In our Friday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Nedbank predicts SA growth at 2% for this year, with inflation and employment to remain challenges Engineering News reports that Nedbank’s research team has predicted that SA’s economy will grow by 2% this year, although the recovery will be uneven in respect of various industries. Nonetheless, load-shedding more severe than Stages 1 and 2 could reduce growth by 20 basis points and there remains downside risks in the form of Covid-19 and the uncertain nature of further variants and waves. The research team found that, compared with pre-pandemic levels, construction, trade and catering were 20% down and the worst affected industries. Only the finances, financial services and personal services industries are emerging slightly above pre-pandemic levels. Further downside risks to growth forecasts include global growth for 2022 being revised marginally downward by the World Bank and the International Monetary Fund (IMF). A key risk in terms of growth expectations for SA is the growth of its largest export market China, which consumes more than half of SA’s mineral exports and is a key strategic trading partner. Nedbank expects inflation to tick up over the medium term, and has forecast 4.4% for 2022, but this will be highly dependent on the oil price and administered prices as a whole. Nedbank expects 2023 inflation to be 5%. Meanwhile, labour has been hard hit during the pandemic and more than two-million jobs have been lost over the past two years, with the bulk being in the formal sector and within some secondary industries. Nedbank economic research analyst Reezwana Sumad commented: "From an employment perspective, without improvements in effecting structural reforms and increasing infrastructure spending to increase the potential growth, we believe employment will struggle and the unemployment rate is expected to remain elevated above 30% for several years." While there were a few government interventions to mitigate this challenge, including a public works programme that helps to upskill youth and provide temporary employment, the big focus should be on infrastructure spending, she advised. But, structural reforms to facilitate infrastructure development will take time and infrastructure projects will take at least three years to make a difference in employment and contribute positively to GDP. Read the full original of the report in the above regard at Engineering News Big petrol price hike to hit South Africa in February, economist warns BusinessTech reports that according to Investec chief economist Annabel Bishop, South African consumers face little reprieve in the coming months as both fuel and food prices look set to increase further. Commenting on Statistics SA’s latest consumer price index (CPI) data, Bishop noted transport inflation rose from 15% year-on-year in November to 16.8% tear-on-year in December, as petrol prices rose by 75c/litre. “While there was a 68c/litre cut in January, a huge increase of around R1.30/litre is building for February on the back of a rising global oil price,” Bishop warned. Looking ahead, food price inflation is expected to climb higher as heavy rains have caused crop damage and delayed planting, Bishop noted. “Lower yields are thus expected for crops such as sunflower seeds, maize, sorghum, soybeans, other dry beans and peanuts. The current La Nina phenomenon, expected to last until autumn, causes extreme rainfall, in contrast to the dry conditions of Le Nino.” Investec now expects CPI inflation to average closer to 5.3% y/y for 2022, as the December figure established a higher base for the 2022 CPI figures. The latest consumer price index shows that annual headline inflation jumped to 5.9% in December 2021, up from 5.5% in November 2021. This is the highest annual increase since March 2017 when the rate was 6.1%, Read the full original of the report in the above regard at BusinessTech Other internet posting(s) in this news category
Solidarity’s 2022 bank charges report shows new entrants are turning banking on its head Maroela Media reports that the Solidarity Research Institute’s (SRI’s) 2022 Bank Charges Report, which was released on Thursday, shows that online banking is turning the banking sector on its head. “It seems that a revolution is taking place in the banking sector in that Tyme Bank and Bank Zero offer the same services as traditional banks, but at a fraction of the price. It will even be possible to do business at these banks completely free of charge if cash transactions and the sending of money to cell phone numbers are avoided,” commented Theuns du Buisson, economic researcher at the SRI. Although banks are increasingly competitive in terms of added value such as reward programmes, costs remain a determining factor. According to the SRI, it is also clear that competition in the banking sector is on the increase. "The new online banks, which compete purely on the basis of costs, are by far the overall winners when it comes to costs alone. A list of 25 transactions that would cost between R99 and R143 at the traditional banks, costs a mere R21,50 at Tyme Bank, or R25 at Bank Zero. Even when compared to the cheapest accounts of the traditional banks, those with branches, the traditional banks are lagging far behind,” Du Buisson reported. The methodology for this year’s report was adjusted by the SRI to keep pace with changes in consumer behaviour. “Following a survey, we also decided to adjust the list of transactions to include fewer cash transactions this year. These have been replaced with sending money to cell phone numbers, as well as internet transfers,” Du Buisson explained. He indicated that he would not be surprised if the new banks become big banks as well within a few years. Read the full original in Afrikaans of the news report in the above regard by Tania Heyns at Maroela Media. Read Solidarity press statement and access the complete 2022 Bank Charges Report at Solidarity News
Gauteng paramedics to embark on walk on Friday to raise awareness of ongoing attacks on them News24 reports that following a number of incidents, Gauteng Emergency Medical Services paramedics will be embarking on a three kilometre walk in Ekurhuleni on Friday to protest against ongoing attacks on them and to raise awareness about the serious problem. According to the Gauteng Department of Health, paramedics were attacked at gunpoint in Reiger Park, Boksburg, on Tuesday morning while responding to a call of a woman in labour. "The crew was robbed by three armed men who made off with their personal cellphones and wallets. The criminals also took the ambulance keys," the department reported. Despite being accosted, the paramedics still assisted with the delivery of the baby and made arrangements for a second ambulance to assist in transporting both mother and baby to the hospital. In another incident, on Wednesday, at around 05:21, paramedics were held at gunpoint and robbed while attending a medical call in Eersterus in Tshwane. The crew was robbed of their personal cellphones and also a department-issued cellphone. Fortunately, the crew escaped unharmed and still managed to deliver the patient to hospital. Read the full original of the report in the above regard by Alex Mitchley at News24 Other internet posting(s) in this news category
Clash between workers and security guards outside Clover plant on Tuesday GroundUp reports that according to striking workers, private security guards fired rubber bullets and teargas at them outside the Clover plant in Clayville, Ekurhuleni on Tuesday. Workers have been picketing outside the dairy producer’s factories and plants as part of a strike since November last year. They are demanding that the company stop plans for further retrenchments and reinstate all workers. Marriam Mamabolo, a General Workers Industrial Union of SA (GIWUSA) shop steward, said she was preparing to hand out food parcels to about 300 workers when she heard gunshots. "We were outside the plant, dividing workers into groups to give them food parcels, when they started firing shots and teargas. People started to run away but some of us couldn’t so we choked on the fumes from the teargas," she stated. According to Mamabolo, some workers were injured. In a statement released by GIWUSA on Wednesday, the union claimed that Clover had "staged this shooting" to support the company’s urgent application to interdict the strike. The application will be heard at the Labour Court on Friday, according to GIWUSA national organiser Charles Phahla. Clover said no instruction had been given to security guards to shoot at the workers. "Evidence shows that striking workers threw rocks at security guards who took action to defend themselves," said Clover’s Steven Velthuysen. Read the full original of the report in the above regard by Masego Mafata at GroundUp
Sibanye-Stillwater restarts some safety-affected operations, but records another fatality Mining Weekly reports that Sibanye-Stillwater has restarted some of its operations following safety-related interventions and stoppages that were announced on 15 December. Despite these interventions, however, another mineworker has died. A locomotive driver was killed in 2 Shaft on Wednesday at the company’s Driefontein gold mine near Carletonville, in Gauteng. Sibanye’s James Wellsted reported that a power outage appeared to have occurred on the locomotive level, which led to the electric locomotive stopping. During this outage, the locomotive driver exited the cab for reasons that have not yet been established, which appeared to have led to him being fatally struck by either the locomotive or a hopper. Wellsted confirmed that investigations into the incident were ongoing and that Sibanye was cooperating fully with the Department of Mineral Resources and Energy (DMRE) and the relevant unions. He added that, although the section where the fatality occurred had been shut down, 2 Shaft remained operational. This was the first death at Sibanye’s operations this year, and followed the 18 fatalities recorded in 2021. On Thursday, trade union Solidarity also expressed shock over the latest fatality, suggesting that inspectors from the DMRE should consider closing down the entire Driefontein mine until Sibanye “can prove that it is safe to work in [its] mines”. Read the full original of the report in the above regard at Mining Weekly Solidarity shocked at first mine death at Sibanye-Stillwater for 2022 Maroela Media reports that it is barely three weeks into the new year and Sibanye-Stillwater’s Driefontein gold mine has already reported a fatality. Last year, the group’s mines reported a total of 18 work fatalities amongst its workforce. According to trade union Solidarity, inspectors from the Department of Mineral Resources and Energy should consider closing the entire mine until the mining house can prove that it is safe to work in its mines. Gideon du Plessis, Solidarity’s general secretary, reacted that drastic measures were necessary to improve the safety of Sibanye’s employees. “It is shocking that a company has so little value for the lives and existence of its employees,” he stated. Du Plessis went on to comment: “Part of the mining house’s problem is their arrogant and aggressive management style, which was the cause of the wage dispute, after almost six months of negotiating, during the current salary negotiations. The company is also engaged in a misleading media campaign to accuse unions of all kinds of falsehoods regarding their claims but conceals their own inability to reach settlements like the other mining houses with which constructive negotiations took place in 2021.” He called on Sibanye’s top leadership “to avoid a catastrophic 2022 by immediately starting constructive negotiations with trade unions on salary increases, and also to reflect seriously on their culture and approach leading to an increase in mining deaths.” Read the full original in Afrikaans of the news report in the above regard by Anja van der Merwe at Maroela Media. Read Solidarity’s press statement in regard to this matter at Solidarity News Other general posting(s) relating to mining
Nxesi condemns Malema's 'dangerous' labour inspections, but EFF leader digs in heels and promises more inspections targeting farms and security sector News24 reports that the Department of Employment and Labour (DEL) has strongly condemned the unsanctioned inspection of company employment policies conducted by EFF leader Julius Malema and his party this week. "[The] inspection of companies for whatever purpose is the work of officials of government. It's like going to a police station and taking over their duties. There are people who are dedicated to doing this job, and that is not the [EFF's job]," DEL spokesperson Sabelo Mali indicated. Minister Thulas Nxesi expressed similar views and said on Wednesday: “There are institutions that have been put in place to deal with such inspection visits, and this is [the] mandate of the Department of Employment and Labour, but we know that politicians can be very anxious to deal with these issues. It is important that they report these concerns [to] the Department of Labour and accompany individuals from the Department of Labour when they do site visits and not do them on their own. Politicians doing such visits on their own may be dangerous in that they may incite violence." Malema and a handful of EFF members descended on Mall of Africa in Midrand on Wednesday and, forcing their forced their way into at least three restaurants, demanding information about the ratio of foreign workers to South Africans. After the inspections, Malema conceded that contrary to his initial views, two of the three restaurants were employing more South Africans than foreign nationals. But, EFF leader said the inspections were not a once-off undertaking and threatened to conduct similar visits at farms, security companies, and the broader hospitality sector. Read the full original of the report in the above regard by Juniour Khumalo at News24 (subscriber access only). Read too, Malema’s restaurant visit causes a stir, at SowetanLive
Massive fraud scandal involving several former executives hits Dimension Data TechCentral reports that several former executives at Dimension Data are caught up in a fraud scandal following a forensic probe into the December 2019 sale of The Campus, its iconic head office in Bryanston, Johannesburg. The developments have created a crisis for Dimension Data, putting the sale of The Campus in jeopardy. The company also risks losing its broad-based black economic empowerment rating. This comes after Dimension Data’s parent company, Japan’s NTT, appointed the international law firm Herbert Smith Freehills to conduct a forensic investigation into allegations brought forward by a whistle-blower. The developments are likely to prove a big test of the leadership skills of newly appointed Dimension Data CEO Werner Kapp, who took over the reins from the long-serving Grant Bodley on 1 April 2021. Speaking on Thursday, a Dimension Data spokesman declined to name the executives concerned. However, the company said the former executives had failed to disclose their personal financial interest in the sale of The Campus. This has created a crisis for Dimension Data – and for parent NTT – because such disclosure is required under the Companies Act and “could affect the validity of the transaction”. As part of the sale transaction, Dimension Data agreed to set aside 15% of its equity in its SA business for a new empowerment-based staff share scheme, which would also include selected white and black senior managers of the IT group. Read the full original of the detailed report in the above regard by Duncan McLeod at TechCentral Three top ANCWL officials in North West suspended for alleged fraud BusinessLive reports that the ANC Women’s League (ANCWL) in the North West has suspended three of its top officials over allegations of defrauding the organisation of more than R2m. The decision was taken by the league’s provincial executive committee (PEC) at the weekend after it received a report on the matter. The PEC resolved to suspend provincial chair Fetsang Molosiwa, provincial secretary Bridget Tlhomelang and treasurer Manketse Tlhape. Acting provincial secretary Bitsa Lenkopane advised that there had been no choice but to suspend their party membership temporarily pending an investigation: “We came to a realisation that there is an element of fraud, if one is to put it that way, and other related elements that amount to conduct that [caused] us to put the comrades on suspension pending finalisation of an investigation that we are conducting.” Apparently the ANCWL’s provincial bank account had contained an amount of R2.4m in 2019, but the PEC was shocked to find it reduced to about R46,000 without a proper explanation. Lenkopane did not confirm nor deny the amounts mentioned. “It is unfortunate because we have always been told there is no money each time we needed to do organisational work,” said an official who asked not to be identified. Molosiwa has since issued a statement criticising the suspensions as a “blatant procedural flaw”. Lenkopane, however, asserted the validity of the suspensions and that due internal processes had been followed. Read the full original of the report in the above regard by Nonkululeko Njilo at BusinessLive Suspended Lottery boss facing disciplinary hearing over alleged money laundering GroundUp reports that a disciplinary hearing into the conduct of the suspended National Lotteries Commission (NLC) Chief Operating Officer began in Pretoria this week. Phillemon Letwaba is accused of money laundering and abusing his position to enrich himself and his family. The disciplinary hearing began on Tuesday and is expected to last at least eight days. Letwaba is accused of using front companies to funnel money from non-profit companies that received multimillion grants from the NLC to companies controlled by himself and his family. Much of this was from grants to non-profit companies via proactive funding. Proactive funding allows the Minister of Trade and Industry, who has oversight of the Lottery, or the NLC in consultation with its board, to fund “worthy causes” without receiving an application. There is a proviso that research must be done before proactive funding is awarded. Letwaba was suspended in October last year after a recommendation from the Special Investigating Unit (SIU), which has been probing corruption at the NLC following a Presidential Proclamation by President Cyril Ramphosa in October 2020. Letwaba’s suspension came just weeks after he returned to work after a 17-month “leave of absence”. His absence had been to allow audit firm SkX, which was appointed by the NLC to investigate alleged corruption, to do its work. Letwaba returned to work even though the SkX report had not been finalised. Read the full original of the report in the above regard by Raymond Joseph at GroundUp
Transport department and Prasa rehabilitating, reopening Mabopane rail commuter line Engineering News reports that the Department of Transport and the Passenger Rail Agency of SA (Prasa) are making progress with the R1.4-billion programme to upgrade infrastructure and implement refurbishments to reopen the Mabopane Corridor. Pienaarspoort to Pretoria and Mabopane to Pretoria services were resumed on 17 January. This followed the resumption of limited services on the Saulsville to Pretoria section in October last year. The Johannesburg to Naledi line will resume operations on 30 March, and the Mabopane Line will return to full service by the end of July. More than R700-million has been spent on the programme, including R255-million on 14 substations. The upgraded substations will allow for more trains to be added on to the system and copper content has been reduced to make Prasa's assets less attractive to criminals. Additionally, 163 km of overhead track equipment was installed at a cost of R383-million and R38-million has been spent on the Mabopane perimeter walling on signal equipment rooms. The station rehabilitation programme for 23 stations at a cost of R100-million has started. Currently, five stations, where repairs and minor renovations have been done to bring the stations to basic functionality, are operational. These are the Mabopane, Pretoria North, Mountain View, Hercules and Pretoria stations. Contractors have been appointed to rehabilitate an additional six stations, namely Soshanguve, Kopanong, Akasiaboom 4, Tailorshoop, Garankuwa and Dewildt. Read the full original of the report in the above regard at Engineering News
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