In our Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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SA’s record 34.4% jobless rate in second quarter likely to worsen due to impact of unrest BL Premium reports that SA’s official unemployment rate, which reached a record 34.4% in the second quarter of 2021, is likely to worsen once the impact of the unrest that swept across parts of the country in July is reflected in future data. The record jobless rate may also widen further when SA’s more than 3.3-million discouraged job seekers, who are not counted in the official rate as they are not actively looking for work, start to return to the labour market as the economy opens up in response to an easing of the third wave of Covid-19 infections. Stats SA’s latest quarterly labour force survey (QLFS), released on Tuesday, showed the number of employed people fell by 54,000 in the second quarter to 14.9-million, while the number of unemployed jumped by 584,000 to 7.8-million. The effect of those movements pushed the official unemployment rate to the worst level since the survey was introduced in 2008. Bloomberg said it was the highest among the 82 countries it tracked. Three of the 10 industries monitored by the QLFS showed declines in the number of employed people, with the biggest declines in finance (278,000); community and social services (166,000); and manufacturing (83,000). The largest increases in employment were in construction (143,000) and trade (108,000). The loss of jobs in the financial sector was probably a symptom of Covid-19, which has accelerated digitization as customers become more accustomed to electronic interaction. Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (paywall access only) One in three South Africans are looking for jobs, and it could get even worse Fin24 reports that SA’s official unemployment rate for the second quarter worsened to a record of 34.4%, and economists expect this to worsen if the impact of the unrest in July is taken into account. Stats SA on Tuesday released the quarterly labour force survey, which showed unemployment at its highest since the survey was started in 2008. The country's total jobless - those who are seeking work but cannot find jobs - now amount to 7.8 million, compared to 7.2 million recorded in the first quarter. Steep losses were recorded in the formal sector. Taking into account the 3.3 million discouraged work seekers - those who want to work but have given up searching for jobs - the number of jobless comes to over 11 million. "Roughly speaking, the official unemployment rate suggests that one out of three people that are looking for work, can't find employment," said Lisette IJssel de Schepper, senior economist at the Bureau for Economic Research. The level of employment was almost 1.5 million below that seen in the fourth quarter of 2019 - before the Covid-19 pandemic and its associated lockdowns hit, IJssell de Schepper noted. She added that the outlook for the third quarter was pretty concerning: "We had a stricter lockdown level for most of the quarter relative to Q2 [second quarter]. We would also have to see what the impact will be of the riots and unrest we saw in July." Similarly, chief economist at Citadel, Maarten Ackerman, pointed out that the unemployment figure did not take into account adjusted lockdown level 4 and the unrest in KwaZulu-Natal and Gauteng. "We can expect the number to take a further knock, given lockdown and depending on what happened in the Gauteng and KwaZulu-Natal riots," he said. Read the full original of the report in the above regard by Lameez Omarjee at Fin24 (paywall access only) Solidarity warns that unemployment figures show SA’s stagnation around new all-time low Solidarity on Tuesday expressed its concern about the latest unemployment figures released earlier by Statistics SA. According to the extended definition of unemployment, the data showed an increase in the general unemployment rate in the second quarter to 44.4%, from 43.2% in the previous quarter. According to the trade union, these figures indicated de-industrialisation, as manufacturing has shown a large decrease in employees year after year. “This is bad news, because it shows that South Africa is becoming more of a withdrawal economy and adding less and less new value. In short, South Africa is looting its territory and squandering its citizens’ future. No country has ever been able to become a modern, prosperous society by focusing only on agriculture and mining,” commented Theuns du Buisson, Economic Researcher at the Solidarity Research Institute (SRI). Solidarity reiterated its call on the government “to trust its citizens to look after their own interests, by immediately scrapping the minimum wage and reviewing other policies that make it difficult to find work.” Du Buisson went on to comment: “The country’s young people are being robbed of their future by unfavourable government policies that keep them out of the workplace. We need a dynamic work environment that gives people opportunities to succeed, or to fail. At the moment, the government is preventing any form of progress due to the fear that some may not achieve complete success.” Read Solidarity’s press statement on the above at Solidarity News Policy implementation is needed to reverse unemployment, says Seifsa Engineering News reports that Steel and Engineering Industries Federation of Southern African (Seifsa) chief economist Chifipa Mhango said on Tuesday that government needed to urgently focus on job creation efforts as it tried to revive the economy. Key to addressing this challenge, would be the speedy implementation of government's economic policies to address the bottlenecks in the economy. “The Statistics South Africa Quarterly Labour Force Survey data released on August 24 is a sign that efforts to reverse the impact of Covid-19 on the economy and employment will continue to be a bumpy ride unless there is a focus on government policy implementation,” Mhango noted. He added that Seifsa remained concerned about the job losses experienced in the metals and engineering sector. The sector’s contribution to overall total manufacturing employment has dwindled from 37.9% in 2008 to 35% today. The sector lost 35,000 jobs in 2020. Challenges facing businesses in the metals and engineering sector, such as high electricity costs, unreliable energy supply and disruption in raw material supply, rising logistics costs and cheap imports, have continued to weigh negatively on the industry. “While government and businesses in the sector and other stakeholders have partnered to address these challenges through the implementation of the Steel and Metals Fabrication Master Plan, there needs to be a sense of urgency to implement the interventions,” Mhango exhorted. Read the full original of the report in the above regard at Engineering News Other internet posting(s) in this news category
Slain Gauteng health official was witness in SIU’s investigation into PPE purchase irregularities TimesLIVE reports that senior Gauteng health department finance officer Babita Deokaran, who was gunned down outside her Johannesburg South home on Monday, was a witness in the Special Investigating Unit’s (SIU) investigation into PPE purchase irregularities. She died later in hospital. SIU spokesperson Kaizer Kganyago confirmed that the 53-year-old Deokaran was one of 300 witnesses in the investigation into the Gauteng PPE scandal. “While we view what has happened in a very serious light and are very concerned by the murder of one of the witnesses in our case, we cannot yet attribute it to the investigation that we were conducting,” Kganyago indicated. He said that Deokaran’s death would not jeopardise the investigation as she was “one of many witnesses who we were relying on in our investigation.” Gauteng health department MEC Nomathemba Mokgethi said that Deokaran, whom she described as “invaluable”, worked as chief director of the financial accounting department and at times acted as the CFO. Read the full original of the report in the above regard by Graeme Hoskin at BusinessLive
West Coast towns hit hard by Covid-19 third wave, with lack of safety protocols and vaccine hesitancy behind outbreaks News24 reports that rural areas along the West Coast have seen a rise in Covid-19 infections during the third wave, with small towns bearing the brunt of cluster outbreaks. According to Western Cape Health MEC Nomafrench Mbombo, towns on the West Coast, particularly in the Matzikama Municipality, had relatively low cases in the first and second wave. However, over the last few weeks, cluster outbreaks have been recorded in several towns. These include Papendorp, Stofkraal, Molsvlei, Rietpoort, Bitterfontein, Ebenhaeser, Doringbaai, Nuwerus and Kliprand. Kilprand made headlines in June when around 10% of the town tested positive for Covid-19. At the time, the provincial health department also flagged outbreaks in four small towns in the province – Hawston, Murraysburg, Suurbraak and Buffeljagsrivier – saying rural communities were becoming increasingly at risk of infection. The number of towns experiencing outbreaks has multiplied in the last few weeks. Some towns have seen infections in more than 10% of the population. The infections have been primarily driven by a trend towards "personal non-adherence with the non-pharmaceutical intervention", said Mbombo. Vaccine hesitancy also played a role, she noted. "There have been reports of vaccine hesitancy among community members influenced by religious concerns and misinformation on the risks and effects of the vaccine. We are continuously engaging communities in providing them with factual, accurate information to make an informed decision," Mbombo indicated. Read the full original of the report in the above regard by Nicole McCain at News24 Other internet posting(s) in this news category
Soldiers deployed in KZN in wake of recent unrest left by SANDF to go hungry Daily News reports that starving military forces deployed in July to defuse tensions in the wake of the recent civil unrest in KwaZulu-Natal (KZN) and Gauteng are crying out for help. Sources within the army in KZN said they desperately needed help to put pressure on the state to meet its obligations and feed the hungry soldiers who have been hard at work assisting the police to restore order over the past two months. One source alleged that more than 220 soldiers based at Estcourt Secondary School have so far received only R600 for meals since they were deployed on 15 July. “We are paid between R16,000 and R18,000 before deduction, so can you imagine what this is doing to us? Deploying us and never (providing) food and clean water,” said the source. He claimed that one of the soldiers had to be rushed to hospital last Thursday when his body collapsed after weeks of starvation as he did not have money to buy food. A soldier deployed to Hammarsdale and overseeing the Pietermaritzburg area claimed they were also starved and had not been provided with basic supplies. He said the Gift of the Givers Foundation had come to their rescue. Pikkie Greeff of the SA National Defence Union (Sandu) said the union would write to the ministry demanding answers, and instruct them to act immediately to resolve the collapsing state of the army. SANDF spokesperson Brigadier-General Mafi Mgobhozi indicated that a meeting had been held on Monday and had resolved to attend to the issues. Read the full original of the report in the above regard by Thabo Makwakwa, Gcwalisile Khanyile at Daily News Other internet posting(s) in this news category
ConCourt told that state’s reneging on 2018 wage agreement undermined collective bargaining BL Premium reports that public sector unions told the Constitutional Court (ConCourt) on Tuesday that the government’s reneging on aspects of the 2018 wage agreement damaged the trust between it and employees. The unions said the government’s decision not to honour the final leg of its three-year wage agreement jeopardised the bargaining process as the state could no longer be relied upon to fulfil contractual obligations it had entered into. The unions — including Nehawu, Sadtu and the PSA — approached the top court to challenge last year’s ruling by the Labour Appeal Court, which upheld a Treasury decision not to implement the final part of a three-year public-sector wage deal due to a lack of money. The unions’ legal representatives claimed on Tuesday that the government’s non-implementation of binding agreements undermined collective bargaining and set a bad precedent for the private sector. Advocate Chris Orr, for the PSA, argued that the consequence of a finding of invalidity was that the whole wage agreement “must be set aside. It cannot be that only clause 3.3 [dealing with the last year of the agreement] gets set aside”. This led to Justice Mbuyiseli Madlanga interjecting: “Be careful what you wish for Mr Orr.” Advocate Timothy Bruinders, representing the government, said the state did not negotiate in bad faith with the unions, but it simply did not have money to implement the last leg of the agreement. Judgment was reserved. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only). Read too, Impasse between government and labour sets tone for a testy day at the ConCourt, at Engineering News
Richards Bay Minerals restarts operations after weeks of engagement to stabilise security situation BL Premium reports that Richards Bay Minerals (RBM) has restarted operations after stabilising the security situation around the mine. The operations of the heavy mineral sands extraction and refining company were closed in late June amid growing tensions that had seen the murder of the company’s general manager Nico Swart, who was killed when 20 bullets were fired into his vehicle. The reopening of RBM comes after weeks of work to address safety and security concerns at the operations, which are owned by Rio Tinto. Among the measures taken is an agreement between RBM and community stakeholders to support enhanced governance and controls of community trusts. RBM has released more than R130m to the community trusts established in 2009 for each of the four communities surrounding the mining and smelter operation which, it said, will directly support local economic development in the communities. The company has also reached an agreement with local youth, as represented by the Sokhulu Youth Forum. The restarting of the operations is good news for the local economy. With 5,000 employees, RBM is the largest taxpayer in KwaZulu-Natal, which in July was hit by economically destructive riots and looting. In the balance too is Zulti South, a R6.7bn life-extension project which was approved by Rio Tinto in 2019, but which has yet to get off the ground. Read the full original of the report in the above regard by Lisa Steyn at BusinessLive (paywall access only) Fears for safety of Numsa members after assassination of recruiter outside Rustenburg CCMA offices The Star reports that the National Union of Metalworkers of SA (Numsa) says its members at Implats mine in Rustenburg are under threat, following the assassination of a union recruiter Malibongwe Mdazo last week. Mdazo was shot dead outside the offices of the Commission for Conciliation, Mediation and Arbitration (CCMA) while verification of Numsa membership of workers at Newrak, a mining services company, was underway. Numsa spokesperson Phakamile Hlubi-Majola says Mdazo was killed while taking a break from the CCMA proceedings. The union suspects the recruiter was shot because he was a mass mobiliser. His death has shaken workers at Implats. “Tensions have been caused by contract companies at Implats. There are five contract companies which provide services to Implats. The majority of the workforce to Implats is outsourced to the contractors. These contractors are refusing to recognise Numsa. They are actively undermining our efforts and, in some cases, forcing workers to renounce their membership of Numsa,” Hlubi-Majola claimed. She accused the contractors of meddling with the workers’ choice of either Numsa or Amcu: “We believe comrade Mdazo was killed because he is responsible for recruiting thousands of workers to Numsa, this is why he was murdered. There are some who are threatened by Numsa taking over as the dominant union at Implats and the contractors may be involved.” Police are investigating Mdazo’s murder. Meanwhile, Numsa workers at Implats have been asked to be vigilant. Read the full original of the report in the above regard by Itumeleng Mafisa on page 4 of The Star of 24 August 2021 Other posting(s) relating to mining
Denel operating without a tax clearance certificate, given a week by Sars to pay PAYE and VAT BL Premium reports that Denel is operating without a tax clearance certificate and can be held criminally liable for breaking tax law. On Monday, the state-owned defence company and arms manufacturer received a letter from the SA Revenue Service (Sars) giving it had a week to pay its PAYE and VAT obligations to the taxman. Sars said it would issue Denel with the critical tax clearance certificate only on payment of the obligations. The company did not disclose how much it owed the revenue service. Section 234 of the Tax Administration Act lists failing or neglecting to withhold and pay Sars tax when required to do so among prosecutable offences. On Tuesday, Denel’s acting CEO William Hlakoane and board chair Monhla Hlahla briefed parliament’s standing committee on public accounts (Scopa) on its debt and other issues. “It is almost resolved ... we have received the letter yesterday [Monday] saying they [Sars] are willing to accede to us ... as we speak we have a team that is working with Sars to see how much can be paid at the end of the month,” Hlakoane claimed. According to Hlakoane, suppliers have grown so mistrustful that many were demanding payment in advance. The state-owned enterprise is drowning in debt, including R636m owed to staff and R900m to suppliers. Read the full original of the report in the above regard by Erin Bates at BusinessLive (paywall access only) Other internet posting(s) in this news category
Finance committee proceeds to consider DA-proposed pension fund bill to permit loans to members BusinessLive reports that on Tuesday parliament’s finance committee proceeded with consideration of a DA-proposed bill, notwithstanding Treasury’s undertaking that a pension fund reform bill would be released for public comment later in 2021. The DA bill would allow for loans to be taken out against a guarantee provided by a pension fund. Chair Joe Maswanganyi stressed that the committee had to strictly stick to the legislative procedure in processing a bill proposed by DA MP Dion George, to avoid a possible legal challenge. The committee has already held public hearings on the Pension Fund Amendment Bill. As proposed by Cosatu, George agreed to amend his bill to reduce the permissible maximum amount of a loan guaranteed by a member’s pension fund assets from 75% to 30% of the assets. Cosatu supported the principle of pension-fund members being able to borrow against their pension funds to assist them in a situation of financial crisis precipitated by the Covid-19 pandemic, but believed a 75% limit would result in the depletion of funds. Another amendment proposed by George was that only one loan per member would be allowed. Treasury deputy director-general Ismail Momoniat expressed strong opposition to George’s “seriously flawed” bill, which he said failed to consider the tax implications, lacked technical detail and failed to take into account that the fundamental objective of retirement funds was to get people to save for their retirement. Momoniat said the Treasury was “pretty confident” that its bill on pension fund reform could be released for comment at the same time as the medium-term budget policy statement later in 2021. Read the full original of the report in the above regard by Linda Ensor at BusinessLive Other internet posting(s) in this news category
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