This 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.
In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Tuesday, 23 June 2020.
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President Ramaphosa warns of more job losses and difficult decisions ahead Bloomberg reports that in his weekly newsletter on Monday, President Cyril Ramaphosa warned of widening job losses as the effects of the national shutdown to curb the spread of the coronavirus batters the SA economy. He noted that companies in the aviation, construction, entertainment and hospitality sectors have indicated plans to cut jobs because of heavy losses experienced in the past three months. Small companies were being hard hit and some businesses were closing down permanently, Ramaphosa stated. SA’s unemployment rate for the first quarter, due Tuesday, is forecast to rise to 29.7%, according to a survey of economists. “For a country which was already facing an unemployment crisis and weak economic growth, difficult decisions and difficult days lie ahead,” Ramaphosa warned. The economy could contract by 7% this year, according to SA Reserve Bank estimates. Finance Minister Tito Mboweni will give more details on the virus’s economic impact when he presents a revised national budget in parliament on Wednesday. Read the full original of the report in the above regard by Felix Njini and Prinesha Naidoo at Moneyweb. Read too, Ramaphosa warns of tough times, difficult decisions, unavoidable job losses, at Business Report Unemployment rate rose to highest level on record of 30.1% in first quarter of 2020 BusinessLive reports that SA’s unemployment rate rose to 30.1% in the first three months of 2020, reaching its highest level on record. The rise in joblessness was up from the 29.1% seen in the fourth quarter of 2019, Stats SA reported in the latest Quarterly Labour Force Survey (QLFS) on Tuesday. Using the expanded definition of unemployed, which includes discouraged work seekers or people who have given up looking for a job, unemployment rose to 39.7% in the first quarter. Most industries experienced job losses in the first quarter, with the finance sector shedding the most jobs, followed by community and social services, agriculture and transport. The increase in joblessness came largely in the months before the national Covid-19 lockdown measures, which came into effect on 27 March and all but halted economic activity. Though the economy began reopening at the start of June, the damage is expected to be deep. Several companies such as petrochemicals producer Sasol, retailer Edcon, mobile operator Cell C, and the state-owned SABC have announced intentions to lay-off workers. Read the full original of the report in the above regard by Lynley Donnelly at BusinessLive Employment in agriculture sector to be spared heavy job losses despite Covid-19 BL Premium reports that SA’s agricultural sector is likely to be spared from the heavy job losses anticipated in most sectors due to the economic shock of Covid-19 because it mostly remained open during the lockdown and expects a bumper grain harvest. SA’s agriculture, which is export-orientated, contributes about 3% to GDP and employs close to 900,000 people. Wandile Sihlobo of the Agricultural Business Chamber (Agbiz) observed that there could be some resilience in agriculture compared to other sectors because of two major reasons. Firstly, the sector was largely operational even during the strict level 5 lockdown, except for a few subsectors that have subsequently opened. Secondly, SA expects its second-largest grains harvest in the 2019/2020 season. Also, there is an expectation of a record citrus harvest, general improvement in output in other fruits following drought years, and also a recovery in wine grapes output. “In a nutshell, we expect the agricultural sector to show some level of resilience from a jobs perspective this year as the expected large output will mean labour will be required in the fields,” Sihlobo indicated. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (paywall access only) Amazon’s new hiring spree boosts SA as global call-centre destination Business Times writes that Amazon's announcement last week that it plans to hire 3,000 people in its local customer service division has provided a powerful boost for SA’s credentials in business process outsourcing (BPO). An Amazon spokesperson commented on Friday: Amazon has a long history in South Africa. We opened our Customer Service Centre in Cape Town 10 years ago, and the team has been delivering industry-leading customer service to customers around the globe ever since. We're excited to continue investing in South Africa and to bring our permanent headcount in the country to 7,000." The new hiring spree began a few days after a report was issued by Ryan Strategic Advisory naming SA the world's second-most desirable offshore customer service delivery site, for the third year in a row. Last year SA shared second position with India, and ranked below the Philippines. Both India and SA moved ahead of the Philippines this year. Ryan Advisory remarked: "Outsourcers in South Africa, along with the industry representative body (BPESA), have been possibly the most aggressive stakeholders of any country in the offshoring game in regards to investment promotion over the past 12-18 months. These efforts have included multiple delegations to Australia, the UK and North America. These initiatives are bearing fruit, as witnessed in this year's ranking." Read the full original of the report in the above regard by Arthur Goldstuck at BusinessLive. Read too, The case for more call centres in SA grows stronger, at BusinessLive (paywall access only)
Court gets tough on UIF relief fund fraud, freezes millions allegedly paid fraudulently into individual’s bank account The Star reports that North Gauteng High Court has sent a strong message that Covid-19 relief fund fraud will not be tolerated by freezing millions of rands allegedly fraudulently paid into in a bank account. The Asset Forfeiture Unit (AFU) obtained a preservation order for more than R3.2 million paid fraudulently or alternatively mistakenly paid into the bank account of Tshepang Phohole. A National Prosecuting Authority spokesperson said Phohole, an employee of a client of CSG Resourcing, was identified, together with numerous other employees of such clients, to have received a share of this Covid-19 UIF relief funding. CSG Resourcing, a labour broking company with numerous clients, applied for Covid-19 relief from the UIF in the amount of nearly R5.7m in respect of its clients. The funds were to be paid to more than 200 employees of different companies by CSG. An amount of R5,688,81 was to be paid into a nominated bank account of CSG, but was paid into an account held by Phohole. The payment was discovered by CSG after the relief funding was approved by the UIF, but did not reflect in its account. Following the discovery, the company reported the matter to the police. Initial investigations revealed that after receiving the funds, Phohole urgently transferred portions into numerous other bank accounts – apparently 28 in total – held by himself and other individuals. Investigations by the police into the matter continue. Read the full original of the report in the above regard by Zelda Venter on page 4 of The Star of 23 June 2020
SA's front-line doctors at risk of burnout due to Covid-19 pandemic TimesLIVE reports that according to SA's front-line doctors, their mental health has deteriorated in recent weeks, which has prompted a medical defence body to warn about the risk of burnout. With Covid-19 tightening its grip on the country, the Medical Protection Society (MPS), which represents 32,000 health-care professionals in SA, has conducted a survey of doctors' psychological wellbeing. A total of 346 doctors took part in the survey, which found that a third of them believed their mental health was worse when compared with two weeks ago. MPS reported that 60% of doctors said they were concerned about the health of their families and friends, 54% were worried about finances and 42% about their own health. The survey also found that 40% were worried about the health of their patients. Dr Volker Hitzeroth of MPS said: “Adrenaline will be carrying many health-care workers through this pandemic and help them to cope despite the exhaustion and tragedy they experience daily. It is when the crisis recedes and there is time to reflect that the accumulated stress and trauma may surface. This is the time health-care professionals will be most at risk and need support.” Dr Hitzeroth added that many were at risk of burnout set against a backdrop of an already burnt-out workforce, while others might suffer with depression and post-traumatic stress disorder. Read the full original of the report in the above regard by Suthentira Govender at TimesLIVE Fifty cash-in-transit security guards who tested positive for Covid-19 blame their company for infections SowetanLive reports that a group of 50 cash-in-transit employees who have tested positive for Covid-19 are blaming their company for being responsible for their infections. They claim the management of Fidelity Cash Solutions has been sitting on information for four weeks that one of their colleagues who recently died was infected with the coronavirus. One of the employees stated: "They kept it all a secret and didn't want us to test, so we all took it upon ourselves [to go and test] and on Thursday we took three quantums [taxis] and went to get tested. I got my results on Friday afternoon which came back positive, they told me to isolate for 14 days. All of us who went to get tested are positive, only two were negative. We were about 50." Their claim, which the company has refuted, is that they all got infected by a recently deceased colleague who worked as a security guard at the Hermanstad branch in Pretoria. Upon learning their status, the company apparently decided to dock the employees’ salaries while they were isolating. Following Sowetan inquiries, the company for the first time on Monday sent messages to the staffers, in which a regional manager said "the company has empathy and sympathy towards your current reported Covid-19 status". But she reiterated that salaries would be docked and indicated that if official confirmation of results was not submitted then absence would be regarded as unpaid leave. If the employees failed to contact their regional manager, absence would be treated as “abscontion”. Read the full original of the report in the above regard by Kgothatso Madisa at SowetanLive
PIC seeks clarification over AngloGold CEO’s repayment of joining bonus Bloomberg reports that the Public Investment Corporation (PIC), which is one of AngloGold Ashanti’s (AGA’s) top shareholders, has asked the gold producer to say what action it will take after chief executive officer Kelvin Dushnisky returned a bonus he had received for joining. The state investment manager wants the company to provide the details after Dushnisky repaid a $800,000 bonus he received for joining from Barrick Gold in 2018. AGA had made the payment to compensate for an annual bonus that Dushnisky would have received from Barrick. AGA indicted in its annual report published earlier this year that Dushnisky voluntarily repaid the $800,000 after he ended up receiving an incentive payment from Barrick, apparently amounting to $926,160. The PIC indicated that it had formally written to the AGA “to raise its concerns” related to the payments, adding that it was awaiting a “response on actions that will be taken by the company.” AGA hired Dushnisky in September 2018 to chart a new growth path for the producer. Since then, he has pushed a strategy to sell mines in SA and Mali in a shift to lower-cost and more profitable assets. Read the full original of the report in the above regard by Felix Njini and Loni Prinsloo at Moneyweb Other labour / community posting(s) relating to mining
Other general posting(s) relating to mining
Eskom unbundling ‘under threat’ over lack of consultation with trade unions City Press reports that the unbundling of Eskom into three separate companies may be derailed over trade union grievances about a lack of consultation. Solidarity is threatening an urgent court application after three trade unions, itself included, asserted that employees were not consulted about the unbundling of the power utility. The government last year released a reform “roadmap” according to which Eskom would be functionally split into three separate entities, namely electricity generation, transmission and distribution, before the end of the year. But last month, Eskom CEO André de Ruyter advised that the legal separation could possibly only be finalised in 2023. Eskom last week confirmed that Solidarity had submitted a grievance to the CCMA regarding the transfer of personnel from the group technology division to the three new divisions, because the unions were not consulted about the process. The National Union of Metalworkers of SA (Numsa) has also lodged a grievance with the CCMA, while the National Union of Mineworkers (NUM) is also opposed to the unbundling of Eskom without any consultation with employees. The three unions have moreover submitted a joint internal grievance with Eskom. The proposed transfers would affect about 1,400 employees, said Solidarity’s Thinus Jacobs, who also said that the union was considering an urgent court action to halt the transfer process. Labour expert Chris Jacobs advised the law very clearly required that employees be consulted when their employer planned to restructure, even when this was not meant to lead to retrenchments. Read the full original of the report in the above regard by Antoinette Slabbert at News24 Telkom plans restructuring as profit tanks, fixed-voice revenue declines Business Report writes that Telkom said on Monday that it planned a major restructuring after its profitability tanked on the deterioration in fixed-voice revenue as a result of the coronavirus pandemic. The company, whose subsidiaries include Gyro, Openserve and the Yellow Pages, announced it planned to restructure its programmes, cut costs through its restructuring programme and other cost levers to protect the profitability. Chief executive Sipho Maseko said the company needed to focus on managing its costs and acquiring profitable revenue. He indicated that the group would not pay a 14th cheque across its operations, as financial triggers had not been met. “We are entering tough times,” said Maseko, adding that the group would not pay annual salary increases during the financial year in review due to the pedestrian state of the economy and the need to manage affordability. Telkom has offered 2,271 employees voluntary severance packages at a cost of R1.18bn. Maseko also said that thus far 57 employees had tested positive for Covid-19. Read the full original of the report in the above regard by Dineo Faku at Business Report
Approval of Edcon business rescue plan means a ‘significant’ number of jobs could be saved BL Premium reports more than 75% of Edcon's creditors approved the company’s business rescue plan at a meeting on Monday. Some creditors who tried to stop the process were successfully warded off. The inability to trade due to the Covid-19 lockdown pushed the retailer, which was in the midst of a bailout plan funded by the Public Investment Corporation, landlords and other creditors, into the business rescue process. Monday's meeting was attended by creditors, who are owed a total of R6.7bn, and representatives of workers who had received retrenchment letters. The approval of the business rescue plan, which proposes an accelerated sale process, allows the business rescue practitioners (BRPs) Piers Marsden and Lance Schapiro to sell the parts of the business that are of interest to bidders. They will then close any stores or brands that are not sold by the end of August. Almost R600m has been set aside for staff retrenchments, though the BRPs hope to save a “significant” number of almost 17,300 employees’ jobs. Kingsgate clothing company, which said it was owed R24m, and clothing manufacturer Clematis failed in a legal bid to interdict Monday’s meeting. It was the second court action faced by Edcon after Pan African Shopfitters opposed the business rescue process last week. Read the full original of the report in the above regard by Katharine Child at BusinessLive (paywall access only). Read too, PIC backs Edcon rescue plan, at BusinessLive SAA rescue plan faces pushback from competitor SA Airlink and from labour Moneyweb reports that a vote by creditors to accept or reject the South African Airways (SAA) final rescue plan is scheduled to take place on Thursday, but competitor SA Airlink has lodged a court application for an urgent interdict of the meeting. The interdict would be pending the completion of a separate application to place SAA under provisional liquidation, with SA Airlink claiming that SAA’s rescue has no reasonable prospects of success. The Department of Public Enterprises (DPE) will oppose the application as the shareholder representative. SAA’s business rescue practitioners, Les Matuson and Siviwe Dongwana, will also oppose the application. SA Airlink is a creditor of SAA whose payments could be compromised by the business rescue process. The DPE said it was aware that the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) also planned to interdict the creditors’ meeting through the courts, which it would oppose. “The government is committed to supporting a competitive, viable and sustainable national airline and wishes to engage constructively towards the national interest objective of such an airline in a constrained fiscal environment, taking into account the impact of the Covid-19 pandemic on this situation,” the DPE indicated. Read the full original of the report in the above regard by Tebogo Tshwane at Moneyweb. Read too, SA Airlink wants to sink SAA business rescue proceedings, at Daily Maverick. And also, SAA business rescue plan would see severe cut in airline’s fleet, at Engineering News Other internet posting(s) in this news category
Gauteng taxi drivers back on the road on Tuesday as commuters urge associations and government to reach a deal over Covid-19 relief grant News24 Wire reports that taxi drivers across Gauteng returned to their steering wheels on Tuesday after spending Monday on the streets protesting over government’s Covid-19 relief grant and efforts to support their businesses. Gauteng taxi operators affiliated to the SA National Taxi Council (Santaco) went on strike demanding R20,000 per vehicle from the government instead of the R5,000 as proposed, which equates to more than R1.1 billion. Operators claimed they had lost income as a result of parts of the economy not being allowed to operate. According to owners and drivers, they have struggled to save their vehicles from being repossessed. Some passengers left their homes earlier than usual, fearing the strike would continue on Tuesday. Taxi driver Sifiso Mdletshe said they suspended their strike to assist desperate passengers, but were still waiting for the transport department to meet with their leaders to address the issue of the money wanted by their bosses. “As drivers, we are not making any profit because of the impacts of Covid-19. We are only allowed to carry a limited number of passengers. We plead with government to listen to our pleas,” Mdletshe said. Transport Minister Fikile Mbalula is set to meet taxi association bosses on Wednesday. Read the full original of the report in the above regard at The Citizen Transport Minister Fikile Mbalula flees Soshanguve as taxi operators ‘arm wrestle’ government for more funds The Citizen reports that Transport Minister Fikile Mbalula was forced to flee from Soshanguve in Pretoria on Monday after disgruntled taxi operators demanding that government dig deeper for a R20,000 relief subsidy wouldn’t let him speak. Patently angry taxi drivers questioned why government had resorted to bringing in the SA National Defence Force to their “peaceful” protest. As Mbalula struggled to field the many questions thrown at him by volatile drivers, his security detail opted to put the minister into a vehicle which drove off. Mbalula rushed to the area after police opened fire on taxi operators with rubber bullets in an attempt to bring order to the area. Taxi operators who had blocked roads with burning tires were forced to flee after police strong-armed them off the roads. Mbalula, in an effort to extinguish tensions between government and taxi operators, announced a R1.135-billion Covid-19 relief fund on Friday, accessible to operators under certain conditions. The KwaZulu-Natal taxi bosses have also put their hand up to possibly down tools on Wednesday this week in support of taxi operators’ demand for government to dig deeper into its pockets to provide support to the sector. Read the full original of the report in the above regard by Gopolang Moloko at The Citizen Other internet posting(s) in this news category
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