news shutterstockIn our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 10 August 2018.


TOP STORY

Bombshell plan to lay off 30,000 public servants in next three years

Mail & Guardian reports that President Cyril Ramaphosa’s administration is planning to lay off 30,000 public servants in the next three years as part of the government’s cost-cutting measures.   Insiders who attended this week’s Cabinet lekgotla said the treasury has set aside R4-billion for this financial year to kickstart the process of issuing severance packages. The planned layoffs will apparently reduce the government’s salary bill by R20-billion. Last year, the treasury announced it was considering the implementation of voluntary severance packages to reduce the public sector wage bill, but attempts to do that failed, prompting the government to opt for “employer initiated” packages. Those most likely to be affected were the government’s older and more experienced employees. The proposed job cuts come at a time when the process to reconfigure the government is at an advanced stage and is likely to be implemented after next year’s general elections. According to government insiders, there are plans to cut the number of departments from the current 36 to between 18 and 24. The lay-off move is likely to put Ramaphosa on a collision cause with labour federation Cosatu, which supported his bid to become the ANC president in December.

Read this report by Dineo Bendile, Paddy Harper & Govan Whittles in full at Mail & Guardian

Unions lambast Ramaphosa’s plan to cut 30,000 state jobs

The Citizen reports that President Cyril Ramaphosa is headed for his first potentially bruising duel with Cosatu as the labour federation threatens to pull out of the upcoming jobs summit, and potentially end the ruling alliance, if his government goes ahead with its alleged plan to retrench 30,000 civil servants.  The public sector’s biggest union, the National Education Health and Allied Workers’ Union (Nehawu), threatened to “fight fire with fire” against the retrenchments.  The outcry came as reports surfaced about a plan by Cabinet to retrench more than 30,000 civil servants in the next three years as a way to reduce the state wage bill to meet the Ramaphosa government’s budgetary austerity and realise a lean administration.  Treasury has apparently set aside R4 billion for this financial year to kickstart the process of issuing severance packages.  Nehawu’s Zola Saphetha reacted:  “As Nehawu, we will vehemently reject any job losses in the public service because of austerity measures meant to remedy the debt burden of the public service.  Workers will not continue to vote for a party that does not go out of its way to protect jobs and prioritise service delivery, hence it should not take our support for granted.”  Cosatu entered the fray and even threatened to pull out of the jobs summit that Ramaphosa has planned later this year.  The SA Federation of Trade Unions (Saftu) described the plan as an “outrageous slaughter of jobs”.  But Public Service and Administration Minister Ayanda Dlodlo denied government planned to implement mass retrenchments as reported.

Read this report by Eric Naki in full at The Citizen


OCCUPATIONAL HEALTH & SAFETY

Joburg man to appear in court for killing car guard over two missing bags

News24 reports that a man is set to appear in the Johannesburg Magistrate's Court on Monday for allegedly killing a car guard after he noticed items were missing from his vehicle.  The man, 25, had parked his car on the corner of Rissik and Pritchard Streets on Tuesday evening to buy food.  When he returned to the vehicle, he realised two bags were missing.  They contained his ID book, matric certificate and toiletries.  Police spokesperson Captain Xoli Mbele said on Sunday that the suspect apparently questioned the 26-year-old car guard about his bags and they got into a fight.  He allegedly assaulted the guard with his fists before driving off.  Paramedics arrived at the scene and declared the guard dead.  Mbele said the man handed himself over to the police on Friday after they had visited his home in Alexandra.

Read the original of this report by Jenna Etheridge at News24


MINING LABOUR

Attitudes harden over looming Implats job cuts

Mail & Guardian reports that Impala Platinum (Implats) recently announced its intention to cut 13,000 jobs over the next two years, reducing full-time and contracted employees from 40,000 to 27,000 by 2021.  This led to government accusing the platinum producer of being reckless.  The resultant tensions have led one observer to note that conditions were similar to those leading up to the 2012 Marikana tragedy, in which 44 people were killed.  David van Wyk of the Bench Marks Foundation, which monitors corporate social responsibility, warned that another Marikana may be on the cards, should the retrenchments go ahead.  The Association of Mineworkers and Construction Union (Amcu) last week threatened to strike if jobs were cut.  “We will make sure that there is not an ounce of platinum that will come out of the ground,” Amcu president Joseph Mathunjwa said on Tuesday.  Although the National Union of Mineworkers (NUM) agreed with Amcu’s position, spokesperson Livhuwani Mammburu said the union had not yet discussed its stance on the proposed job cuts.  He said:  “As NUM we can even work with Amcu and we do not have a problem at all, if they want us to take the fight to Impala Platinum ... Let’s do it together.  As workers we must fight together for common challenges we are facing.”

Read this report by Thulebona Mhlanga in full and view a related graph at Mail & Guardian. Read too, Amcu warns of mass action over Implats job cuts, at The Citizen

Hundreds gathered on Wednesday in Brits to demands jobs at mines

ANA reports that hundreds of unemployed people gathered on Wednesday at the Brits sports ground in the North West province, ahead of a march to mining companies in the area to demand jobs.  Provincial chairperson of the Village, Township and Small Dorpies (VTSD) Chamber of Commerce in North West, Robert Ngwenya, said they wanted the mines to employ people.  "We cannot leave this guys, exploiting our people, now that there are more foreigners working in our mines.  We are saying let's start locally..." he stated.  Ngwenya went on to indicate:  "What we want to achieve is that, number one, we want people to be employed, number two, equal opportunities in the mines, we are not going to compromise on that.  Either you give us the 30 percent and give us part of the shafts that we want in these mines because we are tired of being given small things and we are told they are empowering us.  What we need is what is in the mining charter and they must implement that."  The group had been bused in from different areas of Madibeng municipality.

Read this report by Molaole Montsho in full at Business Report. Read too, 'Hire us or leave our land‚' demand residents of platinum belt, at Timeslive


INDUSTRIAL ACTION / STRIKES / LOCK-OUTS

Amid continuing wage strike, Gautrain services to remain limited going into new week

EWN reports that Gautrain services will be limited heading into this week as wage negotiations between striking workers and operating company Bombela remain deadlocked.  The strike will enter its fifteenth day on Monday, with unions calling on Transport MEC Ismail Vadi to intervene.  The Federation of Unions of SA (Fedusa), its affiliate the United National Transport Union (Untu) and the transport service were involved in talks throughout Sunday involving two senior CCMA commissioners.  Workers are apparently now calling for a 9% wage increase, an R15,000 incentive bonus and other benefits such as housing, travel and late shift allowances.  Bombela, meanwhile, is apparently offering 8.6%.  Fedusa general secretary Dennis George commented that “we’re making slow progress, and we might probably have an agreement later on Sunday that we can present to the workers.”

Based on reports by Ahmed Kajee at EWN and EWN. Read too, Fedusa hopeful as Gautrain talks go into Sunday afternoon, at Fin24

CCMA proposals to end Gautrain strike to be presented at Untu mass meeting on Monday morning

The Federation of Unions of SA (Fedusa) issued a press statement late on Sunday night to indicate that its leadership and the leadership of its affiliate the United National Transport Union (Untu), would be presenting new proposals to striking Untu members on Monday morning at 09:00am.  The proposals were tabled by the CCMA in a marathon mediation meeting on Sunday.  The purpose of the mass meeting will be to obtain a mandate to end the current stalemate with the Bombela Operating Company, which runs the Gautrain.  The meeting will be held at the Gautrain Midrand Depot and will be followed by a press conference at the same venue at 10:00am.  Untu represents more than 90% of workers at Gauteng, where a wage strike will enter its fifteenth day on Monday.

Read Fedusa’s press statement at SA Labour News


COLLECTIVE BARGAINING / WAGE NEGOTIATIONS

Eskom negotiations deadlocked, but this time over sabotage charges and not over wages

BusinessLive reports that the Eskom wage negotiations deadlocked on Wednesday, just as workers accepted the power utility’s wage offer.  Disagreement between the company and trade unions is now over Eskom’s decision to charge workers for sabotage, unlawful strike action and disruptions at power stations during recent labour unrest.  The illegal industrial action forced Eskom to implement load-shedding as plant operations were negatively impacted.  Eskom employees are not legally permitted to take part in strikes as their work is considered an essential service.  On Wednesday, unions were apparently ready to sign the wage deal that guarantees workers wage increases of 7.5% in 2018 and 7% for 2019 and 2020, with a once-off cash payment of R10,000.  Eskom also offered workers a consumer price index-linked housing allowance for three years.  Solidarity, accepted the wage offer last week.

Read this report by Theto Mahlakoana in full at BusinessLive

Solidarity and ArcelorMittal SA reach deal on wages

Netwerk24 reports that steel manufacturer ArcelorMittal SA (AMSA) and trade union Solidarity on Wednesday signed a wage agreement.  The three-year deal encompasses a 7%-increase in respect of the medical contribution and a 7% increase in wages for employees on the H and I grades, and a 7.5%-increase for employees on the J and K grades, for year 1.  In years 2 and 3, a 7%-increase will apply for all grades and in respect of all allowances.  The settlement comes after the union on 13 July referred a dispute with AMSA to the Metal and Engineering Industries Bargaining Council (MEIBC) as negotiations had yielded no results after various rounds of negotiations.  According to Marius Croucamp, Solidarity’s deputy general secretary for the metal and engineering industry, the wage increase and allowance increase will be backdated to 1 April this year.  The National Union of Metalworkers of SA (Numsa) is still in dispute with the employer and Croucamp commented that:  “If the other trade union secures a better offer, this offer will also apply to our members.”  According to Engineering News, Numsa is demanding an 11% wage hike.

Read this report by Francois Williams in full in Afrikaans at Netwerk24 (paywall access). Read Solidarity’s press statement at Solidarity News


CAMPAIGNS / PROTESTS / MARCHES

Fawu’s #NotJustAJob campaign highlights threat illicit cigarette trade poses to jobs

IOL News reports that the Food and Allied Workers Union (Fawu) has embarked on a campaign to highlight the plight of workers who face losing their jobs to the ballooning illegal cigarette trade.  Using the hashtag #NotJustAJob, Fawu's tweets recount the personal stories of individuals employed in the South African tobacco industry whose jobs are being threatened by cheap, illegally imported cigarettes.  These illegal imports are not subject to government's 'sin tax' and therefore are sold on the streets for as little as R10 a packet, whereas legal, taxed cigarettes are priced from around R25 upwards.  Added to that, Parliament is mulling new legislation which seeks to ban advertising of tobacco products completely, as well as to criminalise smoking in public.  Local cigarette manufacturers have warned that the illicit cigarette trade, high taxes and the proposed new legislation could result in huge cutbacks in labour.  Fawu says the 11,000 jobs which potentially stand to be lost will destroy communities.

Read this report by Lou-Anne Daniels in full at IOL News. Read too, New tobacco bill will put thousands out of work, say industry groups, at BusinessLive. And also, Outrage over proposed tobacco bill, on page 1 of The Sunday Independent of 12 August 2018

Other internet posting(s) in this news category


UNION NEWS / STRUCTURES / ORGANISATIONAL REPORTS

Numsa plans to list financial services firm on JSE

BusinessLive reports that the National Union of Metalworkers of SA (Numsa) is planning to list 360 Financial Services Group (360FSG), a subsidiary of its investment firm and owner of Doves funeral business, on the JSE in the next two years.  The financial services arm accounts for about 98% of Numsa Investment Company (NIC), a R1bn-turnover-a-year business, according to group CEO Khandani Msibi.  It offers a range of financial products, including retirement savings, health insurance, vehicle and household goods insurance and legal cover to Numsa’s 340,000 members and the public.  "The reason [for the listing] is for us to release cash to execute other areas of our strategy, for instance for us to build the industrial division," Msibi explained.  The investment company, which employs more than 1,000 people, has three subsidiaries — 360FSG, Numsa Industrial Holdings, which owns a stake in MoFaya Beverage, and the Numsa Property Group.  The NIC is owned by the Manufacturing Workers Trust, with Numsa members as beneficiaries.  However, there is no legal relationship between Numsa and the NIC.

Read this report by Natasha Marrian in full at BusinessLive


PRICES / TARIFFS / VAT

VAT panel recommends zero-rating of white bread, sanitary products, school uniforms and nappies

Engineering News reports that the independent panel established to review the current list of items that are zero-rated for value-added tax (VAT) has recommended that white bread, flour, cake flour, sanitary products, school uniforms and nappies should be included in the list of zero-rated items.  Finance Minister Nhlanhla Nene on Friday released the report compiled by the panel for public comment.  He appointed the panel after the announcement in the February national budget of the increase in the VAT rate from 14% to 15% from 1 April.  The public has until 31 August to submit comments.  As part of its findings, the panel also recommended that government expedite the provision of free sanitary products to the poor and that the zero-rating of school uniforms be done only if they can be separated from general clothing.

Read this report in full at Engineering News. Read too, Expert panel recommends white bread, school uniforms be zero VAT rated, at Fin24


APPOINTMENTS / RECRUITMENT / STAFFING / VACANCIES

Humans proved to be biased when hiring, but can artificial intelligence serve minorities better?

This interesting US article from Bloomberg looks at whether artificial intelligence (AI) lives up to the promise to make hiring unbiased.  There is certainly plenty of room for improvement because recruiters and hiring managers bring their own biases to the process, studies have found.  People pick whom they like based on unconscious biases.  AI advocates argue that technology can eliminate some of these biases.  Instead of relying on people’s feelings to make hiring decisions, some US companies use machine learning to detect the skills needed for certain jobs.  The AI then matches candidates who have those skills with open positions.  The companies claim not only to find better candidates, but also to pinpoint those who may have previously gone unrecognised in the traditional process.  But, research has found that machine learning in hiring, much like its use in facial recognition, can result in unintentional discrimination.  Algorithms can carry the implicit biases of those who programmed them.  Or they can be skewed to favour certain qualities and skills that are overwhelmingly exhibited among a given data set.  Companies can take measures to mitigate these forms of programmed bias.  Pymetrics, an AI hiring startup, has programmers audit its algorithm to see if it is giving preference to any gender or ethnic group.  Stella IO also has humans monitoring the quality of the AI.  "While no algorithm is ever guaranteed to be foolproof, I believe it is vastly better than humans," said the founder.

Read this report by Rebecca Greenfield & Riley Griffin in full at BusinessLive


NATIONAL MINIMUM WAGE / LIVING WAGE

National minimum wage moves a step closer to implementation with NCOP committee approval

BusinessLive reports that the National Council of Provinces’ (NCOP’s) select committee on economic and business development on Tuesday adopted the national minimum wage (NMW) bill, moving it a step closer to its implementation.  The bill, which provides for a national minimum wage of R20 per hour, was adopted without amendment and will now proceed to the plenary of the NCOP for adoption.  After that it will be forwarded to President Cyril Ramaphosa for his signature and enactment.  Agricultural workers are set to earn R18 an hour and R15 will be stipulated for domestic workers.  Vusi Magwebu of the Democratic Alliance (DA) opposed the general application of the proposed NMW, saying that not all economic sectors could afford it.  The EFF’s Brenda Mathevula opposed the R20 NMW as being too low.  The ANC’s Moses Mhlanga supported the bill saying that it was a start.  Labour federation Cosatu welcomed the passage of the NMW bill, as well as the Labour Laws Amendment Bill which provides for parental and adoption leave.  The Labour Relations Amendment Bill, which provides for secret strike ballots and rules for picketing, and the Basic Conditions of Employment Amendment Bill, which enhances the powers of the CCMA, were also adopted without amendment.

Read this report by Linda Ensor in full at BusinessLive

Numsa berates ‘paltry’ national minimum wage

The Star reports that the National Union of Metalworkers of SA (Numsa) has reiterated its rejection of the proposed national minimum wage bill.  The bill proposes a national minimum wage (NMW) of R20 an hour, excluding sectors such as farm and domestic workers.  When passed into law, it is expected to increase the earnings of more than 6 million working South Africans.  Numsa’s acting national spokesperson Phakamile Hlubi-Majola said:  “We are very clear that we reject the poverty minimum wage because again… this is the government guaranteeing cheap labour.  Most companies were very satisfied with the R20 per hour minimum wage because they will pay very low salaries.  We know no one can afford to take their kids to school and access proper healthcare earning only R20 per hour.  We reject this minimum wage in its entirety.”  The minimum wage for farm workers will be R18 an hour and domestic workers R15.  The minimum wage for workers on the Expanded Public Works Programme (EPWP) will be R11 per hour.

The original of this report by Mary Jane Mphahlele appeared on page 7 of The Star of 7 August 2018


HIGHER EDUCATION / QUALIFICATIONS

Delays in issuing TVET certificates hampering job seekers from getting employment

BusinessLive reports that MPs were told on Wednesday that the delays in issuing certificates to students from technical and vocational education training (TVET) colleges were hampering their capacity to find employment.  The umbrella body for TVET colleges, the SA College Principals’ Organisation (Sacpo), told the select committee on education and recreation that some students had waited more than 10 years for their certificates.  Sacpo’s Hellen Ntlatleng sketched a picture of a sector in disarray: certificates sometimes had incorrect details, or were sent by the Department of Higher Education & Training (DHET) to the wrong campuses; college officials failed to arrange for certificates to be sent to the correct campuses in their institutions; and colleges struggled to get feedback from the DHET about outstanding certificates.  Despite the DHET’s assurances in 2017 that the backlog in issuing diplomas and certificates had been cleared, many students were still waiting for their documents, Ntlatleng claimed.  The DHET’s acting chief director for examinations, Daniel Ramakopa, challenged her portrayal of the issue, saying the backlog had largely been cleared.

Read this report by Tamar Kahn in full at BusinessLive


DISCRIMINATION / SEXISM / RACISM

Civil Engineering Institute CEO keeps his job after ‘sexist’ column

The Citizen reports that the CEO of the SA Institution of Civil Engineering (SAICE), Manglin Pillay, will keep his job after apologising for writing a column that was widely condemned as sexist.  The organisation called an emergency meeting on Wednesday, after which it issued an apology for the article and said that, while Pillay would keep his job, he would face internal discipline.  The column was featured in the July issue of the industry magazine.  In it, Pillay questioned whether there should be investment in attracting women to the science, technology, engineering and mathematics (STEM) fields, or investment in creating more gender equal societies.  He claimed that women preferred not to occupy high-profile executive posts, and would rather stick to “more important enterprises, like family and raising children”.  SAICE said:  “While the publication of Pillay’s article was unfortunate, we cannot ignore his invaluable contribution to SAICE and to the broader engineering sector over the past eight years.  The board has accepted his apology and his acknowledgement of the public furore this has caused.”  SAICE was slammed for not doing enough to distance itself from Pillay’s words by women engineers’ advocacy group WomENG, which said the response highlighted ‘sexism and misogyny’ in the industry.

Read this report in full at The Citizen. Read too, Manglin Pillay’s ‘derogative and patronising’ comments keep him his job, at BusinessLive. Read SAICE’s press statement at SAICE News

Other internet posting(s) in this news category

  • Old boys club dominates engineering, at Mail & Guardian
  • Women’s touch ‘is an asset in the engineering field’, on page 6 of Sunday Independent of 12 August 2018

 


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