Today's Labour News

newsThis 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.

news shutterstockIn our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 17 April 2020.


TOP STORY – CORONAVIRUS LOCKDOWN

Nxesi’s new directive further streamlines UIF’s Covid-19 relief scheme

Mining Weekly reports that Employment and Labour Minister Thulas Nxesi has made further changes to the directives governing the Unemployment Insurance Fund’s (UIF’s) Temporary Employee/Employer Relief Scheme (TERS).  This followed engagements with business and labour on the scheme at Nedlac.  The revised directive, dated 16 April, states that an employer is entitled to claim benefits for employees who have taken annual leave during the coronavirus lockdown period and that the employer may retain these amounts, provided that it credits the employee with leave days proportionate to the value of the benefit.  Business for SA (B4SA) has welcomed the amendment, as it means there is no need to reinstate leave and place employees on unpaid leave in order to claim.  The new directive also urges employers to pay employees the equivalent of their TERS benefits in advance in the event that the funds have not yet been received by the employer on their payment date.  Businesses claiming the benefits on behalf of affected employees are also no longer required to create a separate TERS bank account and payments will be made by the UIF into their existing bank accounts.  TERS benefits are available to all employees who, along with their employers, are contributors to the UIF and where the employer has closed its operations, or part of its operations, as a direct result of the Covid-19 pandemic.

Read the full original of the report in the above regard at Mining Weekly. Read too, Business and labour welcome revised Covid-19 relief fund regulations, at BusinessLive

Cosatu warns that lack of awareness of UIF’s benefits leaves workers affected by lockdown vulnerable

Fin24 reports that Cosatu is worried that there is a lack of awareness of the Unemployment Insurance Fund’s (UIF’s) benefits among employees who are vulnerable to job losses due to the coronavirus lockdown.  "We asked the department to do an awareness campaign to make people aware of the hotline.  We are very concerned that there is not enough [being done] to make sure that employers and workers are aware of the benefits and how to apply for them," the labour federation’s Matthew Parks said.  Cosatu met with government last week to express its misgivings at the rollout of UIF benefits and their accessibility, with the federation claiming some workers could not apply for benefits online and help centres had too few staff.  The SA Reserve Bank has warned that as many as 370,000 jobs could be lost this year as a result of the enforced lockdown.  Well-known labour analyst Andrew Levy noted that the more than R100 billion surplus in the UIF could soften the blow for employees, but this depended on how long the lockdown and the pandemic lasted.  He stressed that this assistance would only apply to those who have been in employment and contributed to the fund.

Read the full original of the report in the above regard by Khulekani Magubane at Fin24

Use the tax system to pay out lockdown benefit, says Covid-19 Economists Group

BL Premium writes that with work stopped for millions by the coronavirus lockdown, the quickest and simplest way to provide wage support to employees in the formal economy would be for the SA Revenue Service (Sars) to use the tax system to pay employers a portion of workers’ wages automatically.  This recommendation comes from the Covid-19 Economists Group, a network of economists who are supporting efforts to deal with the economic effects of the pandemic.  Employers, labour and the government have negotiated a special Covid-19 benefit to be paid through the Unemployment Insurance Fund (UIF) for employers to disburse.  But there is deep concern over the capacity of the fund to handle the administration of the benefit.  In a paper written by Economists Group convener Miriam Altman, it is recommended that the benefit be paid out to employers automatically on the assumption that all companies are affected by the lockdown.  Where companies are not affected or did not shut entirely, the payments would be clawed back through tax returns.  The importance of acting quickly to keep firms afloat and keep employees tied to their firms cannot be emphasised enough, Altman stressed.  She further pointed out:  “A payment across the board has some advantages.  It is rapid and creates certainty for the firm and for employees and gives them faith of returning to some normalcy; and it is stimulatory as workers in lower tier of the labour market will fully spend the amounts, mostly on domestically produced goods.”

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

Number of Covid-19 cases at prisons approaching 100 mark as of Friday

TimesLIVE reported on Friday that the number of Covid-19 cases among prisoners and Department of Correctional Services (DCS) officials was fast approaching the 100 mark.  DCS spokesperson Singabakho Nxumalo confirmed that there were nine new cases of the illness confirmed, all in respect of departmental officials.  This meant that there were 94 cases in total, 56 of them inmates.  The good news was that all of the 27 inmates tested at the St Alban's prison in the Eastern Cape — where officials have tested positive — were negative.  Detailing the nine new cases, Nxumalo said that one official was at the Kutama Sinthumule private facility in Limpopo, four at the Warmbokveld facility in the Western Cape, and that two additional cases were reported at both the East London and Worcester facilities, which had already seen positive cases.  East London remains the only correctional facility among SA’s 243 centres to have inmates testing positive for Covid-19.

Read the full original of the report in the above regard at TimesLIVE

Cape Town shuts some permit application offices after official tests positive for Covid-19

BusinessLive reports that the City of Cape Town has closed some of its permit application offices after a staff member tested positive for Covid-19.  The offices are tasked with issuing permits during lockdown for informal (uncooked) food trading and spaza shops.  The City said on Thursday:  “A staff member who has been assisting at some of these facilities has tested positive for Covid-19 after contracting it from a family member.  The staff member is in quarantine.”  As part of precautionary measures, the following permit offices will be closed until further notice: Strand Sub-council office; Somerset West municipal office; Kuils River Sub-council office; and the Khayelitsha Municipal Office and Training Centre.  The closures seek to protect both employees and the public from potential Covid-19 infections.  Measures underway include the isolation of other staff members who have had contact with the official who tested positive, as well as the deep cleansing of the facilities before they can reopen.

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

Twenty-four employees at Boksburg Dis-Chem test positive for Covid-19, store reopens with new staff complement

News24 reports that as of close of business on Friday, a total of 24 staff members at the Dis-Chem branch at Retail Park in Boksburg had tested positive for Covid-19.  "All of these are symptom free," said the pharmacy group’s Lizeth Kruger following the testing of 132 employees.  According to Kruger, the first positive diagnosis was made on 9 April, after which the Department of Health (DoH) protocol, which requires all close contacts be put in isolation and screened, was followed.  "The store was professionally cleaned.  In addition, it took the precaution of testing the entire staff complement and any with symptoms were self-isolated immediately.  Three additional staff members, who were both asymptomatic, then tested positive and were immediately quarantined in line with Department of Health protocol," Kruger indicated.  All were tested again on Thursday, and an additional 20 asymptomatic staff tested positive.  The entire staff complement was then placed into self-isolation.  The repeat test was not a DoH requirement, but a step taken by the company as an additional precaution.  The store was reopened on Friday with a totally new staff complement after further professional cleaning.

Read the full original of the report in the above regard by Tammy Petersen at News24

Pick n Pay’s Mitchells Plain store that breached lockdown regulations by not observing social distancing reopened

EWN reports that a Pick n Pay store in Mitchells Plain shut down by government for failing to comply with lockdown regulations has reopened.  Officials from the Department of Employment and Labour (DEL) closed the store and issued management with a prohibition notice on Friday morning after it found the store to be unsafe and in contravention of health and safety standards.  Social distancing was not being observed, and the shop was overcrowded most of the time.  Officials and police escorted both workers and customers from the premises.  The DEL’s chief provincial inspector David Esau said store management had to provide enough evidence that processes had been put in place to address all the concerns raised.  The supermarket has since rectified the issues and has been allowed to resume trading.

Read the original of the short report in the above regard by Jason Felix at EWN

Khayelitsha SuperSpar, where two employees tested positive for coronavirus, gets green light to reopen

News24 reports that the Khayelitsha SuperSpar has been visited by the Western Cape Department of Health following two cases of Covid-19 among its staff.  In a social media post, the store advised that it had been given the all clear to open and would do so on Monday.  The store closed on Thursday.  "All the necessary protocols and procedures have been followed and completed as requested by the Western Cape government and the Department of Health," the post indicated.  The two employees who tested positive have not been on duty since 7 April and 14 April, respectively.  Both tested positive on Thursday.  Colleagues who had been in contact with the two employees, and high-risk staff members, are isolating.  In addition, all staff will be tested and the store will be decontaminated twice a week.

Read the full original of the report in the above regard by Nicole McCain at News24

Other internet posting(s) in this news category

  • McKinsey warns of a coronavirus jobs bloodbath across Africa, at BusinessLive
  • Franchise Association says industry is set for massive job losses in face of pandemic, at Business Report
  • Wine industry left confused after state backtracks on wine export ban, at BusinessLive
  • New certificate needed to perform essential services, at Fin24
  • East London is Eastern Cape's Covid-19 epicentre, as provincial cases spike, at TimesLIVE
  • Potch traffic officials charged with corruption for allegedly receiving booze during lockdown, at News24


MINING LABOUR

Government outlines strategy to restart production at mines

BusinessLive reports that the government indicated on Thursday that mines in SA will restart production at half their capacity then gradually ramp up under strictly controlled conditions, with expectations to reach full production late in May.  Also, mining companies could tap into various sources of funding, including the interest on their rehabilitation funds, to pay for Covid-19 screening, testing and quarantine systems.  In a governmental briefing on Thursday, co-operative governance and traditional affairs minister Nkosazana Dlamini-Zuma said all coal mines that supplied coal to Eskom have to operate at full capacity.  Fuel refineries have to return to full production to ensure people are able to move about as the five-week lockdown is gradually lifted from the end of April.  “We’ve agreed the mines must start operating.  They will start operating at 50%, then the (minerals and energy) minister, through directions, will ramp them up to full capacity in an orderly way,” Dlamini-Zuma indicated.  “We identified the risk in deep mines that if they’re left alone for a long time the stability of the ground is affected and gases accumulate,” Mineral Resources and Energy minister Gwede Mantashe advised, noting that keeping those mines shut for much longer could mean the industry would be “confronted with disasters”.  He went on to say:  “We must allow a situation of phased recall of workers to those mines and deal with the question of ramping up production, while minimising the risk of accidents and disasters.”

Read the full original of the report in the above regard by Allan Seccombe at BusinessLive. Read too, Mining sector to operate a 50% of production capacity as government adjusts lockdown regulation, at Miningmx

Amcu to take legal action to require binding mining regulations on Covid-19 screening, testing and social distancing

BusinessLive reports that the Association of Mineworkers and Construction Union (Amcu) intends taking Mineral Resources & Energy Minister Gwede Mantashe to court to compel him to ensure the safety and health of mineworkers as they return to work on the mines.  Last week Mantashe announced that mines would restart production at half their capacity and gradually ramp up under strictly controlled conditions with the expectation of reaching full production late in May.  Amendments announced in terms of mining legislation loosened up some of the stringent regulations that were put in place from the beginning of the national lockdown in place since late March.  On Thursday, Amcu sent Mantashe a letter of demand asked him to declare Covid-19 a health hazard in terms of the Mine Health and Safety Act and to announce measures that would ensure the health and safety of mineworkers.  It also asked that the chief inspector of mines issue Covid-19 guidelines and direct all employers to prepare and implement codes of practice in line with the guidelines.  Issues to be addressed should include the screening and testing for Covid-19 at mines, the practice of social distancing, and what sort of protective gear is supplied to miners.  Richard Spoor, representing Amcu, said on Sunday that they had not yet received an official response to their letter of demand and that the union was set to file court papers on Monday

Read the full original of the report in the above regard by Claudi Mailovich at BusinessLive. Read too, Amcu calls for urgent coronavirus summit in mining sector, at EWN

CEO of Impala Platinum Rustenburg Mark Munroe in court on Friday charged with lockdown violations

BusinessLive reports that Mark Munroe, head of the Impala Platinum (Implats) Rustenburg mining division, appeared in court on Friday on charges of contravening the lockdown regulations in recalling about 6,000 people back to work.  He is the first high-profile mine manager to be charged with such a violation.  As Rustenburg CEO, Munroe's name is at the bottom of a letter dated 12 April requesting certain employees to return to the Rustenburg mines.  This was after the company received permission from the department to “ramp up operations”.  Implats spokesperson Johan Theron confirmed Munroe’s appearance in the Bafokeng Magistrate’s court on Friday morning to face charges of contravening national lockdown regulations, in recalling nonessential services people back to work.  Earlier in the week, police cordoned off all roads leading to the shafts and turned people back.  On Thursday, mineral resources and energy minister Gwede Mantashe outlined amended regulations for the mining sector, mapping out a gradual process of returning mines to work after the industry was shut down to curb the spread of the Covid-19 virus.  Theron said after what had happened to Munroe, the industry was ironing out interpretations of the amendments so that there would be no repeat of police blocks and arrests of management based on their understanding of the regulations.

Read the full original of the report in the above regard by Allan Seccombe at BusinessLive. Read too, Top Implats executive in court over alleged lockdown violation, at Fin24. And also, Parliament’s portfolio committee chair welcomes arrest of Implats CEO Mark Munroe, at EWN

Impala CE granted R60,000 bail after appearance on charges of contravention of Covid-19 regulations

Engineering News reports that Impala Platinum Rustenburg CE Mark Munroe was granted bail of R60,000 after appearing in court on Friday.  This followed Impala Platinum being charged with alleged contraventions of Covid-19 regulations issued in terms of the Disaster Management Act of 2002.  Munroe appeared in the Bafokeng Magistrate’s Court in a representative capacity on behalf of Impala Platinum.  The matter was postponed for further investigation.  The mine reportedly issued a notice to employees to return to work during the national lockdown, saying it had been granted a departmental exemption to do so.  Six thousand employees, representing about 20% of total employee levels, were reportedly recalled to work on Sunday, 12 April, but many were turned back at police roadblocks.  Mineral Resources and Energy parliamentary portfolio committee chairperson Sahlulele Luzipo has since called on the Department of Mineral Resources and Energy to investigate possible permit abuse.

Read the full original of the report in the above regard at Engineering News

Other general posting(s) relating to mining


BUSINESS RESCUE / RETRENCHMENTS

SAA staff face retrenchment with the possibility of no severance payouts

BusinessLive reports that the SA Airways (SAA) business rescue practitioners (BRPs) have laid out the process for full termination of all employees at the end of the month, but only if funds exist at the end of the winding down of the company.  SAA is insolvent and its liabilities completely outweigh its assets.  So the airline’s 10,000 employees stand to get no severance pay unless the government can ensure there is money available.  In a proposal sent to unions, the BRPs, Les Matuson and Siviwe Dongwana, indicated that in order for SAA to pay severance packages the company was required to sell and dispose of its assets.  They indicated that the severance packages were conditional upon assets being “realised at the value capable to cover the severance packages”.  If that condition is met, SAA will pay the severance packages to employees on a monthly basis over a period of six months, once the sale of assets has been concluded.  Earlier this week, the government told the BRPs that it was unable to provide the airline with further funding.  In light of government’s decision, in a proposal to unions, the BRPs asked staff to agree to the termination of their employment, due to SAA’s operational requirements, on 30 April.

Read the full original of the report in the above regard by Genevieve Quintal at BusinessLive. Read too, SAA business-rescue practitioners offer severance settlement agreement for all staff, at Mail & Guardian

After state shuts down business rescue funding, Pravin Gordhan to spell out fate of SAA to cabinet on Monday

BusinessLive reports that Department of Public Enterprises (DPE) Minister Pravin Gordhan will brief the cabinet on the fate of SA Airways (SAA) on Monday, while the airline’s business rescue practitioners (BRPs) are due to meet unions.  SAA was put into business rescue in December 2019, but its future now hangs in the balance.  The government’s mixed messaging over the broke state-owned airline has contributed to confusion, with the DPE on the one hand refusing to make more money available for the business rescue process and on the other hand saying no decision had been taken on restructuring the airline, which could see full-scale retrenchments.  A draft proposal made by the BRPs to trade unions on Friday delved into the process for termination of all employees at the end of the month with severance packages.  But, the BRPs indicated that for SAA to pay severance packages the airline would have to sell and dispose of its assets.  In a joint statement on Sunday, the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca), neither of which are part of the retrenchment negotiations as a result of not being consulted on the business rescue plan, said they rejected the BRPs’ proposed agreement.  Meantime, Mashudu Raphetha of the National Transport Movement said his union wanted alternatives to be factored into the agreement with the BRPs.  Derek Mans of trade union Solidarity advised that the unions would meet the BRPs on Monday at 11am, together with the CCMA to discuss the draft proposal.

Read the full original of the report in the above regard by Claudi Mailovich and Genevieve Quintal at BusinessLive. Read too, Without a clear plan, SAA stood no chance, at Mail & Guardian


MEDICAL SCHEMES

CMS to allow contribution holidays and other exemptions to help medical schemes retain members

BusinessLive reports that the Council for Medical Schemes (CMS) will temporarily relax rules to allow the industry to implement measures aimed at retaining members in the face of Covid-19, which threatens the affordability of cover for employers and consumers alike.  The CMS has issued an industry circular saying medical schemes can apply for exemptions to the Medical Schemes Act to launch lifelines such as contribution holidays, or access to medical savings accounts to cover premiums.  The R160bn medical scheme market covers about 8.9-million members, most of whom are subsidised by their employers.  Medical schemes face a host of unexpected risks triggered by the pandemic, but their biggest worry is how to hold on to members, as companies and individuals grapple with the economic fallout of the lockdown and the growing threat of retrenchments.  The CMS has stopped short of granting blanket exemptions to the act.  “Each exemption application will be assessed on its merit with key consideration given to a scheme’s financial ability to absorb such an arrangement.  The CMS has also declared Covid-19 a prescribed minimum benefit, compelling schemes to fully cover claims for the disease.  The Board of Healthcare Funders has encouraged its members to pay for Covid-19 claims in full and to take a flexible approach to managing members who face financial difficulties.

Read the full original of the report in the above regard by Tamar Kahn at BusinessLive


DISMISSALS

Pick n Pay workers fired over ‘strike’ they say never happened

Mail & Guardian reports that police were called the week before last to remove Pick n Pay workers accused of striking at the retailer’s distribution centre in Philippi in Cape Town.  The workers were summarily dismissed, despite their insistence that they never went on strike.  While the workers claimed this action affected 70 people; according to the retailer it was “a small group”.  The workers say that late on 10 April, they were told they had been dismissed for striking during the lockdown.  The police were called to remove them from the premises and photographs and video footage taken by the workers show the police inside the distribution centre on the night in question.  During the lockdown, essential workers have a limited right to strike.  But the workers claim they were not striking and were simply attending a meeting called by Pick n Pay labour brokers about an incentive agreement extended to them for continuing to work during the lockdown.  The workers concerned had apparently refused to sign the agreement, in which management had offered to pay them a bonus of R500 at the end of April and another R500 at the end of May.  At the meeting, notices from the two labour-broking companies were handed to the workers indicating that the distribution of food had been declared as an essential service, so it was unlawful for any workers at the distribution centre to engage in any form of strike.  “You have been told to get back to work, but you are refusing to do so.  This is your last warning,” the notices warned.  The workers said the warning — and the subsequent arrival of the police — came as a surprise to them.  According to one of the workers, they refused to sign the letter that said they had been striking.  “After two hours they came back with dismissal letters.  And they call law enforcement to take us out of the premises.”

Read the full original of the report in the above regard by Sarah Smit at Mail & Guardian


SUSPENSIONS

Suspended Sascoc acting president Barry Hendricks hits at sports minister‚ calls for board to be dissolved

BusinessLive reports that Barry Hendricks has hit back at his suspension as acting president of the SA Sports Confederation and Olympic Committee (Sascoc)‚ saying the organisation’s board should be dissolved and an independent administrator appointed.  In a letter addressed to all sports federations that make up Sascoc‚ Hendricks said the board was failing in its duties while the organisation was on the brink of “financial collapse”.  Pending arbitration, Hendricks was provisionally suspended by the board on Wednesday on the basis of a report from a lawyer who examined allegations of unethical conduct on the part of Hendricks for allegedly blocking Ntambi Ravele from standing against him in the coming Sascoc elections.  Hendricks has denied the allegation.  He also sent letters to sports minister Nathi Mthethwa and the International Olympic Committee (IOC).  In his letter to Mthethwa‚ Hendricks took issue with the minister for writing to the IOC and inviting it to intervene and resolve what he had termed “unhealthy developments around Sascoc”.  Hendricks told the minister that his efforts to broker the dispute could be seen as interference.  The board advised on Wednesday that Aleck Skhosana‚ president of Athletics SA‚ would take over as acting president of Sascoc.

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

 


Get other news reports at the SA Labour News home page