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 roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 28 August 2020.
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In counter-application, government wants public sector wage increases declared unlawful BL Premium reports that more delays are feared in a court case to determine whether the government has to pay almost R40bn in salary increases to public sector workers, as the state now wants the court to declare that doing so would be unlawful. The worry about further delays was raised by the Public Servants Association (PSA) after the Department of Public Service & Administration (DPSA) and Minister, Senzo Mchunu last week filed a counter-application in the case in which the unions want the court to order that the state cannot just renege on a wage deal. The increases the state agreed to pay as part of a 2018 multi-term wage agreement were supposed to have taken effect on 1 April this year, but the government said it did not have the money to pay. The refusal to pay is now being tested in both court and arbitration proceedings. While the state initially just opposed the application brought by the PSA and other unions to enforce their members’ contractual rights, the DPSA and Mchunu have now changed tack. In a counter-application, they are now asking the court to declare that enforcing the applicable clause in the agreement would be unlawful as it would contravene both the constitution and the public service regulations. Alternatively, they want the court to declare that the clause is either unenforceable as it offends public policy or that it is unlawful as it breaches the implied term that it is only enforceable if there is funding or a budget available for it, or if the increase is affordable. Another alternative before the court is to declare that the agreement is unenforceable, as the performance of the agreement is “objectively impossible”. Read the full original of the report in the above regard by Claudi Mailovich at BusinessLive (paywall access only) Smaller salary increases and hiring freezes due to Covid-19 pandemic The Star reports that SA businesses have cut pay rises by 20% and introduced widespread hiring freezes in response to the global Covid-19 pandemic, with the jobs market in near lockdown. This was revealed by research released last week by advisory group Willis Towers Watson. At the beginning of the year, employers in SA were planning to give their staff an average annual pay rise of 6.8%. But following the start of the pandemic, they cut that figure to a 5.5% average pay increase. With inflation set to be about 4%, the real-term “take home” average pay rise for workers will thus be 1.5%. Willis Towers Watson’s Salary Budget Planning Report, which studies the size of pay budgets at firms, also showed that in 2021 SA companies expect to offer average pay rises of 5.7%. With inflation forecast to be 4.5% next year, that will leave real-term rises of 1.2%. Many of the 211 South African firms that took part in the global study faced tough decisions about pay. Almost one in five firms froze their pay increases for 2020 because of Covid-19. A further 15% decided to postpone their pay rise to later in the year. Nineteen percent cut the size of bonuses, while 22% were delaying bonus pay-outs. Fifteen percent said they had already reduced staff numbers due to the pandemic and 44% were planning, or considering, doing so. Seventy-three percent had frozen or cut recruitment, while 21% were making plans to do so. Read the full original of the report in the above regard by Edward West on page 6 of The Star of 26 August 2020
Sasol forks out R96m for its joint CEO’s separation packages Business Report writes that Sasol paid its former joint presidents and chief executives Bongani Nqwababa and Stephen Cornell some R96 million in benefits and golden mutual separation packages. This was advised in the company’s annual report for the year ended June 2020, which was released last week. Cornell’s total remuneration was R68.65m and included a R20.8m salary, R21.65m mutual golden handshake and R1.86m in long-term incentive compensation. Nqwababa’s total pay package was R27.2m and included a R14.3m mutual separation package, a R8.7m salary and R1.9m in long-term incentive compensation. Cornell and Nqwababa had agreed to an amicable mutual separation with the company and stepped down at the end of October last year following cost and project overruns at the Lake Charles Chemicals Project in the US. Remuneration committee chairperson Mpho Nkeli said the board mandated the remuneration committee to agree on the separation terms for the two executives. She pointed out that the committee ensured the agreed separation packages were in line with market practice for executive separations. “Both executives were placed on garden leave during the contractual six months’ notice period and we granted an additional two months’ employment on full salary to Cornell to accommodate his school-going children before their repatriation to the US,” Nkeli indicated. She added that the committee agreed a separation package equal to 12 months’ salary for Cornell and Nqwababa. Read the full original of the report in the above regard by Dineo Faku at Business Report. Read too, Sasol’s odious R95m golden handshake for CEOs, at BusinessLive (paywall access only) Tongaat Hulett directors richly rewarded for turning company around after mismanagement uncovered Business Report writes that Tongaat Hulett rewarded its three executive directors handsomely in the financial year to the end of March for their sterling performance in turning around the agriculture and agri-processing company following the uncovering of financial mismanagement in early 2019. The three executives are chief executive Gavin Hudson, chief financial officer Rob Aitken and executive director Dan Marokane, who shared an amount of R37.64m in cash bonuses for 2020 for their efforts in two turnaround incentives. Hudson’s total remuneration for the year to end the March was R25.42 million, up from R3.26m in 2019, according to the annual report. However, his 2019 total remuneration package consisted of only two months of service, as he was appointed in February 2019. Hudson’s 2020 remuneration figure included a cash package of R6.6m, a retirement and medical aid contribution of R946,000, a turnaround incentive one of R8.48m, a turnaround incentive two of R9.36m, and R36,000 as other allowances. Hudson was instrumental in driving the company through its turnaround plan during the year after the departure of former CE Peter Staude. Staude and former financial director Murray Munro were paid total packages of R13.51m and R2.25m, respectively, for 2019. Aitken and Marokane received total remuneration packages of R15.34m and R16.71m, respectively, in 2020. Read the full original of the report in the above regard by Sandile Mchunu on page 17 of Business Report of 28 August 2020 Other internet posting(s) in this news category
Home Affairs services remain limited under lockdown level 2 over concern for health of staff BusinessLive reports that the Department of Home Affairs (DHA) will continue to offer only limited services under level 2 of the Covid-19 lockdown, thereby restricting the number of people visiting its offices. “During each lockdown level, we analyse the number of people who normally visit our offices and determine which services we can offer safely. At all times, we aim to protect the lives of our employees and citizens while ensuring access to essential services,” DHA Minister Aaron Motsoaledi said at a media conference on Friday. He noted that from the start of the lockdown until 21 August more than 1.6-million people had visited DHA offices. The department will still not take applications at its offices from people who have lost their IDs and is not issuing passports except in exceptional circumstances, as required for essential services, business and emergencies. It is also not providing any services at refugee centres. Motsoaledi announced that all temporary ID certificates issued during the national state of disaster, which had not expired by 26 August, would be extended until 31 October. All forms of permits and visas have already been extended until 31 October. South Africans who are abroad and need to return to SA can apply for one-way, temporary passports in cases where their passports have expired. Read the full original of the report in the above regard by Linda Ensor at BusinessLive. See too, Home Affairs Level 2 services, on page 7 of Saturday Citizen of 29 August 2020 Expats allowed back into SA, but must fall in the category of ‘exceptional need to return’ The Citizen reports that despite expatriates working and studying in SA being allowed to return to the country during the lockdown, many have been hesitant to do so due to the strict requirements they need to meet to be granted permission to return. According to immigration specialist at Xpatweb, Leetasha Govender, for expats to return they have to fall within the “exceptional need to return” category, which applies to long-term visa holders who need to return for work purposes that are in line with the economic growth of the country. “Expats are ready to return ... but the hoops they need to jump through are too cumbersome for some to book the flight. If a long-term visa holder wants to return to South Africa, they will be considered depending on their positions and the reputation of their employer,” she advised. Govender added that the likelihood of a South African being able to temporarily fill the role until border-lockdown has been lifted was also one of the considerations of the Department of Home Affairs’. In May, Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini Zuma issued regulations which allowed permanent residents to return to the country. But on 3 July, DHA Minister Aaron Motsoaledi issued directives for people who fell outside of the categories allowed to return. In terms of his directives, expats who wished to return had to apply in writing to the minister, demonstrating “exceptional circumstances” for their request. “[They] need to ensure that their applications are supported by a copy of passport and a copy of a temporary residence visa... Everyone entering the country is required to adhere to the health protocols, including quarantining for 10 days,” said Motsoaledi’s spokesperson. Moreover, some expats have expired or expiring visas which they are unable to renew as SA embassies abroad have not yet resumed their full immigration activities. Read the original of the report in the above regard by Rorisang Kgosana on page 6 of The Citizen of 28 August 2020
Bleak outlook for SA’s unemployment rate, warns economist Mike Schűssler Engineering News reports that economist Mike Schűssler noted during a webinar on Friday that the Covid-19 pandemic and the months of lockdown have had an immense negative impact on economies worldwide, with entire industries forced to close their doors, affecting millions of workers who either lost their income for weeks on end or lost their jobs altogether. Presenting trade union Uasa’s nineteenth SA Employment Report (SAER), he said the latest forecasts for this year’s global gross domestic product (GDP) showed the worst decline since the Great Depression in the late 1920s to early 1930s. Schűssler said SA could expect one of the worst GDP per capita declines in the world. The country’s per capita GDP for the second quarter would be similar to the level seen in 2000, he noted. He added that the country would bounce back, but that a full recovery would take years – about six to nine years to reach 2019 levels and 11 to 14 years to reach 2014 levels. Schűssler said he expected unemployment to increase owing to the Covid-19 crisis and lockdown, with an estimated 1.3-million to 3.3-million jobs lost on a permanent basis by March 2021. He indicated that, with the addition of new entrants to the labour force next year, the best case for the country’s unemployment rate would be about 36.2%, while the worst case would be about 44.6%. The most probable case, he noted, would be about 40.6% in March 2021. However, he expects the unemployment rate to ease to 34% to 37% within 15 months after March 2021. Read the full original of the report in the above regard at Engineering News
Cape Town firefighters 'pepper sprayed' while battling blaze on Friday night News24 reports that two City of Cape Town firefighters were pepper sprayed at the scene of a fire that started on Friday night in Seawinds. Crews from Ottery, Lakeside and Wynberg responded to reports of informal structures alight in Overcome Heights at around 23:30, said City Fire and Rescue spokesperson Jermaine Carelse. The crews managed to contain the spread of fire, but two firefighters - one from Wynberg fire station and the other from Ottery - were "pepper sprayed by an unknown assailant who was waiting for them when they returned", Carelse reported. Medical staff treated them at the scene. The City condemned “this callous act in which the men and women who put their lives on the line to save others are targeted." The fire was extinguished just after 01:00 and the damage was contained to four informal structures and one vehicle. Read the original of the report in the above regard by Nicole McCain at News24
Close to 5,000 staffers exited the SAPS in 2019/2020 financial year News24 reports that according to Police Minister Bheki Cele, close to 5,000 SA Police Service (SAPS) personnel exited the police service in the 2019/2020 financial year, which saw a decrease in staff from 192,277 to 187,358. This was indicated in Cele's response to a parliamentary question from DA MP Ockert Terblanche, who wanted details on the SAPS' early retirement drive and other staff challenges, including details on the filling of 7,000 additional posts. After the announcement and implementation of the early retirement initiative, Cele approved the early retirement of employees, in phases, between March 2020 and March 2021. "Employees who are the oldest and nearest to their pensionable age, have been allowed to leave the SAPS first. The early retirement initiative supports the current restructuring process within the SAPS. [That is to] scale down at senior levels and to enhance employment at entry level, as well as to achieve government’s efforts to contain expenditure with anticipated savings on the wage bill," Cele indicated. Although the process for the enlistment of 7,000 police trainees was suspended, due to the Covid-19 restrictions, the SAPS was considering the permanent enlistment of an estimated 3,000 active serving reservists in October 2020, Cele stated. He added that the SAPS was considering the enlistment of an estimated 4,000 external applicants as police trainees, who would begin basic training in January 2021. Read the full original of the report in the above regard by Jason Felix at News24
Government mulls setting up special courts to tackle Covid-19 graft BusinessLive reports that President Cyril Ramaphosa says the government is looking into establishing special courts, similar to those set up for the 2010 Soccer World Cup, in a bid to tackle corruption allegations related to Covid-19 procurement. Responding to questions in the National Assembly on Thursday, Ramaphosa said the state was also considering overhauling the tendering system so as to cut out the so-called “tenderpreneurs”. The president noted that corruption allegations had caused much outrage among the public and MPs, and he himself was incensed. “It is disgraceful that in the midst of a health crisis there are people who want to defraud the state and profiteer,” Ramaphosa lamented. Accusations that government officials have been issuing procurement deals to politically connected individuals, including family members and friends, have dominated the headlines in recent weeks. In July, Ramaphosa authorised the Special Investigating Unit (SIU) to probe all allegations of Covid-19 procurement irregularities. The corruption allegations have also prompted the Treasury to look into the possible centralisation of its procurement process. Last week, the government published a list of all companies that have benefited from the state’s Covid-19-related procurement in an attempt to allay fears of corruption. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive Emalahleni Home Affairs official arrested for 'selling birth certificates' TimesLIVE reports that a Department of Home Affairs (DHA) official appeared in court in Emalahleni on Thursday after being arrested for allegedly selling birth certificates. Hawks spokesperson Capt Dineo Sekgotodi said officials had noticed irregularities in the issuing of birth certificates earlier in the year and an internal investigation was instituted. The suspect, Muntu Edwell Monareng, then promised the DHA investigator money to discontinue the investigation against him. “The matter was reported for further investigation. A multidisciplinary operation was conducted and he (Monareng) was arrested immediately after handing over R13,000 to the home affairs investigator,” Sekgotodi reported. During the arrest, police seized identity documents, cash and other items. Monareng was charged for contravening the Prevention and Combating of Corruption Activities Act. He was released on bail of R3,000. Read the full original of the report in the above regard by Naledi Shange at TimesLIVE Eastern Cape man behind fake death certificates to bypass lockdown roadblocks gets 12 months TimesLIVE reports that convicted fraudster Mbuyiselo “Mawawa” Lobi, who issued fraudulent death certificates during level 5 of the Covid-19 lockdown, has been sentenced to 12 months’ imprisonment or a fine of R12,000 in the Aberdeen Magistrate’s Court. In a statement on Thursday, Eastern Cape MEC for transport, safety and liaison, Weziwe Tikana-Gxothiwe, welcomed the sentence. Lobi was arrested in April for issuing fraudulent death certificates that gave hundreds of people a pretext to travel between provinces. He was sentenced to a fine of R12,000 or 12 months behind bars, half of which was suspended for five years. Lobi’s actions were in contravention of the Disaster Management Act, and were executed on the N9 and R61 between the Eastern and Western Cape. Tikana-Gxothiwe thanked those law enforcement officers who had diligently investigated the matter leading to the arrest of Lobi. Read the full original of the report in the above regard by Simtembile Mgidi at TimesLIVE City of Johannesburg accounts manager bust in string operation for soliciting a bribe to reduce utility bill TimesLIVE reports that a sting operation conducted by the Hawks has led to the arrest of an accounts manager at the City of Johannesburg. The 43-year-old was scheduled to appear in the Hillbrow Magistrate's Court on corruption charges on Friday. Hawks spokesperson Captain Ndivhuwo Mulamu said that the suspect last month allegedly demanded a R10,000 payment from a resident to reduce his utility bill account from R400,000 to R313,000. The suspect then demanded another R27,000 to reduce the utility bill again to R225,000. The Johannesburg Serious Corruption Investigation team conducted a sting operation at the City’s offices in Braamfontein on Thursday. The suspect was arrested in possession of R10,000 in cash. Read the full original of the report in the above regard at TimesLIVE Other internet posting(s) in this news category
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