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 early morning roundup, see summaries
of our selection of recent South African labour-
labour-related reports.
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With assent by a majority of state employees, government gets public sector wage agreement over the line BL Premium reports that after three months of talks, the government has reached a deal with a majority of public sector employees, with the “interim” one-year wage deal to be implemented as early as Tuesday. With the Public Servants Association (PSA) announcing on Monday that it would sign the deal, the threshold of 50% was reached. The SA Democratic Teachers Union (Sadtu), the Health & Other Services Personnel Trade Union of SA (Hospersa) and the National Professional Teachers Organisation of SA (Naptosa) have already signed the agreement. The National Teachers Union (Natu) announced at the weekend that it had accepted the government’s wage offer. In a statement issued on Monday, the PSA said it would “accept” the wage offer after finalising its mandate-seeking process on 22 July. The PSA had earlier declared a dispute at the bargaining council and its members had voted for a strike “to apply pressure on the employer to pay attention to employees’ pleas for a salary adjustment”. The deal means employees will receive a R5,000 payment after tax with their August salary, which will include R4,000 back pay. SA’s largest public service union, the National Education, Health and Allied Workers’ Union (Nehawu), has vowed that it will not sign the agreement, but its members will benefit in any event because the agreement is binding. The government’s improved offer to unions for 2021/2022 includes a 1.5% pay progression increase (an increase linked to years of service) and a monthly cash gratuity on a sliding scale of between R1,220 and R1,695. The sliding scale will ensure that all employees below management level receive R1,000 after tax. A clause in the offer states that if no agreement is reached by 31 March 2022 on the 2022/2023 salary adjustment, the cash allowance will continue to be paid to all employees. The offer translates to an 11.7% wage increase for the lowest-paid public servants. Wage negotiations for the next financial year will need to begin in September. Read the full original of the report in the above regard by Carol Paton and Luyolo Mkentane at BusinessLive (paywall access only). Read too, Third big union accepts public sector wage offer, at Fin24
Primary school security guard dies after attack by robbers in Cape Town on Saturday News24 Wire reports that a Cape Town security guard died after having been attacked by robbers who broke into a school days before the return of pupils. Western Cape police spokesperson Captain FC van Wyk said the 59-year-old guard was attacked at a primary school in Manenberg on Saturday. “The perpetrators assaulted the 59-year-old male while breaking into the school and stealing various items such as kettles, pots, a dishwasher and microwave. He was taken to a nearby hospital for medical treatment. A case of attempted murder and housebreaking was opened initially. The case was changed to murder after he died,” Van Wyk reported. Manenberg police have arrested two people. One will be charged with murder, and the other for possession of stolen property. News of the guard’s death came as a blow on an already difficult first day back at school in Cape Town on Monday, with disruptions to transport because of the closure of a major taxi route. Western Cape Education MEC Debbie Schäfer said the education department was generally pleased with the start of the third school term after the long break due to a rise in Covid-19 infections. However, shootings targeting taxis led to lower than usual school attendance due to the disruptions, particularly in the City Bowl and surrounds. Read the full original of the report in the above regard at The Citizen
Pupils will be vaccinated if health department gives directive and parents consent, says Angie Motshekga TimesLIVE reports that the Department of Basic Education will not oppose the vaccination of pupils if the national health department issues that directive, minister Angie Motshekga said at the weekend. She added that the department would need to get parental consent to facilitate the vaccination process. Motshekga indicated: “If health says learners must be vaccinated and parents consent, we will work on the logistics. Even with the teachers, we work with mobilising and on the logistics, but it's not in our hands to decide on who gets vaccinated where and when. I'm aware that other countries are already beginning to consider the vaccination of young people. We will learn from them and see what we do as a country. We will do what we have to do, advised by the interministerial advisory committee.” According to the World Health Organisation (WHO), its Strategic Advisory Group of Experts recently concluded that the Pfizer/BionTech vaccine is suitable for use by people aged 12 years and above, while vaccine trials were ongoing to establish the effectiveness of Covid-19 vaccines on children younger than 12 years. Motshekga also said pupils had lost about two years of learning since the pandemic started. “It's very devastating. Last year we lost 75% of teaching time but in terms of learning, it's even worse than the time we lost. If nothing happens drastically, we're going to face a catastrophic future with the generation we have. Schooling is supposed to be 12 years. It's just too much and very dangerous for the future of our country and children,” she lamented. Read the full original of the report in the above regard by Cebelihle Bhengu at TimesLIVE Lesufi hopes that 7% of Gauteng teachers will change their minds and vaccinate against Covid-19 News24 reports that Gauteng MEC for Education, Panyazi Lesufi, says that as the Covid-19 vaccination rollout continues for different groups of people, he hopes the seven percent of teachers who have declined to be vaccinated will change their minds and vaccinate. "The numbers are still disturbing. We thought when we announced that teachers would be vaccinated that they would rush to the door to be vaccinated. We are standing at seven percent of educators who have completely refused to be vaccinated," Lesufi told the media during his school visits on Monday as pupils returned to school for term three in the province." According to the Gauteng Department of Education spokesperson Steve Mabona, 125,000 teachers registered in the province, and 93% are vaccinated. This equates to just over 8,000 teachers who have opted not to vaccinate. Lesufi believes that seven percent is still a significant figure, but he hopes that the excitement of other vaccination groups receiving the jab will encourage the seven percent to change their minds. Lesufi added that they were still auditing who has been vaccinated among the 4,000 teachers who had previously applied to stay home due to underlying diseases. Read the full original of the report in the above regard by Canny Maphanga at News24 Other internet posting(s) in this news category
Former police general, five officers in court again this week on Marikana-related charges TimesLIVE reports that a former North West deputy police commissioner and five other police officers appeared at the Mahikeng High Court again on Monday on several charges, including murder and defeating the ends of justice. The charges mainly relate to events on 13 August 2012, just days prior to the infamous Marikana massacre on 16 August 2012. Gen Mzondase William Mpembe appeared in court alongside Col Salmon Vermaak, Const Nkosana Mguye and warrant officers Collin Mogale, Joseph Sekgwetla and Khazamola Makhubela. The six are facing five counts of murder, attempted murder, defeating the ends of justice and contravening the Commissions Act by giving false information to the Farlam commission of inquiry into the Marikana massacre. “Several key witnesses have already testified when the matter appeared at the high court in October 2020. Among those were a crime scene expert from the SAPS, a CCTV operator from Lonmin mines and a videographer from the SAPS,” said National Prosecuting Authority (NPA) spokesperson Henry Mamothame. The case is set to continue until Friday and the state is expected to call more witnesses during the course of the trial, Mamothame said. Read the original of the report in the above regard by Nomahlubi Sonjica at TimesLIVE Other internet posting(s) in this news category
Lack of funding leads to retrenchment and salary payment uncertainties for SAA Technical BL Premium reports that SAA Technical (SAAT), which is the repair and maintenance unit of SA Airways (SAA), has yet to receive the R1.66bn due to it from the government, leading to a stalling of its retrenchment processes and possible partial payment of employee salaries. SAAT along with other SAA subsidiaries, Mango Airlines and Airchefs, were allocated a combined R2.7bn by the Special Appropriations Bill which was approved by parliament in June. The R2.7bn forms part of the R10.5bn allocated to SAA in the October medium-term budget policy statement. Although SAA has received its funds and has exited business rescue, the funds from the government have yet to flow to its subsidiaries which continue to grapple with financial challenges spurred on by the grounding of the parent company and the ongoing challenges faced by the aviation sector due to Covid-19, according to unions. The company informed employees in April that its retrenchment process would see its staff complement of 2,019 employees reduced to 1,203 due to financial challenges. National Union of Metalworkers of SA (Numsa) spokesperson Phakamile Hlubi-Majola said the final meeting regarding retrenchments at SAAT was expected to take place on Wednesday, but it was unclear whether the funds from the government would have been transferred to the company in time for it to conclude the retrenchment process. “Retrenchment processes must be funded. They want to cut jobs and offer voluntary severance packages but there is no money to pay packages. As far as we know money was allocated by Treasury to DPE [department of public enterprises] but it has still not been [transferred],” she said. Regarding the payment of salaries for July, trade union Solidarity informed its members at SAAT on Thursday after consultations with management that there has not been any “significant movement” on funding and collection of outstanding monies [from customers]. “A meeting will be convened should there be any significant movement around the funding towards the 25% payment of salaries for July 2021,” the notice reads. Read the full original of the report in the above regard by Thando Maeko at BusinessLive (paywall access only) SAA board agrees that Mango Airlines should be placed in business rescue Reuters reports that SA Airways (SAA) subsidiary Mango Airlines will enter into business rescue, SAA’s interim CEO Thomas Kgokolo told eNCA on Monday. Kgokolo said in an interview: “The board and shareholders have agreed Mango will go into business rescue. We are in consultation with our key stakeholders on how we can manage that particular process.” SAA, which exited business rescue in April, is one of the state-owned companies that depended on government bailouts, placing the national budget under huge strain. The government announced in June that it was selling a 51% stake in SAA to the Takatso Consortium to give the airline a new lease of life. Read the original of the report in the above regard by Olivia Kumwenda at BusinessLive. View eNCA’s video report here. Lees ook, Mango ook op sakereddingsroete, by Maroela Media Mango says it could return to profitability by 2024 through business rescue BL Premium reports that SA Airways (SAA) interim CEO Thomas Kgokolo has indicated that Mango Airlines, SAA’s low-cost subsidiary, will be placed in business rescue. He advised on Monday that the decision was taken by the airline’s board and the government, and consultations with unions on the matter were ongoing. The airline has yet to be granted approval by the courts to be placed in business rescue in line with the Companies Act. The National Union of Metalworkers of SA (Numsa), the SA Cabin Crew Association (Sacca) and the Mango Pilots Association on Monday filed an application in the High Court in Johannesburg seeking business rescue for Mango to avoid the state-owned airline from being liquidated. The parties want to have the application heard on an urgent basis in August before the liquidation application by two of Mango’s creditors, Aergen Aircraft Four and Aergen Aircraft Five, is heard. In a statement, the unions said they want Ralph Lutchman from Concord Administrators to be the business rescue practitioner (BRP). Mango and SAA have not yet identified a BRP. Should the ailing SAA subsidiary undergo business rescue as well as receive the R819m due to it from the government, it could return to profitability by 2024, according to a Mango financial sustainability report. Mango estimates that should it introduce reforms over the next two years, such as reducing its staff complement and its ground handling costs, as well as its IT costs, it could make a profit of R97m in 2023 and R146m in 2024. Mango has been in dire financial straits since the start of the pandemic due to the grounding of its parent company SAA, which was placed in business rescue, as well as the ongoing challenges in the domestic aviation industry brought about by Covid-19. Mango’s more than 700 employees have not received their full salaries for June and July and are owed at least six months’ pay. Read the full original of the report in the above regard by Thando Maeko at BusinessLive (paywall access only). See too, Mango unions grew tired of govt promises, filed for business rescue, court documents show, at Fin24 Other internet posting(s) in this news category
Telkom to pay R20m in retention bonuses to outgoing CEO Sipho Maseko TechCentral reports that Telkom has disclosed in its integrated report, published on Monday, that it will pay its outgoing group CEO R20 million to retain his services for the two years between March 2020 and March 2022. Telkom announced last week that Sipho Maseko plans to step down in the middle of next year after what will have been nine years at the helm. But it appears Maseko, who is widely regarded for having turned around Telkom’s fortunes after he joined the then-troubled group in April 2013, has had itchy feet for some time and Telkom has had to cough up big money to retain his services. Telkom disclosed that Maseko was paid a total of R35.4 million, including the R10 million retention bonus, up from R21.8 million. The group agreed to pay him a R10 million retention bonus for the year ended March 2021 and will pay him another R10 million in the current financial year ended in March 2022. In its 2021 remuneration report, Telkom disclosed that Maseko was paid a total of R35.4 million, including the R10 million retention bonus, up from R21.8 million in the 2020 financial year. His pay was made up of an R8.8 million guaranteed package (the same as in 2020). He was also awarded R10.2-million in short-term incentives (up from zero in 2020) and vested shares amounted to R6 million, from R10.5 million previously. Read the original of the report in the above regard by Duncan McLeod at Moneyweb. Read too, Outgoing Telkom CEO kept on R10 million retention fee, at Fin24 Other internet posting(s) in this news category
Salga calls on municipalities to pay back R1.2bn spent on financial reporting by consultants The Citizen reports that the SA Local Government Association (Salga) has called on municipalities that paid more than R1 billion to consultants for financial reporting to pay back the money or face the wrath of the law. The association, which represents SA’s local authorities, said in a statement that municipalities across the country had paid more than R1.2 billion to consultants, which they hired to audit their books before they were sent to the office of the auditor-general (AG). This despite municipalities having appointed chief financial officers or charted accountants for similar work. “There is a worrying and growing trend for the use of consultants in municipalities for financial reporting purposes. Yet some of the municipalities using consultants have nothing to show for it,” the association indicated in a statement. About 59% (102) of financials submitted for auditing included material misstatements. “This means that even when they hired consultants, these municipalities could not complete financial statements. This practice of using consultants for financial reporting must be stopped as it yields no results. Salga will again be writing to all municipalities implicated to conduct investigations and act against any wrongdoing. Where nefarious intentions are found, people must be held to account,” the association warned. Salga said on Monday that 43 letters had been sent to the accounting officers of the municipalities that had incurred the highest amounts of irregular expenditure. Read the full original of the report in the above regard by Alex Japho Matlala at The Citizen Other internet posting(s) in this news category
Consumers holding on to medical scheme membership despite weak economy and widespread job losses BL Premium reports that SA’s two biggest medical scheme administrators, Discovery Health and Medscheme, have reported growth in membership among their client schemes, despite the downturn in the economy and widespread job losses during the coronavirus pandemic. “We’ve seen an unbelievable growth in Discovery Health Medical Scheme since December,” said Discovery Health CEO Ryan Noach. The growth was contrary to expectations, and appeared to be because people were prioritising health cover over other spending, even if they lost their jobs, he stated. The growth in medical scheme membership was primarily among individuals seeking cover, rather than among businesses adding to their pool of subsidised employees, Noach noted. He speculated that the intensity of SA’s second wave of coronavirus infections, which began to surge in early December, contributed to consumers’ decisions. A similar trend has been seen in Medscheme, SA’s second-biggest medical scheme administrator. “We were expecting a drop-off but it hasn’t happened at all. People are holding on to medical aid for dear life, and we are seeing no more buydown than usual. People are afraid of the health-care challenges they are facing, and want to be sure they are covered,” said Afrocentric CEO Ahmed Banderker. Medscheme provides managed care services to the Government Employees medical Scheme (Gems) and had seen growth of 5,000 lives in that part of the business since January. The trends in medical scheme growth are surprising, as the market has stagnated for the past decade and failed to keep pace with population growth, leaving monthly premiums unaffordable for an increasing proportion of consumers. While membership is closely correlated with income and employment, it is also linked to affordability, and in the run-up to the coronavirus pandemic annual premium increases consistently outstripped consumer price inflation. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (paywall access only)
As arbitration over disputed route gets underway, more than 1,000 Golden Arrow buses help during Cape Town taxi crisis News24 reports that taxi bosses from the Cape Amalgamated Taxi Association (Cata) and Congress of Democratic Taxi Associations (Codeta) went into arbitration on Monday over a disputed route between Bellville and Paarl that has been closed for two months after a cycle of deadly shootings. The SA National Defence Force (SANDF), police, and law enforcement authorities helped with security as alternate transport was brought in. Golden Arrow Bus Service (GABS) made its entire fleet of 1,100 buses available to help transport pupils returning to school and commuters who usually use the associations' taxis. GABS spokesperson Bronwen Dyke-Beyer advised: "What we have undertaken is to run buses continually until all passengers have been assisted. This means running additional services after the peak and augmenting the peak where possible. An example of this is that last week we ran buses until after curfew (with permission) to ensure that no passengers were left behind." Last Monday, a GABS driver was shot, and that night, the drivers were too scared to get behind the wheel. The SANDF and various policing agencies are patrolling at ranks. Dunoon Taxi Association (DTA) secretary Grant Qotyiewe said Monday was very busy with school reopening, but they experienced no problems. The DTA is not affiliated with the warring associations, so its operations have not been hampered. Read the full original of the report in the above regard by Jenni Evans at News24 Other internet posting(s) in this news category
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