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 Tuesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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ConCourt backs government’s refusal to implement final leg of 2018 public sector wage deal BL Premium reports that in a hard-hitting unanimous judgment and a big victory for the government, the Constitutional Court (ConCourt) has ruled the state can back out of what an acting judge blasted as an “impugned wage deal” with unions in 2018. Mjabuliseni Isaac Madondo ruled that the government does not have to implement the last leg of the three-year agreement reached at the public sector bargaining council in 2018 as the unions were “unjustifiably enriched” from the “impugned collective agreement”. A ruling in the unions’ favour would have added R29bn to expenditure and would have tarnished the credibility of last week’s national budget, which named the wage bill — which is set to top R700bn in 2024 — as one of the biggest risks to SA’s finances. The unions — which included Nehawu, Sadtu, Popcru, and the Public Servants Association — approached the top court last August to challenge the ruling by the Labour Appeal Court in 2020, upholding a Treasury decision not to implement the final part of a three-year public sector wage deal due to a lack of money. On Monday, Madondo dismissed the appeal and criticised the “illicit salary increases” the unions enjoyed over two years, saying if the final year of the agreement were implemented, it would “precipitate a fiscal crisis” that would detract from the state’s ability to alleviate the plight of the poorest of the poor. Mugwena Maluleke, convener of the Cosatu public service unions, said: “It’s regrettable that the Constitutional Court dismissed our appeal and that workers have lost their increases, not because of their own fault, but that of the DPSA [Department of Public Service & Administration] for not complying with the regulations.” Popcru’s spokesperson said the judgment was a “sad moment for collective bargaining in our country”. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only). Read too, SA gets top court backing to renege on 2018 public wage deal, at Moneyweb. And also, Government workers lose Constitutional Court bid to enforce wage agreement, at Engineering News The trust is gone, say public sector unions as apex court ends hopes of implementation of final leg of 2018 wage deal Fin24 reports that public sector trade unions, which on Monday lost their last-ditch attempt to enforce a collective agreement signed by government in 2018, say that trust with government has been fundamentally breached, with the consequence that workers will not agree any time soon to another multi-year agreement. The Public Servants Association (PSA) is also threatening industrial action after the Constitutional Court ruled on Monday that the third leg of the 2018 wage agreement was unlawful as government representatives had signed the deal in the knowledge that it had not been budgeted by Treasury and made no effort to find the money thereafter. This was a breach of the Constitution and the Public Finance Management Act, the court found. The dispute dates back to 2020, when after two years of above-inflation wage increases under a three-year agreement, government reneged on the third leg, claiming that it did not have the funds to pay. Had the judgment gone in favour of the unions, workers would have scored R75.6 billion in back pay and would have higher starting salaries for 2022. The parties are due to begin negotiating a new agreement in two weeks’ time at the public sector co-ordinating bargaining council. Mugwena Maluleke of the SA Democratic Teachers' Union (Sadtu) and the bargaining coordinator for Cosatu public sector unions said the court outcome was "disappointing and regrettable that workers were not going to get the increases promised through no fault of their own but because the employer had not complied with regulations". The PSA, the next biggest union after Sadtu, said it was extremely concerned about the "adverse consequences for the future of collective bargaining and the state’s commitment to honour collective agreements". Popcru described the outcome as "a sad day for collective bargaining in our country". Read the full original of the report in the above regard by Carol Paton at Fin24 Other internet posting(s) in this news category
Government policy on quotas for foreign workers published for comment TimesLive reports that the government wants to introduce quotas on the total number of documented foreign nationals with work visas who can be employed in major economic sectors. These include agriculture, hospitality and tourism, and construction. Employment and labour minister Thulas Nxesi released the National Labour Migration Policy (NLMP) for public comment on Monday. The NLMP, together with proposed legislation, will among other things ban foreigners from starting small businesses in certain sectors. Nxesi explained: “We have researched extensively and benchmarked internationally in search of policy based on best practice. It has become increasingly apparent, with the rapid expansion of international migration flows, that SA needs to develop appropriate policy effectively to manage this. SA is not immune to international migration trends as well as attempts to exploit this for political gain.” He said an effective NLMP was the government’s response to this and aimed to address South Africans’ expectations regarding access to work opportunities, given worsening unemployment and the perception that foreigners were distorting labour market access. Public consultations will take a maximum of 90 days. The NLMP goes hand-in-hand with the proposed Employment Services Amendment Bill, which will provide a policy framework and the legal basis to regulate the extent to which employers can employ foreign nationals in their establishments while protecting the rights of migrants. The minister will establish a quota in a sector after consultation with the Employment Services Board and after considering public comments. Read the full original of the report in the above regard by Andisiwe Makinana at TimesLive. Read too, Labour Migration Bill to impose quotas on foreign national workers, at Engineering News Quotas for foreign workers: Offending employers could be fined up to R100,000 Fin24 reports that government plans to introduce new employment quotas on foreign workers and companies that fail to keep to the quotas could be fined up to R100,000. These were among the proposals of the National Labour Migration Policy (NLMP) and the Employment Services Amendment Bill, which were launched by Department of Employment and Labour (DEL) Minister Thulas Nxesi for public comment on Wednesday. The NLMP also proposes that foreigners be banned from starting small businesses in some sectors. The policy will give the director-general of the DEL the power to seek a fine from the Labour Court of up to R100,000 on any business whose appointment of foreign national employees is not in line with the newly introduced quotas. The Minister said that the policy was necessary to prevent exploitative employers from distorting the labour market. The NLMP will introduce quotas on the total number of foreign nationals with work visas that can be employed in agriculture, hospitality, and tourism as well as construction, along with other sectors. The policy indicates that the minister may authorise a labour inspector to monitor and enforce the provisions of the act. The policy requires that those who cannot adhere to the quotas should prove that the skills needed for the jobs where they have hired foreign nationals are not readily available in South Africa. Read the full original of the report in the above regard by Khulekani Magubane at Fin24
Trucks turned away at Richards Bay on Monday, freeways blocked in Joburg TimesLive reports that tensions continue to rise within the trucking fraternity as protests saw dozens of truck drivers pulled over by members of the All Truck Drivers Forum and Allied SA (ATDF ASA) on Monday. ATDF ASA is at loggerheads with the national bargaining council for the road freight and logistics industry over wage negotiations and the ongoing feud about foreigners employed by industry giants. A group of about 30 ATDF ASA members pulled over dozens of truck drivers in Richards Bay in northern KwaZulu-Natal as police and soldiers monitored the situation. Drivers were ordered to pull over or turn around at an informal truck stop along the John Ross Highway when attempting to enter the harbour. Five suspects who were intimidating truck drivers were arrested. In Johannesburg, trucks blocked the M2 and M1 south as well as the N3/N12 (Geldenhuys Interchange). The protests coincided with a peaceful march by ATDF ASA members to the national bargaining council offices in Pietermaritzburg where they had intended to hand over a memorandum of demands. However, the offices were closed when they arrived there. A stalemate resulted, with ATDF ASA members vowing to camp at the premises until someone received their memorandum. The protestors gave the council seven days to accede to the demands, which included that all foreign truck drivers be removed immediately and SA-registered trucks be driven by SA citizens. A 20% salary increase was among the demands. Another demand was the removal of cameras inside trucks. Read the full original of the report in the above regard by Orrin Singh at TimesLive. Read too, Truck drivers threaten to shut down SA’s roads, at The Citizen RFA says attacks against the trucking industry “must be fixed now!” Engineering News reports that renewed turmoil in the trucking industry has prompted the Road Freight Association (RFA) to again call for urgent intervention by the SA Police Service (SAPS). Protest action by the All Truck Drivers Forum (ATDF) has been reported in parts of the Eastern Cape, KwaZulu-Natal, Gauteng and the Northern Cape. The forum focuses on a number of issues, notably the employment of non-South African truck drivers by some fleet operators. RFA CEO Gavin Kelly said: “Once again, the road freight and logistics industry is being held ransom and attacked by parties who are unhappy with conditions or matters within the sector. The RFA has repeatedly called on the SAPS to protect the lives and health of our drivers, to protect the vehicles and cargo of our members and to ensure that, whilst there is the right to highlight and discuss issues, that the blatant disregard of anyone else's right to safety, security, employment and the opportunity to operate a business for the betterment of all cannot be tolerated.” He went on to state: “We cannot continue to absorb these attacks. The compliant operators are being continually attacked and pushed out of the sector. South Africa is losing any sense of safety and efficiency in terms of moving goods through the country to the ports. We are beginning to feel the backlash from neighbouring countries. We must fix this now!” Read the full original of the report in the above regard at Engineering News
Harmony employs fewer foreign mineworkers and is not concerned about proposed quotas BL Premium reports that Harmony Gold is not overly concerned about the Department of Employment and Labour’s new policy of introducing quotas for the number of foreign nationals with work visas who can be employed in a major economic sector. This was indicated by CEO Peter Steenkamp on Monday, who said the company had not been recruiting foreign workers recently. Harmony’s SA operations employ about 40,000 workers. Of these, 5,000 are foreign nationals, mainly from Lesotho, Mozambique and Zimbabwe. According to Steenkamp, the number of foreign workers used to be much higher but has been declining. Many are “legacy people who have been here for many years. But as these workers finish employment with us and retire, we don’t replace them with foreigners, we replace them with South Africans,” Steenkamp indicated. Employment and labour minister Thulas Nxesi released a national labour migration policy for public comment on Monday. The government intends to introduce quotas on the total number of documented foreign nationals with work visas who can be employed in major economic sectors. Read the full original of the report in the above regard by Karl Gernetzky and Denene Erasmus at BusinessLive (subscriber access only) Harmony Gold to shut Bambanani gold mine in Free State early as safety risks loom large Miningmx reports that Harmony Gold is to close its Bambanani gold mine in SA’s Free State province. This will incur an impairment of R144m which has been recognised in the first half of the 2022 financial year. The mine, which will be put on care and maintenance in July roughly 18 months earlier than planned, has been shut owing to its increased sesimicity. Harmony said it was “no longer possible to operate the mine in accordance with Harmony’s … safety protocols”. Harmony had planned to shut Bambanani in 2024 along with other ageing mines Masimong (closure still set for 2023) and Kusasalethu (2024). The schedule for these other closures remain unchanged. Peter Steenkamp, CEO of Harmony Gold, said it was “with a heavy heart” that the company had decided to shut Bambanani and, unless the workers at Bambanani opted for voluntary separation, all of its 1,500 employees would be redeployed in positions within the company. “Bambanani has some of the best crews and most experienced in Harmony. There is 17% of the pillar left but we are slowing down the mining,” said Steenkamp. Read the full original of the report in the above regard by David McKay at Miningmx
New funds for Denel won’t halt execution of attachment orders, which could spell SOE’s demise Business Report writes that state-owned arms manufacturer Denel still faces a steep road ahead with its outstanding R650 million salary bill, despite a R3 billion gifting by Finance Minister Enoch Godongwana, and a R1bn allowance out of the medical aid kitty. Unions with favourable attachment orders might still execute them, because the latest windfall is meant for interest payments and legacy debt, and not the salary arrears that the unions have fought for in court. Acting CEO William Hlakoane confirmed on Friday that the financially embattled state utility would still rely on its five-year turnaround plan, including the disposal of assets such as property and land, to meet its arrears obligations. Unions were adamant they would move for an execution of court orders, which entitle them to attach Denel's assets. “It seems money will not go to salaries… If the sheriff enforces all these court orders, obviously it will be the end of Denel. If they auction everything, then no matter what the turnaround strategy entails, even if it could be successful which is still debatable, the company would not be successful,” Uasa’s Rick Grobler commented. Denel owes staff R650m in outstanding salaries, and suppliers R900m. Last week it was ordered by the Labour Court in Joburg to pay R90m in outstanding salaries to Solidarity union members within 10 days. Hlakoane said Denel was doing as much as possible to deal with immediate issues. “Salaries are the main thing we are working on. Now it is not affordable for us to be paying people who are sitting at home,” he said. Read the full original of the report in the above regard by Banele Ginindza at Business Report
DA insists that Ramaphosa must give details of police commissioner Sitole’s exit package BL Premium reports that the Democratic Alliance (DA) on Monday called on President Cyril Ramaphosa to make public details of national police commissioner Khehla Sitole’s exit deal, and why he opted against the disciplinary route initiated in 2021. On Friday, Ramaphosa said Sitole would “by mutual agreement” vacate his post on 31 March as the two had reached consensus on terminating the commissioner’s service in the “best interests” of SA. Questions soon arose as to whether Sitole was given a “golden handshake” to leave quietly, thereby sidestepping a lengthy disciplinary process that would have cast the ANC, the government and the security cluster in a poor light. DA shadow minister of policing Andrew Whitfield said on Monday: “We would like to know on what terms that mutual agreement was reached. We would like to know the quantum that was paid, because there’s no way that no money was paid. And we would like an explanation as to why the president did not conclude the established disciplinary process.” The DA said it had filed a Promotion of Access to Information Act (Paia) application seeking more details on the “mutual” separation. On Monday the Police and Prisons Civil Rights Union (Popcru) linked Sitole’s exit directly to police failures during the July 2021 unrest that left more than 300 people dead. The 145,000-member union welcomed the move, but was concerned about continued leadership instability. Read the full original of the report in the above regard by Erin Bates at BusinessLive (subscriber access only). Read too, Sapu slams Ramaphosa over Sitole separation, on page 2 of The Star of 28 February 2022
Food prices have increased by almost 9% in a year TimesLive reports that South Africans are paying nearly 9% more for food compared with a year ago. This is according to the latest Household Affordability Index compiled by the Pietermaritzburg Economic Justice & Dignity Group that was released on Monday. The index shows the average cost of the household food basket was R4,355.70 for February. A year ago the same basket cost R4,001.17. According to the index, the cost has increased by 8.9% (R354.52). However, on a month-to-month basis the cost of the basket dropped by R45.33 from R4,401.02 in January 2022 to R4,355.70 in February 2022. The February 2022 Household Affordability Index tracked food price data in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok in the Northern Cape. “Food prices are tracked directly by women data collectors off the shelves of 44 supermarkets and 30 butcheries that target the low-income market, and which women identified as those at which they shop in the areas where they live,” explained programme co-ordinator Mervyn Abrahams. Read the full original of the report in the above regard by Suthentira Govender at BusinessLive PwC says higher consumer price inflation to persist for rest of this year Engineering News reports that PwC South Africa’s latest ‘Economic Outlook’ report shows that higher consumer price inflation could persist for the rest of the year. PwC’s downside scenario (higher inflation) sees local inflation averaging 5.3% this year, alongside elevated global inflation. It notes that, as a small economy, SA is vulnerable to global forces like rising producer and consumer price inflation. The downside scenario for consumer prices contains a substantial list of cost risk factors that SA companies will face in the year ahead. These include rising electricity prices, rising fuel prices, rand depreciation and rising food prices. The report also mentions that the SA Reserve Bank Monetary Policy Committee is planning four more interest rate hikes this year. In terms of the country’s economic situation, PwC says that there has been progress in getting economic activity back to pre-pandemic levels. It points out that a large number of industries are seeing activity levels above those seen prior to Covid-19. This is evidenced, for example, by the index of freight payload transported being 14.8% higher in December 2021 compared with the level in December 2019. This reflects an improvement in demand conditions, both locally and abroad. Read the full original of the report in the above regard at Engineering News
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