In our Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Reduction in general fuel levy extended for two more months Fin24 reports that the Department of Mineral Resources and Energy (DMRE) announced on Tuesday that the price of 95-octane unleaded petrol would rise by R2.33 a litre on Wednesday, while 93-octane unleaded petrol would go up by R2.43 a litre. Diesel prices will rise by R1.10 (0.05% sulphur) per litre and R1.07 (0.005% sulphur) per litre respectively, while illuminating paraffin will be R1.56 more expensive per litre. The fuel prices were pushed higher by oil, with the average Brent crude oil price increasing from $104.78 a barrel to $115.00 over the past month. But, Wednesday's increases are smaller than feared after Treasury decided to grant an extension of the reduction in the general fuel levy. The R1.50 relief will be extended from 1 June until 6 July, followed by a downward adjustment to the relief for the second month – to 75c per litre – from 7 July until 2 August. It will be withdrawn from 3 August, according to a joint statement from National Treasury and the DMRE on Tuesday afternoon. The revenue to be foregone from the extension is estimated at some R4.5 billion. "Unlike the previous announcement, this proposal is expected to have an impact on the fiscal framework, as it will not be fully funded through a sale of strategic oil stocks," the statement indicated. Read the full original of the report in the above regard at Fin24. Lees ook, Só lyk finale brandstofpryse, by Maroela Media State will stick to fiscal discipline to cover R4.5bn fuel levy relief BL Premium reports that in anticipation of a huge fuel price increase, Finance Minister Enoch Godongwana has proposed a two-month extension of the reduction in the general fuel levy at an additional cost of R4.5bn that has not been fully funded. The proposal was contained in a letter Godongwana submitted on Tuesday to the Speaker of the National Assembly. The original relief, which was announced at the end of March and implemented in April, was due to expire at midnight on Tuesday, which would have left SA motorists facing an increase of about 25% to over R25/l for petrol. Unlike the R6bn sacrificed by the state during the initial tax holiday, the government said the sale of strategic fuel reserves would not be enough to cover the cost of the extension, implying an impact on the budget either through raising extra revenue or cutting spending elsewhere. The Treasury said, without providing any details, that the latest temporary reduction in the fuel levy would be accommodated in the current fiscal framework “in a manner that was consistent with the fiscal strategy” as outlined in the February budget. Changes, if required, would be announced in the 2022 medium-term budget policy statement. The government could be counting on corporate tax revenue from industries such as mining coming in better than anticipated to fill the gap. But, it remains a question what the government will do if prices stay elevated as political pressure will build for the “temporary” relief measures to become permanent. That in turn, would risk long-term damage to finances that are recovering after the Covid-19 outbreak and lockdowns. Read the full original of the report in the above regard by Denene Erasmus at BusinessLive (subscriber access only). Read too, As fuel-levy reduction is extended, government warns of R4.5bn fiscal hit, at Mining Weekly Consumers paying nearly R473 a month more for basic food than in May 2021 TimesLive reports that the Covid-19 pandemic, the Ukraine war, unrest and the KwaZulu-Natal floods have contributed to South Africans forking out nearly 12% more for basic food items compared to a year ago. The latest Household Affordability Index, which is compiled by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) and tracks food price data from 44 supermarkets and 30 butcheries in Johannesburg, Durban, Cape Town Pietermaritzburg and Springbok in the Northern Cape, shows that the average cost of the food basket increased by R472.78 (11.4%), from R4,137.11 in May 2021 to R4,609.89 in May 2022. Food baskets increased in all areas, except Springbok. According to the index, 22 of the 44 foods in the basket shot up in price. PMBEJD co-ordinator Mervyn Abrahams indicated: “The significant increases (5% and above) are: cooking oil (by an average of R24.67 [14%] on a 5l bottle, with the average price in May R201.90), potatoes, onions, chicken livers, carrots and spinach. Increases also included maize meal, cake flour, frozen chicken portions, stock cubes, wors, tomatoes, cabbage and white bread.” He said higher commodity prices, production and logistical costs would continue to drive prices upwards and they were likely to continue rising for the rest of the year. He went on to comment: “There is a direct correlation between household food security and societal stability, and with increasing household food insecurity, the risk of social instability has increased significantly.” According to Abrahams, SA’s long food value chains make the country vulnerable to food insecurity, “but especially if our fuel prices continue to escalate, and if our transportation systems and governance system are vulnerable.” Read the full original of the report in the above regard by Suthentira Govender at BusinessLive. Lees ook, Jou kosmandjie nou nóg duurder, by Maroela Media As chicken prices surge, local producers deny they are profiteering BusinessLive reports that with the price of chicken soaring and set to hit record highs, local poultry producers have dismissed suggestions that they are profiteering at the expense of consumers. Chicken is one of the most popular animal proteins consumed by cash-strapped consumers, in part because it is still relatively affordable. But prices, which have increased by at least 10% annually over the past decade and by as much as 17% in the past year, are set to hit record highs as input prices spike partly due to the Russia-Ukraine war. Ukraine is one of the largest producers of oilseed and grain, the main ingredients of chicken feed. On Monday, Izaak Breitenbach of the SA Poultry Association, which represents local producers, said contrary to popular belief producers have not made enough profit in recent years to invest back into the industry. He said recent price increases have been forced on them by rising feed prices, which make up 70% of a producer’s input costs. The sector has in the past shed thousands of jobs and ascribed its struggles to cheap chicken imports mainly from Brazil, the US and Europe. The Association of Meat Importers and Exporters has been calling on the government to remove all tariffs and suspend the consumption tax on all poultry to cushion consumers from the rising price of chicken. But Francois Baird of the FairPlay Movement has suggested that importers are pushing for the suspension or removal of tariffs to maximise their own profits, not necessarily to protect consumers. Baird believes that the low prices at which chicken is imported are not passed on to consumers. While local producers have backed the removal of VAT on selected cuts of poultry consumed by lower-income families, they vehemently oppose the removal of tariffs. Trade, industry & competition minister Ebrahim Patel is also against the suspension of tariffs, arguing that such an “extreme” step would destroy local jobs. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive. Read too, Local poultry producers remain at odds with chicken importers on tariffs, at Engineering News Other internet posting(s) in this news category
SA’s unemployment rate improved modestly to 34.5% in the first quarter of 2022 Engineering News reports that the official SA unemployment rate decreased by 0.8 of a percentage point to 34.5% in the first quarter of this year, compared with the unemployment rate of 35.3% in the fourth quarter of 2021. The unemployment rate according to the expanded definition, which includes discouraged work-seekers, also decreased by 0.7 of a percentage point to 45.5% in the first quarter. On Tuesday, Statistics SA (Stats SA) statistician-general Risenga Maluleke shared the results of the latest Quarterly Labour Force Survey for the quarter ended 31 March and highlighted that 370,000 jobs were gained between the fourth quarter of last year and the first quarter of this year. The biggest job gains were recorded in community and social services (281,000), followed by manufacturing (263,000) and trade (98,000). The mining sector also managed to gain 36,000 jobs in the quarter under review. There were, however, job losses recorded from private households totaling 186,000 and finance totaling 72,000, while the construction and agriculture sectors also shed jobs to the extent of 60,000 and 23,000, respectively. The total number of people employed in SA was 14.9-million at the end of the first quarter, while the number of unemployed people decreased by 60,000 to 7.9-million. The number of discouraged work-seekers decreased by 54,000 and the number of people who were not economically active for reasons other than discouragement decreased by 112,000, resulting in a net decrease of 166,000 non-economically active people. Maluleke reiterated that young people remained vulnerable in the labour market, despite a slight decrease in the number of unemployed youth in the first quarter. Read the full original of the report in the above regard at Engineering News. See too, SA’s jobless rate falls for first time since 2020, at BusinessLive. En ook, Werkloosheidskoers daal effens, by Maroela Media Other internet posting(s) in this news category
Teacher shot dead on Tuesday outside North West school while sitting in her car News24 reports that a North West primary school teacher was shot dead on Tuesday morning while sitting in her car in front of the school gate in Geelhoutpark, Rustenburg. The Rutanang Primary School teacher was allegedly shot by two gunmen. Provincial police commissioner Lieutenant General Sello Kwena has ordered a 72-hour activation plan to find her killers. Police spokesperson Brigadier Sabata Mokgwabone said the teacher was in her Toyota Fortuner in front of the school gate when the gunmen approached and shot her at close range. "The suspects, who did not take anything from the car, walked away from the scene on foot," Mokgwabone reported. He added: “When police and paramedics were summoned, the teacher was declared dead at the scene. The motive behind the shooting is yet to be determined. Investigation into the matter continues and no arrest has been effected at this stage." Read the original of the short report in the above regard by Zandile Khumalo at News24. Read too, Classes continue after Grade R teacher shot dead at North West school, at News24. En ook, Strenger sekuriteit in skole gevra ná Rustenburg-juffrou se skietery, by Maroela Media Other internet posting(s) in this news category
Woolworths, Dis-Chem drop mandatory Covid-19 vaccinations for employees News24 reports that after months of enforcing Covid-19 vaccination mandates in the workplace, some companies are starting to relax their requirements for employees. Many companies imposed mandatory vaccination last year and employees who did not want to be vaccinated had to produce negative antigen tests. Now, Woolworths and Dis-Chem have changed their policies. In a letter to employees, Woolworths said that, from 9 May, the company would "no longer limit the entrance to our workplaces to either vaccinated persons or those presenting a negative antigen test". The company also said it would, from 1 June, increase to three the number of times employees needed to come into the office in a week. It stressed that wearing a mask indoors and social distancing were still mandatory. A Woolworths spokesperson said their approach to managing Covid-19 has always been guided by science and government regulations and, with over 70% vaccinated across the company, “we believe it is the correct shift to make at this time and have thus adapted our position accordingly.” In a letter dated 24 May, Dis-Chem said that, from 1 June, it would no longer implement the mandatory vaccination policy. Dis-Chem's HR director, Caryn Eliasov-Barker, said the company decided to suspend the policy after the government ended the national state of disaster. She said while vaccination was no longer mandatory, the company still encouraged all staff members to get vaccinated. Read the full original of the report in the above regard by Tebogo Monama at News24 (subscriber access only) Other internet posting(s) in this news category
No resolution on Monday between Sibanye-Stillwater and striking unions in CCMA-facilitated wage talks BusinessLive reports that attempts on Monday by the Commission for Conciliation, Mediation and Arbitration (CCMA) to bring an end to a protracted wage strike at Sibanye-Stillwater deadlocked after the employer accepted the dispute resolution body’s proposal while striking unions rejected it. In a meeting that ran late into the night, the CCMA proposed a three-year wage deal that would have resulted in the lowest paid workers receiving pay hikes of R700, R1,000 and R900 over a three-year period, a one-off ex gratia payment of R3,000, and an annual 5% increase for so-called ‘artisans, miners and officials’. “This proposal was accepted by Sibanye management but rejected by workers because it’s an insult to our members,” Livhuwani Mammburu, spokesperson of the National Union of Mineworkers (NUM), indicated on Tuesday. About 25,000 gold miners led by the NUM and the Association of Mineworkers and Construction Union (Amcu) downed tools on 9 March. Mammburu said that during the meeting, which ended at about 10pm on Monday, the two unions tabled a revised offer for increases of R800, R1,000 and R900 over three years, a R3,000 one-off ex gratia payment, and a 5% increase for ‘artisans, miners and officials’, rising to 5.5% in the third year. “This counter proposal was rejected last night [Monday]. We are in a deadlock. The parties will meet again today [Tuesday] under the section 150 process, but the unions will hold a brief caucus first to try to find a way forward,” Mammburu indicated. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive Ball is in Sibanye-Stillwater’s court, say striking miners’ unions as they await feedback TimesLive reports that talks between unions representing striking Sibanye-Stillwater gold sector mineworkers and the company continued to hang in the balance on Tuesday. Following a stalemate on Monday evening at a meeting facilitated by the CCMA when the mining company rejected a counter-offer tabled by the National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (Amcu), the parties convened on Tuesday morning. The unions stuck to their guns on Monday’s counter offer while company representatives took a lengthy caucus break to discuss their position. Amcu general secretary Jeffrey Mphahlele said they were waiting to hear what Sibanye’s position was as the unions' position had not changed. NUM spokesperson Livhuwani Mammburu said: "It's up to Sibanye-Stillwater. If they want the strike to end, they have a counter-offer we have put on the table to consider." The counter-offer would see workers receive a R800 increase in the first year, a R3,000 one-off payment and 5% increase for officials and artisans. Sibanye’s proposal, which was rejected by the unions on Monday, amounted to a R700 increase, a R3,000 one-off payment and a 5% increase for officials and artisans. For the second and third years of the suggested multiyear deal, Sibanye had offered R1,000 and R900 increases respectively and a 5% increase for the other employee categories, while the unions’ counter-offer was for a 5.5% increase for the other categories in both the second and third years. The difference between what Sibanye is offering and what the unions are demanding is R100 per month and a 0.5% increase for other job categories in the second and third years. Read the full original of the report in the above regard by Isaac Mahlangu at TimesLive Sibanye-Stillwater appoints Southern Africa head in new regionalised leadership structure BL Premium reports that Sibanye-Stillwater on Tuesday appointed COO Richard Stewart as chief regional officer for Southern Africa in a revamp of its leadership structure. Themba Nkosi, chief social performance officer focusing primarily on SA, becomes the chief sustainability officer. The precious metals producer said the changes were to “further advance its strategic delivery as a multinational mining and metals group”. It noted that it had “increased its geographical and commodity diversification since 2021 from which it will strengthen its regional presence in key markets”. Stewart joined Sibanye in 2014 and has more than two decades of experience in SA’s geological and mining industries. He has a PhD in geology from Wits and an MBA from the University of Warwick. “Richard is supported by an experienced and diverse regional leadership team with responsibility for all aspects of our Southern African business activities including its strategic growth,” the company indicated on Tuesday. Group CEO Neal Froneman said the regionalised leadership was exceptionally well suited to creating superior value and that the changes would “bolster our ability to execute on our strategic intent and continue to ensure operating excellence across the group”. Read the full original of the report in the above regard by Nico Gous at BusinessLive (subscriber access only) Other general posting(s) relating to mining
Cosatu, Saftu slam Ramaphosa's new BBBEE advisory council, saying move is ‘meaningless in face of an imploding country' SowetanLive reports that President Cyril Ramaphosa’s plan to establish a new broad-based black economic empowerment (BBBEE) advisory council has appeased organised black business, much to the annoyance of labour. Ramaphosa noted in his weekly newsletter on Monday that the purpose of the council was to champion the cause of economic transformation, where there had been significant progress over the past two decades, but regression in some areas. Black Business Council CEO Kganki Matabane said the body had engaged Ramaphosa and trade and industry minister Ebrahim Patel to appoint a council to demonstrate that the country took economic transformation seriously. He indicated: “There’s still short-trading. It’s still two-and-a-half years without council, which means their work of advancing black empowerment is not done.” But organised labour has slammed Ramaphosa’s plan, with Cosatu’s spokesperson Sizwe Pamla describing the move as “a complete waste of time”. He said: “This country does not need another advisory council. This is literally nothing but a distraction because nothing is moving in this country. An advisory council is meaningless in the face of an imploding country.” Pamla said BEE has failed to achieve economic transformation because corrupt government leaders used it to benefit their relatives and friends. He said the government should instead use the cabinet and the courts to push for implementation of policies. Saftu general secretary Zwelinzima Vavi said advisory councils were used as a smokescreen to divert attention from problems in the country. He stated that BEE was never going to help SA achieve economic transformation: “It made very few people rich while the rest of South Africa languish in poverty.” Read the full original of the report in the above regard by Nomazima Nkosi & Zoe Mahopo at SowetanLive
Saica and global accounting body CIMA agree on new path to dual designation status BL Premium reports that the SA Institute of Chartered Accountants (Saica), the oversight body for the local accounting profession, has signed an agreement with its global counterpart, the Chartered Institute of Management Accountants (CIMA), that will make it easier for their members to achieve the professional designations of the respective organisations. After five years of talks, the two bodies have agreed to make dual designation status more achievable. This will make it easier for local accountants to use both the coveted chartered accountant – CA (SA) – and Chartered Global Management Accountant (CGMA) designations. The new agreement also allows for holders of one designation to accelerate their membership of the other organisation through revised qualification paths. The two bodies have also agreed to a transitional arrangement. The CA (SA) designation has traditionally been seen as the gold standard by the local accounting industry and is virtually a prerequisite to becoming a CEO, with a significant proportion of the country’s corporate leaders sporting it. However, the qualification has come under scrutiny in recent years after a raft of accounting scandals ranging from Steinhoff to Tongaat Hulett has cast aspersions on the ethics of the industry. Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (subscriber access only) Other internet posting(s) in this news category
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