In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 17 September 2021.
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Pepkor CEO says vaccines key to a growing SA economy and a boost in jobs Bloomberg reports that SA’s largest clothing retailer sees a successful Covid-19 vaccination rollout as key to reopening the economy and adding new stores, thereby helping to address the world’s highest unemployment rate. “If we get people vaccinated, the economy can normalise quickly. If the economy normalises, we can create jobs,” said Pepkor CEO Leon Lourens. The government temporarily imposed strict restrictions to curb the spread of the coronavirus from March 2020, but subsequent waves of infections have forced some measures to remain in place. Meanwhile, SA is cut off from many parts of the world due to travel curbs, hammering the tourist industry. Lourens warned: “The current unemployment levels are just not sustainable. We cannot continue like this.” Pepkor, along with many other companies, is also battling to recover from violent unrest that rocked the country in July. With about 550 of its shops damaged, the retailer hopes to still stick to its annual store opening program of about 300 outlets a year alongside an ambitious refurbishment plan. “If we can open 300 stores a year, we’re talking about 3,000 jobs a year that we create. But that we can only do in a growing economy,” Lourens pointed out. He went on to comment: “It’s just not possible for our economy to be in a good condition while our whole tourism sector is gone, while all big events are gone. People often forget, and this is not even in the employment numbers, but for every theater production, every wedding, every sports game, the informal sector works at those events.” Read the full original of the report in the above regard by Janice Kew at Moneyweb Solidarity Youth vows to act against universities over mandatory Covid jabs for students News24 reports that trade union Solidarity's youth wing says it will not hesitate to act against universities that want to make Covid-19 vaccinations mandatory for students. This was indicated after the University of Cape Town (UCT) confirmed it was looking into implementing a mandatory vaccination policy. Solidarity Youth’s Paul Maritz said such action came down to discrimination. "A public university's aim is to make tertiary education accessible to all in the country. By introducing vaccine passes at these institutions, universities deprive certain students and prospective students of the right to receive education and it grants more rights to others based on those students' medical conditions. This gross violation of rights cannot be permitted under any circumstances," said Maritz. He added that Solidarity Youth supported incentives that would motivate students to be vaccinated, but regulations that restricted people's rights could in no way be supported: "Solidarity Youth will not hesitate to become involved in this matter and to protect the rights of its members in this regard," Maritz warned. Meanwhile, UCT’s Senate debated a motion on mandatory vaccination at a meeting held on Friday. A ballot of the Senate members present at the meeting will follow early this week. Any final decision on this matter of policy will have to be a decision of the university Council. Read the full original of the report in the above regard by Marvin Charles at News24. Read Solidarity Youth’s press statement on this matter at Solidarity News Other internet posting(s) in this news category
Municipal unions had ‘no choice but to accept’ 3.5% wage deal due to pandemic BL Premium writes that the two recognised unions in the local government sector wanted a bigger wage increase in recent negotiations but, in a deal largely viewed as favourable to the employers, were forced to compromise due to the negative economic climate and the Covid-19 pandemic. In the wage hike agreement, unions unexpectedly accepted many proposals that they had previously opposed, such as a multiyear agreement instead of the one-year deal they had sought, a freeze on some benefits and a window for parties to opt out of the agreement. The SA Municipal Workers’ Union (Samwu), representing about 160,000 of the country’s nearly 300,000 municipal workers, said though the deal was not what its members wanted, it was much better than the one a facilitator had proposed. Samwu’s Papikie Mohale commented on Friday that the unions had rejected the facilitator’s proposal because “it said all benefits must be frozen during the duration of the agreement”. Mohale went on to point out: “With this agreement that we have signed, it’s only in the first year of the agreement that some benefits will be frozen and everything will be back to normal during the outer years of the deal.” Keith Swanepoel of the Independent Municipal and Allied Trade Union noted that the wage hike agreement was not the “best deal for local government and our members”, but the union had had to accept it because the government was broke. “We are acutely aware of the dire state of municipal finances, and what has made matters worse is the unfortunate situation that we are in because of the pandemic,” he noted. Chrissy Dube of Good Governance Africa commented: “I think the effect of the pandemic on the economy played a very vital role in giving them [unions] that lower percentage, compared to what they were demanding.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only) Economists say municipal wage deal shows government is getting serious about spending discipline Fin24 reports that economists believe that the recent local government wage deal between unions and the SA Local Government Association (Salga) at the SA Local Bargaining Council was an encouraging indication that government could come to grips with spending in the coming years. Local government employees will receive a 3.5% increase with effect from 1 July 2021, along with once-off, non-pensionable cash allowances. Those earning R12,500 or less at 1 July will receive a once-off amount of R4,000 and those earning more will get R3,000. Remarking on the successful conclusion of the wage talks, Salga said the deal represented a compromise for all the parties while on the other hand, it gave SA’s 257 municipalities that were in financial distress a lifeline and breathing space until 2023. Old Mutual investment strategist Izak Odendaal said unions could have secured higher wages, but it appeared that the dire financial state of municipalities was the ultimate determining factor. "It's interesting because the local government elections are around the corner. You would think the unions would have had a nice bargaining chip. The reality is that many municipalities are in poor financial shape, especially with lockdown,” said Odendaal. Alluding to commitments made by President Cyril Ramaphosa and former finance minister Tito Mboweni to get spending in check, Efficient Group economist Francois Stofberg said the latest local government wage bill was "a sign that difficult decisions are being made at an increasing rate" He went on to point out: "For potential economic performance, it means a lot. This is another definite step in the right direction. The way in which government finances have fared in the past decade have not been conducive to economic growth." Read the full original of the report in the above regard by Khulekani Magubane at Fin24 (subscriber access only)
Harmony Gold says critics of wage deal must see pact in context of three year output plan Miningmx writes that the negative aspect of Harmony Gold’s three-year wage deal signed with unions last Thursday is that it entrenches Harmony’s reputation as a high cost gold producer. At a total increase of between 7% and 7.8% over the three years, the agreement is more expensive than the 6.5% average increase negotiated by Gold Fields and Pan African Resources’ 5.4% three-year wage settlement concluded earlier. “Although the agreement is in line with management expectations, above inflationary increases in 50% to 60% of the cash cost base contributes to its 99th percentile ranking on the global AISC (all-in sustaining cost) curve in FY22,” said RMB Morgan Stanley analysts in a report. But, Harmony spokesman Jared Coetzer said over a three year view the company was significantly improving its cost profile. He said the production replacement programme would maintain production and code in cheaper ounces as the group phased out the ageing mines. “Our guidance has gone up (in terms of AISC) but we are confident the catalysts will come through. There will be a reversal in the cost trend,” he stated. Moreover, none of the pyrotechnics of previous wage negotiations were exhibited and there wasn’t a single threat of strike action. Another positive is that with the wage agreement behind it, Harmony can knuckle down to a 2022 financial of elevated capital expenditure. Read the full original of the report in the above regard by David McKay at Miningmx Other general posting(s) relating to mining
Judge in Marikana civil lawsuit against Ramaphosa and others recuses himself because of shares in Sibanye-Stillwater Mail & Guardian reports that Judge Colin Lamont has recused himself from hearing a civil lawsuit brought by the Marikana victims against President Cyril Ramaphosa, the state and mining company Lonmin Plc (now owned by Sibanye-Stillwater). Lawyers representing the plaintiffs say their clients are deciding on a course of action after the judge decided to recuse himself from the R1-billion civil suit. A complaint over the judge’s conduct is on the cards for what attorney Andries Nkome said was the unfair treatment of his clients. He claimed Lamont had earlier been aware of a recusal application relating to his ownership of shares in Sibanye-Stillwater, which acquired Lonmin in 2019. “We relied on the deputy judge president for a date, time has been wasted now. The judge knew about this matter on 9 August already ... So the clients believe they are being treated unfairly,” Nkome said. Lamont recused himself On Tuesday from the class action case involving 329 wounded and arrested mineworkers from the Marikana massacre, after the application was lodged. He disclosed his shareholding two days before the matter came before him and sold the shares the day before. The shares were estimated to have been worth R200,000, according to the victims’ counsel, Dali Mpofu SC, during arguments in court. In the recusal application, it was argued that Lamont’s shareholding was central to the perceived bias by the plaintiffs and this therefore constituted grounds for an automatic recusal. The matter will now be heard by another judge. Read the full original of the report in the above regard by Tunicia Phillips on page 13 of Mail & Guardian of 17 September 2021
Denel pays over to Solidarity millions in salary arrears pursuant to court order Engineering News reports that trade union Solidarity announced on Friday that state-owned defence industrial group Denel had paid it R4-million to cover the salary arrears of union members employed by Denel Dynamics and Denel Land Systems. The union obtained a court order in March allowing it to seize some of Denel’s assets and Solidarity had arranged for the assets to be auctioned off on Friday. At that point, the company came up with the money, obviating the need for the auction. Solidarity’s chief executive Dr Dirk Hermann commented: “The payment of the salary money to Solidarity is a major victory for Solidarity and its members. Their salaries have been looted for more than a year while the state institution refused to fulfil its responsibilities. However, Solidarity refused to accept such laxity from the state and Denel and applied constant pressure in order to force Denel to comply with the court order that was made last year.” The R4-million payout only covers the salary arrears for the period May 2020 to July 2020, because that was the period specified in the court order, which was issued on 4 August, 2020. However, Solidarity has again taken Denel to court, regarding the salary arrears of members of the union who worked for the company from August 2020 until the present. This case will be heard in the Johannesburg Labour Court on 7 October. “It is a shame that we constantly have to go to court simply to force an organisation to pay its own employees’ salaries,” said Hermann. Read the full original of the report in the above regard at Engineering News. Read Solidarity’s press statement on this matter at Solidarity News Medical aid crisis for Post Office staff with R602m in contributions not having been paid over to scheme Sunday Times reports that about 15,000 SA Post Office (Sapo) employees and pensioners may have no medical aid from next month after the Medipos medical scheme told them it was cutting them off because it was owned R602m in member subscriptions by the postal services. In a letter sent to affected employees last week, the scheme’s principal officer, Thabisiwe Mlotshwa, said Sapo had not paid the contributions made by members over to the scheme for the past 15 months. “On the odd occasion that we do receive some form of contribution it will only be partial payment. To date, a total of approximately R602m is owed by Sapo to Medipos, thus a significant portion of your contributions remains unpaid,” the letter indicated. It went on to advise: “The board has regretfully had to come to a decision that should your arrear contribution not be received by September 30, your membership will be suspended with immediate effect from October 1. This means you will have no cover for medical expenses.” Sapo spokesperson Nobuhle Njapha acknowledged that the state-owned agency was in arrears, blaming it on “a massive drop in revenue” caused by the Covid pandemic and lockdown restrictions. She said Sapo was engaging with Medipos and the unions on the way forward. Njapha added that Sapo regarded the payment of the medical aid contributions as “vital”. David Mangena of the SA Postal Workers Union said they were hopeful that last-minute engagements would see some kind of resolution. Read the full original of the report in the above regard by Gill Gifford on page 8 of Sunday Times of 19 September 2021 Other internet posting(s) in this news category
Company operating private prison in Limpopo probed for claiming Ters funds for dismissed and retrenched employees City Press reports that the company that manages the Kutama Sinthumule Correctional Centre, a private prison in Limpopo, is under investigation for allegedly claiming more than R6 million in Covid-19 relief funds on behalf of dismissed and retrenched employees. The Special Investigating Unit (SIU) has begun its probe into the matter and suspicious Covid-19 Temporary Employer-Employee Relief Scheme (Ters) claims on behalf of two former employees have been uncovered. The R6,231.841 in claims suggests that there could be more employees whose names were illegally used in the scam. The facility is a privately managed prison in Louis Trichardt. It is managed by SA Custodial Management (SACM) on behalf of the department of correctional services. SIU spokesperson Kaizer Kganyago said the investigation was continuing, but could not say if the SIU expected to link more of the prison’s employees to the fraudulent claims. Meanwhile, the Unemployment Insurance Fund (UIF) has appointed forensic investigators as part of its Follow the Money Project to recover stolen funds. So far this year, the UIF has recovered R827.8 million and 17 people have been arrested. Their cases are currently before the courts. The project has been extended by a further 12 months. The UIF has paid more than R60 billion in relief funds to workers. Read the full original of the report in the above regard by Sizwe Sama Yende at City Press (subscriber access only) Eastern Cape health official convicted of fraud, money laundering has R248,634 deducted from his pension entitlement News24 reports that the Eastern Cape health department has recovered R248,634 from a former logistics official, Baxolile Ngoloyi, after he fraudulently stole that amount of money from the department in the period between 2017 and 2018. The funds were deducted from Ngoloyi's Government Employees Pension Fund entitlement. The National Prosecuting Authority (NPA) announced on Friday that its Asset Forfeiture Unit (AFU) had successfully facilitated the recovery of the money. This came three months after the Port Elizabeth Specialised Commercial Crimes Court granted the AFU a confiscation order to recover the money in terms of the Prevention of Organised Crime Act. The court found Ngoloyi guilty of corruption, fraud and money laundering in March 2021. He pleaded guilty to the crimes he had committed while he was a supervisor in the Bisho Hospital's stores department. Ngoloyi conspired with Sithembile Smith, the sole director of Eza Services and Suppliers, a construction company based in Cookhouse, to make use of Eza's bank account in order to facilitate fraudulent payments from the department. Ngoloyi and Smith misrepresented to the department that Eza had provided goods and services when in fact it had not done so. Smith pleaded guilty to money laundering in August 2020 and was given a five-year suspended sentence. He also turned state witness. Ngoloyi's sentence is scheduled to be handed down on 4 October Read the full original of the report in the above regard by Malibongwe Dayimani at News24 Bredasdorp company director arrested for alleged Covid-19 Ters fraud to service payroll News24 reports that a company director has been arrested after allegedly claiming Ters funds from the Department of Labour on behalf of his employees and using the money claimed to service his payroll. Andre Appelgryn was arrested by the Hawks’ Serious Corruption Investigation team based in Cape Town on Friday. According to the Hawks, Appelgryn claimed money from the Temporary Employer-Employee Relief Scheme (Ters) fund between May and June 2020. This was on behalf of 44 staff working for him prior to the Covid-19 pandemic. He allegedly used the claimed money to service his payroll. Hawks spokesperson Zinzi Hani said after it was realised that the Ters monies had been claimed unlawfully as the workers had worked through lockdown and had received their full salaries, there had been a joint investigation by the UIF and the police. On Thursday, the Hawks conducted a search and seizure operation at Appelgryn's candles company offices in Bredasdorp and confiscated documentation regarding Ters funds. He appeared in the Bredasdorp Magistrate's Court on charges of fraud. Read the original of the report in the above regard by Cebelihle Mthethwa at News24 Other internet posting(s) in this news category
Railway Safety Regulator emphasises the importance of upcoming rail safety conference Engineering News reports that SA’s Railway Safety Regulator (RSR) has announced that the 2021 Annual Rail Safety Conference will take place from 29 September to 1 October. Hosted under the theme “Embracing the new normal through innovative and sustainable rail safety solutions”, this year’s conference will be held virtually, at no cost to delegates. It will feature presentations from local and international rail experts from various disciplines. “There is no doubt that the Covid-19 pandemic has changed how we interact and the way that we do business. The rail industry, like all others, has been impacted by the pandemic. However, this does not change the fact that as a rail regulator, we remain responsible for ensuring that our rail industry is well regulated and that the safety of rail service is improved. In line with the conference’s theme, we must embrace this new normal and find innovative ways that will ensure we remain true to our mandate, through sustainable measures. This year’s conference is a watershed moment for the rail industry,” said RSR acting CEO Mmuso Selaledi. Innovation in a changing railway environment will also be in the spotlight, along with the journey towards a sustainable railway environment. Read the full original of the report in the above regard at Engineering News
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