In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 20 May 2022.
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We are fighting for our livelihoods, say cash-strapped Sibanye mineworkers as they reject new offers BusinessLive reports on the views of some of the 25,000-strong employees who have been on a wage strike at Sibanye-Stillwater’s gold operations since 9 March. They are demanding a R1,000-per-month increase for three years for the lowest-earning employees, a R100 increase in living-out allowance and a 6% pay hike for so-called ‘miners, artisans and officials’. “If SA has to come to a standstill before we get our R1,000 increase, then so be it. We are fighting for our livelihoods here, and for the future of our children,” said Sindi Godongwana, who works at Sibanye’s Driefontein gold mine in Carletonville. Sibanye’s offer, which the Association of Mineworkers and Construction Union (Amcu) and the National Union of Mineworkers (NUM) have rejected, would translate into an increase of 7.8% in basic wages in the first year of a three-year deal, 7.2% in the second year and 6.8% in the third year. The parties met in Boksburg on Tuesday last week to try to resolve the deadlock. Sibanye presented a number of proposals and options to end the strike, including a profit share scheme and a five-year wage deal arrangement encompassing an increase of R850 in year four and R900 in year six, or a mix between the two. According to Amcu’s Jimmy Gama, the union negotiators rejected the profit share proposal as it was dependent on market conditions. At a mass meeting at the Driefontein mine on Friday, Amcu and NUM leaders gave feedback to their members and sought a mandate on the way forward. When the leaders asked the striking employees what the next step should be, they shouted in unison that the industrial action, which has resulted in them forfeiting more than R1bn in wages, should continue. Lusindiso Bongelo, a rock drill operator, said: “We have reached a point of no return now. We will strike until the employer accedes to our demands.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive. Read too, Two new wage offers snubbed by striking Sibanye workers, at Fin24 Sibanye-Stillwater hits back after Mantashe threatens to cancel mining rights if wage strike is not settled soon Business Times reports that the fallout over the prolonged wage strike at Sibanye-Stillwater is intensifying, with the producer threatening legal action should Department of Mineral Resources and Energy (DMRE) Minister Gwede Mantashe see through a threat to cancel the gold miner’s mining licence if there is no resolution soon. Sibanye hit back on Friday after Mantashe hinted in parliament on Thursday that he could cancel the company’s mining rights over the persisting strike. Spokesperson James Wellsted said on Friday that the company reserved the right to protect the interests of its stakeholders through appropriate legal channels. “The minister’s remark is somewhat perplexing given that it was the unions who initially called the strike which has halted production at our SA gold operations and have dragged out this extended industrial action,” Wellsted pointed out. He indicated that Sibanye would engage the DMRE if the prospect of cancellation of mining rights was formally raised with the company. Wellsted claimed that labour’s wage demands would affect the sustainability and life of the company’s SA gold operations, resulting in early job losses for many of its 31,000 employees, and would have significant consequences for other stakeholders, including communities and local SMEs that depended on Sibanye’s operations. The move would also affect the national and regional economies. “The reason we are holding out is that the industry cannot continue to absorb above-inflation costs. Is the minister suggesting that unless we accept the union’s demands [he] may take away our mining right? I’m not sure that is the intention of section 47 — or even lawful — and the implications for inward investment for South Africa are appalling,” Wellsted commented. The Act requires the holder of a mining right to actively conduct mining Read the full original of the report in the above regard by Dineo Faku at BusinessLive (subscriber access only) NUM and Minerals Council at odds over whether curatorship was the right move for Ubank Business Times reports that a trustee of the fund that owns Ubank, which the SA Reserve Bank (SARB) placed under curatorship last week, said they could have secured investors if the central bank had given them more time. Mpho Phakedi, a trustee of the Teba Fund, stated that the curatorship could have been avoided and the trust could have managed the situation. He said the Teba Fund Trust began talks a month ago with African Bank and Access Bank SA, the local division of the Nigerian-based Access Bank Group, about options such as a merger “or them putting capital into the bank in a shareholding arrangement”. He said Ubank, which caters mainly to mineworkers, had been about to begin a due diligence study when it heard about the curatorship. Ubank was placed under curatorship after the SARB’s Prudential Authority (PA) found that its capital adequacy ratio was at about 3%, compared with an industry average in SA of just over 15%. Phakedi acknowledged Ubank had experienced issues with its capital adequacy ratio since 2015. “The account holders are mineworkers, who from time to time are affected by retrenchment, and the bank has to lose clients and people with potential to take loans,” he explained. The National Union of Mineworkers (NUM), which is joint administrator of the Teba Fund Trust along with the Minerals Council SA (MCSA), which was previously known as the Chamber of Mines, called the decision to place Ubank under curatorship premature. NUM general secretary William Mabapa said they were taken by surprise last Monday by news of the curatorship. But, the MCSA indicated its support for the curatorship, saying the move would “help stabilise the bank, protect depositors and bring in a long-term strategic investor”. Read the full original of the report in the above regard by Dineo Faku at BusinessLive (subscriber access only) Foul smell leads guards to gruesome triple murder scene near Saaiplaas mine shaft in Free State News24 reports that a foul smell near a mine shaft in the Free State alerted patrolling security guards to a gruesome murder scene. The guards were patrolling the Saaiplaas Gold Mine Shaft number 3 on Wednesday. They alerted their supervisor, and then removed stones to investigate the source of the smell. Police spokesperson Captain Stephen Thakeng said the guards then discovered a human leg, and called the police. Thakeng said the police and the Matjhabeng Fire Department discovered the hole had been stuffed with three decomposing bodies, one of which was without a head. All of the bodies were in a decomposed state. A case of triple murder has been registered for further investigation. Read the full original of the report in the above regard by Tebogo Monama at News24 Unions and traditional council take aim at non-profit law firm in Somkhele coal mine expansion saga Fin24 reports that unions and a traditional council have taken aim at a non-profit law firm representing community members opposed to the expansion of a KwaZulu-Natal (KZN) coal mine, and have called on the attorneys to reveal their true motives and those of its funders. In a joint statement released by DMS Attorneys on behalf of the Association of Mineworkers and Construction Union (Amcu), the National Union of Mineworkers (NUM), the Mpukunyoni Traditional Council and the Mpukunyoni Community Mining Forum last week, the group levelled harsh allegations against All Rise, a law clinic for climate and environmental justice, going so far to label its opposition to the Somkhele coal mine’s activities in KZN as "tantamount to a gross human rights violation". All Rise has condemned these comments as "hugely irresponsible". The statement from the unions and traditional council comes as Mfolozi Community Environmental Justice Organisation (MCEJO), represented by All Rise, recently succeeded in a legal challenge to Tendele’s mining right, which serves as the basis to expand the Somkhele mine for another 10 years. The court’s judgment earlier this month found Tendele had failed to properly follow the legal processes required to obtain the mining right. Its processes were especially deficient concerning public participation and obtaining community consent. The court ordered that MEJCO’s appeal to Tendele’s mining, which the minister of mineral resources had previously rejected, be sent back to him for reconsideration. Tensions have been simmering around the coal mine’s expansion for years and boiled over in October 2020 when Fikile Ntshangase, an activist opposed to the project, was assassinated. Read the full original of the report in the above regard by Lisa Steyn at Fin24. Read too, Interdict threat over new mine, on page 18 of Mail & Guardian of 20 May 2022 Other labour / community posting(s) relating to mining
Tshwane A Re Yeng bus strike called off after Numsa settles dispute over travel allowance and other conditions EWN reports that the National Union of Metalworkers of SA (Numsa) says its planned shutdown of the A Re Yeng bus services in the City of Tshwane will no longer go ahead this coming week. According to the union, it has reached an agreement on its demand for a transport allowance for its members. Aggrieved workers had been at loggerheads with the agencies responsible for running Tshwane's bus services, demanding an allowance of R2,500 for transport. Members had threatened to strike and shut down services if the metro failed to intervene in the collapsed negotiations. Numsa spokesperson Phakamile Hlubi Majola advised that workers have settled for a R900 allowance, and a night shift allowance of R20 per hour. “"They did not have medical aid, and now we've secured medical aid with a 30% contribution from the employer. We've also secured an increase in annual leave for those employees who've been at the company for more than two years. We've secured annual bonuses for all employees, and for the first time workers will receive long service benefits where they will receive a cash payout after five years," Hlubi-Majola indicated. Read the full original of the report in the above regard by Rafiq Wagiet & Mihlali Ntsabo at EWN Other internet posting(s) in this news category
State rejects public servants’ demand for 10% pay hike as it remains committed to keeping wage bill in check BL Premium reports that the government has rejected nearly all of the public sector unions’ double-digit pay hike demands in a demonstration of its commitment to keep its ballooning wage bill in check. This potentially sets it on a collision course with the more than 1.3-million strong workforce. In a document outlining the government’s official position for the first time since the public sector unions put forward their demands, the state proposed the extension of the current the R1,000 after-tax cash gratuity to employees and a 1.5% pay progression hike, which is linked to years of service and is always pencilled into the budget. The extension of the after-tax gratuity can easily be covered by the R20.5bn already in the 2022/2023 budget. The offer is in line with the government’s budgetary commitments to restrict the growth in the R665bn public sector wage bill. The government also proposed that all other demands should be deferred to the 2023/2024 round of negotiations, which is due to start in July and end the following month. But, the wage proposal is miles away from the 10% pay increase demand tabled in recent weeks by union leaders representing teachers, nurses, police officers and other public servants. “We are not accepting the response of the employer. We are meeting again on May 31 as unions to chart the way forward. They [the employer] must go and revise their budget and come back with something that can be acceptable,” said Reuben Maleka of the Public Servants Association. The stances taken by the unions and the government — which is determined to rebalance public finances after the growth of remuneration over the past decade far outstripped inflation and GDP growth — raises the risk of a strike that could shut down parts of the economy. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
Mantashe says fuel levy reduction won't be extended beyond May News24 reports that Department of Mineral Resources and Energy Minister Gwede Mantashe has indicated that the temporary reduction in the general fuel levy won't be extended beyond the end of May. The levy was cut by R1.50 a litre for April and May as government sought to relieve the economic stress of surging fuel prices. When asked on Thursday whether the levy cut would be extended beyond May, Mantashe said it would not – although his department still needed to consult with National Treasury “to [see] if there can be anything more that we can do." At the current oil price and rand levels and without the levy cut being extended, petrol may be hiked by more than R3.50 in the first week of June. According to Johann Els, chief economist at Old Mutual Investment Group, if the petrol levy cut isn’t maintained beyond May, consumer inflation may reach 6.8% to 7% in June. With consumer inflation around 7%, and with the combined effect of higher interest rates, workers won’t be happy with salary hikes of 5%, warned Johann van Tonder, economist at Momentum Investments. In his view, “this will fuel even larger wage demands than what are currently seen, leading to more strikes in the end." Read the full original of the report in the above regard by Lisa Steyn and Helena Wasserman at News24
Gordhan announces new shareholder model for state-owned companies Fin24 reports that Public Enterprises Minister Pravin Gordhan on Friday announced a shake-up of state-owned companies (SOEs) that will set them on a stronger commercial footing by creating a "centralised shareholder model" under a state-owned holding company. The holding company will embrace government’s commercial entities that engage in business activities, such as Eskom and Transnet. The Presidential SOE Council has recommended the proposed model. Gordhan explained: "This [will] separate the state’s ownership functions from its policy and regulatory functions, minimise the scope for political interference, introduce greater professionalism, and manage state assets in a way that protects shareholder value." He said much progress had already been made and that a Shareholder Bill would be introduced after approval by Cabinet. The necessary documents to establish the holding company had been drawn up and "the necessary consultation would soon be concluded." Gordhan added that work had also been done on the consolidation of state-owned companies, of which there are more than 700, and to assist those that found themselves in crisis. Responding to criticism that he had subverted processes in the selection and negotiation of a partner for SA Airways (SAA), Gordhan said he wanted to assure the public that "there has been absolute transparency and all necessary legal processes were complied with, notwithstanding the regrettable efforts by many to sabotage and undermine the process". The National Treasury has made clear that it was not consulted in the choice of SAA’s strategic partner. Read the full original of the report in the above regard by Carol Paton at Fin24 (subscriber access only). Read too, Opposition parties gear up to take Gordhan on in SAA deal, at Sunday Independent Other internet posting(s) in this news category
Nehawu rejects Motsoaledi's intention to classify home affairs as a security department so that Saturday work is not paid as overtime News24 reports that the National Education, Health and Allied Workers' Union (Nehawu) says it is "shocked" and "angered" by Minister Aaron Motsoaledi's intentions to classify the Department of Home Affairs as a security department. Motsoaledi's pronouncement on the matter in parliament came after EFF member Rosina Ntshetsana Komane asked him a question about the reasons the department discontinued working on a Saturday. In response, he said: "Should we agree, the department will be forced into paying overtime for life/permanent overtime and this is untenable. The department has submitted to Cabinet a Home Affairs Bill which will change the nature of [the] home affairs department into a security department, which is entitled to open...weekends." The minister also said discontinuing work on Saturdays had affected the department negatively. But Nehawu said matters pertaining to the conditions of service and scope of work for public servants were discussed at the Public Service Coordinating Bargaining Council and at the General Public Service Sector Bargaining Council - not through public pronouncements. The union urged the minister against preoccupation with media populism and said he should rather focus on the core functions of the department. "Home Affairs is currently struggling to fill over 9,000 vacant posts and as the union, we have been fighting for the filling of these vacant funded posts in the department,” the union pointed out. Read the full original of the report in the above regard by Cebelihle Mthethwa at News24
Over 5,800 public servants to be brought to book for fraudulently receiving R350 social relief of distress grants BusinessLive reports that Department of Social Development Minister Lindiwe Zulu says an investigation has been launched to bring to book more than 5,800 government officials who benefited from the R350 social relief of distress (SRD) grant. Responding to a written parliamentary question last week, Zulu said her department was working with the police, the National Prosecuting Authority (NPA), the Financial Intelligence Centre (FIC) and the Department of Public Service and Administration (DPSA) discipline management unit to investigate 5,812 cases of officials caught for fraud. A December 2021 report from the office of the auditor-general found the government officials fraudulently applied for and received the R350 grant, to the total value of R5.8m. The SA Social Security Agency (Sassa) intends to finalise two processes on or before 31 September, namely handing over files to the DPSA for disciplinary hearings in co-ordination with affected national and provincial departments; and opening criminal cases within various provinces Read the full original of the report in the above regard by Unathi Nkanjeni at BusinessLive Other internet posting(s) in this news category
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