In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Thursday, 9 April 2020.
|
Nehawu withdraws case against state over personal protective equipment for front-line health-care workers Reuters reports that the National Education, Health and Allied Workers' Union (Nehawu) has withdrawn a court case against the government over shortages of personal protective equipment (PPE) for front-line health workers treating patients with Covid-19. The union had launched the Labour Court case to force the government to ensure adequate supplies of vital equipment such as masks and gloves. After meeting with the health minister, the union indicated: “We have taken a decision to discontinue with the legal course of action since there is now a commitment to address our concerns.” Among commitments from the government was that no worker would be forced or intimidated to work without proper protection, and that stocks of masks, gloves and goggles should be scrutinised to determine whether all front-line workers were catered for. Read the full original of the report in the above regard by Wendell Roelf at BusinessLive Textile Covid-19 agreement extended to other employers and employees in sector BusinessLive reports that employment and labour minister Thulas Nxesi has extended an agreement, reached by textile industry stakeholders for payment of Unemployment Insurance Fund (UIF) benefits to workers affected by Covid-19, to other parties. The agreement will allow about 80,000 workers in the industry to continue receiving their salaries during the 21-day lockdown. In a notice published in the Government Gazette last week, Nxesi made the collective agreement binding on the signatory parties as well as the other employers and employees in the industry, with effect from Monday until February 28 2022. The agreement provides for the payment of workers to be made up of UIF monies and employers’ funds. The National Bargaining Council for the Clothing Manufacturing Industry will be the institution for the distribution of UIF payments to workers through company payroll systems. The signatories to the agreement include the SA Clothing and Textile Workers’ Union (Sactwu), the Apparel and Textile Association of SA (Atasa), and the newly named SA Apparel Association (SAAA). Nxesi has appealed to other sectors, including banking, “to agree to this arrangement”, as the department wants to move away from the traditional model of claiming through labour centres. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive Bus sector wants to assist UIF in distribution of unemployment insurance benefits BusinessLive reports that bus companies in the SA Road Passenger Bargaining Council (Sarpbac) have called on the Minister of Employment & Labour, Thulas Nxesi, to extend to non-parties an agreement for payment of Unemployment Insurance Fund (UIF) benefits to workers in the sector affected by the coronavirus. The organisations in the Sarpbac are the SA Bus Employers Association (Sabea), and the Commuter Bus Employers Organisation (Cobeo), representing bus companies including TransLux, City to City, Greyhound, Mega Bus & Coach, Putco, and Golden Arrow, among others. Solomon Mahlangu of the SA Transport and Allied Workers’ Union (Satawu) said on Monday that the agreement had been concluded. “All that’s left is for the agreement to be implemented and extended to non-parties,” he indicated. UIF spokesperson Makhosonke Buthelezi stated: “I know some agreements have gone to the DG [director-general Thobile Lamati] to sign. I will know by Tuesday which ones those are.” On Monday, Sarpbac general secretary Gary Wilson confirmed that the council had sent a memorandum of agreement to the UIF for ratification. “We are now waiting for them to send us an acceptance letter ... in the main we are committing ourselves, on behalf of the industry, to assist the UIF to distribute funding to companies to pay employee benefits,” said Wilson. About 35,000 employees in the bus industry stand to benefit from the agreement. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive Restaurants’ association calls for lockdown relief plan from government EWN reports that pressure is mounting for the government to outline its long-term sustainability plans for sectors suffocating under the national coronavirus lockdown. The Restaurants Association of South Africa wants the state to provide a proper relief plan for the sector. The extended lockdown is predicted to take its toll on the food and restaurant industry with thousands facing the prospects of unemployment. The association's Wendy Albert says government and banks need to introduce measures including grants to reduce the blow from the lockdown. “Restaurants are in a dire situation and even if we reopen, we will have half of our work force so we really need to have a plan on how we move forward during the lockdown,” she warned. Read the original of the report in the above regard by Veronica Mokhoali at EWN. Read too Tough times in store for some SA restaurants as job cuts, possible closures loom, at Fin24 Twenty-six confirmed Covid-19 cases at East London prison, most of whom are warders TimesLIVE reports that there are 26 confirmed coronavirus cases at the East London Correctional Centre, three of whom are female inmates and 23 of whom are officials working at the Westbank centre. This was confirmed by Justice Minister Ronald Lamola, who visited the centre on Sunday. Lamola, Eastern Cape premier Oscar Mabuyane and health MEC Sindiswa Gomba were at the prison after a mass testing and screening process was undertaken at the facility. This followed the revelation a week ago that an official had tested positive for Covid-19. Then on Thursday night, correctional services department spokesperson Singabakho Nxumalo advised that a second official had tested positive. As a result of the two cases, Nxumalo said 73 other officials had since been tested for the virus. Thirty-two of them have been asked to self-isolate at home seeing that they came in contact with the first positive case. Read the full original of the report in the above regard by Sandiso Phaliso at TimesLIVE. Read too, Correctional services to roll out mass screening and testing of prison inmates, at BusinessLive. And also, Covid-19 hits prison system, at Mail & Guardian Electronic food voucher relief plan set up for waste reclaimers during national lockdown BusinessLive reports that the Department of Environment, Forestry and Fisheries has teamed up with the packaging industry to provide food vouchers to waste reclaimers to cushion them from the hardships brought by the national lockdown. The local packaging industry, including Packaging SA, Mpact and Fibre Circle, has offered financial support worth R785,000 to assist waste pickers during the lockdown period. The department indicated on Monday that almost 4,000 waste pickers would receive electronic food vouchers via their cellphones during the week. The electronic voucher system was being used to ease the logistics of distributing food parcels across all provinces. The African Reclaimers Organisation and the SA Waste Pickers Association are developing a list of beneficiaries who will receive the food vouchers. Recipients can reclaim the vouchers at food retailers Shoprite, Pick n Pay and Checkers as well as Dis-Chem and Clicks for essential items. Collection of recyclables is not defined as an essential service. Read the full original of the report in the above regard by Odwa Mjo at BusinessLive Cosatu wants Western Cape education MEC removed for handling of school feeding scheme News24Wire reports that Cosatu in the Western Cape said it was “shocked and highly disturbed” by the way the education MEC Debbie Schäfer has handled the school feeding scheme in the province and it has called for her removal. Schäfer announced on Monday that her department had been allocated emergency funding to support pupils who ordinarily received meals at school during terms. The labour federation said: “We condemn her conduct in the strongest possible terms and herewith support the call by the South African Democratic Teachers’ Union (Sadtu) for her immediate removal as MEC of education in this province.” It claimed it could not allow children to risk being infected with Covid-19 while there were other ways and means to feed them. The federation also called for Schäfer to be charged for contravening the lockdown regulations. Schäfer reacted that Sadtu’s call showed how out of touch the union was with what was happening on the ground and noted that there had been an “overwhelmingly positive response to our initiative”. She explained further that: “We have issued detailed protocols to schools for the implementation of this essential work to ensure that social distancing is maintained and that our learners and staff are kept safe.” Read the full original of the report in the above regard at The Citizen. Read too, Motshekga urged to restore school feeding schemes during lockdown, at News24 FirstRand executives latest to donate 30% of their salaries to government’s Solidarity Fund EWN reports that top executives at financial services company FirstRand on Saturday were the latest business leaders who committed to forgo 30% of their salaries for three months to contribute money to the government’s coronavirus Solidarity Fund. The campaign was started after government leaders, including President Cyril Ramaphosa, last week agreed to slash their salaries by 33% to contribute funds towards the fight against the Covid-19 pandemic. The financing is targeted at enhancing healthcare facilities and supporting small businesses, among other aims. FirstRand announced that its CEO Alan Pullinger, CFO Harry Kellan, and COO Mary Vilakazi would have their salaries reduced in line with the pledges by top government officials. Other leaders who have joined the pact include Nedbank CEO Mike Brown, Ekurhuleni mayor Mzwandile Masina and his executive and Business Unity SA and Black Business Council leaders and members. Read the full original of the report in the above regard by Theto Mahlakoana at EWN. Read too, Parties, public reps pledge to take salary cuts to donate to Covid-19 fund, at EWN. And also, Rhodes University vice-chancellor takes pay cut to donate to Solidarity Fund, at TimesLIVE Other internet posting(s) in this news category
Public servants still in limbo over wage increases due in April in terms of 2018 agreement BusinessLive reported last week that public servants were still in limbo over whether they would receive salary increases in April in line with a standing wage agreement. The government and organised labour have been at loggerheads over the implementation of the final year of a three-year wage agreement for public servants signed in 2018. This was after finance minister Tito Mboweni took a scalpel to the public wage bill in the 2020/2021 budget and penciled in huge cuts. The government has made a revised offer of a 4.4% pay increase for workers on employment levels one to eight, and no increases for levels nine to 16, but this has been rejected. While the Public Servants Association (PSA) has reserved its rights if the original 2018 agreement is not implemented, and Cosatu’s public-sector unions have declared a formal dispute at the Public Service Co-ordinating Bargaining Council (PSCBC), the unions are still none the wiser as to what will be paid to their members come 15 April, when, if implemented, the increases as from 1 April will be paid. Reuben Maleka of the PSA, said on Thursday that it seemed unlikely the deal would be implemented for April as the state had written to indicate that it hoped the PSA “will consider coming back to the council to continue engagements through council processes”. Read the full original of the report in the above regard by Claudi Mailovich at BusinessLive Public sector unions prepare for legal action over salary increases due in April BusinessLive reports that public sector unions have indicated that if necessary they will be mounting a legal challenge this week to force the government to implement a wage increase for public servants in April. The first batch of April salary payments will be made on Wednesday and the unions said if the government does not stick to the 2018 wage agreement signed by parties in the Public Service Co-ordinating Bargaining Council (PSCBC), they will resort to the courts. In the 2018 deal, the government agreed to pay employees on levels 1 to 8, comprising general workers and support staff, an increase of CPI plus 1% and levels 9 to 16, made up of higher level staff, CPI plus 0.5%. According to Cosatu chief negotiator Mugwena Maluleke, the government will not be implementing any wage increases, because “we haven’t received any circular from the employer. The dispute is still on the table ... It will be resolved at the dispute level.” Reuben Maleka of the Public Servants Association said: “We haven’t gotten any latest information from the employer. It looks like the employer has not initiated any salary increases. We are taking the matter to court by Tuesday or Wednesday.” Fedusa’s Riefdah Ajam said they were eagerly waiting for salary adjustments this month as per the agreement, but legal teams “are ready to take the government to court should it renege on the agreement.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive Now is not the time for government to squabble with public servants over wage increases Carol Paton writes that now is not a good time for the government to pick a fight with public servants. Nevertheless, when a good proportion of SA’s 1.2-million public servants wake up on Wednesday, they will notice that they have not been paid their annual wage increases as provided for in 2018 in a three-year wage deal. They will learn this not from their employer, which has not yet communicated with them about its intention, but through their payday banking notifications, which for most will be on the 15th of the month. While the rest of the world applaud their front-line health workers daily, SA will tell doctors, nurses, teachers and police that their Covid-19 sacrifices — which have only just begun — are not that appreciated. Now, more than ever, public servants are being asked to put their lives on the line. But the political mismanagement of the public sector wage negotiations had already planted the seeds of discontent and anger among employees. While the writer notes that there is certainly a case to be made to slow wage growth in the public sector, the case has not been made to the employees themselves. Corruption, waste and plunder of public resources have endangered public finances. Now they are being asked to pay for the excesses of the political elite. Large numbers of health workers and police will be required to implement government’s crisis strategy going forward. While President Cyril Ramaphosa has been very effective in his communication with the public, it is important that he soon speaks to the state’s employees to inspire them too. Read the full original of Carol Paton’s opinion piece at BusinessLive (paywall access only)
Amcu wants heightened safety regulations to apply across mining before returning to work BusinessLive reports that as the mining industry debates the consequences of the 21-day lockdown and its possible extension, the Association of Mineworkers and Construction Union (Amcu) has suggested heightened safety regulations to apply across the sector to clear the way for restarting mines. It has proposed a joint task team with representatives from the Department of Minerals & Energy, the Minerals Council SA (previously called the Chamber of Mines) and unions to agree on set safety standards. Amcu president Joseph Mathunjwa indicated: “As Amcu, we will not support any ramp-up of operations at mines before these regulations are agreed upon and gazetted accordingly. We can simply not afford to let mineworkers die due to a lacking and uncoordinated approach to this pandemic by the individual mines.” Amcu wants a “specific and enhanced standard of personal protective equipment (PPE) [to] be made compulsory for all mining operations, in combination with strategies to mitigate risk and manage identified infections.” Read the full original of the report in the above regard by Allan Seccombe at BusinessLive. Read too, Mines begin the long, hard slog of getting production going again, at BusinessLive Implats asks some workers to return as it seeks leave to restart limited operations Fin24 reports that some workers at Impala Platinum (Implats) have been called to return to work on Tuesday as the mining house seeks leave to restart some of its operations from Friday. The company announced in March that it intended applying to continue with operations outside of the essential care and maintenance allowed during lockdown. The group, which at the time said it wanted permission to conduct "limited smelting operations", confirmed on Sunday that it had sent SMSes to some of its employees last week asking them to return to work. "This was done in consultation with our stakeholders and in line with all the statutory measures introduced by the government," said the group's Alice Lourens. She indicated that Implats continued to pay all its employees – those currently doing essential maintenance work and those at home – during the national coronavirus lockdown. “We are awaiting the announcement of these provisions [in the new lockdown regulations] and will shape our plans to restart the business accordingly in full support of the measure announced by the government to fight the spread of the virus. This may or may not include provisions to allow some mining activity to resume during this period," said Lourens in a written response. Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24 Sibanye-Stillwater executives donate third of salaries to Covid-19 fund, to re-start SA mines on 14 April Miningmx reports that Sibanye-Stillwater was the first of SA’s mining companies to follow in the steps of President Cyril Ramaphosa by donating a third of its executive team’s salaries to the Covid-19 Solidarity Fund. The fund was established by Ramaphosa to help combat Covid-19 and to provide economic support to people most heavily affected by it. Sibanye’s donations, which will include that of the group’s CEO Neal Froneman, will take place for the next three months. The decision to make the contribution was unanimous, the company said. It also said it had received approval for resumption of limited operations at its SA gold and platinum group metal (PGM) mines from 14 April “subject to the implementation of agreed protocols to address Covid-19 related health and safety risks”. The mines had been placed on care and maintenance from 25 March in line with the government’s decision to implement a 21-day lockdown in an effort to stop the spread of Covid-19. On 9 April, the lockdown was extended by another two weeks. The company employs about 80,000 people at its PGM and gold operations in SA. Details of how the SA mining sector is likely to emerge from the lockdown are due in the coming week. Read the full original of the report in the above regard by David McKay at Miningmx. Read too, Sibanye-Stillwater says it can resume limited mining in SA, at Moneyweb Other general posting(s) relating to mining
Employees can get little tax relief for working from home Moneyweb writes that many South Africans had to set up a home office when the country went into lockdown and now want to find out about the tax implications in respect of expenses they have been incurring. According to Joon Chong of Webber Wentzel, there are limited circumstances under the Income Tax Act that allow salaried employees to claim deductions for expenses incurred while providing a service to their employers. An individual who earns remuneration from an employer can only claim home office expenses if their home office is equipped for and is “regularly and exclusively” used to work for the employer for which they earn remuneration. At least 50% of their remuneration must be variable, such as commissions or bonuses. If individuals have less than 50% of remuneration as variable payments, they can still claim home office expenses if they spend more than 50% of their working hours working from the home office. Jean du Toit of Tax Consulting SA says employees who normally work at the premises of the employer will not qualify for the deductions during the lockdown. Unless the lockdown is extended for more than six months, most employees will not be able to claim any of the home-office expenses allowed under the Income Tax Act, he explained. In the short term it may be easier for employees who have to work from home during the lockdown to claim home office expenses from their employer on a “reimbursive basis” with supporting invoices. Costs which can be claimed include fibre connectivity cost, cell phone costs, stationery, and computer equipment, if these have been incurred for use mainly in the employer’s business. Read the full original of the report in the above regard by Amanda Visser at Moneyweb
Old Mutual, Liberty temporarily drop insurance cover for retrenchments EWN reports that Old Mutual last week announced that it had temporarily closed its retrenchment cover product so it could determine a fair and reasonable price once the coronavirus (Covid-19) pandemic had been factored in. Liberty also announced the suspension of its disability and retrenchment cover, citing uncertainty related to the Covid-19 and the difficulties in assessing the potential risks in respect of new applications. Old Mutual’s John Kotze explained: “We use past experience to determine a fair and reasonable price for that cover. Going forward, we have no idea what the reasonable experience is that we will encounter as a result of Covid-19.” Kotze indicated that they were expecting an increase in retrenchment cover claims and that “once we have a sense of that that will provide us with an opportunity to reopen that product at a new fair and reasonable price.” Old Mutual and Liberty gave assurances that they were in a position to pay all valid claims for existing retrenchment cover customers. Read the full original of the report in the above regard by Kgomotso Modise at EWN Naamsa survey shows automotive industry might have to lay off 10% of workers due to lockdown Reuters reports that SA’s automotive industry might have to lay off up to 10% of its workforce because of the national coronavirus lockdown, according to an industry-wide survey conducted by the National Association of Automobile Manufacturers of SA (Naamsa). The survey, dated 8 April before President Cyril Ramaphosa extended the lockdown by two weeks, estimated that the initial 21-day national lockdown could lead to job losses of between 1% and 10%, which could rise to between 21% and 30% upon an extension until the end of May. The survey was based on a questionnaire that the government issued to a range of industries to gauge the impact of the lockdown or any extension thereof. The Naamsa survey covered the entire automotive industry, which employs about 468,000 people. The vast majority of those jobs are in the retail sector. Manufacturing accounts for about 110,000 of the jobs. The survey also estimated that only some 51% to 60% of the industry's payroll would be paid at the end of April, and between 11% and 20% of small or medium-sized businesses could close. Read the full original of the report in the above regard by Emma Rumney at BusinessLive
Cancellation of school holidays to catch up lost time 'not concrete', says Sadtu News24 reports that Mugwena Maluleke, general secretary of the SA Democratic Teachers’ Union (Sadtu), says that suggestions that school holidays could be scrapped for the remainder of the year to make up for lost time are not concrete. Maluleke indicated: "There are many ideas floating around and we will be engaging with the education department on those ideas as well as sharing our own ideas." On Friday, Basic Education Minister Angie Motshekga said that one proposal under consideration by her department was cancelling school holidays to regain time lost in the 2020 academic year. Even before the lockdown started last month, President Cyril Ramaphosa announced schools would be closed to deal with the coronavirus outbreak. With the lockdown extended to 30 April, schools will be closed for more than six weeks. Motshekga's spokesperson, Elijah Mhlanga, said a team of experts was currently working on a plan on how schools would eventually be reopened. He advised that there was ongoing engagement between the union and the department, inclusive of ways to adjust the school calendar as well as changes that might be needed in the assessment of pupils. Read the full original of the report in the above regard by Nicole McCain at News24. Read too, Plan to salvage school year being hammered out, on page 4 of Sunday Times of 12 April 2020 Other internet posting(s) in this news category
Firms seek to cut back on contributions to employee retirement funds Business Times reports that companies representing thousands of employees have asked retirement fund administrators to allow them to reduce contributions to employee retirement funds. And as company revenues nose-dive as a result of the coronavirus lockdown, administrators expect the requests to ramp up over the coming weeks. Alexander Forbes reports that the administrator has had close to 100 employers asking to suspend or reduce retirement fund contributions. This is less than 10% of the employers who use funds administered by it, but the requests are an increasing trend. Sanlam Corporate Distribution says about 10% of the employers participating in Sanlam's umbrella retirement fund - mostly small ones - have already inquired about reducing contributions. Seshego Benefit Consulting also says about 10% of the employers to which his company is a consultant, with about 7,000 to 8,000 members, are considering a temporary cessation of contributions. Some employers have temporarily laid off employees on a no-work, no-pay basis, reducing their income and any retirement fund contributions and group life premiums calculated as a percentage of those earnings. But, appeals have been made to such employers to at least pay group life cover premiums as the failure to pay those premiums could have a devastating effect on families who might need to claim on this cover, say administrators, insurers and the Financial Sector Conduct Authority (FSCA). Read the full original of the report in the above regard by Laura Du Preez at BusinessLive
Nersa CEO Chris Forlee suspended pending probe BusinessLive reports that National Energy Regulator of SA (Nersa) CEO Chris Forlee has been suspended pending an investigation. This was confirmed on Monday by Nersa spokesperson Charles Hlebela, who said Forlee was placed on precautionary suspension by Mineral Resources & Energy Minister Gwede Mantashe after an investigation by the Nersa board into allegations of impropriety. Executive head of corporate affairs Nomalanga Sithole has been appointed as acting CEO. Forlee has been CEO since January 2017 and at Nersa for more than five years. Read the original of the report in the above regard at BusinessLive
|
Get other news reports at the SA Labour News home page