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 Thursday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Godongwana pushes for cut in public sector wage bill and will discuss wage restructuring with unions at summit at the end of March BusinessLive reports that Finance Minister Enoch Godongwana has called for public sector wage restructuring as the government moves to reduce the risk to the improved fiscal outlook. “We need some wage restructuring of some kind. What is in my head is to reduce the amount of money we allocate for the wage bill,” Godongwana said on Wednesday at a media briefing ahead of his budget speech in parliament. Godongwana added that restructuring did not necessarily mean reducing the headcount, but avoiding higher than inflation increases. He said these were modalities which would be discussed with public sector unions during a summit at the end of March. The public servants’ salary bill is regarded as one of the biggest threats to SA’s finances, and successful efforts in slashing it are regarded as vital for the country to claw back fiscal stability. While trade union federation Cosatu, a key ANC alliance partner, has backed President Cyril Ramaphosa’s efforts to clean up the government, it is not on the same page about the push to slash the wage bill. The union previously said it condemned the government’s fixation on singling out the public sector wage bill and its “deafening silence” regarding wastage, corruption and fruitless expenditure incurred through the huge outsourcing of public service functions. “A public sector labour summit is scheduled to take place as from March 28 to 31. This summit is an important opportunity for stakeholders to engage on building a sustainable public service and remuneration guidelines,” the minister stated. The Treasury detailed the worrying increase of public sector wages over the years. It also warned of job cuts if salary adjustments exceeded compensation ceilings. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive. Read too, Finance Minister: Public service wage bill risk to SA’s fiscal framework, at Moneyweb. And also, Government grapples with public service wage bill, as Godongwana eyes 'restructure', at Fin24 Godongwana's budget is good news for now, but risks are 'enormous', say economists Fin24 writes that Finance Minister Enoch Godongwana’s first budget was a feel-good one, but according to economists it left many questions unanswered. There were no new taxes, corporate tax fell, the poor got income relief, and education, health, police services and prosecutors all got more money. At the same time, government cut its future borrowing plans, which will put public finances on a sounder footing for the future. All of this was due to the R180 billion revenue overrun brought about by a boom in commodity prices. But the budget framework is laden with risk and uncertainty. Critical questions were left unanswered – such as the future cost of public service wages and the future cost of social grants – leaving large gaps in the second and third year of the budget framework. Key assumptions – for instance, over future revenue flows – look optimistic, say many economists, raising the risk that borrowing might not be lower, as projected, in the future after all. If this turns out to be the case, then the crowning achievement of the budget that the debt burden will stabilise at a lower level than a year earlier will fall apart. "There are risks on both the spending and the revenue side. I think we still have exactly the same problems we had before," commented Absa’s Mamokete Lijane. "It is a big gamble, the risk is enormous. And the underlying fiscal picture is not fundamentally different," said Wits adjunct professor Michael Sachs. Read the full original of the report in the above regard by Carol Paton at Fin24 (subscriber access only) More money planned for youth employment as Covid-19 pressures wane BusinessLive reports that Finance Minister Enoch Godongwana has hinted that spending priorities could shift from a response to Covid-19 to tackling rampant unemployment through job creation initiatives for young people, as mechanisms aimed at mitigating the impact of lockdowns on livelihoods begin to wind down. "An amount of R18.4 billion is allocated in 2022/23 and 2023/24 to support youth employment and the creation of short-term jobs under the presidential employment initiative," the budget review document indicated. In addition, most non-interest spending would be directed towards the social wage, which includes "health, education, housing, social protection, employment programmes, and local amenities". Godongwana tabled his first budget speech during a joint sitting of Parliament on Wednesday afternoon, two weeks after President Cyril Ramaphosa said in his State of the Nation Address that government was considering ending the National State of Disaster. Government spending included considerable relief to those impacted by both the pandemic and the July unrest last year. According to the budget review, UIF TERS had paid out R61.5 billion in relief to about five million workers affected by Covid-19 and R10.1 million to 2,700 affected workers affected by the July unrest by the end of January. But these payouts are set to decrease. At the same time, tax revenue for 2021/22 is estimated to come in at R1.55 trillion, a full R62 billion higher than estimates four months ago. Read the full original of the report in the above regard by Khulekani Magubane at Fin24 Pension funds may now invest up to 45% of their capital offshore, while ‘two-pot’ retirement legislation to be drafted later this year Moneyweb reports that Finance Minister Enoch Godongwana announced during his budget address to parliament on Wednesday that amendments to Regulation 28, which sets out the criteria and maximum limits of where and in which asset classes retirement funds may invest, would be published in March. The Budget Review document advised that local pension and savings funds would be able to invest up to 45% of their capital offshore. This would be inclusive of the 10% allowance for investments into other African countries. Previously, funds could only invest 30% of their portfolio outside Africa, and the amendment means they can now invest up to a maximum of 35%. The minister initiated the process to amend the regulation to enable greater infrastructure investment by retirement funds. Meantime, National Treasury will later this year publish draft legislation regarding its long-awaited ‘two-pot’ retirement structuring, which will aim to give people in financial distress part of their pension savings before they retire. Godongwana said that, having released a discussion paper last year, a consultation process was ongoing and he foresaw that draft legislation would be published for comment around June. The proposed restructuring will allow people to access a third of their savings for emergencies. However, two-thirds of retirement savings will have to be retained in a compulsory retirement fund, from which no withdrawal before retirement will be able to be made. Read the full original of the report in the above regard by Ryk van Niekerk at Moneyweb Godongwana plans to retain Treasury head Dondo Mogajane when his contract ends in June Bloomberg News reports that Finance Minister Enoch Godongwana has indicated that he wants to retain Dondo Mogajane, the director-general of the National Treasury, whose contract is scheduled to end in June. “He is going nowhere. My focus is on the stability of the Treasury. We can’t afford any disruptions to the Treasury at the moment when we are facing major fiscal challenges,” Godongwana said in an interview on Wednesday after presenting his inaugural annual budget. Mogajane has worked at the Treasury for 23 years and was appointed to his current post in 2017. Read the full original of the short report in the above regard by Mike Cohen at Fin24
Defence union threatens legal action over 'unacceptable' conditions at Air Force HQ SowetanLive reports that the SA National Defence Union (Sandu) has urged the top management of the defence force (SANDF) to fix the dilapidated infrastructure at air force headquarters in Pretoria, or face legal action. In a statement on Wednesday, general secretary Pikkie Greeff said the working conditions at the building were “unacceptable”. “It is with utmost concern that Sandu has been informed of the dilapidated conditions plaguing the SA Air Force HQ building,” he said. According to the union, for the past two weeks hundreds of air force personnel have suffered because the building's air-conditioning system had broken down, resulting in personnel having to work in offices at temperatures of 34°C. Other problems include: no permanent supply of running water to the building, resulting in alternative sources of water having to be pumped into the building’s plumbing system; the escalator system has been broken for almost three years; and the elevators have been broken for an extended period. The union claims several hundred staff members are subjected to unbearable working conditions in the multistorey building, with the only management solution being to send most staff home by lunch time daily, with only the bare minimum staff remaining in the unbearable conditions. The union says it is engaging with top management of the SANDF to restore the facilities to normality. “Should the union’s efforts not yield the desired results, Sandu will not hesitate to take legal action on an urgent basis. Sandu sincerely hopes that the latter course of action will not be necessary and calls on management and the minister of defence to urgently attend to this matter,” said Greeff. Read the full original of the report in the above regard by Alex Patrick at SowetanLive Other internet posting(s) in this news category
Clover’s three-month strike looks unlikely to be resolved any time soon as dairy producer digs in Business Report writes that daily conglomerate Clover said on Tuesday that it was looking into the possibility of establishing a dairy park, thereby generating new jobs, but for now was dealing with the impasse that had turned violent between the company and its workers in a prolonged strike. The three-month strike looks unlikely to be breached any time soon as the dairy conglomerate insists workers will have to fold on their demands. Commenting on the strike, Clover’s Steven Velthuysen said they were sceptical of the intentions of the General Industrial Workers Union of SA (Giwusa) with regard the fate of the workers as no compromise had been reached in extensive consultations with the CCMA as well as government departments. “We have had eight meetings in which we failed to find common ground. We had a further three or four meetings with the union to try to resolve issues, but we are surprised at the now violent behaviour. We have an interdict on the workers, but they have resorted to intimidation. They have burnt trucks and offices,” Velthuysen indicated. Workers have been on strike since mid-November to press for a 10%, or R2000 wage increase, and the revoking of austerity measures entailing salary reductions, a compressed working week of 12-hour shifts, offsetting short-time against overtime, imposition of a six-day week, compulsory work on Sundays and public holidays, permanent short-time and a cut to the transport subsidy. Giwusa’s John Appolis over the weekend said the union had made a proposal that would hopefully end the strike as it essentially entailed the reinstatement of workers axed in November, and a revised salary raise of 4.5%, down from the 10% initially demanded. But Velthuysen said the union had rejected everything that the company had proposed and that the proposed settlement agreement reversed every position of Clover. “The only thing we are close to is the wage increase, everything else is a reversal of what we put on the table,” he claimed. Read the full original of the report in the above regard by Banele Ginindza at Business Report
Satawu’s wage talks with the bus passenger sector hit roadblock, with mediation scheduled for March BL Premium reports that the SA Transport and Allied Workers’ Union (Satawu) has rejected a revised wage offer from employers in the road passenger sector and is sticking to its demand for an above-inflation wage increase. The union, one of the largest in the sector, is demanding an 11% wage increase, more than double the 4.9% inflation rate the SA Reserve Bank has forecast for 2022. Workers in the sector earn a minimum wage of R7,500 a month. Solomon Mahlangu, Satawu’s national co-ordinator for passenger bus workers, indicated on Wednesday: “In January we held a four-day discussion over the demands but we could not make progress as employers tabled a 2.5% wage increase and a zero increase on allowances. The second session, which was also a four-day engagement, was held last week.” During the second session the employers revised their wage proposal to 3% “on condition that we withdraw some of our demands”, Mahlangu reported. He said the parties failed to reach an agreement. “In March we are going for mediation. If we don’t reach an agreement, then a certificate of non-resolution will be issued, which will give workers the right to go on strike, and employers the right to implement a lockout,” Mahlangu explained. He said the union’s other demands included an 11% increase on the subsistence and travel allowance of R690 and for the double-driver allowance for long-distance drivers of R400 to be likewise increased by 11%. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
While Sibanye-Stillwater secures wage deal in US, unions at its gold mines in SA hold out BusinessLive reports that precious metals producer Sibanye-Stillwater has reached a three-year wage deal with a labour union at its East Boulder mine in the US. The deal with United Steel Workers International Union covers a broad range of terms including average annual wage increases of 2.5% in 2022, 3% in 2023 and 3% in 2024, Sibanye-Stillwater said in a statement on Wednesday. In addition to base increase in 2022, workers will receive increased benefits and incentives, resulting in an effective average increase of 5.4% for 2022 if all safety and quality deliverables are met, the company said. This settlement amounts to an annual average increase of 3.8% a year for the next three years, which compares favourably to US inflation, which rose to its highest level in four decades in January at about 7% year on year. Meanwhile, its gold operations in SA face potential industrial action after four unions, including the National Union of Mineworkers, the Association of Mineworkers and Construction Union and Solidarity, rejected the company’s offer to increase monthly pay by R700 for the next three years. The unions are demanding an increase of R1,000 over that period. The gold operations consist of underground mining and surface treatment facilities at Beatrix, Driefontein and Kloof. Read the original of the short report in the above regard by Andries Mahlangu at BusinessLive Other labour / community posting(s) relating to mining
After defeating Denel in court again, Solidarity to take action against looters at SOEs Engineering News reports that Solidarity has announced that it will pursue criminal charges against those responsible for theft and mismanagement at the country’s state-owned entities (SOEs). The trade union indicated this in a statement reporting its latest legal success, on behalf of its members, against the Denel defence industrial SOE. Regarding Denel, the Johannesburg Labour Court has ordered the SOE to pay R90-million to those of its employees who are members of Solidarity. This money is to cover overdue salaries and other payments due to the employees. Some Denel workers have not received their full salaries since May 2020. The court gave the company ten days to implement the order. This case followed a previous success when Solidarity received warrants to seize Denel property to the value of R12 million and Denel finally paid. Solidarity CE Dr Dirk Hermann warned that if Denel did not comply with the latest court order, the union would instruct the sheriff to seize assets belonging to the SOE. But, Hermann said that further action was needed: “We cannot allow that our members and ordinary taxpayers have to carry the can for the State’s mismanagement anymore while the plunderers can simply carry on plundering with impunity. We have to take matters further. We will now carry on with litigation and will file criminal charges to ensure that those who caused this mess can be held accountable for it.” Read the full original of the report in the above regard at Engineering News. Read Solidarity’s press statement in the above regard at Solidarity News
Huawei proposes out-of-court settlement with labour department in case of non-compliance with local hiring quotas Fin24 reports that Huawei Technologies SA would like to reach an out-of-court settlement with the Department of Employment and Labour (DEL) over claims that the company violated SA's employment equity regulations. The Chinese-owned firm this week approached the department with the offer after it was served with a legal notice regarding its failure to comply with local Employment Equity regulations. It faces a possible fine of R1.5 million or 2% of the unit’s revenue. The DEL’s chief director: statutory and advocacy services, Fikiswa Mncanca-Bede, said they were approached on Monday by the company with a possible out-of-court settlement offer. She could not reveal the contents of the proposal, as no agreement had been reached between the parties. "We are currently in talks with the company, and await the details of their final offer," said Mncanca-Bede. Earlier this month, the department announced that it had taken Huawei to the Labour Court for non-compliance with the Employment Equity Act, based on the overwhelming number of foreign workers it employed. An audit conducted by the DEL in 2020 had shown that Huawei was 90% staffed by foreign nationals, whereas it was legally required to employ at least 60% South Africans. The department had said the low representation of local personnel in Huawei was the worst case it had encountered - and the company had not provided any reasons for its breach. Mncanca-Bede mentioned that the issue of a possible fine against the company was not off the table. Read the full original of the report in the above regard by Sibongile Khumalo at Fin24. Read too, SA in talks with Huawei subsidiary to settle lawsuit over hiring, at Moneyweb
Independent probe continues a month after suspension of Western Cape MEC Albert Fritz over sexual impropriety allegations News24 reports that Advocate Jennifer Williams, appointed to head an independent investigation into allegations of sexual impropriety against Western Cape Community Safety MEC Albert Fritz, is tight-lipped about the time-frame needed to complete her investigation. This as Premier Alan Winde waits on her report into the veracity of the claims against his cabinet member who remains on suspension. "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 said. When contacted on Tuesday regarding the period required to conduct her probe, Williams declined to comment. Fritz was suspended on 23 January. Shortly thereafter, Williams was appointed as the independent external investigator. Her terms of reference are to investigate the specific allegations, obtain a response from Fritz and to determine the veracity and probability of the claims. The premier will, after receiving Williams' report, decide whether Fritz would remain in his cabinet and get legal advice on whether he could himself lay charges. Read the full original of the report in the above regard by Tammy Petersen at News24 KwaZulu-Natal teacher fired for sexually assaulting pupil, deemed unsuitable to work with children News24 reports that a KwaZulu-Natal (KZN) teacher has been fired after he was found guilty of contravening the Employment of Educators Act by sexually assaulting a 16-year-old Southlands Secondary School pupil. Darshin Gyanishwar was also found to be unsuitable to work with children. According to the Education Labour Relations Council (ELRC), the incident happened in April 2021 after the pupil had written an examination. Gyanishwar was engaged to be married to the pupil's sister at the time and stayed in an outbuilding on the woman's family property. The pupil's mother arranged for Gyanishwar to collect her from school and drop her off at the mother's workplace after the exam. However, Gyanishwar took her home and sexually assaulted her. Gyanishwar was later arrested and appeared in court. However, the matter was withdrawn at his second court appearance, pending the result of DNA testing. During the ELRC hearing, Gyanishwar denied the allegations. He claimed that the pupil was a "party to a conspiracy with other family members to extort money from him in anticipation of a payout from the Road Accident Fund". However, the ELRC arbitrator rejected Gyanishwar’s version, saying the pupil had given her evidence in a "clear and consistent fashion". Read the full original of the report in the above regard by Jeanette Chabalala at News24 Other internet posting(s) in this news category
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