In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 24 April 2020.
|
Easing of lockdown on Friday will open the gates to about 1.5-million workers BusinessLive reports that according to a briefing by trade & industry minister Ebrahim Patel on Saturday, more than 1.5m people will be able to return to work once SA relaxes its national lockdown designed to limit the spread of the coronavirus. The move into stage 4 is set for 1 May and will mean the return of a large number of employees who have been unable to do their jobs during phase 5. The lockdown measures needed to combat the pandemic — which the government intends to lift on a risk-adjusted basis in the coming months — are expected to result in GDP shrinking by 6.1% and a loss of at least 370,000 jobs, according to SA Reserve Bank estimates. Patel said that the new arrangements will be based on a phased-in return to work aimed at striking a balance between opening up the economy and the risk of a resurgence in infections. The exact number of people going back to work will depend on how many firms reopen, final arrangements made for sectors such as education, and on the industrial classification framework that is still being developing for different sectors. Areas reopened for business include parts of the agriculture, manufacturing and mining sectors, on a scaled-up basis. Agriculture will now include forestry, logging and related services, while the manufacturing sector will be allowed to scale up activity to accommodate 20% of employment. In some cases such as automotive and components manufacturing, as well as cement, construction and hardware, activity will be scaled up to cover 50% of employment. In the retail and wholesale trade sectors an expanded list of items will be for sale. Read the full original of the report in the above regard by Lynley Donnelly at BusinessLive Survey paints a grim picture, with three quarters of businesses considering redundancies, pay freezes BL Premium reports that three quarters of businesses in SA are considering cost-saving initiatives such as redundancies and pay freezes as they navigate the economic crisis brought by the Covid-19 outbreak. This is according to a survey by global insurance brokerage and advisory firm Willis Towers Watson (WTW). The results showed that 72% out of 412 SA businesses surveyed said they were already looking at cost-saving measures. Almost half of those said they would completely halt hiring new staff. Nearly a quarter said they were considering making selective redundancies, while 41% said they would stop the payment of bonuses. Only four out of 10 business are pressing ahead with pay rises. “Businesses are under intense pressure and are looking for ways to survive the pandemic and to protect their staff. Pay freezes are never popular but it could mean the difference between someone keeping their job or losing it,” said Melanie Trollip of WTW SA. The surge in joblessness across the economy will “darken the outlook of a jobs market that was struggling even before Covid-19”, Trollip warned. Read the full original of the report in the above regard by Ntando Thukwana at BusinessLive (paywall access only). Read too, It will take time and effort to fix SA’s ‘shattered’ economy, warns Ramaphosa, at BusinessLive Over 75,000 jobs at risk if franchises can’t start working soon City Press reports that SA’s 48,000 franchise businesses are anxiously waiting to hear who will be able to do business again when the total lockdown ends at midnight on Thursday. Last week, President Cyril Ramaphosa announced that economic activity would be gradually scaled up after a comprehensive lockdown was imposed last month. About 94% of franchises in SA have been unable to do business since 26 March and it is feared that 75,000 jobs could be lost as a result. “But that is a conservative estimate,” indicated Vera Valasis of the Franchise Association of SA (Fasa), which expects that many more job losses will result if these businesses are not allowed to begin operating soon. In a letter dated 11 April to Trade, Industry and Economic Development Minister Ebrahim Patel, Fasa asked that fast-food businesses be allowed to sell frozen, prepared food such as lasagne or pizza. “But government appears to have moved in the opposite direction to what we requested, and we do not understand the reason for that. It would have been an important lifeline for these businesses,” said Valasis. Fasa hopes that fast-food businesses will at least be allowed to do deliveries – without contact – when the full-scale lockdown is lifted. Valasis pointed out that the fast-food industry was not the only one struggling: “The whole franchise industry, with the exception of supermarket groups, has been dealt a heavy blow.” Read the full original of the report in the above regard by Liesl Peyper at City Press. Read too, Final list of sectors entitled to resume under ‘Level 4’ lockdown to be published this week, at Engineering News As school fees dry up, salaries and jobs of part-time teachers at risk Sunday Times reports that sports, music and dance coaches employed by governing bodies at some former model C schools will not be paid this month as parents increasingly stop paying fees. Their services are also unlikely to be used for the rest of the year after the Department of Basic Education proposed that extracurricular activities be suspended. Schools are likely to slash the pay of teachers appointed by governing bodies or retrench them if fees dry up. At least 150,000 teachers and support staff are employed by governing bodies. The Governing Body Foundation has advised schools that cannot meet their monthly costs to consult affected teachers about the possibility of accepting reduced salaries. Anthea Cereseto, CEO of the Foundation, said the percentage reduction in salaries could be determined by the school’s financial ability, “which would be better than being retrenched”. She urged schools to help such teachers and support staff through the government’s temporary relief scheme. Basil Manuel of the National Professional Teachers’ Organisation of SA (Naptosa) said they had received about 30 letters asking about the legality of salary cuts. He commented: “Schools have to try to ensure they are not being party to impoverishing the nation. We must certainly try to pay our staff because these people have no other income.” Jaco Deacon of the Federation of Governing Bodies of SA said they have advised schools to keep staff as long as possible. Read the full original of the report in the above regard by Prega Govender on page 9 of Sunday Times of 26 April 2020 Motor industry awaits terms under which it will be allowed to resume production at end of week BusinessLive reports that the motor industry is waiting to hear the terms under which it will be allowed to resume manufacturing from the end of this week. On Saturday, after intense industry lobbying, trade & industry minister Ebrahim Patel reversed the government’s earlier decision that vehicle and components manufacturers should not be among sectors allowed to resume production from 1 May once the lockdown to curb the spread of Covid-19 is downgraded from level 5 to level 4. One proviso is that no more than 50% of employees may be on site at once. Tim Abbott of the National Association of Automobile Manufacturers of SA (Naamsa) said this may not be practical for all companies and other issues also needed clarification before companies could make firm decisions on how to resume work. Even when rules are clear, manufacturing is unlikely to get going immediately from 1 May. Teams will need at least the weekend to prepare machinery and production lines. Even then, vehicle companies will have to wait for components from their suppliers. Abbott still hopes the government will reconsider its decision to keep motor dealerships closed. Mark Dommisse of the National Automobile Dealers Association said dealers were likely to start laying off employees from mid-May if they were unable to open for business. Read the full original of the report in the above regard by David Furlonger at BusinessLive. Read too, Auto industry could take over a year to recover, says TransUnion Auto Information Solutions, at Moneyweb Tourism BEE Covid-19 support to be challenged in court by Solidarity and AfriForum on Tuesday BusinessLive reports that trade union Solidarity and lobby group AfriForum are forging ahead with a legal challenge against tourism minister Mmamoloko Kubayi-Ngubane’s decision to provide support to distressed firms and establishments in the tourism sector based on broad-based BEE codes, among other considerations. Kubayi-Ngubane has raised the ire of some in the sector because the BEE considerations will disqualify many companies from accessing government funding to mitigate the effect of the coronavirus pandemic. The pandemic has hit the travel and tourism sector hard. The case will be heard by the North Gauteng High Court on Tuesday. “This pandemic is not a crisis that only affects certain people — the whole SA is in this crisis. The tourism sector is severely affected, yet the department of tourism will, other than the virus, look at your race and discriminate against you based on the colour of your skin,” explained Solidarity CEO Dirk Hermann. Solidarity noted that the purpose of BEE was to correct the disadvantages of the past, but argued that the Tourism Relief Fund should not be about those who were previously disadvantaged, but about survival. The ANC in Parliament said it was shocked and dismayed that Solidarity and AfriForum had decided to approach the court to challenge the official government policy of BBBEE. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive Read too, Department of Tourism receives over 9,000 applications for relief fund, at EWN Firms are receiving millions from UIF’s Ters scheme, with some left unsure how much to pay each worker Business Insider SA reports that the Unemployment Insurance Fund has so far paid out more than R1.6 billion in special coronavirus benefits – known as the Covid-19 Temporary Employee/Employer Relief Scheme (Ters) – to 37,000 companies. The money is paid, in one lump sum, directly into each company’s bank account, and they have to then pay it to the workers, 600,000 in all, who have been put on unpaid leave, laid off temporarily, or who only received part of their salary. But most companies did not receive any guidance from the UIF about how the money should be split among the employees. According to a survey among the 10,000 members of the National Employers Association of SA (Neasa), less than 1% received a payment schedule along with the UIF money in their accounts. This means companies don’t have instructions about what amount each employee should get. The UIF uses a specific formula and a sliding scale to determine what each recipient is entitled to. The payout period covers five weeks (the lockdown period), not a month, which adds to the complexity of the calculation. A UIF spokesperson said companies who were uncertain about what they should pay should contact the fund immediately. Read the full original of the report in the above regard by BusinessInsider Sassa to screen applicants for coronavirus R350 unemployment grant against databases to confirm eligibility EWN reports that last week, President Cyril Ramaphosa announced a new coronavirus unemployment grant of R350 a month for the next six months until October. The special Social Relief of Distress grant will go to those who are unemployed and do not receive any other social grant or UIF payment. The SA Social Security Agency (Sassa) will screen applicants against other databases to see whether they qualify. Sassa chief executive Busisiwe Memela indicated that the databases would include those of the SA Revenue Service (Sars), the Unemployment Insurance Fund (UIF) and the National Student Financial Aid Scheme (NSFAS). She described how the social security agency planned to identify and pay eligible beneficiaries with answer to the following questions: How will people register? How will they identify legitimate beneficiaries? Do foreign nationals qualify? When will payments start? How will the money be paid? Read the full original of the report in the above regard at EWN
As lockdown eases, workers must have say in the health and safety of reopening businesses, Cosatu says BusinessLive reports that Cosatu wants workers and unions to have a say on whether a business can reopen when the hard Covid-19 lockdown ends on 30 April, following a risk assessment and a signed agreement by stakeholders. The trade union federation is also calling for more labour inspectors as SA moves to ease some of the stringent lockdown regulations. Cosatu national spokesperson Sizwe Pamla said workplace conditions pertaining to health and safety must be fulfilled and a risk assessment of the workplace conducted before a business could reopen. “This must be negotiated with and agreed to by workers and unions in workplaces. Any sector or workplace must have a signed health and safety agreement,” he indicated. The agreement must include safe transport, the provision of personal protective equipment and sanitisers, social distancing at the workplace, regular testing, and screening at the workplace, “as well as other measures that can reduce the number of people on duty per shift through staff rotations, where possible”. Pamla also said employers needed to put resources in place to allow their employees to work from home. Cosatu made the remarks after President Cyril Ramaphosa announced on Thursday that beyond 30 April there would be a gradual and phased recovery of economic activity. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive SA secures vital stocks of personal protective gear for health workers BusinessLive reports that the protection of SA’s front-line doctors, nurses and community healthcare workers received a boost last week with the arrival of a major order of medical protective gear. Cases have already been reported of some of these front-line workers testing positive for Covid-19. The lack of personal protective equipment (PPE) has been a major challenge in a number of countries because of the surge in global demand for surgical masks, gloves, ventilators and other items. The order, which arrived on Thursday night, included two-million surgical masks and 216,000 KN95 respirators. Delivery of a second order consisting of a further 784,000 KN95 respirators and 550,000 surgical masks was due to take place on Sunday night. The order forms part of a government-led centralised PPE procurement strategy that serves both the public and private healthcare sectors. It is led by the Department of Health and the Treasury’s chief procurement officer in partnership with Business for SA (B4SA), which is an alliance of volunteer resources from business bodies, organisations and companies. B4SA on Friday said the centralisation of SA’s PPE procurement was critical as global competition for the protective gear continued to rise. The central procurement strategy is aimed at securing PPE stocks for SA for the next 6-8 weeks, and monthly thereafter. Read the full original of the report in the above regard by Linda Ensor at BusinessLive Eastern Cape health workers facing protective gear supply issues, police union wants better social distancing in cop cars EWN reports that according to Health Minister Zweli Mkhize, there is sufficient protective gear for health workers fighting coronavirus, but it has been distributed unevenly. Briefing Parliament's Health Committee on the latest coronavirus developments, Mkhize said his department was ensuring there was enough personal protective equipment for frontline health workers, but there have been a few issues such as those that emerged when he visited Eastern Cape hospitals last week. “We found that a large number of stock that has been ordered but not delivered. We intervened immediately. We went into the stock where the stuff was being stored. And actually moved some of the PPE’s quickly to deal with the issue in the Eastern Cape,” Mkhize reported. Mkhize said equipment stock must be distributed to provinces that needed it - irrespective of whether they were waiting for an order or not. Meanwhile, the SA Policing Union (Sapu) wants more measures to protect officers from the virus. The union’s president Mpho Kwinika said there was too much focus on masks and gloves and not enough on other measures to protect officers. He said there was no social distancing in police vehicles and officers swapped cars during shifts, without them being properly disinfected. There was also a lack of screening when officers reported for work. Read the full original of the report in the above regard by Kaylynn Palm and Jarita Kassen at EWN. Read too, Three Cape Town police stations closed due to Covid-19 infections, at EWN Addington Hospital in Durban in hot water for allegedly hiding coronavirus infection rate Sunday Tribune writes that Addington Hospital in Durban is sitting on a time bomb as management comes under fire for allegedly hiding information on the infection rate after more nurses and a doctor apparently tested positive for Covid-19. The Democratic Nursing Organisation of SA’s (Denosa’s) Mandla Shabangu said they had been informed there were cases of theatre workers testing positive at Addington. He said staff members were concerned the infection rate could escalate after those thought to have contracted the virus were ordered to work while awaiting test results. “Addington Hospital seems to be the most infected public facility. The writing is on the wall but the management is trying hard not to create panic among the staff. We have since learnt that positive cases have been confirmed there and that all theatre users have been tested to establish how far the virus has spread, which we appreciate,” he stated. A health worker said while there were more than seven cases of infection, the emphasis was only placed on a single nurse who had openly revealed her status. He claimed: “They are hiding information from us about the number of people who have contracted the virus while not giving us enough protective gear … When confronted with issues, the management tells us instructions come from the head office - it is a ‘pass the buck syndrome.'" Read the full original of the report in the above regard by Nkululeko Nene at Sunday Tribune Other internet posting(s) in this news category
Cuban sends 217 healthcare workers to SA to help combat coronavirus Reuters reports that Cuba on Saturday sent 217 healthcare workers to South Africa in the latest dispatch of more than 20 medical brigades it has sent worldwide to combat the coronavirus pandemic. The country has sent around 1,200 healthcare workers largely to vulnerable African and Caribbean nations, but also to rich European countries such as Italy that have been particularly hard hit by the novel coronavirus. The administration of U.S. President Donald Trump has urged nations not to accept Cuba's medical missions on charges it exploits its workers, but the call has largely gone unheeded as overwhelmed healthcare systems have welcomed the help. "The advantage of Cuba is that they are a community health model, one that we would like to use," SA’s Health Minister Zweli Mkhize told a news briefing earlier this month. Cuba's embassy in SA wrote on Twitter that the "Medical Brigade" would arrive in Johannesburg on Sunday on a special SAA flight and would include family physicians, epidemiologists and biostatists, among others. Read the original of the above report at Independent News Nursing union Denosa says government is 'unpatriotic' for inviting in Cuban doctors and should hire jobless workers instead EWN reports that the Democratic Nursing Organisation of SA (Denosa) claims government is unpatriotic for welcoming Cuban doctors into the country but ignoring its own healthcare professions who remain unemployed. More than 200 Cuban doctors and health workers arrived in the country on Sunday to bolster resources in the fight against Covid-19. They included physicians, epidemiologists and biologists, as well as healthcare technology, engineering and biotechnology experts. They will help with door-to-door testing, with deploying and repairing medical equipment and with technical assistance. Denosa president Simon Hlungwani said government should be hiring the thousands of doctors and nurses who remained without jobs. Read the original of this short report by Clement Manyathela at EWN SANDF seeking seamstresses, chefs, pilots, medics and engineers for reserve force Covid-19 deployment TimesLIVE reports that the SA National Defence Force (SANDF) has put out a call for members of its reserve force with specialist skills and who have not yet been called up to volunteer for duty. The call comes on the back of the "biggest deployment since 1994" of the military - more than 73,000 members - to help government deal with the coronavirus pandemic. The deployments include members of the army, air force, navy and military health service. “Those members of the reserves who have not yet been called up and who have specialist skills are requested to contact the reserves offices in their provinces to volunteer their service,” the SANDF indicated on Thursday. The type of skills being sought include health-care practitioners, especially nurses and doctors; qualified chefs; qualified mechanics; qualified engineers, technical and mechanical; pilots or people with aviation experience; and qualified seamstresses. Read the full original of the report in the above regard by Nonkululeko Njilo and Naledi Shange at TimesLIVE
In pre-emptive step against Amcu’s legal challenge, state orders mining companies to tighten Covid-19 measures BusinessLive reports that last week the state issued a strict directive on health measures for mines to follow as they restart operations after a three-week lockdown. This could potentially derail a legal challenge by the Association of Mineworkers and Construction Union (Amcu) to force general Covid-19 regulations on the industry. Amcu has brought an urgent application to the Johannesburg Labour Court to compel the state to regulate the mechanisms set up to protect employees from coronavirus. The directive appears to deal with many of the union’s concerns, but has not been gazetted. The court has set down 29 April for the start of the case. On Thursday, the Department of Mineral Resources & Energy issued the directive to all mining companies outlining the measures they have to take in terms of the Mine Health and Safety Act, which demands that “every employer must, as far as reasonably practicable, provide and maintain a safe working environment”. The directive could be regarded as a pre-emptive step by the department ahead of the court case, setting out the obligations it expects companies to adhere to in terms of the act. Read the full original of the report in the above regard by Allan Seccombe at BusinessLive NUM rejects Village Main Reef's plan to retrench 6,309 workers, calls for Mantashe to intervene Business Report writes that the National Union of Mineworkers (NUM) has rejected Village Main Reef’s (VMR) restructuring plan in which 6,309 mineworkers could likely be retrenched. On Thursday, the union called on Mineral and Resources Minister Gwede Mantashe to intervene, saying that the company had unilaterally issued letters to workers instructing them not to report to work after the national coronavirus lockdown period. Masibulele Naki, NUM’s Matlosana regional secretary, said: “VMR is pleading poverty, but it has been harbouring some thieves within its management structures. Recently, the company dismissed some of its senior managers for stealing gold and other fraud and corruption-related matters. Now the mineworkers must pay for that by facing no work no pay during the lockdown and being retrenched.” VMR recently issued a Section 189 (i.e. retrenchment) notice notifying organised labour of its plan to permanently close the Tau Lekoa Mine and restart the Kopanang and West Gold Plant with reduced employees when the national coronavirus lockdown ends. The government has given mining houses the green light to operate at 50% capacity, but VMR said to keep operating the Tau Lekoa and Kopanang loss-making underground operations with the current workforce while only operating at 50% production levels was not possible and would widen losses. Read the full original of the report in the above regard by Dineo Faku at Business Report Other general posting(s) relating to mining
Government says SAA liquidation put on hold, consultations on structured wind-down suspended BusinessLive reports that government said on Saturday that SA Airways’ (SAA’s) business rescue practitioners (BRPs) have agreed not to consider liquidating the ailing state-owned airline and also to suspend consultations about a structured wind down proposal that would include culling the entire workforce. The Department of Public Enterprises (DPE) said the decision was based on a briefing to the BRPs on the work being done by a “leadership consultative forum” chaired by public enterprise minister Pravin Gordhan and involving representatives of unions at the airline as well as non-unionised members. The parties agreed to work towards a “national asset which is internationally competitive, viable, sustainable and profitable”. The BRPs advised last week that there were two choices: either implement a winding down process that would involve retrenching all employees or apply for liquidation. The former would entail the termination of employment by agreement, which would give employees a better say on termination pay than a liquidation, but would require that employees provide their consent, which they have not done. It is not clear what would be achieved by next Friday, and whether failure to come up with a workable alternative will mean employees would have to accept the existing plan — and thus the job cuts. Meantime, SAA does not have funds to pay salaries beyond April and the government has refused to give it more cash. Read the full original of the report in the above regard by Genevieve Quintal at BusinessLive. Read too, SAA cannot pay salaries beyond April, at Moneyweb Public Works Department ignoring plans to save IDT, say employees Mail & Guardian reports that a task team led by the Department of Public Works and Infrastructure (DPE&I) is expected to hand over a detailed plan at the end of this month on the dissolution of the embattled Independent Development Trust (IDT). This follows last month’s decision by Minister Patricia de Lille to dissolve the state-owned entity, which is responsible for social development programme management services and delivering social infrastructure such as schools and clinics, after years of underperformance. The company is facing numerous difficulties including financial unsustainability. Earlier this month, 90 employees were given a three-month extension of their contracts, which were due to be terminated at the end of March. The lifeline was extended after talks between De Lille and the National Education, Health and Allied Workers’ Union (Nehawu). But, as the DPW&I presses on with its plans to dissolve the IDT, employees say they have been left in the dark about the process. In a draft letter, the IDT employees have accused the department of ignoring plans to save the trust and save jobs. These plans include turning the IDT into a commercial entity to which the department would allocate infrastructure projects. This, they said, would allow the company to be sustainable without a capital injection from the fiscus. Read the full original of the report in the above regard by Thando Maeko at Mail & Guardian Other internet posting(s) in this news category
Senior HR director takes Mangosuthu University of Technology to labour court over suspension Sunday Tribune reports that a senior director at Mangosuthu University of Technology (MUT) has taken the institution to the Durban Labour Court over his precautionary suspension. Lwazi Mthimkhulu, an acting senior director in the human resource and development department, was placed on precautionary suspension recently by the university’s vice-chancellor and principal, Enoch Malaza, on allegations of payroll irregularities. Mthimkhulu, who has been in an acting position since January, challenged his suspension at the court. In his court papers, he claimed that he was being targeted because he questioned some “dubious” payments in the university’s payroll. He claimed that within two months of acting in the position he discovered “horrifying acts of corruption and fraud in the procurement of security services”. In Mthimkhulu’s view, it was his protected disclosure to a line manager about a demand for a R700,000 kickback from a service provider in exchange for the R99m security contract that resulted in the “vindictive conduct of the institution.” But according to Malaza, Mthimkhulu was put on precautionary suspension pending a full investigation based on an audit trail revealing that he benefited financially from irregular transactions on the university’s payroll system in the period January to March 2020. Read the full original of the report in the above regard by Siboniso Mngadi at Sunday Tribune
|
Get other news reports at the SA Labour News home page