In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Wednesday, 15 August 2018.
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Job cuts at South Deep a last-gasp measure, says Gold Fields CEO Nick Holland Nick Holland, CEO of Gold Fields, writes for Business Day that the gold producer’s plan to potentially cut up to almost 1,600 jobs at its struggling South Deep mine is a “last-gasp measure”. The company made the announcement on Tuesday, citing mounting losses and a “consistent failure to meet mining and production targets” among the reasons for the move that could see a third of the labour force trimmed. According to Holland: “The choice is between this and serious risk to the future of South Deep and its many shareholders.” He also writes that: “Every effort has been made to avoid these significant measures, including retrenching 25% of managerial employees late in 2017; approving voluntary retrenchments for employees in the lower A, B, and C bands over the past few years; bringing in Australian and Canadian experts to assist with new mining methodology and training of current operators; and implementing various other restructuring initiatives.” The mine west of Johannesburg employs around 3,600 full-time workers and 1,900 contractors. In Tuesday’s announcement, the company said 1,100 permanent employees and 460 contractors could “potentially be impacted by the proposed restructuring”. Read Nick Holland’s article in full at BusinessLive. Read too, Mining, and the country, staring into the abyss, at The Citizen Top global investment bank unhappy with Gold Fields’ South Deep ‘debacle’ BL Premium reports that Bank of America Merrill Lynch, one of the world’s biggest investment banks, has described Gold Fields’ latest attempt to revive South Deep mine as a "debacle" and has questioned whether heads should roll. The mine has already cost investors R32bn. The gold producer said on Tuesday it would fire as many as 1,560 workers as part of a plan to stem losses at the mine, despite numerous restructurings and failed plans. "The journey we’ve been on at South Deep, it’s been bit of a misadventure," Bank of America’s Jason Fairclough said on a conference call with CEO Nick Holland, who blamed the high turnover of management at South Deep. He described South Deep as a difficult mine doing something pioneering in developing a bulk, mechanised mine at 3km below surface. "Overall, the accountability rests with the board and management. That’s one of the reasons we are making the significant restructuring decision. We believe in the asset and that it can be successful," Holland said. Read this report by Allan Seccombe in full at BL Premium (paywall access). Read too, Gold Fields slammed over job cuts, Mantashe feels mine defied law, at SA Labour News Blame mining crisis on ‘policy, regulations, relentless march of costs’, says Minerals Council The Citizen reports that the Minerals Council SA (previously called the Chamber of Mines) on Tuesday described the SA mining industry as having reached “a crisis state”. Reacting to massive impending job cuts at Impala Platinum (Implats) and Gold Fields’ South Deep operation, the Council’s spokesperson Charmane Russell said it was “clear that the South African mining industry has fared far worse than its international competitors”. Gold Fields on Tuesday announced its intention to cut 1,560 permanent and contractor jobs at its South Deep operation. Recently, Implats indicated that it would cut 13,000 jobs over the next two years. Russell said the country had forfeited its mining potential over the past two decades, with higher costs playing a large role. She indicated: “SA needs a stable, predictable and competitive mineral policy and regulatory environment. Another factor eroding the competitiveness was the upward relentless march of costs. Over the past seven years electricity prices have trebled with higher steel prices also impacting.” Read this report by Brian Sokutu in full at The Citizen. See too, ANC ‘shocked, opposed’ to job cuts in mining industry, at The Citizen Three years after tragedy at Lily mine, new owner hopes to reopen it and Barbrook BusinessLive reports that the new owners of the distressed Vantage Goldfields and its shuttered Lily and Barbrook mines are hoping to put tragedy behind them as they prepare to revive operations. Fred Arendse, CEO of the Siyakhula Sonke Empowerment Corporation (the SSC Group), said although the task ahead would be challenging, he believed Vantage Goldfields offered a unique investment opportunity and was "on the brink" of unlocking value. The mines in question are low-grade, but shallow, and produce gold at the lowest dollar cost per ounce in Africa. Vantage Goldfields was pushed into voluntary business rescue after an accident at Lily mine in 2016 that claimed three lives. The SSC Group, with the assistance of a R190m loan from the Industrial Development Corporation, signed a closing agreement in May for its subsidiary, Flaming Silver, to purchase a 74% stake in Vantage Goldfields. The only thing outstanding is the approval of the Department of Mineral Resources to transfer mining rights. Gold production at Lily is only anticipated to start in 2020. Production at Barbrook will start before the end of 2018. Arendse did not promise that the reopening of the mine would lead to the recovery of the bodies of the three workers. Read this report by Lisa Steyn in full at BusinessLive. Read too, New Lily Mine owners set to resume operations after three year hiatus, at Fin24 Postings on Mining Charter
Amcu’s inaugural Marikana massacre memorial lecture held on Thursday in Johannesburg ANA reports that the Association of Mineworkers and Construction Union (Amcu) l on Wednesday hosted the inaugural memorial lecture for slain Marikana mineworkers. The memorial lecture was held at the Sandton Convention Centre and Western Cape High Court Judge President John Hlophe delivered the lecture. The lecture was part of activities lined up ahead of the sixth anniversary on Thursday of the Marikana massacre near Rustenburg, North West. Thirty-four mineworkers were killed on 16 August 2012 at Lonmin’s Marikana operations when the police shot them at a two koppies near Nkaneng informal settlement. Seventy-eight were injured and hundreds arrested. The Marikana Support Campaign, Right2Know Campaign and Socio Economic Rights Institute (Seri) also lined up activities leading to 16 August, including the release of an Institute for Security Studies (ISS) report that details what happened at the so-called small koppie, or Scene 2. Read this report in full at The Citizen We have made significant progress in Marikana, says Lonmin ANA reports that platinum producer Lonmin said on Wednesday that it had made significant progress in delivering on its commitment to the Marikana community. "Housing has been a key focus of the company’s social and labour plans, with modern housing developments being built for many of its employees," said Khaya Ngcwembe, Lonmin human resources executive. He delivered a speech at a Marikana memorial event on behalf of Lonmin CEO Ben Magara, who could not attend due to family commitments. "Lonmin’s financial investment in housing since 2013 will have reached R500-million by the end of this year, funds that have made it possible to convert all the single-sex legacy hostels into 2,162 single units and 759 family units. One thousand, two hundred and forty apartments have also been built by Lonmin and will all be fully occupied by the end of 2018," said Ngcwembe. He furthermore indicated that families were at the centre of the 1608 Memorial Education Trust, a vehicle which had been established to ensure that the children and families of the employees who died in the massacre in 2012 received an education up to and including university level. Read this report in full at Mining Weekly Other internet posting(s) in this news category
Lutzville farmer found guilty of murdering worker from neighbouring farm, dragging him with quadbike News24 reports that a Lutzville farmer was found guilty on Tuesday of murdering a farmworker by beating him with a spade, dragging him with a quadbike, and then burying him behind his father's smallholding three years ago. He was also been found guilty of two counts of assault. Martin Visser, who owns the Dassieshoek farm, had pleaded not guilty to charges of murder, assault with intent to inflict grievous bodily harm and four charges of common assault of three other people. Visser was arrested a year and a half after the remains of Adam Pieterse, 32, who worked on a neighbouring farm, was found in the vineyards behind his father, Chris Visser's farm in March 2015. The cause of Pieterse’s death could not be confirmed owing to the state of the corpse. The State's two main witnesses were Pieterse's friends Patrick Klein and Frans Klaase, who said Visser had forced them to help dispose of the body. The trio had been drinking at Pieterse's house on the night of his murder when Visser stormed in and started hitting their friend, claiming he owed him money. The two had not tried to intervene during the attack because they had been too afraid. Sentencing proceedings are still underway. Read this report by Tammy Petersen in full at News24
Cosatu to take to the streets over unemployment after its September congress BusinessLive reports that labour federation Cosatu is planning to roll out a mass action campaign after its September national congress, a move that will fuel the simmering tension between it and President Cyril Ramaphosa. This tension comes at the wrong time for Ramaphosa and the ANC as the union federation is still weighing up its options on whether to support the ANC in the 2019 national polls. A one-day Cosatu special central executive committee meeting on Monday decided that the federation would lead workers to the streets against job losses, unemployment and suspicions of planned public sector retrenchments. At a media briefing after the meeting on Tuesday, Cosatu said it was clear that the balance of forces politically and socially were in favour of white monopoly capital, which it blamed on failures by the ANC. In a strongly worded statement, the federation said workers would have no reason to continue supporting the ANC if it did not promote and protect their interests. The national congress will be held from 17 to 20 September in Midrand. Read this report by Theto Mahlakoana in full at BusinessLive. Read too, Cosatu warns the ANC that it will pay the price in 2019 if it fails workers, at BusinessLive. Read Cosatu’s press statement following its CEC meeting at Cosatu News Cosatu threats against ANC are ‘more bark than bite’, analyst reckons The Citizen writes that the threat by labour federation Cosatu not to vote for the ANC in next year’s election might be more huff and puff than reality. Political analyst Dumisani Hlophe commented that, although Cosatu might want to project a critical public posture against the ANC, it did not mean there was much chance of a serious fight that might spoil their relationship for good. In his view, Cosatu has “to cultivate an image that they are autonomous. But we shouldn’t read that to mean their relations are going sour; it’s in the nature of the game.” Hlophe added that, currently, the relationship between the ANC and Cosatu and even the entire alliance was good. “There is a favourable relationship between Cyril Ramaphosa and some leaders in Cosatu and that will remain so for some time,” he stated. On Tuesday, following its special central executive committee (CEC) meeting on Monday, Cosatu said it would not vote for the ANC if government pushed ahead with its plan to retrench 30,000 civil servants. The federation’s top leadership was instructed by the CEC to seek a meeting with the ANC top six to give them an unambiguous message that “workers will not vote against their interests in the upcoming national elections”. Read this report by Eric Naki in full at The Citizen. See too, Cosatu threatens to leave ANC alliance over plans to retrench state workers, at SowetanLive Fawu, farmers and informal traders take fight over illicit cigarette trade to Treasury ANA reports that members of the Food and Allied Workers Union (Fawu) were joined by tobacco farmers and informal traders on Tuesday as they marched to the National Treasury offices in Pretoria’s CBD. They were protesting about the thriving inflow of illegal cigarettes into the South African market, suffocating the local business. Katishi Masemola, general secretary of Fawu, explained: “Our mandate is to protect the jobs of South African workers because they are the fuel of our economy. We know that the illicit trade of tobacco is a huge problem that continues to cripple the development of our economy. These criminals are getting away with a wide range of serious offences, including tax evasion, which is in turn eradicating jobs. Although these criminals are known – absolutely nothing is being done to bring them to book, which is unacceptable.” Fawu demanded that the government must immediately clamp down on the suppliers of the illicit tobacco. The union added that the local informal business sector, “which is the backbone of township economies and source of jobs for people in townships, is crumbling due to the infestation of the market with illicit cigarettes.” Read this report in full at The Citizen. Read too, Spaza shops‚ tuckshops and hawkers cry foul over new anti-smoking laws, at Timeslive
Young workers back Losi to take Cosatu’s reins at September national congress Sowetan reports that Cosatu’s second deputy president, Zingiswa Losi, seems to be getting a lot of support to succeed S’dumo Dlamini as the labour federation’s president. Cosatu is to hold its national congress at Gallagher Convention Centre in Midrand next month. The latest support for Losi comes from the Cosatu Young Workers Forum (YWF) and National Union of Mineworkers Youth Structure (NUM-YS). The two structures, which are made up of young unionists, will enjoy voting rights within their respective affiliates. YWF national coordinator Xolani Fakude said on Tuesday that young workers want Losi to lead Cosatu. NUM-YS national secretary Bonginkosi Mrasi said that Losi would assist in rebuilding Cosatu. Several Cosatu affiliates such as the National Education Health and Allied Workers’ Union (Nehawu), the Police and Prisons Civil Rights Union (Popcru) and the Democratic Nursing Organisation of SA (Denosa) are also believed to be backing Losi. Cosatu general secretary Bheki Ntshalintshali commented on Tuesday: “The gender is not an issue. We are colour-blind when it comes to gender. We will support anybody who is elected, irrespective of gender.” Read this report by Ngwako Modjadji in full on page 4 of Sowetan of 15 August 2018 New labour relations registrar intent on tackling backlogs, but has no budget to hire staff Financial Mail reports that SA’s new registrar for labour relations, Adv. Lehlohonolo Molefe, has been entrusted with restoring regulatory compliance among SA’s employee and employer organisations. Molefe was appointed as by labour minister Mildred Oliphant in May and says a "huge task" awaits him. Two months into the job, he has unearthed a backlog of cases dealing with the state of SA’s 193 trade unions, 153 employer organisations and 54 collective bargaining councils. He took up the role after months of paralysis in the labour registrar’s office due to disputes between his predecessor, Johan Crouse, and Oliphant. The position Molefe occupies has been vulnerable to political interference in the past, with the dispute between Crouse and Oliphant rooted in the minister’s instructions to the labour registrar on how matters should be handled. Crouse was in the midst of an investigation into the affairs of Cosatu-affiliated Ceppwawu when he was suspended. He was later reinstated by the labour court. Molefe, a long-time employee in the legal services unit at the labour department, is well aware of the challenges that come with the post. Yet, his office currently has no budget and relies on staff from the department’s collective bargaining division. So it is unclear how Molefe will be able to achieve his goals if he isn’t given the funds to hire more people. Read this report by Theto Mahlakoana in full at BusinessLive
MPs not impressed with Randjesfontein grooms’ living and working conditions BusinessLive reports that after visiting the North Rand Training Centre at the Randjesfontein Race Course in Midrand‚ Gauteng on Tuesday, Parliament’s labour portfolio committee said it was "not impressed" with the living conditions of horse grooms. Grooms went on strike at the race course in June‚ led by the EFF. The committee’s members interacted with management of Phumelela Gaming‚ one independent horse trainer‚ as well as horse grooms. "During an interaction with the horse grooms in their hostels‚ the committee heard about reports of long working hours‚ and failure to comply with the Unemployment Insurance Fund (UIF) legislation‚ allegedly by horse trainers subcontracted to Phumelela‚" the statement indicates. The committee also witnessed “appalling living conditions in the grooms’ hostels‚ where four to five men share one small room and cook on gas stoves located outside their rooms." Concern was noted about the absence of healthcare services on the Randjesfontein estate. The department of labour has been requested to conduct "thorough inspections in the entire horseracing industry to ensure compliance with the laws of the country". A short report is at BusinessLive
With North-West ‘offering a foretaste of NHI’, Solidarity to hold a summit on proposals on 21 August Trade union Solidarity said on Tuesday that experience in the North West province clearly showed that government was not capable of running health care services. This came after media reports indicated that the Mafikeng Provincial Hospital was only running due to the services of temporary staff, while two clinics in the province had had to close their doors as a result of security problems arising from nonpayment for three months of security service providers. Apparently at some hospitals, there are only three midwives to cope with 48 deliveries, while medicine shortages were said to be paralysing the province’s health service. According to Morné Malan, researcher at the Solidarity Research Institute, the shortcomings and failures of public health care in North-West were not limited to that province. He commented that it was inconceivable that government believed it could improve health care for all in SA by means of the proposed National Health Insurance (NHI) and said that “expanding government control over health care would simply mean that failures would happen at an even larger scale and would be more far-reaching.” Malan advised that on 21 August Solidarity would be holding a crisis summit on the proposed NHI involving leading medical and legal experts, as well as economists. Read Solidarity’s press statement at Solidarity News Other internet posting(s) in this news category
Cable theft disrupts Metrorail’s Joburg-Pretoria train service on Wednesday ANA reports that Metrorail’s train service between Pretoria and Johannesburg was disrupted on Wednesday morning due to missing overhead wires on both lines at Olifantsfontein. As a result, trains from Johannesburg were turning around at Kaalfontein station, while those from Pretoria were turning around at Irene, and there were no trains running between Kaalfontein and Olifantsfontein. “Arrangements for buses are being made to ferry commuters between the dead section. Commuters are therefore advised to make alternative transport arrangements between Olifantsfontein and Kaalfontein Stations whilst waiting for the arrival of buses,” Metrorail said. The rail company pleaded with commuters and employers to be patient as its technicians worked hard around the clock to replace the stolen wires. Read this report in full at The Citizen Other internet posting(s) in this news category
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