In our Thursday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Research shows upbeat pay hikes in store for workers in 2022 BusinessLive reports that for those holding down a job in SA’s embattled labour market, 2022 may bring good news as local employers are pencilling in above-inflation wage increases for staff. Meantime, the number of companies planning to freeze salaries is set to decline. Research by advisory firm Willis Towers Watson shows that local employers intend to give staff an average annual pay rise of 5.5% in 2022, up from 2021’s 4.7%. The proportion of firms expecting to freeze pay is set to fall to 5% in 2022, from 12% this year. The survey covered 130 countries worldwide, including 320 SA-based firms. “Businesses are navigating a tentative recovery from the pandemic, and it is encouraging that many are planning to offer more generous pay rises,” Melanie Trollip of Willis Towers Watson SA said. In the midst of the jobs fallout, the survey found that competition for skilled workers remained intense — with firms giving top performers a pay rise that was two-and-a-half times greater than staff on average performance ratings in 2021. “Even though Covid-19 wreaked havoc on our economy, firms still had to compete to attract and retain the top performers, and higher pay rises were part of that strategy. Now that we may be entering a recovery phase, these high performers are especially important for driving business growth,” Trollip commented. On a sectoral basis, the medical technology, pharmaceutical, and consumer product sectors are planning increases of 7.1%, 6.1% and 6%, respectively. Employees in business consulting, energy and natural resources, and construction, property and engineering will not see such generous hikes, with average increases of 3.7%, 4.1% and 4.2% planned. Read the full original of the report in the above regard by Lynley Donnelly at BusinessLive
Food prices for some low-income families soar 10% in October BL Premium reports that consumer inflation is steadily creeping up again in SA, but it is being experienced most severely in some of SA’s poorest households. The latest household affordability index, compiled by the Pietermaritzburg Economic Justice and Dignity Group (PEJDG), showed that the average household food basket for low-income households from regions around SA, rose an annual 10.2% in October, with expectations that times will only get tougher. The average food basket reached R4,317,56 in October — a R400.83 rise year-on-year and well above the R3,643,92 monthly minimum wage. The index uses food prices tracked directly by women data collectors off the shelves of 44 supermarkets and 30 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok. Regions covered include the likes of Soweto, Alexandra, Thembisa, KwaMashu, Gugulethu, Langa and Delft. The 14.59% hike in electricity prices during June and July is now being reflected in higher food prices on supermarket shelves, the PEJDG said on Wednesday. But a host of other factors are expected to compound the problem. Higher electricity tariffs, worsened by the cost of sourcing back up supplies amid ongoing load-shedding, load reduction and blackouts, will increase the cost of production, transport and storage. Expected fuel price increases in November will run through the value chains, making agricultural production and transport more expensive. “Rising food prices, which are likely to continue into 2022, will put severe pressure on households whose incomes remain low through low baseline wages and low-level social grants, and while jobs remain elusive,” the group indicated. Read the full original of the report in the above regard by Lynley Donnelly at BusinessLive (subscriber access only). Read too, Petrol price set to fuel food price hike, fears of a tough end to the year for consumers, at The Mercury R20 a litre for petrol ‘a realistic scenario before the end of 2021’ The Citizen reports that motorists will have to dig deep in their pockets as fuel prices are expected to increase, pushing fuel inland (95 ULP) above R19/l (close to R19.30/l), and R17/l for diesel next month. The Automobile Association (AA) described the hike as follows: “Current data is predicting fuel price hikes of catastrophic proportions in November. The current picture is showing petrol will go up by 99 cents a litre, and diesel and illuminating paraffin increase by a R1.42 a litre. Taking this potential increase into account, the price of a litre of 95 ULP will have increased from R14.86/l in January to R19.30/l in November – a 30% increase over 11 months.” The AA added: “R20 a litre for petrol is now a realistic scenario before the end of 2021.” Agricultural economist Kulani Siweya said the increase could not have come at a worse time. “The agricultural sector has entered into the summer crops planting season and a great amount of fuel, diesel, will be burnt,” he pointed out. Siweya added it was concerning because input costs had increased incredibly, meaning that “fuel prices, unstable and unreliable electricity and the cost attached, pose a risk to the food inflation.” Read the full original of the report in the above regard by Asanda Matlhare at The Citizen
Covid-19 now leading cause of death among Discovery Life clients BusinessLive reports that according to Discovery Life, Covid-19 has been the leading cause of death among its clients this year up until August, overtaking heart disease and cancer. The company releases a summary of its insurance claims data each year and used the 2020 claims release to highlight Covid-19’s more recent effect on fatalities. Covid-19 has dramatically influenced Discovery Life’s death claims experience. “Over the previous nine years, heart and artery diseases caused an average of 27% of deaths each year, compared to 57% of all deaths being attributed to Covid-19 for 2021 up to August,” Discovery Life CEO Riaan van Reenen advised. Covid-19 related payouts that began in 2020 are expected to reach R6.2bn by the end of June 2022. The total life insurance claims for all causes paid out by Discovery Life in 2020 equalled R4.7bn. To date, 80% of the Life clients over the age of 60 have been vaccinated and 71% of all clients have had at least one shot of a vaccine. Read the original of the report in the above regard by Katharine Child at BusinessLive Other internet posting(s) in this news category
Tshwane vows not to bow to Samwu in implementing wage deal BL Premium reports that the DA-run Tshwane metro vowed on Wednesday it would not be blackmailed by the ANC-aligned SA Municipal Workers’ Union (Samwu) into implementing immediately the recently signed multi-term pay agreement, which it said had “significant implications” for the city. The party dismissed Samwu’s “unlawful strike action” in the municipality as “largely political” and an attempt to make the city ungovernable by creating instability a few days before municipal elections on 1 November. Members of Samwu downed tools last week and trashed the city in support of their demand that the municipality implement the pay rise agreed to by parties in the SA Local Government Bargaining Council in September. Jordan Griffiths, acting chief of staff in the mayor’s office, claimed the city did not have to implement the wage agreement immediately. “We are still evaluating it and have communicated as such to Samwu. The implications of these salary increases are significant, and so it’s a decision we would take during the adjustments budget process, which begins towards the end of December, and the adjustments budget being approved in February 2022. We wouldn’t make a decision like this without actually working through the budgetary process. You wouldn’t just implement it,” Griffiths advised. The wage-hike deal starts with a 3.5% basic increase and a one-off nonpensionable cash allowance for workers in the sector. Samwu’s Mpho Tladinyane said workers in the metro would continue demanding implementation of the agreement. Griffiths pointed out that the Samwu strike was unlawful and the metro had obtained a court interdict, which Samwu had not opposed. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only). See too, Union not worried by court order, on page 10 of The Citizen of 27 October 2021 Strike continues at Gqeberha automobile assembly plant as Numsa demands 100% wage increase GroundUp reports that the strike at First Automobile Works (FAW) in Gqeberha, which started on 15 October, continues. About 85% of the workforce who are members of the National Union of Metalworkers of SA (Numsa) are on strike. They are demanding a wage increase of R40 per hour, backdated to September 2020. Most workers currently earn R39 per hour. FAW assembles motor vehicles from new components imported from China. FAW Human Resources Manager Ronel Fourie said the company fell under the Motor Industry Bargaining Council (MIBCO) until October 2020, but Numsa successfully applied to the CCMA to have the company demarcated from MIBCO. She said the employees were paid the MIBCO rates applicable as at the date the company was demarcated from MIBCO. Fourie explained that the company’s final offer made at the end of September offered “wages well in excess of those earned by employees falling within MIBCO’s scope”, adding that “NUMSA unfortunately rejected this offer and instead elected to embark on strike action in pursuit of an increase in excess of 100%.” Numsa’s Mziyanda Twani said: “The reason we wanted to be removed from MIBCO was that FAW did not belong to the motor component manufacturing sector. It assembles trucks and MIBCO does not accommodate companies that assemble. We want the company to join other auto assemblers.” According to Twani, rates set by MIBCO were lower than those paid by companies in the Automobile Manufacturers Employers Organisation. He reported that Numsa was the only union at FAW with 160 members (over 85% of the workforce) and that the company employed between 170 to 190 workers. Read the full original of the report in the above regard by Joseph Chirume at GroundUp
Fikile Mbalula says government will address concerns of protesting truck drivers' TimesLIVE reports that transport minister Fikile Mbalula has promised the government will address concerns raised by truck drivers who blockaded national roads. The drivers were protesting over the employment of foreign truck drivers as well as issues relating to professional driving permits. “We have made a firm commitment to address these matters in a manner that ensures the sustainability of our interventions. Some of these interventions may require a longer runway as these may require legislative amendments,” said Mbalula at a media briefing on Wednesday. He said the government had met protesting truck drivers and small truck operators who had blockaded the N9 and the N10 highways outside Middelburg in the Eastern Cape. “From the engagements, the issue of the employment of foreign nationals featured strongly in their demands. We have equally taken note of the allegation that employers take advantage of the lack of clarity in our regulations insofar as this relates to foreign nationals making use of professional driving permits issued in their respective countries to drive in SA,” said Mbalula. He indicated that he was also aware of a similar blockade on the N3 near Montrose in the Free State on Tuesday. TimesLIVE goes on to list the commitments the government is putting place to address the concerns raised by the truck drivers: Read the full original of the report in the above regard by Nomahlubi Sonjica at TimesLIVE Rogue employers exploit vulnerable foreign truck drivers, says Nxesi The Citizen reports that while protests and blockading of several national routes by truck drivers has ended after agreements between stakeholders, Labour Minister Thulas Nxesi on Wednesday conceded that there were discrepancies within the trucking industry. Nxesi, alongside Transport Minister Fikile Mbalula and Home Affairs Minister Aaron Motsoaledi, addressed a briefing on Wednesday following protests in Mpumalanga, KwaZulu-Natal and Eastern Cape, as drivers complained about the employment of foreign nationals as truckers. “We have noted that there are employers within this sector who continue to employ undocumented foreign nationals and the existence of rogue employers who seek to exploit vulnerable foreign workers. We urge those employers to refrain from these practices as we view this as economic sabotage and their undermining of our labour migration laws,” said Nxesi. He advised that his department was hard at work enforcing compliance and carrying out regular inspections. Nxesi claimed that these inspections had resulted in arrests, fines and other penalties where noncompliance had been detected. Mbalula said the situation with the drivers had since been brought to calm. He went on to say: “We have invited their leaders to sit around the table in order for them to have a better appreciation of the measures we are putting in place in addressing their demands.” Read the full original of the report in the above regard by Siyanda Ndlovu at The Citizen. See too, Manganese truck driver forced off the toad by armed men, on page 13 of Sowetan of 27 October 2021 Other internet posting(s) in this news category
'I never touched her' says former AngloGold chair Sipho Pityana in refutation of fellow executive’s sexual harassment claim SowetanLIVE reports that on 18 February 2019, leading businessman Sipho Pityana, then chair of mining giant AngloGold Ashanti (AGA), went to dinner with a female colleague at a restaurant in Mandela Square in Sandton. The woman, a senior executive in the mining company, subsequently claimed that Pityana drove her back to her hotel in Rosebank, where he allegedly held her hand, told her he was in love with her and offered to come up to her room. In her internal complaint, she alleged that Pityana's behaviour, one of four such alleged encounters, was inappropriate and made her feel uncomfortable. Her allegations form part of a report that Pityana believes was used to block his nomination as Absa board chair. In a statement released on Monday, Pityana denied the allegations, saying they were baseless and false. Details of the sexual harassment allegations and Pityana's responses to them are contained in a legal opinion commissioned by Absa Bank, which concluded that the findings of the earlier report against the business mogul were flawed. The allegations were originally investigated by a senior counsel appointed by AGA in October 2019 and resulted in an adverse finding against Pityana. In December, Pityana left AGA. However, the Absa-commissioned legal opinion released in July found that the AGA investigation conducted against Pityana “did not take account of all the relevant evidence in that its author failed to obtain important corroborating evidence from independent sources”. Read the full original of the report in the above regard by Isaac Mahlangu at SowetanLIVE. Read too, Pityana says senior manager falsely accused him of harassment, but AngloGold sticks by its findings, at Fin24 (subscriber access only) Pityana claims AngloGold offered to settle harassment case if he resigned as director Fin24 reports that former Anglo Gold Ashanti (AGA) chairperson Sipho Pityana claims that the mining company offered to settle sexual harassment allegations against him, if he resigned as director. This has been denied by AGA. Pityana dropped a bombshell on Monday, claiming that Absa nominated him to become the bank’s board chairperson, but that the SA Reserve Bank’s Prudential Authority (PA), which oversees the banks, vetoed him. Pityana contends that this was due to "undue influence" by current AGA chair Maria Ramos, who informed the board of the harassment allegations. Pityana says after he stepped down as the chairperson of the AGA board on 4 December 2020, the company then proposed to him that he resign as a director too. Pityana had stayed on as a director of the board after resigning as its chairperson to wait for the final report following an investigation into sexual harassment against him. According to Pityana, the board put forward a proposal that “if I were to step down, they would have to talk to the complainant, and they don't envision that there will be any problems. They were so confident that she would play ball. I don't know why." He said this was the reason why he did not cross-examine the complainant before a final report was issued. The settlement was concluded on 7 December 2020, two days before the AGA investigator issued her final report. The report found that Pityana had sexually harassed the complainant. Pityana disputes these allegations. An Absa report into the AGA investigation concluded that concluded that it was selective and flawed. Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24 (subscriber access only) The ‘velvet gloves are off’ in the legal battle for ill-fated Lily mine, Barbrook mine Moneyweb reports that according to Judge President Francis Legodi of the Mpumalanga High Court, the “velvet gloves are off between the fighting parties” in the battle for control of the Vantage Goldfields’ Lily and Barbrook mines. It has been six years that the mines were placed under business rescue. Earlier this year, it seemed that the rescue of Vantage by Australia’s Macquarie Metals was a done deal. Now it doesn’t seem so cut and dried. Arqomanzi was this week declared to be a valid creditor. This makes it the largest creditor – something the business rescue practitioners (BRPs) refuted – and means it must be given a chance to vote on the proposed business rescue plan. The mines went into business rescue after a support pillar at Lily Mine in Mpumalanga collapsed and claimed the lives of three workers. The fate of the mines has been the subject of a hostile battle for control, pitting Macquarie Metals against Arqomanzi, whose financial backer is Hong Kong-registered Alpha Capital Group. This latest judgment throws open the legal battle for control of the mines. Arqomanzi proposes injecting R390 million into mine infrastructure, such as the sinking of a decline shaft at Lily to recover the bodies of the deceased workers and to reopen the mine. Meanwhile, the fate of Barbrook and Lily mines and the workers, who have been waiting six years to get their jobs back, will likely have to wait a few months more for the courts to light the way forward. Read the full original of the report in the above regard by Ciaran Ryan at Moneyweb Other general posting(s) relating to mining
SSA employee accused of R1.1m fraud to get IT expert to testify on his behalf News24 reports that the criminal case against a State Security Agency (SSA) employee accused of defrauding the intelligence service of more than R1 million has been postponed again. Thuso Leonard Oesi appeared in the Specialised Commercial Crimes Court in Pretoria on Wednesday, when the court heard that his defence team still had to finalise their instructions for trial. As part of the finalisation, Oesi is also in the process of securing an expert IT witness to testify on his behalf. The State asked that the postponement be marked as final as they were ready to proceed to trial. The case was postponed to 26 January next year. According to the charge sheet, Oesi is accused of defrauding the SSA of around R1.1 million between August 2019 and February 2020. Allegedly, Oesi, who is employed as an SAP system administrator at the SSA, created fictitious payment advance authorisations to himself for training courses he never attended. How he allegedly did this is detailed in the News24 report. He has been charged with seven counts of fraud, three of contravening the Electronic Communications and Transactions Act, nine of forgery, and nine of the uttering. Read the full original of the report in the above regard by Alex Mitchley at News24
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