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 Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Minister Lindiwe Zulu withdraws controversial green paper on social security reform BusinessLive reports that Social Development Minister Lindiwe Zulu has withdrawn the green paper on comprehensive social security and retirement reform less than two weeks after it was first gazetted on 19 August. No reasons were given for the withdrawal of the green paper, which had not been approved by the cabinet nor discussed with the Treasury. According to the Treasury, the green paper was not government policy and its proposals had not been checked against its tax and fiscal policies. Organised business had earlier pointed out that the green paper, which largely reproduced a 2012 paper, had not taken into account the views expressed in the National Economic Development and Labour Council (Nedlac), which had been discussing social security reform for the past five years. Trade unions had indicated strong opposition to the proposal that all employees would be mandated to contribute 8% to 10% of their qualifying earnings up to R276,000 to a state-run national social security fund, which would have pooled resources to provide retirement, survivor, disability and unemployment benefits. Private sector players had expressed unease at the creation of a huge bureaucratic structure that could have damaged what was regarded as a well-functioning private system, an argument reminiscent of discussions around the government’s attempt to set up the National Health Insurance Fund. Read the full original of the report in the above regard by Linda Ensor at BusinessLive
‘Staggering surge’ in insurance industry policyholder deaths ascribed to Covid-19 BL Premium reports that statistics on mortality claims from the insurance industry show that more than a million policyholders died in the most recent one-year measurement period, which the sector said was “no doubt” linked to Covid-19. Data from the Association for Savings and Investment SA (Asisa) shows that 1,023,083 policyholders died between April 1 2020 and March 31 2021 — a 43% increase on the 713,350 deaths recorded over the corresponding period in the previous year. The statistics, which were released by Asisa on Tuesday, reflect claims made against individual life, group life policies offered by employers, credit life and funeral policies. Total claims payouts across the various insurance lines for the period totalled R47.58bn. “These are staggering numbers and there is no doubt that Covid-19 has caused many of these additional deaths, whether directly as a result of a person contracting the virus or because people were reluctant to seek medical attention for other serious conditions,” said Hennie de Villiers of the Asisa life and risk board committee. He noted that the hard lockdown conditions, curfews and alcohol bans would have reduced violent and accidental deaths. Meanwhile, the SA Medical Research Council estimates that there have been more than 240,000 excess deaths since the start of the pandemic. Using SA’s recorded Covid-19 case fatalities with the excess death data, which measures mortality numbers in relation to the historic average, Discovery estimates that 70% to 80% of the population may have contracted the virus. Life expectancy at birth for SA males dropped from 62.4 in 2020 to 59.3 in 2021, while for females life expectancy fell to 64.6 years, from 68.4 in 2020. Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (paywall access only). Read too, Momentum pays out R1.4bn for Covid-related death claims, at Business Report SA scientists keep close tabs on new Covid-19 variant detected in all provinces BusinessLive reports that scientists are monitoring mutations of a new variant of Covid-19 present in all provinces, although the newly identified lineage only accounts for a small proportion of cases. A local study flagging the variant — dubbed C.1.2 — was published last week, although it has yet to be peer reviewed. The variant has garnered significant attention because the researchers say its multiple mutations have been associated in other variants with increased transmissibility and disease severity. It accounts for about 0.06% of over 150,000 active cases in SA at present. The C.1.2. variant has been identified in several other countries, including Botswana, Mauritius and the Democratic Republic of Congo. By Monday night, when the National Institute for Communicable Diseases (NICD) held a briefing, 109 cases had been identified in SA. The discovery of new variants is of great concern to scientists, with earlier versions having driven new waves of infections. In India, the spread of the Delta variant caused a surge in cases and deaths and Delta is now dominant in much of the world, including SA. C.1.2. is not yet a variant of interest, but has the potential to become one. Mutations of significance are initially classified as variants of interest by the World Health Organization and, if they are then identified as being more severe or transmissible, they are termed variants of concern. Read the full original of the report in the above regard by Erin Bates at BusinessLive. Read too, Now new variant stalking the nation, on page 1 of The Star of 31 August 2021 Road Freight Association to pilot pop-up vaccination sites for truck drivers along the N3 News24 reports that truck drivers will soon be able to be vaccinated while on the road, thanks to pop-up vaccination sites at filling stations along the N3. On Tuesday, the Road Freight Association (RFA) advised that it had partnered with Trucking Wellness, Engen and the National Bargaining Council for the Road Freight and Logistics Industry to establish pop-up vaccination sites at Engen garages along the N3 route. The first site from 6 to 10 September will be at Engen Highveld 1-Stop West on the R21. The RFA explained the five-day pilot project was to see whether drivers were interested in getting vaccinated. Gavin Kelly of the RFA commented: “Long-distance truck drivers spend many hours on the road making their deliveries, so it is very challenging for them to find somewhere safe and convenient to get their jab. The Engen Highveld 1-Stop is the perfect place for drivers on the N3 to do this: great facilities, ample parking and very safe." Sipho Zungu of the All Truck Drivers Forum said they welcomed the initiative, but wished it had come sooner. Zungu added that there were mixed reactions among drivers about getting vaccinated. Read the full original of the report in the above regard by Lwandile Bhengu at News24. Read too, Vaccination stations to be launched for truck drivers, at Engineering News Other internet posting(s) in this news category
Sactwu secures second wage increase this year Engineering News reports that about 70,000 clothing workers, most of whom are members of the Cosatu-affiliated Southern African Clothing & Textile Workers’ Union (Sactwu), will receive a 4.2% average wage increase as from 1 September. This will be the second wage increase for South African clothing workers this year. The previous wage increase of about 3.7% came into force on 1 March. These wage increases are the result of a variation to a collective agreement which was concluded late last year, between Sactwu and the Apparel & Textile Association of SA, the SA Apparel Association and the Transvaal Clothing Manufacturers Association. The agreement was concluded under the auspices of the National Bargaining Council for the Clothing Manufacturing Industry. “We hope that this additional wage increase, which comes into effect tomorrow (Wednesday), will bring welcome relief for clothing workers, who are predominantly women,” commented Sactwu general secretary André Kriel. Read the original of the short report in the above regard at Engineering News
Fear of job losses grips coal mining towns as transition to clean energy gains traction The Citizen writes that fear of job losses linked to the transition from coal to low-carbon energy sources is not new, but with unemployment having reached a new record, there is a new urgency to discussions over how to achieve a just transition. In Mpumalanga, which accounts for 83% of SA’s coal production – and which is home to 12 of power utility Eskom's power stations – coal is a key economic driver. Here, locals are particularly wary of the winds of change, fearing they will be stripped of their livelihoods – and left with few or no prospects in a country where unemployment is sitting at over 36%. SA is the world's 12th-biggest emitter of gases that contribute to global warming. But the coal sector employs some 92,000 people, making job losses a key consideration. Government has been at pains to assure mine workers that steps will be taken to minimise the economic impact of a just transition. But labour unions remain unconvinced. Sipho Dlamini from Ceppwawu in the Mpumalanga region said on Tuesday that in the union's opinion, there had been inadequate research on how the economy and employment would be affected by the transition, including communities from mining towns. Speaking at a public dialogue to unpack the key concerns of communities in Emalahleni and the Steve Tshwete Local Municipality in Middelburg, Dlamini said the union did not believe pollution was a good enough reason to shut down mines. Instead, Dlamini favours interventions designed to minimise carbon emissions, arguing that mines and power stations are the lifeblood of the Mpumalanga economy. Meantime, Middelburg is still reeling from the economic impact of the controversial closure of the Gupta-linked Optimum coal mine in 2018. Read the full original of the informative report in the above regard by Sibongile Khumalo at Fin24 (paywall access only) Other labour / community posting(s) relating to mining
Cosatu calls on government to take steps to manage industrial cannabis production BL Premium reports that Cosatu indicated on Tuesday during parliament’s public hearings on the Cannabis for Private Purposes Bill that decriminalising the cannabis sector would boost SA’s economy and would be a step in removing the industry from the control of criminal syndicates. The labour federation’s Tony Ehrenreich said: “The cannabis industry itself has many potential opportunities for the economy. These include its positive contributions for medicinal, clothing, and industrial uses.” He noted that cannabis was an emerging industry internationally, and if SA did not move to manage it, it would be displaced by cheap imports. He urged the government to quickly ensure that the large-scale commercial production of cannabis was permitted. The size of SA’s commercial cannabis industry is potentially about R30bn and could create as many as 25,000 jobs, according to the government. The possession and cultivation of cannabis for private purposes in a private place was legalised by the Constitutional Court in September 2018 on the grounds that its prohibition constituted an impermissible infringement of the right to privacy. The ruling was suspended for two years to give parliament time to pass a law giving effect to the judgment. However, legislation won't be available by the 17 September deadline, meaning that the court judgment will operate until the law is promulgated. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (paywall access only) Doubling sugar tax would be disastrous for embattled sector and mean even more job losses BL Premium reports that the embattled SA sugar industry has criticised calls for the government to increase the sugar tax, saying doing so would prove disastrous for a sector that is already bleeding jobs. Academics from institutions such as the University of Cape Town, Wits University and Oxford University opined in a newspaper advertisement this week that the levy should be doubled, noting that obesity-related diseases were among the top 10 causes of death in the country. Andrew Russell of the SA Canegrowers Association said on Tuesday that the calls showed “zero regard” for the impact the proposed tax hike would have on the 1-million people who relied on the sugar industry for their income. He pointed out that a report commissioned by the National Economic Development and Labour Council (Nedlac) showed that the sugar levy had had a significant effect on job levels. According to the report, in the first year of the sugar tax coming into force, “there were 16,621 job losses across the industry and 9,000 job losses in the cane-growing sector alone”. Russell added that most of these job losses had been in communities living in rural areas. The sugar industry directly employs about 85,000 workers, while supporting 350,000 jobs across the value chain. The sugar tax also resulted in a R653m decline in investment into the economy, said Russell. The National Treasury indicated that it did not comment on tax proposals before the annual budget in February. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only)
Petrol price to increase by 4c from 1 September, with diesel price to decrease by up to 15.22c Engineering News reports that Mineral Resources and Energy Minister Gwede Mantashe has announced adjustments to fuel prices with effect from 1 September, with petrol prices to increase and diesel prices to decrease. The price for 93 unleaded petrol (ULP) and lead replacement petrol (LRP) will increase by 4c/ℓ, while the price of 95 ULP and LRP will also increase by 4c/ℓ. Diesel (0.05% sulphur) will decrease by 15.22c/ℓ and diesel (0.005% sulphur) by 14.22c/ℓ. Illuminating paraffin (wholesale) will decrease by 15c/ℓ. SA’s fuel prices are adjusted on a monthly basis, informed by international and local factors. Factors influencing September’s price adjustments include the implementation of the slate levy. An increase of 8.78c/ℓ will be implemented into the price structures of petrol and diesel in line with the Self-Adjusting Slate Mechanism rules, effective from 1 September. Also, Mantashe approved a 5.7c/ℓ increase in the price structures of petrol to accommodate the wage increases for forecourt employees in line with a Motor Industry Bargaining Council agreement. Read the original of the short report in the above regard at Engineering News. Lees ook, Pyn by pomp duur voort, by Maroela Media
Staff at SAA subsidiary Air Chefs to be paid after 16 months, but for many it’s too late Sunday Times Daily reports that many employees of SA Airways (SAA) subsidiary Air Chefs — which provides in-flight catering services to airlines — have gone without normal salaries for more than 16 months. This has meant blacklisting, no money for food and having to give up homes after falling behind on rent and bond payments. In a letter sent to staff by management on 18 August, the company said it had been engaging with labour on back pay for employees. According to National Union of Metalworkers of SA (Numsa) general secretary Irvin Jim, they met together with other unions with the board and management at Air Chefs on Monday and came to an agreement. It was agreed that the company would pay 75% of the outstanding salaries of 16 months. Jim indicated: “Payment will be made within 48 hours or by Thursday this week. The balance of 25% will be paid within six months. Should the funds be made available soon, they will pay any time once funding is in Air Chefs’ account. Numsa thanks our officials for their tireless work in negotiating with the employer. Workers at Air Chefs have suffered a lot. This was their money and there was no justification for not paying.” But for some workers, the payment is a “little too late”. Patrick Nyathi, who has worked for the company for the past 19 years, lamented that he had since been crippled by debt. Nyathi is more than R34,000 behind on his rent and R30,000 behind on school fees for his two children. He said he also struggled to put food on the table and his life cover and other policies lapsed due to nonpayment. Read the full original of the report in the above regard by Iavan Pijoos at Sunday Times Daily Other internet posting(s) in this news category
Khusela Diko axed as Ramaphosa's spokesperson for failure to disclose financial interests, but keeps public service job TimesLIVE reports that Khusela Diko has been axed as President Cyril Ramaphosa's spokesperson, but will retain a position in the public service. Minister in the Presidency Mondli Gungubele announced on Tuesday that a disciplinary process against Diko had been completed for her failure to disclose her interests in certain companies, as required by public service regulations on the disclosure of financial interests. Following the process, Diko had been served with a written warning for this offence. Gungubele said in a statement: “The action taken by the presidency management was in compliance with a recommendation by the Special Investigating Unit (SIU) that Ms Diko be disciplined for her failure to disclose certain interests. This recommendation arose from an SIU investigation into the government’s procurement of Covid-19 personal protective equipment.” Diko, who is on maternity leave, will return to a different position in the public service when she returns to work. Tyrone Seale will continue as Ramaphosa's acting spokesperson. Read the original of the short report in the above regard at TimnesLIVE. Read too, Khusela Diko won't return as Ramaphosa's spokesperson, presidency confirms, at News24. And also, Khusela Diko fired, but not really, at The Citizen Suspended Dirco DG found guilty of misconduct, but points finger at ex-minister over botched New York land deal News24 reports that the suspended director-general of the Department of International Relations and Cooperation (Dirco), Kgabo Mahoai, has been found guilty on three counts of misconduct. The charges stemmed from a R118 million New York deal to buy land, which never existed. Judge Cynthia Pretorius handed down judgment in his disciplinary case on 23 August. She found Mahoai guilty of gross negligence, gross dereliction of duty and breach of legal obligation, as well as irregular, wasteful and fruitless expenditure. But, Mahoai described the multimillion-rand botched deal as an orchestrated scheme and claimed that he allowed payments so that former Minister Maite Nkoana-Mashabane could "prevail". He told the disciplinary committee: “Remember, there was collusion here. I allowed payment, so minister could prevail. After all, she always reminded me, I am the acting DG, if there is litigation I [Minister] would be the first respondent. I allowed payment so that she prevails.” In March 2016, Dirco issued a tender for the appointment of "a development partner, for the design, construction, operation, maintenance and finance of the suitable and sustainable office" and residential accommodation for the SA Diplomatic Missions in Manhattan, New York City. The tender closed on 16 April 2016, and on 27 May that year it was awarded to the Simeka Group / Regiments Capital JV. The joint venture had never been tendered for this project. Read the full original of the report in the above regard by Jason Felix at News24
SIU, Transnet welcome judgment that former Transnet executive must pay back R26.4m Engineering News reports that the Special Investigating Unit (SIU) and Transnet have welcomed a judgment handed down by Judge Lebogang Modiba in terms of which former Transnet employee Herbert Msagala must pay back R26.4-million to Transnet. The special tribunal found on 31 August that Msagala illegally received payments between 2015 and 2016 from a Transnet service provider, IGS Consulting Engineers, while employed full time by Transnet. The SIU and Transnet instituted civil matters in the special tribunal in July 2020 to order to recover the money that Msagala had received from a tender with IGS Consulting. The state-owned logistics company indicated in a statement that the judgment was a key step in ensuring accountability and consequence management for executives who might have been involved in criminal activity while employed at Transnet. Transnet further said it would continue to work with the SIU and other law enforcement agencies to ensure justice was served on all those found guilty of wrongdoing. SIU head Advocate Andy Mothibi said that the ruling was “a continuation of implementation of the SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions, including State-owned entities like Transnet". Read the full original of the report in the above regard at Engineering News
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