Today's Labour News

TOP STORY – NATIONAL HEALTH INSURANCE

NHI will negatively impact on SA’s healthcare systems, warns Solidarity

Engineering News reports that trade union Solidarity believes the power of medical services in SA will be negatively impacted if government decides to centralise the healthcare system through the National Health Insurance (NHI) Bill.  Speaking at a Healthcare Crisis Summit organised by Solidarity on Tuesday, CEO Dirk Hermann stressed that a decentralised approach with proper government structures in place was needed to sustain the NHI.  “We know by looking at State-owned entities (SOEs) in crisis such as South African Airways, Denel and Eskom that government does not have the capacity to manage large SOEs,” Hermann pointed out.  He noted that the NHI programme would be the largest SOE in government, and that implementation of the programme would cost R357-billion, the bulk of which would be carried by middle-class taxpayers.  He further noted that the country currently had an effective private medical system that needed to be supported by proper legislation and regulation to function even better.  “The more we empower the private sector and the more access we give ordinary South Africans to that sector, the more government can focus on an effective public system,” Hermann stated.  Also speaking at the summit, chairperson Flip Buys warned that state interference would lead to increased medical costs, poorer service and more ill people in SA.

Read this report in full at Engineering News

NHI will collapse healthcare, practitioners likely to leave, Solidarity warns

ANA reports that according to a research report released by Solidarity on Tuesday, health practitioners in SA are very sceptical about government’s proposed National Health Insurance (NHI) plan, with many considering emigrating if the ambitious project is implemented.  The results of the research project by the Solidarity Research Institute (SRI) “which determined the opinions and feelings of medical practitioners regarding the NHI”, was presented in Pretoria at the Solidarity Occupational Guild for Health Care Practitioner’s “crisis summit” on the proposed NHI.  According to Nicolien Welthagen, senior SRI researcher, this research was one of the first steps to reveal the real feelings and opinions of practitioners regarding the proposed NHI.  It found that practitioners felt that there had not been sufficient consultation with them on the government’s plans to implement the NHI.  Also, more than 80% of healthcare workers believed that health practitioners would leave SA if government steamed ahead with the roll-out of the NHI.  “The extent of this issue is emphasised by 81.7 percent of the respondents who indicated that they believe the NHI will destabilise the health sector,” said Welthagen.  According to Dirk Hermann, Solidarity COO, healthcare practitioners needed much support, which was the reason why the Guild for Health Care Practitioners had been founded.

Read this report in full at The Citizen. Read too, Survey finds healthcare workers are uninformed about NHI scheme, at Engineering News. Read Solidarity’s press statement and download the full research report at Solidarity News

OCCUPATIONAL HEALTH & SAFETY

KZN Sharks Board confirms body found at Richards Bay beach is missing employee

News24 reports that the KwaZulu-Natal Sharks Board has confirmed that a decomposed body found floating off a beach in Richards Bay on Saturday is that of their missing employee, Siyabonga Gabela.  A memorial service will be held on Thursday.  Gabela was one of three employees who drowned when their boat capsized during a shark net inspection at Richards Bay's Newark Beach on 8 August.  Boat skipper Richard Gumede, and another colleague Mandlakayise Gumede, were buried this past weekend.  Their colleagues Eric Buthelezi and Sqiniseko Ngobese survived the horrific incident.  The Department of Economic Development, Tourism and Environmental Affairs said the board had not had a fatal boat accident since it was formed more than 60 years ago.

Read this report by Mxolisi Mngadi in full at News24

East London airport evacuated as police close in on cop ‘killers’

ANA reports that police have arrested two people in connection with the murder of Sergeant Simphiwe Sahluko on Sunday in the Eastern Cape.  Police spokesman Brigadier Vishnu Naidoo said the two were arrested at East London airport after they returned a rented vehicle used as a getaway from the crime scene.  The airport was evacuated as police hunted the men.  ”Sahluko was apparently involved in an altercation with the suspects before they fatally shot him on Sunday.  The team worked around the clock and traced the suspects to East London Airport,” said Naidoo.  Sahluko, 42, was stationed at Beacon Bay police station and was off-duty at the time he was murdered.  Both suspects, aged 33, will appear in the East London Magistrate’s Court on Thursday.  National police commissioner General Khehla Sitole commended the investigating team.  The police will next month at the Union Buildings in Pretoria commemorate at least 29 police officers who have been killed while on duty.  Twenty-one of the officers were murdered in 2017.

Read this report in full at The Citizen

MINING LABOUR

NUM declares dispute with Minerals Council, Solidarity to continue with gold wage talks

Mining Weekly reports that the National Union of Mineworkers (NUM) on Tuesday declared a wage dispute with the Minerals Council SA (previously called the Chamber of Mines) in the gold mining wage negotiations.  This came after the MCSA presented a conditional revised wage offer, subject to trade unions removing their other ‘high cost’ demands from the table.  For the first year of a proposed three-year deal, the conditional offers by the four gold producers covered in the centralised talks ranged between 6.2% and 8.2% for so-called ‘category 4’ underground employees and between 4% and 5% for so-called ‘miners and artisans, and officials’.  The NUM’s dispute will be referred to the CCMA for conciliation and was one step away from legal, protected strike action, the union stated.  Trade union Solidarity, meanwhile, said that the conditional revised offer was “an insult to skilled employees”.  Welcoming the offers for ‘category 4 to 8’ employees, Solidarity general secretary Gideon du Plessis said:  “Although the offers are conditional, Solidarity rejects the offer in principle because of its discriminatory nature.  The artisans and more senior employees cannot accept that they are to receive smaller salary increases in order to subsidise other post levels’ increases.”  Solidarity said it would continue to negotiate with the MCSA.  Talks were expected to continue on Wednesday.

Read this report in full at Mining Weekly. Read the MCSA’s press statement at Gold Wage Negotiations. Read the NUM’s press statement Politicsweb. Read Solidarity’s press statement at SA Labour News

NUM members at Harmony’s Moab Khotsong mine threaten shutdown

SABC News reports that members of the National Union of Mineworkers (NUM) at the Moab Khotsong operations of Harmony Gold in Orkney, North West, have threatened to down tools if mine management does not heed the workers’ demands for better wages and working conditions.  During a march to mine premises on Tuesday, workers accused management of failing to prioritise their interests at the current wage negotiations under the auspices of the Minerals Council (previously called the Chamber of Mines).  The mineworkers called for transformation in their interest, saying that the time had come for the mine to put profits aside and invest in the safety and security of workers.  “We want a better life.  We have no hospital here.  Our wages are also never regular,” said one miner.  Another miner said:  “Since Harmony took over, zama zamas (illegal miners) came along and we get raped.  A lady was raped by 15 men.  We don’t even have transport to come to work because of Harmony.”  Management was given seven working days to respond to the demands of the workers.

Read this report by Itumeleng Kgajane in full at SABC News

COLLECTIVE BARGAINING / WAGE NEGOTIATIONS

Eskom in new wage battle with employees outside bargaining forum demanding same increases

BusinessLive reports that Eskom could be hit with yet another labour crisis, with even more employees demanding wage rises and bonus payments amid its financial difficulties.  Apparently, 6,700 line managers and senior engineers, also known as the Management, Professional and Specialists (MPS) in bands 14 to 16, have sent letters to the power utility pertaining to the demands.  This employee band is below mid-management.  Eskom said it has not received the demands.  The action comes as Eskom is still battling to conclude a wage deal with the majority of its employees three months into talks with trade unions representing lower-ranking workers.  The MPS employees want the same wage increases Eskom offered workers covered in the collective bargaining forum.  Eskom and unions have provisionally agreed on 7.5% wage increases for 2018, 7% for 2019 and for 2020, and R10,000 once-off payments and housing allowance hikes based on inflation.  The employees in the MPS band recently won a case at the CCMA, where they fought to be included in the bargaining forum structure.  Eskom has taken the matter on review at the Labour Court.

Read this report by Theto Mahlakoana in full at BusinessLive

PROTESTS / MARCHES / CAMPAIGNS

Employees at Baragwanath Hospital protest to get CEO to step down

SABC News reports that employees at Chris Hani Baragwanath Hospital in Soweto have been embarking on early morning and lunch hour protests since Monday.  They have been calling on the hospital CEO to step down over allegations of corruption, maladministration and nepotism.  Those involved include members affiliated to National Education Health & Allied Workers’ Union (Nehawu), the Democratic Nursing Organisation of SA (Denosa), the Health & Other Services Personnel Trade Union of SA (Hospersa) and the Public Servants Association (PSA).  “We want to send a message to the department and say, you cannot investigate a person who is within the institution.  The last time we engaged the department they said to us they cannot deal with the CEO anyhow.  There’s a senior management handbook and they have to observe those processes.  We agree but he cannot report on duty while you are conducting the investigation,” said spokesperson Yandiswa Zongula.

This short report by SABC News

PRICES / TARIFFS

Consumer inflation quickens to 5.1% in July

Fin24 reports that annual consumer price inflation increased to 5.1% in July, up from 4.6% in June, Statistics SA announced on Wednesday.  This was the highest rate since September 2017.  On average, prices increased by 0.8% between June 2018 and July 2018.  Jason Muscat, FNB senior economic analyst, said the July inflation was slightly ahead of the bank's expectation of 5% and commented:  "This is the first time the index has breached the 5% mark since September 2017, and while it remains within the SA Reserve Bank's target band, it is beginning to drift from the 4.5% midpoint the central bank would like to see the rate anchored at."  Muscat further pointed out that rising transport costs were again the biggest driver of the jump.  The other driver of the rise in the headline number was from the housing and utilities component.  Inflation amongst most other items was relatively contained.

Read this report in full at Fin24

REMUNERATION / SALARY ADMINISTRATION

Cash-strapped SABC prioritising payment of salaries and freelancers

BusinessLive reports that the SA Broadcasting Corporation’s (SABC’s) financial situation is becoming more dire by the day.  The SABC board told the National Assembly’s communications committee on Tuesday that it was unable to meet some of the corporation’s monthly financial obligations.  As at 15 August‚ the public broadcaster owed its creditors R694m with further accruals of R475m — but with only R26m anticipated to be in the bank by the end of the month.  Board chair Bongumusa Makhathini said it was prioritising salaries and paying freelancers, but struggling to meet a lot of the monthly financial obligations.  Newly appointed group CEO Madoda Mxakwe said the broadcaster needed an intervention and had been "engaging with the Treasury" to ensure it got the funding.  "Indeed, if you look at our business model and financial model, we are able to generate revenue, but because of all the historical issues we face we are not able to operate a proper business as such‚" said Mxakwe.

Read this report by Andisiwe Makinana in full at BusinessLive. Read too, SABC too broke to broadcast Bafana matches but has money for EPL, at Timeslive

NATIONAL MINIMUM WAGE / LIVING WAGE

National Minimum Wage Bill clears parliamentary passage and goes now to Ramaphosa

ANA reports that the National Minimum Wage Bill was approved by the National Council of Provinces (NCOP) on Tuesday and will now go to President Cyril Ramaphosa to be signed into law.  The adoption of the bill, along with the enabling Basic Conditions of Employment Amendment Bill, was welcomed by labour federation Cosatu as a step that would see the incomes of 6.4 million South Africans increase.  "This will be a major cash injection into workers’ pockets," Cosatu said and went on to thank Ramaphosa for his "unflinching support" for the measure that will introduce a minimum wage of R20 an hour.  The legislation also provides for the establishment of a National Minimum Wage Commission, which will review the national minimum wage level within a year and a half of it taking effect.  Employers who fail to comply with the wage will be fined unless they applied for and qualified for exemptions.

Read this report in full at IOL News

RETIREMENT AND OTHER EMPLOYEE FUNDS

Cosatu pushes for parliament to process and adopt PIC amendment law

Bloomberg reports that labour federation Cosatu is pushing Parliament to adopt proposed changes to laws regulating the Public Investment Corporation (PIC), which oversees state workers’ pension investments, to make it more accountable and give unions representation on its board.  Parliament’s finance committee is processing the PIC Amendment Bill, but Cosatu fears that the state’s decision to appoint a commission to investigate the fund manager’s governance and operating model could derail its adoption.  The commission will also consider possible changes to the PIC’s founding legislation, memorandum of incorporation and investment decision-making framework.  According to Matthew Parks, Cosatu’s parliamentary liaison officer, if the new law is not passed by the time the current parliament adjourns before the 2019 elections, it could take several more years for the new legislature to process it.  Cosatu wants unions to be able to select their own representatives onto the PIC board and for the fund manager to be given a “developmental investment mandate”.  The PIC oversees about R1.93 trillion in assets.

Read this report by Mike Cohen in full at Moneyweb

DISCIPLINARY ACTION / DISMISSALS / SUSPENSIONS

Msimanga wants Tshwane city manager suspended pending investigation

Mail & Guardian reports that City of Tshwane mayor Solly Msimanga will recommend to council that city manager Moeketsi Mosola be suspended following allegations of tender irregularities.  Mosola has been implicated recently in the awarding of an alleged irregular tender to engineering consultants GladAfrica, worth a reported R12-billion.  Mosola denied the allegations in a statement last week, saying all processes had been above board and in line with the Municipal Finance Management Act.  Msimanga’s office on Tuesday confirmed that, having requested more information from Mosola last week, the mayor would now recommend to council that a full probe should take place into Mosola and senior officials, and that Mosola be suspended for the duration of the investigation.  He would, however, be afforded an opportunity to provide council with reasons why he should not be suspended.  The under fire city manager on Sunday claimed on Facebook that “a small group of white people” were targeting him following the firing of former chief of staff Marietha Aucamp.  He also claimed that the small group had an issue with GladAfrica being awarded the tender over another Afrikaans one.

Read this report by Paul Herman in full at Mail & Guardian. Read too, Msimanga to recommend Tshwane city manager be suspended, at News24

Transnet CEO Siyabonga Gama given extension to argue against suspension

BusinessLive reports that Transnet CEO Siyabonga Gama and two other top executives have been given an extension until next Tuesday to provide reasons to the board as to why they should not be suspended.  The new board headed by Popo Molefe has been in place for 11 weeks.  Among the first things the board did was to issue Gama and two other executives, chief financial officer Thamsanqa Jiyane and supply chain manager Lindiwe Mdletshe, with letters warning them of their pending suspensions.  The three are implicated in a raft of reports on mismanagement and corruption at Transnet.  Molefe said the executives had asked for extra time and the board had agreed.  Gama began a presentation to MPs on Transnet’s internal corruption probe on Wednesday, but was stopped when ANC and DA portfolio committee members objected.

Read this report by Carol Paton in full at BusinessLive