In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Monday, 22 June 2020.
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Cosatu wants finance minister to announce a huge stimulus plan in supplementary budget BusinessLive reports that trade union federation Cosatu wants finance minister Tito Mboweni to significantly increase spending when he tables his supplementary budget in parliament on Wednesday. The demand comes at a time when the government is experiencing severe fiscal constraints. The National Treasury expects the budget deficit to have grown to more than 14% for the current fiscal year. Cosatu wants Mboweni to announce a huge stimulus plan of not less than R1-trillion to rebuild the economy. “Anything less will not be able to stop an economic tsunami that is on the horizon. We can no longer accept an unemployment rate of 40% as normal, let alone one of more than 50%,” Cosatu’s parliamentary co-ordinator Matthew Paris stated. He added that stimulus funds for businesses must be conditional on them retaining and not retrenching workers. Moreover, incentives must be used to support businesses and industries which create new jobs. Cosatu also wants the Treasury to significantly reprioritise expenditure and shift funds to key departments in the front line in the fight against the Covid-19 virus. This includes money to the health department to hire additional health workers. The federation also believes that basic education needs more money. Parks added that Cosatu expected the government to honour the 2020 public service wage agreement. Read the full original of the report in the above regard by Lindiwe Tsobo at BusinessLive Mboweni faces battle with trade unions if he stands firm on plans to cut state wage bill City Press writes that Finance Minister Tito Mboweni seems headed for another major clash with trade unions if he stands firm on plans to cut the public sector wage bill when he tables his emergency budget in parliament on Wednesday. The budget has been necessitated by the havoc wreaked on SA’s finances by the coronavirus pandemic. Mboweni has already warned that the country will have to work with a zero-based budget, which means it will have to be drawn up from scratch and expenditure items will have to be justified in terms of absolute necessity. On Friday, Mboweni presented a National Treasury consultative document to Nedlac and all indications from the engagement point to government “yet again biting the bullet on the public wage bill and announcing major cuts to salaries and benefits in the next three years”. But, Mboweni risks infuriating trade unions, which last month called on him to reverse his decision not to honour the 2018 multi-year agreement whereby public servants were due to receive wage increases of between 4.4% and 5.4% from 1 April. In his February budget, Mboweni said there was not enough money in the fiscus to honour this year’s round of increases. Labour federation Cosatu and its affiliate Nehawu have called on Mboweni to use this “second chance” to make amends and fix his fractured relationship with workers. But, the economic and fiscal environment is vastly different now compared to February. At the time, global economic growth was expected to strengthen to 3.3%, with a growth of 3.5% for sub-Saharan Africa. The current reality is that the global economy is set to decline to -5.2%, while the sub-Saharan African economy is set to shrink to -2.8% Read the full original of the informative report in the above regard by Juniour Khumalo at City Press Other internet posting(s) in this news category
Steve Tshwete municipal manager gets 48% increase amid lockdown The Citizen notes that it was reported last week that the City of Johannesburg plans to vote a 6.4% pay increase for its councillors, much to the outrage of residents. But, Steve Tshwete Municipality in Mpumalanga has gone one better. The six senior managers of the municipality have voted themselves an average 16.8% increase. But, the real whopper is the municipal manager, whose salary has been bumped up by 48%. The rest of the staff will receive a 6.25% increase. Residents of the municipality will be lumped with an average increase of 9.5% on property rates, and increases of 8.1% for sewerage, 6.7% for refuse collection, 6% for water and 6.3% for electricity. Municipalities are sheltering behind a three-year agreement concluded in 2018 with the SA Local Government Association that allow for staff pay increases of CPI plus 1.25% this year, and a home owners’ allowance increase of 7%. But this agreement was concluded well before the lockdown, leaving cash-stumped residents to cover the municipality’s spending wishes. “It is unconscionable for Steve Tshwete Municipality to vote itself a 6.25% increase in staff pay when the rest of the country is going through incredible difficulties,” commented Tim Tyrrell of Organisation Undoing Tax Abuse (Outa). Read the full original of the report in the above regard by Ciaran Ryan at The Citizen
Business up in arms over ‘grossly unreliable’ Covid-19 relief fund administrative process BL Premium reports that business lobby group Business for SA (B4SA) said on Friday that the administrative process to access Covid-19 relief benefits has proved to be “grossly unreliable” and cumbersome. The Covid-19 Temporary Employer/Employee Relief Scheme (Ters), which is administered by the Unemployment Insurance Fund (UIF), was established in March to provide relief to those in formal employment who lost their income due to the Covid-19 lockdown. However, it has taken a lot of time for the benefits to be accessed by the intended beneficiaries, with the UIF blaming employers. A big complaint is that there is too much red tape for employers when applying for Ters benefits. But the labour department has blamed employers for providing inadequate and incomplete applications. On Friday, B4SA’s Robert Legh said they were “perturbed at the suggestion that employers should carry the blame for employees not receiving their Ters benefits timeously, when the administrative system has proven so grossly unreliable”. He described the online application system as “extremely user-unfriendly” and said the UIF call-centre operators were not adequately equipped to resolve many of the often technical queries that came from employers. UIF spokesperson Makhosonke Buthelezi said on Saturday that the UIF was working with social partners at Nedlac to address their concerns. He claimed that the Ters online application system currently “works perfectly”. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only). Read too, Business says labour minister Thulas Nxesi wrong on UIF claims, at Sunday Times Covid-19 ‘jackpot’ bonanza exposed as huge UIF ‘fraud’ comes to light Sunday Times reports that nearly R6m in Covid-19 relief funds, which was intended for 200 workers, were diverted to one man in what Asset Forfeiture Unit (AFU) investigators have called a glaring instance of fraud and money laundering. In what appears to be a manipulation of the Unemployment Insurance Fund (UIF) relief system, a large labour broker’s Covid-19 Temporary Employment Relief Scheme (Ters) claim was paid to one man, namely Tshepang Phohole. In an instant he went from having R12 in his account to more than R5m, much of it then quickly funnelled to friends. Within five days he had blown through nearly R5.7m. The AFU and police are now probing the UIF to establish whether employees acted in concert with Phohole. On Friday, the graft-busting unit of the National Prosecuting Authority (NPA) secured a preservation order, freezing money in 28 bank accounts. The NPA’s Sipho Ngwema said: “We placed our focus on securing the stolen money as quickly as possible. Law enforcement agencies have come together to form an oversight structure which seeks out Covid-19-related corruption and that is how this incident was picked up.” The cash was allegedly diverted to Phohole after a system change at the UIF, in terms of which claims could be paid directly to individuals rather than to their employers. The R5.7m was meant for employees of Pretoria labour broker CSG Resources. The firm submitted its application to the UIF and, inexplicably, the entire amount was paid into Phohole’s bank account. Read the full original of the report in the above regard by Jeff Wicks on page 1 of Sunday Times of 21 June 2020 Far-reaching judgment declares BEE criteria used for granting Covid-19 relief to businesses ‘vague’ and thus invalid BL Premium reports that in a far-reaching ruling that will have significant implications for the government’s Covid-19 economic relief programmes, the High Court in Pretoria has ruled that “race, gender, youth and disability” must be taken into account in the awarding of state relief to businesses stricken by the pandemic. However, the judges found on Friday that the state’s criteria for evaluating these factors were “vague” and therefore unlawful and invalid. The full bench referred the criteria used in the distribution of relief funds to businesses back to small business development minister Khumbudzo Ntshavheni for “reformulation” — with a specific order that she “must take into account race, gender, youth and disability”. The decision will have no effect on funds previously awarded to distressed businesses, but will prevent future relief from being awarded until such time as the invalidated criteria are reformulated. It is not known if the government will appeal the ruling. The relief scheme was set up by the government to assist small and medium enterprises hit hardest by the Covid-19 pandemic. After it emerged that empowerment criteria would be used in determining how relief would be allocated, the DA sought an interdict blocking Ntshavheni from considering such criteria. While the judges dismissed that application, they raised concern over the “vague” way the broad-based BEE (BBBEE) criteria had been formulated by the state. Read the full original of the report in the above regard by Karyn Maughan at BusinessLive (paywall access only). Read too, DA loses court bid to stop government using race, BBBEE status as criteria for Covid-19 aid, at News24 Several labour centres shut after employees tested positive for Covid-19 BusinessLive reports that the Department of Employment & Labour (DEL), which administers the Covid-19 relief funds, has had to shut several offices after employees tested positive for the virus. This could lead to further delays in the processing of applications for the Covid-19 Temporary Employer/Employee Relief Scheme (Ters), administered by the Unemployment Insurance Fund (UIF). There have been ongoing complaints from the business sector and employers about the DEL’s capacity to expeditiously process claims. In the Western Cape, the epicentre of the coronavirus outbreak in SA, the DEL said on Wednesday that the Mitchells Plain labour centre, with its satellite office in Nyanga, would remain closed for an additional week. They are expected to reopen on 25 June. The Paarl labour centre has also been closed since Wednesday following a positive case, and was due to reopen on 22 June. The UIF head office in Pretoria also closed its doors on Wednesday. As the UIF administers Ters, the HO closure is expected to have an impact on the fund’s operations. But, a DEL spokesperson said payment of benefits would continue. In the Eastern Cape, the labour centre in East London resumed operations last week after it was closed due to a coronavirus case. Meanwhile, the Home Affairs head office in Pretoria had to be vacated on Thursday after a general worker tested positive for Covid-19. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive Other internet posting(s) in this news category
Glencore and Merafe begin retrenchment consultation process affecting various operations Mining Weekly reports that the alloys division of Glencore Operations SA and Merafe have commenced a consultation process in terms of sections 189 and 189A of the Labour Relations Act (LRA) with employee representatives and recognised trade unions. Merafe stated on Friday that the operations impacted by the process were Lydenburg Smelter, Wonderkop Smelter, Boshoek Smelter and Lion Smelter. The process would also impact the Eastern and Western Chrome Mines. The current consultation process at the Rustenburg Smelter, advised on 20 January, would continue. Merafe advised that the process had been embarked upon as a result of the worsening operating environment across the SA ferrochrome industry, including unsustainable electricity pricing. It said that despite significant investments in an attempt to make the operations more competitive, the parties had continued to come under substantial operational and financial pressures. Merafe added that the parties viewed their engagement with the employee representatives and recognised trade unions at its operations as an ongoing process and all alternatives would be considered. Read the full original of the report in the above regard at Mining Weekly Return of foreign mineworkers will be delayed Reuters reports that the Minerals Council SA (MCSA), previously called the Chamber of Mines, has flagged that the process of facilitating the return of foreign mine workers as lockdown restrictions ease will take longer than expected due to delays at the Mozambique and Lesotho border posts. Senior executive Nikisi Lesufi told MPs on Friday that about 3,500 employees from Mozambique and about 8,500 from Lesotho were prepared to return to work. “The border posts in Mozambique can only process 400 employees a day. We are going to take two to three weeks to process the employees in Mozambique. In Lesotho, there are close to 8,500 employees and three border posts. Each one of them can only take 130 employees a day. It will take much longer to process employees in Lesotho over a 20- to 25-day period to bring the workers back,” Lesufi indicated. He advised that the plan would be endorsed by the National Joint Operational and Intelligence Structure. Lesufi advised that about 10% of SA’s 400,000 mining employees came from neighbouring countries, particularly Lesotho and Mozambique. On arrival in SA, the mineworkers were expected to be quarantined for two weeks. Read the full original of the report in the above regard by Dineo Faku on page 9 of Business Report of 22 June 2020
New structure for public protector’s office will see number of unfunded posts cut by 125 and R48m saved BL Premium reports that the Office of the Public Protector has developed a new organisational structure which will result in a reduction of 125 posts and save R48m. Details of the new structure were outlined by acting CEO of the office, Yalekile Lusibane, in a briefing to MPs on Friday. The current structure was approved in 2017 and was reviewed to address imbalances between core and support functions. Lusibane indicated that “shrinking financial resources necessitated a comprehensive review of the structure as the institution is required to achieve more with minimal resources.” The structure provides for 707 posts, 351 funded and 356 unfunded, while the revised structure provides for 582 posts of which 351 are funded and 231 unfunded. The 125 cut will be to the number of unfunded posts. The reductions will take place in the sections of administrative support (60), assistant investigators (49) and corporate services (16). In the new structure, 115 of the 231 unfunded posts will be investigation posts, including three chief investigators, 33 senior investigators and 79 investigators. Lusibane highlighted the heavy workload of public protector investigators and that complaints were becoming more complex. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (paywall access only) Stats SA hobbled by high staff vacancies, with quality of the data being compromised BL Premium reports that more than one in five vacancies are unfilled at SA’s official data collection agency, Stats SA, potentially putting the credibility of national statistics used by policymakers and business leaders at risk. “The biggest effect is on the work of data collection in that it has an adverse effect on the quality of the products the organisation delivers,” statistician-general Risenga Maluleke told MPs on Friday, adding that work programme targets had either been dropped or reprioritised. This situation is likely to deteriorate as Stats SA prepares for the 2021 national census. Some 60% of the posts for top management were vacant at the end of March, while about 52% of senior management posts were vacant. Some of these have been filled by acting managers. Though 36% of the total number of vacancies are in the administration department, there are gaps in crucial units such as economic statistics (16%), population and social statistics (25%) and statistical support and informatics (25%). Questioned by MPs about the reasons for people leaving Stats SA, Maluleke said it was mainly for higher salaries and to retire. It has not been possible to replace the retirees. Stats SA, like other government departments, faces budget cuts, but Maluleke has not yet been informed of the size of the budget cut decided by the Treasury. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (paywall access only) Get the right cadre for the job because service delivery ‘leaves much to be desired’, Dlamini-Zuma tells municipalities The Citizen reports that Minister of Local Government and Traditional Affairs and ANC National Executive Committee member Nkosazana Dlamini-Zuma had laid down the law by asking the ANC to appoint the right cadres with the right skills to do the jobs in municipalities. Addressing a dialogue organised by the OR Tambo School of Leadership on Sunday, the minister called for a change in the manner that cadres were deployed to municipalities if the ideal of a developmental state was to be realised. “We need a new attitude on how we deploy our members to the local sphere of government. Cadre deployment is good but it must be done properly. All those deployed must possess the required skills and capacity to do the job,” Dlamini-Zuma pointed out. She said it was an anomaly that the ANC deployed the most junior members to run municipalities and that senior members of the party should instead be appointed. Moreover, there was a worrying attitude in SA where members joined local government as a last resort deployment. The quality of the service delivery to the people in most cases left much to be desired, especially in rural areas and urban townships, Dlamini-Zuma lamented. Read the full original of the report in the above regard by Eric Naki on page 2 of The Citizen of 22 June 2020
Taxi strike on Monday hits Gauteng commuters hard TimesLIVE reports that thousands of commuters across Gauteng were left stranded on Monday morning after the SA National Taxi Council (Santaco) embarked on a strike to protest against the R1bn government relief package for the industry. Roads were barricaded, and in one incident a Tshwane metro bus was hijacked. Santaco claimed in a letter they “were expecting at least R20,000 per vehicle” in Covid-19 relief funds, but would receive significantly less out of the package announced by transport minister Fikile Mbalula. The only thing stranded commuters could do was hope they could find alternative transport to get to work on time and avoid the prospect of “no work, no pay”. One commuter at the Phumulong taxi rank in Atteridgeville observed: “We have been told to come to work because they said either you come or you don't get paid. We don't know what taxi drivers are protesting for. When we use buses they remove us. Why are they disrupting us? We have lost our salaries for today. If they continue tomorrow it means we will be losing more.” There were no taxis operating at that rank and the area resembled a ghost town. Read the full original of the report in the above regard by Iavan Pijoos and Shonisani Tshikalange at TimesLIVE. Read too, Santaco taxi shutdown leaves Gauteng commuters stranded and frustrated, at EWN Other internet posting(s) in this news category
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