In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Tuesday, 13 April 2021.
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LRA guidelines requiring secret ballot of union members prior to strike action set aside by court The Star reports that a set of labour guidelines viewed by some as the government’s attempt to curtail workers’ right to embark on strikes have been set aside by the North Gauteng High Court. Gazetted by then labour minister Mildred Oliphant in December 2018, the guidelines made it illegal for unions to embark on strikes before conducting secret ballots among members. The guidelines came into effect on 1 January 2019 and gave unions 180 days to amend their constitutions to include secret balloting to ascertain whether members favoured a strike. At the time, the Labour Department warned unions that they faced deregistration or being placed under administration if they failed to comply. Many unions criticised the government for what they viewed as an unjustified limitation on the right to strike. Later in 2019, the Association of Mineworkers and Construction Union (Amcu) took the department to court, seeking an order declaring the guidelines illegal on the grounds that Oliphant had acted on legislation inapplicable to the passing of guidelines that imposed mandatory obligations on unions. Amcu argued in court that section 95(8) of the Labour Relations Act allowed for the issuing of guidelines, but Oliphant had passed the guidelines in terms of section 95(9) of the Act. The contention was that Oliphant empowered herself through inapplicable legislation to introduce guidelines that impose mandatory obligations. She therefore acted without legal authority, Amcu maintained. Judge Nicoline Janse van Nieuwenhuizen ruled in the union’s favour in a judgment delivered last week and set the guidelines aside. Read the full original of the report in the above regard by Bongani Nkosi at The Star
Legal dagga use poses challenges to workplace policies Pretoria News reports that the 2018 Constitutional Court decision to legalise the consumption of cannabis “in private” has created a number of challenges for employers and employees. Among them is the question of whether an employee could lose their job by consuming dagga outside working hours, especially in safety-sensitive industries where workers are prohibited from being under the influence of intoxicating liquor or drugs. This was one of the legal and ethical dilemmas raised in a recent research article in the SA Medical Journal. Forensic toxicology Dr JB Laurens and criminal and medical law expert Professor Pieter Carstens said the decision to legalise the consumption of dagga created challenges for employers and employees because labour laws such as the Occupational Health and Safety Act and the Machinery and Occupational Safety Act made it an offence for staff to be under the influence of intoxicating liquor or drugs at work. To ensure that constitutional rights to privacy, freedom of religion, autonomy and other rights were properly balanced against the right of other members of the public to safety and health, Laurens and Carstens called for a “legally defensible” approach to the regulation of dagga by adopting a similar approach to regulation of legal alcohol use. They noted, for example, that the psychoactive component of dagga was excreted slowly from the human body and could still be detected several days after having been consumed. The methods used to test employees for dagga usage could also create difficulties. While blood testing was seen as the best way to estimate impairment, collecting specimens of blood was very invasive and also required specialist staff. Read the full original of the report in the above regard by Liam Ngobeni at Pretoria News Security guard killed in explosion to blast open safe in cash-in-transit heist in Gugulethu on Monday EWN reports that a security guard has died in a cash-in-transit heist in Gugulethu, Cape Town. On Monday, robbers targeted a cash van in the area. They used explosives to blast open the safe inside the vehicle. "During the explosion, one of the guards was fatally wounded while three others sustained injuries. The suspects fled with an undisclosed amount of cash," said police spokesperson Brenda Murdili. It was the second attack on cash-in-transit guards in just a few days. Over the weekend, two Fidelity security officers were shot and killed in Langa. Read the full original of the detailed report in the above regard by Graig-Lee Smith at EWN
Solidarity and AfriForum in court on 13 April to challenge race-based terms of Tourism Equity Fund Engineering News reports that trade union Solidarity and civil rights group AfriForum were scheduled to be in the North Gauteng High Court on 13 April for the hearing of their case against the Department of Tourism and Tourism Minister Mmamoloko Kubayi-Ngubane. The two institutions instituted legal action after unsuccessful talks with the Minister about opening up funding through the Tourism Equity Fund (TEF) to all tourism businesses. The R1.2-billion TEF was launched by the department in January, in partnership with the Small Enterprise Finance Agency, as a new financial support mechanism to stimulate investment and transformation in the tourism sector. As a combination of grant funding, concessionary loans and debt finance, the fund caters to the specific needs of black-owned businesses to acquire equity, invest in new developments or expand existing developments. But, Solidarity legal head Anton van der Bijl explained the basis of their objection as follows: “To drive transformation and other racial ideologies in the midst of a pandemic that has devastated an industry shows indifference to the need of the very sector the Minister has been tasked to support. Right now, entrepreneurs and employees in this industry really need the government’s support, but government is choosing to put its own agenda above the needs of its citizens.” Read the original of the report in the above regard at Engineering News. Read Solidarity’s press statement regarding this matter at Polity
Salga on collision course with municipal unions as it presses for wage cuts in real terms BL Premium reports that trade unions and municipal bosses are heading for a showdown after the SA Local Government Association (Salga), the body representing SA’s 257 municipalities, called for financially distressed municipalities to cut wages in real terms and freeze other perks linked to wage hikes. Salga has proposed a 2.8% wage increase for 2021/2022. This is below the 2.9% inflation rate recorded in February and the 4.3% average the Reserve Bank expects for 2021. In a strongly worded letter addressed to SA Local Government Bargaining Council (Salgbc), Salga CEO Xolile George proposed a three-year wage deal with an option for parties to "opt out" based on unforeseen circumstances. George called on municipalities to hike salaries in line with available resources, saying failure to do so would constitute financial misconduct. Any agreement also needed to incorporate an "exemption dispensation" for non-affording, least-affording or just-affording municipalities. George said some municipalities struggling with the current wage costs would have to apply "no more than a 0% increase". Keith Swanepoel of the Independent Municipal and Allied Trade Union (Imatu) said they were demanding a "9% wage hike or R2,500, whichever is greater". He said wage negotiations should be given a chance. The SA Municipal Workers’ Union (Samwu) is demanding a one-year wage agreement with a R4,000 salary increase across the board and other benefits. The union’s Dumisane Magagula commented on Monday that negotiations were just beginning and the union was not in a position to discuss the Salga letter. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only)
SAA pilots reject final offer by business rescue practitioners to end strike BL Premium reports that the business rescue practitioners (BRPs) of SA Airways (SAA) have made a final settlement offer to pilots, who are both on strike and locked out, also warning them that once the business rescue process ends the offer expires. However, pilots belonging to the SAA Pilots Association (Saapa) have decided to take their chances and, if the rescue ends, say they will pursue their claims with the new board and management of SAA. The dispute is taking place as the business rescue draws to a close. The BRPs say it is not necessary to resolve the dispute with the pilots to complete the process. Pilots have been locked out since December and embarked on a strike last week. By striking they aim to prevent the use of any replacement labour, which they believe is not allowed, but that is an interpretation of the Labour Relations Act with which the BRPs disagree. Saapa has filed an interdict with a court to halt the BRPs efforts to recruit replacement labour. The offer made by the BRPs to pilots includes the payment of unpaid salaries from April to November 2020, notice pay, leave pay and a 13th cheque. They will also pay pilots retrenchment packages over the next three years, out of the new SAA’s revenue. Saapa has rejected this offer, describing it as unfair as all other employees have been paid out a generous severance package. Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only)
Testing times for SAA subsidiaries, with staff at SAAT ‘very close’ to withholding their labour Moneyweb reports that the staff of SA Airways’ (SAA’s) subsidiaries are bearing the brunt of the precarious financial situations of thosse companies. SAA has been in business rescue since December 2019, but this has not included the subsidiaries. The SAA business rescue practitioners are therefore not legally mandated to spend any of the post-commencement finance to assist the subsidiaries. An international private equity group has been waiting nine months for Mango – the broke, low-cost subsidiary of SAA – to return two Boeing aircraft after the leases expired in July last year. The planes are stuck at SAA Technical (SAAT), another broke subsidiary of SAA, which is undertaking the work necessary to ensure compliance with return conditions. Mango has apparently been unable to pay SAAT for the work that had to be done. In May last year Public Enterprises Minister Pravin Gordhan told MPs that Mango would cut staff salaries by 50%. The staff of a third subsidiary, Air Chefs, have not been paid since the hard lockdown, while SAAT staff have only received between 25% and 50% of their salaries every month for the last year. In March, SAAT management promised to pay full salaries for the first time, but eventually only paid a portion early in April and have paid nothing since. In a message sent on 7 April, staff were encouraged to apply for shortened work hours and take paid or unpaid leave. That would “enable the likelihood of SAAT paying 100% of the worked half-time”, staff were told. Trade union Solidarity said staff at SAAT were “very close” to withholding their labour. That could result in an even deeper crisis for the airlines that depend on SAAT for technical services – including Mango. Read the full original of the report in the above regard at Moneyweb
Nearly 35% of SA’s senior government officials not qualified for their jobs Independent Media reports that the Democratic Alliance (DA) intends writing to parliament’s standing committee on public accounts (Scopa) to urge an investigation regarding the fact that nearly 35% of senior managers employed by national and provincial departments do not have the required qualifications and credentials for the positions they occupy. DA public enterprises spokesperson Michele Clarke said in a statement on Monday that the main departmental culprits were Agriculture, Land Reform and Rural Development with 227, Police with 228, Justice and Constitutional Development with 189, Trade, Industry and Competition with 128, and Environment, Forestry and Fisheries with 107. Minister of Public Service and Administration Senzo Mchunu revealed in a written response to a parliamentary question posed by the DA that of the 9,477 senior managers listed on the Personal and Salary System, 3,301 did not have the required qualifications. Of those, 1,987 officials were employed in national departments. Clarke commented: “’How much longer must South Africa suffer under this incompetence? Some of these are key to the country’s economic and food security, yet cadre deployment is more important to the ANC government than good governance and the well-being of its people.” Middle management positions in national government typically pay between R779,802 and R922,750, with senior management earning between R1,078,267 and R1,974,067, depending on level of employment. Read the full original of the detailed report in the above regard at Independent Media
Impact of teacher assistants leads to DBE seeking further contract extension beyond 30 April News24 reports that the contracts of more than 300,000 teachers and general assistants employed at schools across the country under the Presidential Youth Employment Stimulus programme have been extended to the end of April. But because of the impact the assistants have played in schools during the difficult times of Covid-19, the Department of Basic Education (DBE) is lobbying for a further extension beyond 30 April. The contracts commenced in December last year after President Cyril Ramaphosa announced the stimulus package in October. The contracts were originally expected to come to an end on 31 March. DBE spokesperson Elijah Mhlanga said the sector was humbled by the work ethic, commitment, drive, and collaboration by schools and the assistants in implementing the initiative. "We have, however, begun discussions with the firm premise that the initiative should continue to be funded in order to continue the high level of support the assistants continue to offer to our schools," Mhlanga indicated. Among the assistants' duties were to scan pupils' temperatures at school entrances, sanitising, and offering additional support in classrooms. They also assisted in ensuring the schools were clean and observed all Covid-19 health and safety protocols. Read the full original of the report in the above regard by Sesona Ngqakamba at News24
GEPF definitively tells members that use of their pensions as security for loans is not permissible BL Premium reports that the Government Employees Pension Fund (GEPF) has informed its more than 1-million members in the public service that they cannot access their pension funds while they are still working. The fund said in a notice to members that it was responding to the many queries it had received after the publication of a private members’ bill by Democratic Alliance (DA) MP Dion George that proposed that employees should be allowed to use their pension funds as collateral for loans. The fact the GEPF had to respond to numerous queries is said to indicate the interest generated by the proposal. George motivated his bill on the grounds that the Covid-19 pandemic has driven many people into poverty and destitution while they have an asset accumulated in their pension fund that they could use to ameliorate their situation. But, unlike some private sector pension funds, the GEPF also does not allow pensions to be used as security for a mortgage bond. “As it now stands, the GEPF does not allow any withdrawal from the pension fund while employed. It does not allow cash advances or loans from the fund as the fund is not a regulated financial service provider, which means it would be against the law to allow loans from the GEPF,” the fund advised. The GEPF also said it and the Department of Public Service & Administration were concerned that people did not understand the long-term consequences of depleting retirement funding. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (paywall access only) Other internet posting(s) in this news category
New accusation of Eskom's De Ruyter having made another three senior appointments ‘without following due process' TimesLIVE reports that fresh allegations have emerged against Eskom CEO Andre de Ruyter, with a second executive accusing him of making another three senior appointments without following due process. Eskom CFO Caleb Cassim has informed the board of three new general manager appointments that were allegedly done at De Ruyter’s instruction outside the normal process. But last week, Eskom’s board reversed, within a day, the addition of the names to the terms of reference for the independent investigation to be conducted by senior counsel advocate Ishmael Semenya. He would have investigated eight questionable appointments, but three names have since been removed from that list. “Initially the board resolved to add the names and added them, but at another board meeting the next day, the chairperson and some other board members felt the CFO should write a formal complaint to the board, like [Solly] Tshitangano had done,” a source with direct knowledge of the developments indicated. Accordingly, the names were removed from the terms of reference, which were drawn up by Eskom’s acting head of legal for consideration by the board. Cassim could not be reached for comment, but several Eskom insiders confirmed he had not submitted a complaint to the board. In relation to the amended terms of reference, Eskom spokesperson Sikonathi Mantshantsha said it was after Eskom’s acting head of legal, and the company secretary, raised a legal question about the addition of the names. This was in addition to concerns raised by a few board members at the meeting. Read the full original of the detailed report in the above regard by Sabelo Skiti at TimesLIVE
Security guard injured, passengers unscathed after Cape Town commuter train caught fire on Monday News24 reports that a security guard was injured after a passenger train caught alight in Cape Town on Monday. The T2520 train from Kraaifontein to Cape Town caught alight at around 16:00, causing delays of around an hour after the northern line trains were temporarily suspended. The fire started while the train was travelling between Monte Vista and Acacia Park. Commuters were on board the train at the time of the fire, but no injuries were reported. Metrorail spokesperson Zino Mihi reported: "[A] Metro guard injured his knee and was taken to N1 City Hospital." One motor coach was burnt and another plain trailer partially burnt in the fire. "We are suspecting an electrical fault as the reason behind the fire as overhead wires were affected," Mihi said. An investigation is underway to assess the cost of the damaged coaches. Read the original of the report in the above regard by Nicole McCain at News24
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