In our Friday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Cosatu throws its support behind R131 billion deal to move away from coal Fin24 reports that trade union federation Cosatu has thrown its support behind a deal that will see SA receive $8.5 billion (R131 billion) in cheap loans and grants to fund a move away from coal. The partnership between SA and a group of wealthy nations was announced this week at a United Nations summit on global warming in Glasgow. A series of grants, cheap loans, guarantees and private investments will be provided or facilitated by France, Germany, the UK, the USA and the European Union over three to five years to "accelerate [the] decarbonisation of South Africa's electricity system". Central to the agreement is the idea of a "just transition" that protects vulnerable workers in the coal industry. Cosatu spokesperson Sizwe Pamla noted on Thursday that the funding agreement would help support workers and communities whose livelihoods were at risk from the decommissioning of SA's fleet of coal-fired power stations. He commented as follows: "This hopefully will be used to benefit coal mining and energy workers, including communities in Mpumalanga whose towns and economies revolve around these aging power stations and mines. We simply cannot afford to lose a single job when unemployment has pushed past 44%, nor can we allow communities to become lifeless ghost towns." Speaking earlier this week, Eskom CEO André de Ruyter said the financing deal would give Eskom the opportunity to "pivot to a new future". Cosatu said that as SA reduced its reliance on coal, Eskom should enter the renewable energy space as an "owner of generation capacity". While the power utility has built some wind and solar power plants, most of SA’s renewable energy developments have come from independent power producers, who entered into 20-year agreements with Eskom. Read the full original of the report in the above regard by Jan Cronje at Fin24 Other internet posting(s) in this news category
Discovery Health study shows vaccinated adults have a 94% lower risk of death from Covid-19 BusinessLive reports that according to a real-world study by SA medical scheme administrator Discovery Health, the Pfizer/BioNTech vaccine reduced the risk of being hospitalised or dying from Covid-19 in SA by more than 90%. It found that people who had received both shots of the two-dose jab had a 92% lower risk of hospitalisation and 94% lower risk of death from Covid-19 than those who had not been vaccinated, up to three months after immunisation. Even a single shot offered significant protection, reducing the risk of hospitalisation by 73% and the risk of death by 79% after 14 days. The local findings are consistent with a US study published in The Lancet in October, which found the effectiveness of two doses of the Pfizer vaccine against hospitalisation remained high even at six months, at 93%. The findings emphasise the importance for SA of rapidly scaling up coverage. SA had by 3 November administered 22.8-million vaccine doses and fully immunised 31.7% of the adult population with either the two-dose Pfizer vaccine or the single-shot Johnson & Johnson jab. The government had hoped to vaccinate 70% of adults by the end of the year, but Discovery Health’s projections estimate it will reach only 52%. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive Other internet posting(s) in this news category
Analysts reckon Anglo American’s new South African CEO will benefit from being an insider Fin24 reports that 54-year-old Duncan Wanblad is set to take over as the new CEO of Anglo American in April, making him the first South African executive to lead the diversified global mining firm since Tony Trahar, who stepped down in 2007. Wanblad, who currently heads Anglo's strategy and development, will ascend to the helm of one of the world’s most powerful mining companies with the wind at his back. Wanblad has held various senior executive positions in Anglo since joining the company in 1990, including as CEO of Anglo’s base metals and minerals division, as well as CEO of its copper operations. Both the incumbent CEO, Mark Cutifani, and his predecessor, Cynthia Carroll, were recruited from outside the firm. Patrick Mathidi of Aluwani Capital Partners said choosing a South African to head the London-headquartered company, which still holds an array of mining interests in SA, sent "a powerful signal". Mathidi said there had been ongoing concerns about big mining firms withdrawing from SA, but he hoped with Wanblad's appointment - given that he is a "homegrown" guy – that the fears would be allayed. Anglo American Platinum (Anglo holds almost 80% of the platinum group) also last year appointed a South African CEO, Natascha Viljoen. Analyst Simon Brown expects a seamless transition from Wanblad, given that he is an insider. Wanblad will be paid a basic salary of £1.25 million (R26 million) per annum, with additional benefits that include a maximum annual bonus of 210% of his basic salary (R54.6 million) and long-term incentives of up to 300% of basic salary (R78 million), vesting after three years. The bonus and long-term incentives are subject to achieving performance targets. Read the full original of the report in the above regard by Sibongile Khumalo at Fin24 (subscriber access only) Northern Cape community diamond mining project helps curb illegal operations Mining Weekly reports that in the midst of the Richtersveld desert wilderness, miner Lower Orange River Diamonds (LOR) has found a solution to illegal mining, namely a Community Artisanal Mining (CAM) project that the company is implementing. LOR CEO Chris Kimber says the 41,343 ha of land in the Richtersveld, of which LOR is the mining right holder, is “arguably the world’s largest alluvial diamond mine, mining over three-million tonnes of gravel per month and employing over 2,300 people”. He reports that the CAM project has resulted in more than 440 income-generating job opportunities for the destitute and impoverished members of the local communities. After illegal mining had reached a crisis point in 2018 at various operations throughout Namaqualand, LOR established the CAM project with the help of the Department of Mineral Resources and Energy (DMRE) and the SA Diamond Producers Organisation. The project’s inception also followed numerous meetings and consultations with the surrounding four villages. The CAM teams have been allocated mining areas within previously mined areas, as well as within areas that are contractually allocated to LOR JV partners. LOR Diamonds legitimised the CAM bedrock-sweeping operations, with assistance from the DMRE, by concluding mining contracts with every CAM team. With the community artisanal mineworkers currently active, the bedrock-sweeping operations have enabled LOR to pay market- related prices to the artisanal mineworkers, while removing illegal diamond buyers from the equation. The CAM project has also allowed for a sense of “community ownership”, with the community now considered JV partners, and falling within the protection, and under the regulatory environment, of LOR, including the identification of people who are not genuine local residents. Read the full original of the detailed report in the above regard at Mining Weekly Other labour / community posting(s) relating to mining
Trade union membership numbers dwindle due to pandemic The Citizen reports that with the labour movement having been hard hit by the Covid pandemic, which has led to deaths and job losses, trade unions have reported a decline in membership numbers. National Education Health and Allied Workers’ Union (Nehawu) general secretary Zola Saphetha, speaking on the sidelines of the union’s four-day 12th national congress in Ekurhuleni’s Birchwood Hotel, said the union’s membership currently stood at 279,465, representing a substantial reduction. Nehawu, SA’s biggest public sector union and Cosatu’s largest affiliate, especially lost members during the hard lockdown period. Saphetha commented: “Certainly, Covid has had an effect on membership. We have lost members who were frontline workers, like nurses. We have to go back to our members, to be where members are – the workplace, the aim being to reach the threshold of 300,000. “We have to improve on membership, because it is clear that government is reneging in terms of delivering on the promised salary increment to public servants – not taking workers seriously. Workers only have the union as their representative, so we have to be with the workers at all times.” Delegates from the country’s nine provinces are attending the congress. Ending on Saturday, the results of the election of Nehawu national office-bearers will be announced and the union is expected to adopt a set of resolutions (details in news report). Read the full original of the report in the above regard by Brian Sokutu at The Citizen
SAA board signs Mango’s death sentence, with 709 jobs likely to be lost The Citizen reports that state-owned budget airline Mango will not resume operations in December this year as outlined in its business rescue plan, if shareholder SA Airways (SAA) and the Department of Public Enterprises (DPE) have their way. In an exchange of correspondence between SAA interim chairperson John Lamola and business rescue practitioner Sipho Sono, Mango is explicitly instructed not to pursue the intent of the plan, published at the end of October. This could mean the end of Mango and all 709 jobs soon. The SAA chair maintained that “SAA as the sole shareholder of Mango was not in a position to provide nor to motivate to SAA’s shareholder for any capital injection required to return Mango to commercial operations.” Lamola added that there was no funding available for working capital to allow Mango to resume operations. Earlier this year, R 819 million was allocated to the ailing airline through a Special Appropriation to assist in its survival. Mango will be meeting with creditors on Friday, 5 November and Sono noted that the correspondence advising SAA’s position would be made available to all stakeholders. Read the full original of the report in the above regard by Hein Kaiser at The Citizen. See too, It was a 'strategic asset' - so why is SAA cutting Mango loose? at Fin24 (subscriber access only) Other internet posting(s) in this news category
After a legal battle, Umgeni Water’s board re-established, but still no permanent CEO Fin24 reports that Umgeni Water, which supplies water to some two million households in KwaZulu-Natal (KZN), finally has a board again. In August last year, former Minister of Water and Sanitation Lindiwe Sisulu disbanded the state entity's board, claiming that her predecessor, Gugile Nkwinti, did not "obtain the approval of Cabinet" for the appointment of members in 2019. But board members took the matter to court, and sought an interdict to prevent a newly-appointed board from assuming its position last month. The KZN High Court found in the previous board's favour in that "there had been no consultation with the board members but merely summarily termination of their appointments". The court ruled that the board members should be reinstated. Minister of Water and Sanitation Senzo Mchunu announced on Thursday that the disbanded board would be re-established, in line with a Cabinet resolution on Wednesday. But while Umgeni has a board again, it still doesn’t have a permanent CEO. Last month, acting CEO Nomalungelo Mkhize resigned. In 2020, another acting CEO, Thamsanqa Hlongwa, also quit. Sandile Bonga Dube, previously the executive of operations, was appointed as acting CEO last month until a permanent appointment is made. Read the full original of the report in the above regard by Khulekani Magubane at Fin24
Truworths gets another thumbs down on executive pay vote BL Premium reports that the pay of top executives at Truworths failed to get shareholder approval at its recent annual general meeting (AGM). This highlighted a growing trend of investors expressing unhappiness with executive pay levels in a system that has no consequences for the committees that decide on bonuses. A previous remuneration vote at Truworths failed in 2019, but pay votes were passed in 2020. Shareholders at AGMs of listed companies must vote to express approval or dissatisfaction with the companies’ remuneration of their top staff, but these votes are non-binding. If the votes do not get the required 75%, listed companies are obliged to meet or discuss issues with unhappy shareholders. Activists and investors say that as discontent by shareholders on pay levels mounts, there should be consequences for the directors who decide on remuneration. The new Companies Amendment Bill proposes that the remuneration committee, made up of board members, must be made to stand for re-election if votes on pay fail. Truworths is not unique. Competitor TFG, which owns Fabiani, Foschini and Markham, has had at least one of two pay votes fail for three consecutive years. Mr Price, Capitec, Nedbank and FirstRand all had remuneration votes fail at their 2021 AGMs. Read the full original of the report in the above regard by Katharine Child at BusinessLive (subscriber access only)
Deputy finance minister David Masondo to chair PIC board despite concerns raised BL Premium reports that the Cabinet announced on Thursday that deputy finance minister David Masondo would chair the new board of the Public Investment Corporation (PIC). But, the move is likely to spark concerns of political interference at SA’s biggest asset manager. The PIC, which manages about R2-trillion, mostly for government employees and pensioners, has been struggling to restore its reputation following years of questionable investment decisions amid allegations of impropriety and that investments were influenced by political connections and considerations. The term of the previous interim board concluded at the end of October. While in most instances the PIC has in the past been chaired by the deputy finance minister, former finance minister Tito Mboweni emphasised the need for an independent chair to steady the ship. But the Cabinet, in line with the recently amended law governing the PIC, has now reversed Mboweni’s approach. The rest of the members of the new board are: Ntombifuthi Mtoba; Tryphosa Ramano; Bonke Dumisa; Esther Watson; Beverly Bouwer; Walter Hlaise; Brian Mavuka; Makano Mosidi; Frans Baleni, a former general secretary of the National Union of Mineworkers; Mugwena Maluleke, general secretary of the SA Democratic Teachers’ Union; Lufuno Mulaudzi, a leader of the Public Servants Association; and PIC CEO Abel Sithole. Cosatu, which has long called for stronger union representation on the PIC board to ensure that investment decisions also consider workers’ interests, said the appointments would stabilise and strengthen the firm. The labour federation said it was not worried about the appointment of Masondo as chair, as long as systems to enforce accountability and curb corruption were in place. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (subscriber access only). See too, PIC welcomes appointment of new board, at Engineering News Other internet posting(s) in this news category
Justice Minister says government officials must go for gender and LGBTIQ+ sensitivity training News24 reports that Minister of Justice and Correctional Services Ronald Lamola has indicated that government officials must undergo gender and LGBTIQ+ sensitivity training. Addressing a policy dialogue on Intersex and Transgender Rights in SA on Thursday, Lamola said government officials must be trained to become "familiar with what LGBTIQ+ persons require and how best to serve them". The dialogue is a partnership with the European Union and Civil Society organisations, in which SA will be reviewing policies on the protection of transgender and intersex persons. Lamola has already instructed the gender unit in the Department of Justice and Constitutional Development as well as the Department of Correctional Services that this must be implemented "with dedication and speed". "This must be a measurable performance target in any department's annual performance plan," Lamola indicated. He added that systemic inequalities and unfair discrimination remained deeply embedded in society. Lamola referenced a 2019 Equality Court case, in which inmate and transgender woman Jade September, won the battle for her right to express her gender identity while serving a sentence in a male prison. Read the full original of the report in the above regard by Nicole McCain at News24
Former Hawks captain jailed for pocketing ‘trap money’ IOL reports that a former member of the Directorate for Priority Crime Investigation (Hawks) has been sent to prison following his conviction on fraud charges. Rodney Two-boy Mpapela, 61, a former Hawks captain, was sentenced to six years imprisonment by the Mthatha Specialised Commercial Crimes Court. Two years of Mpapela’s sentence was suspended for five years. Eastern Cape Hawks spokesperson Captain Yolisa Mgolodela reported that Mpapela pocketed R4,000 in ‘trap money’. In February 2007, an application for trap money, to the value of R4,000, was made by the members of Mthatha Serious Commercial Crimes Investigation. The operation was conducted and the entire trap money was recovered from the target. On 10 March 2016, the case pertaining to the money in question was withdrawn by the state. On 15 June 2018, the unit commander handed over the trap money to Mpapela to return it to the finance office. But, the money never reached its intended destination. Mpapela nevertheless was adamant the money was not in his possession. Information in relation to his denied misconduct was received in 2020 by the Serious Corruption Investigation, for probing, which led to his subsequent arrest on 28 June 2021 and subsequent conviction. Read the full original of the report in the above regard by Robin-Lee Francke at IOL. Read too, Former Hawks officer imprisoned for pocketing R4,000 in 'trap money', at News24 Cape Town anti-gang unit detective arrested for allegedly demanding money to release murder suspect News24 reports that an Anti-Gang Unit detective in Cape Town is expected to appear in court after he allegedly requested money for the release of a murder suspect. The detective, 46, was arrested on Thursday after he allegedly requested money to arrange for a suspect in a murder case, which he was investigating, to be released on bail. Police spokesperson Captain FC van Wyk said when they received the information, an undercover operation was conducted and the money was handed to him. "He was arrested at Wynberg court after the money was found in his possession," Van Wyk indicated. The detective will appear in the Wynberg Magistrate's Court on Friday on a charge of corruption. Read the full original of the report in the above regard by Cebelihle Mthethwa at News24
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