In our Tuesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Eskom's De Ruyter threatened to quit three months into the job, telling board chairman 'either accuser goes, or I go' News24 reports that André de Ruyter, Eskom's chief executive, threatened to resign his position a mere three months into his tenure when Sifiso Dabengwa, an Eskom board member, falsely accused him of misleading the board after he cancelled a R14 billion fuel oil tender. De Ruyter presented Eskom board chairperson, Malegapuru Makgoba, with an ultimatum that would put his future at the power utility in question, namely either Dabengwa left, or he would depart. This after an investigation cleared De Ruyter of wrongdoing. The board had initiated an independent probe after Dabengwa accused the CEO of misleading the board in his submissions around the tender, which De Ruyter believed needed to be cancelled. When things came to a head, De Ruyter phoned Makgoba. "Either he goes, or I go," De Ruyter told Makgoba. Dabengwa resigned from the board on 27 July 2020. De Ruyter would later be vindicated when the High Court agreed, setting aside the tender award, which would have seen suppliers, including Econ Oil, sign five-year contracts for the supply of fuel oil. Fuel oil is burned in the boilers when generation units are started up. All this is revealed in a new book, titled ‘Sabotage: Eskom Under Siege’, written by investigative journalist Kyle Cowan. Instability in the leadership of Eskom has been well-documented, with De Ruyter the 10th person to hold the position of CEO in as many years. Cowan details the spat that woke De Ruyter up to the "the enormity of the mess he had walked into". Cowan's book, to be released this week, delves into the intense opposition De Ruyter and his team have faced in their attempts to clean up corruption and get Eskom back up and running. Read the full original of the report in the above regard by Azarrah Karrim at News24 (subscriber access only)
With huge fuel price hike looming, South Africans waiting for government announcement on levy EWN reports that government is still looking at its options even as the country faces a petrol price crisis, with an increase of around R3.80 a litre to take the price to about R25 a litre in June. The fuel levy was decreased by R1.50 two months ago, but this was only for a limited period until the end of May. There have been mounting calls for the fuel levy to be scrapped as South Africans battle to make ends meet. But chief economist at Stanlib, Kevin Lings, said that it was not as simple as that as government could not just lose that revenue. But he added that government needed to do something to help South Africans, who are waiting to see how government will handle what many are calling the fuel price crisis. There are concerns that the fuel price increase will have devastating secondary effects. Economists agree that if fuel prices continue to increase drastically, then so will inflation, which will be followed by rate increases. Lings said that this could have serious knock-on effects as unions and workers then demand double-digit wage increases. "I suspect that as we go over the next couple of weeks or months, you are going to see more demands for salaries in double digits. Under current circumstances, that's difficult for many companies to afford and so what they'll do if they are forced to give higher wage increases, they'll start to look to cut costs elsewhere," he pointed out. Read the full original of the report in the above regard by Ray White at EWN. Read too, Rising global fuel prices leave government little room to manoeuvre, at BusinessLive. En ook, Steeds geen aankondiging oor nuwe brandstofprys, by Maroela Media Other internet posting(s) in this news category
Gauteng health department cannot rule out sabotage in recurring hospital fires TimesLive reports that the Gauteng health department has not ruled out sabotage being behind fires at public hospitals. A fire broke out at Steve Biko Hospital in the early hours of Monday morning, while the Charlotte Maxeke Hospital's casualty unit recently reopened a year after a fire broke out at that facility. Gauteng health MEC Dr Nomathemba Mokgethi said it was bizarre that the department had to contend with fires almost every year and the possibility of deliberate foul play could not be ruled out. Addressing the media on Monday, Mokgethi said her department would get to the bottom of the problem. She indicated: “Of course [we suspect] there is [sabotage], you cannot have fires year after year. It looks like every year in the department of health we have to deal with fires, but we are doing something on that. I will be getting a report this afternoon [Monday], especially on the Charlotte [Maxeke Hospital] issue. On the Steve Biko Hospital, I did receive a report that the tents that were used, one of them caught fire. There were about five patients in the next tent, but they managed to evacuate without incident and the fire did not spread to the main hospital.” An incident reports from the CEO is awaited, while the police are conducting their own investigation into the cause of the Steve Biko fire. Read the original of the report in the above regard by Mawande AmaShabalala at TimesLive. See too, Patients, staff evacuated after fire at Vredendal Hospital in Western Cape, at News24 Other internet posting(s) in this news category
Covid-19 command council to live on as pandemic not yet over, says Cyril Ramaphosa TimesLive reports that President Cyril Ramaphosa says the national coronavirus command council (NCCC) will continue to meet, despite the state of disaster over the pandemic having been lifted. The council was initiated in March 2020 in response to the global Covid-19 pandemic. It consists of several ministers and stakeholders. In his address to the nation at the beginning of the national state of disaster, Ramaphosa said the council would “meet three times a week to co-ordinate all aspects of our extraordinary emergency response”. It made several controversial decisions, including bans on the sale of alcohol and tobacco products. After 750 days, the national state of disaster was lifted in April. However, Ramaphosa said the council would live on. In response to a written parliamentary question, Ramaphosa said the council would remain as a committee within the cabinet. He said the council did not depend on the national state of disaster to exist. “The NCCC continues to perform this function since, although the national state of disaster has been lifted, the Covid-19 pandemic is unfortunately not yet over,” Ramaphosa noted. Read the full original of the report in the above regard by Kyle Zeeman at BusinessLive Other internet posting(s) in this news category
It's business as usual for SARS despite ongoing wage strike Fin24 reports that the SA Revenue Service (SARS) maintains that it will continue to run all of its operations – including customs and excise – without a hitch despite the national strike by unions at the tax body, which began last week. The Public Servants Association (PSA) and the National Education, Health and Allied Workers’ Union (Nehawu) embarked on a strike at SARS after the revenue service and unions could not break a deadlock over wages during negotiations. The strike kicked off days after SARS offered to channel savings from 2021 towards paying salaries, but maintained that it could not afford to accede to the unions' demands for a CPI plus 7% increase. While SARS says it received no formal response to the offer, a strike ensued after it was made. In a statement, SARS Commissioner Edward Kieswetter said the first day of the strike proceeded in an orderly manner, without incident, and due to the wide range of online services, disruptions to the tax authority's day-to-day operations remained minimal. Nehawu spokesperson Lwazi Nkolisi said while its industrial action continued, the union would seek a mandate from membership nationally to determine whether it should accept SARS's latest offer or continue with its industrial action. A PSA spokesperson could not immediately be reached for comment. Read the full original of the report in the above regard by Khulekani Magubane at Fin24 Other internet posting(s) in this news category
New MEIBC main agreement introduces SMME dispensation Engineering News reports that the Consolidated Employers’ Organisation (CEO) has secured a “landmark” victory for its members after lengthy discussions with other stakeholders at the Metal and Engineering Industries Bargaining Council (MEIBC). A new MEIBC main agreement has been agreed upon which recognises the fact that small, medium-sized and microenterprises (SMMEs) in the metals and engineering industry had historically been left to struggle because of no small-employer dispensations in negotiations, which resulted in largely unaffordable settlements for small and growing businesses. The new MEIBC main agreement allows SMMEs to structure in their wages in a multi-phased manner, gradually. CEO national collective bargaining coordinator Johann Preiss pointed out that those employer members who still could not afford the new small-employer dispensation or the phase-in dispensation were protected in the new main agreement through a new exemptions policy negotiated by CEO. Such SMME members will, however, need to submit their exemption applications on dates specified in the agreement. The agreement with the trade unions and other stakeholders enables CEO members within the metal and engineering industry to fix their employees’ wages at flat rates of 60% of the 2019/20 industry wage rates without having to implement any increases until 30 June 2024. Likewise, the agreement was not backdated from 1 July 2021, as was the case with other parties. Read the full original of the report in the above regard at Engineering News
Most sectors in SA are hiring again, matching or exceeding levels last seen before the Covid-19 pandemic Business Insider SA reports that SA’s job market is slowly recovering after two years of layoffs and reduced hiring activity, with businesses in most sectors now actively looking to employ. The Covid-19 pandemic threw SA’s already embattled economy into a tailspin. Businesses closed – either temporarily or permanently – with hundreds of thousands of job losses ratcheting the country's unemployment rate to record highs. Few sectors were spared retrenchments as companies attempted to cut costs and stay afloat. Similarly, hiring activity remained depressed throughout much of 2020 and 2021. But there are signs of recovery. According to Pnet's ‘2022 Job Market Trends’ report, the demand for labour is looking more positive, with hiring activity of most sectors back to pre-Covid levels. Vacancies in the SA job market, determined by data sourced from online recruitment platforms, increased by 8.3% in the first quarter of 2022 compared to two years ago during the same period. Hiring activity in the medical and health sector has increased by 30%, showing the strongest recovery over the past two years, according to Pnet's research. Job openings in security and emergency services and manufacturing and assembly have increased by 28% and 25%, respectively. But there are some industries which are still below pre-pandemic levels. Jobs in the education, training and library aren't as easy to find, with demand still 3% behind pre-pandemic levels. Hiring activity in warehousing and logistics has almost made a full recovery, but is still 1% off. Read the full original of the report in the above regard compiled by Luke Daniel at Business Insider SA Over 450 youth job opportunities created in ICT sector The Star reports that over 450 young South Africans will be given an opportunity to break into the workforce, learn skills in the ever-growing ICT sector and contribute to their communities. As a major ICT player, Telkom has partnered with Youth Employment Service (YES) to give 455 young people an opportunity in the sector. “Youth unemployment in South Africa is currently at 66.5%. Through Telkom’s partnership with YES, we are increasing job opportunities for youth, and injecting critical skills into our economy that will enable innovation, and a digital future,” said Telkom chief HR officer, Melody Lekota. The telecoms company said it opted to place youth externally through the YES turnkey solution as a way to capacitate non-government organisations working in the digital space all over SA. This would allow companies to sponsor the placement of unemployed youth for 12 months in vetted implementation partners within their own communities. The youth did not have to travel far for work and could rather contribute to building their hometown economies, Telkom pointed out. “The youth were placed with YES implementation partners operating in positions that offer crucial in-demand skills such as data capturers, cybersecurity agents, digital artisans, content creators and software developers. This offers them a year of work and up-skilling while earning a salary,” the company advised. YES chief executive, Ravi Naidoo noted that the ICT sector desperately needed more skilled workers, while Telkom’s partnership with YES would contribute to building an equipped workforce. Read the full original of the report in the above regard by Chulumanco Mahamba at The Star Seven red flags to look out for to avoid job scams Business Report writes that the Department of Public Service and Administration (DPSA) has warned the public of over 50 job scams falsely claiming to be from the department. DPSA director-general Yoliswa Makhasi advised that the adverts for administrative clerks and government vacancies that were making the rounds on social media were fake, and the websites were not affiliated with the department. “The DPSA advises the public to be aware that, if they use third party websites, they might be exposed to phishing and breaches to their personal information,” said Makhasi. Here are seven things to look out for when looking for a job to avoid scams: (1) The recruiter asks for a payment; (2) Unprofessional communication; (3) Confidential information requested; (4) There is no contact information for the company; (5) Vague/ broad job description; (6) Being offered the job immediately; (7) Extremely high pay for a junior/mid level position. Read the full original of the report in the above regard by Xolile Mtembu at Business Report Other internet posting(s) in this news category
Many dissenting Capitec shareholders vote against R177m package paid to top three executives Fin24 reports that shareholders who hold almost half of Capitec's shares have voted against the remuneration package of R177 million paid to its top three executives in the past year. Investors holding 47.5% of its shares voted against the implementation of Capitec's 2022 remuneration policy at its Annual General Meeting on Friday. Capitec’s CEO Gerrie Fourie bagged R92.8 million, an 88% increase from the R49.2 million he earned in guaranteed pay and incentives a year earlier. CFO Andre du Plessis got R60.4 million, also an 81% increase from the R33.3 million he earned the previous year. The bank's executive for risk management, Nkosana Mashiya, was paid R24.3 million, a 73% increase from his previous R14 million. Shareholder votes on remuneration policies are non-binding, meaning that Capitec can pay executives even if shareholders vote against it. But if shareholders holding 25% or more of the company voted against the policies, the company must engage them to try to find a common ground. Capitec has invited dissenting shareholders to submit written questions or comments by 6 June 2022 and the bank's remuneration committee (Remco) will then engage them on 14 June. This is the second year in a row that more than 25% voted against the implementation of the bank's remuneration policy. At the 2021 AGM, investors holding more than 51% of shares shot down the implementation report, an unprecedented number of dissenting votes for the bank on this issue. The bank's Remco said it saw its remuneration policy as a key component to attracting and retaining employees because there was a "fierce" battle for talent in the financial sector right now. Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24. Read too, Capitec under fire – again – for its executive pay, at Moneyweb Other internet posting(s) in this news category
Costly overseas trips, extravagant spending on entertainment behind DA’s suspension of speaker of Western Cape legislature News24 reports that an internal probe by the provincial Democratic Alliance (DA) was launched into Masizole Mnqasela, speaker of the Western Cape legislature, after two boxes containing travel and entertainment claims were handed to Premier Alan Winde. Whistleblowers are said to have come forward with evidence, claiming lavish spending by the speaker while on government business. The allegations culminated in Mnqasela being suspended from all party activities, pending the investigation. He has vehemently denied the allegations, saying: "I am not a criminal." The allegations came to light shortly after Mnqasela returned from an overseas trip to the United Kingdom. According to his office, the trip cost the province a whopping R1.2 million. He was accompanied by seven others, including staff and members of the provincial legislature. The DA's top brass demanded an explanation, while the Hawks were also roped in to probe the allegations. Other evidence handed to the premier included exorbitant entertainment claims made by Mnqasela, which amounted to a total of R200,000 during one financial year. On Sunday, following his suspension, Mnqasela held a media briefing in Cape Town, where he maintained that he was not a thief and that would abide by the instructions of the party. Senior party insiders said Mnqasela had turned into a serious "liability", with members questioning why seven people had had to go on a trip to sign a Memorandum of Intention in Wales. His suspension is seen by some as a bid to oust him from the provincial government. Read the full original of the report in the above regard by Marvin Charles at News24 (subscriber access only)
North West teacher fired for fondling and kissing Grade 9 pupil News24 reports that a North West teacher has been fired after the Education Labour Relations Council (ELRC) found him guilty of sexually harassing a 15-year-old Grade 9 pupil. The council found that the Letlopi Secondary School teacher was not suitable to work with children and should be dismissed. The pupil told the ELRC that in June last year when she came from the bathroom with her friend, her teacher, Jacob Setlhare, arrived to lock the bathroom and told her to meet him at his office. When Setlhare arrived at his office, he closed the door and started touching the pupil’s body to kiss her, but she refused and pushed the teacher away. Thereafter she ran to her classroom, fetched her schoolbag and went home. The pupil said she felt "hurt" and "scared" after the incident. Setlhare initially denied the allegations but later admitted to the school's deputy principal that he had kissed the pupil on the cheek. During the hearing, however, he denied kissing the pupil and said he had only confessed because of his sour relationship with the deputy principal and threats he had received from the pupil's family. But ELRC arbitrator S Fourie found that it was "highly likely" that Setlhare had touched and kissed the pupil. Fourie noted that the refusal by Setlhare to admit guilt and thereby show remorse for his misconduct was a serious aggravating factor. Read the full original of the report in the above regard by Jeanette Chabalala at News24
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