In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 5 July 2019.
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Mboweni declines government guarantee to bail out cash-strapped SABC TimesLIVE reports that Finance minister Tito Mboweni has declined to give the cash-strapped SA Broadcasting Corporation (SABC) a much-needed government guarantee in order for the public broadcaster to stay on air. This was relayed to Communications Minister Stella Ndabeni-Abrahams in a two-page letter dated 25 June 2019. It has taken Mboweni and Ndabeni-Abrahams four months to reject the public broadcaster's loan guarantee application. Last week, Ndabeni-Abrahams told parliament that she was prepared to quit her job rather than give the SABC a loan guarantee while it did not have a solid turnaround strategy. The SABC owes suppliers about R1.9bn, while it struggles to continue paying salaries. Its buildings pose an occupational health and safety risk to employees after years of no maintenance due to a lack of money. SABC spokesperson Vuyo Mthembu could not confirm or deny whether the broadcaster's application had been declined. In his letter, Mboweni noted as follows: “The SABC has been struggling with declining profits as a result of underperforming revenues and a very high cost structure. The SABC’s cost structure is mainly driven by staff costs which constitute on average 40% of total expenditure.” He indicated that a financial analysis, as conducted, indicated that the SABC would invariably find itself in the exact same financial position within the forecast period of the financial model. “This to me indicates that there are fundamental problems with the business model of the entity which, if left unattended, will result in repeated bailouts,” he opined. Read the full original of Mpumzi Zuzile’s report on the above story at TimesLIVE Denel hoping for R2.8bn bailout from government Fin24 reports that Denel wants the SA government to give it a R2.8bn financial boost, a spokesperson for the state-owned arms manufacturer confirmed on Friday. CEO Danie du Toit had earlier told Reuters that there has been progress with a turnaround strategy for Denel and that a R2.8bn cash injection from government would be used to obtain potential export deals that could be worth up to R30bn. Du Toit was appointed CEO in December last year to try to turn Denel around. Denel is facing considerable financial challenges and it hopes to obtain the cash injection from government within the next two to three months. The spokesperson also confirmed that Denel did not intend to sell any stakes in any of its divisions to the Saudi Arabia state defence company SAMI. In June this year, Denel had to scramble to get enough money together to pay staff salaries for that month due to "ongoing liquidity challenges". At the last minute, Public Enterprises Minister Pravin Gordhan announced that a lender had come to the assistance of the company and that salaries would be paid in full to all employees. He indicated that Denel had implemented several turnaround measures, including renegotiating existing contracts, reviewing its supply chain and procurement processes to reduce costs, as well as reducing employee costs through voluntary severance packages. Read the full original of Carin Smith’s report in the above regard at Fin24 Other internet posting(s) in this news category
Manager 'thrown into fire' during violent 'farm invasion' in KZN on Saturday TimesLIVE reports that a farm manager in KwaZulu-Natal (KZN) was hospitalised with burns on Saturday after "violent thugs" invaded a farm, set it alight and allegedly threw him into the flames. IFP MP Inkosi Bhekizizwe Luthuli revealed details about the incident in a statement on Sunday on behalf of the Mathulini Communal Property Association. He indicated as follows: “The perpetrators of this violent and unlawful act are part of the ‘concerned group’ that is attempting to hijack a 7,500 hectare land claim from the Mathulini Communal Property Association and the Ndelo Community Trust, valued in excess of R300m. The farms that make up this land claim produce 400,000 tonnes of sugar cane annually and employ 1,200 people. This violent hijack of a legitimate land claim is a desperate and unlawful attempt to achieve what has failed through legal processes that have so far cost the beneficiaries R6.5m in legal fees. The demands of the ‘concerned group’ ... have already been rejected in the land claims court in numerous cases.” Luthuli added that he had written to President Cyril Ramaphosa and agriculture, land reform and rural development minister Thoko Didiza about the situation. Read the full original of the report by Nico Gous on the above story at TimesLIVE
Blyvoor Gold winning overwhelming support from employees and community Mining Weekly reports that emerging gold-mining company Blyvoor Gold, which is targeting a resumption of mining at the old Blyvooruitzicht gold mine in the last quarter of this year, is winning overwhelming support from the once liquidated mine’s former employees, as well as the members of the nearby mine community. Employees and community members are proudly displaying Blyvoor Gold pledge badges on their chests and spokesperson Joseph Rammusa, who worked for Blyvooruitzicht for 34 years prior to its closure, heaped praise on the new management’s open, transparent and inclusive way of building a modern, innovative and well-protected operational footprint in the Carletonville area of the West Rand. “After Village Main Reef’s liquidation three years ago, our lives stopped, but we never gave up hoping that the mine would some day be reopened,” Rammusa indicated. But that day did come when Blyvoor Gold executive chairperson and seasoned campaigner Peter Skeat and Blyvoor Gold deputy chairperson and fund raiser Richard Floyd came forward to rescue the operation. Blyvoor Gold is said to be turning heartbroken former employees into enthusiastic, black economically empowered (BEE) shareholders, who own 26% of the company. Former employees interviewed last week displayed impressive verve about applying their skills again to generate a potential 2,000 new jobs for the benefit of the community as a whole. Read the full original report on the above story at Mining Weekly Other labour / community posting(s) relating to mining
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Saftu calls for arrests after municipal union activist gunned down outside his home in Port Elizabeth News24 reports that the SA Federation of Trade Unions (Saftu) has called on police to leave no stone unturned in finding those behind the assassination of Bongani Cola, deputy chairperson of the Democratic Municipal and Allied Workers Union of SA (Demawusa). Cola was gunned down as he was leaving his home for work by unknown assailants on Thursday morning. "They did not take his car, which was idling outside the yard; they did not take anything in the car or from him. They shot him twice and left him in the pool of his blood," the federation reported in a statement. A police spokesperson confirmed that the 43-year-old was fatally shot in his abdomen and shoulder by unknown gunmen at about 07:00 outside his house in New Brighton, Port Elizabeth. According to Saftu, Cola, together with "a core of activists" had been making rapid progress in recruiting workers in the Nelson Mandela metro. "This undoubtedly would have angered the enemies of genuinely progressive, independent, democratic, campaigning and socialist-oriented forces. He became a threat to the status quo, and he had to be eliminated," the federation asserted. Read the full original of Kamva Somdyala’s report on the above story at News24. Read Saftu’s press statement at Saftu News Other internet posting(s) in this news category
Cosatu in Gauteng demands Ramaphosa chide Tito Mboweni over e-tolls social media spat BusinessLive reports that trade union federation Cosatu in Gauteng says President Cyril Ramaphosa should call finance minister Tito Mboweni to order after a social media spat with Gauteng premier David Makhura over the scrapping of e-tolls. The SA National Roads Agency of SA's (Sanral’s) e-tolling project, launched in 2013, has largely been a failure as a result of low levels of compliance from Gauteng motorists. The finance minister, who has been vocal about the need to keep the e-toll system functioning, criticised Makhura’s vow to remove it from Gauteng’s roads. In a series of tweets, Mboweni emphasised the need to comply with the user-pay principle of the Gauteng Freeway Improvement Project. Cosatu said it “strongly condemns” Mboweni’s attitude towards policy direction and that he was “disrespecting” intergovernmental relations by using social media as a platform to engage Makhura on the matter. The Presidency advised in a statement that Ramaphosa had mandated transport minister Fikile Mbalula, Mboweni and Makhura to submit a solution to cabinet on the impasse around e-tolls by the end of August. The President apparently remarked that “such exchanges on social media are unbecoming of their high offices and fail to provide the leadership required in this instance.” Read the full original of Odwa Mjo’s report on the above story at BusinessLive Zandile Gumede due back at work on Tuesday as eThekwini mayor, but DA threatens court action Sunday Tribune reports that eThekwini mayor Zandile Gumede is expected back at work on Tuesday, but the ANC provincial leadership must still decide on its next step after it forced her to take a 30-day leave of absence. Both her spokesman and her lawyer confirmed that the 30-day leave the ANC had asked her to take was due to end on Monday. In May, Gumede appeared before the city’s Commercial Crimes Court on fraud charges related to a R208m Durban Solid Waste tender in which 62 councillors were also implicated. She is out on R50,000 bail and is expected back in court in August. While the mayor vowed to return to work after the period of forced leave, as resigning would seem like an admission of guilt for something she did not do, the Democratic Alliance (DA) said it was having none of that. Executive committee councillor Thabani Mthethwa said they were in talks with their legal advisors and he indicated as follows: “We have looked at whether she was in breach of her bail conditions when she presented the budget at the end of May and presided over Exco. If she is in breach, automatically the police should re-arrest her. We’ll take the matter to court if needs be.” Meantime, IFP councillor Mduduzi Nkosi said he had written to Premier Sihle Zikalala requesting that an independent investigation be launched into the mayor’s conduct. The ANC’s provincial spokesperson said they would make an announcement regarding Gumede once they knew the outcome of an internal party investigation into whether allegations against Gumede were politically motivated. Read the full original of the report by Samkelo Mtshali & Wendy Jasson da Costa on the above story at Sunday Tribune Other internet posting(s) in this news category
PIC denies investment in Edcon was the result of political pressure, but credits unions’ role in saving jobs BusinessLive reports that the Public Investment Corporation (PIC) has responded to suggestions that it invested in Edcon because of political pressure by saying that it was in the national interest to contribute to the turnaround of the struggling retailer. “PIC’s investment is underpinned by sound commercial, social and governance principles,” it indicated in a statement. Deon Botha, head of corporate affairs at the PIC, asserted that the state-owned asset manager, which oversees more than R2-trillion in government employees’ pension money and other government funds, had followed the necessary procedures in making the investment in Edcon on behalf of the Unemployment Insurance Fund (UIF). He said the UIF’s investment was just one component of interventions by multiple stakeholders aimed at preventing the loss of over 140,000 jobs across the value chain of Edcon. “The result of this is that UIF is now one of the shareholders in Edcon. Had there been no intervention by both the UIF and other stakeholders, jobs would have been lost in Edcon and companies that service Edcon. In the final analysis, the UIF would have to bear the burden of having to pay unemployment insurance claims,” he said. Edcon CEO Grant Pattison stated on Thursday that unions had played an important role in getting the PIC on board. “It was in the national interest to prevent job losses. The unions did their job in placing pressure on the PIC and others to invest in the recapitalisation programme. We appreciated the help from unions,” Pattison stated. Read the full original of Alistair Anderson’s report in the above regard at BusinessLive. Read the PIC’s statement at Polity
BMF objects to appointment of white male as Mango CEO Fin24 reports that in a statement on Friday, the Black Management Forum (BMF) condemned the appointment of Nico Bezuidenhout as CEO of state-owned low-cost airline Mango, which is a subsidiary of SA Airways (SAA). The forum indicated its objection to the hiring of a white male as CEO and also questioned whether Bezuidenhout himself was qualified for the position. The organisation said it intended to challenge the appointment "through all available means". In November 2014, the issue of Bezuidenhout's qualifications had been raised in relation to his appointment as acting CEO at SAA. At the time, Bezuidenhout had indicated that the SAA board felt his tertiary studies, although incomplete, provided sufficient grounding, while his performance track record exceeded that of a number of previous, highly qualified, airline CEOs. But, in the view now of the BMF, there were "thousands of suitably qualified black professionals" who could fill the role of CEO of Mango. Besides the qualification issue, the BMF also questioned the process of advertising for the position because in its view, it had been tailor-made to suit Bezuidenhout. The BMF had also not been satisfied with the appointment of a white male, Danie du Toit, as CEO of state-owned arms manufacturing company Denel in December last year. Read the full original of Carin Smith’s report on the above story at Fin24. Read too, PPF disappointed with re-appointment of Nico Bezuidenhout as CEO of Mango Airlines, at Polity (press statement) Ipid under fire for spending most of its budget on salaries rather than operations Independent News reports that the Independent Police Investigative Directorate (Ipid) has come under fire from MPs for spending the bulk of its R315 million budget on paying salaries instead of running its operations. This was after Ipid advised that out of its budget of R315m for the 2018/19 financial year, R212m had gone to the salaries of its employees, which had left little for the organisation’s operations. Ipid warned the same was likely to happen in the current financial year as its projections showed that even more would be spent on salaries. This would leave R52m for the organisation’s operations, while the balance of R55m would be redirected to contractual obligations. But members of the portfolio committee on police were not impressed and said that Ipid had to prioritise its business and focus on its core function of investigating misconduct cases against the police. However, Ipid acting head Victor Senna said their resources were stretched and that Ipid had for years been trying to get an increase on its budget. Head of investigations at Ipid, Matthew Sesoko, also told the committee they needed to deal with a backlog of cases and went on to indicate: “In terms of the structure of Ipid, it is supposed to employ more than 535 people, but employs far less because of budgetary constraints.” Read the full original of Siyabonga Mkhwanazi’s report in the above regard at Independent News Other internet posting(s) in this news category
CCMA cases pile up with new national minimum wage referrals Mail & Guardian reports that the Commission for Conciliation, Mediation and Arbitration (CCMA) has received 1,073 national minimum wage (NMW) referrals for the first half of this year, thereby pushing its overall caseload to over 100,000 complaints. Its work also includes 8,792 cases involving basic conditions of employment. But according to CCMA director Cameron Morajane, there is no backlog of cases and the statutory body has “put measures in place to be able to process referrals within the statutory 30-day period, including early engagement with the parties through our pre-conciliation process”. He indicated that of the NMW cases, “a total of 17% arbitration awards were issued”, meaning that 182 cases have been dealt with so far. According to the department of labour’s chief director responsible for labour relations, Thembinkosi Mkalipi, not all companies are complying with the minimum wage law, viz.: “If your question is whether all employers are complying with the law, the answer [is] ‘No’. That is why there are cases at the CCMA.” The department said it regularly held inspections and “employers that are found [to be] noncompliant are given a chance to rectify, failing which we refer them to the CCMA. This is happening currently.” The NMW came into effect on 1 January. It stipulates a minimum wage of R20 an hour, or R3,500 a month. Employers unable to comply can apply for exemptions based on their financial circumstances and after consultation with affected employees. Between January and June this year, 385 exemption applications were received, of which 247 were approved, thereby affecting 45,051 workers. Read the full original of Tshegofatso Mathe’s report in the above regard at Mail & Guardian
Evidence suggests NHI dream will be a disaster, Solidarity warns Trade union Solidarity expressed its concern on Friday about the precarious state of health care in the public sector and argued that the implementation of the National Health Insurance (NHI), as confirmed by newly appointed Health Minister Dr Zweli Mkhize, would only bring “large-scale and far-reaching disaster”. Morné Malan, senior researcher at the Solidarity Research Institute (SRI), explained: “Last year, we heard about the Life Esidimeni scandal, the Charlotte Maxeke Hospital crisis, reports from the Office of Health Standards Compliance (OHSC) indicating that only 1% of state hospitals comply with basic requirements, and we heard about crises in the North West Province and elsewhere. Now we hear about fires at hospitals in Durban, violence in Gauteng hospitals, patients tied to chairs in Mamelodi, terrible conditions in Ga-Rankuwa, and staff shortages across the country. What would have to happen before the governing party realises it is incapable of managing health care?” Solidarity has indicated its support for expanding private sector services to make them more affordable and accessible. Malan went on to indicate: “Instead of punishing an excellent private sector by a de facto nationalisation of health care, the skills and systems that are in place in the private sector should be used to improve the system so everyone can make use of it.” Hennie Bierman, Head of the Solidarity Occupational Guilds, commented that “we are truly concerned that government can believe that a centralised health system such as the NHI is the solution to deliver quality health care. The NHI will push our health practitioners, who are already under huge pressure, over the edge.” Read Solidarity’s press statement at Polity. Read too, Parliament’s health portfolio committee hears that NHI Bill ‘is a must’, at Parliament News (press statement) Other internet posting(s) in this news category
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