at eNCA
  • Read Saftu’s press statement at Saftu online


Get other news reports at the SA Labour News home page