Today's Labour News

HEALTH & SAFETY

Healthcare workers filing for Compensation Fund benefits over Covid-19 infections

BusinessLive reports that the number of healthcare workers lodging claims with the Department of Labour’s (DEL’s) Compensation Fund (CF) after being infected with Covid-19 at their workplaces is increasing at an alarming rate.  The fund provides compensation to employees who are injured or contract diseases through the course of their employment and is financed by levies paid by employers.  Since 18 October 2019, some R70m in benefits have been paid.  More than 1,000 health-care workers have been infected with the coronavirus in SA and the number seems to be increasing in tandem with the infections.  The claims come as unions last week called on public hospitals breaching Covid-19 health and safety regulations to shut down, claiming they had become breeding grounds for the spread of the virus.  They berated government for not doing enough to ensure the hospitals complied with regulations to save healthcare workers' lives.  According to data released by the CF on Tuesday, the largest number of claims was lodged in KwaZulu-Natal with 76, followed by the Western Cape with 75 and Gauteng with 30.  On Tuesday, DEL spokesperson Teboho Thejane said the CF had “enough resources” to compensate successful claimants and that the fund was already processing claims expeditiously.

Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive

Two SA Air Force staff test positive for Covid-19, Pretoria HQ temporarily closed

EWN reports that the South African Air Force (SAAF) on Tuesday temporarily closed its headquarters building in Pretoria after two employees tested positive for Covid-19.  The SAAF said that as a precautionary measure the building was evacuated and would undergo decontamination until further notice.  SAAF spokesperson Hilton Smith said it was still unclear where the two members contracted the virus, and they had since asked staff members to remain at home.  “We decided to close the building because we don’t know who they were in contact with and where they had contracted the virus,” Smith indicated.

Read the original of the above short report by Veronica Mokhoali at EWN

Covid-19 forces closure of two high schools in Durban after a teacher at each tested positive

Sowetan reports that two high schools in Durban were forced to close on Tuesday after a teacher at each school tested positive for Covid-19.  Matric pupils at Clairwood Secondary and Apollo Secondary, both in the south of Durban, were cautioned to remain at home one day after school resumed on Monday.  In a letter addressed to parents, Apollo’s governing body chairperson advised that an educator, who had not reported to school on Tuesday, had tested positive for Covid-19. When reporting to school last week, the educator had mostly been confined to the staff room and admin areas.  All academic activities at the school ceased with immediate effect and all teachers were due to be tested on Tuesday.  Clairwood principal Yugan Naidoo also issued a letter to parents on Tuesday to inform them that a teacher who had been at school last week and who had been in contact with staff members had tested positive for Covid-19.  The educator did not report to school on Monday and was never in contact with pupils.  Pupils were released from school at 10am on Tuesday and the school will remain closed until further notice.

Read the full original of the report in the above regard by Orrin Singh on page 7 of Sowetan of 10 June 2020

ECONOMIC CONDITIONS / LOCKDOWN RESTRICTIONS

SA heading for ‘deepest contraction in a century’ as coronavirus pandemic triggers worst global recession since War

Engineering News reports that a new World Bank report warns that the South African economy will this year experience its deepest economic contraction in a century, with the country’s gross domestic product (GDP) forecast to slump by 7.1% on the back of “stringent but necessary” Covid-19 containment measures.  The bank’s forecast is more or less in line with the SA Reserve Bank’s (SARB's) most recent expectation of a 7% contraction for 2020.  Finance Minister Tito Mboweni is anticipated to provide an update to the National Treasury’s forecast when he releases a special adjustment budget on 24 June.  Other commentators, including Business for SA, are warning that SA’s GDP could shrink by between 10% and 16.7%, despite the R500-billion support package unveiled by government, as well as the various monetary policy measures taken by the SARB.  The dismal outlook for SA comes against the backdrop of the World Bank’s forecast that the global economy will shrink by 5.2% this year, representing the deepest recession since the Second World War.  It expects SA’s growth to rebound in 2021 with growth of 2.9%.  Severely constrained government resources could lead to a curtailment of critical public services and there are also growing concerns that the pandemic may cause a food-security crisis in the region, as border closures and trade restrictions disrupt trading in food and agricultural products.

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

Dining industry still in ICU, notwithstanding easing of lockdown restrictions under level 3

Moneyweb reports that while restaurants have been allowed to provide delivery services and more recently takeaway food and alcohol under Covid-19 lockdown Alert Level 3, the new normal has not been enough to cover a number of restaurants in the industry.  “It’s definitely a tiny breath but it has not taken us off a ventilator – we are still in ICU,” commented Grace Harding of the Restaurant Collective, an association representing sit-down restaurants.  Restaurant doors closed for over a month when the country went under a hard lockdown from 27 March.  Some reprieve was provided in May when Level 4 restrictions allowed for the sale and delivery of hot food.  From the beginning of June, this was extended to pick-up takeaways as well as the delivery of alcohol.  “It’s good but it’s not going to feed everyone,” noted Harding.  Wendy Alberts, CEO of the Restaurant Association of SA (Rasa), said the industry across the globe has been “completely decimated” by Covid-19.  “There’s been no relief for us.  We have had to completely transform our business models from the onset with delivery, and then with takeaways.  It’s not the standard business model [of what] we do,” she observed.  According to Rasa, there are about 23,000 restaurants in SA employing around 800,000 people.  The longer the restrictions remained, warned Harding, the more staff would have to be retrenched when restaurants did open because the businesses would be under pressure to manage costs.

Read the full original of the report in the above regard by Tebogo Tshwane at Moneyweb

Other internet posting(s) in this news category

• Opinion: We owe it to ourselves to revive SA’s ailing textile sector, at BusinessLive

RESTRUCTURING

Amsa stands by decision to mothball its Saldanha Works

Business Report writes that ArcelorMittal SA (Amsa) is standing by the decision to wind down its Saldanha Works, saying it was unavoidable as rocketing input costs threatened the viability of the entire Amsa South African operation.  CE Kobus Verster indicated in the 2019 annual report released on Tuesday that the plant had almost always been a centre of excellence and the ceasing of its operations was by no means a reflection on the performance of management and employees.  "However, the reality is that Saldanha Works had lost its cost advantage which resulted in it no longer being competitive in international export markets,” Verster pointed out.  The company noted that iron ore costs at Saldanha Works had more than tripled between 2010 and 2019.  In terms of electricity usage, the plant’s costs had jumped by 218% in the past decade.  “Despite management’s strenuous efforts to seek relief from excessive input costs, no meaningful amelioration was achieved.  The decision to put Saldanha Works on care and maintenance could no longer be avoided,” the company pointed out.  Around 1,200 positions are set to be lost as a result of the decision to wind down operations last November.

Read the full original of the report in the above regard by Dineo Faku at Business Report

BUSINESS RESCUE / LIQUIDATIONS

SA Express escapes final liquidation, for the present

Reuters reports that state-owned airline SA Express escaped liquidation on Tuesday, after a judge granted a three-month delay in liquidation proceedings, giving the government more time to clarify its plans for the domestic and regional carrier.  SA Express was placed under provisional liquidation in April after its business rescue practitioners (BRPs) said they could not secure funding for turnaround efforts.  But lawyers for the BRPs asked the High Court to delay a hearing on whether the airline should be finally liquidated, citing a letter from the Department of Public Enterprises that referred to an allocation of R164-million in the fiscal year that commenced in April, subject to certain conditions.  The lawyers said that was a sign that the "government is contemplating a form of 'restart' for the operations of the airline" and that delaying the hearing would allow "national executives to roll out proper plans".  The request to delay the hearing was supported by the provisional liquidators, as well as trade unions and creditors.  SA Express has not paid salaries since February, prompting some of its employees to protest in recent days.

Read the original of the report in the above regard by Engineering News

Numsa and Sacca say they have found possible investor for embattled airline SA Express

Engineering News reports that the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) have jointly “noted” that the High Court has extended the provisional liquidation order for state-owned regional airline SA Express.  The provisional liquidation order was originally meant to have been made final on 9 June, but has been extended until 9 September.  According to the unions, the court granted the extension because they have found a possible investor in the airline from the United Arab Emirates (UAE) and consequently approached the business rescue practitioners (BRPs) and the Department of Public Enterprises (DPE) to explore that possibility.  “This extension will allow the investor to meet with DPE and hopefully come together on an agreement about the future of the airline.  We understand the frustration of employees at SA Express who have not had an income since the end of February, and have been protesting out of frustration.  This is why we are doing everything possible to find alternatives to liquidation, because we know it would worsen the situation for workers and their families,” said Numsa and Sacca. “

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

Other internet posting(s) in this news category

• MPs lash SA Express liquidators for missing parliamentary oversight meeting, at Moneyweb

UIF’S TERS BENEFIT

Almost 700,000 applications for UIF’s Covid-19 not paid in April because employees weren’t registered with the fund

Business Insider SA reports that last month almost 700,000 applications from companies for special Covid-19 payouts from the Unemployment Insurance Fund (UIF) failed because their employees were not registered with the fund.  More than 113,000 businesses submitted Covid-19 Temporary Employer/Employee Relief Scheme (Ters) claims for 697,418 employees who were not on the UIF data base.  The companies have to register the employees with the UIF before they can claim.  The UIF said it was concerned about the high number of undeclared workers on whose behalf employers were putting in claims.  "For us to pay any claim we must find the employee on our system and it is the employer’s duty to declare the employee to us," the UIF’s Makhosonke Buthelezi indicated.  The applications for May’s Ters payments opened two weeks ago, and so far there have been unsuccessful applications for at least 76,599 workers who do not appear on the database.  Last month, the rules changed in respect of who is eligible for the Ters payments.  While at first only companies who paid UIF contributions could get the payouts for their workers, now employees whose employers didn’t register for UIF can also apply for payments, directly from the UIF. Employees who are registered for UIF, but whose employers didn't apply for the Ters payments, can now also apply directly with the UIF.

Read the full original of the report in the above regard at Business Insider

UIF relief payment delays forces bus drivers to cash in pensions

SowetanLive reports that workers in various sectors have been hit by the delays in the payment of the Unemployment Insurance Fund’s (UIF’s) Covid-19 Temporary Employer/Employee Relief Scheme (Ters), including some in the transport sector.  The government introduced the scheme to help millions of workers who have lost income due to the outbreak of the Covid-19 pandemic.  Jaco Potgieter of Krugersdorp has been working as a bus driver for five years.  His employer, Bus 2000, applied for the relief, but he has yet to receive payment.  This put so much strain on Potgieter's finances that on Monday he resigned from the company to cash in his pension and keep his family afloat.  Johannes Mathews, who has worked at Davey's Passenger Transport for 22 years, is also struggling to make ends meet as he too is struggling to get UIF relief monies.  According to Gary Wilson, general secretary of the SA Passenger Bargaining Council, 120 applications were made by the council on 29 and 30 March on behalf of employers.  After the applications were made, only 98 companies got paid and the other 22 are still waiting for their payment.  The 22 companies employ about 5,000 workers, including Potgieter and Mathews.  But, according to UIF commissioner Teboho Maruping, over 425,000 employers have successfully applied for Ters and over R20.3bn has been paid out to more than 306 employers.

Read the full original of the report in the above regard by Penwell Dlamini at SowetanLive

Now is not a good time to resign to access pension savings

The Star reports that there is a new trend on the rise, namely that of financially desperate people resigning without new jobs lined up so that they can access the money saved in their pension funds.  But, according to Sanlam Business Development manager Sherwin Govender, it seemed logical, given the high unemployment rate, that if one has a job, to try not to lose it.  “Nobody knows for sure what the unemployment count will be in 2020 in the context of Covid-19.  Many industries will shrink this year.  It is likely many companies in those industries will close and thousands of jobs will be lost.  These numbers provide a stark reminder that jobs are scarce and finding a new one will not be easy if you lose the one you have,” Govender commented.  He went on to remark:  “When you resign, you are allowed to cash out the total of the savings accumulated in your employer’s pension fund, but you will pay a large sum in taxes.  The tax laws around cashing out your pension fund are in place to dissuade you from doing so.”  He added that resigning from a job purely to access a pension came with huge risks and costs.  Govender advised instead that it one needed the money to pay debts, other options should be considered first, such as debt counselling or consolidation.  Also, financial advice from an accredited financial adviser should be sought.  National Treasury has estimated that three million to seven million workers could lose jobs this year, depending on the length of the lockdown and the time that it takes the economy to recover.

Read the full original of the report in the above regard by Edward West on page 5 of The Star of 10 June 2020

PROTESTS / INDUSTRIAL ACTION

Patients abandoned at Tafalofefe Hospital in Centane in Eastern Cape

DispatchLive reports that one of the Eastern Cape’s most important rural hospitals has become a ghost facility after doctors and nurses walked out on Monday, leaving patients to fend for themselves or rely on managers for treatment.  The decision by most of the health workers at Tafalofefe Hospital in Centane to abandon their stations brought home the reality of an ongoing health crisis fuelled by a stand-off between the provincial department of health (DOH) and health workers.  The DOH has come under fire from unions for not providing adequate personal protective equipment (PPE), while a culture of fear of infection is rife among medical personnel who refuse to put their own lives at risk.  On Monday and Tuesday, patients at the hospital watched helplessly as health workers went home or embarked on protest action outside the building.  The more than 100 people working at the hospital are demanding proper protective gear, more testing kits, the hospital to be disinfected, the decontamination of work stations, and managers to refrain from instructing staff who test Covid-positive not to disclose their status to colleagues.  On Monday afternoon, only a few workers were on site, as most had gone home.  By Tuesday afternoon, staff had still not returned to work and were instead protesting outside the hospital.  A spokesperson for Eastern Cape health MEC Sindiswa Gomba refuted claims that a hospital clerk had died after contracting Covid-19 and said the deceased employee’s test results had come back been negative.

Read the full original of the report in the above regard by Bongani Fuzile at DispatchLive

In a labour-related protest on Tuesday, Ekurhuleni traffic officers blocked N3, bringing traffic in Germiston to a standstill

The Star reports that traffic in Germiston, Ekurhuleni, was brought to a standstill on Tuesday as traffic officers protested about several labour-related issues at the Ekurhuleni Metro Police Department (EMPD).  A large convoy of more than 30 EMPD vehicles brought traffic to a halt on the N3 highway approaching Germiston.  The officers parked in the middle of the highway and halted traffic for about 30 minutes.  According to one officer, they were protesting because of unequal treatment in the department.  “There are people who are getting higher salaries than us even though we are doing the same duties, and there are people who are getting promoted because they know somebody, and not because they deserve a promotion,” he claimed.  Apparently, some officers receive different benefits to their peers.  Another claim is that salaries are much lower than in other municipalities.  SA Municipal Workers’ Union representative Nkosana Gould added that another issue was a prohibition notice allegedly issued by the Department of Labour indicating that the metro was non-compliant with lockdown regulations regarding health and safety.  A memorandum of demands was handed to MMC for Community Safety and the city was given until 19 June to respond, failing which the officers threatened to embark on a full strike.

Read the full original of the report in the above regard by Chulumanco Mahamba on page 2 of The Star of 10 June 2020