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
Monday, 7 December 2020.
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National minimum wage should go up 4.5%, says National Minimum Wage Commission GroundUp reports that a majority (nine) of the 12 members of the National Minimum Wage Commission has recommended that the national minimum wage be lifted from R20.76 an hour to R21.68 an hour. This would be an increase of 4.5%, namely 1.5 percentage points above the inflation rate of 3% a year in September. The commissioners noted that because of the impact of food prices, consumer inflation was higher for low-income households and that the effective rate of inflation for low-income households was 3.3% a year. They also noted that the current minimum wage was below the lower poverty line of R3,360 a month for a household of four people. The minority opinion, on the part of three commissioners representing business, did not recommend an increase above the inflation rate. They wrote that, “any increase, in our opinion, will have an effect on job retention and creation.” The minimum wage of domestic workers is presently 75% of the national minimum wage, while the minimum wage of farm workers is presently 90% of the national minimum wage. The majority of commissioners argued that the wage for farm workers should be brought to parity with the national wage in the 2021 adjustment (an effective increase of R350 per month). They said wages of domestic workers should be increased to 88% of the national minimum by 2021 (approximately R19 per hour), and to parity by 2022. The minority opinion did not support the proposals on domestic and farm workers either, arguing that “no sector can absorb such increases.” Read the full original of the report in the above regard by James Stent at GroundUp
After evasive reply from Gauteng premier, DA vows to fight for report on deadly Bank of Lisbon fire Independent News reports that the Democratic Alliance (DA) in Gauteng has vowed to fight to force Premier David Makhura to release a report on the probe he conducted into the circumstances which led to the deaths of three firefighters after a fire broke out in a government office at the Bank of Lisbon building in 2018. The DA’s spokesperson on health, Jack Bloom, made the pledge after he expressed his dissatisfaction with Makhura’s written replies in the provincial legislature to question about the status of an investigation conducted by the premier’s Office. In his reply, Makhura gave a two line non-response to a series of questions. Bloom reacted as follows: “I am deeply suspicious that there is something to hide as Gauteng Premier David Makhura has refused to give details of the investigations into the Bank of Lisbon fire that started at the head office of the Gauteng Health Department on September 5, 2018. This is an evasive reply as I was following up on (Jacob) Mamabolo’s (acting health MEC’s) reply to me, which indicated that the Premier’s Office had conducted one of four investigations into this fire which led to the deaths of three firefighters.” Read the original of the report in the above regard by Baldwin Ndaba at Independent News Truck driver tied up, robbed on N1 near Winburg in Free State TimesLIVE reports that a truck driver was tied up and robbed of his belongings on the N1 near Winburg at the weekend. Brig Motantsi Makhele of the Free State police said the 43-year-old driver parked his truck next to the road to take a nap. “He was woken by someone who forcefully broke the left window of the truck. The unknown person pointed a gun at him and demanded his cellphone and money,” Makhele indicated. The gunman stole R1,500 in cash, two Nokia cellphones and 12 bottles of perfume. The driver was instructed to hand over the wheel lock nuts and both his hands and feet were tied with cable ties. He was laid at the back of the bed and threatened that if he made any move he would be killed. Makhele said the alleged robber then stole 10 tyres from the truck. The victim managed to loosen himself and, after another trucker stopped to help, they called the police. Read the original of the report in the above regard by Iavan Pijoos at TimesLIVE
SABC board rubbishes claim about 'charging' head of news Phathiswa Magopeni over her job cuts stance TimesLIVE reports that the SA Broadcasting Corporation (SABC) board has denied having taken a decision to "charge" group executive of news and current affairs Phathiswa Magopeni for her stance on retrenchments. The board was responding to a report published by Sunday World, which claimed it had decided to charge Magopeni for defying the broadcaster's resolution to implement retrenchments. According to the newspaper, the board took the decision after Magopeni, during a heated internal meeting with news staffers, told them that she was abandoning retrenchments in the news division. The board said on Monday that the article contained false, misleading and fictitious information about Magopeni. The board said that apart from the fact that it could not involve itself in operational matters or editorial affairs, the newspaper - allegedly relying on information from “some board members" - had completely invented a board discussion, including the alleged charges levelled against Magopeni. The board also pointed out that Magopeni did not report directly to it. Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE
Women in marches in major cities on Friday to protest against gender wage gap Business Report writes that Women of South Africa (WoSA), a newly-found movement, delivered memoranda to the JSE, the Industrial Development Corporation and the Union Buildings on Friday calling for the gender wage gap to be outlawed by making it a criminal offence in SA to pay women less than men for the same job. WoSA, which includes women from various sectors of the economy, including business, political and civil society, took to the streets and marched in all major cities, demanding full inclusion in the economy. The ILO Global Wage report's 2018/19 statistics showed that women continued to be paid 28% less than men, with SA having the world's highest wage inequality overall. The women demanded that both the government and private sector should take decisive action to ensure that more women were involved in economic participation. They said they wanted the government to develop a five-year gender strategy intended to accelerate the participation of women in the economy. They also called for the establishment of an Annual Gender Barometer (AGB) to measure the extent to which women were at the centre of the SA economy. Their memorandum was signed and accepted by Minister of Women, Children and People with Disabilities, Maite Nkoana-Mashabane. WoSA is planning a national private sector engagement to take place by no later than 28 February 2021. Read the full original of the report in the above regard by Siphelele Dludla at Business Report
Sadtu marshalling its reasons for court challenge against matric exam rewrite TimesLIVE reports that the SA Democratic Teachers’ Union (Sadtu) said on Monday that it anticipated filing an urgent court application before the end of the day to interdict the Department of Basic Education’s decision that matrics must rewrite leaked maths and science exam papers. Sadtu’s Nomusa Cembi indicated: “We are busy putting together the documentation (for the court application), which we ought to submit before the end of today.” Basic education minister Angie Motshekga announced on Friday that the mathematics paper 2 would be rewritten on 15 December and the physical science Paper 2 would be re written on 17 December. Sadtu general secretary Mugwena Maluleke said previously that the decision had left many pupils and teachers distraught and frustrated. “It undermines the work of our teachers and learners who worked under difficult circumstances due to Covid-19. Learners are being punished for something that is not of their making, as only a few saw the paper,” Maluleke stated. The department has signalled that it would be opposing the Sadtu court action. Read the original of the report in the above regard by Shonisani Tshikalange at TimesLIVE
GEPF faces five red flags, as it tries to claw back past financial year’s R214.4 billion loss Moneyweb reports that the Government Employees Pension Fund (GEPF) recently released its annual report for the financial year ended 31 March, 2020, which showed a marked decrease in investment values. The GEPF made losses of R214.4 billion for the year, and the market value of investments dropped 11.47% to R1.61 trillion. Approximately 87% of the fund’s investments are managed by the Public Investment Corporation (PIC), which has been under scrutiny. The investments were knocked by the downturn in the economy, the devastating Covid-19 pandemic, as well as the cost of malfeasance perpetrated by a few officials at the PIC. The GEPF, through the PIC, now has to try to claw back what has been lost or impaired. But, consideration has to be given to five red warning flags, namely that the next actuarial valuation will only be completed in December 2021; the investments carry further risk of deterioration; there are looming impairments on direct loans that should not have been made at all; the real test of overall net investment earnings will only be known at the time of the audited annual report as at 31 March 2021; and in terms of the current Investment Management Agreement (IMA), the GEPF’s principal executive officer has no power to stop particular investments. Read the full original of the report in the above regard by Barbara Curson at Moneyweb GEPF now backs scandal-plagued PIC Bloomberg reports that the head of the Government Employee Pension Fund (GEPF) is retreating from his predecessor’s threat to withdraw money from the Public Investment Corporation (PIC), as he backs a turnaround at the scandal-plagued asset manager. The fact that the former overseer of the GEPF is now at the helm of the state-owned PIC has also given Musa Mabesa the confidence to entrust the bulk of its R1.9 trillion portfolio to the money manager. Mabesa took over from Abel Sithole last month as principal executive officer of the GEPF after Sithole moved to the PIC. While Sithole had said shifting funds from the PIC to other managers was an option, Mabesa is opting to bolster scrutiny of the corporation and give it time to rebuild trust. “Diversifying who we give mandates to is a future discussion we can have. We have increased confidence in the PIC’s interim board — and we know Abe,” Mabesa said on Thursday. A judicial inquiry last year exposed lapses in the PIC’s governance and political interference in its investment decisions. The inquiry also highlighted the PIC’s reliance on the GEPF, which accounts for 86% of its funds under management, and oversees the retirement savings of more than 1.2 million civil servants. The filling of several high ranking vacant posts at the PIC also “improves functioning and provides comfort to us,” Mabesa said. Read the full original of the report in the above regard by Janice Kew and Antony Sguazzin at Moneyweb (https://www.moneyweb.co.za/news/companies-and-deals/africas-top-pension-fund-backs-scandal-plagued-pic/) Pension savings ‘safe from regulatory change’, deputy finance minister reassures Business Report writes that Deputy Finance Minister David Masondo has reassured pension fund managers that the changing regulatory environment will not give the government power over their savings. Masondo last week told a round-table about the role of pension funds in economic recovery and growth that the government would leave such decisions to the funds’ trustees. “The National Treasury is in a process of reviewing Regulation 28 of Pension Fund Act to make it easier for pension funds to increase investment in infrastructure, should their board of trustees opt to do so,” he advised. The regulation prescribes maxima for the various types of investment that may be made by a retirement fund. There has been ongoing speculation about whether the amendment of the regulation would see government subjecting pension funds to prescribed asset regulations. Masondo urged pension fund managers to support the government’s objectives and invest in domestic infrastructure projects, saying: “Economic growth depends on investments and without this, there will be no new products, new markets, new employment opportunities and no tax collection for the government. Savings serve as a source of supply for investments. Households, businesses and the government borrow from this savings to undertake economic activities.” Infrastructure development is at the centre of President Cyril Ramaphosa’s Economic Recovery and Reconstruction Plan to boost the economy post Covid-19. Read the full original of the report in the above regard by Siphelele Dludla at Business Report
Post Office gives in to sustained pressure from Solidarity and pays medical aid contributions Trade union Solidarity announced on Monday that the SA Post Office (Sapo) had paid the first of it overdue instalments to MEDiPOS, the medical aid fund for post office employees. This came after the trade union threatened to take legal action against the organisation to force it to meet its statutory obligations. Anton van der Bijl, head of Labour Law Services at Solidarity, said: “This is a major win for our members although it only brings temporary relief. Employees now have the assurance that, for the foreseeable future, they will still be members of MEDiPOS and their medical cover will not be suspended by 1 January. However, we are not going to let the matter rest there as we are looking for a permanent solution where payments will be made regularly according to service contracts”. Solidarity said it would not hesitate to pursue further litigation against Sapo until all overdue funds had been paid and employees had the permanent reassurance that they would have access to their medical aid benefits. Read Solidarity’s press statement on this matter at Solidarity News
Public Service Commission director-general Dovhani Mamphiswana axed after hiring his child's mother News24 reports that disgraced Public Service Commission (PSC) director-general Dovhani Mamphiswana has been fired after an investigation revealed that he brazenly hired the mother of his child as a director at the entity. In August, President Cyril Ramaphosa announced that Mamphiswana had been placed on precautionary suspension. Advocate Smanga Sethene was appointed by the Office of the State Attorney to investigate media reports that Mamphiswana had illegally appointed the mother of his child, Boitumelo Mogwe, as chief director for professional ethics in December 2019. Sethene found that the appointment of Mogwe was the result of "nepotism, deceit, dishonesty, corruption and fraud". On Monday, a spokesperson for Public Service and Administration Minister Senzo Mchunu confirmed Mamphiswana's axing. Sethene's investigation uncovered many irregularities in respect of Mamphiswana's actions. Democratic Alliance (DA) MP Leon Schreiber said that now that Mamphiswana had been fired, they would initiate a process to "get him behind bars". He welcomed reports that Mamphiswana was - fittingly for a bandit - "seen escorted by security guards" out of the PSC headquarters last week. Read the full original of the report in the above regard by Jason Felix at News24. Read too, PSC boss guilty of nepotism, on page 1 of The Sunday Independent of 6 December 2020
More legal protection needed for whistle-blowers, says NPA head TimesLIVE reports that Advocate Shamila Batohi, national director of public prosecutions, says that SA needs better protection for whistle-blowers if the country is to win the fight against corruption. She was speaking on Sunday during a series of webinars held by the Health Sector Anti-Corruption Forum (HSACF), along with Hawks head Lt-Gen Godfrey Lebeya and Special Investigating Unit (SIU) head advocate Andy Mothibi. “This is such an important aspect. We need to have a really robust whistle-blower protection framework to protect those who stand up and speak out because it’s not easy when you’re dealing with powerful and rich people,” Batohi stated. Refusing to pull any punches, Batohi said corruption in SA, both before and after the Covid-19 pandemic struck, had been enabled by a lack of systems and controls supply chain management and procurement across government entities. On the job of turning the National Prosecuting Authority (NPA) into a corruption-proof organisation, she said things were moving in the right direction. But Batohi added: There’s still corruption in our own ranks. It is extremely difficult working in this environment where you still don’t know who to trust and who you’re working with.” Mothibi said R10.3bn of alleged irregular contracts were under investigation by the SIU on instruction from President Cyril Ramaphosa. Read the full original of the report in the above regard by Paul Ash at TimesLIVE
Two SAPS members among 11 arrested on Saturday after gun battle in foiled Bryanston heist TimesLIVE reports that a detective sergeant and a police administration clerk were arrested after a failed heist that ended in a hail of bullets in Bryanston, Johannesburg, on Saturday night. The two SAPS members, stationed at Kempton Park and Springs, were among 11 suspects detained during the foiled robbery at a diamond outlet. Acting on a tip-off, law-enforcement officials from various units including national crime intelligence, the Joburg flying squad, K9 unit, metro police and the tactical response unit, had staked out the premises from midday. At around 8.30pm the observation team saw three vehicles, including a marked SAPS bakkie, arrive at the location. The suspects began shooting at the approaching police who returned fire, wounding two suspects in the legs. None of the SAPS members were injured, but three police vehicles were riddled with bullets. Three unlicensed firearms were seized along with two vehicles. The suspects will appear in the Randburg Magistrate's Court on Tuesday on numerous charges including attempted murder, conspiracy to commit robbery and possession of unlicensed firearms and ammunition. The arrested police members will also be subjected to a departmental disciplinary investigation. Read the full original of the report in the above regard by Paul Ash at TimesLIVE
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