In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Monday, 8 June 2020.
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DA in urgent court bid against lockdown regulations banning hairdressers, personal care services Independent News reports that the Democratic Alliance (DA) has filed court papers at the Western Cape High Court seeking to have the lockdown regulations prohibiting personal care services from operating to be declared unconstitutional and invalid. The party has argued that services such as hairdressers, salons, and grooming services, which are prohibited under level three of the national lockdown, are greatly suffering as they are unable to operate. It had written to Cooperative Governance and Traditional Affairs Minister Dr Nkosazana Dlamini Zuma seeking an explanation by 3 June on the further ban on the industry. But, since the minister failed to respond by the given deadline, the DA said there was no choice but to approach the courts “to save the livelihoods of hundreds of thousands of people”. The party said it was “simply unjustifiable that almost every other industry is allowed to operate subject to health projects except the personal care industry.” According to the DA, the Minister’s indefinite "ban" violates the Constitution, “which allows citizens the right to practice their trade, occupation or profession freely which may be regulated by law.” This latest court action is part of a string of court challenges being faced by the government regarding the regulations governing the lockdown. Read the full original of the report in the above regard by Zintle Mahlati at Independent News
As schools reopened on Monday amid Covid-19 pandemic, pupils were scared, and so were staff TimesLIVE reports that shared anxiety and determination united pupils and teachers at Gauteng schools on Monday, the first day of class during the lockdown for grades 7 and 12 pupils. They were screened before they entered sanitised premises, and social distancing was observed. At Roosevelt High School in Johannesburg, principal Willie de Wet said pupils and staff were eager for schooling to resume. The school has been ready to receive students for two weeks as staff had anticipated opening a week earlier. De Wet noted: “Pupils are scared but so are staff members. However, we are in the business of teaching.” He advised that the school employed some teachers over the age of 60 and had made special arrangements for them. Some worried parents stood at the nearby Franklin D Roosevelt Primary School, where they were not allowed to enter the school premises in line with government guidelines. Their main concern was that they were not allowed to see for themselves that the school had the requisite stringent safety measures in place. The principal of Tsakani Primary in Kagiso David Chauke indicated: “I think we are very ready. We have all the required equipment, including personal protective supplies, and we have made sure there is social distancing.” On arrival, grade 7 pupils were screened with temperature checks administered by teachers, and they had to sign a register. White lines and cones marked a 1m social distancing space between pupils in a queue. Read the full original of the report in the above regard by Andisiwe May, Iavan Pijoos, Amina Asma and Shonisani Tshikalange at TimesLIVE A total of 6,044 schools in KZN were due for reopening on Monday, but 104 to stay closed Independent News reports that despite 104 schools in KwaZulu-Natal (KZN) not being ready to reopen on Monday after failing to meet all the Covid-19 safety and health regulations, it was all systems go for 6,044 of the schools in the province. The schools that were not ready were mainly in water-scarce districts of Zululand, Umkhanyakude and Ugu. KZN Premier Sihle Zikalala indicated on Sunday that those schools would remain closed and would only be opened once they are fully compliant with Covid-19 regulations. He stressed that there would be no compromise to the safety and well-being of learners and teachers. Moreover, Zikalala said that should symptoms or a case be identified at a school, Covid-19 guidelines for schools would commence. “This will entail conducting a risk assessment, which entails contact mapping, tracing and screening. Based on the extent of exposure, a decision will be taken to either close or decontaminate,” Zikalala advised. KZN education MEC, Kwazi Mshengu said the decision to not reopen the schools that were still lagging behind was taken after consulting with teacher unions, which had previously been adamant that these schools should not be left behind. But, while the number of schools not ready was pegged at 104, the SA Democratic Teachers’ Union (Sadtu) in KZN said the actual figure was higher. Read the full original of the report in the above regard by Sihle Mavuso at Independent News. Read too, 104 KZN schools not ready to reopen, at SowetanLive. And also, KZN education officials amazed at Covid-19 compliance as schools reopen after two-month lockdown, at Daily News Public Servants Association opposes reopening of schools, disagrees with five other teacher unions TimesLIVE reports that the Public Servants Association (PSA), which represents teachers and administrative staff members at schools, is concerned about pupils at poor and rural schools falling behind as better equipped facilities reopen on Monday. The PSA distanced itself from the "tentative" endorsement by other unions of the resumption of teaching at state schools countrywide for pupils in grades 7 and 12. Sadtu, Naptosa, Saou, Natu and the Professional Educators' Union, together with a number of school governing body (SGB) associations, on Sunday supported the call to reopen schools on Monday "with the clear understanding that no school may open that is not Covid-19 compliant". This followed a meeting with authorities and confirmation from Basic Education Minister Angie Motshekga that schools were "95% ready" to reopen. The PSA, however, said it was “extremely disappointed that these unions have agreed with the minister of basic education that not all schools can open for Grade 7s and Grade 12s". Over the weekend, the union continued to receive reports from its provincial offices and members “which have found that schools, specifically those in the rural and poorer communities, still do not meet the required safety standards." The PSA said it was “extremely disturbed by the fact that the department and other unions can agree to leave some schools behind whose learners will be expected to write the same examinations.” Read the full original of the report in the above regard at TimesLIVE Other internet posting(s) in this news category
Labour Court will have to weigh up contractual rights of public sector workers to salary increases BL Premium reports that the Labour Court will have to answer the question of whether state employees have the contractual right to have their wage agreements honoured by the government when several public sector trade unions bring their legal challenge to the government’s refusal to pay wage increases in line with the final year in a multi-term wage agreement. It is uncharted waters for the public sector to not honour a wage agreement. The increases in the final year of the three-year wage agreement signed in 2018 would have taken effect on 1 April, if the agreement had been honoured. The court challenge has been in the making since it became obvious on 15 April, when state employees received their salaries, that there would be no pay rises. Five public sector unions have now taken the matter to court. The unions have asked the court to declare that the government’s failure to implement the salary increases as provided for in an agreement at the Public Service Co-ordinating Bargaining Council (PSCBC) was in breach of the contracts of employment of the applicants’ members. They want the court to order that the salary increases be implemented on the basis that their members have “a contractual right to have their salaries increased”. Meantime, unions affiliated to Cosatu have applied for arbitration at the PSCBC after conciliation failed. The matter has not yet been set down for arbitration and a date from the council is awaited. Read the full original of the report in the above regard by Claudi Mailovich at BusinessLive (paywall access only)
Unions ask for more time to give input on SAA business rescue plan News24 reports that the business rescue practitioners (BRPs) for SA Airways (SAA) have received a request from three unions for more time to submit feedback on a draft rescue plan issued to affected parties a week ago. The BRPs had intended to submit their long-awaited draft rescue plan for the national carrier on Monday for creditors, government as shareholder and unions to vote on. They indicated on Monday morning that lawyers represent the National Union of Metalworkers of SA (Numsa), the SA Cabin Crew Association (Sacca) and the SA Airways Pilots Association (Saapa) had written to object to the publication of the plan on 8 June, pending further engagements in the Leadership Compact Forum created between the Department of Public Enterprises and unions to see how the airline could be saved, or a new airline created. The three unions, which collectively represent about 65% of SAA’s employees, had requested an extension until 15 June. The airline's creditors have until close of day on Monday to decide whether they wanted to approve the extension or not. Read the full original of the report in the above regard by Carin Smith at News24
Cosatu calls an additional R1 trillion stimulus package in a ‘new, reprioritised and bold budget’ The Citizen reports that Cosatu has asked for an additional R1 trillion stimulus package for SA to address job losses, avoid economic depression and fight Covid-19. In a submission to the parliamentary appropriations standing committee, the trade union federation said Finance Minister Tito Mboweni “must now table a new, reprioritised and bold budget” if the country was to survive the virus and avoid an economic depression and raging unemployment. It pointed out that the February national budget had been rendered irrelevant by the Covid-19 pandemic. “The president’s previous announcement of R500 billion worth of economic relief was welcomed. It must now be accompanied by a bold R1 trillion-plus stimulus plan if we are to save jobs and the economy,” said Cosatu’s parliamentary co-ordinator Matthew Parks. But, Cosatu said the stimulus funding for companies must be conditional upon job retention and incentivised for job creation. “Essential economic infrastructure must be prioritised for investments, especially ports, rail, energy, water, health and education,” Parks stated. Read the full original of the report in the above regard by Eric Naki on page 4 of The Citizen of 8 June 2020 Other internet posting(s) in this news category
Metair clinches multibillion-rand contracts with Ford and anticipates creation of over 3,300 new jobs Engineering News reports that Metair has secured multiple contracts from Ford Motor Company of Southern Africa (FMCSA) as the local arm of the US vehicle maker prepares to launch new vehicles for the local and export markets. Metair is a manufacturer, distributor and retailer of energy storage solutions and automotive components. Metair CEO Theo Loock said: “The investment approved by Metair’s board to support Ford is the group’s largest to date for a single customer and we anticipate that over 3,300 jobs will be created, with the largest portion in northern KwaZulu-Natal.” Metair’s total funding requirements are estimated at around R1.3-billion, with the capital investment in property, plant and equipment anticipated at more than R900-million. This commitment will include the construction of a new manufacturing facility in Stanger, northern KwaZulu-Natal. A new logistics facility will also be established in Silverton, Pretoria, where Ford’s manufacturing plant is located. In addition to Metair’s Hesto Harnesses, which will be the largest beneficiary in supplying a wide range of wire harnesses to Ford, a number of other subsidiaries will also benefit, including Unitrade, Automould and Lumotech, which will provide a variety of wires, plastic and chrome-plated parts, as well as headlights and taillights. Read the full original of the report in the above regard at Engineering News
Richemont signals management shakeup after controversy over increases in senior executive compensation Bloomberg reports that Richemont has indicated that it might make changes in top management after a report that employees were frustrated about increases in senior executive compensation when most directors got pay cuts. The Swiss luxury-goods maker is chaired by South African Johann Rupert. Total compensation for the senior executive committee in the year through March increased 36% to approximately $43 million, according to Richemont’s annual report. The Geneva-based company said on Friday that it was reviewing its human-resource department, but had not yet made any decisions. Earlier, it was reported that Sophie Guieysse, the head of HR, was leaving the company. Richemont also said it might make changes to its senior executive committee, which comprised seven managers including Guieysse. The company’s top management have a 20% reduction in base salary until further notice, according to a knowledgeable source. Cash bonuses for this year have been reduced 25% from the initially planned amount. Last month, Rupert warned of “grave economic consequences” that could last three years. His pay, which the billionaire traditionally donates to charity, was cut in half this fiscal year, and he will make up the shortfall in donations personally. Read the full original of the report in the above regard by Thomas Mulier at Moneyweb
Two top cops in R140m elaborate tender fraud cases The Star reports that a staggering R140 million in an alleged elaborate fraud and corruption case has snagged two senior police officers. Tender rot in the SA Police Service (SAPS) was laid bare in the Pretoria Magistrate’s Court on Friday when Lieutenant-General Ramahlapi Mokwena and Brigadier James Ramanjalum appeared alongside eight other officers and six civilians in the business sector on charges of fraud, corruption, theft and money laundering amounting to R56m. This was related to a 2017 tender to brand police vehicles, in which there has been alleged intimidation of innocent officers, family favours, misrepresentation of IDs and document manipulation. Two companies – Vatika Trading and Kgotho Trading – were granted millions of rand for work supposedly fraudulently acquired. Ramanjalum and Mokwena also face R84m in fraud and corruption charges, which were instituted in 2018, in another matter before the Johannesburg Specialised Commercial Crimes Court related to the fitting of Gauteng police vehicles with sirens, radio and other equipment. This brings to R140m the alleged tender graft that Mokwena and Ramanjalum are embroiled in. Mokwena, who recently retired from the police, was the national head for supply chain management, while Ramanjalum is still the SAPS’s national head of procurement. All the accused indicated that they were innocent and would plead not guilty. All of them, except for Ramanjalum, were released on R5,000 bail. Ramanjalum remains in custody and will return to court on Thursday for the finalisation of his bail hearing. Read the full original of the report in the above regard by Khaya Koko on page 2 of The Star of 8 June 2020
Mbalula warns Gauteng taxi bosses about fare increases of over 100% SowetanLive reports that Transport Minister Fikile Mbalula has threatened to refer a decision by some Gauteng taxi operators to hike fares by over 100% to the Competition Commission. The Alexandra Taxi Association (ATA) and the Alexandra, Randburg, Midrand, Sandton Taxi Association (Armsta) said they would be increasing their fares by over 100% because they faced serious losses due to the lockdown regulations. This means a single trip from Johannesburg to Alexandra, which currently costs R13, will be R30, a 130.7% surge. The new fares are due to start on 15 June. Mbalula on Sunday said he was aware of the problems and urged taxi associations to be mindful of the poor when re-determining fares, especially in light of the financial relief that the government was finalising to assist the industry. He noted that current regulations prevented illegal profiteering, so he was enjoined by the regulations to refer the matter to the Competition Commission to assess if the fare increases were fair and justifiable. Gabriel Mataboge of ATA defended the decision to increase the fares: "Government requested us to fill only up to 70% capacity of our vehicles. Government also restricted our working hours in levels 4 and 5. As an industry we lost a lot of money. Through the media, government indicated that it has plans to help us as an industry but that has not materialised. Our members are really struggling.” Read the full original of the report in the above regard by Penwell Dlamini and Tankiso Makhetha at SowetanLive. Read too, Gauteng commuters faced with 172% rise in taxi fares from mid-June, at EWN. And also, Huge taxi fare hike on the cards for Joburg commuters, at News24 Alexandra commuters outraged over looming taxi fare hikes EWN reports that Alexandra commuters on Monday were outraged after two Johannesburg taxi associations announced price hikes due to take effect from next week. The Alexandra, Randburg, Midrand, Sandton Taxi Association (Armsta), which operates one of the city’s busiest routes, said its decision to charge Alexandra commuters R30 for a trip to Sandton was due to the Covid-19 regulations imposed on the industry by government, particularly the 70% passenger loading limit. Hlompang Mokoena, a security guard at Sandton City, said that his entire salary would go towards his transport if the fare increase was implemented and he pleaded with government to find a middle ground with the taxi industry. Cecilia Ngubeni, a domestic worker, said that she returned to work last week after nearly two months of no income, but the taxi operators “don’t even think about us, they think about themselves. How can they increase the fares by more than 50%?” Transport Minister Fikile Mbalula is expected to meet with the taxi industry over the matter, but his ministry said it would be compelled to refer the matter to the Competition Commission if the situation could not be resolved Read the full original of the report in the above regard by Veronica Mokhoali at EWN
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