In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 5 August 2022.
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Saftu to stage nation-wide strike on 24 August over rising cost of living Fin24 reports that a national strike across the country in protest against the rising cost of living, load shedding, "privatisation" of state-owned entities and other economic challenges will take place on 24 August. This was decided by the SA Federation of Trade Unions (Saftu) at its Working Class Summit on Friday. The shutdown in three weeks will see Saftu, its union affiliates, and like-minded organisations protesting nationwide. Saftu had an estimated 725,078 individual members in 21 affiliates unions in 2018. However, it remains to be seen how successful the national shutdown will be, as rival federation Cosatu held such a national strike last year, with little discernable economic effect. Also complicating the dynamics, Saftu is now at odds with the leadership of its largest member union, the National Union of Metalworkers of SA (Numsa). This was the first gathering of the Working Class Summit since July 2018. Since then, the Covid-19 pandemic and continued government failures have worsened economic volatility and eviscerated jobs. Saftu president Ruth Ntlokotse addressed the Summit on Friday and said the working class faced unprecedented economic pressures from rising costs including the inflation rate, electricity tariffs, fuel prices, and food costs. She lamented the country's expanded 45.6% unemployment rate – disproportionately felt among young South Africans – with two million job losses as a result of the Covid-19 pandemic. Social partners at the Summit demanded that the government expand social grant protections and introduce a basic income grant. Read the full original of the report in the above regard by Khulekani Magubane at Fin24 Other internet posting(s) in this news category
Investec gets go-ahead at AGM to pay R2m a year on bodyguards, security for each executive director Bloomberg News reports that Investec will spend as much as £100,000 (R2 million) a year on each of its executive directors’ personal security. A resolution on the cover was approved by shareholders at the bank’s annual general meeting on Thursday. The directors previously paid for security from their own salaries. “The personal security arrangements are something which we feel we need to put in place for the executives based in South Africa,” Henrietta Baldock, chairwoman of the bank’s remuneration committee, indicated at the AGM. The measure was introduced “given that they are high profile, and given the number of other examples that are around of high-profile business people and other people being targeted.” South African crime data published by the government shows that kidnappings more than doubled in the three months through March to 3,306 incidents. Each of SA’s nine provinces has seen an increase in kidnappings, with Gauteng having experienced more than 1,500 cases of abduction in the first quarter of the year. That was almost three times the number of incidents in the same period last year. Hijacking increased by 20%, while murders rose by 22% in the three months to March. Read the full original of the report in the above regard by Adelaide Changole at Fin24 Intercape proposes series of immediate steps to clamp down on attacks on long-distance busses EWN reports that Intercape has proposed a series of immediate steps to be taken to clamp down on attacks on long-distance busses. These include the installation of security cameras on a bridge near its Cape Town depot. Briefing Western Cape lawmakers on Friday, the company also called for arrests based on available evidence and pleaded with the private sector for support. Evidence of extortion was shown in the form of a note from a person purporting to be from a taxi association in the Eastern Cape in which there appears to be a demand for R100,000 in exchange for safety. "It has become a reality of the everyday life of our clients at Intercape, the reality of these attacks is that they are becoming more violent, more sophisticated and more organised," the bus company stated. Intercape recorded 150 incidents since the start of 2021 including shootings, intimidation, assault and extortion. This year there have been at least 29 stonings and 19 shootings. Last week, two Intercape bus drivers were shot at along the N2 in the vicinity of Nyanga. One was wounded in the leg and stomach, causing his bus to roll down an embankment, while the other was unharmed. On 31 July, a bus driver was shot and wounded outside Intercape's depot in Airport Industria and in April a driver was shot dead – also outside the Cape Town depot. Read the full original of the report in the above regard by Lauren Isaacs at EWN Other internet posting(s) in this news category
Unions reject government’s 2% wage offer, with time running out for parties to seal a deal Fin24 reports that unions representing employees in the public service met with the government on Friday in a bid to strike a wage deal, but unions roundly rejected the government's offer of a 2% wage increase. The demands of the unions currently range between 4% and 6.5%. Earlier in the week, the Public Servants Association (PSA) said it would pursue a fresh dispute against the state after government said that union demands were unaffordable and it would only be able to pay an increase from the date a deal was signed, not retrospectively from April this year. Government’s final offer currently on the table amounts to 2% – with a sliding scale in terms of which salary levels 1 to 4 would receive 3%, levels 5 to 8 would receive 2.10%, and levels 9 to 12 would receive 1.50%. Negotiations coordinator for the Cosatu bloc of public sector unions, Simon Hlungwani, confirmed that Cosatu affiliates in the talks rejected the government's offer on Friday. Hlungwani said by 12 August the employer was expected to reply to labour's demands, failing which a deadlock would be declared. From there the matter would either be referred to conciliation, followed by arbitration, or a possible strike. Hlungwani could not confirm reports that Cosatu had met with Minister of Employment and Labour Thulas Nxesi in his capacity as acting minister of Public Service and Administration to find a political solution to the public service wage talks. Meantime, the PSA's Reuben Maleka said that as far as the union was concerned, other unions were free to join the PSA in its dispute against the government. Read the full original of the report in the above regard by Khulekani Magubane at Fin24. Read too, Numsa threatens national strike if motor sector snubs proposed 12% wage hike, at EWN Numsa threatens national strike after wage talks in retail motor and vehicle components sector collapsed on Thursday EWN reports that the National Union of Metalworkers of SA (Numsa) has called on the retail motor and vehicle components sector to give in to workers' wage demands in a bid to prevent a sector-wide strike. The union’s several demands include a 12% increase across the board for the 90,000 workers it represents, but employers have come in with offers far below the demands. Wage negotiations collapsed on Thursday, after two days of deliberations between the union and the Retail Motor Industry (RMI) and the Fuel Retailers Association (FRA). Numsa rejected the offer made by the FRA of a 4% wage increase across the board for all petrol attendants and 3% for cashiers over three years. Apart from a wage increase, the union also wants a night shift and a transport allowance, as well as medical aid for garage workers. The RMI failed to make an offer altogether. Numsa spokesperson Phakamile Hlubi-Majola said workers were willing to take their grievances to the picket lines in the coming weeks. She said: “We are at the mercy of the CCMA and employers. The ball is in their court. They have the power to stop the looming national strike in the motor sector if they put a meaningful offer on the table.” Hlubi-Majola added that the union would be approaching the CCMA soon on picketing rules. Read the full original of the report in the above regard by Nokukhanya Mntambo at EWN
Gauteng Premier Makhura calls for 'armed branches of the state' to 'deal with zama zamas' News24 reports when addressing irate Kagiso residents last week, Gauteng premier David Makhura called for the deployment of all armed forces to fight illegal mining. "Our country is ungovernable. The criminals have taken over," Makhura told the residents of Kagiso, in the west of Johannesburg, during the second leg of an imbizo by Police Minister Bheki Cele. The residents complained about rampant crime, which they blamed on illegal miners. They claimed that illegal miners were operating freely without any interference from the police. The locals also complained that the Kagiso police had failed to assist in fighting illegal mining in the community. Makhura said: "Illegal miners are giving us a problem in Gauteng. We have an illegal mining belt in the province. Illegal mining in the east of Gauteng emanates from Mpumalanga. The one in the West Rand spread from the North West and Free State provinces… As Gauteng, we have been fighting against this problem. We are not getting it right. Illegal miners need extraordinary measures. My predecessors have been battling against illegal mining. If we deal with it the way we have been, it will never end." The premier pointed out that the province was dealing with well-trained and organised criminals and said that the contribution of illegal miners to the provincial crime statistics was enormous. "We need to see the visible force of our state. We have given the police minister our mandate. I am convinced that the minster must bring all the different armed branches of the state. We want to deal with zama zamas,” Makhura asserted. Read the full original of the report in the above regard by Ntwaagae Seleka at News24 Police to deploy specialised units to curb illegal mining in Krugersdorp News24 reports that responding to a call from Police Minister Bheki Cele, deputy national police commissioner Tebello Mosikili has promised to deploy specialised units to curb illegal mining in West Village, Krugersdorp. On Saturday, Cele held an imbizo in the area. Addressing a packed tent, he asked for the deployment of the Tactical Response Team, Special Intervention Unit and the Special Task Force. Residents complained to the minister about the hardships illegal miners had brought to the area. They claimed ‘zama zamas’ wearing blankets were running amok, carrying pistols and rifles, raping, robbing and killing people. Some people called for the deployment of the army, which Cele said was unnecessary. "We will give Cele and the community what they expect from us in the next two weeks and beyond. We will give them peaceful nights," Mosikili promised. Gauteng Police Commissioner, Lieutenant-General Elias Mawela, concurred with Mosikili that extra forces were needed in the province and added: “We are going to win this war. Should ringleaders behind the illegal mining activities happen to be in Gauteng, we will arrest them. We are increasing our operations against illegal mining.” The area came under the spotlight last week when a crew filming a music video was attacked by heavily-armed men alleged to be illegal miners. Eight of the women on set were gang-raped. Read the full original of the report in the above regard by Ntwaagae Seleka at News24 Other internet posting(s) in this news category
Solidarity hits out at planned MTN retrenchments Business Report writes that multinational mobile telecommunications company MTN has come under fire for plans to start a retrenchment process. MTN's notification came after the company reported a profit of around R14 billion in the latest financial year and exceeded all its targets. According to trade union Solidarity, MTN's management was acting callously and immorally by announcing retrenchments while the company’s financial figures indicated such a huge success. “To dismiss such a significant number of your labour force despite billions in profits that even exceeded the company’s own expectations paints a glaring picture of South African society and the role large companies like MTN play in it,” said Linda Senekal, network coordinator for Solidarity, in a statement on Friday. The union claimed that it was difficult to see the retrenchments through a lens other than one coloured by MTN’s intended takeover of Telkom. The two companies confirmed in July that they were in early talks about MTN taking over Telkom. “What MTN is trying to do with its employees is actually illegal. If MTN foresees that there will be a duplication of roles if it were to buy Telkom, then it must deal with it in terms of the prescribed section 197 process. MTN cannot hide behind the appearance of a normal retrenchment process,” Senekal commented. Solidarity emphasised its continuous support for its members who were part of the MTN workforce. Read the full original of the report in the above regard by Ashley Lechman at Business Report
Patel’s year-long suspension of additional chicken import duties a ‘licence to dump’ Business Times reports that local chicken producers are threatening to cancel or postpone up to R570m in new investments in protest against the suspension of additional duties on imported chicken from five countries for 12 months. Trade, industry & competition (DTIC) minister Ebrahim Patel last week deferred anti-dumping duties on chicken to alleviate supply shortages and rising food costs. This means there will not be an increase in tariffs for poultry products from Brazil, Ireland, Denmark, Spain and Poland. Presently, importers pay a 62% duty. Izaak Breitenbach of the SA Poultry Association described Patel's announcement as a disappointing surprise, saying companies would reconsider planned expansions of R570m, promised to Patel, which would have created more jobs, or delay them for 12 months. According to Breitenbach, the industry has invested R1.5bn and created 1,600 jobs since 2019. He said the minister was going against the poultry master plan agreed by the industry and the government in 2019. It aimed to expand and improve production. The industry has long complained about dumping of subsidised chicken. However, Patel, who has the final say on tariff impositions, opted for a 12-month suspension. Chicken is a cheap and popular protein for South Africans. “In making its decision, the minister considered the current rapid rise in food prices in the Sacu [Southern African Customs Union] market and globally, and the significant impact this has, especially on the poor, as well as the impact that the imposition of the anti-dumping duties may have on the price of chicken as one of the more affordable protein sources,” read a government gazette announcing the decision. Read the full original of the report in the above regard by Thabiso Mochiko at Business Times (subscriber access only). Read too, Feathers set to fly as union Fawu calls for poultry meeting with Patel, at Business Report
GEPF warns of a temporary liquidity crisis if public servants resign en masse to cash out their pension funds Business Times reports that the Government Employees Pension Fund (GEPF) has warned of a temporary liquidity crisis if public servants resign en masse to cash out their pension funds. According to labour federation Cosatu, draft pension fund reform legislation released by the Treasury last week was inadequate and could trigger a resignation rush by public servants who were hoping to be allowed immediate access to a portion of their retirement savings. The Treasury released the Draft Revenue Laws Amendment Bill introducing a “two-pot” system that would make retirement savings more flexible to accommodate unforeseen circumstances and discourage workers from resigning simply to access their retirement funds. However, the amount workers have already accumulated would be regarded as “vested” and not accessible for withdrawal except in the case of resignations. In terms of the draft legislation, the “savings pot” containing the one-third that could be accessed by a member once every 12 months would only start accumulating from March 2023, the date the Treasury envisages the reforms becoming law. Cosatu’s Matthew Parks said the federation was fielding questions from civil servants who warned they would resign and cash in on the eve of the promulgation of the law if they were not allowed some sort of access to their money. “There will be a run on retirement funds in March next year if this is not clarified; workers are bleeding. Public servants will resign to cash out; we are trying to prevent that scenario. Treasury forgets this is workers’ money, it’s not their money,” he warned. Contacted for comment, the GEPF indicated: “Large-scale resignations would pose liquidity constraints on any fund and would carry the secondary effect of a negative shock on asset prices at the dates of withdrawal. This is due to pension funds basing the investment strategy on a long-term view of the pension obligations. Given the GEPF volumes, a high number of resignations would carry a risk of liquidity pressures in the short term.” Read the full original of the report in the above regard by Dineo Faku at Business Times (subscriber access only) Other internet posting(s) in this news category
Lottery’s chief operations officer suspended for the third time for suspected corruption GroundUp reports that embattled National Lotteries Commission chief operations officer Phillemon Letwaba has been suspended for the third time and will now face another disciplinary inquiry. About four months ago Letwaba returned to work after a disciplinary hearing controversially cleared him of money laundering and abusing his position to enrich himself and his family. He now faces the same charges, including contraventions of the Prevention of Organised Crime Act, as well as sections of the Lotteries Act and the Public Finance Management Act. He will apparently face new additional charges too. The latest disciplinary inquiry was postponed after Letwaba complained about the advocate chosen to chair the hearing. The hearing is expected to proceed shortly but under a different chairperson. Letwaba was suspended in October last year on the recommendation of the Special Investigating Unit (SIU) just three months after he returned to work after a 17-month “leave of absence”. He was paid a performance bonus of nearly R1-million in spite of not being at work. Letwaba went on his “leave of absence” soon after the NLC announced in February 2020 that it had appointed an audit firm “to institute an independent investigation into allegations of improper use of funds intended for good causes”. The outcome of this investigation has yet to be made public. Letwaba’s five-year contract with the NLC expires at the end of November. Read the full original of the report in the above regard by Raymond Joseph at GroundUp
Acting minister of public service & administration expects pace of lifestyle audits of public servants to accelerate BL Premium reports that acting Department of Public Service & Administration (DPSA) Minister Thulas Nxesi indicated last week that the lifestyle audits of public servants have been taking place slowly as the capacity to carry them out has had o be built up first. He expects the pace to increase as the training has now been done. The biggest challenge has been to empower the investigators, the ethics officers. Lifestyle audits are a means to assess the unexplained wealth of public servants that could point to illegal activities such as corruption or doing business with the state and other conflicts of interest. They became compulsory for national and provincial departments from April 1 2021 in terms of public service regulations. In an answer to a parliamentary question, Nxesi advised that 24 national departments and 21 provincial departments had conducted lifestyle audits on all their senior management staff and other designated categories. There are about 40 national departments and more than 100 provincial departments. National and provincial departments will have to report back later this year outlining the progress made in implementing lifestyle audits and the steps taken against those identified for further investigation. “When corruption is detected, the outcome of the audit is shared with the police and a criminal case is opened against the employee. The police will then continue with their own investigation,” Nxesi advised. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)
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