In our Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Comair placed in provisional liquidation by High Court Fin24 reports that Comair, which operates Kulula and regional flights for British Airways, was placed in provisional liquidation by the South Gauteng High Court on Tuesday due to the airline not being able to meet its financial obligations. Comair is not able to pay aircraft storage, maintenance and insurance costs anymore. According to the company's business rescue practitioners (BRPs), the liquidation is necessary for Comair to preserve its fleet of aircraft, valued at about R3.5 billion, for the benefit of creditors. "We are of the view that there is no longer a reasonable prospect of rescuing Comair so (are) asking to discontinue business rescue and place it in liquidation. There is no longer a fair or moderate possibility of substantially implementing Comair's approved business rescue plan," BRP Richard Ferguson stated in court documents. All affected parties have until 26 July to provide the court with reasons why the provisional liquidation order should not be made a final order. The company employs about 2,000 people. It decided to go into business rescue in May 2020 and its business rescue plan, adopted in September 2020, anticipated that about 1,800 jobs would be preserved if Comair could be returned to sustainability. Trade union Solidarity said on Tuesday that it was sad about Comair going into provisional liquidation and that it was attempting to facilitate its members into work by engaging with local and international employers regarding possible recruitment opportunities. Read the full original of the report in the above regard by Carin Smith at Fin24. Read too, Comair flies into liquidation with assets of R3.5bn and liabilities of R4bn, at BusinessLive (subscriber access only). En ook, Comair se likwidasie toegestaan, by Maroela Media
Police officer killed, another critically injured in shootout on Monday along the N12 in Joburg News24 reports that a police officer was killed and another critically injured during a shootout along the N12 in Johannesburg on Monday afternoon. The two police officers had responded to complaints of a truck believed to have been hijacked on the N12. The perpetrators took the deceased officer's firearm and handcuffs. Gauteng police spokesperson Colonel Athlenda Mathe said: "The second member, a 33-year-old constable, was found in a nearby bush [with gunshot wounds] in an unconscious state and he was airlifted to a nearby hospital for medical care." According to a police report, the officer in critical condition had been shot in the face, shoulder, upper arm and wrist. The police have launched a manhunt, and are investigating murder and attempted murder cases. Read the full original of the report in the above regard by Alfonso Nqunajana at News24
SCA dismisses minister's appeal on tobacco products ban during lockdown TimesLive reports that the Supreme Court of Appeal (SCA) on Tuesday agreed with an earlier Western Cape High Court judgment that the regulation banning the sale of tobacco products during Covid-19 lockdown was invalid. The SCA dismissed an appeal by co-operative governance and traditional affairs minister Nkosazana Dlamini-Zuma against the 20 December high court judgment. The SCA also upheld a cross-appeal by farmers, tobacco processors, manufacturers, retailers and consumers and ordered the minister and the president to pay their costs in the high court. In March 2020, the minister made a series of regulations to contain the spread of Covid-19, including a ban on the sale of tobacco products, e-cigarettes and related products. In June 2020, British American Tobacco, JT International SA and consumers of tobacco products launched a court application seeking an order declaring regulation 45, which banned the sale of tobacco products, unconstitutional and invalid. The matter was heard by a full bench of the court in August 2020 and judgment was reserved. Later that month, the minister lifted the ban on the sale of tobacco products. Despite the lifting of the ban, the court passed judgment in December 2020 declaring the regulation inconsistent with the constitution and invalid. In its appeal judgment on Tuesday, the SCA said it had not been established as evidence that there was a causal link between smoking and the risk of contracting a more severe form of Covid-19. As regulation 45 was not necessary to achieve any of the purposes of the Disaster Management Act, it was invalid. Read the full original of the report in the above regard by Ernest Mabuza at TimesLive. Lees ook, Tabakboere verwelkom uitspraak in appèlhof teen Dlamini-Zuma, by Maroela Media Health Department e-mails view public opposition to proposed new regulations as ‘instigating terrorism’ Moneyweb reports that “anti-progressive”, “instigating terrorism”, “sabotage” and “forcing government to waste resources” are how groups opposed to government’s proposed health regulations are characterised in internal emails floating around the Department of Health. The emails were discovered during a court process initiated by public participation group DearSA, which received more than 300 000 comments from South Africans on proposed changes to health regulations that would arm the state with unprecedented powers to contain future outbreaks of ‘notifiable diseases’ such as Yellow Fever, Smallpox and Covid. Under the proposed regulations, the government plans to award itself vast powers to forcibly test for notifiable diseases, impose mask mandates and forcibly quarantine South Africans at the order of a doctor, nurse or law enforcement official. Of the more than 300,000 comments on these regulations received by DearSA, 95% were against them. Four groups are named as engaged in ‘sabotage, instigating chaos or terrorism against the state’, according to the discovered emails. The four groups named are purportedly AfriForum, DearSA, Liberty Fighters Network and Action 4 Freedom, all of which are involved in a legal battles with government over the health regulations. DearSA project manager Rob Hutchinson said the emails showed “a level of contempt for the public, and a complete disregard for the Constitutional obligation on government to foster public participation and listen to the views of the public”. Attorney Daniël Eloff, representing both DearSA and AfriForum, commented: “We believe it shows the state of mind of those making decisions within the department, and we think the public needs to be made aware of how they are viewed by those tasked with making regulations. It is pretty shocking, to say the least.” DearSA’s and AfriForum’s case against the interim Covid regulations will be in court on 25, 26 and 27 July. Read the full original of the report in the above regard by Ciaran Ryan at Moneyweb World Bank approves low-interest loan of over R7.5bn for SA’s Covid-19 vaccine programme Fin24 reports that the World Bank has approved a €454.4 million (R7.6 billion) low-interest loan to help fund SA’s purchase of vaccines. The government had asked for assistance in financing vaccine procurement. This loan will now retroactively be used to finance the country’s acquisition of 47 million Covid-19 vaccine doses. As of Monday, more than 36.4 million doses of Covid-19 vaccines had been administered. Just over 50% of the country's adults, and 29.9% of 12 to 17-year-olds had been vaccinated. The Treasury and the World Bank said in joint statement that more could be done to increase vaccine coverage and boost SA’s economic recovery. "The loan forms part of government efforts to reduce debt service costs by making use of cheaper sources of funding through multilateral development banks, whilst supporting the health system to respond to Covid-19 through the roll-out of vaccines, critical research, and treatment measures," acting Treasury director-general Ismail Momoniat said in the statement. "This support aims to put the country on a more resilient and inclusive growth path by boosting South Africa’s Covid-19 vaccination efforts with the goal of vaccinating up to 70% of the country’s target population. This project builds on our new World Bank Group country partnership framework 2022 – 2026, jointly developed with the government in July 2021 to help stimulate investment and job creation," said Marie Françoise Marie Nelly, the World Bank’s country director for SA. Read the full original of the report in the above regard compiled by Ahmed Areff at Fin24. Lees ook, R7 miljard-lening vir SA se Covid-program, by Maroela Media Other internet posting(s) in this news category
Tshwane Bahlali Dudula leads march of young people to Ford Motor Company to demand jobs Pretoria News reports that a large crowd of young people from Mamelodi, Nellmapius and Eersterust marched on Tuesday to the headquarters of Ford Motor Company and the Tshwane Automotive Special Economic Zone to demand the employment of young people who resided in their communities. The demonstration was organised and led by Tshwane Bahlali Dudula to encourage businesses to hire young people who were sitting with skills and qualifications in the townships and struggling to provide for themselves and their families. Organiser, Khutso Smesh Semetjane, said they targeted the two economic nodes because they wanted them to hire young people from neighbouring communities instead of people from far away. Semetjane was followed by a large wave of young people displaying qualifications like trade test certificates, curriculum vitaes and driving licences to indicate that they were also skilled and qualified to work but only needed an opportunity. One participant said: "Youth Day is coming on Thursday. Can these companies please remember us because we are the future. We will continue to push this agenda and also go to industrial areas like Waltloo Industrial Site where some firms have been hiring foreign nationals at the exclusion of South Africans." Semetjane said the movement was not associated to the Dudula movement led by Nhlanhla Lux. He explained that they had common interests to see young South Africans employed, although their approach differed. Read the full original of the report in the above regard by James Mahlokwane at Pretoria News Fees levied by the City of Johannesburg on organisers of protests unconstitutional, High Court rules GroundUp reports that Johannesburg High Court Judge Margaret Victor has ruled that fees levied by the City of Johannesburg on organisers of protests and pickets are unconstitutional. “As a constitutional democracy, it is imperative that we move towards a position of facilitating rather than oppressing those who seek to exercise their constitutional rights to protest. This is indeed a matter of public concern, and it is my hope that this judgment will have implications for the exercise of the right to assemble, for the applicants, and for the public at large,” Judge Victor stated. The application was launched by the Right2Know Campaign (R2K) and the Gauteng Housing Crisis Committee with the assistance of the Centre for Applied Legal Studies, on the basis that the levying of fees – sometimes as much as R15,000 – stymied the constitutional right to protest. The applicants argued that many protests represented people who were unemployed and poor – and were organised by “working class activists” who wanted to highlight “bread and butter” and service delivery issues. The levying of a fee by the Joburg Metropolitan Police Department (JMPD) and the City of Johannesburg, posed a real risk of people being deterred from exercising their constitutional right to assembly, demonstrate, picket and petition, it was argued. They said the request for a fee was presented “as though it was a precondition for approval”. This was not authorised by the Gatherings Act. The City and the JMPD opposed the application. They argued that the City has legislative power through the Municipal Systems Act to levy fees for services, such as the need for increased traffic policing as a result of protests. They claimed all non-governmental and non-profit organisations were given an 80% discount and denied that the payment of the fee was conditional for approval for an event to go ahead. Read the full original of the report in the above regard by Tania Broughton at GroundUp
Harmony employees in Free State contribute R1m worth of donations in response to KNZ flood disasters Mining Weekly reports that employees at Harmony Gold's operations, in Free State, have contributed R1-million worth of donations to the KwaZulu-Natal (KZN) government in response to the recent floods that left over 7,600 people homeless. The donations, including 200 mattresses, 283 blankets, 130 pillows, 242 fitted sheets, clothes, toiletries and groceries valued at R400,000 and a R600,000 cheque, were handed over to the KZN government by Harmony executive director Harry Mashego last week. “We are inspired by the support from Harmony Gold Mining employees and various stakeholders for the support given to the people of KwaZulu-Natal during this time,” Premier Sihle Zikalala said. Read the original of the short report in the above regard at Mining Weekly Other general posting(s) relating to mining
Gauteng hospitals hit by staff shortages, lack of equipment and security challenges SowetanLive writes that the dire conditions recently laid bare by a medical doctor at the Rahima Moosa Hospital in Johannesburg are a true reflection of problems experienced by Gauteng hospitals. Last week, paediatrician Dr Tim de Maayer penned an open letter, exposing the dire conditions at the hospital. He was then suspended, but has since been reinstated. Unions on Monday indicated that problems faced by public health facilities included staff shortages, lack of equipment and security issues. Nehawu provincial general secretary Mzikayise Tshontshi said hospitals like Thelle Mogoerane Regional Hospital in Vosloorus on the East Rand had infrastructure issues, while the lack of staff was also a problem. “You can look around Gauteng and you will see that the state of infrastructure leaves much to be desired,” Tshontshi claimed. He asserted that the department’s leadership needed to take decisive action to resolve the issues. Denosa’s Bongani Mazibuko said poor health services in the province were a never-ending cycle. He said facilities such as Steve Biko Academic Hospital in Pretoria and Tembisa Hospital on the East Rand were still operating on a staff complement for 2010 while the province’s population had grown. Mazibuko called for the department to act speedily to address staff shortages and to refurbish broken infrastructure. During her budget vote speech in May, health MEC Dr Nomathemba Mokgethi indicated that the department had received a budget of R59.4bn and a further R178.2bn over the 2022 medium-term expenditure and that this would be allocated towards improving healthcare. The department also released a detailed statement on the state of affairs at Rahima Moosa, reflecting that increased admissions and service interruptions were an issue. But, it maintained that healthcare in the province was still intact. Read the full original of the report in the above regard by Zoë Mahopo at SowetanLive
PIC looking to boost investment in unlisted assets to create jobs, transform economy Fin24 reports that the Public Investment Corporation (PIC) is seeking to up its share of unlisted investments from 5% of its portfolio to 25% over the next five years to create jobs. The state-run asset manager has about R2.5 trillion in assets under management, which it invests on behalf of the Government Employees Pension Fund (GEPF) and other government funds. Some 95% of its portfolio is currently invested in shares that trade on the Johannesburg Stock Exchange, bonds, money market accounts, and listed properties. Smaller amounts are also invested in global bonds and shares. The group's acting CEO Makano Mosidi, told a parliamentary oversight committee that increasing the weight of unlisted investments would help create jobs. "We are focusing on lifting the unlisted side because globally, that leg, that asset portfolio is the one that will ensure that we create jobs and transform the economy. The biggest focus in the next five years is looking at whether we can move that 5% to the visionary 25%. Of course, we will take it in stages," she indicated. Mosidi, the group's chief technology officer, is temporarily acting as CEO in place of Abel Sithole, who is ill. Sithole is expected to return to work on 20 June. Read the full original of the report in the above regard by Jan Cronje at Fin24 Treasury’s two-pot retirement plan largely rejected, Sanlam survey reveals BL Premium reports that more than half of those who took part in the latest annual Sanlam benchmark survey are opposed to the Treasury’s proposal to give individuals limited access to their retirement savings before retirement via the so-called two-pot system. The proposal seeks to strike the right balance in helping members save for retirement while being flexible enough to accommodate them when they have fallen on hard times. This is just one of many findings in the 2022 survey, which polled 83 principal officers of stand-alone funds, 100 participating employers in umbrella funds, 15 asset consultants, 15 healthcare consultants, six top umbrella fund sponsors and 500 online consumers. “Those in the [retirement] industry do not believe that implementing the two-pot system by March 2023 is realistic, as it involves ‘an enormous amount of work’,” Sanlam said in a release on Tuesday. Just more than half of the members who took the poll were aware of the two-pot system but 56% said they did not agree with it, with 29% saying if the law were changed they would “definitely not” access their retirement funds early, with 20% saying they “probably” would not. The Treasury proposal includes one accessible pot comprising one-third of contributions from which withdrawals could be made before retirement and a two-thirds preservation pot that would be kept intact until retirement. The researchers also found that 55% of retirement fund members have experienced reduced household income due to Covid-19, which has claimed as many as 2-million jobs over the past two years in SA. In the research, they highlighted that income reduced in more than 55% of SA households and more than 16% were affected by retrenchments. Nearly 10% were forced to take unpaid leave or sabbaticals. In 7% there were deaths with loss of income. Read the full original of the report in the above regard by Andries Mahlangu at BusinessLive (subscriber access only)
NHI will be implemented incrementally, says Health Minister BL Premium reports that the government plans to implement National Health Insurance (NHI) incrementally and gradually phase out the role medical schemes play in funding private healthcare services. This was indicated by Health Minister Joe Phaahla on Tuesday at a virtual event hosted by medical scheme administrator Momentum Health Solutions (MHS). “NHI is not going to be something that happens at a go, at full blast. Medical schemes will continue to cover those aspects that NHI is not covering at the introductory level,” Phaahla told delegates. NHI is the government’s plan for achieving universal health coverage and aims to ensure everyone has access to health services that are free at the point of delivery. It aims to pool finances in a central fund that will buy services on behalf of the population, with the rich and healthy subsidising the poor and sick. The first piece of enabling legislation, the NHI Bill, is currently before parliament. Phaahla’s comments are likely to provide some comfort to the R219bn medical scheme industry, as they signal a continued role for funders for at least several years to come. The role of medical schemes is one of the most contentious and ambiguous aspects of the bill. Damian McHugh of MHS noted that there appeared to have been a welcome shift in the government’s view on how to implement NHI, away from a big-bang approach. It could take years, perhaps as long as a decade, for NHI to complete the implementation of primary healthcare cover, he pointed out. During this time, medical schemes would continue to provide cover for secondary and tertiary services. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only)
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