In our Tuesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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PSA and Nehawu to embark on ‘full-blown strike’ from 25 May for higher wages at Sars BL Premium reports that revenue collection at the country’s ports of entry and in various offices internally is set to be disrupted when the two largest unions at the SA Revenue Service (Sars) down tools next week in support of their demand for higher wages. The Public Servants Association (PSA) and the National Education, Health and Allied Workers’ Union (Nehawu) said their members would embark on a “full-blown strike” for above-inflation wages at the tax collection agency. The two unions represent the majority of the estimated 12,400 employees at Sars. Nehawu’s Lwazi Nkolonzi said the Cosatu affiliate was demanding an 11.5% wage increase, while the employer had offered a 0% increase. The PSA is demanding consumer price inflation “as of October 2021 [5%] plus 7% for all employees across the board”, which translates into a 12% wage demand. The PSA is also demanding a R2,000 “token of appreciation” for its members, and bursaries for dependents of employees earning R700,000 per annum or below. The PSA’s Reuben Maleka said on Monday it had been resolved that the “full-blown strike” would start on 25 May, the same day as Nehawu’s action. However, the PSA remained committed to engage should Sars place a better offer on the table. “Sars’ ridiculous offer of a 0% wage increase throughout the negotiations when the prices of basic services, food, fuel and electricity continue to increase at inflationary rates is an insult to our members. How are they expected to make ends meets in such an environment?” Fedusa general secretary Riefdah Ajam said, calling on finance minister Enoch Godongwana to intervene. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only). Read too, Second union announces plans to strike at SARS, at Fin24
NUM and Numsa demand pay hike of 15% at struggling Eskom BL Premium reports that the National Union of Mineworkers (NUM) and the National Union of Metalworkers of SA (Numsa) are demanding above-inflation wage hikes at state-owned power utility Eskom. They say workers at state-owned enterprises have not received meaningful increases in two years, resulting in “very low” staff morale. The two unions, which represent most of Eskom’s estimated 46,000 workers, are demanding a one-year, 15% across-the-board wage hike, a housing allowance of R1,600, and for the “apartheid wage gap” to be closed. Tommy Wedderspoon of trade union Solidarity said they were demanding consumer price index (CPI) plus 2.5% (8.4%). Numsa’s and NUM’s wage demands are in line with the above-inflation increases public servants, mineworkers and steel sector workers are demanding. Eskom CEO Andre de Ruyter said on Monday that Eskom was not in a position to grant a double-digit wage increase. “[Eskom] is still in a loss-making situation, I am not sure where Numsa gets the idea that we have lots of cash available,” he said at a briefing. The parties met at the Eskom central bargaining forum (CBF) last week for a second round of talks, but according to the unions the power utility’s management did not respond to their demands for higher wages for the 2022/2023 financial year. In a statement on Monday, Numsa general secretary Irvin Jim said Eskom’s management had provided no justification for “claiming they cannot afford our demands”. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only) Eskom doesn't expect any unlawful strikes as wage talks kick into gear News24Wire reports that according to Eskom CEO André de Ruyter, the state-owned power utility does not anticipate any unlawful strikes or disruptions at its operations in the course of current wage negotiations with unions. The National Union of Metalworkers of SA (Numsa) came out swinging at Eskom management on Monday for not accepting its demands for a 15% wage increase across the board. It said that De Ruyter was undermining the Eskom Central Bargaining Forum by engaging with workers directly and alleged that the power utility was perpetuating a "false narrative" that it could not afford the increases, when it was spending billions burning diesel. "It is glaringly obvious that the wage bill is not responsible for Eskom's poor financial position. Why are workers being punished for bloated procurement expenditure?" Numsa asked. De Ruyter said on Monday that Eskom was still "in a loss-making situation" even though its financial position had improved somewhat. "I'm not sure where the idea comes from that there is an excess of cash available. That is certainly not the case. We are unfortunately not in a position where we can respond by acceding to labour demands for a double-digit increase given the constrained financial position Eskom finds itself in. We can rely on our employees to support us, and we don't anticipate any unlawful industrial action," commented De Ruyter. Meantime, there is currently a dispute between Eskom and Numsa at the CCMA over the 1.5% increase implement by the utility in 2021. "The 1.5% was implemented unilaterally, as is Eskom's right. Unions have taken us on review on that, as is their right,” De Ruyter noted. He explained that he did communicate with employees of Eskom and “I do believe it is my duty to do so," as he wanted to counter "false narratives" that crept in when messages to workers went through intermediaries. Read the full original of the report in the above regard at Engineering News
Two security guards gunned down in Durban while guarding workers repairing electricity fault The Witness reports that two security guards were shot dead while guarding employees who were repairing an electricity fault on Amanzimtoti Road, KwaMashu, in Durban on Monday morning. One security guard was critically injured and transported to hospital. According to the KZN VIP Protection Services, the three guards, from Imvula Security, were shot while guarding employees believed to be from eThekwini Municipality’s electricity department. KZN VIP Protection Services’ Gareth Naidoo said a group of men robbed the security officers of their firearms and fled the scene. The electricity department employees were unharmed. Read the original of the short report in the above regard compiled by Sakhiseni Nxumalo at News24 Other internet posting(s) in this news category
CCMA rules an employee can be retrenched with zero severance for refusing vaccination Business Insider SA reports that the CCMA has ruled that under the right circumstances someone who refused a Covid-19 vaccine could be fairly retrenched without being paid any severance. Baroque Medical, a company that sells specialised medical products, implemented a policy of mandatory Covid-19 vaccinations. An employee refused to comply, citing "medical, personal and religious reasons". She did not substantiate the medical objection, and the CCMA rejected her personal and religious reasons. The CCMA accepted the company's basis for demanding vaccinations from staff, saying it dealt with hospitals and medical practitioners. The company’s risk assessment made it apparent that a mandatory vaccination policy had to be imposed. The employee who refused to be vaccinated did not challenge that policy, or the procedural fairness of her dismissal. But the process had not been substantially fair, she said, because alternatives to retrenchment had not been properly considered. An employee did not have to be offered a different post altogether before being retrenched, the CCMA said, but could by long-standing precedent be offered the same position under different conditions. In this case, the company offered the employee her job with a change of conditions, namely that she had to be vaccinated. She refused, without good reason. And that meant she fell under retrenchment rules for those who unreasonably refused alternative employment – and so were not entitled to severance pay. Read the full original of the report in the above regard compiled by Phillip de Wet at Business Insider SA Other internet posting(s) in this news category
Ubank, which serves rural and mining communities, still open for business after being placed in curatorship BL Premium reports that the regulator of financial services, the Prudential Authority (PA), has announced that Ubank has been placed under curatorship for failing to maintain adequate capital levels, as required by the Banks Act. Ubank, which was formerly known as Teba Bank and traditionally serves customers in rural areas and mining communities, has a capital adequacy ratio of about 3% compared with an industry average in SA of just more than 15%, Reserve Bank governor Leseta Kganyago indicated on Monday. KPMG has been appointed curator under the supervision of the PA, with the firm’s representative during the process being Zola Beseti. Retail depositors, who represent about 98% of Ubank’s total liabilities, will continue to have access to their money and banking services. Ubank will also continue to operate during the curatorship process, though the curator will have to make a decision on whether it will continue granting loans. Ubank has been providing basic financial services to mineworkers since the mid-1970s, a time when SA’s mainstream financial institutions largely ignored that segment of the market. Ubank’s total assets as of February 2022 were estimated at R5.23bn, while its net asset value was about R208m. Kganyago said the length of the curatorship process would depend on “how deep the hole” at Ubank, which has more than 4.7-million accounts, was. Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (subscriber access only) Mining industry counts the human cost of Covid-19 over past two years and work-related fatalities in 2021 Moneyweb reports that Covid-19 claimed the lives of 749 miners over the last two years, with 74 more losing their lives in work-related fatalities in 2021. This was told to delegates at the Mining Indaba in Cape Town last week by Roger Baxter, CEO of the Minerals Council SA (MCSA), which was previously known as the Chamber of Mines. Mine fatalities reached their lowest level in three decades in 2019 when the number dropped to 51 for the year. That statistic promptly reversed course to claim 60 lives in 2020 and 74 in 2021. Baxter said there appeared to be a variety of reasons behind the deteriorating mine fatality performance, with work fatigue being a key culprit. Figures from the Department of Mineral Resources and Energy showed “Falls of ground” as the leading cause of mine deaths until 2011, when it was brought under control. But, some 30% of mine fatalities were from fall of ground (FoG) incidents in 2020, prompting the MCSA’s Zero Harm Forum to find out why this was. It found an exodus of experienced rock engineers from SA, with many others reaching retirement age, with little or no progress on execution of rock-related projects currently in Mine Health and Safety Council (MHSC) research programme and projects. Another reason for rock-related incidents was an attitude of getting the job done, often at the cost of safety. Transport-related accidents were another leading cause of fatalities. The Covid fatality rate for the sector as a whole over the past two years was 1.18%, which was lower than the general population. More than 70% of mine workers are vaccinated against Covid, about double the level for the general population. Read the full original of the report in the above regard by Ciaran Ryan at Moneyweb Tendele Coal argues 1,500 jobs at risk if Somkhele mine not allowed to proceed Miningmx reports that according to Petmin subsidiary Tendele Coal, 1,500 employees will lose their jobs unless Department of Mineral Resources and Energy (DMRE) Minister Gwede Mantashe approves a mining licence and environmental management permit for the firm’s Somkhele anthracite mine. The mine’s permits are in question following objections by environmental and community groups – led by the Mfolozi Community Environmental Justice Organization (MCEJO) – to a mine extension that cuts close to the iMfolozi river in KwaZulu-Natal. The legal argument is that Tendele Coal’s proposed expansion has not been correctly permitted in terms of the National Environment Management Act. If the permits are granted, Tendele Coal will proceed with a 10-year mine expansion which it estimates will generate R4.7bn in community benefits over that period. Closure will result in 15,000 livelihoods being negatively affected, said Petmin. The mine, which employs 1,500 people directly and indirectly, stands to close at the end of June when its existing resources have been depleted. In addition to environmental concerns related to Somkhele’s expansion, non-governmental organisations have also argued that Tendele must sufficiently compensate residents of areas that will be affected by the expansion. Earlier this month, the Pretoria High Court sent the matter back to the DMRE for a pragmatic response that would guide the court. Read the full original of the report in the above regard by David McKay at Miningmx
Huge petrol price increase of up to R3.50 a litre on the cards in June BusinessLive writes that things are looking unbelievably bleak for SA motorists as June is set to usher in a petrol price hike of huge proportions. The government’s suspension of the general fuel levy will come to an end, meaning an automatic increase of R1.50 per litre. With a bullish dollar, floundering rand and surging international crude oil prices, South Africans could see the price of petrol rise by up to R3.50 a litre come month end. Economist Dawie Roodt indicated on Monday: “Based on information, about two days ago the petrol price would have increased by nearly R2 a litre in any event. We are talking about R2 plus R1.50, bringing it to R3.50. That is the increase likely to be seen per litre in June.” This means the country’s already cash-strapped motorists could be coughing up in the region of R25.50 a litre depending on the grade and region. Read the original of the short report in the above regard by Thomas Falkiner at BusinessLive. Lees ook, Nog ʼn petrolskok wag, by Maroela Media
Victory for former Gauteng Hawks head General Shadrack Sibiya as Labour Appeal Court orders police to reinstate him News24 reports that General Shadrack Sibiya, the former Gauteng Hawks head who was dismissed in 2015, has won his appeal bid to be reinstated. The Labour Appeal Court (LAC) also found that Sibiya was entitled to back pay of 14 months and eight days, which is the period he was unemployed after his dismissal. In his judgment, Judge Phillip Coppin ordered the police to reinstate Sibiya as a major-general, either in the position he occupied at his dismissal or in another post the national commissioner considered appropriate at the same rank and level. Sibiya was fired in 2015 by then-acting head of the Hawks, Berning Ntlemeza, following a disciplinary inquiry into his alleged role in the illegal deportation of five Zimbabweans in 2010. In 2020, the Labour Court ruled his dismissal was procedurally and substantially unfair. It ordered the police to pay Sibiya a 12-month salary as compensation. The court declined to award Sibiya the remedy of reinstatement, which prompted him to approach the LAC seeking reinstatement. His legal representatives argued before the LAC that the Labour Court had erred in not reinstating Sibiya in circumstances where it had "vindicated him and had found that he was innocent and had been victimised by officials who lacked integrity". In his judgment, Coppin said there was no reason why Sibiya's reinstatement should not have been ordered. The judge added that the fact the position he occupied at the time of his dismissal had been filled was no reason for refusing him reinstatement into the police. Coppin added that the fact that time had elapsed from the date of dismissal should not constitute a bar to Sibiya’s reinstatement. Read the full original of the report in the above regard by Jeanette Chabalala at News24 Joburg wants assets returned by 130 former workers, who vow to exhaust all avenues for reinstatement SowetanLive reports that the City of Joburg has ordered 130 employees whose contracts terminated to return cellphones and laptops issued by the City. On Friday, Joburg acting group executive director for corporate and shared services Hennie Labuschagne wrote to the affected former employees demanding that they should return the tools of trade by Monday. The 130 were initially employed as political support staff in the city but their contracts were later converted by the previous administration, which was led by the ANC, so that they became permanent employees. Contracts for political staff are usually attached to the term of office of the political head and generally are not longer than five years. On 25 February, the multi-party coalition government led by the DA rescinded the conversion of the contracts from permanent back to fixed-term contracts. According to their original agreements, the contracts expired at the end of April. In his letter of demand, Labuschagne indicated that the employees could be financially liable should they fail to return the devices. He also wrote that the city could report the former employees to authorities for being in possession of the city’s property. But, one former employee said a legal process was still underway, adding that it was premature for the city to demand the devices be returned. In April, Bargaining Council commissioner Joseph Mphaphuli dismissed an application for alleged unfair dismissal. According to Mphaphuli, the contracts of the City of Joburg 130 were to expire at the end of April, thus ruling out the possibility that they were unfairly dismissed. Read the full original of the report in the above regard by Nomazima Nkosi at SowetanLive Other internet posting(s) in this news category
While sharply rebuking Prasa management, Mbalula promises that Cape Town’s Central Line will be functional by December GroundUp reports that Minister of Transport Fikile Mbalula has promised that Cape Town’s Central railway line will be functional by December. During an oversight visit on Friday, Mbalula said in July there would be a limited service from Cape Town to Langa, Pinelands and Bonteheuwel. The line that connects at Bonteheuwel to Khayelitsha, Nyanga, Philippi and Mitchells Plain would open in December, he stated. The Central Line, which is the busiest line serving the poorest communities, including Khayelitsha, Mitchells Plain, Nyanga and Bonteheuwel, has been suspended, except for a brief interval, since 2018. Since then families have set up informal settlements on the track in Langa, Philippi and Khayelitsha. Mbalula sharply rebuked management of the Passenger Rail Agency of SA (Prasa) for problems with the line. “Our biggest problem here is not only people who built shacks on the railway tracks, our biggest problem here is management negligence,” he said. “What are you running here, because you are employed to run trains?” he asked of Prasa acting group CEO David Mphelo, regional manager Kaparo Molefi and others. Mbalula went on to say: “We can no longer allow people to earn big salaries and all that they know is to give inadequate answers and yet they are managers. You can’t be a manager, managing a railway system and you don’t have a plan. Every day you come to work, what do you say you are doing when everything is just falling apart?” Mphelo said that Parow station, on the Northern Line, would start operating in December, but no date had been set for the return of the service as far as Wellington. Read the full original of the report in the above regard by Tariro Washinyira at GroundUp
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