In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 26 February 2021.
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SA moves to level 1 lockdown, with restrictions on booze sales and public gatherings eased, but masks still compulsory Independent News reports that President Cyril Ramaphosa announced on Sunday night that SA would go to level 1 Covid-19 lockdown with immediate effect. “The country has now clearly passed the second wave,“ Ramaphosa noted. He credited the public health measures and changes in behaviour by the public for the decline in infections. The easing of restrictions means that the curfew hours change to midnight to 4 am and public gatherings – including social political and religious gatherings – are once again permitted, but restricted to 100 people for indoor gatherings and 250 for outdoor events (where the venue allows). Gathering after funerals, commonly known as “after tears”, were still not permitted, the president said. Alcohol sales both for on and off site consumption, will be permitted during normal pre-lockdown trading hours, providing that this is outside the curfew hours. The land borders that have been closed during the lockdown will remain so, and only five airports will be open for international flights. Ramaphosa warned that the wearing of masks remained compulsory. The country has been in lockdown for 11 months after the first local case of Covid-19 was confirmed on 5 March 2020. Read the full original of the report in the above regard at Independent News SA moves to alert level one and J&J will now deliver 11-million Covid-19 vaccines BusinessLive reports that President Cyril Ramaphosa revealed on Sunday evening that SA has signed a deal with pharmaceutical company Johnson & Johnson (J&J) that adds 2-million more doses to what was initially secured. “We have recently signed an agreement with J&J to secure 11-million doses. Of these doses, 2.8-million doses will be delivered in the second quarter and the rest spread throughout the year,” Ramaphosa said in an address to the nation. This is up from the 9-million doses of J&J’s single shot vaccine that were originally secured. SA has also secured 20-million vaccine doses from Pfizer, which will be delivered from the second quarter of this year. “Additionally, we have secured 12-million vaccine doses from the Covax facility and are in the process of finalising our dose allocation from the AU,” Ramaphosa advised. He reported that in the 10 days since SA launched its coronavirus vaccination programme more than 67,000 health workers had been vaccinated. Ramaphosa also announced that the country would now move to the least restrictive level of the lockdown. SA was moved back to level 3 of the lockdown in December as the second wave of infections hit the country, but restrictions have been gradually lifted since then. “The few remaining restrictions under alert level 1 are meant to maintain low levels of infections and, in particular, to prevent super-spreading events,” Ramaphosa indicated. Read the full original of the report in the above regard by Claudi Mailovich at BusinessLive Other internet posting(s) in this news category
Eleven arrested after vehicles, buildings torched at Palabora copper mine in Limpopo News24 reports that Limpopo police arrested 11 people after protests outside the Palabora copper mine in Phalaborwa turned violent and properties were set alight. Provincial police spokesperson Brigadier Motlafela Mojapelo said the protests continued into the weekend. "We have arrested 11 people so far. Members have been deployed and will remain in the area until the situation is brought under control. Mine properties, including a guard house were torched. A sedan and a truck that was travelling along the R41 were also set alight," Mojapelo reported on Sunday. According to the Far North Bulletin, members of a community forum gathered to demand that the mine hire locals, following the appointment of a new contractor. But Mojapelo said the cause of the riots was not yet known: "So far, we do not know about any grouping or affiliations. The circumstances and the degree of everyone's involvement in this will come to light during the investigation." Read the full original of the report in the above regard by Getrude Makhafola at News24 Other labour / community posting(s) relating to mining
Cosatu fires political shot across ANC’s bow as it questions continuing support in the upcoming elections BL Premium reports that as it sets up a special meeting to discuss its electoral support for the ANC, trade union federation Cosatu has fired a political shot across the bow of its political allay. Cosatu has a standing resolution to support the ANC, but has said the alliance “faces a serious crisis of legitimacy in the build-up to local government elections”. Its central executive committee (CEC), which met last week, has instructed Cosatu’s national office bearers to convene a special meeting to focus and “deliberate at length on the matter of the local government elections and Cosatu’s [position] in this regard”. The federation also wants to hold a meeting with the SACP, the third member of the tripartite alliance, to discuss the current political situation. Cosatu’s support for the ANC, and Cyril Ramaphosa, has been under increasing pressure, especially given the government’s unrelenting stance on a wage freeze for public-sector workers, which is now set to last at least four years. Cosatu general secretary Bheki Ntshalintshali said the CEC meeting acknowledged there were “major problems facing workers that will make it hard to convince [them] to support the ANC during the upcoming elections ... Some of these challenges have left many workers feeling like they are being asked to vote against their own interests”. Cosatu also lamented the progress in implementing the ANC’s resolutions in terms of its economic policy. Read the full original of the report in the above regard by Claudi Mailovich at BusinessLive (paywall access only)
Crisis at Denel deepens as chair Monhla Hlahla resigns Reuters reports that state-owned weapons manufacturer Denel said on Thursday that two board members, including chair Monhla Hlahla, had resigned. This came days after it announced that several other board members had stepped down. The company did not give a reason for the resignations, thereby deepening the crisis at Denel. The company depends on government bailouts and has faced liquidity problems. Denel’s fortunes have worsened during the Covid-19 pandemic and some of its trade unions took it to court after it failed to pay full salaries during some months last year. Hlahla, the former Airports Company SA CEO, was appointed in April 2018 to the Denel board. In a notice to the JSE last month Denel said Siphiwe Nyanda resigned and this was followed by the resignation of Kabelo Lehloenya. After Denel’s annual general meeting held on 29 January, Sibusiso Sibisi and Sue Rabkin also resigned last month. Denel, which makes military equipment for the armed forces and for export, said in an announcement on the JSE that a recruitment process for a new board chair was under way. Read the full original of the report in the above regard by Alexander Winning at BusinessLive
SAA’s return to the skies postponed because of Covid-19 pandemic and a lack of funds BL Premium reports that SA Airways (SAA) does not have plans to get into the air any time soon, saying in an update on its website on Friday that domestic and regional flights were suspended until 30 April and international flights until 31 October. The state-owned airline had hoped to resume flights by now but international travel remains conditional due to the Covid-19 pandemic and the demand for domestic travel has dropped significantly and has not recovered. In addition, the company was not allocated any additional money in last week’s budget, after a plea for another R3.5bn to fund the business rescue plan. The failure to secure additional funding in the budget and the prolonged mothballing of operations will make it difficult for SAA to recover its market share, which has been taken over by other operators. The SAA business rescue plan is predicated on a far healthier and bigger market than appears likely now. On Wednesday, finance minister Tito Mboweni said that he had received a request from SAA for additional funding, but still had to examine whether it was worth supporting. Last week, the government chartered an SAA flight to Brussels to fetch a batch of 80,000 vaccines amid criticism that this was an enormously expensive exercise when normal freight could have been used. The SAA Pilots Association, which is in a labour dispute with SAA and has been locked out of the workplace since December, said in several interviews that far cheaper options existed. Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only). Read too, Creditors ‘blindsided’ by SAA’s request for R3.5bn in additional funding, at Daily Maverick
Job cuts at Woolworths fashion and home division ‘very small’, says CEO Roy Bagattini BL Premium reports that according to Woolworths CEO Roy Bagattini, the number of jobs that have been cut in the retailer’s fashion and home division is very small. Apparently, Woolworths embarked on a restructuring process in which jobs in the ailing clothing division were shed. Speaking on Thursday, Bagattini said the retailer employed 45,000 people and only “a very small number” of people in the fashion, home and beauty business had lost their jobs. The retailer did not confirm the numbers of jobs cut despite being asked for comment. Woolworths clothing business has been losing market share for years to more fashionable and cheaper competitors. Bagattini said the retailer was working to “repurpose and redeploy” employees in divisions where there were growth opportunities. One place it could absorb staff was in the online division as it has increased its investment in improving its e-commerce capabilities, having historically underinvested in that channel. Job losses in the retail sector come as no surprise after it experienced its worst year on record in 2020. Massmart, the owner of Makro and Game, recently confirmed it might retrench up to 130 people out of just over 19,000 employees in its wholesale division. Read the full original of the report in the above regard by Katharine Child at BusinessLive (paywall access only)
Nomkhita Mona appointed new CEO at SA Post Office BusinessLive reports that the loss making and cash-strapped SA Post Office (Sapo), which has had a string of CEOs since the August 2019 departure of Mark Barnes, now has Nomkhita Mona at its helm. Her appointment was announced at a post-cabinet media briefing on Friday by minister in the presidency Khumbudzo Ntshavheni. Mona has previously served as CEO of the Nelson Mandela Bay Business Chamber as well as group CEO of state-owned forestry company Safcol. Other positions she has held include CEO of The Uitenhage Despatch Development Initiative (UDDI), CEO of Inkezo Land Company in Durban and CEO of the Eastern Cape Tourism Board. Mona’s appointment follows a turbulent few years at the loss-making Sapo, which has been plagued by acute management and financial problems. Read the full original of the report in the above regard by Linda Ensor at BusinessLive
Home affairs minister launches probe into range of permits issued since 2004 to see if they were granted regularly BL Premium reports that Home Affairs Minister Aaron Motsoaledi has appointed a team of experts to review several categories of permits and visas issued since May 2004, when the Immigration Act came into force, until December 2020 to determine if they were granted regularly. All permanent residence permits, corporate permits (especially in the mining industry), study visas, work permits for professionals, citizen naturalisation and retirement visas issued over this period will be examined. Motsoaledi told MPs on Friday that some of these permits had been granted under dubious circumstances. The review was prompted by findings of the department’s anti-corruption unit and immigration branch, which Motsoaledi said raised “disturbing issues”. The minister said it was offensive that wealthy individuals wanted certain favours from the permit section. “We want to pay attention to them, to see how they managed to obtain their permits,” Motsoaledi said. The team of experts has been given three months to produce a draft report of its findings. The investigation would also highlight system deficiencies in the department. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (paywall access only)
Changes to pension fund regulations to make investment in infrastructure investment easier gazetted for comment BL Premium reports that the National Treasury gazetted proposed changes to regulation 28 of the Pension Funds Act on Friday for comment. The changes are aimed at making it easier for the savings industry to invest in infrastructure, but do not introduce prescribed assets. Speaking to MPs on Thursday, Treasury deputy director-general Ismail Momoniat said the proposed regulation will enable trustees to invest in infrastructure, but it “doesn’t force them to, it just enables the trustees to do so at a higher level and through different ways.” Regulation 28 sets the maximum level that pension funds and life insurers can hold in various asset classes, such as property, bonds, listed shares and unlisted assets to spread risk and protect savers. But the regulation does not set a floor — or a mandatory level of investment in an asset class — for any asset class. The proposed change could introduce a specific infrastructure category of investment, which, at the moment, is done quite extensively through other asset categories. Many pension funds already invest in infrastructure, either through the listed bonds of state-owned entities or directly in projects under the unlisted assets category. Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only) Cosatu hails Treasury’s proposed changes to pension funds regulations designed to boost infrastructure investment BL Premium reports that trade union federation Cosatu said on Sunday that proposed changes to the Pension Funds Act regulations would help mobilise much-needed investment in infrastructure. On Friday, the Treasury gazetted long-awaited draft changes to regulation 28 of the Pension Funds Act aimed at encouraging the savings industry to invest in infrastructure. The changes come after political pressure on the government to compel greater investment in areas that have a developmental function. The solution proposed by the Treasury is seen as an alternative to the policy of prescribed assets mooted by the ANC as a way to meet development financing needs. The Treasury noted that the decision to invest in any asset class, including infrastructure, would remain that of the board of trustees of a retirement fund. The proposed amendment does not add infrastructure investments as a specific asset class alongside the existing list of asset classes but it makes provision for infrastructure investment to be recognised within the asset classes. "We are happy with [the proposals]. We think it’s the right thing to do and it’s being done in the right way that doesn’t alarm anyone," said Cosatu’s Matthew Parks. He said the proposals did not amount to asset prescription because "no-one is forced" to invest, adding that "fiduciary duty, financial integrity and due diligence" had to be respected. Read the full original of the report in the above regard by Lynley Donnelly and Carol Paton at BusinessLive (paywall access only)
Naledi Pandor refuses to tell MPs why she put international relations director-general on precautionary suspension TimesLIVE reports that International Relations & Co-operation Minister Naledi Pandor has declined to tell parliament why she put the department’s director-general, Kgabo Mahoai, on precautionary suspension. Pandor would only say that Mahoai’s suspension was with pay and that she had followed the required prescripts in taking the decision. “I cannot go into reasons or detail with respect to the director-general’s precautionary suspension but I will come back at the appropriate time, under legal advice, to indicate the outcomes and processes which I’ve attempted to follow assiduously in terms of the Public Service Act, including consulting the department of public service & administration,” she indicated on Thursday. MPs repeatedly pushed Pandor, with some saying she should at least indicate whether the suspension was linked to the R118m paid for an abandoned and dilapidated building in New York. That expenditure was deemed irregular by the auditor-general, who also identified a number of officials who should be held responsible for irregularities in the awarding of the tender. But on Thursday, both Pandor and her spokesperson told MPs they have never linked Mahoai’s suspension to the New York property scandal. Read the full original of the report in the above regard by Andisiwe Makinana at BusinessLive
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