In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Wednesday, 26 June 2019.
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Eskom concerned about employee safety after intimidation and assaults BusinessLive reports that Eskom has expressed concern about incidents in which its offices were blockaded and employees were intimidated and assaulted. In some instances they were held hostage by community members. The power utility reported that there were violent protests at its offices in Braamfischer and Klipsruit in Soweto, Ivory Park, Orange Farm and Winterveldt last week. Vandalisation of Eskom infrastructure was also a problem. Eskom's operations and maintenance manager Motlhabane Ramashi said Eskom employees were frequently harassed and intimidated while driving or attending to problems. He indicated that as a result of these incidents, Eskom was not in a position to continuously replace mini-stations and pole-mounted transformers in areas where residents were not paying for electricity and had bypassed their meters and had illegally connected themselves to the network. Ramashi added that the extreme measure of withdrawing services in those areas was temporarily implemented to protect employees until the areas were declared safe for operations. Read the full original of Ernest Mabuza’s report on this story at BusinessLive Other internet posting(s) in this news category
Numsa wants Lanxess chrome miner audited amid claims of financial irregularities BusinessLive reports that the National Union of Metalworkers of SA (Numsa) wants mineral resources minister Gwede Mantashe to conduct a forensic audit of Lanxess’s chrome mine and possibly revoke its licence, following allegations of rampant corruption at the mine. Numsa claims that the company unilaterally changed the rules of the employee share ownership scheme, which was valued at about R70m in 2017. Lanxess has also been in the news lately with Numsa accusing the mine’s management of rampant racism and of defending a mine captain alleged to have sexually assaulted a female subordinate. This has prompted union members to stage an underground sit-in since last week. The controversial ownership scheme was established in 2007 and it was envisaged that after it matured in 10 years, workers would receive their pro rata share in line with their years of services at the mine. Numsa general secretary Irvin Jim said workers were informed in 2017 that the mine’s board formed part of the 26% BEE partnership shareholding, which included workers’ ownership. “They … implemented these changes and as such, workers were only paid out R10,000 … [this] was hush money to silence our members so they do not revolt or ask questions,” Jim claimed. He called on Mantashe’s department to act, “even if it means [revoking] the licence of this mine”. The department said it was concerned about the safety of the mineworkers who were underground and “hence our immediate focus and priority on this matter is to ensure that all employees come up from underground safely.” Read the full original of Luyolo Mkentane’s report in the above regard at BusinessLive. Read too, Lanxess mine boss followed me into mine for sex, at SowetanLive Mineworkers' health at risk in Lanxess chrome mine strike, two more taken to hospital ANA reports that the health of some of the hundreds of mine workers who were staging a sit-in underground at the Lanxess chrome mine outside Rustenburg was deteriorating, a worker indicated on Wednesday. He was speaking via a two-way radio from underground to National Union of Metalworkers of SA (Numsa) shop steward, Kgaratji Tselana. "It's very bad ... not nice ... people are suffocating from the fumes we are inhaling," the worker was heard saying. Tselana said the striking workers had no food and they were surviving only on water. The number of workers who have come to the surface for medical attention now stands at 12. At least 10 of them were brought to the surface earlier in the week. According to Tselana, the number of workers involved in the underground strike stood at 245. Numsa members began their underground sit-in on 19 June, demanding recognition of their union, the reinstatement of dismissed workers and the suspension of a mine captain who has been accused of sexual harassment. Ronny Lennox, a Numsa representative, said the main concern at the moment was to get food to the workers underground. "Our members have been on strike since last week Wednesday, and management does not allow food to go underground which is the biggest thing," complained Lennox. However, the mine said Numsa had worsened the situation for the striking workers, because some of them were being held against their will underground. Read the full original of the report on this story at Mining Weekly Khulubuse Zuma ‘has only just sought legal counsel’ over Pamodzi liquidation, court told BL Premium reports that Khulubuse Zuma, who has been provisionally sequestrated with claims that he owes R1.4bn to creditors of the Pamodzi mining group, has apparently only now consulted a lawyer in the matter. He chose to speak via an affidavit signed by his recently appointed attorney, Mike Pedersen, which came before Durban high court judge Mokgere Masipa this week. The nephew of former president Jacob Zuma advised he had an agreement with the liquidators that he would pay them R23m, that R10m had already been paid, and he was confident he could pay the balance before the end of 2019. This was the first time Zuma had submitted any response to the court since the provisional order was granted earlier in 2019. Pamodzi’s mines were placed in liquidation in 2009. Two of them — Orkney and Grootvlei — were “bought” by Aurora Empowerment Systems, of which Zuma was one of five directors. The company took control of the mines and “stripped” them of their assets and gold produce without paying anything for them. Aurora was liquidated in October 2011. Zuma and the other directors were held personally liable for the debts of the company. While advocate Clayton Edy, for the liquidators, pushed for a final sequestration order this week, the judge gave Zuma until August to file a fuller opposing affidavit. Read the full original of Tania Broughton’s report on this story at BusinessLive (paywall access only) Other general posting(s) relating to mining
Public administration head in place by next April, says presidency BusinessLive reports that a head of public administration would be appointed by April next year, minister in the presidency Jackson Mthembu said on Tuesday in response to President Cyril Ramaphosa’s State of the Nation Address (Sona) last week. Mthembu told MPs that a capable state required effective co-ordinated institutions with skilled public servants, who were committed to the public good and capable of delivering consistently high-quality services, while prioritising the nation’s developmental objectives. A capable, ethical and developmental state was one of the seven priorities Ramaphosa set during Sona. “We will ensure the appointment of the head of public administration as espoused in the national development plan (NDP) 2030, by April 2020 to spearhead the professionalisation of the public service and move to make appointments of heads of department more permanent to promote stability,” Mthembu advised. The NDP, which Ramaphosa referred to prominently last week, foresees the creation of an administrative head of the public services with the responsibility of managing the career progression of heads of department. Read the full original of Claudi Mailovich’s report in the above regard at BusinessLive Jobs uproar in Tshwane over appointment of two ‘unqualified directors’ The Citizen reports that Tshwane executive mayor Steven Mokgalapa has been accused of appointing two unqualified directors in senior, highly paid positions. According to an internal memo sent to the metro’s information technology department, the directors were each appointed as youth development directors for the metro on 10 June. They will apparently each earn almost R1 million per annum, but barely meet the requirements for the position, which was never advertised. As youth development directors, the two, aged 27 and 24, will responsible for advising the mayoral committee on issues of youth development, but sources claimed they had no experience in dispatching such advice. “What we do know is that both are former members of his [Mokgalapa’s] constituency management from Soshanguve and Winterveld. One is a second-year student of agriculture at the Tshwane University of Technology [TUT],” a source said. Mokgalapa on Tuesday confirmed the appointments, but denied there was anything untoward about them. This was the latest jobs uproar to hit the metro. Last year Stefan de Villiers, a fitness trainer and body-building champion, was appointed executive head in the private office of then mayor Solly Msimanga, even though he did not qualify. Last year, Msimanga’s former chief of staff Marietha Aucamp, resigned under a cloud over not meeting the basic qualifications for the job. Read the full original of Sipho Mabena’s report on this story at The Citizen Other internet posting(s) in this news category
Union threatens strikes as municipalities, SOEs and provinces battle to pay salaries News24Wire reports that municipal staff and officials at State-owned entities (SOEs) are suffering as a seemingly countrywide delay in paying salaries has hit home. On Tuesday, the news broke that state-owned arms manufacturer Denel would not be able to pay full salaries to its more than 3,000 staff this month. During his State of the Nation speech in parliament later on Tuesday, Public Enterprises Minister Pravin Gordhan announced that a lender had been found and full salaries would be paid. But Denel is not the only government entity struggling to pay salaries this month. Letters and memorandums from various Free State municipalities and the provincial treasury highlighted financial constraints and delayed payments. Municipalities elsewhere in the country with salary payment difficulties include the North West District Municipality of Dr Ruth S Momati and the Amahlathi Local Municipality in the Eastern Cape. On Wednesday, the SA Municipal Workers' Union (Samwu) said it was "angered and agitated by the continuous failure by municipalities to pay workers their salaries in full and on time". According to the union, more than 30 municipalities had indicated that they would not be able to pay full salaries or at all. The union said it had met with newly appointed Minister of Cooperative Governance and Traditional Affairs (Cogta), Nkosazana Dlamini-Zuma, and her deputy, Parks Tau, and that the issue of non-payment of salaries had been highlighted. Read the full original of the report in the above regard at Engineering News
Full Denel salaries for June will now be paid, Pravin Gordhan says BusinessLive reports that public enterprises minister Pravin Gordhan announced on Tuesday that Denel’s 3,500 employees would receive their full salaries for June. Earlier on Tuesday, it emerged that Denel could only pay 85% of salaries for June due to cash-flow problems. On Tuesday evening, however, Gordhan said during a debate on the state of the nation address that a lender had come to the assistance of Denel “and full salaries will now be paid”. Gordhan’s spokesman indicated that the terms of the loan, which was granted by a commercial bank, were confidential. Denel, one of several state-owned enterprises (SOEs) mired in allegations of corruption and state capture, has found itself in a deep financial crisis, needing a government guarantee to enable it to pay salaries and suppliers. Other SOEs facing major financial problems include Eskom, SAA and the SABC. Denel recorded a loss of nearly R2bn in the past financial year. Cosatu spokesperson Sizwe Pamla said Denel’s challenges represented the continued and “alarming meltdown of the SOEs”. Read the full original of Claudi Mailovich’s report in the above regard at BusinessLive Public speculation that Eskom won’t be unbundled is wrong, says Pravin Gordhan BusinessLive reports that Public Enterprises minister Pravin Gordhan says that, contrary to public speculation, the unbundling of Eskom is on track. Opposition political parties last week claimed the ANC had been cowed into silence and inaction by its alliance partners, Cosatu and the SA Communist Party, on the issue of unbundling Eskom and this was why President Cyril Ramaphosa did not mention unbundling in his State of the Nation Address (Sona) last week. Gordhan indicated the following in the Sona debate on Tuesday: “Eskom has begun to develop a road map to implement the proposals in the February 2019 state of the nation address: to separate its generation, transmission and distribution functions into three separate business entities, wholly owned by the state.” The government wants to split the embattled power utility into three separate units: generation, transmission and distribution. Trade unions have argued that the proposed split will not solve Eskom’s governance and debt problems, and that it will lead to job losses. Those in favour of the unbundling argue that it will create a more efficient system. “There is no deviation from this strategic path [splitting Eskom] — not in cabinet or in government — contrary to persistent public speculation,” Gordhan said in his speech. Read the full original of Bekezela Phakathi’s report in the above regard at BusinessLive Other internet posting(s) in this news category
MultiChoice pushes ahead with retrenchments of up to 2,194 employees BusinessLIve reports that pay-TV operator MultiChoice is pushing ahead with a retrenchment process that could result in up to 2,194 employees losing their jobs because of the company’s plans to restructure its customer service model. “MultiChoice SA confirms that it is has commenced with the consultation process announced last week as part of the video entertainment company’s realignment of its customer care [call centre] and walk-in centres,” the company indicated on Tuesday. This came after reports earlier in the week that the retrenchment process had been put on hold to allow for mediation with stakeholders. The DStv owner was said to have apologised for “unduly” starting the retrenchment process. But, the first consultation meeting, which will be facilitated by an independent commissioner from the Commission for Conciliation, Mediation and Arbitration (CCMA), will go ahead as planned. Read the full original of Mudiwa Gavaza’s report in the above regard at BusinessLive Retrenchments at Parmalat could leave hundreds of workers jobless SowetanLive reports that Parmalat has embarked on a restructuring process that could leave hundreds of its workers in the distribution section of the company jobless. In January the company announced a process to change its distribution model and implementation began in the middle of May. According to the company, the new model involved partially outsourcing components of its logistics distribution network to an external provider. Distribution services in Polokwane, Nelspruit, Bloemfontein, Upington and George have already been outsourced to an external service provider, while those in Centurion, Cape Town, Durban, Port Elizabeth and East London outsourced to the provider will return to Parmalat. "To minimise business risk, Parmalat SA has opted to, for now, return all the distribution services from distribution centre's back to Parmalat, and to continue with the outsourcing of the rest of its distribution network in accordance with the new operating model that has already been implemented," the company indicated. It did not answer questions on the number of workers who were likely to lose their jobs due to the implementation of the new distribution model. The dairy products producer joins a long list of companies in various sectors that have announced restructuring involving job cuts, including MultiChoice, Standard Bank, the Absa Group, Tongaat Hulett and Lonmin. Read the full original of Penwell Dlamini’s report on this story at SowetanLive
NHI Bill to be tabled in parliament soon, says health minister BusinessLive reports that health minister Zweli Mkhize said on Tuesday that the government would ensure that the National Health Insurance (NHI) bill was tabled in parliament soon. The proposed legislation will have to be considered by both the National Assembly and the National Council of Provinces, and go through public consultation, before it can be implemented. It will have far-reaching health reforms aimed at achieving the government’s ambition of providing universal health coverage. Its main aim will be to launch a NHI Fund that will purchase health services on behalf of patients from public and private sector providers, which will be free at the point of care. A key aspect of the bill will be the future role it envisages for medical schemes, which currently provide coverage to about 8.9-million people. Earlier this year, the Hospital Association of SA (Hasa), which represents the private hospital sector, warned that NHI could lead to the loss of up to 132,000 jobs. Various stakeholders have warned that the roll-out of the NHI will not succeed if the poor management of public healthcare facilities persists, and the shortage of doctors and other health professionals is not addressed. Read the full original of Bekezela Phakathi’s informative report on this story at BusinessLive
PIC set to take disciplinary action against staff over R4bn Ayo deal BL Premium reports the Public Investment Corporation (PIC) is poised to take disciplinary action against 11 staff members for their part in the decision to invest more than R4bn in Ayo Technologies. The PIC manages more than R2-trillion in government employees’ pension money and other government funds. The recommendation, in an internal PIC report, comes as the fallout from the organisation’s decision to take part in Ayo’s initial public listing in December 2017 at an inflated valuation, continues to bedevil the fund manager. The PIC bought a 29% stake at R43 a share, implying a valuation of R14.8bn, but a few months before, financial statements showed that Ayo had total assets of R292m and a book value of R67m. Since then, the share has traded at far below the original valuation. Several staff testified at the Mpati commission of inquiry that the investment had the support of former PIC CEO Dan Matjila. In addition, 11 other staff members, including suspended CFO Matshepo Moré, have been accused of cutting corners and diverting from due process to make sure the deal happened. The staff members who could face disciplinary action could receive sanctions from dismissal to counselling. Not all of those named in the report have had the opportunity to reply to the allegations. Read the full original of the report by Carol Paton and Warren Thompson on the above at BusinessLive (paywall access only). Read too, Suspended PIC boss defends her role in R4.3bn AYO deal, at The Star
Fourth Golden Arrow bus torched this month in Cape Town EWN reports that on Tuesday night, another Golden Arrow bus was set alight on the N2 highway in Cape Town. The bus, a fourth in June alone, was destroyed during demonstrations which caused the closure of a number of roads in the area. Barely 48-hours after a Golden Arrow Bus was torched during purported service delivery protests in Philippi earlier this week, another of the company's coaches was attacked on the N2 highway. That time, protesters set fire to a provincial traffic car too. In a separate incident, demonstrator burnt tyres at the corner of Govan Mbeki Road and Symphony Way in Philippi. Two weeks ago, a Golden Arrow Bus, a City of Cape Town vehicle and a car belonging to a private security company were set alight. Read the original of this report by Kevin Brandt at EWN
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