This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
In our Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Business calls for bold steps to rationalise or shut down slacking SOEs BL Premium reports that organised business has called on President Cyril Ramaphosa to use his sixth state of the nation address (Sona) Thursday to provide clear details on rationalising or closing down struggling parastatals that have been a drain on the country’s finances. While the president has, in previous addresses and on numerous other occasions, vowed to fix state-owned enterprises (SOEs), many of them, including Eskom, Transnet, the Passenger Rail Agency of SA and Denel, remain in a parlous state. “This [fixing SOEs] has been an ongoing debate, with little progress. We have said, over many years, that government must be thorough about looking at the SOE environment,” Cas Coovadia, the CEO of Business Unity SA (Busa), said on Monday. The crises at the entities have put the government under pressure to show its intent on the restructuring of SOEs and reducing the financial burden on the fiscus. Ratings agencies have cited SOEs, including Eskom, as the major risk to the sustainability of the country’s finances. Said Coovadia: “The president must be clear that government will rationalise SOE's including closing those that have neither an economic or social reason to exist, combining those that can be combined and ensuring sound governance, clear growth enhancing mandates and productive relationships with the private sector for those that are still needed.” Deputy Finance Minister David Masondo told MPs recently that Treasury’s ‘tough love’ approach towards SOEs might involve the introduction of more private-sector participation. Trade union federation Cosatu said the deterioration of SOEs was “deeply concerning”. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (subscriber access only) Eskom CEO promises action on poorly performing executives BusinessLive reports that after the latest round of load-shedding, Eskom CEO André de Ruyter said the state-owned power utility would be taking action against certain members of power station management. “We are not satisfied at all with the performance of some of our senior executives and we will implement sanctions against [those] individuals concerned,” he indicated at a press briefing on Monday evening. De Ruyter would not say at which power stations the so-called consequence management would be implemented as the affected employees needed to be informed before further information could be made available to the public. “We are not going to be tolerating poor performance and we will take appropriate action against underperforming people who do not live up to their duty to Eskom and to 60-million South Africans,” De Ruyter stated. “While we do have a challenge in terms of system unreliability and unpredictability, we do also have a significant challenge with human capital,” Eskom COO Jan Oberholzer commented. South Africans were assured, however, that the lights would remain on at the Cape Town City Hall on Thursday night when President Cyril Ramaphosa will present his state of the nation address. De Ruyter said Eskom could not guarantee that there would be no load-shedding during the president’s address. However, in collaboration with the City of Cape Town, Eskom would ensure there would be no power interruptions at the venue during, or in the time leading up to, the address. Read the full original of the report in the above regard by Denene Erasmus at BusinessLive. Read too, Some senior Eskom executives facing disciplinary action over poor performance, at EWN. Lees ook, Afdankings kom oor beurtkrag, by Maroela Media Land Bank CEO and top executive quit as debt solution hangs in the balance Fin24 reports that the Land Bank, which has missed another deadline to conclude an agreement with lenders to which it owes R40 billion, announced on Tuesday that its CEO Ayanda Kanana had resigned. The bank defaulted on debt servicing payments in 2020 and has been in talks with the majority of lenders ever since to solve the default. Until it is resolved, the bank cannot access finance to lend on to farmers. During the audit of the last financial year, the bank was required by the auditor-general to reach a "liability solution" with lenders by 31 January, but a solution has yet to be found for the bank's debt dilemma. Kanana had been in the CEO position for two years. Another senior executive, Litha Magingxa, who was head of agricultural economics and advisory and had been with the bank for four years, also resigned. Kanana, who coincidentally appeared before parliament’s portfolio committee on finance on Tuesday, told MPs that a third proposal or "liability solution" was on the table before lenders. "For the past 22 months, we have been working with lenders on a solution on three solutions. Lenders have indicated they have reservations about the latest solution. We are continuing to engage so we can get out of default and focus on our mandate," said Kanana. Treasury Director General Dondo Mogajane said Treasury was working "flat out" to find a solution that was acceptable to everyone. Futuregrowth, which is coordinating the lenders group, would not comment on the negotiations. Read the full original of the report in the above regard by Carol Paton at Fin24 Other internet posting(s) in this news category
Ramaphosa may use BIG to shore up his support, says former head of budget office Michael Sachs BL Premium reports that a permanent basic income grant (BIG) may weaken the credibility of fiscal policy but it may also have positive spin-offs for the economy — while being impossible politically for President Cyril Ramaphosa to avoid. That is according to Michael Sachs, Wits University professor and a former head of the budget office at the National Treasury. He used a paper published on Tuesday — two days before Ramaphosa delivers his state of the nation address (SONA) — to highlight the risks that could come with the policy and the sacrifices that would needed for it to be sustainable. With the temporary Covid-19 social relief of distress (SRD) grant of R350 a month set to expire in March, the government has been under immense pressure to extend it and to use it as a basis for a universal grant. The grant was introduced in the context of the state of disaster regulations after the outbreak of Covid-19. A previous plan to let it lapse was thwarted by the violent looting in Gauteng and KwaZulu-Natal in July 2021. In his article titled “Basic income support is unavoidable, but making it work requires political courage”, Sachs said a grant, which would involve a new expenditure commitment of between R50bn and R100bn, equivalent to 1% of GDP, “will worsen SA’s fiscal position, which is already so chronic that it has itself become a central cause of slow growth and economic stagnation”. But, according to Sachs, the political pressure may be too hard to resist, and the introduction of a grant, which is unlikely to be temporary given SA’s structurally high unemployment and poverty rates, may even be seen as necessary for Ramaphosa to win a second term as ANC president in 2022. Labour federation Cosatu has not only called for the SRD grant to be extended beyond March but also for it to be increased to the food poverty line, which is just more than R600 a month, and be used “as the foundation for a BIG”. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only) Other internet posting(s) in this news category
Foskor denies responsibility for gas leak that saw over 50 Richards Bay school pupils needing treatment for gas inhalation BusinessLive reports that chemical mining company Foskor has denied responsibility for a leak, which left more than 50 Richards Bay school pupils needing treatment for gas inhalation on Monday. On Tuesday, Foskor corporate affairs manager Hulisani Nemaxwi confirmed that the company had received a complaint from the uMhlathuze municipality regarding a possible gas leak from their acid plant near Richards Bay High School. “A detailed investigation was conducted by our team, which revealed there was no such gas leak at Foskor facilities,” he indicated. Nemaxwi said plant monitoring was done daily as part of their preventive maintenance programme to avoid gas leaks and added: “Foskor operates three sulphuric acid plants called A, B and C. Plants A and B had been taken down for routine planned maintenance, and operating data for plant C indicated Foskor was operating within the minimum emission standards.” Joseph Kruger of Mounties Emergency Medical Services said 53 pupils were seen by medical staff at hospitals in the area, but only five were admitted. He said most patients were treated for acute shortness of breath. Read the original of the report in the above regard at BusinessLive. See too, Foskor denies there was a gas leak at its Richards Bay plant on Monday, at IOL Other internet posting(s) in this news category
Community protests halt construction at Wesizwe's Bakubung mine Mining Weekly reports that on Tuesday platinum group metals (PGMs) development company Wesizwe Platinum informed shareholders that community protests had interrupted the development of its Bakubung mine. It noted that Ledig community members had on 26 January embarked on a march towards the Bakubung mine. The marchers blocked the mine entrance and through the Kgosi – the community chief – delivered a memorandum of demands to the mine. For the safety of Wesizwe’s employees and mine property, the construction of the mine was suspended. After the community march, the company urgently engaged with the Ledig community, through its leadership, to find a solution to the community's demands and resume construction of the project. Formal negotiations were held with the community on 27 January and an agreement was signed off by the Kgosi and Wesizwe's CEO. However, on 31 January, further demands were made against the mine. On 3 February, a meeting was held between management and community leaders. Wesizwe reports that despite the company having secured a court interdict on 31 January, intimidation of the Bakubung workforce has continued. Mine property has also been damaged. "Management are working tirelessly to ensure a safe start-up of Bakubung as soon as possible," Wesizwe assured shareholders. Read the full original of the report in the above regard at Mining Weekly Other general posting(s) relating to mining
Employment and Labour Minister announces 2022 national minimum wage increases The Citizen reports that Employment and Labour Minister Thulas Nxesi has announced National Minimum Wage (NMW) rates for 2022, which will come into effect from 1 March. The rate for each ordinary hour worked has been increased from R21.69 to R23.19. Farmworkers and domestic workers will also be entitled to a minimum wage of R23.19 an hour, while workers employed on an Expanded Public Works Programme (EPWP) will be entitled to a minimum wage of R12.75 an hour. The NMW is the amount payable for ordinary hours of work and excludes payment of allowances, such as transportation, tools, food or lodging; payments in kind, such as board or lodging; tips; bonuses; and gifts. The announcement was made in terms of Section 6(5) of the NMW Act of 2018 to amend the NMW contained in Schedule 1 and Schedule 2 of the National Minimum Act, published under Government Notice No. 44136. The legislation requires the NMW Commission to review the rates on a yearly basis and make recommendations to the Minister on any changes to the NMW, while also taking into account alternative viewpoints, including those of the general public. The commission considers a number of factors when determining the yearly adjustment. Nxesi warned employers against changing working hours to avoid paying the national minimum wage. Read the full original of the report in the above regard compiled by Narissa Subramoney at The Citizen. Read too, Nxesi announces 2022 national minimum wage increases, at Engineering News Solidarity condemns new national minimum wage Solidarity on Tuesday strongly condemned the new national minimum wage of R23.19 per hour, as announced by Employment and Labour Minister Thulas Nxesi. According to the trade union, the minister would have had a much more positive effect on the labour market and the economy if he had scrapped the minimum wage altogether. Theuns du Buisson, economic researcher at the Solidarity Research Institute, commented: “While the economy is still struggling to recover from the devastating impact of Covid-19 and the implementation of some of the most stringent lockdown measures in the world, it is absurd to increase our already irrational minimum wage by more than the inflation rate.” He went on to explain: “The labour market is like a ladder that one climbs throughout your career. We would like everyone to reach the top of that ladder. However, the minimum wage does not propel anyone to a higher rung on the ladder. It only prevents those standing on the floor from getting the chance of climbing onto the bottom few rungs of the ladder.” According to Du Buisson, a further worrying consequence of the higher minimum wage could be an increase in xenophobia and illegal labour practices because the minister was making it increasingly expensive for employers to legally employ South Africans. He also contended that by exempting Extended Public Works Programme workers, who will only be entitled to R12.75 per hour, the government itself demonstrated the counter-productiveness and harmfulness of the minimum wage. “Solidarity has always been of the opinion that the best way to ensure better wages is to acquire better skills and to gain experience. Regulations such as these will prevent people from gaining experience because there will now be even fewer jobs for new entrants to the labour market,” Du Buisson concluded. Read Solidarity’s press statement in the above regard at Politicsweb
SA Army chief outraged by fake job alerts luring kids as young as 15 to join military The Star reports that the Chief of the SA Army, Lieutenant General Lawrence Khulekani Mbatha, has expressed outrage over job scams being posted online, purported to be employment opportunities for people as young as 15 to join the military. Mbatha said the fake job alerts were deceitful efforts by faceless criminals seeking to bring the SA Army into disrepute. He indicated: “Neither the SA Army nor the SANDF engages in the employment of child soldiers. The Constitution of the country and the relevant legal prescripts governing employment do not allow for the recruitment of minors. It is therefore illegal and unethical to suggest that the SA Army is calling for minors to apply for employment.” Unsuspecting job seekers and their families are lured into paying “application fees” by the scammers, who then vanish when the money is paid by the would-be soldiers. “Scammers have resorted to luring desperate youths and their unsuspecting parents by offering stipends, free accommodation and free applications, a deviation from the now well-known modus operandi of asking for an application fee to make their advertisement look and sound legitimate,” said Mbatha. He reiterated, categorically, that there were currently no official marketing and recruitment drives being conducted. Read the full original of the report in the above regard by Jonisayi Maromo at IOL
Inquiry finds that Joburg chief prosecutor should be axed for hate speech, xenophobia, intimidation of staff and manipulating performance stats News24 reports that suspended Johannesburg chief prosecutor Pumeza Futshane has been found guilty of misconduct at a disciplinary inquiry, which recommended that she be fired. The charges included allegations of hate speech, xenophobia, the intimidation of staff and manipulating the National Prosecuting Authority's (NPA’s) performance statistics. The finding and recommendation – delivered by independent chair of the hearing advocate Kerensa Millard – came nearly a year after Futshane was placed on suspension. According to evidence presented by the NPA at her hearing, Futshane was seen as untouchable owing to her marriage to South Gauteng prosecutions boss Andrew Chauke. Both Chauke and Futshane had been locked in a bitter and public feud with NPA head Shamila Batohi. The lion's share of Futshane's misconduct charges arose from inflammatory messages she posted on an official NPA WhatsApp group. Futshane was accused of discriminatory and racist conduct over a raft of xenophobic messages she posted on that group, as well as a telephone conversation in which she allegedly called a white prosecutor "Wit Wolf" and "Boeremag". The misdeed that sealed her fate was altering the performance statistics of the courts she oversaw. With the deck stacked against Futshane, Millard held that the only appropriate sanction was dismissal. Contacted on Tuesday, Futshane referred requests for comment to her attorney. NPA spokesperson Bulelwa Makeke said the matter was being handled internally. Read the full original of the report in the above regard by Jeff Wicks at News24 (subscriber access only). Lees ook, Senior NVG-amptenaar afgedank oor rassisme, by Maroela Media
Western Cape premier still awaiting lawyer’s report on sexual misconduct allegations against MEC Albert Fritz IOL reports that there are still no concrete developments into the sexual misconduct allegations against Western Cape community safety MEC Albert Fritz three weeks after he was suspension. On Tuesday, the office of provincial Premier Alan Winde confirmed he was waiting for the report by the independent investigator, advocate Jennifer Williams, into the veracity of the allegations against Fritz. “Advocate Williams is in control of the process and the length of time needed for the completion of her independent investigation. The premier has requested for the investigation to be concluded as quickly as possible and we will communicate further once a report is made available to the premier,” Winde’s spokesperson, Odette Cason, said. On whether there was an update on the police inquiry, Cason said: “Please refer to SAPS, which is best placed to provide an update. The premier has met with provincial police commissioner and has emphasised his full support for the inquiry. He has also encouraged complainants to lay criminal charges when they are ready.” Brigadier Novela Potelwa, spokesperson for provincial police commissioner Thembisile Patekile, confirmed earlier that police had opened an inquiry about two weeks ago. Fritz is alleged to have sexually assaulted young women in his office. He withdrew from his position as DA provincial leader on 24 January following his suspension the previous day. Read the full original of the report in the above regard by Tarryn-Leigh Solomons at IOL
Being a councillor is a ‘sh*t job’, Salga’s Aletta Mashigo tells newly-elected Gauteng councillors BL Premium reports that on Tuesday Gauteng’s SA Local Government Association (Salga) outgoing chair Aletta Mashigo told newly elected councillors just what she thought of their crucial roles as public servants. In her address during the Salga Gauteng provincial elective congress in Muldersdrift, which was attended by executive mayors, CFOs, heads of departments and municipal managers from the province’s 11 municipalities, Mashigo started by welcoming all the councillors who “have been successfully elected”. She went on to say: “I hope there are no kids here and that I’m not going to be charged. [Now] to the sh*t job, to be a councillor is one sh*t job. But don’t say I said that, my mouth doesn’t insult. But being a councillor is a sh*t job. So I want to say to you welcome to this environment that is so difficult for everyone.” What Mashigo did not tell her audience is that councillors are among the highest paid public servants in the country. In SA’s biggest metros, executive mayors can earn up to R1.4m a year, with their deputies taking home about R1.1m. Members of the mayoral committee, whip or chair of a sub council, or head of a portfolio committee can earn up to R1m a year, including benefits. The packages include perks such as travel allowances, among others. Mashigo’s remarks come amid increasing service delivery challenges — that the newly elected councillors have to address — pertaining to job creation initiatives, delivery of housing, clinics, schools and roads. SA’s municipalities have been dogged by systemic corruption, looting, maladministration, political instability and mismanagement, which has affected service delivery. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
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