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, 19 June 2020.


TOP STORY – GAUTENG TAXI STRIKE

Taxi associations vow to shut Gauteng down on Monday

City Press reports that from Tshwane to the Vaal and from Ekurhuleni to the West Rand, taxi commuters across Gauteng will have to find alternative transport on Monday as operators plan a province-wide shutdown.  The shutdown will be in protest against government’s R1.135 billion relief fund announced on Friday, which operators described as a “pittance” that would not address the effects of the Covid-19 national lockdown regulations on the industry.  While national taxi body Santaco confirmed that other provinces would not take part in the shutdown, over the weekend Gauteng taxi associations held extensive discussions to make the shutdown effective.  While taxi associations have rejected government’s relief fund, national bodies have indicated that they want to engage with Transport Minister Fikile Mbalula.  However, local associations in Gauteng have chosen the militant approach of shutting down public transport.  George Maleke, spokesperson for the Top Six Taxi Management task team, said that the industry felt undermined by government’s relief offer because taxis had been operating at a loss throughout the lockdown.  Social distancing regulations mean taxis are allowed to carry only 70% of their maximum capacity.  

Read the full original of the report in the above regard by Giyani Shivambo and Poloko Tau at City Press. Read too, Mbalula slams Santaco’s planned shutdown in Gauteng as counterproductive, at EWN. And also, Taxi industry will get R1.135 billion bailout, but strict rules will apply, at The Citizen

Other internet posting(s) in this news category

  • More than R1 billion allocated for taxi industry relief, says Minister Fikile Mbalula, at News24


HEALTH & SAFETY

Covid-19 safety regulations for personal care services unveiled on Friday

TimesLIVE reports that Small Business Development Minister Khumbudzo Ntshavheni on Friday gazetted directions for the personal care services sector following President Cyril Ramaphosa’s announcement last Wednesday that salons could reopen under “advanced level 3" of the Covid-19 lockdown.  Businesses that can reopen with immediate effect include hairdressers, barbers, nail bars, beauty parlours, tattooists and body piercers, but the move comes with a string of safety regulations.  Employees and owners above the age of 60 or with co-morbidities must be discouraged from working and any owner/worker or customer who has flu-like symptoms must not be allowed to work or to enter the salon.  Business owners have been instructed to “maintain a register of customers and persons who enter the salon on each day for traceability”.  They should also “use a booking system for treatment appointments”.  The businesses must have hand sanitising/handwashing stations for customers before they enter the premises.  Business owners will have to go an extra mile on hygiene.  They must clean their basins after each client and the basin area must be deep cleaned at the end of each business day.  Each piece of equipment must be sanitised or washed before and after use.  Fresh and clean towels must be used for each customer and windows/doors must be keep open, if possible, to ensure adequate ventilation.

Read the full original of the report in the above regard by Philani Nombembe at TimesLIVE

Still no Covid-19 regulations for the reopening of restaurants

Maroela Media reports that while the personal care services sector is celebrating that it can resume work after some three months, restaurants that offer sit-down meals are still waiting for the publication of Covid-19 safety regulations.  Wendy Alberts, CEO of the Restaurant Association of SA, said that they have been advised that uninterrupted work was being done to get the regulations finalised.  President Cyril Ramaphosa announced on Wednesday that more sectors would be allowed to reopen under revised lockdown rules.  On Friday, regulations covering the personal care services sector were published in the Government Gazette.  But the regulations for restaurants have not yet been announced and there has been no indication when they can be expected.  Presently, meals can only be delivered or picked up at eating places.   Some restaurants have had to close permanently due to the ban and it is feared that others will follow.  Alberts said they hoped that this week restaurants will be permitted to fully reopen.

Read the original of a short report in the above regard by Christel Cornellisen at Maroela Media. Read too, Clarity on further easing of lockdown expected this week, at BusinessLive

80% of staff at restaurants unemployed due to Covide-19 lockdown

The Citizen reports that the Covid-19 lockdown has severely crippled the restaurant business and despite partial reopening of the industry, the daily closures of restaurants have left 80% of workers unemployed.  On Wednesday, President Cyril Ramaphosa announced further reopening of sectors during Level 3 lockdown, including restaurants for sit-down meals instead of regulated delivery or collection.  But according to Restaurant Association of SA chief executive Wendy Alberts, the industry has already been destroyed.  She said she received between 10 and 15 messages a day from restaurant owners who were closing their business.  SA has about 23,000 restaurants employing at least 800,000 people.  “So far it is about 700 closures.  We are currently in a situation where we have 80% of our staff unemployed,” Alberts indicated.  It was too late for a recovery plan as people were unemployed due to business closures, she pointed out.  Ramaphosa emphasised that agreed stringent safety requirements would have to be in place before a business could reopen.  But should government reinstate the former regulation that stipulated only 50 customers at a time, restaurants would not survive, said Alberts.  “All the proposals of protocol and measurements put in place to indicate that we can safely open would have been wasted,” she remarked.

Read the full original of the report in the above regard by Rorisang Kgosana on page 4 of Saturday Citizen of 20 June 2020

Other internet posting(s) in this news category

  • Health workers sound alarm bells as Covid-19 virus spirals in Western Cape and Eastern Cape, at News24
  • Special Investigating Unit closes three offices after employee tests positive for Covid-19, at News24
  • Covid-19 hits more than 150 SA schools, at SowetanLive
  • Covid-19 shuts more Gauteng schools as pupils, teachers test positive, at The Star
  • Security guard shot dead during robbery at primary school in Mpumalanga, at News24


COLLECTIVE BARGAINING / SALARY INCREASES

Samwu “disgusted” by Treasury’s call on municipalities to apply for exemptions from standing multiyear wage deal

BusinessLive reports that the SA Municipal Workers’ Union (Samwu) says calls by the National Treasury to urge municipalities to apply for exemption from a multiyear wage agreement will weaken unions’ bargaining position and set a bad precedent.  Municipal workers are due for a wage increase of 6.25% on 1 July as part of the last leg of a three-year wage agreement signed at the SA Local Government Bargaining Council in 2018.  On Thursday, Samwu said it was “shocked and disgusted by the Treasury’s attempts to collapse” collective bargaining in the local government sector.  Apparently at a meeting of the bargaining council on Wednesday, a delegation from the Treasury “unashamedly repeated their call that municipalities should apply for exemption from the collective agreement”.  The delegation used the Covid-19 pandemic as the “motivation” for municipalities to renege on the wage agreement, Samwu general secretary Koena Ramotlou said.  The union said it expected all of the 257 municipalities to implement salary increases on 1 July, failing which Samwu members would strike to force them to comply with the binding collective agreement.  Karen Heese, an economist at Municipal IQ, commented that the coronavirus outbreak had “profoundly” compromised local government, and that local government finances had already been under strain before the pandemic began, with above-inflation cost drivers.

Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive. Read too, Samwu concerned as City of Cape Town workers face unpaid leave due to Covid-19, at The Citizen


MINING LABOUR

Police hunting for gunmen after two illegal miners killed and other wounded in Florida on West Rand on Thursday

The Citizen reported on Saturday that police were searching for three gunmen after two people were murdered and six others wounded in an open veld in Florida, west of Johannesburg, on Thursday.  Allegedly, three armed men wearing balaclavas waited in the veld near an old mine.  Police spokesperson Brigadier Kay Makhubele said the eight victims, believed to be illegal miners or zama zamas, were making their way from a taxi to the mine when the assailants approached them.  Makhubele said the eight men from Lesotho were robbed of money and their cellphones before being shot.  Two died, while six were taken to hospital.  The three suspects went on the run and police confirmed they had mobilised maximum resources to trace the men.

Read the original of a short report in the above regard on page 8 of Saturday Citizen of 20 June 2020


RESTRUCTURING / RETRENCHMENTS

Jobs on the line at ArcelorMittal SA in ‘large-scale restructuring’ due to Covid-19

BusinessLive reports that ArcelorMittal SA (Amsa) said on Thursday that jobs at the steelmaker were on the line due to the effects of Covid-19 on the economy.  “A large-scale restructuring is contemplated, and the number of jobs impacted will depend on the alternatives identified and agreed to mitigate the impact.  The final outcome and number of positions affected is subject to a formal consultation process,” the company indicated.  Amsa pointed out that the cost-saving measures it had initially put in place would not be enough due to the unprecedented effect of both the virus and the associated national lockdown.  “Further, the company anticipates that it will take some time for crude steel production levels to return to historical levels or planned levels of 2020.  Therefore, a significant part of the company’s available production capacity may remain unutilised for an extended period,” Amsa noted in a statement.

Read the original of a short report in the above regard by Odwa Mjo at BusinessLive

Cell C may retrench 40% of employees, involving 960 positions

BusinessLive reports that Cell C has confirmed that it has begun the preliminary process of cutting jobs in a bid to streamline its operations, with 40% of posts reportedly on the line.  On Friday, the mobile operator said it had “reached a difficult decision and initiated discussions with junior management and semi-skilled staff to implement a restructuring of its operations so as to align the organisation with its new operating model”.  Cell C went on to indicate that earlier this year senior management positions were aligned to this revised operating model and new organisational structure.  The process was completed in May and resulted in 30 positions being affected.  About 40% of jobs or 960 positions out of 2,500 may now be on chopping block.  Cell C said no final decision had been made on the retrenchments and the consultation process with affected employees “is meant to obtain input for consideration before a final decision is made”.  The operator added that it was also looking at a number of ways to re-skill some of the affected employees.  The company has struggled to turn a profit since its founding in 2001 and has operated under a mountain of debt for years.

Read the full original of the report in the above regard by Mudiwa Gavaza at BusinessLive

The gloves are off if you cut jobs, CWU warns SABC

BusinessLive reports that the Communication Workers Union (CWU) is challenging the planned retrenchment of 600 employees at the SA Broadcasting Corporation (SABC).  The public broadcaster announced on Thursday that it had issued a notice of possible job cuts amounting to as much as a fifth of its workforce.  Affected employees would be invited to make representations during a consultation process facilitated by the CCMA, the broadcaster said.  The move to reduce its staggering wage bill, comes after management recently approved above-inflation salary increases of 5%-6%.  The SABC pointed out that its notice followed the launch of its new operating model — a strategic renewal initiative aimed at transforming the organisation into a “financially sustainable, self-sufficient and fit-for-purpose public broadcaster”.  The CWU said the latest proposed retrenchments had taken workers by surprise.  “We met SABC management last week to discuss the turnaround plan, including a skills audit, which is still ongoing.  There was no mention of retrenchments then,” said CWU general secretary Aubrey Tshabalala.  He alleged that management and the board were acting in bad faith and lacked integrity.  “The gloves are off.  We will look at the proposal and we will challenge.  This will be the biggest fight,” Tshabalala warned.

Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive. Read too, Fed-up SABC employees tired of retrenchment threats, at City Press

‘Sasol 2.0’ future business model includes staff cutbacks

Business Report writes that Sasol said on Thursday that it planned to lay off an undisclosed number of employees at its SA operations ahead of a major organisational shake-up aimed at shielding the group from the oil price volatility and the coronavirus pandemic fallout.  The petrochemical giant told investors that it would implement a “Sasol 2.0” future business model that would focus on its core portfolios of chemicals and energy and that it would exit all oil growth activities in West Africa.  The group said the organisational redesign was aimed at ensuring that it was sustainable, despite lower oil prices, which would have an impact on its workforce structure. “We have accordingly issued a notice to our representative trade unions in South Africa in terms of section 189 of the Labour Relations Act number 66 of 1995, inviting them to enter into consultation with Sasol,” the group indicated.  It added that a similar process would be followed with the relevant recognised bodies in other jurisdictions.  Sasol, which employs 30,000 people worldwide, said the reset of the strategy necessitated a revised business model that would be announced in the second quarter of the 2021 financial year.

Read the full original of the report in the above regard by Dineo Faku on page 13 of Business Report of 19 June 2020


BUSINESS RESCUE

Numsa and Sacca plan to ground Thursday’s meeting of SAA creditors on business rescue plan

Business Report writes that the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) on Friday said they were planning to interdict Thursday’s scheduled meeting of creditors to adopt the SA Airway (SAA) business rescue plan.  The unions have rejected the proposed 3,700 job cuts to rescue SAA and have accused Department of Public Enterprises (DPE) Minister Pravin Gordhan of engaging with them in bad faith.  “We have accordingly lost all trust in the DPE and more particularly in Minister Gordhan, as an honest and competent partner in our endeavour to save SAA.  We reject with contempt the announcement that only 1,000 employees will be retained in the business rescue practitioners’ plan as it is tantamount to unleashing a job loss bloodbath,” the unions stated.  Secured lenders and concurrent creditors will decide the future of the airline when they vote on the proposed business rescue plan.  SAA’s joint business rescue practitioners (BRPs) Siviwe Dongwana and Leslie Matuson have projected that 1,000 employees would be retained, while the remaining employees would be retrenched.  The BRPs said that in terms of the envisaged ramp up, it was anticipated that the final staff number would increase in accordance with the market conditions and passenger demand to 2,892.  Employees who accepted voluntary severance packages or who were retrenched would not be precluded from applying for such positions as they became available.

Read the full original of the report in the above regard by Dineo Faku and Siphelele Dludla at Business Report. Read too, Unions slam rescue plan for SAA, on page 5 of City Press Business of 21 June 2020. And also, Mango’s rivals condemn plan to bail it out as part of SAA rescue, at Business Times (paywall access only)


REMUNERATION

Trade union Uasa taking Denel to court over non-payment of salaries

Engineering News reports that Uasa is launching an urgent application in the Labour Court against Denel over the non-payment of workers’ salaries by the state-owned enterprise (SOE).  The trade union has also written to the CEO of the arms manufacturer on behalf of its members seeking clarification regarding their salaries.  “We know most Denel employees did not receive full salaries and were only paid a percentage of their salaries for May 2020.  No further amounts have been received or discussions held as to when the rest of the salaries will be paid to the employees,” Uasa indicated.  The union pointed out that Denel’s failure to pay workers their full salaries last month was a “flagrant breach” of their employment contracts and also represented a contravention of the 1997 Basic Conditions of Employment Act.  “We have also written to the Minister of Public Enterprises, Pravin Gordhan, to inform him of the legal action we are now undertaking against the SOE and asking for the government as a shareholder in Denel to intervene,” the union reported.

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

Other internet posting(s) in this news category

  • Old Mutual reaches out to its dissenting shareholders over remunerations, at Business Report


WORKPLACE CORRUPTION / STATE CAPTURE

Transnet implements lifestyle audits of staff to ‘rebuild trust’

BusinessLive reports that Transnet is subjecting its employees to lifestyle audits as part of efforts aimed at cleaning up the state-capture rot at the company.  The freight rail and logistics company is among a swath of state-owned enterprises that have been hollowed out by years of corruption and mismanagement.  However, since a new board was appointed in 2018, and under the chairmanship of Popo Molefe, Transnet has been moving to clean up the entity and take action against those implicated in maladministration and malfeasance.  On Thursday, Transnet said its senior and executive management were the first category of employees to undergo the initial phase of the lifestyle audit.  The lifestyle audits form part of a number of initiatives aimed at rebuilding trust within the company “and between ourselves and the public we serve”.  Transnet spokesperson Ayanda Shezi the audits were in line with directives issued by the government and would be rolled out over time, prioritising functions such as procurement, IT and security.  Shezi advised that the process was independent and confidentiality was assured, while the response had been “overwhelmingly positive” as more than 90% of the over 55,000 employees had submitted themselves to the process.  In instances where discrepancies were identified, “individuals will be given an opportunity to provide additional information or clarification before any further action is taken”.

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

 


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