In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Thursday, 27 June 2019.
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LAC overturns ruling that workers were unfairly dismissed for carrying weapons on picket line BL Premium reports that a recent case at the Labour Appeal Court (LAC) involving PailPrint dealt with the issue of prevention of strike violence. The company has a clear disciplinary code that makes the "brandishing or wielding of dangerous weapons" a dismissible offence. In 2014, when a strike was about to begin, PailPrint posted a "picketing policy" on its notice boards and gates. Numsa had signed the policy document, which said that "no weapons of any kind are to be carried or wielded by the picketers". When the strike began, five workers on the picket line appeared to be in breach of the policy in that three carried just sticks, one carried a length of PVC piping, and another carried a sjambok as well as a stick. Among those in the crowd, someone had a golf club and another an axe. Five employees were dismissed following hearings for having "brandished or wielded" dangerous weapons during the strike. At the CCMA hearing the arbitrator found the dismissed workers had not been shown to have "brandished or wielded weapons". The employees’ dismissal was declared substantively unfair, and they were reinstated with a final written warning. But at the LAC, acting appeal court judge Kate Savage noted that the employees were aware of the picketing rule that barred them from carrying or wielding weapons and there was also no dispute that some had carried weapons in the form of sticks, etc. Likewise, she said there was no dispute that the rule was both valid and reasonable, and that its purpose was clear — especially given evidence of violent attacks on other employees during the strike. The arbitrator should have considered the purpose of the rule and the harm it sought to avoid, she said. She added that the constitutionally protected right to strike did not include the right to carry dangerous weapons that exposed others to a real risk of injury, and that also threatened and intimidated. Finding the dismissals "substantively fair", Savage awarded costs against the union. Read the full original of Carmel Rickard’s report on the LAC ruling at BusinessLive (paywall access only)
Auditor-general to hold mayors, municipal managers to account for billions wasted The Star reports that Auditor-General Kimi Makwetu has painted a grim picture of financial mismanagement in the country’s 257 municipalities, saying that accountability continued to deteriorate while irregular expenditure still remained high. On Wednesday, Makwetu vowed to hold mayors and municipal managers, including those in the big metros, accountable for any financial losses incurred by the municipalities in their tenure. He issued this stern warning when delivering the consolidated general report on the local government audit outcomes of 257 municipalities, and 21 municipal entities. None of the big metros escaped Makwetu’s wrath. He also lamented the growing number of regressions of various municipalities, particularly in the Western Cape and KwaZulu-Natal, although wasteful expenditure was lowered to R25 billion from the R27bn reported in the previous financial year. Makwetu remarked: “Many of the challenges across local government are vast and require attention and long-term solutions. Equally, there are basic lapses that are sometimes overlooked which can be fixed easily and quickly by addressing the building blocks of a sound system of internal control.” He added: “We are going to identify the material irregularities and act on them. Accounting officers such as municipal managers will be summoned before a special committee.” Read the full original of Baldwin Ndaba’s The Star report at Security.co.za Auditor-general reports that only 18 municipalities got clean audits in 2017/2018 BusinessLIve reports that only 18 municipalities managed to obtain clean audits for the 2017/2018 financial year, according to auditor-general Kimi Makwetu. This was a regression from the 33 municipalities that received clean audits in the previous year. Makwetu indicated on Wednesday at the release of the municipal audit results that the outcomes of 63 municipalities of those audited for the 2017/2018 financial year had regressed, while only 22 had improved. He said credible financial statements and performance reports were crucial to enable accountability and transparency in government, but that most municipalities continued to fail in such areas. There was material noncompliance with key legislation at 92% of municipalities, which was an increase on 85% in the previous financial year. While irregular expenditure remained high, it was down to R25.9bn in 2017/2018, in comparison to the R29.7bn in 2016/2017. Makwetu observed that there was a lack of consequences for transgressions and irregularities, which included a failure to investigate findings made, as well as take action on those findings. He also raised his concern about the increasingly hostile environment the auditor-general's auditing teams faced and emphasised that that the accountability failures in local government had had a negative effect on the lives of citizens. Read the full original of Claudi Mailovich’s report in the above regard at BusinessLive Samwu warns municipalities to pay workers immediately or face a strike The Star reports that the SA Municipal Workers’ Union (Samwu) is up in arms after several municipalities across the country failed to pay workers their salaries. The union warned on Wednesday that it would go on strike unless the 30 municipalities concerned immediately paid their workers. Apparently, the cash-strapped municipalities which had failed to pay workers were in Limpopo, the Eastern Cape, Free State, KwaZulu-Natal, Mpumalanga and the Northern Cape. The non-payment of workers comes after several municipalities in the North West and KZN were placed under administration. “Samwu therefore demands the immediate payment of all salaries of municipal workers that have not been paid yet. When workers go on strike, municipalities apply the no-work, no-pay principle. As a result, workers are determined to apply the no-pay, no-work principle until such time that their salaries reflect on their bank accounts. We further demand these municipalities compensate workers for any charges and penalties incurred as a result of the late payment,” Samwu said in a statement. In his reply in Parliament on Wednesday to the debate of his State of the Nation Address, President Cyril Ramaphosa said he was concerned about the state of affairs at some municipalities. He indicated that the government would be assisting 57 municipalities in distress. This pledge was confirmed by Co-operative Governance and Traditional Affairs (Cogta) Minister Nkosazana Dlamini Zuma. Read the full original of Siyabonga Mkhwanazi’s report on the above story at Independent News. Read Samwu’s press statement at Samwu News Other internet posting(s) in this news category
Treasury lays out timeline for Eskom restructuring Bloomberg reports that a timeline has been set out for the restructuring of Eskom Holdings, with the government having apparently pledged that creditors of the state-owned electricity company would not suffer losses. Treasury director-general Dondo Mogajane reportedly set out the steps in a closed meeting with investors in London on Tuesday. According to a fund manager present, Mogajane indicated as follows: The government bailout announced by President Cyril Ramaphosa last week would enable Eskom to function as a going concern for two years; an appropriation bill for the bailout would be approved by the end of July; a chief restructuring officer and team would be announced in mid-July; the chief restructuring officer would produce a plan to deal with Eskom’s debt within 18 months; there would be a government guarantee that investors won’t suffer losses; and Eskom would be unbundled in two years, which would close some of the cash-flow gap. After that, the government would decide whether a further bailout was needed. Read the full original of Selcuk Gokoluk report in the above regard at BusinessLive Other internet posting(s) in this news category
Phones and ambulance keys taken as gunmen rob paramedics in Dobsonville The Star reports that City of Johannesburg’s Emergency Management Services (EMS) paramedics were robbed at gunpoint while busy assisting a patient in the early hours of Thursday. According to EMS spokesperson Robert Mulaudzi, the ambulance crew based at Dobsonville Fire Station was attending to a patient when they were accosted by two men who held them at gunpoint and robbed them of their belongings. The robbers fled the scene with the ambulance keys. Mulaudzi advised that the ambulance crew were not harmed and that they, together with the patient, were picked up by a motorist and taken to the nearest safe place. In a separate incident, two paramedics were held up and robbed of their valuables by three suspects while loading a patient into their ambulance on Wednesday night in Phoenix, KwaZulu-Natal. About a week ago, two paramedics were shot and robbed in Amatikwe, north of Durban, while responding to a fake emergency call. On 2 January, hijackers attacked two paramedics at a filling station in Lenasia. During the attack the hijackers managed to get away in the paramedics vehicle, but no one sustained injuries. On 31 December in Alexandra, fire fighters monitoring New Year’s festivities were attacked by hijackers. Read the full original of Lerato Selepe’s report in the above regard at The Star Other internet posting(s) in this news category
Mineral resources department requests CCMA to help end underground sit-in at LanXess mine SowetanLive reports that the Department of Mineral Resources (DMR) has requested assistance from the Commission for Conciliation, Mediation and Arbitration (CCMA) in an attempt to resolve a sit-in by about 300 LanXess chrome miners. The miners have been staging an underground protest since Wednesday last week over allegations of sexual harassment and sex for jobs. DMR spokesperson Ayanda Shezi said CCMA commissioners had made an offer to mediate. He went on to indicate: "Among the interventions, the department convened the CEO, the National Union of Metalworkers of SA (Numsa) and National Union of Mineworkers to resolve the impasse. Anything that endangers the lives and health of mineworkers is unacceptable to the department. Our immediate focus and priority on this matter is to ensure that all employees come up from underground safely." Numsa spokesperson Phakamile Hlubi-Majola said the union wanted the dispute resolved with speed because the longer the workers remained underground the more dangerous it became for them. Bheki Buthelezi, another Numsa leader, reported that management had agreed for food to be delivered to the striking workers. Read the original of Yoliswa Sobuwa’s above report at SowetanLive Other labour / community posting(s) relating to mining
Other general posting(s) relating to mining
Nehawu throws its weight behind calls for nationalisation of SA Reserve Bank BusinessLive reports that the National Education, Health and Allied Workers’ Union (Nehawu), Cosatu’s biggest affiliate, has thrown its weight behind calls to nationalise the SA Reserve Bank (SARB. On Wednesday, the union lashed out at ANC leaders engaging in “embarrassing public spats” about implementation of the party’s resolutions. Nehawu president Mzwandile Makwayiba also characterised finance minister Tito Mboweni and the ANC’s head of economic policy Enoch Godongwana as “enemies of the working class” for their stance on the bank. Makwayiba was giving the opening address at Nehawu national policy conference. He told delegates: “This conference must tell us to find a way to call to order the leadership of our movement. What is wrong about changing the mandate of the Reserve Bank to create jobs for our people? If the ANC resolution says we must nationalise the Reserve Bank, then let that be.” President Cyril Ramaphosa was recently forced to refute ANC secretary-general Ace Magashule’s comments that the party lekgotla had decided that the bank’s mandate be expanded beyond price stability and include growth and employment. On Wednesday, Makwayiba called for the bank to be nationalised and for all the commanding heights of the economy to fall under state control so as to address SA’s socio-economic problems. Tripartite alliance leaders from the ANC, SACP and Cosatu are expected to address the Nehawu conference. Read the full original of Luyolo Mkentane’s report in the above regard at BusinessLive
Large fuel price drop expected for July, says AA News24Wire reports that lower international oil prices have set things up for a substantial fuel price drop for July, according to the Automobile Association (AA). In a fuel price prediction on Thursday, the association said it was expecting the petrol price to drop by 86 cents a litre, diesel by 68 cents, and illuminating paraffin by 58 cents next month. These reductions could have been greater had it not been for the rand, it added. The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund. The current inland price for a litre of unleaded 95 octane petrol is R16.76. If the price does fall by 86 centre per litre, the new inland price will be R15.90 per litre. Read a short report on this story at Engineering News
PSA wants 300 contact book packers in Free State rehired on basis of “reasonable expectation” of employment OFM News writes that the Free State education department’s abrupt decision to shut down all 10 of its learning material and stationery warehouses in 2017 might come back to haunt it. Almost 300 of the department’s former contract workers want to be rehired, but this time on a permanent basis. The group is being represented by the Public Servants Association (PSA) in a dispute lodged with the Education Labour Relations Council. The book packers used to work at the department’s warehouses, located in Welkom, Allanridge, Marquard, Petrus Steyn, Heilbron, Kroonstad, Qwaqwa, Harrismith, Koffiefontein and Mangaung. After being operational for close to a decade, all 10 warehouses were suddenly closed, leaving about 600 employees without jobs. The PSA’s Jantjie Jack advised that the basis of their argument was that the department had created a “reasonable expectation” of employment when it had renewed the employees’ contracts each year. They apparently worked full time for the education department, with their contracts being renewed year after year. The PSA also said the 2015 amendment to the Labour Relations Act regarding contract workers leant weight to its argument because it limited contract work to three months without a justifiable reason. The applicants and respondents in the matter were in the process this week of submitting closing arguments, after which the bargaining council will take 14 days to reach a decision on the dispute. Read the full original of Olebogeng Motse’s report on this story at The Citizen
Steinhoff demands that former CEO Markus Jooste pays back R870m in ‘unjustified enrichment’ BusinessLive reports that in an unprecedented move, Steinhoff is claiming R870m from former CEO Markus Jooste and an additional R272m from former CFO Ben La Grange for "unjustified enrichment". On top of those hefty bills, the furniture retailer is demanding interest and legal costs from the two former executives. But, Steinhoff is not just going after the incentives and bonuses paid to Jooste and La Grange. In a totally unexpected move, it is also going for their base salaries. The claim against Jooste dates from 2009 to 2015 and against La Grange from 2015 to early 2018. A summons, which contains a detailed list of the financial damage allegedly wreaked by Jooste, with the help of La Grange, in the final two years before the company’s share price collapsed, has been lodged with the high court in Cape Town. The 33-page summons directly links Jooste and La Grange to the widespread fictitious transactions and accounting irregularities that led to R200bn being wiped off Steinhoff’s share value in December 2017. Steinhoff said that if it had been aware of the "true facts", no base salary would have been paid and no bonuses or "award shares" granted. They were paid and granted on the "mistaken belief" they were due. Jooste has 10 days to respond to the unprecedented legal move and La Grange one month. The dramatic legal action is without precedent in SA and marks a significant departure from the corporate tradition of dealing with senior management crises behind closed doors. Read the full original of Ann Crotty’s report on the above story at BusinessLive
Criminal case opened against former unnamed Tongaat Hulett executive Bloomberg reports that according to Tongaat Hulett, SA police are investigating an unnamed former executive for his role in an accounting scandal that has forced the sugar maker to restate financials and ask for its shares to be suspended. A criminal case has been opened against the individual, Tongaat indicated, without identifying the person. The company also advised that further measures to hasten a recovery from the crisis included a review of assets, “some of which may be sold and others restructured or retained”. “We are also reviewing, and possibly reducing, our headcount as part of the broader restructuring of the business to ensure the company has the right skills and experience to implement our new operating approach,” the company said. Tongaat’s shares were suspended earlier in June after a series of disclosures on financial mismanagement wiped more than 75% off the market value. Read the full original of Loni Prinsloo’s report on this story at BusinessLive
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