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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Material conditions have made strikes unviable, says Cosatu’s Bheki Ntshalintshali TimesLive writes that on the streets, the once-mighty Congress of SA Trade Unions (Cosatu) that could bring the country to a standstill a decade ago is no more. But there are many more victories in the boardroom in the form of policies that are pro-worker than was the case 10 years ago. This is the assessment of Cosatu general secretary Bheki Ntshalintshali, who said in a recent interview that rising unemployment had made it almost impossible for workers to embark on rolling mass action like before. He admitted that those who believed Cosatu was weaker now than when it was famous for protracted strikes were probably correct, but there were reasons for this. “Unemployment is very high so a worker must think very hard before striking because one may be supporting more family members than before. It might have been easier 10 years ago to go on strike, and a long strike for that matter, but now it is very difficult even when workers see the employer is very aggressive,” he noted. Ntshalintshali said the contradiction between strike action which, at times, contributed to rising unemployment — such as had been the case in the platinum belt — and going the boardroom route where workers where likely to compromise more than they would on the streets had muddied the situation. It was for this reason that the most favoured strategy nowadays was the boardroom approach. “In the boardroom we have sound policies that cannot be refuted. But it takes time on the side of government to realise these issues,” he said. Some of the polices Ntshalintshali accredited to Cosatu’s sharp negotiating skills in the boardroom included: UIF Covid-19 Ters; National Minimum Wage Act; Eskom Social Compact; Economic Recovery and Reconstruction Plan; and Compensation of Injury on Duty Amendment Bill, Read the full original of the report in the above regard by Mawande AmaShabalala at TimesLive Andrew Levy estimates wage settlements in 2022 to range between 4.8% and 5.9% BL Premium reports that in a webinar on Tuesday on the wage negotiating outlook for 2022, well-known labour economist Andrew Levy said it was likely that under the current circumstances other industries might take the lead from the government, which successfully challenged implementing the last leg of a three-year wage agreement reached in 2018 due to a lack of money. He maintained that the private sector would do this “in order to maintain viability in the current economic climate”. The coronavirus pandemic has battered the SA economy, which declined 6.4% in 2020 and resulted in a loss of 1.4-million jobs. The unrest in KwaZulu-Natal and Gauteng also impacted the economy, which lost R50bn during the mayhem. The war in Ukraine is set to inflict another economic shock that could lead to a spike in inflation and result in increased wage demand and “strong pressures at the negotiating table”. But, Levy said wage increases were falling faster than “we have experienced for decades”. In his estimation, the anticipated range for the average level of settlement was between 4.8% and 5.9%. As a general rule, wage settlements traditionally averaged 2% to 3% above inflation, “allowing for a rise in real wages”, but this did not happen in 2021 “due to the aftermath of the pandemic and employer resistance and wage levels have now narrowed in relation to the CPI”. Levy said centralised negotiations that would set the trend for wage settlement levels in 2022 included the public sector, the local government sector, the steel and engineering industries sector, and the gold mining sector, which have a combined workforce of more than 2.5-million people. The NUM and Amcu are set to embark on a wage strike at Sibanye-Stillwater’s gold operations from Wednesday evening. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
Stats SA reports that South Africa's economy grew by 4.9% in 2021 Engineering News reports that SA’s gross domestic product (GDP) for 2021 increased by 4.9% in 2021, compared with a contraction of 6.4% in 2020. On Tuesday, Statistics SA’s Risenga Maluleke explained that the growth was the result of the country moving out of the Covid-19 pandemic environment in 2021. However, despite growing at a rate of 4.9%, he highlighted that the economy was still sitting at a similar level to that of the third quarter of 2017. Meanwhile, GDP increased by 1.2% quarter-on-quarter in the fourth quarter of 2021. Reza Hendrickse of PPS Investments noted that overall 2021 had been a strong year, but much of this was due to a rebound from 2020’s low base, while the favourable global growth backdrop was also a tailwind. Despite this, the size of SA’s economy remained below pre-Covid levels. “Going forward the outlook is more muted, with a return to trend growth, which is closer to 2% per annum," Hendrickse stated. North West University’s Professor Raymond Parsons said that to make tangible progress on both the employment and tax revenue fronts, the country needed to progressively aim for 4% to 5% GDP growth and do what was urgently necessary to achieve it through greater collaboration with the private sector. Trade union Solidarity said that despite the higher-than-expected economic growth, it was concerned over SA’s increasing dependence on government spending and financial services and that substantial changes were urgently needed to get SA back on track. Read the full original of the report in the above regard at Engineering News. Read too, SA’s economy grew by 1.2% in last quarter of 2021, at Moneyweb. En ook, SA ekonomie groei verlede jaar met 4.9%, by Maroela Media Indifference to the real economy will lead SA on path towards disaster, says Solidarity Solidarity expressed its concern on Tuesday that, despite the higher-than-expected economic growth for the Fourth Quarter of 2021 as announced by Statistics SA, SA was increasingly dependent on government spending and financial services. According to the trade union, the increasing financialisation of the SA economy will have disastrous consequences for the majority of South Africans. Theuns du Buisson, economics researcher at the Solidarity Research Institute, commented: “‘Higher-than-expected’ does not mean much, especially when the most essential industries are precisely the ones that are shrinking. On the one hand we must start to cultivate better expectations for our country, and on the other we should stop looking at overhead figures only instead of looking at the fate of ordinary South Africans.” He went on to indicate: “Almost every sector of the real economy is shrinking or is stagnating – today mining, manufacturing, construction, trade and utility services are all smaller than what they were even five years ago. It is in those very areas where we should see the highest levels of employment, where most prosperity can be created for the greatest number of people and where South Africans can see direct and visible added value to their lives.” Du Buisson expressed Solidarity’s contention that the contraction of the real economy could be attributed mainly to government policy and that substantial changes were urgently needed to get SA back on track. Read Solidarity’s press statement in the above regard at Solidarity News
NUM and Amcu to strike at Sibanye-Stillwater’s gold mines from evening shift on Wednesday BusinessLive reports that the National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (Amcu) will embark on a strike at Sibanye-Stillwater’s gold operations from the evening shift on Wednesday after failing to reach agreement with management over pay. NUM acting general secretary William Mabapa said his union and Amcu served Sibanye with a 48-hour strike notice on Monday evening. “The strike starts [on Wednesday] night. All workers of Sibanye-Stillwater [gold operations] will be affected because Sibanye will implement a lockout,” Mabapa said. Sibanye’s gold operations — including Kloof, Driefontein, Beatrix and Cook, as well as support service operations — employ about 31,000 workers. NUM and Amcu are demanding a pay increase of R1,000 a month, or 6%, for each of the next three years (2022 to 2024). Solidarity has accepted the company’s revised wage and will not take part in the strike. Uasa’s Franz Stehring indicated on Tuesday that the union was still “talking with Sibanye management” and was not party to the strike notice. “We are still talking and the CCMA is facilitating our talks,” he said. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive. Read too the report at Moneyweb, which details Sibanye’s final offer Sibanye’s Froneman stands resolute as Amcu, NUM submit strike notice Mining Weekly reports that ahead of the planned start of strike action by many employees of Sibanye-Stillwater’s SA gold mines from the evening shift on Wednesday, CEO Neal Froneman has remained steadfast, stating that the offer made on 4 February in an attempt to reach agreement on wages was “final”. “Wage increases that are higher than inflation are not sustainable and cannot be considered,” he stated on Tuesday. Froneman insisted the offer was fair in that it took into consideration current inflationary living costs, and considered the sustainability of the company’s SA gold operations and the interests of all stakeholders for the long term. Wage negotiations between the company and workers represented by four unions – Amcu, NUM, Solidarity and Uasa – have been ongoing since June last year. Solidarity has accepted Sibanye’s latest wage offer, but Amcu and the NUM intend to proceed with strike action. Under the terms of the latest offer, Category 4 to 8 employees would receive an average increase of 6% in the first year, 5.7% in the second year, and then 5.4% in the third year of the agreement. This would amount to employees receiving a monthly pay rise each year of R800 which would include a R100 increase in the living out allowance each year. So-called ‘miners, artisans and officials’ would receive a flat increase of 5% year-on-year for the three years. Read the full original of the report in the above regard at Mining Weekly SA mines are already reducing foreign labour, says Minerals Council SA Fin24 reports that the Minerals Council SA (MCSA) said on Monday that mining companies operating in SA have already undertaken to reduce their component of foreign labour in the light of mounting pressure from surrounding communities. Companies that are members of the MCSA (previously called the Chamber of Mines) employ around 10% of foreign workers, which is regulated by the SADC Protocol on Employment and Labour and by bilateral agreements between SA and the affected countries. With growing pressure to reduce the participation of foreigners in the labour market, the Department of Employment and Labour (DEL) said last week that it wanted to revisit the bilateral arrangements, some of which dated back to the apartheid era. It indicated that in terms of a new labour migration policy proposal published last week for comment, mining houses would need to make a compelling case – just as any employer would have to – as to why foreign labour was still required. The MCSA agreed that some of the bilateral agreements were outdated and should be updated and brought in line with the SADC protocol. It also said that it would engage with the DEL about the proposed labour migration regime. "The Minerals Council will explore all avenues to ensure that a fair balance is struck between the employment of foreign nationals, employment of South African citizens and the observance of International instruments, the SADC Protocol and bilateral agreements," it indicated. Read the full original of the report in the above regard by Carol Paton at Fin24 (subscriber access only) Other general posting(s) relating to mining
Bus drivers strike at Gautrain depots, but rail service still operational SowetanLive reported on Tuesday that Gauteng’s rapid rail service was operating, but its bus link service had been suspended due to protest action by drivers. The Gautrain said: “Please note there is no bus service at all stations, including Park Station, due to intimidation by bus drivers who are protesting. The train service is operating according to schedule. The midi-bus service is also operating as usual. We apologise for the inconvenience caused.” National Union of Metalworkers of SA (Numsa) national motor organiser Mduduzi Nkosi told Eyewitness News the protest action stemmed from an internal conflict. “We know negotiations are deadlocked, but the issue is depot based,” he said. Read the original of the short report in the above regard by Alaister Russell at SowetanLive
Eastern Cape correctional centre gate guards attacked, robbed on prison grounds News24 reports that Eastern Cape police are searching for seven armed men who attacked and robbed prison guards at the gates of Mdantsane Correctional Centre in the Eastern Cape last week. A 45-year-old guard, who was part of an undisclosed number of officers who came under attack, sustained multiple gunshot wounds. The officer is reportedly recovering well in hospital. Police spokesperson, Warrant Officer Majola Nkohli, confirmed: “It is alleged that on the said date (28 February) at about 20:30, seven armed men accosted gate guards at the Fort Jackson correctional facility in Mdantsane and robbed them of their cellphones.” The robbers fled the scene and were still at large, said Nkohli. Police said they were investigating a case of attempted murder and robbery with aggravating circumstances. Read the full original of the report in the above regard by Malibongwe Dayimani and Nicole McCain at News24 Investigation finds cause of fire at Rheinmetall Denel Munition to have been electrical fault in light fixture Cape Argus reports that months after a fire broke out in a building at the Rheinmetall Denel Munition (RDM) plant in Somerset West, an internal investigation has finally found the cause. The fire in October last year was found to have been caused by an electrical fault in the light fixture of the building. There were no injuries when the fire broke out. The building where the fire originated stored a paste used in RDM’s manufacturing process. The evidence showed that an electrical fault in a light fitting started the fire, leading to melted material from the light fitting falling down on to the stored material, causing it to ignite. The investigation also found no explosion. Instead, the flashover as a result of the two materials coming into contact with each other caused pressure to build up in the building, which then saw the roof dislodged, while leaving the walls intact. RDM CEO Jan-Patrick Helmsen said the internal investigation found that the emergency response had been immediately activated and all systems had been in place to contain the fire. He said RDM would do more to prevent another such incident happening. Read the full original of the report in the above regard by Matthew Petersen at Cape Argus
Government Employee Pension Fund (GEPF) grants its pensioners a 5.5% increase from 1 April 2022 Moneyweb reports that the Government Employee Pension Fund (GEPF) has announced that its pensioners will receive an annual pension increase of 5.5% from 1 April 2020. According to the fund, it instituted the increase to enable its beneficiaries to keep up with rising inflationary rates. “This pension increase is based on the 5.5% inflation rate for the 12 months ending 30 November 2021, thus making the increase equal to 100% of the consumer price index (CPI) and higher than the 75% of consumer price index (CPI) provided in terms of GEP law and rules,” the GEPF indicated in a statement. In formulating the pension increase, the fund said it considered the following: the investment returns earned over the year; the level of inflation over the same period; how both related to the assumptions adopted in the statutory valuations; and how the increase would impact the financial position of the fund. Read the full original of the report in the above regard by Palesa Mofokeng at Moneyweb
Sanco vows to make Joburg mayor’s job untenable as 130 city workers face the chop TimesLive reports that the SA National Civic Organisation (Sanco) has vowed that Joburg executive mayor Mpho Phalatse won’t find peace until she reverses a decision to review the permanent employment of 130 city employees. The ANC-aligned Sanco has accused Phalatse of embarking on an offensive to purge black workers regarded as having ANC links. This after it became apparent that the majority of employees facing the chop had their contracts turned from time-bound contracts to permanent ones under an ANC administration last year. Some are known to be active ANC members and supporters who have done work for the party. The city declared the appointments of the 130 as irregular and has asked them to make representations as to why their employment should not be terminated. Some of the employees claimed to have already been barred from entering city premises and had their work-sponsored electronic gadgets confiscated. According to Sanco, the move by the city is nothing but a “purge of black professionals” whom it claims were hired permanently on merit, not because of political allegiance. Sanco said it would embark on “mass action” on one of the city’ busiest roads — Beyers Naudé — on 25 March to put pressure on Phalatse by bringing the city to a standstill. Should this not yield the intended objectives, said Sanco leaders, Phalatse will have Sanco members occupying every venue where she is due to make an address. The SA Municipal Workers’ Union (Samwu) also believes that the move by the city is illegal and should be reversed. It has urged the affected employees to seek refuge in the union, which was positioned to fight on their behalf. Read the full original of the report in the above regard by Mawande AmaShabalala at TimesLive. Read too, Shutdown of operations in the City of Joburg on the cards, vows SA National Civic Organisation, at IOL
Western Cape Metrorail suspends all train services due to power issues EWN reports that Metrorail train services in the Western Cape have been suspended due to the blackouts. The suspension is affecting all lines in the province as the Eskom Tafel Bay Substation, which feeds the rail’s substations, has failed to come back to service. Metrorail's Nana Zenani said: “We, unfortunately, cannot operate our trains as our substations are not getting power from Eskom due to its malfunction.” She indicated that Metrorail was left with no other alternative but to suspend its services while Eskom fixed the problem. “We do apologise to our customers for this unfortunate inconvenience. We will keep them informed of all changes as they happen because we are quite anxious to get our service back up and running.” Read the original of the short report in the above regard by Kaylynn Palm at EWN. Lees ook, WK-treine staan stil weens kragfout, by Maroela Media
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