This 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.
In our Friday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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As it confronts inflation with the biggest interest rate increase in two decades, Reserve Bank signals more hikes ahead BL Premium reports that on Thursday the SA Reserve Bank (SARB) surprised with the highest increase in borrowing costs in two decades, underlining governor Lesetja Kganyago’s determination to tame rampant inflation and also signalling an acceleration in the pace of interest rate hikes. The Bank’s monetary policy committee (MPC) raised the repurchase (repo) rate by 75 basis points (bps) to 5.5% from 4.75%. Highlighting upside risks to inflation, which focused on food, fuel and wages, the Bank said it revised its forecast for headline inflation in 2022 significantly higher to 6.5%. The increase comes amid growing worries that SA could be thrown into stagflation, an unwelcome mixture of low economic growth and high inflation. Kganyago said the MPC’s decision was to preserve credibility and to avoid a situation where short shocks such as steeply rising fuel and food prices ended up changing long-term expectations from price setters such as unions, consumers and businesses. “We hear the cries of South Africans that inflation is eroding their income, their salaries and their wages. And we are determined as the Reserve Bank to protect the income of South Africans and the steps that we have taken so far to act against rising inflation demonstrates our determination to protect the incomes of South Africans,” he indicated. Stanlib chief economist Kevin Lings said without rate hikes, SA had a high risk of quickly developing a self-reinforcing upward spiral in inflation driven by wage demands. Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only). Read too, Interest rates increased by 75bps - biggest hike in almost 20 years, at Fin24. En ook, Grootste repokoersverhoging in dekades, by Maroela Media
Cosatu slams Eskort for dismissing 1 500 workers in Heidelberg after strike Fin24 reports that according to labour federation Cosatu, meat processing company Eskort has undertaken a mass dismissal of its employees at an operation in Heidelberg, Gauteng. This was amid wage negotiations between Eskort and employees, in which Eskort offered workers a 6% increase, while workers demanded 15%, as well as the conversion of casual workers into permanent employees, a housing allowance, medical aid, and equal salary for work of equal value. Cosatu said even though workers downed tools in Heidelberg after rejecting the offer, they returned to duty when Eskort instructed them to do so. But, according to Cosatu, Eskort proceeded to dismiss the employees once they returned to work. The dismissal letters issued by Eskort apparently allege that workers refused to return to duty. "Shortly after workers resumed their duties, the company issued notices of dismissal to more than 1,500 workers. While dealing with the shock of terminations, workers were informed to reapply for their jobs," Cosatu indicated. Cosatu called on Eskort management to reinstate all dismissed workers with immediate effect and allow for constructive engagements to take place. "If this call is not heeded, Cosatu will have no option but to initiate a fierce process that will ensure the reinstatement of these workers," the federation said. The company declined to comment on the matter. Read the full original of the report in the above regard by Khulekani Magubane at Fin24
EFF protesters in ongoing three-week occupation of health department’s Tshwane district office, allegedly demanding work The Citizen reports that it is still unclear exactly why members of the Economic Freedom Fighters (EFF) have been protesting at the Gauteng health department’s Tshwane district office for the past three weeks. When the protesters arrived at the office at the beginning of this month, they allegedly demanded jobs. They have since refused to leave, with some members believed to be camping there. Last week, EFF members went to the district office where they allegedly forced 200 staffers out of their offices. Democratic Alliance Gauteng shadow health MEC Jack Bloom said his party was alarmed that EFF members had blockaded the office and forced the staff members, mostly human resources and field staff, out of their offices. He said the trouble started three weeks ago when about 40 EFF members arrived in the lobby of the Fedsure Building in Pretoria and allegedly harassed staff. Bloom said he was concerned after hearing the members had gained access to two floors of the building, where confidential files were being stored. He added the department could not be forced to provide jobs to members of any political party. The police had not been effective in removing the protesters, who have efused to leave. Gauteng health head of communication Motalatale Modiba said the department was working on getting a court interdict to evict the protesters from the building. “The department had several engagements with the protesters leadership but, unfortunately, we could not find each other on this matter,” he said. The EFF did not responded to attempts to obtain comment about the alleged protest for employment. Read the full original of the report in the above regard by Marizka Coetzer at The Citizen
Police arrest 24 illegal miners in Limpopo, 22 of whom were found to be in SA illegally The Citizen reports that police in Limpopo on Wednesday arrested 24 suspected illegal miners in the Sekhukhune area and confiscated mining equipment and unprocessed chrome. The police, together with the Department of Home Affairs, Department of Mineral Resources, immigration officials, EMS and Phoenix mine security, conducted the operation in the Atok area in Sekhukhune district. Lieutenant Colonel Malesela Ledwaba said 22 of the 24 suspects were found to be in the country illegally. During the operation, police confiscated 13 jackhammers, seven buckets, one generator, 11 shovels, three electrical cords, chrome and R16,450 in cash. The suspects, aged between 19 and 54, were expected to appear at the Sekhukhune Magistrate’s Court on Thursday to face charges of illegal mining, possession of suspected illegal mining equipment as well as chrome, and contravention of the Immigration Act. The Provincial Commissioner of Limpopo, General Thembi Hadebe, welcomed the arrests. Read the full original of the report in the above regard by Kgomotso Phooko at The Citizen Other general posting(s) relating to mining
NUM becomes part of the Metal and Engineering Industries Bargaining Council Engineering News reports that the National Union of Mineworkers (NUM) has become a member of the Metal and Engineering Industries Bargaining Council (MEIBC) after completing a membership verification process. The union extended its scope in 2020 and amalgamated with the Liberated Metalworkers' Union of South Africa in 2021. As a result, workers have been joining the union in significant numbers, which led to its application, in March, to join the MEIBC. "The NUM is delighted with the fact that members in the sector shall have a new voice . . . in addressing multiple challenges confronting workers. We are also committed to working with progressive organisations in the Council to advance the interest of our members," the union said. Read the original of the short report in the above regard at Engineering News
Over 50 officials banned from Numsa conference as shop steward drama gets worse Fin24 reports that National Union of Metalworkers of SA (Numsa) shop stewards from around the country learned on Wednesday that they would be barred from attending the union's national conference next week. According to an internal letter dated 20 July 2022 from Numsa’s general secretary Irvin Jim, 26 shop stewards will be subjected to the union's disciplinary proceedings. This comes after 31 officials were suspended last week, including the union's second deputy president, Ruth Ntlokotse. The suspensions and bans come ahead of the elective conference, set to take place in Cape Town. Ntlokotse was elected president of Numsa's umbrella federation, the SA Federation of Trade Unions (Saftu) at its national congress in May, against the wishes of Numsa leaders, according to her. In Wednesday's letter, Jim said the special central committee (SCC) decided that members who were part of the union's delegation to the Saftu congress should be subjected to an internal disciplinary process for attempting to disrupt that meeting. Jim said the Numsa delegates acted in "open defiance" of the union's mandate at the Saftu conference. Of the 27 shop stewards being disciplined, 18 are being disciplined for disruptions at the Saftu conference while nine are being disciplined for organising a march in April to protest the Numsa central committee decision to put the union's Ekurhuleni and Mpumalanga regions under administration. Ntlokotse has approached the Labour Court for urgent relief, asking that the court declare her suspension invalid or halt the conference from taking place until the nature of disputes behind recent suspensions at Numsa is investigated and established. Read the full original of the report in the above regard by Khulekani Magubane at Fin24. Read too, Fears that infighting in Numsa could lead to another schism, at The Citizen Numsa infighting threatens to spill over into umbrella federation Saftu The Citizen reports that intense leadership infighting within the National Union of Metalworkers of SA (Numsa), on the eve of its 11th national elective congress, has sparked strong fears of a mushrooming splinter group. This threatens to weaken the umbrella body, the SA Federation of Trade Unions (Saftu), and the broader labour movement. According to sources within Numsa, a decision by the union’s special central committee (SCC) to suspend about 30 elected leaders and shop stewards, including newly elected Saftu president Ruth Ntlokose, who also serves as the union’s second deputy, has heightened concerns that a split could have on the federation. “If the Numsa congress goes ahead as planned, with Irvin Jim being re-elected general secretary, comrade Ruth Ntlokose might be expelled by the union, creating a crisis for Saftu, where she serves as president,” a source pointed out. “If the purge of those not agreeing with Jim goes ahead and there is an emergence of a splinter union, that may also create financial difficulties for Saftu, which benefits over R500,000 in monthly membership subscriptions from Numsa – its biggest founding affiliate,” added the source. Jim and the disgruntled leaders challenging their suspensions are scheduled on Friday to face off in the Labour Court in Johannesburg. Commenting on the impact of the Numsa’s internal bickering, labour expert Tony Healy said: “Like a political party, Numsa at leadership level is filled with people with ambitions and egos – something we have seen in many trade unions, a typical example being Cosatu. The transport sector has already been split into a multiplicity of unions and Numsa has [that] potential because it is a big trade union.” Read the full original of the report in the above regard by Eric Naki at The Citizen (subscriber access only)
Facing a major skills shortage, Eskom offers hybrid work model to attract and retain staff BusinessLive reports that according to Department of Public Enterprises Minister Pravin Gordhan, embattled power utility Eskom has implemented various measures such as a hybrid work model in a bid to attract and retain critical skills. The hybrid work model, which was accelerated by the Covid-19 pandemic, allows workers to split time between the office and home. Eskom faces a major skills shortage, which has partly contributed to its recent failures to keep the lights on. In a reply to a parliamentary question by the EFF published on Thursday, Gordhan said Eskom had largely been able to find and attract highly skilled and experienced talent in the open market, but that there were instances where the organisation battled to attract highly specialised talent due to reputational damage, affordability and the negative effects that operational performance has had on the Eskom brand. “To remain competitive in the labour market, Eskom has resolved to review some of the cost-optimisation initiatives that seem to have a potentially adverse impact on Eskom’s EVP [employee value proposition]. Furthermore, the organisation has implemented several initiatives to improve skills attraction and retention, such as the hybrid work model, which has enhanced Eskom’s EVP, inclusive of cost savings for our employees,” Gordhan indicated. Earlier in July, Gordhan wrote to trade union Solidarity asking it to provide a list of people with the necessary technical skills to help the government address the skills shortages at the power utility. The union has indicated that it is willing to assist. In his reply to the EFF, Gordhan said Eskom had intensified mentoring and coaching, and technical training. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive. See too, Gordhan SOS to Solidarity irks Numsa as the majority union, by Business Report
Denel and employees’ attorneys discussing payment of outstanding salaries, says Pravin Gordhan Cape Times reports that Public Enterprises Minister Pravin Gordhan said Denel was in discussion with the attorneys of employees who won a court case in May against the state-owned entity, to reconcile the records and agree on the amount owed for outstanding salaries. EFF MP Omphile Maotwe wrote to Gordhan asking whether the 42 employees who won the case in May against Denel have been paid their outstanding salaries dating back to 2020 and amounting to R13.2 million. Gordhan said that out of the 42 current and former employees who won the case in May, three of them had already been paid by the time the court order was issued and they had failed to inform their attorneys. “The amount owed to the remaining 39 claimants differ from person to person due to some having received part-payment from the date of the court order to date, and to that end, Denel has been in discussions with the attorneys representing the claimants with a view to reconcile the records and agree on the legitimate amounts owed to each individual,” Gordhan indicated. He also advised that part of Denel’s discussions with the attorneys included agreeing on a date by which the amounts could be paid in view of Denel’s ongoing liquidity challenges. Read the full original of the report in the above regard by Mayibongwe Maqhina at Cape Times
Employee who took compassionate leave in line with Zulu tradition didn’t cheat because Toyota’s policy should have been better explained GroundUp reports that a long-serving Zulu employee at Toyota SA’s plant in Durban, who was fired on the grounds that he abused compassionate leave, has been reinstated after Durban Labour Court Judge Benita Whitchera found that the company’s policy and rules should have been better explained. She noted that Toyota’s leave policy comprised some 35 pages “with compassionate leave situated in an obscure section in smaller writing”. She pointed out that none of the company’s witnesses had stated that the policy had been properly explained to employees. Previously, a CCMA commissioner had found the dismissal of Lungani Njilo to be unfair and ordered he be reinstated. Toyota took the matter to the Labour Court on review. Njilo was dismissed after being found guilty of dishonesty for “providing false information” on three occasions about his relationship with certain people who had died when he applied for and was granted compassionate leave. His 2013 and 2014 applications reflected the deceased as being his “mother”, and a 2015 application reflected the deceased was his “son”. Judge Whitcher said that if explained in Western terms, Njilo’s “mothers” were his late father’s second wife and his aunt. His “son” was his late brother’s son. Njilo said he had been unaware of the intricacies of the policy, and particularly that it did not cover people he regarded in Zulu culture as his immediate family. He said in Zulu culture, a man assumed responsibility for his deceased father’s wives and the children of his deceased brother. The commissioner had ruled that Njilo had not intended to be dishonest and that his dismissal was grossly inappropriate since he had 17 years’ service and an unblemished disciplinary record. Toyota, in its bid to overturn the finding on review, argued that the issue of isiZulu cultural norms and beliefs had not been properly aired at the arbitration. But Judge Whitcher said this was not so because it had been pertinently raised by Njilo when he gave evidence. She dismissed Toyota’s application. Read the full original of the report in the above regard by Tania Broughton at GroundUp
Two senior health department officials demoted over Digital Vibes scandal, a third allowed to resign News24 reports that two senior health department officials implicated in allegations relating to a R150 million communications tender are being demoted – and a third has resigned. Dr Anban Pillay, Popo Maja and Shireen Pardesi were suspended last year, and an independent senior counsel was appointed to preside over their disciplinary hearings. The hearings have been concluded, the health department advised on Thursday. The presiding officer found that Pillay was guilty of one of the four charges he faced, and gave him a final written warning that will be valid for 15 months. He was suspended without pay for three months, and the suspension will be followed by a salary level demotion for 12 months. Maja was found guilty of two of the four charges he faced. He will receive a final written warning that will be valid for 12 months. He will also get a salary level demotion for a period of 12 months. Pardesi was found guilty of one of the two charges against her. She asked to be allowed to resign, to which the parties agreed. The presiding officer said "all those charged were first-time offenders, and there was no evidence... that they benefitted from the transactions". Digital Vibes was contracted for communications relating to a National Health Insurance (NHI) campaign in 2019, and the work was later expanded to include communications on Covid-19. Allegedly the contract was irregularly awarded to associates of former health minister Zweli Mkhize. In April, Parliament's joint committee on ethics and members' interests cleared Mkhize of allegations that he benefitted from the awarding of the tender. Read the full original of the report in the above regard by Nicole McCain at News24. Read too, Disciplinary action taken against three top Health officials implicated in Digital Vibes saga, at IOL. En ook, Kleiner salaris vir skuldiges van Digital Vibes-skandaal, by Maroela Media
Prasa working to restore three Gauteng rail corridors before year-end Engineering News reports that the Passenger Rail Agency of SA (Prasa) is rebuilding and recovering five high-priority commuter rail corridors, three of which, in Gauteng, will reopen before the end of the year. These are in addition to five lines that are already operational. This week Transport Minister Fikile Mbalula and Prasa management conducted an oversight inspection of the work on the Leralla to Johannesburg corridor, the Pretoria to Pienaarspoort corridor and the Naledi to Johannesburg corridor. Work to replace overhead traction equipment (OHTE) on the Naledi to Johannesburg line is 70% complete and OHTE work on the Pienaarspoort to Pretoria line is 90% complete. Both will open in September. Work on the OHTE on the Leralla to Johannesburg line is 40% complete and it will open in October. Prasa is also working to recover the Kliptown line, in Soweto. Additionally, Prasa will also open a train service connecting Johannesburg to Pretoria. Many railway stations were devastated by looting and vandalism during the Covid-19 lockdowns and Prasa is rebuilding its passenger rail infrastructure and the majority of its stations. Meanwhile, five commuter rail corridors are currently operational, namely Pretoria to Saulsville, Cape Flats, the Cape Town to Simonstown Southern corridor, the Cape Town to Wellington Northern corridor and the Mabopane line. The recovery of the Umlazi and KwaMashu corridors, in KwaZulu-Natal, were affected by the floods in April. Read the full original of the report in the above regard at Engineering News. Read too, Prasa urged to ease financial pressure on commuters, on page 10 of Sowetan of 21 July 2022
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