In our Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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South Africa’s growth to slow to 2.1% in 2022, says Fitch Solutions Engineering News reports that Fitch Solutions expects growth in SA, which expanded by an estimated 4.8% last year, to slow to only 2.1% in 2022, as the base effects of 2021 fade and longstanding constraints come to the fore once again. Head of sub-Saharan Africa (SSA) country risk Jane Morley indicated that SA’s unemployment rate, which reached an all-time high of 34.9% in the third quarter of 2021, was also likely to remain elevated this year. There might be limited progress, however, in recreating some of the 325,000 jobs lost in KwaZulu-Natal and Gauteng as a result of the political violence, looting and destruction of property that took place in July last year. Joblessness is expected to remain elevated at around 31.3% in 2022 and act as a substantial constraint on private consumption. Despite government’s commitment to fiscal consolidation and a target of cutting the deficit in 2021/22 to 7.8% of gross domestic product, from 10% in 2020/21, spending would remain elevated in order to sustain the R350-a-month social relief grant, implement repairs following the July riots and to create 440,000 short-term work opportunities. This spending would be supported from increased revenue as a result of surging commodity prices and strong income tax collections from corporates. However, Fitch Solutions expects commodity prices to moderate during 2022. Read the full original of the report in the above regard at Engineering News South Africa experiencing jobless growth, says PwC Engineering News writes that PwC Strategy’s ‘SA Economic Outlook 2022’ report indicates that SA is experiencing jobless growth, with the country now topping the global charts for both aggregate unemployment, as well as youth unemployment. The document reports on PwC South Africa’s core macroeconomic forecasts for the country as of 24 January, based on different forward-looking scenarios. The report finds that the closure of companies, owing to the Covid-19 pandemic, load-shedding and other factors, and the scaling down of activities by others, have had a big negative impact on SA’s employment over the past two years. Moreover, following the week-long unrest in July 2021, and the adverse impact this had on economic activity and physical infrastructure, Gauteng and KwaZulu-Natal lost a combined 323,000 jobs during the third quarter of 2021. This contributed to a total loss of 660,000 employment opportunities in that quarter. While total employment is almost back to lockdown Level 5 levels, the report indicates that the loss of semiskilled services employment has contributed to the jobless growth trend. Semiskilled employment is nearly 19% lower compared with before the Covid-19 pandemic. Semiskilled jobs include aggregates for sale staff, craft and related trades, clerks, plant and machine operators, as well as skilled agricultural workers. The biggest number of jobs lost was in the category for sales and services. This group includes, among others, jobs like travel attendants, restaurant service workers, shop salespersons and demonstrators. The report notes that it is understandable how these jobs have declined over the past two years given how Covid-19 – and the July 2021 unrest – has impacted the retail and hospitality sectors. The report posits that, with 11.5-million unemployed and discouraged adults in SA, it would be highly beneficial for the country to have a business environment that is supportive of entrepreneurs. Read the full original of the report in the above regard at Engineering News Other internet posting(s) in this news category
Solidarity attributes retrenchments at PetroSA to mismanagement, poor political will Engineering News reports that according to Solidarity, mismanagement and a lack of political will at national oil company PetroSA are the main reasons for a second retrenchment process instituted within 12 months of a previous process at the company. According to the trade union, the state-owned enterprise informed its employees and unions in December 2021 that it wanted to reduce its workforce from 1,168 to about 318 members of staff by retrenching 850 employees. The consultation process started in mid-January under the auspices of the CCMA. Solidarity general secretary Gideon du Plessis said that, from an operational perspective, mismanagement by PetroSA’s executives “has clearly been replicated in their total blundering and negligence” in handling the retrenchment process. “The Section 189 retrenchment notice and business plan, which staff members and unions received, are fraught with technical errors and procedural flaws. As a result, the first CCMA consultation session focused only on the procedural flaws and did not deal with substantive matters at all,” Du Plessis reported. He advised that litigation, arising from these flaws, was a possibility. According to Solidarity, even in the run-up to the retrenchment process, PetroSA dealt with the applications for voluntary severance packages in an incompetent manner. It is Solidarity’s contention that PetroSA’s sustainability can easily be improved, and all jobs can be retained. “Solidarity will fight the retrenchments, but through constructive proposals (will) seek to prevent PetroSA from following the same path Denel and many other state institutions went,” Du Plessis noted. The follow-up session at the CCMA is scheduled for 1 February 2022. 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 Eastern Cape health workers warn about pressure on staff after 2,700 contracts not being renewed by health department GroundUp reports that Eastern Cape health care workers whose contracts were not renewed last December have warned that this will put pressure on already stretched permanent staff. About 100 workers affiliated to the SA Federation of Trade Unions (Saftu) met on Sunday at Dan Qeqe stadium, Gqeberha, where they aired their grievances. The workers were hired soon after the onset of the Covid-19 pandemic in 2020. Spokesperson for the Eastern Cape Department of Health Mkhululi Ndamase confirmed that the contracts of 2,749 workers had not been renewed in December, 2021. “The department would have loved to extend the contracts of the healthcare workers but this was not possible because of serious budgetary constraints. We started the current financial year with a R4.4 billion shortfall,” Ndamase explained. Affected workers advised that they had received letters informing them that their contracts would not be renewed. Some will leave at the end of January and others in March. Saftu Gqeberha leader Mzikazi Nkatha said the failure by the department to renew contracts of health workers was affecting the morale of permanent staff who were overworked. “Our health facilities have been operating under skeleton staff even before Covid-19. We are going back to a very serious situation of staff shortages. The non-renewal of contracts will directly affect delivery of services to patients. We have been engaging the department but little progress has been achieved,” Nkatha pointed out. Spokesperson for Gqeberha-based Emergency Medical Services workers Sikho Makeleni said the situation was even worse with ambulances, with few workers available to respond to emergencies. Read the full original of the report in the above regard by Joseph Chirume at GroundUp Other internet posting(s) in this news category
SA’s handle on public sector corruption no better than it was 10 years ago Moneyweb reports that information released on Tuesday as part of Transparency International’s Corruption Perception Index (CPI) show that SA is struggling to combat corruption in the public sector. The 2021 CPI ranked 180 countries and territories by their perceived levels of public sector corruption on a scale of zero (highly corrupt) to 100 (very clean). According to Corruption Watch, a review of the country’s fight against corruption since 2012 demonstrates a “woeful stagnation”. In 2012, SA received a CPI score of 43, which ranked it 69th out of 176 countries assessed that year. Not much has changed since then. For 2021, the country maintained its 2020 score of 44, but dropped its ranking further to 70th out of 180 countries assessed. “It is extremely disheartening to find ourselves, year after year, in the same position on the CPI, with marginal shifts up or down,” executive director of Corruption Watch Karam Singh commented in a statement. Lack of real action, according to Corruption Watch, is the biggest problem the country faces in tackling corruption. “Statements and commitments from leaders to uproot corruption at its source have not manifested in any real consequences for the perpetrators of the widespread corruption that South Africa has experienced,” Corruption Watch pointed out. To reinvigorate SA’s fight against corruption, Corruption Watch said it was important to reform its procurement systems, restore and strengthen institutional checks on power, and establish independent well-resourced public oversight bodies that would detect and help prevent further decay. Read the full original of the report in the above regard by Akhona Matshoba at Moneyweb Former SARS employee gets 12 years jail time for R6-million fraud, money laundering Fin24 reports that a former employee of the SA Revenue Service (SARS) has received a 12-year custodial sentence for fraud, forgery, uttering and money laundering worth some R6 million. SARS advised in a statement on Tuesday that Bilal Shaik was sentenced for facilitating fraudulent VAT refunds to three companies. The money eventually ended in Shaik's bank account, with Shaik using "the proceeds for personal gain". A second accused, Kyle Nadasen, was convicted of fraud, forgery and uttering and was sentenced to six years' imprisonment, suspended for five years on condition that he not be convicted under the Prevention of Organised Crime Act during that time. A third accused was acquitted. Read the full original of the report in the above regard at Fin24
Covid-19 corruption: Ramaphosa releases SIU report, over 2,800 irregular procurement contracts found Enggineering News reports that the Special Investigating Unit’s (SIU’s) final report on its investigation into the procurement of goods and services by government during the Covid-19 pandemic is now public after President Cyril Ramaphosa authorised the release of the report on Tuesday. In 2020 he authorised the SIU to investigate allegations of misuse of Covid-19 funds in government. The SIU investigated 5,467 contracts, totalling R14.3-billion, which were awarded to 3,066 providers. Of those, 2,803 contracts were found to have been irregularly awarded. The investigation found that R551.5-million in cash and assets needed to be recovered, while the possible loss of R114.2-million was prevented owing to the investigation. Ongoing investigations are not included in the report and the SIU hopes to complete all matters between March and April before it hands over a supplementary report to Ramaphosa at the end of June. The SIU has made 386 referrals to the National Prosecuting Authority and has recommended 224 disciplinary actions against officials in government departments or entities. It has also suggested Administrative Action for 330 referrals. The Special Tribunal on Corruption, Fraud and Illicit Money Flows will look at 45 matters, totalling R2.1-billion. Read the full original of the report in the above regard at Engineering News. Read too, Ramaphosa authorises publication of report on corruption in Covid deals, at BusinessLive DA calls on NPA to act quickly following release of SIU report on Covid-19 corruption News24 reports that the Democratic Alliance (DA) has called for the swift prosecution of those found to have acted illegally in abusing public Covid-19 funds. The Special Investigating Unit's (SIU’s) wide-ranging report into government spending linked to the Covid-19 pandemic was made public on Tuesday by President Cyril Ramaphosa's office. The report probed more than 5,400 government contracts, valued at R14.3 billion, which were awarded at the height of the Covid-19 pandemic. The SIU report recommends prosecutions in respect of government officials and civil servants who had a hand in awarding the irregular contracts – which currently stand at 2,803. The unit has referred 386 cases to be probed by the National Prosecuting Authority (NPA). The DA said it would study the report to gauge its implications and said in a statement on Tuesday: "We welcome the fact that referrals have been made to the National Prosecuting Authority, and we call on them to prosecute those who are guilty, without fear or favour, swiftly. A strong message needs to be sent to those who seek to profit off and loot the state. The only way to secure South Africa's future is to ensure that the wheels of justice continue turning. The corrupt and greedy have tried to make the country a lawless wasteland, where the rule of law and vulnerable people can be trampled. This must not be allowed to continue. Criminals should know that the free-fall is over." Read the full original of the report in the above regard by Zintle Mahlati at News24. Read too, SIU wants action on ex JB Marks mayor still earning salary despite links to Covid-19 corruption, at News24. And also, Former Santaco CEO received payments from blacklisted PPE suppliers, SIU report reveals, at The Citizen Other internet posting(s) in this news category
'They must answer for it,' says Clover, as it accuses striking unions of security guard's murder Fin24 reports that dairy producer Clover has slammed striking unions at the company, blaming them for the death of a Fidelity security guard who was killed while on duty on Saturday evening. This comes amid a strike at the dairy producer, with the Food and Allied Workers' Union (Fawu) and the General Industrial Workers' Union of SA (Giwusa) fighting against restructuring and for the reversal of retrenchments at the company. According to a statement from Clover, Tsephe Molatsi was part of a group of security guards protecting a Clover delivery truck. This was confirmed by Molatsi's employer, Fidelity. Clover says the truck was attacked by striking workers and a standoff ensued, which claimed Molatsi's life. Clover spokesperson Steven Velthuysen said the violence of the attack was "not industrial action" but "murder", adding that the company had an interdict granted against the unions to prevent violence but this was allegedly ignored. The statement said members of a union, which was not named in the statement, beat Molatsi and shot him in the head. "We have now applied for another one [interdict] against the union and certain union officials, which will be heard on Monday. The union bears full responsibility for this appalling murder. They will need to answer for it," Velthuysen said. Lieutenant Colonel Mavela Masondo indicated that a case of murder had been opened at Midrand Police Station. Read the full original of the report in the above regard by Khulekani Magubane at Fin24 As strike over retrenchments drags on, workers close ranks against Clover with planned day of action on Thursday Business Report writes that several labour organisations are gearing up for solidarity action on Thursday against Clover companies and stores stocking the company’s products. This comes as a protracted strike for wage increments and against retrenchments drags on into its tenth week. The SA Federation of Trade Unions (Saftu), the Food and Allied Workers Union and the General Industrial Workers Union, along with the National Union of Metalworkers of SA (Numsa), have resolved to pile pressure on Clover in a national and international day of action, which will include protesting at various embassies. The unions are protesting the closure of several factories and retrenchments. Clover closed two factories in the Western Cape in 2020 and intends to close four more factories in Gauteng, the Free State and in the North West. In 2021, 1,600 workers were retrenched and a further 822 will be retrenched by the end of February. “On January 25 (presumably 27 January) is the national and international day of action when Saftu is calling on the working class to occupy shops stocking Clover products, and to hold demonstrations at embassies. We are calling on all our members and all progressive working-class organisations to support this strike and to support the call to boycott Clover. Those who are able to attend the demonstrations are encouraged to do so in support of this just cause,” the unions indicated in a joint statement. On Saturday, the unions held a rally to mobilise Numsa, the SA Commercial, Catering and Allied Workers Union and the Transport, Action, Retail and General Workers Union, at which a special working-class movement to look at solidarity actions and to elaborate a further programme was established. Read the full original of the report in the above regard by Banele Ginindza at Business Report
Armed men rob Putco bus driver and passengers in Tweefontein, Mpumalanga, on Tuesday News24 reports that a bus driver and his passengers were attacked and robbed in the early hours of Tuesday morning in Tweefontein, Mpumalanga. The passengers were on their way to work when they were ambushed. The armed robbers fled with cellphones and cash. The Putco bus driver had been ferrying passengers from Tweefontein K section to Tweefontein A section. Police spokesperson Brigadier Selvy Mohlala reported as follows: "While waiting at Tweefontein A for passengers, three armed men boarded the bus. They threatened the driver and his passengers with firearms. They then robbed the driver of his bag, cellphone, staff card and cash before firing two shots. The men proceeded and robbed passengers of their cash and cellphones. They drove the bus for a short distance, parked it, and ran away with the keys." Mohlala indicated that no one was injured during the incident. Police are investigating a case of armed robbery. Read the full original of the report in the above regard by Ntwaagae Seleka at News24 Other internet posting(s) in this news category
Western Cape premier Alan Winde not yet in a position to lay criminal charges in Albert Fritz sexual assault scandal News24 reports that according to Western Cape Premier Alan Winde, he is "currently" not able to lay criminal charges in the sexual assault scandal involving suspended Community Safety MEC Albert Fritz. However, Winde advised that he could not rule out criminal charges should an investigation result in advice indicating that it was necessary or appropriate for him to do so. "I am being assisted by the legal services unit of the Western Cape government, which has approached the State Attorney, instructing them that independent legal counsel be appointed to conduct an external investigation into the veracity of the allegations made against Minister Albert Fritz. We are currently awaiting confirmation from the State Attorney on the instruction, which we expect to receive imminently. I will provide the details of the appointee once confirmed," Winde indicated. He advised that the allegations were first brought to his attention by "a third party" informally on 23 November 2021, after which he requested affidavits from the persons directly involved so that he could take action. After receiving legal advice and meeting with the complainants, Winde said there was enough information to suspend Fritz forthwith. He indicated that further details on the matter would be released once the external investigator had been appointed. Read the full original of the report in the above regard by Jason Felix at News24
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