TOP STORY – LOOMING JOB LOSSES

With SA already battling record unemployment, Reserve Bank forecasts 370,000 job losses this year

Fin24 reports that according to early projections by the SA Reserve Bank (SARB), SA could lose about 370,000 jobs this year as a result of the national lockdown and initiatives to stop the spread of the coronavirus.  SA is already battling record-high unemployment, as well as weak business confidence and an ever-increasing sovereign debt burden.  In its biannual Monetary Policy Review, published Monday, the bank noted that job growth had already stalled in 2019, with the total number of employed people declining from 16.44 million at the end of 2018 to 16.34 million at the end of 2019.  "Preliminary estimates suggest South Africa could lose about 370,000 jobs this year, on a net basis, with business insolvencies increasing by roughly 1,600 firms as the economy contracts," the SARB indicated.  The central bank also said that the country's economy was likely to contract by between 2% and 4% this year, with growth unlikely to exceed 1% in 2021.  The unprecedented 21-day national shutdown has taken a heavy economic toll, with only essential businesses permitted to remain open.  Morne Mostert, Director of Future Studies at Stellenbosch University, believes that to limit damage, businesses would have to introduce flexible measures to contain costs following the lockdown period.  Such measures would include reducing fixed salaries, bonus cuts, forced leave, short-time, salary freezes, and eventually retrenchments.

Read the full original of the informative report in the above regard by Sibongile Khumalo at Fin24. Read too, Lockdown: Sarb foresees 370,000 initial job losses, 1,600 business insolvencies, at Moneyweb

EOH to cut pay of executives by 25% and staff by 20% to avoid job losses

Business Report writes that information technology group EOH is planning to slash its executives' pay by 25% in the next two months to cushion the impact of the coronavirus outbreak on its operations and to avoid potential job losses.  EOH has also proposed a 20% salary reduction across the board with the exception of those earning less than about R250,000 a year.  Chief executive Stephen van Coller said the board felt it necessary to take proactive steps to ensure EOH was prudent in these times of uncertainty.  “We want to ensure that we are protecting as many jobs as possible in the company as the country’s economy is not in a position to shed more jobs,” he indicated.  The measures are intended to be implemented on pay day this month, but the IT group is still consulting with its employees about the proposed cuts.  Van Coller estimates that the company would finalize the consultations this Thursday.  EOH has just completed 12 months into its anticipated two-year turnaround plan.

Read the full original of the report in the above regard by Sandile Mchunu at Business Report. Read too, How will EOH's across-the-board salary cuts work? at Fin24

CORONAVIRUS CRISIS

UIF’s R30bn benefit for workers hit by lockdown finalised and ready for claims

BL Premium reports that the special Covid-19 lay-off benefit that will operate through the Unemployment Insurance Fund (UIF) was finalised on Tuesday when business, labour and government finally reached agreement on the scheme in Nedlac.  The scheme is the single biggest government initiative to provide relief to those in formal employment who will lose their income due to the lockdown.  The UIF has R30bn in immediately accessible funds drawn from its accumulated reserves to fund the scheme.  Business for SA (B4SA) said on Tuesday that the notices based on the agreement have been signed by Employment & Labour Minister Thulas Nxesi and await imminent gazetting.  The Covid-19 Temporary Employer/Employee Relief Scheme (Ters) is open to all employees who along with their employers are contributors to the UIF where the employer has closed operations and employees have lost their income as a result of the pandemic.  The amount of the benefit is based on a sliding scale of between 38% and 60% of earnings.  A floor and ceiling are in place, with the minimum monthly payment pegged at R3,500 in line with the minimum wage and the maximum at R6,730.  Employers will be allowed to supplement the benefits, which will be available for up to three months.  The employer is required to pay the benefit to employees within 48 hours of receiving the monies from the UIF.

Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only)

Santaco aims for lockdown compensation of R250 a day for taxi drivers

News24 reports that the SA National Taxi Council (Santaco) is aiming at compensation of R250 a day for taxi drivers for the losses they are suffering during the country's 21-day coronavirus lockdown.  "We recognise that our members are losing income and their livelihood is severely compromised, therefore we established this fund that will cushion the blow to our members: taxi owners, drivers, rank managers, queue marshals and taxi associations workers," Santaco president Phillip Taaibosch said at a briefing on Tuesday.  The independent relief fund will be managed by SkX and members of taxi associations will have to apply for the funding via a portal.  "The claims will differ from one province to another but the driver will receive plus-minus R250 a day for the period of the lockdown.  The compensation might not be 100% but it is just to ensure you are able to survive,” Taaibosch indicated, adding that they would ensure that owners and office staff would get fair compensation, regardless of the complexity of them belonging to different associations.  Anyone can donate to the relief fund, according to Santaco, which estimates that the industry will need about R3.5 billion to provide relief to about 250,000 taxis that operate on the roads.  Santaco will announce when the application process opens.

Read the full original of the report in the above regard by Canny Maphanga at News24. Read too, Taxi industry launches R3.5bn Covid-19 relief fund, at BusinessLive

Health Minister Zweli Mkhize assures health workers of protection against Covid-19

BL Premium reports that Health Minister Zweli Mkhize moved on Tuesday to assure health-care professionals that they would have all the equipment they needed to protect themselves against Covid-19.  He promised that no-one would be forced to work without proper gear.  His remarks came as the National Education, Health and Allied Workers’ Union (Nehawu) approached the Labour Court seeking to compel the health department to "meaningfully engage" with its members to ensure they have the right equipment and ensure that no-one was compelled to work without it.  The matter had been expected to be heard on Tuesday, but was delayed.  "No member of staff will ever be forced or harassed to go and work where they don’t feel they are properly protected," the minister stated, adding that "We want to assure all unions and staff that our health-care workers’ safety [is] of paramount importance."  Mkhize was speaking an event to mark the arrival of the first consignment of protective equipment procured from suppliers in China.  He indicated that provincial health departments had been encouraged to engage with unions every fortnight so that safety issues could be raised.

Read the full original of the report in the above regard by Claudi Mailovich and Tamar Kahn at BusinessLive (paywall access only). Read too, Nurses fear for their safety as Covid-19 gear shortages hit hospitals, at SowetanLive. And also, Health workers are our primary soldiers in coronavirus fight, they have to be safe, says Mkhize, at News24

Epidemiologist to investigate Covid-19 outbreak at St Augustine's hospital in Durban

TimesLIVE reports that acclaimed epidemiologist Prof Salim Abdool Karim will lead an investigation into the outbreak of the coronavirus at St Augustine's hospital in Durban.  Netcare management on Wednesday moved swiftly to deny that medical staff and employees at the hospital — where 66 people have tested positive for Covid-19 — were not given appropriate personal protective equipment.  In response to health minister Zweli Mkhize’s announcement and concern at the situation at the hospital on Tuesday, Netcare CEO Dr Richard Friedland said the hospital was “deeply saddened that, despite our very best efforts and precautions, there have been a total of four Covid-19-associated deaths” there.  Friedland advised that a number of measures have been implemented at the hospital including sanitisation, swabbing of almost 2,000 employees and working with Prof Karim to investigate the underlying cause and nature of the outbreak.  He said contrary to certain misleading claims, staff members and doctors at the 464-bed hospital — regarded as one of the flagship private hospitals in the country — had been provided with appropriate personal protective equipment (PPE).

Read the full original of the report in the above regard by Yasantha Naidoo and Lwandile Bhengu at TimesLIVE. Read too, Close down St Augustine's hospital immediately, says union, after 66 people test positive for Covid-19, at TimesLIVE

On visit to Roodepoort testing site, Joburg mayor hears about minimal resources for healthcare workers

News24 reports that Johannesburg mayor Geoff Makhubo visited a Covid-19 testing site at District C in Roodepoort on Tuesday, where he heard concerns over minimal resources for healthcare workers.  The district has four testing facilities and one of its challenges is a shortage of sanitisers, masks and personal protective equipment (PPE) for trained healthcare workers.  Makhubo heard that another issue was absenteeism as staff members at the four testing sites "panicked" over the minimal resources.  The four clinics have tested 1,375 people so far, with none testing positive, clinic manager Stella Uys advised.  Uys said some of the other challenges included physical distancing at taxi ranks, isolation for suspected persons who lived in one-room shacks with family members, transportation for swabs to conduct testing, and transport for referred patients.  Speaking shortly after the site visit, Makhubo said they expected containers to come in to replenish the clinic stock in all of the metro’s testing sites.

Read the full original of the report in the above regard by Lizeka Tandwa at News24

Old Mutual provides R4bn in free insurance coverage to 430,000 health-care workers

BusinessLive reports that insurance group Old Mutual is providing R4bn worth of free cover for the 430,000 healthcare workers on the front-lines of the Covid-19 outbreak.  The cover is not a product nor a policy, and no premiums will be recovered from it.  Effective from 1 April to 31 December, the cover includes a R10,000 sum, which will becomes payable in the event of death of qualifying healthcare workers.  The intention is to provide relief to families who may have to deal with the tragic loss of a loved one during that period.  The cover has no exclusions, and will include death related to any cause.  It will be available to qualifying categories of members who are registered with the Healthcare Professionals Council of SA (HPCSA) as well as all registered practitioners of the SA Nursing Council (SANC).

Read the full original of the report in the above regard by Karl Gernetzky at BusinessLive. Read too, Some grace offered to those unable to pay life cover premiums, at BusinessLive

Support for ailing tourism sector will be guided by BEE, minister insists

BusinessLive reports that tourism minister Mmamoloko Kubayi-Ngubane has insisted that support for distressed firms and establishments in the sector would be guided by empowerment (B-BBEE) codes.  Her approach could disqualify many companies from accessing government funding to mitigate the effect of the coronavirus.  The crisis has brought tourism activity to sudden stop across the globe as governments implement extreme measures to curb the spread of the disease.  President Cyril Ramaphosa announced a 21-day lockdown in March.  Kubayi-Ngubane said on Tuesday as a first phase to support small and medium-sized players in the sector, a R200m Tourism Relief Fund had been established to provide a one-off capped grant assistance to ensure sustainability of the sector.  The fund targets tourism establishments such as resort properties; bed and breakfasts (B&Bs); guest houses; lodges and backpackers; restaurants (not attached to hotels); conference venues (not attached to hotels); car rental companies; tour operators and travel agents.  Capped at R50,000 per entity, the grant funding can be used to subsidise expenses towards fixed costs, operational costs, supplies and other cost items.  Kubayi-Ngubane said disregarding BEE requirements would be tantamount to breaking the law.  But, DA MP and trade and industry spokesperson Dean Macpherson has argued that BEE requirements should be suspended during the crisis.

Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive

With more than 3‚500 applications for sports, arts and culture relief programme, deadline not extended

BusinessLive reports that more than 3‚500 applications have been made for the R150m relief fund set up by the Department of Sports‚ Arts and Culture.  The applicants can expect just more than R42‚000 per application.  The department said in a statement on Tuesday that applications had closed and added it would not extend the deadline that ended at midnight on Monday.  The Democratic Alliance (DA) had on Monday asked for an extension until after the national lockdown‚ indicating that there had been technical issues with the supplied e-mail address.  The department said in a statement:  “The department was not in a position to extend the deadline further due to the urgency of the situation.  This timeline takes into account that the funding is for a three-month period until the end of June 2020 … Extending the deadline to April 17 would seriously compromise this process as well as the timelines required for implementation.”

Read the full original of the report in the above regard by David Isaacson at BusinessLive

Saftu’s Zwelinzima Vavi discharged from hospital after contracting Covid-19

TimesLIVE reports that labour movement leader Zwelinzima Vavi has been discharged from hospital and is resting in isolation at home after having contracted Covid-19.  Vavi, who is general secretary of the SA Federation of Trade Unions (Saftu|), wrote in a tweet on Tuesday that he would be tested again on Monday, but he remained optimistic.  “Thank you all of you for so much love and solidarity!  My wife and 7-year-old boy has shown no symptoms whatsoever,” he indicated.  Last week Thursday, Vavi announced that he had tested positive for the highly infectious virus.  He also released a video of himself in which he was sweating profusely.

Read the original of the report in the above regard by Iavan Pijoos at TimesLIVE

Other internet posting(s) in this news category

• Government is still assessing effectiveness of lockdown, at BusinessLive
• Ramaphosa says scientific analysis of whether lockdown is working is expected within days, at News24
• Desperate small businesses scramble for Rupert and Oppenheimer lifelines, at BusinessLive
• City of Joburg suspends issuing permits to informal traders, at EWN
• Soshanguve taxi driver arrested for violating lockdown regulations, at EWN

OCCUPATIONAL HEALTH & SAFETY

Farmworkers' groups call for better transport measures after deadly crash kills nine and injures 18

EWN reports that farming organisations have called on authorities to implement stricter measures in transporting farmworkers after nine workers died in a crash.  Two trucks collided on the N1 between Touwsrivier and De Doorns in the Western Cape on Tuesday morning.  Eighteen people were injured and taken to hospital.  Police are investigating a case of culpable homicide.  Women on Farms said that commercial agriculture relied primarily on cheap seasonal labour, with workers usually transported in overcrowded, poorly-fitted and low-sided open trucks.  The group's Carmen Louw said that government must introduce and enforce strict provisions for the safe and dignified transport of workers.  She stated that farmworkers should be transported in taxis.  The Rural and Farmworkers Development Organisation's Billy Claasen agreed, adding that the use of open trucks was dangerous as farmworkers were seated without any protection such as seatbelts.  “We asked government in the past to put a stop to these kinds of things and to ask bus and taxi operators to transport farmworkers but nothing has been done about it," he lamented.

Read the full original of the report in the above regard by Kaylynn Palm at EWN

MINING LABOUR

Eastplats gets permission to restart work under essential services order

BusinessLive reports that Eastern Platinum (Eastplats) has received permission to restart tailings retreatment at its Crocodile River Mine in the North West.  A phased restart will begin immediately, but at a reduced capacity, with Eastplats saying it remained committed to the government's direction to prevent the risk of spread of Covid-19.  The group indicated:  “Eastplats has produced risk assessments and adopted appropriate procedures to maintain a safe workplace for its employees and the communities in which it operates.”  The group is conducting tailings retreatment at its previously mothballed Crocodile River Mine near Brits in the North West to extract chrome, and is also extracting platinum group metals (PGM) concentrate.  The director-general of the department of mineral resources and energy issued the essential services order, which allows Eastplats to transport and export the chrome concentrate produced by the project.

Read the full original of the report in the above regard by Karl Gernetzky at BusinessLive

Gold Fields promoting widespread human welfare during national lockdown

Mining Weekly reports that Gold Fields, which has placed its South Deep gold mine in Gauteng on care and maintenance for the 21-day national lockdown period, is promoting human welfare funding across a number of fronts during the Covid-19 crisis.  South Deep, the Westonaria mine with a 70-year life, will be paying its employees R96-million in wages during the 21-day period.  At the same time, the temporarily closed mechanised gold mine will continue to pay small, medium-sized and microenterprise service providers and small-scale contractors R22-million for the period.  With the support of the Gold Fields management, it will also be making a R15-million contribution to the Solidarity Fund announced by President Cyril Ramaphosa.  The mine is moreover working closely with local government and the health authorities to make available limited isolation and medical care facilities, should these be required.  Gold Fields executive VP Martin Preece also commend the work currently being done by personnel engaged in essential services at South Deep during the lockdown.

Read the full original of the report in the above regard at Mining Weekly

RESTRUCTURING / RETRENCHMENTS / COMPANY JOB CUTS

Some 2,300 Telkom employees opt for voluntary severance packages

Fin24 reports that around 2,300 Telkom employees have opted for voluntary severance packages since the start of a business restructuring process early this year.  In January, the telecoms company announced that some 3,000 jobs were on the line, in a move that drew heavy criticism from labour unions.  Spokesperson Nomalungelo Faku said on Tuesday:  "We started consultations a while back, and as part of that process, there was an option of taking voluntary early retirement."  Noting that the people who had opted for voluntary severance packages numbered around 2,300, Faku added:  "These are people who were nearing retirement age... they voluntarily left."  She said the workers had taken the packages before the coronavirus lockdown period kicked in and they had already left the company.  Faku advised that consultations regarding the restructuring process were still ongoing, but the talks facilitated by the CCMA had been suspended due to the lockdown period.  The company employs approximately 9,000 people.

Read the full original of the report in the above regard by Sibongile Khumalo at Fin24