In our morning roundup, see summaries
of our selection of South African labour-
related stories that appeared
Thursday, 20 June 2019.
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Ramaphosa outlines early bailout relief for Eskom, two million jobs for youth over next 10 years BL Premium reports that in his State of the Nation Address (Sona) on Thursday evening, President Cyril Ramaphosa outlined an extensive and ambitious programme for the next five years that promised both expansive public spending as well as a commitment to prudent management of public finances. In the biggest announcement of the night, he said Eskom would receive a portion of the R230bn in support from government, which was promised at the time of the budget, sooner than anticipated so as to alleviate its financial crisis. He also promised more low cost housing, more police officers, an expansion of the national youth service and a presidency-led initiative to create two-million new jobs for young people over the next 10 years. He moreover reinforced a range of spending commitments made in the February budget. There was scant detail on how the Eskom bailout would work, except that it would now be front-loaded in the first few years. "This we must do because Eskom is too vital to our economy to be allowed to fail," Ramaphosa stated. The president said that government would soon announce a new CEO for Eskom as well as a chief restructuring officer. Ramaphosa put a large emphasis on improving the environment for doing business in SA, in an effort to increase investment, and announced a second investment conference in November. He stated that all the measures outlined would be "underpinned by our strong commitment to a macroeconomic and fiscal policy framework that will continue to boost confidence and investment". Read the full original of the report in the above regard by Carol Paton and Genevieve Quintal at BusinessLive (paywall access only). Read too, Cyril se superstad en droom van 2 miljoen werkgeleenthede, at Maroela Media President Ramaphosa pledges to ramp up youth employment programmes Fin24 reports that President Cyril Ramaphosa has announced that government will expand the scale of its foremost youth employment programmes in response to youth unemployment. Delivering his second State of The Nation Address on Thursday evening, Ramaphosa said the National Youth Service, which was introduced last year, would take on tens of thousands of young South Africans, as well as assisting young entrepreneurs working in sectors linked to new technologies. "We will expand the National Youth Service to take on 50,000 young people a year. Government will support tech-enabled platforms for self-employed youth in rural areas and townships. We will expand our programmes to enable young people to gain paid workplace experience through initiatives like the Youth Employment Service, and also facilitating work-based internships for graduates of technical and vocational programmes," Ramaphosa said. The president indicated that the Expanded Public Works Programme (EPWP) would continue to provide work opportunities to the most vulnerable young job seekers, and that subjects such as coding and data analytics would be introduced at a basic schooling level, to respond to the fourth industrial revolution. Read the full original of the report in the above regard at Fin24 Ramaphosa’s many Sona words speak of little insight, says Solidarity In reaction to President Ramaphosa’s State of the Nation Address (Sona) on Thursday evening, trade union Solidarity said that it was clear that the ANC’s inherent inability to successfully govern SA was epitomised in the rresident’s pipe dream of an African Utopia. According to Monica Mynhardt, a researcher at the Solidarity Research Institute (SRI), Ramaphosa sidestepped important issues by making empty promises. “The President did not come forward with any definite plans to turn ailing entities such as the South African Broadcasting Corporation (SABC), South African Airways (SAA) and Denel around; on the contrary, he did not even once refer to those state-owned entities.” While the president announced that an “absurd” bail-out of R230 billion would be given to Eskom over the next ten years, the union stated that a bail-out without real change and actual plans did not mean much. Moreover, a previous promise about unbundling Eskom “seems to have died a silent death as no mention was made of it in this State of the Nation address,” Mynhardt pointed out. Another perturbing issue for the union was that the government planned to have the National Health Insurance (NHI) approved by the sixth parliament despite justified opposition from all quarters. The same went for the land reform issue. One highlight for the union was the president’s assurance that the Reserve Bank would remain independent, although this had to be tempered in light of the “devastating ideologies in which the ANC is rooted”. Read Solidarity’s full press statement on the address at SA Labour News Other internet posting(s) in this news category
SOEs IN CRISIS Presidential Council will straighten out SOEs, Ramaphosa asserts Fin24 reports that the Presidential State-Owned Enterprise Council will work to create better coherence between government's ailing entities to fine-tune each one's mandate and sharpen efficiencies, President Cyril Ramaphosa said on Thursday evening. He was delivering his second State of The Nation Address (Sona) for the year. The list of embattled entities is long and it has often fallen on government to provide relief through funding. During his address, Ramaphosa said that, through the Presidential SOE Council, government intended to create alignment between all state-owned companies and to better define their respective mandates. "Through the Council, we will work with the leadership of SOEs to develop a legal and regulatory environment that promotes innovation and agility and enhances their competitiveness. We will build on the work we have already begun to address problems of poor governance, inefficiency and financial sustainability," said Ramaphosa. He added that government remained committed to building an ethical state in which there was no place for corruption, patronage, rent-seeking and plundering of public money. Read the full original of Khulekani Magubane’s report in the above regard at Fin24 NUM tells Ramaphosa it wants no job cuts at Eskom, no split and for the board to be fired Bloomberg reports that the president of the National Union of Mineworkers, Joseph Montisetse, said on Wednesday in an interview that the union was against any plan to split power utility Eskom into three units because it would result in job losses. He maintained that the company could return to profit by investing in coal mining, exporting the fuel and selling more electricity to SA’s neighbours. This was said prior to President Cyril Ramaphosa’s State of the Nation (Sona) address on Thursday in which he was expected to unveil new measures to help Eskom. In February, the president announced the plan to divide the company into generation, transmission and distribution units. He also vowed to avoid cutting jobs, despite Eskom having about 47,000 workers, a figure the World Bank has said was 66% too high, and debt of at least R440 billion. The NUM was prepared to hear what Ramaphosa had to say in his speech, but so far “we are not happy with what the president has promised’’ in terms of job security, Montisetse said. “We don’t believe the unbundling can be a cure for this disease,’’ he opined, adding that they wanted a total bailout for the utility and a new board in order to make the business profitable again. Montisetse also opined that the stations could be rebuilt in order to extend their lives. “We can’t agree for our members to be cut from work. We believe that we need a credible management to hire even more people,” he observed. Read the full original of Paul Burkhardt’s report in the above regard at Moneyweb NUM’s attitude to splitting up of Eskom is dangerous to the nation BizNews writes that the National Union of Mineworkers (NUM), which has 15,000 members at Eskom, has expressed opposition to President Cyril Ramaphosa’s plan to split the utility into three parts. The union has – probably correctly – decided that the split will form a cover for job losses and it wants no part of it. Unfortunately, the NUM’s attitude poses a threat to the wider SA economy. Experts agree that job losses are necessary at Eskom, which is significantly overstaffed and inefficient. It is said that the NUM’s desire to hold onto jobs at any cost, no matter what the broader economic costs, is a real danger to the government’s plans to turn things around in SA. The author remarks that unions should fight for their members’ interests, but they should also be realistic. Eskom could hold onto all its workers until the government runs out of money entirely and the whole thing collapses. But this will be the path to total job losses. Instead, NUM could accept that it must make some sacrifices to keep the utility alive and ensure that the country has a reliable supply of electricity. This is the path to broader job creation. The original of the above commentary by Felicity Duncan is at BizNews SAA accuses pilots’ union of opportunism for remarks about acting CEO BusinessLive reports that South African Airways (SAA) has lashed out at the SAA Pilots’ Association (Saapa) by saying its remarks against acting CEO Zuks Ramasia were opportunistic and disparaging. The association’s remarks could hurt the debt-ridden airline as the aviation industry was sensitive to negative sentiment, “especially around business continuity”, SAA spokesperson Tlali Tlali said. On Monday, Saapa, which represents pilots at the airline, threatened to go on strike over Ramasia’s appointment and its perceptions of poor governance at SAA. It charged that the carrier would not survive unless critical operational and technical deficiencies were immediately addressed by a competent management team. “SAA needs an interim CEO with the appropriate experience and financial acumen to successfully run a major airline. Unfortunately, Ms Ramasia is not that person,” Saapa said. Tlali said the comments were “professionally disparaging” against Ramasia. Saapa indicated it was scheduled to meet the board this week. The union’s sentiment was similar to that expressed by Numsa and the SA Cabin Crew Association, which both accused the airline’s board members of presiding over massive corruption at the carrier. Read the full original of Luyolo Mkentane’s report on the above story at BusinessLive. See too, SAA pilots find their voice: but why now? at BusinessLive Eskom veteran Bheki Nxumalo appointed to lead power generation business BusinessLive reports that Eskom has appointed Bheki Nxumalo, a long-time employee of the state-owned power utility, to head its critical power generation business. Nxumalo, a registered engineer, joined Eskom as a senior technician in 1996 and has more than 20 years’ experience in various positions in Eskom’s generation business, the utility said in a statement on Wednesday. He will take up the role of group executive of generation from 1 July. Severe operational issues at Eskom came to the fore earlier this year when, for the first time, the utility instituted stage 4 load-shedding, wreaking havoc on the SA economy and contributing to a 3.2% contraction in GDP growth in the first three months of 2019. Eskom said inadequate maintenance of its ageing fleet of coal-fired power stations was behind the frequent unplanned outages. The original of the above report by Lisa Steyn is at BusinessLive. Eskom’s press statement is at Polity Other internet posting(s) in this news category
MINING LABOUR Amcu fires the first shot in platinum wage negotiations BL Premium writes that the scene for tough wage talks in the platinum sector has been set now that the dominant Association of Mineworkers and Construction Union (Amcu) has demanded a minimum wage of R17,000, just as the troubled industry begins to find its feet again. Along with other provisions for housing, transport, provident funds, medical aids and more, the total cost to company demand per employee would hit R30,000. Platinum group metals (PGM) producers have been struggling to eke out a profit for years, but an unexpected surge in the palladium price have given them a leg-up this year, while the price of rhodium has risen by 300% since 2016. So, the resurgent PGM prices will make it tougher for producers to play hardball. Unlike the gold sector, wage negotiations for platinum are not centralised and take place at a company level. Most producers have had little to say ahead of wage talks, which will probably begin in earnest next month. But Sibanye-Stillwater, the world’s largest platinum producer, has been quick to say the demand was "impractical and unaffordable". There is also a concern that hardened attitudes between Amcu leader Joseph Mathunjwa and Sibanye-Stillwater CEO Neal Froneman during Amcu’s long strike at the company’s gold operations could colour negotiations. Nedbank analysts Leon Esterhuizen and Arnold van Graan commented thus: "It is most certainly not in labour’s best interest to undermine the current improvement in profitability … We don’t see a settlement above 10% and we see strike potential as very low." Read more of the original report by Lisa Steyn in the above regard at SA Labour News Other labour / community posting(s) relating to mining
Other general posting(s) relating to mining
INDUSTRIAL DEVELOPMENT / MANUFACTURING US steel and aluminium tariffs badly hurting South African manufacturers, says Solidarity Engineering News reports that trade union Solidarity indicated on Thursday that South African exporters of steel and aluminium products were under severe pressure after the United States (US) recently granted Canada and Mexico exemption from steel and aluminium tariffs. The US in May lifted the 25% tariff on steel and the 10% tariff on aluminium for Canada and Mexico. Solidarity deputy general secretary Marius Croucamp said this exemption has resulted in cheaper prices for Canadian and Mexican steel and aluminium, compared with the South African price for steel. “South African manufacturers and steel exporters, including Duferco, Cisco, Columbus Stainless, South32 and ArcelorMittal South Africa, find themselves in a dire situation, with exports to the US rapidly drying up. Factories have started retrenching employees and it is possible that factories may close down,” Croucamp said. He pointed out that the struggling South African steel industry was already burdened by higher electricity tariffs and the implementation of a carbon tax. Solidarity earlier this month requested Trade and Industry Minister Ebrahim Patel to set up a meeting with major role-players in the SA steel industry to discuss these issues. Read the original of the above report at Engineering News. See too, VSA se staal- en aluminiumtariewe begin SA vervaardigers byt, at Maroela Media. Read Solidarity’s press statement on this issue at Politicsweb Solidarity offers input into how Denel can resolve its financial crisis Engineering News reports that trade union Solidarity has submitted a memorandum containing possible solutions it believes will help defence group Denel overcome the challenges it faces. It was addressed to Denel CE Dr Danie du Toit and was compiled after Solidarity conducted a survey among its members at the group regarding the challenges the company faces, which include corruption, financial mismanagement and cash flow constraints. Based on the survey, the Solidarity Research Institute (SRI) identified five broad concerns pertinent to the group’s current challenges. According to the union’s deputy general secretary Johan Botha, the biggest concern revolved around the appointment, management and structuring of the firm’s human resources. The concern which ranked second-highest in the survey related to suppliers and procurement. “Members feel that the procurement process is driven by politics rather than by the quality of the products or services being obtained. Many of the products could have been sourced in-house or otherwise through private companies,” Botha related. Members also highlighted the level of red tape involved in processes currently in use in the organisation. “Solidarity firmly believes it has a role to play to achieve a turnaround at Denel and, ultimately, its growth,” Botha posited. Read the full original of the report in the above regard at Engineering News. See too, Solidariteit wil Denel met finansiële krisis help, at Maroela Media. Read Solidarity press statement on its memorandum at Politicsweb PRICES / TARIFFS Petrol price expected to drop substantially at month end BusinessLive reports that according to the Automobile Association (AA), retreating oil prices have painted a rosier picture for South African fuel users than has been the case for much of 2019. Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA predicted a decrease of 91c/litre in the petrol price, 70c in the diesel price, and 62c for illuminating paraffin in July. The association noted that there had been a remarkable drop in the price of oil since the end of May, with the commodity currently trading at about $61 a barrel. But, South Africans were not getting full value, “thanks to rand jitters in the wake of the ANC top leadership trading jibes over the future of the Reserve Bank." Nonetheless, AA expects the price drops to be substantial Read the full original of the above report at BusinessLive Other internet posting(s) in this news category
RETIREMENT FUNDS / RETIREMENT INVESTING Government considering breaking up PIC into autonomous business units, probe told BusinessLive reports that the commission of inquiry into impropriety at the Public Investment Corporation (PIC) heard on Wednesday that the government was considering breaking up the organisation into autonomous business units to help improve efficiency. Investment expert Muitheri Wahome said: “The PIC is in the process of reviewing its operating structure and internal discussions are underway to determine what operating model to adopt. Currently under consideration is a business unit structure.” Wahome briefed the commission on discussions at a PIC workshop which took place in May, which finance minister Tito Mboweni had attended and where it was discussed how to reform the outdated organisational structure of the state-owned asset manager. The PIC currently provides a full array of investment services to its 23 institutional public sector clients, which include the Government Employees Pension Fund (GEPF). According to Wahome, any major restructuring could be done according to asset class, namely listed equities, fixed income, private equity/impact investing, listed and unlisted property, and as a multimanager. Wahome indicated that the PIC had acknowledged it was short on capacity and skills in the unlisted arena and this limited “the corporation’s ability to compete for prime assets”. Read the full original of Warren Thompson’s report in the above regard at BusinessLive Other internet posting(s) in this news category
CORRUPTION / WORKPLACE CRIME Court drops charges against orthotist accused of defrauding Department of Labour’s Compensation Fund The Department of Employment and Labour (DEL) reported on Thursday that the Pretoria Magistrate’s Court had dropped charges against Ms Mapitse Tebogo Bopape, who had been accused of defrauding the Department of Labour’s Compensation Fund. The case had been dragging on since last year while the state was waiting for the finalisation of the docket and the decision of the Directorate of Public Prosecutions to prosecute. The stand-in prosecutor requested another postponement on the basis that the directorate had not yet made a decision regarding the matter. But the magistrate said it had been delayed for far too long and, after conducting an enquiry, she struck the matter off the roll. Bopape (33), an orthotist in private practice from Hammanskraal, was alleged to have defrauded the department’s Compensation Fund of R46,500-00. She had not yet pleaded. The Compensation Fund is a public entity under the administration of the Department of Labour. The fund’s mandate is to administer the Compensation for Occupational Injuries and Diseases Act. Read the full original of the department’s press statement on this matter at DEL News Other internet posting(s) in this news category
COMMUTING / TRANSPORT Government to spend R38bn on Metrorail, Minister Mbalula to seek 'proper policing' on trains Engineering News reports that the SA government will be spending about R38-billion over the next three years on the procurement of new trains for the Metrorail service, as well as on the modernisation of signalling systems, depots, perway and stations. New transport minister Fikile Mbalula indicated at the Africa Rail conference on Wednesday: “The expenditure will ensure that the current Metrorail system is modernised to deliver a safe, reliable and efficient rail service.” He said that 22 trains of a planned fleet of 600 new trains had already been delivered to Metrorail, with four of those produced in SA, at the Gibela plant, in Nigel. Mbalula said that Metrorail, operated by the Passenger Rail Agency of SA (Prasa), had already commissioned new signalling systems on selected corridors, as part of R10-billion programme aimed at improving efficiency and safety on the commuter rail system. Regarding safety on trains, Mbalula indicated: “We’ll ensure that there is proper policing on the trains and we’ll do that working hand in hand with the minister of police, because, in terms of the South African Constitution, policing resides with the minister of police. In this regard we’ll work with him in upgrading the policing on our trains.” Read the full original of the above report at Engineering News Other internet posting(s) in this news category
OTHER NEWS HEADLINES AND PRESS STATEMENTS
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