Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

news shutterstockIn our Thursday morning roundup, see
summaries of our selection of recent South African
labour-related reports.


WAGE NEGOTIATIONS

With declaration of dispute, PSA turns up the heat on government in bid for 10% wage hike

BL Premium reports that in a move that takes it a step closer to a strike by more than 200,000 public servants, the Public Servants Association (PSA) has lodged a dispute with the government after wage negotiations stalled. The declaration of the dispute kicks the talks to the Public Service Co-ordinating Bargaining Council (PSCBC) for mediation. It came after the PSA rejected the sweetened offer of 2%, which was tabled last week. The union wants an inflation-beating 10% increase across the board. If conciliation and mediation under the PSCBC fail to break the deadlock after 30 days, tens of thousands of PSA members, who include teachers, nurses and police officers, could down tools, said the PSA’s Reuben Maleka. In a statement, Maleka said the employer’s revised 2% offer, which was below the 5.9% headline inflation rate the SA Reserve Bank has forecast for 2022, was “offensive to employees” who have not received increases for the past three years. The offer is also below the 3% pay hike, recently announced and backdated to April 2021, for ministers and their deputies, premiers, MECs, MPs, MPLs, traditional leaders and judges. No date has been set for the conciliation and mediation process, said Oomang Parag, spokesperson for the PSCBC, who added that the parties would meet next week. The PSA’s posture threatens to put to the test the pledge by finance minister Enoch Godongwana to keep government spending under control after growth in public sector remuneration over the past decade far outpaced inflation and GDP growth.

Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)

Numsa demands pay hikes of up to 20% in auto manufacturing sector, but notes that ‘negotiations are give and take’

BL Premium reports that the National Union of Metalworkers of SA (Numsa) indicated on Wednesday that it was demanding wage increases of up to 20% in the automotive assembly industry. Numsa general secretary Irvin Jim advised that the union had already held three sessions with the Automobile Manufacturers Employers Organisation (Ameo), the employer body representing BMW SA, Toyota SA, VW SA, Mercedes-Benz, Ford, Isuzu and Nissan. Jim said: “Obviously, workers are demanding a double-digit increase [in the automotive sector] — 20%. But as you know, negotiations are give and take. The demands can be between 10% and 20%, depending on how you persuade the other party to move.” Jim was adamant that the automotive sector could afford the wage demands as it was a “profitable business”. He stressed that the union had always settled for multi-term pay hike deals to ensure stability in the sector, “so that we don’t end up with a strike every year”. There was a possibility of a strike in various sectors should employers refuse to make meaningful offers, said Jim. Ameo spokesperson Andile Dlamini responded: “We are not in a position to comment on the position of the two parties ... The parties met last week and will meet again next week. The two parties are still in the early stages of the negotiations and cannot make a determination on the duration of the talks yet.” Numsa president Andrew Chirwa echoed Jim, saying a strike would be a last resort. “When we strike [it means] we have no choice because workers lose benefits during a strike. If employers do what [we witnessed] at Eskom, then definitely there will be a strike. The sooner we find solutions the better,” he said.

Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)


SARS WAGE STRIKE

'Strike as long as you like, no new wage offer until we get money from Treasury', says SARS

In an interview with The Money Show’s Bruce Whitfield, SA Revenue Service (SARS) Commissioner Edward Kieswetter discussed the renewed wage strike at the agency by members of the Public Servants Association (PSA) and the National Education, Health and Allied Workers’ Union (Nehawu). In a nutshell, the unions want a salary increase of CPI (5%) + 7%, across the board. SARS responded with a counter-offer of 1.3% after the first bout of strike action in May. Kieswetter said it must be remembered that it was not the revenue service that allocated its own budget. He explained: “The central point that I have to register (because there's miscommunication about it) is that SARS does not decide its budget! SARS gets allocated funding from National Treasury and therefore, quite frankly, our unions can stay out as long as they want to – SARS is not able to put another offer on the table until and unless we get money from National Treasury.” He went on to say: “It's on public record - in my last Parliamentary appearance - that SARS is significantly underfunded. Whether we need the extra money for salary increases is another matter.”   Kieswetter emphasised that it would be irresponsible of him to negotiate outside of the bounds of what he had been allocated. Kieswetter emphasized that he had been "more than transparent" with the unions and had shown them the breakdown of the SARS budget allocation.   On Wednesday just over 65% of SARS employees were at work out of 12,800 employees, according to Kieswetter.

Listen to the full interview with the SARS Commissioner on The Money Show at EWN


OCCUPATIONAL SAFETY

Murder of two community correctional officials highlights that minister must prioritise safety, says PSA

TimesLive reports that the Public Servants Association (PSA) lamented on Wednesday that lawlessness had reached unprecedented levels and law-enforcement officers were no longer feared by criminals.   This was said by the PSA as it condemned the “senseless and barbaric” killing of two Boksburg community correctional officers in Duduza on Tuesday. The officers were murdered while pursuing a parolee who had absconded. “The situation is worsened by severe staff shortages in the department of correctional services (DCS) and the leniency of the system in offering unmerited parole to unworthy offenders.   It is well documented that the DCS is severely understaffed, which is contributing to ongoing violent attacks on correctional officers by inmates,” said the union, which represents more than 14,000 employees at the DCS. The union said it had been informed about a shortage of batons and safety vests, which further exposed the employees to risks. It said: “The PSA cannot stand by and see that these employees are attacked when the DCS is doing nothing to ensure that its establishment is strengthened and that correctional officers are equipped with the required safety equipment.”   The PSA urged justice and correctional services minister Ronald Lamola to prioritise the safety of correctional officials by ensuring the DCS was adequately resourced in terms of staff and required equipment.

Read the full original of the report in the above regard by Ernest Mabuza at TimesLive


ESKOM

Ratings agency expects diesel and wages to push Eskom loan up by an extra R45bn

Bloomberg News reports that indebted power utility Eskom may need to borrow an extra R45bn to purchase diesel and pay inflation-beating salaries to workers, according to S&P Global Ratings. That would be a 50% increase from S&P’s borrowing forecast for Eskom in November, said Omega Collocott, director of corporate ratings for SA at the company. The utility had a funding plan of R24.4bn for the year to March, according to a company presentation in November. SA has had to endure hours of outages in the past few weeks as labour strife and breakdowns at coal-fired plants forced Eskom to resort to rolling blackouts. The elevated use of diesel-fed turbines, the wage deal and a tariff increase that didn’t meet the company’s requirement left the utility with a bigger-than-anticipated hole in its finances. The utility has about R396bn in debt. Fitch Ratings last week said that the poor finances of many public enterprises posed considerable risks to public finances. Without giving a time frame, Fitch said indicated that Eskom was expected to require additional financial support of about R150bn, “which is not factored into our debt forecast due to the uncertain timing and form of support”.

Read the full original of the report in the above regard by Colleen Goko & Prinesha Naidoo at BusinessLive

'This is just the beginning', says Eskom as it welcomes arrests of former ABB Group employees for corrupt Kusile deal

Fin24 reports that power utility Eskom said on Wednesday that the four arrests in relation to a corrupt ABB Group contract for work at the Kusile power station were hopefully just the beginning and that it expected more arrests to follow soon. It was reported on Wednesday that two former employees of the Swiss engineering firm and their wives were arrested by the Investigating Directorate of the National Prosecuting Authority (NPA) in a joint operation with the Hawks and the SA Revenue Service on Tuesday. The accused are Muhammed and Raeesa Mooidheen and Vernon and Aradhna Pillay. The matter concerns a corrupt contract awarded during the construction of Kusile in 2015 of about R2.2 billion. ABB irregularly appointed Impulse International as a sub-contractor and paid it R549 million in 2016 and 2017. At the time, former acting Eskom CEO Mathsela Koko's stepdaughter, Koketso Choma, was a shareholder of Impulse. "Eskom congratulates the NPA's Investigating Directorate on the arrests in this case, and pledges to do everything in its power to assist the investigations to bring about successful prosecutions. Eskom also hopes this is just the beginning and that more arrests will follow on this matter, and on the more than 100 other criminal cases lodged with the law enforcement agencies over the years," the power utility said. The former employees are accused of using their influence to get kickbacks estimated at over R6 million. This also allegedly benefitted their spouses. Some of the assets belonging to the accused and their spouses have been seized by the Asset Forfeiture Unit. The accused have been released on bail and will appear in court on 14 October.

Read the full original of the report in the above regard compiled by Lameez Omarjee at Fin24. Read too, Eskom welcomes arrest of former ABB Group employees, at Engineering News. En ook, Eskom verwelkom inhegtenisneming van bedrieërs, by Maroela Media

Other internet posting(s) in this news category

  • Power cuts sends manufacturing production in SA on a downward spiral, at Business Report
  • Eskom blackouts impede R93m Transnet fraud and corruption hearing, at Mail & Guardian


UNION AFFAIRS

Numsa suspends deputy president Ruth Ntlokotse, finalises plans for national congress

Engineering News reports that the National Union of Metalworkers of SA (Numsa) has decided, after holding a special central committee (SCC) meeting on 12 and 13 July, to suspend its second deputy president Ruth Ntlokotse. This comes days before it plans to hold its eleventh national congress in Cape Town.   The national congress, where Numsa plans to elect new leadership, is due to take place from 25 to 29 July.   Numsa secretary general Irvin Jim said Ntlokotse, who is also SA Federation of Trade Unions (Saftu) president, was suspended because Numsa’s SCC “felt that [her] conduct . . . undermined the organisation and its unity.” He indicated: “[Ntlokotse] has defined [herself] outside the collective leadership of the national office bearers. As such, the SCC took a decision to place [Ruth] under suspension, pending a fair disciplinary process of the organisation.” In addition, Jim reported that the Numsa SCC decided that those who disrupted a recent Saftu national congress should not be allowed to attend the upcoming Numsa national congress. Numsa used the SCC to deal with final preparations for its national congress, including preparing the congress documents, the budget, the logistics and policy discussion documents. As part of these preparation, Numsa opened nominations for its national leadership on 13 July. In the run-up to the national congress, Numsa has also been working on relaunching its nine regions – a process that has been concluded, with two-thirds majority voting in favour. As such, eight out of the nine Numsa regions successfully held regional congresses and elected new leadership.

Read the full original of the report in the above regard at Engineering News

Irvin Jim claims Numsa is target of 'propaganda attack' ahead of its national conference

Fin24 reports that according the general secretary of the National Union of Metalworkers of SA (Numsa), Irvin Jim, the union was being attacked by propaganda campaigns on social media aimed at sowing division ahead of its conference. The union’s upcoming elective conference is set to take place at the Cape Town International Convention Center from 25 to 29 July. Jim said individuals have been "tip-toeing in the shadows", setting up groups on social media platforms like the Facebook group "the Numsa we want" and "Numsa 2". "What is disturbing is that they behave in a disruptive manner and the faction calling itself Numsa 2 has been spreading misinformation ahead of the conference. The goal of this faction is clear. They want to impose their own leadership on the union. If they fail, they will work to collapse and liquidate the union," said Jim. Also at issue will be 3Sixty Life, the life insurance subsidiary of the Numsa Investment Company, which was placed under curatorship last year.   Jim defended his bid to halt 3Sixty Life's curatorship as a step to preserve a business that worked to improve the lives of workers. When asked if he would stand for re-election as general secretary at the conference, Jim said such a question was "premature". He indicated that nominations were open until 22 July and would be handled by an external electoral body. Jim asserted that the union must emerge from the conference with a renewed commitment to advancing workers' interests in tandem with the SA Federation of Trade Unions (Saftu), the Socialist Revolutionary Workers Party (SRWP) and the United Front (UF).

Read the full original of the report in the above regard by Khulekani Magubane at Fin24


MUNICIPAL REPORTS

Madibeng local municipal council in North West rocked by unprocedural appointment of acting municipal manager

The Citizen reports that the ongoing political disagreements among councillors at Madibeng local municipality in North West has resulted in the unprocedural appointment of an acting municipal manager.   Defying a council decision, council speaker Ditshego Mbedzi unilaterally appointed Motlalekgomo Mmope as acting municipal manager. Mbedzi allegedly took Mmope instead of Moruti Tsotetsi, the candidate recommended earlier by council. But, Mbedzi was adamant that she had the power to make the appointment, despite the Municipal Systems Act of 2000 stipulating that a municipal council must appoint a municipal manager or acting municipal manager. Madibeng municipality had had no municipal manager for several years. Even Mmope was acting when her contract expired on 5 July this year. But Democratic Alliance (DA) councillor Jan van Rhyn is not standing for Mmope’s irregular appointment and has challenged Mbedzi on her unilateral decision to appoint Mmope. He supported the council decision taken at a special council meeting on 8 July that Tsotetsi be appointed as acting municipal manager.   The council decided that Tsotetsi would be acting municipal manager pending the appointment of a permanent manager or the secondment of an acting municipal manager. In terms of the law, MEC for cooperative governance and traditional affairs Lenah Miga should second an official to do the job.

Read the full original of the report in the above regard by Eric Naki at The Citizen (subscriber access only)

Other internet posting(s) in this news category

  • ‘Hold municipal managers to account’ after decline in audit outcomes for Gauteng municipalities, at The Citizen (subscriber access only)


SKILLS DEVELOPMENT / TRAINING

Reservations about proposal in parliament for children of farmworkers to be trained to manage farms

Cape Argus reports that farmworkers’ representatives have expressed reservations about a proposal expressed in parliament designed to ensure the children of farmworkers were trained and enabled to manage farms in a bid to prevent generational entrapment as unskilled and cheap labourers. Last week portfolio committee on employment and labour chairperson Lindelwa Dunjwa (ANC) stated: “If the first generation of farm labourers was unskilled, it can’t be that their offspring must be trapped in this perpetual circle of an unskilled labour force.” Dunjwa said the Department of Employment and Labour (DEL) should consider introducing skills transfer levies in place in other sectors of the labour market as a means of enticing farm owners to oblige. She recommended that the department should have career guidance campaigns that would expose the children of farmworkers to career paths that were part of the ecosystem of the industry and make bursaries available to those with academic potential, especially young girls. However, Commercial, Stevedoring, Agricultural and Allied Workers Union deputy general secretary Denico Dube said while the proposal was a good idea, they were not sure the DEL could cope with implementation.   He said the department could not cope with the existing legislation’s workload and enforcements, so it would be difficult for them to implement the proposals. In the Western Cape, the issue is already being tackled through the provincial agriculture department’s Elsenburg Agricultural Training Institute, which offers learnership programmes to children growing up on farms and farmworker children.

Read the full original of the report in the above regard by Mwangi Githahu at Cape Argus


ALLEGED CORRUPTION / FRAUD

‘Unscrupulous’ home affairs officials issued thousands of fraudulent visas and permits

BusinessLive reports that MPs heard on Tuesday that an estimated 45,000 fraudulent visas were issued by the Department of Home Affairs (DHA) between 2014 and June 2021 and the figure could be higher after a deep-dive investigation has been conducted. The provisional figure was provided by Cassius Lubisi, a former director-general in the presidency and chair of a review panel appointed by DHA Minister Aaron Motsoaledi in February last year to review all visas and permits issued by the department from 2004 to the end of 2020 to identify irregularities. Lubisi briefed parliament’s home affairs committee on the panel’s findings and recommendations, noting that there was a persistent and fraudulent “onslaught” on the department by applicants for permits and visas. The panel has recommended that a multidisciplinary investigating team be appointed to conduct a thorough analysis and forensic investigation into individual permit and visa approvals. Lubisi said this could result in certain visas being withdrawn, people being deported and criminal prosecution or disciplinary action instituted against DHA officials where fraud was detected. Lubisi described how “unscrupulous” DHA officials had created fake users on the system to issue fraudulent documents and how there was a deliberate bypassing of controls to manipulate visa and permit applications. Evidence of criminal wrongdoing has already been handed over to the Hawks and is now under investigation. Six officials were dismissed last year, four are on suspension and others face disciplinary action.

Read the full original of the report in the above regard by Linda Ensor at BusinessLive. Read too, Home Affairs granting retirement visas to people younger than 25, at SowetanLive. And also, Foreigners obtain study visas in a day, task team finds, at News24

Property Practitioners Regulatory Authority charges its CEO Mohlala-Mulaudzi with fraud and corruption

The Citizen reports that the board of the Property Practitioners Regulatory Authority (PPRA) has decided to charge its suspended CEO Mamudupi Mohlala-Mulaudzi and haul her before a disciplinary inquiry for maladministration, misrepresentation, fraud and corruption.   PPRA Board member Pamela Makhubela advised that they would also be reporting the alleged acts of criminality to relevant law enforcement agencies. She said investigators managed to finalise a probe despite lack of cooperation from Mohlala-Mulaudzi and implicated parties and that “based on the serious nature of allegations and corresponding findings pointed out by the investigation thus far the board has resolved to prefer charges against the CEO and those implicated”. The allegations relate to irregular appointment of personnel and pension fund irregularities, with new evidence that came to light during the investigation pointing to procurement irregularities, misrepresentation and fraud.   Makhubela reported that the PPRA Board had received a whistle-blower report from the Public Service Commission in December 2021. “The PSC report contains serious allegations requiring the board to investigate and, where necessary take appropriate action,” Makhubela said.   Due to the inadequate nature of the CEO’s response to the allegations, she said the board placed her on precautionary suspension in March pending the investigation. Makhubela indicated that the investigation was still ongoing and that the board had received a report from investigators decrying the failure by implicated personnel, including the CEO, to cooperate. She said the board had also noted with concern attempts to distract and blackmail the chairperson Steven Ngubeni.

Read the full original of the report in the above regard by Sipho Mabena at The Citizen

Other internet posting(s) in this news category

  • Jail for Pretoria creditors' clerk who stole R4m from her employer, at TimesLive


OTHER HEADLINES / ARTICLES OF INTEREST

Ashton inmaakfabriek se redding verwelkom, by Maroela Media

Lesufi moet pa staan ná onnie onregverdig afgedank is, by Maroela Media

Joburg Mayor commends Metrobus for completing refurbishment of 105 buses, at Engineering News

Joburg needs R41m to fix three Rea Vaya bus stations damaged during service delivery protests, at SowetanLive

 


Get other news reports at the SA Labour News home page