In our Thursday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Unblocking skilled immigration a priority for joint Treasury and Presidency delivery unit Operation Vulindlela BusinessLive reports that Operation Vulindlela, the joint delivery unit in the Treasury and the Presidency, is overseeing a review of the work permit regime, which has been a constraint on growth and investment for at least two decades. Sean Phillips, head of the unit, briefed MPs on Wednesday on the progress made since the unit was established last October. The aim of the unit is to “unblock” constraints on growth and oversee the implementation of microeconomic reforms by government departments. Immigration policy has been hampered by red tape due to political opposition to the importing of scarce skills. The government has put increasingly onerous legislation in place on the assumption that skilled immigrants take the jobs of South Africans. “One of the key reforms is to review regulatory processes for issuing work permits to address the problem that business finds the application process unnecessarily onerous and ineffective. The growth of the economy is constrained by insufficient skills in a number of areas,” said Phillips. In February, the Department of Home Affairs published a critical skills list under the Immigration Act, which set out occupations where skills were in short supply. However, the list was decried as farcical. Phillips said the Presidency was now co-ordinating a process with the five government departments involved to broaden the critical skills list. It was also overseeing the full rollout of the e-visa system. Read the full original of the report in the above regard by Carol Paton at BusinessLive Despite employment gains in Q2, Agri SA concerned about skilled workforce decline in agriculture Engineering News reports that the agricultural sector is one of few that observed employment gains over the second quarter of this year, adding 69,000 people to its combined workforce. But industry body Agri SA is concerned about a decline in the skilled workforce in the sector. The employment gains were recorded across operations in the Western Cape, the Free State, KwaZulu-Natal, North West and Limpopo. Some provinces, however, experienced employment decreases, including the Eastern Cape (19,000), Northern Cape (9,000), Gauteng (8,000) and Mpumalanga (18,000). Agri SA expressed concern about the decrease in the skilled agricultural workforce, as it recorded a loss in employment from 62,000 in the first quarter to 45,000 in the second quarter. This marked a 27.4% quarter-on-quarter decrease and a 33.2% year-on-year decrease. Noting that more had to be done to accelerate skills development efforts in the sector, Agri SA’s Enterprises subsidiary has established the Agri Enterprises Training and Development Academy with the purpose of providing industry-specific training in scarce skills within the sector. “We can develop a community of lifelong learners, responsible citizens and champions of industries,” Agri SA investor relations administrator Lebogang Sethusha said. Read the full original of the report in the above regard at Engineering News
Busa and BLSA say that unemployment figures show structural crisis Engineering News reports that business organisations Business Unity SA (Busa) and Business Leadership SA (BLSA) said in separate statements that the unemployment figures released on Tuesday reflected a structural crisis. Busa CEO Cas Coovadia stated: "South Africa's unemployment rates are among the highest in the world, if not the highest. We have experienced unemployment rates of over 20% for the last two decades, which demonstrates that we have structural unemployment." BLSA CEO Busi Mavuso noted: "Having reached a record high of 34.4%, South Africa’s unemployment rate has surged to the highest on a global list of 82 countries monitored by Bloomberg. The structural unemployment crisis and underperforming economy can only be addressed by swift and decisive action by all social partners." The organisations stated that the measures undertaken by the state to safeguard the economy were clearly in need of urgent review. Busa said that the only sustainable way to address unemployment was by enabling businesses to grow and be profitable, which required an environment in which businesses were confident to make long-term job-creating investments. The government needed to make structural interventions in the economy to attract investment and make it easier for businesses to start, grow and employ people, said Coovadia. He pointed out that some of these interventions were changes to labour regulations, making it easier to start a business, policy certainty, political stability, rule of law and security, releasing spectrum, moving with urgency towards renewable energy and others. Read the full original of the report in the above regard at Engineering News
SA’s Covid-19 death toll surpasses 80,000 mark, with infections also up Eyewitness News reports that there has been another major spike in South Africa's daily Covid-19 casualties. In the last 24 hours, 516 more people have died in the country after contracting the virus, taking the national death toll to 80,469. Infections in the country are also up, with 13,251 tests coming back positive over the past 24-hour cycle, which represents a 20% positivity rate. On the vaccine front, just over 11.3 million vaccines have been administered so far. Read the original of the short report in the above regard at EWN. See too, SA records more than 500 Covid-19 deaths and 13,200 cases in 24 hours, at TimesLIVE More than 120,000 mineworkers now vaccinated against Covid-19 Mining Weekly reports that the parliamentary portfolio committee on mineral resources and energy has welcomed the vaccination of more than 120,000 mineworkers, or about 20% of the sector’s employees, against Covid-19. Collectively, the sector employs about 452,000 workers. On Wednesday, the committee was briefed by the Minerals Council SA (MCSA) on statistics relating to the Covid-19 pandemic, the management of Covid-19 and the vaccination process in the mining sector. The committee welcomed a commitment from the MCSA (previously known as the Chamber of Mines) to reach a vaccination target of 80% by the end of September. It also welcomed the council’s commitment to make available its members’ unused health centres as quarantine facilities. Noting the challenge of vaccination apathy and misinformation, the committee encouraged the MCSA to accelerate the vaccination of mineworkers in order to move to the second phase of vaccinating mining communities and those living in labour-sending towns. The committee also called on government to intensify communication about the importance of vaccination and address the myths around the so-called “vaccine passport”. Read the original of the short report in the above regard at Mining Weekly. Read too, Numbers of mineworkers who’ve had Covid-19 jab encouraging, at SowetanLive Other internet posting(s) in this news category
ANC offices shut down nationwide from Thursday as staff go on 'wildcat strike' over unpaid salaries TimesLIVE reports that African National Congress (ANC) offices will be closed from Thursday as staff strike over unpaid salaries and other grievances. This after the party was for the umpteenth time unable to pay salaries. Staff were told on Wednesday in a letter from ANC general manager Febe Potgieter that their outstanding July salaries would not be paid. Moreover, salaries due on 25 August will also not be paid. In the wake of the news, staff convened an urgent meeting where it was decided that the only response was to immediately cease working. In a statement, ANC spokesperson Pule Mabe said that party management had received a notice from staff that they would “go on strike” from Thursday. This was “in support of grievances submitted on June 15 2021, including late payments of salaries”. Mabe stated: “As a result of this wildcat strike, ANC offices throughout the country will be closed as of tomorrow (Thursday). The ANC management will continue to engage with staff representatives on their grievances, with a view to find a solution, so that we can resume normal operations.” The ANC has been battling with cash flow for months and has an unsettled R80m SA Revenue Services (Sars) tax bill. The party deducted pay-as-you-earn (PAYE) tax from staff salaries but did not pay the money over to Sars. The party has also failed to pay provident and pension funds for more than two years. It started failing to pay salaries in May when Sars garnisheed its allowances from the IEC, which the ANC receives as a party represented in parliament. Last week the ANC was forced to beg its staff, who had embarked on a go-slow, to suspend the industrial action and help the party meet the IEC's deadline of last Monday for registering its candidates to contest the upcoming municipal elections. Read the full original of the report in the above regard by Kgothatso Madisa at TimesLIVE
Treasury says public sector wage deal for 2021/2022 will cost R20bn Reuters reports that National Treasury advised on Wednesday that the wage agreement between the government and civil servants for the 2021/22 fiscal year will cost about R20 billion. Last month after several months of negotiations, the government and public sector employees struck a one-year deal for a 1.5% salary increase plus a cash payment. Trade unions had initially demanded far larger above-inflation increases. The government wanted to keep salaries flat to rein in a gaping budget deficit exacerbated by the Covid-19 pandemic. But when talks reached a deadlock and unions threatened strike action, the government softened its position. National Treasury said in a presentation before a parliamentary committee that the R20 billion cost was above the compensation ceiling contained in this year’s February budget. “Work is ongoing on how to address the wage agreement within the current constrained environment,” the presentation indicated. The government’s wage bill, accounting for about a third of consolidated spending, has been a major concern for credit-rating agencies, which have downgraded SA’s sovereign debt to “junk” status. Read the original of the short report in the above regard by Alexander Winning at Moneyweb Other internet posting(s) in this news category
MPs told state is finalising financial aid for Denel, which is unable to pay staff and suppliers BL Premium reports that an intergovernmental team representing the departments of public enterprises, defence and the Treasury are working on a plan to provide financial support for bankrupt state-owned arms manufacturer Denel. This was indicated to MPs on Wednesday by the director-general of public enterprises, Kgathatso Tlhakudi. “We are currently determining the form of support that Denel will receive for it to restructure itself and to ensure that it has the working capital to execute its orders,” he said. The government was also ensuring that Denel’s government-guaranteed loans were paid off, while it would ensure that there was a pipeline of work not only for Denel but for the broader defence industry. Tlhakudi insisted that the proposed government support was a recapitalisation and not a bailout. Denel is technically insolvent and available cash is insufficient to meet operational requirements, including the payment of salaries and suppliers. Denel currently owes R636m to employees and related costs, and about R900m to suppliers. “Some employees in their individual capacity have submitted court applications for the amounts owed to them. This poses a threat to Denel’s assets as execution orders to attach assets have been granted by the courts. The threat of other suppliers making a similar application persists as increased letters of demand are delivered to Denel,” Hlakoane said. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (paywall access only) SAA to return to skies in late September, status of subsidiaries unclear BL Premium reports that South African Airways (SAA) plans to resume flights again as of 23 September after a 15-month grounding of its aircraft. According to the airline, it will as an initial phase operate flights from Johannesburg to Cape Town, Accra, Kinshasa, Harare, Lusaka and Maputo. The resumption of flights is pending the conclusion of a due diligence process with the airline’s strategic equity partner. Discussions between the government and the Takatso Consortium (comprising Global Aviation and Harith General Partners), which is due to hold a majority stake at the airline, are apparently at an advanced stage. The airline has been under the control of its interim management and board after it concluded a tumultuous 17-month business rescue process in April, leaving the company solvent and liquid. SAA acting CEO Thomas Kgokolo was appointed in April and tasked with overseeing the carrier’s turnaround. SAA’s low-cost subsidiary, Mango, halted operations in July and was placed in business rescue in August. The status of SAA’s troubled subsidiaries, including SAA Technical (SAAT), following the Takatso takeover remains unclear. Read the full original of the report in the above regard by Thando Maeko at BusinessLive (paywall access only). Read too, SAA set to resume flights from late September, at Moneyweb
Gauteng DA concerned about high number of acting hospital CEOs, Makhura's failed promise to fill vacancies News24 reports that according to the Democratic Alliance (DA), Gauteng hospitals have a high CEO turnover because the wrong people are chosen for the posts, who are then suspended or fired. The party's health spokesperson in Gauteng, Jack Bloom, made the comment in reaction to provincial health department reports on Tuesday that eight out of 30 hospitals had acting CEOs. The department said recruitment processes were under way to fill the top positions at Dr George Mukhari Academic Hospital, Jubilee Hospital, Pretoria West Hospital, Bertha Gxowa Hospital, Far East Rand Hospital, Pholosong Hospital, Bheki Mlangeni Hospital and Sebokeng Hospital. Bloom stated: “This high number of acting hospital CEOs is another failed promise by Premier David Makhura who said two years ago that all hospitals would have permanent CEOs within six months.” Bloom added that the former CEO of Far East Rand Hospital was hired despite facing charges that he falsified his overtime records, and was fired after a long disciplinary hearing. Bheki Mlangeni Hospital was also having a crisis because its CEO presided over scandals for many years and was placed on precautionary transfer in October last year, the MPL said. Bloom said the DA would hold Health MEC Nomathemba Mokgethi to her promise to have permanent CEOs appointed in all hospitals by the end of December. Read the full original of the report in the above regard by Sesona Ngqakamba at News24
No plans to scrap school holidays in October, Minister Angie Motshekga tells MPs TimesLIVE reports that the Department of Basic Education (DBE) has denied that it plans to scrap this year’s spring holidays due to lost teaching time. On Tuesday, Minister Angie Motshekga and director-general (DG) Mathanzima Mweli denied that the department was planning to do away with the holidays. Schools are meant to go on break from 4 to 8 October. Last week, DBE spokesperson Elijah Mhlanga was quoted as saying the department had concluded consultations with unions regarding the possibility of postponing the October holidays, but a decision on the matter still had to be made. Motshekga told MPs on Tuesday that although the department was concerned about the time lost due to the Covid-19 pandemic this year, they “are not scrapping holidays.” She went on to indicate: “What we have committed ourselves to as a department was that we are going to look for days in the remaining days to compensate for those lost. It’s not scrapping. It’s our efforts to recover the days lost because of the problems that came with Covid-19.” Teacher unions and student governing bodies last week expressed their unhappiness with the possible scrapping of the October holidays, as apparently discussed by the council of education ministers (CEM) and the heads of education departments committee (Hedcom). Read the full original of the report in the above regard by Aphiwe Deklerk at TimesLIVE
Health Minister Phaahla places David Motau, CEO of Health Professions Council, on suspension again EWN reports that Health Minister Joe Phaahla has placed the Health Professions Council of SA’s (HPCSA’s) CEO and registrar on precautionary suspension pending an investigation into allegations of misconduct. David Motau’s suspension came into effect on Wednesday. Earlier this month, the then-acting Health Minister Mmamoloko Kubayi placed Motau on precautionary suspension as he was facing arrest. Motau is accused of fraud and corruption when he was the head of the Free State Health Department. He was arrested earlier this month and appeared in the Bloemfontein Magistrate’s Court alongside several co-accused, who face over 300 charges. Motau is out on bail. Shortly after his appointment, Phaahla withdrew Kubayi’s decision and lifted Motau’s suspension. He has now made another about-turn. The HPCSA said that the minister would soon appoint an acting registrar and CEO. Read the original of the short report in the above regard by Lauren Isaacs at EWN
Medical Research Council study finds more than half of SA's sex workers victims of rape News24 reports that early findings of a study by the SA Medical Research Council and the Perinatal HIV Research Unit has found that more than half of sex workers, in a sample of 3,000, have been victims of rape. This is the first time evidence has been available from a national sample of sex workers linked to sex worker programmes in 12 sites. "In the past year, 70.4% of female sex workers experienced physical violence, and 57.9% were raped: by policemen (14.0%), clients (48.3%), other men (30.2%) and/or an intimate partner (31.9%)," the study found. It said sexual intimate partner violence was associated with food insecurity, entering sex work as a child, childhood trauma exposure, post-traumatic stress disorder (PTSD), drinking alcohol to cope with sex work, working more days, partner controlling behaviour, having an ex-client partner, and having no current partner to protect from ex-partners. Dr Jenny Coetzee, the principal investigator of the study, said that because of the economic impact of the Covid-19 pandemic, there would likely be an increase in the number of people engaging in "survival-type" sex work. "It is vital that sex worker programmes are properly resourced, so that they can help protect sex workers from violence ... There has been a lot of research showing what needs to be done to help sex workers. Now we need committed resources to protect this vulnerable group of women," Coetzee said. Read the full original of the report in the above regard by Lwandile Bhengu at News24 Other internet posting(s) in this news category
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