In our Friday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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In biggest increase since 2016, Reserve Bank raises repo rate to 4.75%, affirming its inflation targeting mandate BL Premium reports that following a three-day meeting and as predicted by economists, the SA Reserve Bank’s (SARB’s) monetary policy committee (MPC) on Thursday lifted the repo rate by 50 basis points. This was the biggest increase in the rate in more than six years, confirming the Bank’s hawkish stance on inflation as spiralling fuel and food costs pushed price increases closer to the upper end of its target range. The five members of the MPC voted 4-1 for the move, which takes the repo rate to 4.75% – its highest level since March 2020, just as the Covid-19 pandemic struck SA. Bank governor Lesetja Kganyago said the MPC’s decision was to preserve credibility and avoid a de-anchoring of inflation expectations. After substantially reducing the repo rate from 6.25% to 3.50% during the early months of the pandemic to support the flailing economy, the SARB started hiking the repo rate in November 2021. The Bank revised its headline consumer inflation forecast slightly to 5.9% for 2022 (from 5.8%). Inflation for 2023 and 2024 is expected to average 5% and 4.7%, respectively. The MPC said it expected the economy to grow by 1.7% in 2022, compared with 2% at its March meeting. Kganyago said this drop was partly due to the floods that ravaged KwaZulu-Natal recently and electricity supply constraints. Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only). See too, Interest rates increased by biggest margin since 2016, at Engineering News. En ook, Grootste rentekoersstyging in jare aangekondig, by Maroela Media As motorists brace for another sharp petrol price increase in June, Outa urges government to extend fuel levy relief BusinessLive reports that as consumers brace for another sharp increase in the petrol price at the beginning of June, the Organisation Undoing Tax Abuse (Outa) has called on Finance Minister Enoch Godongwana to extend the R1.50/l reduction of the general fuel levy, which expires on 31 May. The government announced the 40% cut in the fuel levy in April as part of a R6bn package to ease the burden on motorists. “With this temporary fuel levy reduction of R1.50 intended to be reversed on May 31, we have asked the finance minister to consider the extension of this reprieve, failing which the price of petrol and diesel will increase to over R25 per litre in the coming months,” said Outa CEO Wayne Duvenage. Extending the reduced levy would affect National Treasury’s collections by about R2.8bn a month, but the economy would be significantly worse off with further petrol price hikes, Duvenhage said. Outa alternatively suggested that Godongwana should consider phasing in the full levy over three months at 50c a month. “The high fuel price has an ongoing negative effect on the economy, affecting a wide range of issues such as food prices and commuter costs,” Duvenage pointed out. Read the full original of the report in the above regard by Denis Droppa at BusinessLive Other internet posting(s) in this news category
Some 3,300 public sector teachers, representing 1% of the workforce, died from Covid-19 as at December 2021 The Citizen reports that Department of Basic Education (DBE) Minister Angie Motshekga has revealed that as at 31 December 2021 the sector had lost 3,300 teachers in the public service to Covid-19. According to Motshekga, this represented almost 1% of the sector’s workforce. This was reported during the DBE adjusted budget vote speech for the 2022/23 financial year on Thursday, where Motshekga outlined the impact Covid-19 has had on the sector. “One of the traumas suffered by children has been to lose their parents, care-givers, and teachers to Covid-19. The DBE’s ongoing monitoring through the PERSAL’s data, shows that as on 31 December 2021, around 3,300 teachers in just the public service, had succumbed to Covid-19 since 2020. This almost represents one per cent of our workforce. We continue to pay tribute to the educators, as well as our education executive and management leaders, who lost their lives to Covid-19,” Motshekga stated. The sector created 596,000 job opportunities for young people through the Presidential Youth Employment Initiative, with a total budget allocation of R13 billion, since 1 December 2020. “This contributed significantly to the government’s role of alleviating poverty, redressing the past imbalances, protecting livelihoods, especially among the most vulnerable people, especially among the youth, women and the people with disabilities,” Motshekga indicated. Read the full original of the report in the above regard at The Citizen Other internet posting(s) in this news category
Gauteng Cosatu rallies behind Nehawu’s action at Unisa EWN reports that the Congress of South African Trade Unions (Cosatu) in Gauteng has thrown its weight behind protesting workers affiliated to National Education, Health and Allied Workers' Union (Nehawu) at the University of SA (Unisa) over the dismissal of five employees who are also the union’s shop stewards. The demonstrations have entered a fourth week with the union accusing the university’s vice-chancellor Puleng Lenkabula of not following procedures when terminating the staffers’ contracts. Last month several graduations at the institution were brought to an abrupt halt by disgruntled workers who hijacked proceedings at the ZK Matthews Hall in Pretoria over allegations that Lenkabula had undermined last year’s collective bargaining by awarding a handful of staff members salary increases. Cosatu’s Gauteng secretary Louisa Modikwe said: “We continue to call for the lunchtime pickets and demonstration at the Department of Higher Education and Training including TVET colleges and universities in Tshwane. And should this abnormal behaviour of the vice-chancellor and the university of remaining opposed to constructive engagement we will definitely call for secondary strike.” Read the original of the short report in the above regard by Masechaba Sefularo at EWN
Mantashe warns strike-hit Sibanye-Stillwater it may lose its gold mining right BL Premium reports that in extraordinary remarks in parliament on Thursday, Department of Mineral Resources & Energy (DMRE) Minister Gwede Mantashe threatened Sibanye-Stillwater with the removal of its mining right because the company — in its 10th week of a bitter and prolonged strike in its gold division — is no longer engaged in gold-mining activities. The minister threatened to take action against Sibanye in terms of section 47 of the Mineral & Petroleum Resources Development Act. The act requires the holder of a mining right to actively conduct mining, while section 47 empowers the minister to suspend or cancel a mining right if the holder fails to fulfil its obligations in terms of the right, among other things. Before acting in this way, the rights holder has to be given the opportunity to make representations as to why the right should not be revoked. In addition, the principles of administrative justice have to apply. In his remarks. Mantashe referred to a comment by Sibanye CEO Neal Froneman that the company had enough money to run the strike for years. “In other words, the message he is sending to us is that he is not ready to actually mine gold. He has enough money to fight a strike and stop production for years and years. And that actually sends us a message that says the department, relevant officials look into the possibility of the application of section 47 … so that we can give that property to companies that want to mine gold,” Mantashe said. Sibanye’s James Wellsted said the fact that the company was in a labour dispute was not an indication that it did not want to mine. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only). Read too, Mantashe hints at revoking Sibanye's mining rights as strike drags on, at Fin24 Minerals Council, which jointly administers Ubank with the NUM, backs Reserve Bank’s decision to place the institution under curatorship Engineering News reports that the Minerals Council SA (MCSA), which was previously known as the Chamber of Mines, says it supports the action taken by the SA Reserve Bank‘s (SARB’s) Prudential Authority to place Ubank under curatorship. It says that will clear the way to stabilise Ubank, protect depositors and enable the attraction of a long-term investor for the bank. The Teba Fund Trust is the 100% owner of Ubank. The MCSA and the National Union of Mineworkers (NUM) are the joint administrators of the fund, and each appoints three trustees to the fund. Neither party has any holding or financial interest in Ubank. The MCSA noted that over the past few years, the Prudential Authority had encouraged the trust to find a suitable long-term investor to shore up the tier-one capital of Ubank. It said several unsuccessful attempts were made by the trust and board to secure such an investor. “At the same time, a relatively narrow client base and the significant impact of Covid-19 on Ubank contributed to a deteriorating financial situation, with the capital adequacy ratio (CAR) falling below the required regulatory CAR,” the MCSA pointed out. It emphasised that Ubank continued to operate on a liquid basis, and had sufficient reserves to meet all liabilities. Read the full original of the report in the above regard at Engineering News
KZN floods led to 30,000 job losses or work disruptions, says premier Sihle Zikalala TimesLive reports that according to KwaZulu-Natal (KZN) premier Sihle Zikalala about, 30,000 employees across the manufacturing industry are out of work because of last month’s floods that killed 448 people. “This means that employees could be without pay for about three months. If you say jobs we mean that they are people who have not been able to go back to work as their companies have not yet reopened,” Zikalala indicated. He was briefing the media on the latest developments as the province continues with mop-up operations. One of the hardest hit manufacturing plants was car manufacturer Toyota. Zikalala reported that the damage to the Toyota plant in Isipingo, south of Durban, had resulted in operations halting. He said given the severity of the damage at the Toyota plant, they were encouraged by the commitment of the global motoring giant and other business to rebuild. Among government recovery priorities would be working with the private sector. “It’s going to be a long road to full recovery,” Zikalala warned. He advised that the provincial government had opened a dedicated donations account, which had amassed more than R125,000 by 15 May. An amount of R100,000 would be channelled to the health department, while the balance would go towards rebuilding. Read the full original of the report in the above regard by Mfundo Mkhize at TimesLive Other internet posting(s) in this news category
Desperate Denel staff who haven’t been paid in two years, cancel health insurance, stop school fees in bid to make ends meet Fin24 reports that employees at struggling arms manufacturer Denel have been forced to cancel their private medical aid and are struggling to pay school fees, according to new court filings. This week, 42 current and former Denel employees won an urgent interdict to compel the embattled defence group to pay them a combined R13.2 million in back pay. The loss-making state-owned arms company has been unable to pay its 2,800 employees their full salaries for the past two years. Staff are paid a percentage of their full salaries every month, in accordance with Denel's cash flow. Some months they are paid nothing at all. It is still unclear when or how Denel intends to pay employees what they are owed, although the group has said it plans to sell over R1 billion worth of "non-core" assets to raise funds. While it received a R3 billion injection from the national government in the recent budget, this has been ring-fenced for interest payments. The drastic reduction in take-home pay has forced many Denel employees to stop paying medical aid contributions and fall behind on school fees. Some employees have had their houses repossessed, while others have sold their properties to move in with family members. Many have run up hefty credit card bills which they are unable to pay off. Advocate Michael Matlapeng, who represented the 42 employees who won their case this week, said the effects of Denel holding back unpaid wages have been "crippling" for his clients. The cash crunch has been particularly hard for partners who are both employed at the arms group. Read the full original of the report in the above regard by Jan Cronje at Fin24 (subscriber access only)
Home Affairs wants to be classified as a ‘security department’ so that Saturday will become a regular work day without overtime pay TimesLive reports that the Department of Home Affairs (DHA) wants to be classified as a security department so it can open on Saturdays without having to pay overtime. The department has submitted a bill to the cabinet that would change the nature of the DHA to a security department, entitling it to be open on weekends. In a parliamentary response to a question on why the department did not operate on Saturdays, DHA Minister Aaron Motsoaledi said the department desperately wanted its offices open on Saturdays, however, a stalemate had been reached with labour unions. “The type of services rendered by home affairs offices fall in the same category as services rendered by police services and clinics. Unfortunately, the unions took the matter to the Public Service Co-ordinating Bargaining Council (PSCBC) and made it a subject of negotiations, [and] it ended in a stalemate,” he reported. Motsoaledi went on to say: “We wanted Saturday work done through the shift system in the same way police and nurses do. However, the unions insist on deploying the same people who work during the week hours, but paying them overtime. Should we agree, the department will be forced into paying overtime for life/permanent overtime and this is untenable.” Motsoaledi said not operating on Saturdays had negatively affected his department’s services, which ironically “affect members of unions the most.” Read the full original of the report in the above regard by Nivashni Nair at BusinessLive
Public sector unions could face backlash from members over their approval of NHI Bill, says researcher BL Premium reports that delegates to the annual Board of Healthcare Funders (BHF) conference heard on Thursday that public sector unions that have voiced support for the National Health Insurance (NHI) Bill are poised for conflict with their members. This was because they have in effect given the green light for a reduction in employee benefits, Vishal Brijlal of the Clinton Health Access Initiative claimed. The NHI bill, currently before parliament, is the government’s first enabling piece of legislation for its plans for universal health coverage, which aims to provide services that are free at the point of delivery for all citizens. The bill proposes a central NHI Fund that will buy services on behalf of patients, financed by reallocating medical scheme tax credits, general tax revenue, and a new payroll tax and surcharge on personal income tax. All of these measures have a direct impact on public servants, the majority of whom belong to medical schemes subsidised by the state. “Organised labour has been vociferously against increases in VAT, yet they are saying they support increased taxation to fund NHI,” Brijlal pointed out. Presenting an analysis of the 117 oral submissions made to parliament’s portfolio committee on health in the past year, Brijlal cited the submission of the National Education, Health and Allied Workers’ Union (Nehawu) as an example. Nehawu has said the government should scrap the tax rebate for medical scheme members, and redirect the money to the NHI fund, according to Brijlal. But, Cosatu’s Matthew Parks said Brijlal had misunderstood the submissions of the trade union federation and its affiliates. “We know there would have to be compromises. Whenever you are dealing with human beings there are competing interests. The whole point is how to balance them,” he said. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only) Stalling by medical scheme regulator ‘robbing millions from low-income households of private healthcare’ BL Premium reports that up to 20-million South Africans from low-income households could afford basic private healthcare services if the medical schemes regulator stopped stalling on plans for cheap, pared- down benefit options, the annual Board of Healthcare Funders conference was told on Thursday. The Council for Medical Schemes (CMS) is overseeing the development of a serially delayed framework for low-cost benefit options (LCBO), that will allow schemes to offer packages that are exempted from provisions in the Medical Schemes Act that require cover for a much broader basket of care, known as prescribed minimum benefits. It has been prevaricating over the LCBO framework since 2015, leaving millions of people from poor households paying out of pocket for private primary healthcare services, such as GP consultations and dentistry, because they cannot afford full medical scheme cover, said Insight Actuaries & Consultants joint-CEO Christoff Raath. While 15% of the population belongs to a medical scheme, the 2020 general household survey found 28.2% of the population turned first to a private healthcare provider when they needed care. “These are the families that can least afford R400 or R500 to go to a doctor. The question we have to ask is why is nothing being done about it?” Raath queried. The advisory committee established by the CMS in 2020 to finalise the LCBO framework had completed its technical work and there was no need for further consultation, he said. An estimated 10-million people from low-income households could be covered by low-cost benefit options, which had been priced at between R124 and R166 a month. If the Treasury scrapped medical scheme credits and used the money to provide a R100 monthly grant towards low-cost benefit cover, the figure could rise to 20-million people, or a third of the population. Speculation that the ANC had put pressure on the CMS to put the brakes on the LCBO framework because it might pose an impediment to National Health Insurance (NHI) would be a “moral tragedy” if true, Raath said. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only)
Two security guards responsible for guarding clinics in Mpumalanga arrested for stealing and selling medication News24 reports that two security guards who were responsible for guarding various clinics in the Gert Sibande District Municipality have been arrested for allegedly stealing and selling medication. Khethiwe Moloi and Dumisani Aaron Mahlasela appeared in the Evander Magistrate's Court on Wednesday and were each released on R3,000 bail. They were arrested on Tuesday after the Mpumalanga Hawks received information that a security guard in the area was selling medication. When Moloi's house was searched, officials allegedly found various types of medication and surgical gloves. Further investigation led the team to Mahlasela’s house in Emalahleni. During the search, different medications that require prescriptions were found and confiscated. He was also arrested. The medication included contraceptives, flu medication and painkillers. The two guards have been charged with the contravention of the Medical Act. The case was postponed to 14 July for further investigation. Read the full original of the report in the above regard by Iavan Pijoos at News24
Prasa announces closure of three lines in Gauteng for rehabilitation work, acknowledges ‘huge’ disruption for commuters BusinessTech reports that the Passenger Rail Agency of SA (Prasa) will suspend services of three lines in Gauteng for the rehabilitation and restoration of electrical cables and traction substations that were vandalised or stolen during the level 5 Covid lockdown. “This will also allow for Prasa to run more efficient train services and to introduce the electrical motor units (electrical trains) which form part of Prasa’s modernisation programme,” the agency said this week. Prasa acknowledged that the disruption of these services would come at a huge cost to rail commuters, but said the benefits would be worth the pain felt in the interim. The three lines will become construction sites, as the appointed contractors will take over the lines to start the rehabilitation and restoration work. Closure of the three lines in the Gauteng region have been scheduled as follows: Pienaarspoort to Pretoria – 23 May until August 2022; Naledi to Johannesburg – 23 May until September 2022; Leralla to Elandsfontein – 30 May until October 2022. Prasa said sustained theft and vandalism of its rail assets had disrupted train services across all provinces in which it operated. Meanwhile, work has begun to recover the services on the central line between Cape Town and Langa, while the process to relocate illegal settlements on the rail tracks is underway. Read the full original of the report in the above regard at BusinessTech
Government is acting on electricity supply shortage, claims Mantashe, at BusinessLive Eskom vandeesweek glo gesaboteer, by Maroela Media Ukhozi FM suspends its Breakfast Show team, no reasons given, at The Star Interview: Is this strike season different? at Moneyweb
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