In our Thursday roundup, see summaries
of our selection of South African labour-
related stories that have appeared since
midday on Wednesday, 24 May 2017.
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Minister Lynne Brown knew of Molefe’s cushy contract, says Solidarity BusinessLive reports that in papers filed at the High Court in Pretoria on Wednesday, Solidarity claimed that Public Enterprises Minister Lynne Brown knew about Brian Molefe’s employment contract at Eskom. The trade union’s Deon Reyneke said Eskom chairman Ben Ngubane wrote to Brown two months after Molefe’s initial appointment in November 2015 to make arrangements for Molefe’s retirement. Ngubane’s letter to Brown contradicts her statements to Parliament that she had nothing to do with Eskom’s employment relationship with Molefe. She said on Tuesday: "When Mr Molefe quit Eskom in November 2016, I was under the impression he had resigned. I was not aware that he had applied for early retirement. This I only learned in April 2017, after reading in the media that Mr Molefe was receiving a R30m payout from Eskom." But in a letter attached to Solidarity’s affidavit, Ngubane sought Brown’s approval to include these provisions in Molefe’s five-year contract. Solidarity has joined the DA in asking the court to review and set aside Eskom’s recent decision to bring Molefe back as CEO. Read this report by Moyagabo Maake in full at BusinessLive Eskom faces intensified scrutiny over Molefe's reappointment as CEO BusinessLive reports that Eskom is facing multipronged investigations into its reappointment of Brian Molefe as CEO, with Parliament’s public enterprises committee deciding on Tuesday to institute an urgent parliamentary inquiry into the matter. The inquiry could be on the lines of the one into the SA Broadcasting Corporation (SABC) and may see Molefe being called to face questions in Parliament, of which he was a member until earlier this month. The focus of disapproval is also turning towards Public Enterprises Minister Lynne Brown, who came in for a roasting by MPs, including by former finance minister Pravin Gordhan. It was said that it appeared she had not exercised her oversight role properly. A short report is at BusinessLive. Read too, ANC asks government and parliament to act over Molefe, at TimesLive. And also, The desperate attempt to explain Molefe’s reinstatement at Eskom, at TimesLive Cosatu welcomes probe into Brian Molefe’s reinstatement at Eskom Business Report writes that Cosatu has welcomed the decision of Parliament's Public Enterprise Committee to institute an urgent inquiry over Eskom’s reappointment of Brian Molefe as CEO. The labour federation said on Wednesday it hoped it would be a wide-raging investigation. It added that this inquiry would help spare the country of any further humiliation sparked by Molefe’s return to the power utility. Saying that the ‘Molefe saga’ also placed a spotlight on the culture of exorbitant salaries for company executives, Cosatu expressed the hope that Parliament would consider introducing legislation that would regulate remuneration of both public and private sector executives. It said that because the country faced a high wage inequity gap between executives and subordinates, it was unacceptable that executives' high salaries went unchallenged. Read this report by Zintle Mahlati in full at Business Report Eskom to investigate if Molefe reinstatement documents were destroyed Fin24 reports that Eskom will investigate whether documents and correspondence that relate to the reinstatement of Brian Molefe as chief executive were destroyed shortly after they were requested by Parliament. This follows a statement by Democratic Alliance (DA) MP Natasha Mazzone on Wednesday, which stated: “The DA has it on good authority that Eskom is currently in the process of destroying key documents and correspondence relating to the Molefe fiasco.” Molefe’s reinstatement is a matter of legal and legislative concern. The DA’s trial to have his reinstatement rescinded will be heard in the North Gauteng High Court on 6 June. In addition, Eskom was on Tuesday given 14 days by Parliament to hand over all communication and documents relating to his reinstatement for its own inquiry into the matter. Public Enterprises Minister Lynne Brown has asked Eskom chairperson Ben Ngubane to investigate the matter of the documents. Read this report by Matthew le Cordeur in full at Fin24. Read the DA’s press statement in this regard at DA Newsroom. See too, DA doesn't trust Ngubane to investigate Eskom document shredding allegations, at TimesLive Public Enterprises Minister to set up Eskom corruption probe headed by retired judge Mining Weekly reports that Public Enterprises Minister Lynne Brown has announced that she will institute a “broad scope” investigation into allegations of corruption currently hanging over state-owned electricity utility Eskom. The terms of reference and form of the investigation remain to be finalised, but Brown indicated that it would be overseen by a retired judge, so as to ensure that the credibility of the remedial actions arising was not questioned. The terms of reference would likely include a review of seven forensic reports already conducted into allegations of corruption and mismanagement at Eskom since 2007. Special focus would also be given to Eskom’s coal procurement processes, which featured heavily in the ‘State of Capture’ report released by then Public Protector Thuli Madonsela, last year. Brown said the “deep dive” probe was not designed to disrupt or delay a proposed Parliamentary Portfolio Committee investigation into Eskom, which she said should proceed. Read this report in full at Mining Weekly Other internet posting(s) in this news category
Lonmin re-starts two shafts closed due to community job protests Mining Weekly reports that platinum producer Lonmin re-opened two of its shafts on 20 May as community protests had ceased, a spokesperson said on Wednesday. The E2 and E3 shafts, which were temporarily closed after the community demanded jobs at the mine, were fully opened on Saturday but had been paused after the death of a local chief, spokesperson Wendy Tlou said. The two shafts, which were closed on 3 May, contribute 3% to 4% of total production. This short report is at Mining Weekly NUM to begin wage negotiations with Kumba Iron Ore this week ANA reports that the National Union of Mineworkers (NUM) said on Tuesday that it would start wage negotiations this week with Kumba Iron Ore (KIO) as the parties’ three-year agreement comes to an end on 30 June. On Thursday, the union confirmed on Twitter that it had tabled the demands of its members in KIO operations in the Northern Cape. NUM chief negotiator at KIO, Lucas Phiri, said the union’s demands, amongst others, were to improve the salaries of workers, conditions of employment, housing and the employee share ownership scheme. “We will be approaching these wage negotiations with an open mind looking at the performance of the company, share price, and inflation,” Phiri indicated. Read this report in full at Mining Weekly Other labour/community posting(s) in this news category
Other general internet posting(s) on mining
Unpaid municipal salaries ‘due to FNB hack’ lead to Pietermaritzburg strike News24 reports that Msunduzi Local Municipality staff members downed tools on Wednesday, halting traffic in the Pietermaritzburg CBD after it emerged that they had not been paid. Staff members are normally paid on the 24th of each month, but there was no money in their accounts on Wednesday morning. The downing of tools began with staff from the refuse division, who converged at city hall and were soon joined by staff from other departments. A power failure is believed to have been initiated by angry municipal staff. Acting city manager Sizwe Hadebe told workers that his understanding was that “the system at FNB was hacked and that is why there are such problems." A FNB spokesperson confirmed that the municipality was the bank’s client, but dismissed suggestions of a systems hack. The SA Municipal Workers’ Union (Samwu) decried the response from the municipality. Read this report in full at News24
Public Service Association rejoins Fedusa in major labour shake-up BusinessLive reports that the 230,000-member Public Service Association (PSA) has rejoined the Federation of Unions of SA (Fedusa) in a move that is set to change the labour landscape. This brings Fedusa’s total claimed membership to 700,000, giving the organisation a major boost in the light of the threat that a new labour federation, the South African Federation of Trade Unions (Saftu), poses. The development also has implications for the balance of power in the Public Service Co-ordinated Bargaining Council (PSCBC), where government employees’ pay and working conditions are negotiated and where Cosatu could be the biggest lower. Public sector pay talks are expected to begin later in 2017 before the current three-year agreement lapses at the end of the current financial year. Read this report in full at BusinessLive (paywall access) Cosatu forgives Sdumo Dlamini for attending Zuma’s birthday bash after apology The Citizen reports that Cosatu president Sdumo Dlamini will reportedly not face any consequences for attending President Jacob Zuma’s 75th birthday bash in April after he contradicted the labour federation’s position for the president to step down. The Star reported on Wednesday that the labour federation’s affiliates, who were aggravated by Dlamini’s presence at the birthday celebrations in Soweto, had forgiven him after he apparently apologised during Cosatu’s special central executive committee (CEC) meeting on Monday. Speaking at Zuma’s party, Dlamini said workers affiliated to the federation wished him the best and were firmly behind his leadership. Cosatu announced on Tuesday that the CEC had resolved to ban Zuma from addressing its central committee meetings and events, saying its decision to allow Zuma to speak at its main Workers’ Day Rally in Bloemfontein earlier this month was inconsistent with its stance that he must resign. Read this report in full at The Citizen. Read too, S’dumo Dlamini apologises for attending Zuma bash, at The Star
Consumer inflation at 5.3% in April mainly due to food prices BusinessLive reports that Statistics SA on Wednesday reported the consumer price index (CPI) for April at 5.3% year-on-year, down from 6.1% in March. The market had projected inflation would be between 5.4% and 5.6%. Investec economist Kamilla Kaplan said much of the deviation between consensus expectations and the actual headline CPI outcome could likely be accounted for by food price developments. The contribution to consumer inflation from food and non-alcoholic beverages decreased from 1.5 percentage points to 1.1 percentage points year-on-year between March and April. Kaplan added that the inflation trajectory showed a return to the Reserve Bank’s target range of 3% to 6% in 2017, on softer food price growth and a continued absence of meaningful demand-led inflation. A short report by Reitumetse Pitso is at BusinessLive. See too, Inflation falls, boosts hopes for rate cut this year, at Moneyweb. And also, CPI surprise drop to 5.3%, on page 17 of Business Report of 25 May 2017
Following outsourcing protest, TUT reopens on Thursday under police protection News24 reports that classes on the main campus of the Tshwane University of Technology (TUT) will reopen on Thursday under the watchful eye of police. Classes were suspended on Wednesday following protest action by staff who are part of the #OutsourcingMustFall movement. TUT spokesperson Willa de Ruyter said a group of security guards had been staging an unlawful protest outside the main gate of the Pretoria campus on Wednesday, which blocked off access and led to the university cancelling classes. "A contingency plan, in collaboration with the SAPS and private security providers, has been put in place to ensure that all activities can resume tomorrow (Thursday)," said De Ruyter. The protest related to the status of outsourced staff in catering, cleaning and security. A meeting of the Insourcing Task Team has been scheduled for 26 May. Read this report by Alex Mitchley in full at News24. Read too, TUT campuses brought to standstill again on Thursday, at Pretoria News
Baxter's salary is 'no one's business', says Safa TimesLive reports that SA Football Association (Safa) president Danny Jordaan has intimated that new Bafana Bafana coach Stuart Baxter is either earning the same or less than his predecessor, Shakes Mashaba. Briefing parliament's sports and recreation portfolio committee on Wednesday, Jordaan denied rumours that Baxter would earn R1-million a month or that he had demanded that his son, Lee, be appointed a goalkeeping coach with the national team. At yesterday's briefing, both Jordaan and Safa CEO Dennis Mumble flatly refused to reveal the exact amount paid to Baxter despite repeated requests by DA MP Tsepo Mhlongo. "We have not published any salaries of any of our staff, including the former coach. What you read in the papers ... they are throwing around figures that have no basis in reality," said Mumble. He added that Baxter's salary was a contractual matter and that the two parties had signed a confidentiality clause. Mashaba's R583,000-a-month package became public knowledge during the previous coach's CCMA hearing against his dismissal by Safa, which is still under way. Read this report by Aphiwe Deklerk in full at TimesLive
Numsa wants full disclosure of GM's Isuzu deal eNCA reports that the National Union of Metalworkers of SA (Numsa) said on Wednesday that it was demanding full disclosure on General Motors’ (GM’s) deal with Isuzu. This came after the Numsa officials met with GM employees on Tuesday in Port Elizabeth to discuss details of the company’s decision to disinvest from SA. Last week, GM announced that it was disinvesting and that it had sold its local operations to Isuzu. As a result, production and sales of all Chevrolet models would cease, and Isuzu would take over the firm’s operations. Since that announcement, GM has filed a notice to retrench about 600 workers out of 1,500 workforce. Numsa general secretary Irvin Jim said in a statement that they were “disgusted” by the manner in which GM had conducted itself. He claimed that the number of workers likely to be retrenched would be much higher, especially because thousands of workers in related industries would be affected. "Once GM has disclosed fully the terms of the agreement we may be in a position to put forward alternatives to mitigate against further job losses,” Jim indicated. Read this report in full at eNCA. Read too, General Motors rebuffs allegations of acting in bad faith, at The Citizen Other internet posting(s) in this news category
Sadtu not linked to jobs-for-cash scandal, says Angie Motshekga TMG Digital reports that Basic Education Minister Angie Motshekga has shifted the blame for the teaching jobs-for-cash scandal to district officials in provincial education departments. Addressing a media briefing prior to her budget vote in Parliament on Wednesday‚ Motshekga said that evidence at her disposal showed that no evidence pointed to the SA Democratic Teachers’ Union (Sadtu) as being linked to the scandal. But Democratic Alliance (DA) education spokesperson Gavin Davis said Motshekga was being disingenuous and lacked the courage to tackle the powerful union‚ which was blamed for the scandal in an inquiry commissioned by Motshekga’s own department. "The minister is constrained by the fact that Sadtu is an ally both of the ANC and of Deputy President Cyril Ramaphosa‚ whom she supports for the ANC leadership‚" said Davis. Read this report by Jan-Jan Joubert in full at BusinessLive. Read too, Motshekga "lacks courage" to reign in Sadtu, claims DA, at News24 Other internet posting(s) in this news category
Hlaudi Motsoeneng fails in labour court bid to stop his SABC disciplinary hearing TMG Digital/TimesLive reports that a Labour Court application brought by Hlaudi Motsoeneng was dismissed on Wednesday afternoon with him being ordered to pay the costs. The former chief operating officer of the SA Broadcasting Corporation (SABC) had approached the court in an attempt to have a disciplinary hearing stopped and get the chairperson of the disciplinary committee‚ Nazeem Cassim‚ recused. Motsoeneng is charged with misconduct following a media conference he called last month in which he criticised the SABC's decision to scrap the 90% local music policy that he implemented. Motsoeneng was scheduled to appear before the disciplinary committee on Wednesday evening‚ but his attorney said Cassim had written to them and instead requested a meeting. Motsoeneng's team are due to file an affidavit stating Motsoeneng's defence by next Wednesday‚ and the matter is now expected to be argued on Friday next week . Read this report by Jan Bornman in full at TimesLive. See too, Motsoeneng hearing postponed, on page 2 of The New Age of 25 May 2017
Radebe's sexual overtures to junior staffer unacceptable, says Susan Shabangu ANA reports that Minister of Women in the Presidency, Susan Shabangu, said on Wednesday about her cabinet colleague’s sexual overtures to a junior government employee that it was unacceptable for leaders in SA to make remarks that undermined women. During a media briefing ahead of her budget vote, Shabangu was asked about Planning, Monitoring and Evaluation Minister Jeff Radebe’s explicit text messages to a 29-year-old government communications photographer and the example it set. Shabangu commented: “The issue of leaders who make sexual overtures, it’s unacceptable… There’s no way we can allow leaders who continue to undermine women. This is a matter that needs to be looked at within the relevant structures…” Radebe admitted to the text messages on Monday and apologised. This report is at eNCA
Angry Durban commuters torch train, try to dig up line after breakdown TMG Digital/TimesLive report that angry commuters torched a train they were travelling on after it broke down at around 6pm on Wednesday in Briardene in Durban. The Metrorail passenger train stalled after experiencing mechanical problems. Two hours later‚ after being promised alternative transport‚ furious commuters vented their frustration by setting the train alight. Passing vehicles‚ including police vehicles‚ were damaged as protesters hurled bricks at them. The protestors also allegedly tried digging up parts of the railway line. Crowd control methods were used to disperse them. Several people were left with minor injuries and were attended to by emergency services. A short report by Suthentira Govender is at TimesLive
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