This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Wednesday, 5 February 2020.
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Business rescue practitioners want SAA job cuts to be fast-tracked BL Premium reports that the business rescue practitioners (BRPs) of South African Airways (SAA) have told employees that they intend to expedite retrenchments at the troubled national carrier. In a meeting with employee representatives on Tuesday, Les Matuson and Siviwe Dongwana said retrenchments were now under consideration, but the company could not afford the mandatory 60-day consultation process, prescribed by the Labour Relations Act. Mashudu Raphetha of the National Transport Movement (NTM) related as follows: “They have asked for an expedited process as they are saying that their cash will be finished by the end of March. As NTM, we said that we don’t have a problem as long as the process is still mediated by the CCMA and as long as pilots are also considered for retrenchments.” But, the SA Cabin Crew Association’s (Sacaa’s) Zazi Sibanyoni-Mugambi said the union, as well as National Union of Metalworkers of SA (Numsa), with which it is in alliance, had strongly objected to the prospect of retrenchments in the absence of the business plan for the new SAA. The plan, which the BRPs must present to creditors, is due to be completed by the end of February. No numbers were put on the table on Tuesday. Before the recent strike at SAA and the company being placed in business rescue, management had indicated that 944 jobs out of a total complement of just more than 5,000 would need to be cut. Numsa’s Phakamile Hlubi-Majola reported that the BRPs said at the meeting that they wanted to reduce staff by much more than the 944 workers who were going to be retrenched last year. Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only) Other internet posting(s) in this news category
Gordhan open to pension bailout for Eskom Moneyweb reports that Minister of Public Enterprises Pravin Gordhan has given a clear indication that the proposal made by Cosatu to use money managed by the Public Investment Corporation (PIC) to support Eskom was being taken seriously. The PIC manages the funds of the Government Employees pension Fund (GEPF) and other workers monies. Speaking at a lunch on Tuesday, Gordhan commended the federation for the proposal. “Trade union federation Cosatu has come up with its own innovation to protect jobs within the Eskom environment. That is 16 000 people. That is a great move on the part of labour to say we are part of the solution, not just antagonists to any change that is happening,” Gordhan commented. Although not explicitly stated, the problem is that retrenching people from the power utility would be extremely difficult politically. The minister therefore appears prepared to consider the Cosatu proposal, which suggests that the PIC together with the Industrial Development Corporation and the Development Bank of South Africa should take over Eskom’s debt. Gordhan began his comments about the power utility by emphasising the extent to which Eskom has been hollowed-out by state capture, and the size of the challenge faced in managing its recovery. The minister added that the process of splitting Eskom into three separate entities – generation, transmission and distribution – was underway. Read the full original of the report in the above regard by Patrick Cairns at Moneyweb Global auditor Mazars cautions about bail-out of Eskom via pension fund savings Business Report writes that analysts at Mazars, a global audit, accounting and consulting group cautioned on Tuesday that fiscal prudence would be needed in using government employees’ pension savings to bail out Eskom’s R454 billion debt. Trade union federation Cosatu has proposed the use of government-administered pension funds as a means to alleviate the financial burden at the state-owned power utility. Eskom’s balance sheet has been in the red for a number of years and the power utility expects to report repeated losses of about R20billion this financial year. Bernard Sacks, a tax partner at Mazars, noted that there was no inherently right or wrong answer in the kind of arrangement proposed. He said the litmus test for dipping into workers’ pension savings should be the potential return that could be generated by investing in a company like Eskom. “The question that I would have is to what extent are you going to get a return, certainly in the short term, on that investment. That will also have to be accompanied by operational improvements, as well as greater financial discipline, because I think that discipline has been lacking,” Sacks remarked. Cosatu wants the Public Investment Corporation (PIC) and state lenders to take over at least R254bn of Eskom’s debt. Cosatu notes that the PIC is already exposed to Eskom to the extent of R95bn, and the intervention would be about securing the money that has already been invested there. “This is a moment of national crisis and we need social compact on how to save Eskom and the economy,” Cosatu said in its key economic interventions and proposals document. Read the full original of the report in the above regard by Siphelele Dludla at Business Report No DBSA financing on the cards for Eskom, MPs told BusinessLive reports that Development Bank of Southern Africa (DBSA) chief investment officer and acting CEO Paul Currie told MPs on Tuesday that the bank had a very high exposure to Eskom and did not plan to make any further loans to the over-indebted power utility. Currie also stressed that the R3.5bn bridging loan by the bank to South African Airways (SAA) was made only because the airline was in business rescue and the loan was made to facilitate that process. Currie told MPs that the DBSA had granted Eskom a “massive” R15bn loan in 2010 to fill a funding gap for its mega-projects when Eskom was performing well and, to date, the utility had honoured all its interest payment obligations. The loan had been prompted by the threat of market failure as Eskom could not raise the money commercially. The DBSA had also participated with commercial banks a few years ago to provide bridging finance to Eskom. “This is something we do occasionally but typically in exceptional circumstances. It is not something we do regularly,” Currie indicated. He stressed that because of the bank’s large exposure to Eskom, no new loans were envisaged as this would probably exceed prudential limits. “You can never say you will or won’t do something. It will depend on how it is structured. Eskom would certainly not be a target for us to lend to at the moment,” Currie explained. Read the full original of the report in the above regard by Linda Ensor at BusinessLive Other internet posting(s) in this news category
Workers at Toyota’s Prospecton plant reinstated after embarking on unprotected strike TimesLIVE reports that the National Union of Metalworkers of SA (Numsa) in KwaZulu-Natal (KZN) said on Wednesday it had successfully managed to renegotiate for 2,895 workers at Toyota SA to be reinstated after they were dismissed for embarking on an unprotected strike. Meanwhile, Toyota SA Motors (TSAM) confirmed in a short statement that the unprotected strike by unionised employees affiliated to Numsa at the Prospecton Plant in Durban had ended. “TSAM engaged Numsa structures at length, both internally and externally, to come to a resolution. Agreement has been reached and striking employees are expected to return to work … with no dismissals,” the company indicated. After going on an unprotected strike relating to a “quality bonus” dispute, the company apparently fired 2,895 employees on 24 January after they refused to adhere to a final written warning issued via SMS. Numsa’s KZN regional secretary, Mbuso Ngubane, said the union did not support its members going on an unprotected strike because they risked being dismissed, which was exactly what happened. Ngubane said that since the dismissals, the regional leadership had been negotiating tirelessly with the employer for the workers to be reinstated. “Eventually (on Tuesday) we managed to come to an agreement with the management and our members have all been reinstated,” Ngubane indicated. He said all members were expected back at work on Wednesday and no further disciplinary action would be taken against them. Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE
Public sector unions vow to fight state’s proposals to freeze salary increases this year BusinessLive reports that with the government battling to contain its huge wage bill, public sector unions have warned the government that they will fight its attempts to freeze increases this year. The next round of public sector wage negotiations is set to take place in the second half of the year. In July last year, public service and administration minister Senzo Mchunu raised the ire of public sector unions when he announced his department’s intentions to cut more than 30,000 jobs in an effort to reduce the state’s wage bill by more than R20bn. The unions say their members deserve better salaries and perks and they should not take the fall for the government’s shortfalls. They blame the current fiscal chaos on state capture, which has cost the country more than R500bn. Referring to the minister’s plea for unions to agree to some sort of pact for the government to freeze salary adjustments, Reuben Maleka of the Public Servants Association (PSA) said they had made it clear to him that they would not agree to such a position. Zwelinzima Vavi of the SA Federation of Trade Unions (Saftu) said civil servants would never agree to no salary increases because for the past six years there hasn’t been a “real increase in their salaries”. Casper Nanto of Nehawu said Cosatu had agreed on a road map on how to deal with the upcoming wage negotiations in terms of which they would go to their members to get a mandate and then take the demands to the employer around July. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive
SA’s mining industry making strides in health and safety, says Minerals Council Mining Weekly reports that the Minerals Council SA (MCSA – previously called the Chamber of Mines) says the SA mining industry is making strides in improving its health and safety performance, but more needed to be done on site, as well as off-site, to keep employees safe. The council confirmed during the 2020 Investing in African Mining Indaba, in Cape Town, this week, that the fatality rate in the mining industry in 2019 had reached the lowest in recorded history. It pointed out that mining deaths in 2019 had decreased by 92% since 1993, while the number of injuries had dropped by 72% over the same period. MCSA CEO Roger Baxter said he was very pleased with the declining rate of fatalities. It was in line with the council's new strategy, Khumbul’ekhaya, meaning ‘remember home’ – so named as the industry recognised that fatalities had the greatest impact on loved ones at home. On the back of a tough year in 2018, when 81 people in the industry died, the MCSA got 34 CEOs from mining companies together in January 2019. This culminated in the CEO-led strategy on health and safety. Meanwhile, tuberculosis (TB) prevalence in the mining sector was now below the national average as the result of a target set five years ago. The incidence of TB has decreased by 63% since 2008, while silicosis incidence has dropped by 56% over that period. Many of the gains have been recent. While statistics for 2019 have not been reported yet, there were sharp drops between 2017 and 2018, with silicosis decreasing by 29% during that time, and TB decreasing by 24%. Read the full original of the report in the above regard at Mining Weekly
Thousands of jobs in waiting for next wind farm bid round, says wind energy association Engineering News reports that thousands of jobs await a Ministerial determination to give the green light for the next round of wind farms to be built. The SA Wind Energy Association (Sawea) says SA’s energy transition is poised to unlock economic growth and deliver thousands of much-needed jobs at a time when the country faces staggering unemployment rates. “The positive impact of continued wind farm construction on the economy, over the next ten years, cannot be overstated. In the construction phase wind energy projects make a significant impact on jobs in different parts of the value chain,” Sawea CEO Ntombifuthi Ntuli noted. Twelve wind farms are under construction in SA, with each of them making use of high levels of local content. The next ten years will see 17 new wind farms being built each year. Sawea advised that tower manufacturing facilities were already set up in the country, with additional capacity and facilities awaiting the government’s next bid round of the Renewable Energy Independent Power Producer Procurement Programme. Ntuli explained that looking specifically at the manufacturing sector that was poised to create jobs, the yearly capacity of 1,600 MW translated to 640 individual towers and 1,920 wind turbine blades each year. The existing lower tower manufacturing facility in Atlantis, on the Cape’s West Coast, currently produces 150 towers a year and has created 340 direct jobs and 200 indirect jobs. Therefore, manufacturing 640 towers locally could potentially create 1,360 direct jobs and about 800 indirect jobs. Read the full original of the report in the above regard at Engineering News Other internet posting(s) in this news category
KZN's Dube TradePort looking for interns Business Report writes that in a statement on Tuesday, the Dube TradePort said that unemployed graduates had the opportunity to gain work experience through Dube TradePort Special Economic Zone’s (SEZ’s) Internship and In-Service Training Programme, which opened this month. Solomon Nkosi, corporate social investment project leader, indicated: “We have opened our facilities to graduates, allowing them to gain hands-on experience from the pool of industry experts and specialists that Dube TradePort SEZ employs across its various businesses.” The SEZ has operations that cover several sectors and specialisations, including town planning, infrastructure development and construction, environmental management, cargo and logistics, finance, investor relations and a range of other support activities. Nkosi indicated: “Close to 200 interns and trainees have benefited from the programme since 2013. During the course of 2019, Dube TradePort SEZ hosted 47 interns, which was the highest number of interns hosted at one time since the inception of the programme. Of these, 20 percent have since secured permanent employment.” The programme targets unemployed graduates between the ages of 18 and 35 years with no or limited work experience within their chosen profession. Applicants must have completed their tertiary qualification, or require experiential learning to complete their qualification. The Internship Programme is a 12–24 month development programme. A link to the online application portal is available on Dube TradePort Corporation’s website here Read the full original of the report in the above regard by Philippa Larkin at Business Report
SAPS received over 530, 000 applications for only 7,000 positions Cape Argus reports that the SA Police Service (SAPS) has received more than 530,000 applications for a mere 7,000 vacancies. National police spokesperson Vishnu Naidoo said the process was still unfolding, with the screening and selection for the Basic Police Learning Development Programme for the 2019/20 financial year still underway. Applications closed on 15 October last year, and qualifying candidates who met the basic enlistment requirements were being subjected to thorough screenings to determine their eligibility to serve as men and women in blue. Naidoo said a number of applicants had already undergone psychometric assessments, which included measuring an individual’s emotional stability and ability to function in the Community Service Centre and within the broader SAPS community. “The applicant’s level of integrity is also measured, to determine the susceptibility of an individual to corrupt activities,” Naidoo indicated. Candidates who have undergone and were successful in their psychometric and integrity assessments will be given the chance to proceed to the next level in the recruitment process. During last year’s budget vote in July, Police Minister Bheki Cele said they would increase the numbers in the next two intakes in the police colleges from 5,000 to 7,000 a year. Read the full original of the report in the above regard by Sisonke Mlamla at Cape Argus
Master Builders association calls for meeting with Nzimande to clarify Ceta investigation Engineering News reports that Master Builders SA (MBSA) has called for an urgent meeting with Higher Education, Science and Technology Minister Blade Nzimande, to provide clarity on the prospects of thousands of learners who are in training programmes supported by the Construction Education and Training Authority (Ceta). MBSA is the industry body representing construction contractors. On 29 January, Nzimande placed Ceta under administration to facilitate an investigation into allegations of financial mismanagement and maladministration. “We have thousands of learners placed with building contractors on learnerships, apprenticeships and candidacy programmes and the immediate concern is to ensure that the placing of Ceta under administration does not result in unintended consequences for these programmes and for skills development in the construction sector,” MBSA president John Matthews indicated. He confirmed that MBSA had been aware of ongoing challenges at Ceta, which were resulting in significant delays in the payment of training grants, bursaries and stipends to employers and learners. At just below 10% of the total labour force, the construction industry is one of the largest employers in the country. However, the lack of qualified and experienced workers has been cited as one of the biggest threats facing the industry. Read the full original of the report in the above regard at Engineering News. Read too, Master Builders SA urges clarity on learners left in limbo by Ceta, on page 19 of Business Report of 5 February 2020
Woolworths denies employee was suspended for wearing ‘isiphandla’ News24 Wire reports that retail giant Woolworths has disputed claims that an employee at one of its stores, Mathapelo Nkopane, was suspended for wearing isiphandla – a traditional animal skin wristband. “We do not tolerate discrimination of any kind in our stores. Ms Nkopane was not suspended for wearing isiphandla,” Woolworths stated on Tuesday. Isiphandla is a sacred traditional wristband worn following a traditional ceremony until it falls off naturally. The company indicated that the employee’s suspension related to an “unrelated disciplinary matter”. “We have been engaging with Ms Nkopane on these issues in order to reach a resolution,” Woolworths stated. This came after it was reported that Nkopane had been suspended and was being investigated by the Woolworths store in Blairgowrie, Johannesburg, for wearing her cultural wristband since March last year, after she performed an ancestral ceremony. Nkopane has worked as an interactive coordinator at the store since February last year and allegedly got approval from her line manager to wear the wristband. Read the full original of the report in the above regard at The Citizen. Read too, Woolworths says employee was not suspended for isiphandla but 'other issues', at The Star
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