In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Thursday, 21 November 2019.
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Solidarity requests court to put SAA in business rescue BusinessLive reports that trade union Solidarity lodged court papers on Thursday requesting that South African Airways (SAA) be placed in business rescue. The Companies Act allows trade unions to bring such an application. Solidarity said it was acting on behalf of its members within the SAA group, but also on behalf of its members in public enterprises in all sectors and on behalf of every South African who paid tax. “The crisis in SAA not only threatens the jobs of SAA employees, it threatens all workers and taxpayers. Solidarity’s members are also ordinary workers who pay a portion of their hard-earned money as taxes. We also act on behalf of the approximately 500,000 members of the Solidarity Movement who faithfully pay their taxes. They cannot allow their tax money to be constantly misused to subsidise struggling, ineffective state enterprises,” Solidarity’s COO Dirk Hermann stated. Solidarity had previously planned to bring such an application, but was encouraged by former SAA CEO Vuyani Jarana and the department of public enterprises not to do so. Indicating that SAA was heading for liquidation which would have huge consequences for employees, Hermann said a business rescue application was the only remaining option to limit the damage. “Recent events at SAA accelerated the crisis. SAA’s day zero is imminent. The current shareholder has lost control over finding a solution for SAA,” he said. Read the full original of the report in the above regard by Carol Paton at BusinessLive. Read too, Solidarity says SAA nearing 'total collapse', wants it placed in business rescue, at Fin24 SAA running out of cash and could miss salary payments this month, even as unions seek to expand strike Reuters reports that South African Airways (SAA) has nearly no cash left and might miss salary payments this month, even as a crippling six-day strike has pushed the state-owned airline to the brink of financial collapse. SAA board member Martin Kingston said the strike was costing the airline a minimum of R50 million a day and that, without additional state guarantees, the board could have to recommend that the company be liquidated. “We may not have enough cash to pay salaries at the end of the month. We are still investigating how we can do that. This is a real-time discussion we are having with National Treasury and the Department of Public Enterprises. We need help imminently,” he warned. Compounding the cash squeeze, the National Union of Metalworkers of SA (Numsa) and SA Cabin Crew Association (Sacca) called a strike last week after SAA refused their demand for an 8% salary hike and announced it planned to cut almost 20% of employees. SAA has offered a 5.9% increase. Another large union, the National Transport Movement, is considering whether to accept that offer. Meantime, Numsa has issued catering firm Air Chefs, a subsidiary of SAA, with a letter of intent threatening a secondary strike and has secured a strike certificate over a separate issue at British Airways franchise partner Comair. The standoff between SAA and the unions is a critical test of President Cyril Ramaphosa’s pledge to fix ailing state firms. But the government has few easy options to rescue SAA. The airline has received more than R20 billion in bailouts over the past three years and is hobbled by an unprofitable route network and a fleet of inefficient planes. Read the full original of the report in the above regard by Alexander Winning and Emma Rumney at Moneyweb. Read too, Gordhan says SAA may have no money for salaries this month, at Fin24 Numsa warns of ‘no retreat’ as Air Chefs set to join deadlocked SAA strike BusinessLive reports that a secondary strike that could affect airline catering is on the cards, as talks between unions and South African Airways (SAA) remained deadlocked on Wednesday. Addressing striking workers on Wednesday, National Union of Metalworkers of SA (Numsa) spokesperson Phakamile Hlubi-Majola said Air Chefs, a subsidiary of SAA, had served the airline with a secondary strike notice. She also indicated as follows: “Comair has a strike certificate. We are coming after Acsa (Airports Company SA). If Acsa shuts down, none of the planes are moving.” Numsa said there would be “no retreat, there will be no surrender” regarding the strike. Numsa and SA Cabin Crew Association (Sacca) members have been on strike at SAA since Friday. On Tuesday, public enterprises minister Pravin Gordhan issued a statement after meeting with striking unions making it clear that the government was “not in a position to make money available to the airline”. SAA has offered workers a 5.9% increase, but they are demanding 8%. Read the full original of the report in the above regard by Naledi Shange at BusinessLive Talks continuing on Thursday at CCMA to break deadlock between unions and SAA TimesLIVE reports that the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) were on Thursday still engaged in wage talks with South African Airways (SAA). Numsa spokesperson Phakamile Hlubi-Majola indicated that since Wednesday the parties had been participating in mediation under the auspices of the CCMA to try to break their deadlock over the strike that commenced last Friday. “We have agreed to continue talks and hope that we will be able to find an acceptable compromise which suits all parties,” Hlubi-Majola stated. She said a notice would be issued once the talks had been completed. Addressing striking workers on Wednesday, Hlubi-Majola said that Numsa had served SAA with a notice of intent to embark on a secondary strike at Air Chefs, a subsidiary of SAA. She also advised that a strike certificate had been issued in respect of Comair. On Thursday, Comair said there were two different processes pertaining to Numsa and the airline. One related to disputes between Comair and Numsa and the second to a call by Numsa for a secondary strike. “Numsa has been issued two certificates of non-resolution for disputes pertaining to both Comair's ground and cabin crews. Before embarking on a strike, Numsa will conduct a secret ballot of its members and thereafter give Comair 48 hours' notice. Comair has not yet received a notice of intention to strike,” the airline advised. Comair also said Numsa had called for a secondary strike in support of the current SAA and SA Airways Technical (Saat) strike, but the airline had not yet been served the required seven days’ notice for the industrial action. Read the full original of the report in the above regard by Naledi Shange at TimesLIVE Comair refutes having been served a secondary strike notice by Numsa Moneyweb reports that Comair has refuted media reports that it was issued a secondary industry strike notice by the National Union of Metalworkers of SA (Numsa). On Wednesday, Reuters reported that a strike certificate had been issued to Comair as part of a secondary strike against South African Airways (SAA), citing an unnamed Numsa spokeswoman. Numsa and the SA Cabin Crew Association (Sacca) have been on strike at SAA since last Friday. Numsa has called for a secondary industry strike in support of the current SAA and SAA Technical (SAAT) strike. In a statement issued on Thursday, Comair indicated that it had not yet been issued with any such strike notice. “Comair has not yet been served the required seven days’ notice for a secondary industry strike,” the airline stated. Comair clarified that there were two different processes pertaining to Numsa, i.e. firstly, disputes between Comair and Numsa and, secondly, calls by Numsa for a secondary strike. Regarding the former, the airline said Numsa had been issued with two certificates of non-resolution for disputes pertaining to both Comair’s ground and cabin crew. “Before embarking on a strike, Numsa will conduct a secret ballot of its members, and thereafter give Comair 48 hours’ notice. Comair has not yet received a notice of intention to strike,” the airline advised. Read the full original of the report in the above regard at Moneyweb
Pravin Gordhan says he will ‘interfere’ if Eskom jobs are threatened Mining Weekly reports that Public Enterprises Minister Pravin Gordhan has refuted suggestions that government was interfering with the work of boards and executives at State-owned companies, such as Eskom, but has also indicated that he will not stand by should decisions be made that lead to significant job losses. In response to questions posed by MPs during a briefing on the so-called Eskom Special Paper to the Portfolio Committee on Public Enterprises, Gordhan said there had been “no interference, as far as I’m concerned”. He went on to state: “But if you [hear us say] ‘don’t fire 16,000 people’, and you consider that to be interference, well I’m sorry, we are going to interfere, because it matters whether you put 16,000 families into the street as far as the African National Congress is concerned.” Gordhan urged labour, business, government and communities to come together to find different ways of redeploying those Eskom employees whose jobs could be affected by the decommissioning of the older power stations. Already some workers were being transferred from stations such as Komati, which is facing decommissioning, to the Kusile plant, which is in the process of being ramped up. In addition, Gordhan was confident that some Eskom employees could, in time, be transferred to municipalities. Read the full original of the report in the above regard at Mining Weekly Cabinet backs new Eskom CEO Andre de Ruyter Fin24 reports that according to Minister in the Presidency Jackson Mthembu, new Eskom CEO Andre de Ruyter will bring significant international experience and turnaround skills necessary to carry out interventions at Eskom. The minister was speaking at a post-Cabinet briefing on Thursday. De Ruyter's appointment was announced this week and he will take on the role in mid-January 2020. He is the current CEO of Nampak and has held senior positions at Sasol. While Cabinet listed De Ruyter's experience internationally and in terms of dealing with governments and regulators, turnaround skills and a "track record of delivering sustainable profits and value for stakeholders", De Ruyter's appointment came as a surprise to markets. And, while the ANC and DA have welcomed his appointment, the EFF has labelled it as "anti-transformation". "[Minister of Public Enterprises] Pravin [Gordhan] does not believe that Africans can manage and build complex institutions. The only time he is comfortable appointing Africans is when he puts them in a position of permanent juniority and treats them like his lap dogs," the EFF claimed. But, Mthembu came to the defense of the Eskom board's appointment of De Ruyter, saying: From where we are seated, De Ruyter (has) the necessary expertise to bring stability in the governance arena and financial management. He comes quite decorated to fulfill this role. South Africa belongs to all who live in it – black and white. There are some who forget or decide to forget that there have been many black CEOs at Eskom." Read the full original of the report in the above regard by Lameez Omarjee at Fin24
Following fatal 2018 fire, Bank of Lisbon building in Joburg CBD to be demolished on Sunday News24 reports that a Johannesburg building, in which a blaze claimed the lives of three firemen in September 2018, will soon be no more. The Gauteng provincial government has announced that the Bank of Lisbon building would be imploded on Sunday. The 31-storey building is situated at 37 Pixley ka Isaka Seme Street, in the Johannesburg central business district. "After an assessment was conducted by structural engineers, it was discovered that the fire caused severe damage to the slabs of the burnt floors and posed a threat of collapsing if left [unchecked]," infrastructure development department head, Bethuel Netshiswinzhe, said on Wednesday. He added that the project and clearing of the site would be completed in March 2020. "Following that the site will be prepared for future building in order to meet the accommodation needs of GPG, plans that I will soon communicate," Netshiswinzhe advised. Read the full original of the report in the above regard at News24 Other internet posting(s) in this news category
Popcru CEO in court on Wednesday over allegations of conspiracy to kill senior union members News24 reports that Police and Prisons Civil Rights Union (Popcru) Chief Executive Officer, Zwelinkosi Reuben Mdletshe, and another man appeared in the Kempton Park Magistrate's Court on Wednesday on allegations of conspiring to kill senior Popcru members. Mdletshe and Robert Sheriff were remanded until Friday, when they are expected to appear for a formal bail application. Police spokesperson Colonel Katlego Mogale indicated as follows: "Their pursuit comes in the wake of an apparent elaborate plot to kidnap and murder current serving members within the leadership of Popcru. Investigations commenced in September this year and so far it has revealed there was apparent misappropriation of funds that was carried out through Popcru Investment Group of Companies (PIGC). These substantial transactions were allegedly embezzled since 2016." Mogale added that Neo Letele, who was arrested on 6 November, was apparently a middleman who was allegedly instructed by Mdletshe and Sheriff to source an assassin who was to be paid R1m to execute the hit. "This was in an attempt to silence those who wanted the two suspects to account for the funds,” said Mogale. Read the full original of the report in the above regard by Ntwaagae Seleka at News24
Steel industry’s woes have left a trail of job losses, but prospects of increased intra-African trade exist Financial Mail writes that low domestic demand and a depressed global market are taking their toll on SA’s steel sector — and no easy answers seem on hand to offer relief. Steel’s woes have left a trail of job losses. Between 2007 and the second quarter of 2019, the metals and engineering industry lost about 49,000 jobs — 38,000 of those in the metals sector. Over five years, the metals sector has shed about 16,000 jobs, according to the Steel & Engineering Industries Federation of Southern Africa (Seifsa). "The job losses are a huge concern," says Seifsa’s Michael Ade, who believes companies need to start exploring markets beyond SA — and beyond Southern Africa. "We are encouraging companies to take advantage of the African Continental Free Trade Area agreement [AfCFTA]. There is no demand locally because of various factors, including the constrained economic environment and fiscal consolidation," Ade pointed out. He believes the East African Community offers growth prospects for the local industry — as do West and Central Africa. But trade expert Catherine Grant Makokera says while the AfCFTA should in theory provide opportunities for the local steel industry, it is not likely to be a solution in the short term. But while she has low short-term expectations, several downstream steel companies are optimistic about the prospects of increased intra-African trade. Nicolette Skjoldhammer, chair of the Southern African Institute of Steel Construction (SAISC) is optimistic about the possible expansion of the SA steel industry and believes the industry is strategically and geographically well positioned to service the requirements of the African continent. Read the full original of the report in the above regard by Siseko Njobeni at BusinessLive (paywall access only). Read too, Saldanha Steel’s demise is just one more falling domino in ongoing decline of the SA steel industry, at BusinessLive (paywall access only)
Bogus medical student working at Mamelodi Hospital caught out after fallout with friend News24 reports that a 24-year-old man posing as a medical student and working at Mamelodi Hospital was only caught out after his friend snitched on him following a fallout. The bogus student doctor started working at the hospital on 29 September in the accident and emergency unit. A month later, the jig was up when it was revealed he did not have the necessary qualifications. According to the Gauteng Department of Health, the man was able to dupe the hospital by submitting fake documents purporting to be from the University of KwaZulu-Natal. Departmental spokesperson Kwara Kekana indicated that the man was not hired but rather placed as a medical student at the hospital and worked in the emergency unit under the supervision of senior medical officers. "A close acquaintance of his alerted the hospital management after they had a fallout. She mentioned that he was using two different names and had two different IDs. The hospital called the university for verification and it had no knowledge of him," Kekana said. Read the full original of the report in the above regard by Alex Mitchley at News24
CEO of Municipal Infrastructure Support Agent (Misa) arrested on Thursday BusinessLive reports that Ntandazo Vimba, CEO of the Municipal Infrastructure Support Agent (Misa), was arrested by the Hawks on Thursday morning. Misa is a component of the national government, whose core mandate is building and providing technical capacity to municipalities. It is an integral part of the department of co-operative governance’s programme towards improving municipal infrastructure provisioning and maintenance for accelerated service delivery. Lungi Mtshali, spokesperson for Minister Nkosazana Dlamini-Zuma, confirmed Vimba's arrest. He said the nature of the charges had not been specified yet, but that Vimba was due to appear in court in East London on Friday, and there would be more information available after the court appearance. Vimba's arrest on Thursday followed that of former state security minister Bongani Bongo in Cape Town. Bongo appeared in the Cape Town Magistrate's Court on Thursday morning on a charge of corruption relating to an attempt to bribe Ntuthuzelo Vanara, the evidence leader of parliament's inquiry into state capture at state-owned enterprises in 2017. Read the full original of the report in the above regard by Claudi Mailovich at BusinessLive
Cellphone under 14-year old pupil’s pillow leads to Mpumalanga teacher's arrest for sexual grooming TimesLIVE reports that a 30-year-old Mpumalanga teacher is behind bars for allegedly having an inappropriate relationship with a 14-year-old pupil. The teacher has been charged with child sexual grooming and supplying, exposing and displaying pornography to a child. Brig Leonard Hlathi indicated as follows: “Reports indicate that the mother of the girl was at home on November 5 when she entered her daughter's bedroom. She noticed a cellphone that she did not recognise under a pillow. The child was confronted about the person who bought her the cellphone. The daughter eventually admitted that the man, who is believed to be a teacher at the girl's school, bought it for her.” The mother went through the phone and discovered pornographic pictures that had been exchanged between the teacher and the pupil. She then contacted the police. The teacher has since appeared in the Kabokweni Magistrate’s Court where the matter was postponed to Friday for a formal bail application. Read the original of the above report by Naledi Shange at TimesLIVE Other internet posting(s) in this news category
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