Today's Labour News

LOCKDOWN ECONOMICS

IMF trims forecast for SA’s growth as pandemic hits tourism and commodities

BL Premium reports that the IMF has revised downwards SA’s economic growth projections for the year and expects GDP expansion to be almost a percentage point lower than the Reserve Bank’s most recent forecasts.  This comes as emerging markets lag behind a potential recovery due to hits to tourism and some commodity markets.  The lender of last resort said in its World Economic Outlook report released on Tuesday that SA’s economy would grow 2.8% in 2021, a slight downgrade on its 3% projection in October. The economy was estimated to have declined 7.5% in 2020, the organisation said.  It added that growth would slow in 2022, to just 1.4%.  Domestically, economists are braced for more weakness after a surge in Covid-19 infections led to the government tightening lockdown restrictions, thereby dealing a huge blow to tourism and hospitality businesses after the closure of some beaches and the prohibition of alcohol sales. The tourism sector in SA contributes 7% to GDP and before the Covid-19 outbreak was responsible for 1.5-million jobs, or 9.2% of total employment.  Stanlib chief economist Kevin Lings noted that the IMF’s forecast of 2.8% for SA in 2021 was well below the private sector consensus forecast of 3.5% and the Reserve Bank’s estimate of 3.6%.

Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (paywall access only)

Wine producers head to court to get alcohol ban in Western Cape lifted

BL Premium reports Vinpro, an organisation that represents more than 2,000 wine farmers and wine producers, is taking the government to court to ask that the alcohol ban be lifted in the Western Cape.  In its court hearing on 5 February, it will be seeking to have the ban lifted with immediate effect.  It joins the largest beer brewer in the country, SA Breweries, which has also taken the government to court to have the ban removed.  Vinpro advised that it would first ask that the court make an interim order to allow the sale of alcohol for home consumption and at restaurants and venues in the Western Cape, as new Covid-19 cases and hospital admissions have been dropping in the province.  Thereafter, Vinpro will look at asking for a similar order for other provinces.  The group also said that despite continuous engagement with the government, its proposals to mitigate the harmful effects of alcohol were not taken into account when the third liquor ban was introduced on 28 December.  Vinpro pointed out in its statement that the wine harvest was starting and there was not enough space for new grapes and wine as more than 300-million litres of wine were in storage than was usually the case.  It added that the ban threatened the sustainability of the wine industry, which it claimed supported the livelihoods of 269,000 employees.

Read the full original of the report in the above regard by Katharine Child at BusinessLive (paywall access only)

CEO of restaurant association stages sit-in at Union Buildings, saying many establishments ‘can’t survive another week’

TimesLIVE reports that Wendy Alberts, CEO of the Restaurants Association of SA (Rasa), said on day three of a sit-in at the Union Buildings that the industry was imminently facing complete and utter destruction.  With 11,000 restaurants behind her cause, she is calling for the revised lockdown level 3 curfew and ban on alcohol sales to be lifted.  On Wednesday, Alberts walked up and down in front of an entrance to the seat of government with a placard stating “President Ramaphosa, please save our restaurants” and “Jobs save lives”.  She stated:  “This will be my office until the president talks to me and the rest of our constituency and stakeholders.”  Alberts arrived on Monday to hand a letter to President Cyril Ramaphosa in which a call was made for an inter-ministerial meeting to have discussions.  “We felt consultations were quite thin with government and that communication was certainly closed off since the last announcement on December 28,” she pointed out.  After the hit the industry took during the festive season, Rasa believes many in the industry will not survive another week.  “If we do not get the curfew lifted, 12% of restaurants will close within a day, 38% will close within one week, 48% will close within a month and only 6% will be able to survive past the month.  These numbers are quite dramatic. If the liquor ban is not lifted, we are looking at the same figures,” Alberts lamented.

Read the full original of the report in the above regard by Shonisani Tshikalange at TimesLIVE

SA starts R1.2bn fund to help ailing tourism industry

Bloomberg reports that the South African government has started a R1.2 billion fund aimed at reviving the country’s ailing tourism industry.  The Tourism Equity Fund will be used in particular to help black entrepreneurs start businesses and projects in the sector, Tourism Minister Mmamoloko Kubayi-Ngubane indicated on Tuesday.  She advised that the funds will come from government, lenders and the Pretoria-based Small Enterprise Finance Agency.  Tourism-dependent businesses have been particularly hard hit during the Covid-19 pandemic, with border closures and travel restrictions having prevented the usual flow of holidaymakers from Europe and elsewhere.  President Cyril Ramaphosa said at the launch of the fund that under normal circumstances tourism accounted for 2.9% of SA’s economy and about 1.5 million jobs.  “This is a sector that is labour-intensive, and therefore has immense job creation potential.  It generates foreign-direct investment and significant export earnings.  It stimulates and supports the development of small businesses,” he pointed out.  The focus on black businesses is part of the government’s efforts to improve economic opportunities to those discriminated against during apartheid.

Read the full original of the report in the above regard by S'thembile Cele at Moneyweb <https://www.moneyweb.co.za/news-fast-news/sa-starts-r1-2bn-fund-to-help-tourism-industry/>

OCCUPATIONAL HEALTH & SAFETY

At least 70 farmworkers injured after truck overturned on Wednesday near Stellenbosch

Independent Media reports that at least 70 farmworkers were injured on Wednesday morning when their truck overturned on the R44 near Klapmuts, 17km from Stellenbosch, in the Western Cape.  Fortunately, there were no fatalities and no workers sustained serious injuries.  ER24’s Russel Meiring said that paramedics and the Metro Services arrived on the scene at 7.20am to find the truck on the side of the road.  He reported further:  ’’Workers that had been on the back of the truck were now scattered around the scene.  ’Medics assessed the patients and found that approximately 70 people had sustained minor to moderate injuries. Fortunately, no serious injuries or fatalities were found.’’  The patients were treated for their injuries and were then transported to nearby hospitals for further care.  At the beginning of the month, labour federation Cosatu in the Western Cape called on Minister of Employment and Labour Thulas Nxesi to ban the transportation of farmworkers on trucks.  This came after three farmworkers died and more than 20 people were injured in an accident near Worcester in the Western Cape.

Read the full original of the report in the above regard at Independent media

Other internet posting(s) in this news category

• Two KZN police officers dead after their car collided with truck that failed to stop at intersection, at News24

MINING LABOUR

Sibanye-Stillwater boosts its investment in tertiary education in SA

Mining Weekly reports that Sibanye-Stillwater has committed to invest a further R33-million in tertiary education aimed at bolstering mining research and development in SA.  The gold and platinum miner has extended and increased its existing partnerships with the University of Johannesburg (UJ) and University of the Witwatersrand (Wits) by a further three years, with each institution receiving R16.5-million.  “The mining industry is the flywheel of the South African economy. Our investment does not only aim to ensure the mines of the future will be safer, but to build the pipeline of young talent needed to lead our industry into a bright future,” said Sibanye-Stillwater CEO Neal Froneman.  The cumulative commitments made to UJ and Wits since the group’s establishment in 2013, amounts to R75-million. Sibanye-Stillwater has also awarded 1,493 bursaries and provided 1,141 internships opportunities for graduates, since 2013.  Commenting on the importance of education in the mining space, Froneman referred to the complicated and challenging nature of deep-level underground mining, which comprised “many interconnected systems that require intense technical management skills to deliver the expected safety and health performance and operational efficiency with minimal environmental impacts”.  He also stated that Sibanye-Stillwater would be exploring innovative ways with its partners to attract a greater proportion of women into technical curriculums.  Appropriate incentives would be announced in due course.  More than 30% of Sibanye’s bursars and interns in 2020 were females.

Read the full original of the report in the above regard at Mining Weekly

Other general posting(s) relating to mining

• Wescoal CEO Reginald Demana resigns, citing personal reasons, at Mining Weekly

SAA BUSINESS RESCUE / RESTRUCTURING

Pravin Gordhan applies to enter the fray in the court battle between SAA and unions over backpay

Fin24 reports that Department of Public Enterprises (DPE) Minister Pravin Gordhan wants to join the Labour Court battle brought by the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) against a backpay settlement offered to SA Airways (SAA) members by his department.  This is shown in documents filed in the case.  The unions intend to make an urgent application to the court on 28 January to have the backpay deal that was offered and accepted by many employees declared unlawful or unfair.  If their application is granted, they want payment to their SAA members made within seven days.  SAA and the airline's business rescue practitioners (BRPs) are named as the respondents in the case.  Gordhan, in his capacity as minister, wants to be joined as respondent and will ask the court to dismiss the unions’ application.  SAA went into business rescue in December 2019.  The BRPs stopped paying SAA salaries in May when they effectively "mothballed" the airline, claiming there was no money left to keep it going.  In an affidavit opposing the unions’ application, DPE director-general Kgathatso Tlhakudi pointed out that due to only having R600 million available for payment of back salaries, the DPE was only able to offer employees three months' salaries in full and final settlement.  In fact, a settlement agreement to that effect was signed by various other trade unions, as well as by a large number of members of Sacca and Numsa, in their individual capacities.  So far, 3,599 of the 4,597 SAA employees had either individually or through their own trade unions signed the settlement agreement.  The BRPs also intend to oppose Numsa and Sacca's application, according to court documents as filed.

Read the full original of the detailed report in the above regard by Carin Smith at Fin24

RESIGNATIONS / APPOINTMENTS

African Bank CEO Basani Maluleke quit due to ‘intolerable’ working relationship with chairperson

BL Premium reports that African Bank CEO Basani Maluleke’s sudden resignation on Monday was primarily due to a clash of personalities with African Bank chair Thabo Dloti.  In the wake of the announcement that caught the market by surprise, it emerged that Maluleke’s resignation was the direct consequence of her “difficult” working relationship with Dloti.  According to people familiar with developments, the working relationship became intolerable over a period of time for the CEO, and this ultimately forced her hand.  Maluleke’s departure was therefore not sudden nor surprising, according to insiders.  It prematurely ended the tenure of the first black woman to lead a commercial bank in SA.  Maluleke’s appointment as CEO in April 2018 predated by almost a year the appointment of Dloti in March 2019 to chair the board.  Dloti appeared to be playing his cards close to his chest on Monday by indicating surprise at the sudden departure.  Maluleke declined to comment beyond Monday’s statement from the bank, saying she was leaving to pursue other career opportunities.  As part of its contingency plan, the bank has appointed CFO Gustav Raubenheimer as interim CEO as it begins a process to find a new leader. The bank says Maluleke will remain in the job until the end of April to ensure an orderly handover.

Read the full original of the report in the above regard by Warren Thompson at BusinessLive (paywall access only). Read too, Something amiss in Maluleke’s exit from African Bank (editorial), at BusinessLive

Besieged Cricket SA appoints executive support officer to serve as link between interim board and management

BusinessLive reports that an executive support officer has been appointed to serve as a link between the embattled Cricket SA (CSA) interim board and the management team.  CSA interim board chair and retired judge Zak Yacoob confirmed that chartered accountant Denga Ramuedzisi was appointed in the new role last week.  Yacoob did not provide more details about Ramuedzisi’s job description.  CSA acting CEO Pholetsi Moseki‚ who was roped in from his role as CFO‚ stated:  “As everyone would know‚ there are quite a number of suspensions at Cricket SA currently‚ executive suspensions‚ so he (Ramuedzisi) has definitely assisted in filling that role basically.  So the current working relationship is working very well.”  CSA SA acting CEO Kugandrie Govender was suspended last month and her disciplinary hearing is set for 28 January.

Read the full original of the report in the above regard by Tiisetso Malepa at BusinessLive

WORKPLACE CORRUPTION / FRAUD

Former IT executive at Cell C accused of R130m fraud gets R50,000 bail

TimesLIVE reports that former Cell C executive Mohamed Ismail Adamjee was released on R50,000 bail by the Johannesburg specialised crimes court on Tuesday.  Adamjee is charged with fraud relating to colluding with a Cell C supplier to inflate invoices, resulting in losses amounting to R130m.  National Prosecuting Authority (NPA) spokesperson Phindi Mjonondwane said Adamjee's bail was granted with strict conditions, including that he should report at the Germiston police station commercial branch twice a week.  He also may not put the house that is in his wife's name on the market during the duration of trial, he may not leave Gauteng and must hand over his passport to the investigating officer until finalisation of the matter.  The case was postponed to 14 April for further investigation.  The Hawks indicated in a statement last week:  “The accused was an information technology manager at Cell C. It is alleged that during the period 2012 to 2019, he colluded with a director of a contracted entity responsible for IT and network services at his workplace.”  The investigation into the alleged fraud and corruption began in 2020 after an internal audit by the network provider.

Read the full original of the report in the above regard by Belinda Pheto at TimesLIVE

COMMUTING / TRANSPORT

Railway infrastructure theft and destruction picks up speed, even though 3,100 officers were hired

SowetanLive reports that the pillaging of railway infrastructure continues unabated at various non-operational train stations in Gauteng, despite the reopening of several routes since the easing of the hard lockdown last year.  The Passenger Rail Agency of SA (Prasa) has estimated that it could take up to three years for normal train operations to return to full capacity nationally because of the levels of damage to the infrastructure.  Sowetan visited some of the vandalised stations it reported on last year and found that the situation had gone from bad to worse.  At Germiston station, the two coaches parked there since March last year have been stripped bare.  Looters have now started digging holes on the platform to remove cables running underground.  At Cleveland station there were no security guards and overgrown grass has covered the platforms.  At Doornfontein station the situation is now worse. Not only is the fence next to the platform removed, but thieves have also started removing the roof of the station.  The damage to railway infrastructure began when Prasa terminated its security contract after it was flagged by the auditor-general to be irregular.  With no security guards on site, thieves helped themselves to anything they could lay their hands on.  In September, transport minister Fikile Mbalula introduced 3,100 protection officers to stop the vandalism and theft.  By then, the damage of rail infrastructure was estimated at R4bn.  Prasa spokesperson Bane Ndlovu said the security guards were unable to be everywhere at once and therefore were posted according to areas identified through crime patterns and analysis.

Read the full original of the report in the above regard by Penwell Dlamini and view photos at SowetanLive

OTHER REPORTS

Unclear whether Mpumalanga premier now has a criminal record for violating lockdown regulations by not wearing a mask

The Citizen notes that Mpumalanga Premier Refilwe Mtsweni-Tsipane has deposited a statement of guilt for violating lockdown regulations on the compulsory wearing of masks in public, but it remains unclear whether the premier will have a criminal record for this.  Mtsweni-Tsipane apologised again on Monday after she was captured on television not wearing her mask at the funeral of late Minister in the Presidency Jackson Mthembu in Emalahleni, Mpumalanga.  In a statement, the premier said she had signed a statement of guilt and had paid a fine at Vosman Police Station.  Under the lockdown regulations, any person who fails to comply with a verbal instruction by a law-enforcement officer to wear a mask commits a criminal offence, and if they are convicted, are liable to a fine or a period of imprisonment not exceeding six months or both.  According to associate professor of law at North West University, Elmien Du Plessis, should an accused person commit an offence and admit to it, a criminal record would apply.  But there are some exceptions, such as parking tickets and speeding fines.  The government is moreover considering expunging the criminal records of people who have violated lockdown regulations, including people arrested for not wearing masks in public.  Police Minister Bheki Cele had previously requested National Police Commissioner General Khehla Sitole to probe Mtsweni-Tsipane for the incident and Cele’s spokesperson indicated on Monday that the minister was taking the investigation very seriously.  But, it remains unclear whether this investigation will continue as attempts to get hold of the SA Police Service (Saps) for comment have been unsuccessful.

Read the full original of the report in the above regard by Thapelo Lekabe at The Citizen