In our Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Drop in unemployment rate to 33.9% comes as a big surprise BL Premium reports that SA’s jobs growth defied expectations in the second quarter, bringing the unemployment rate a step closer to pre-pandemic levels. The easing of Covid-19 restrictions sparked a bout of hiring by employers looking to serve consumers who were eating out, shopping and travelling more. The figures released by Stats SA on Tuesday came as a surprise given that the economy was broadly expected to have performed poorly in the second quarter due to the KwaZulu-Natal flooding, as well as intense load-shedding and depressed business confidence. The quarterly labour force survey showed that the economy created 647,651 jobs in the three months to end-June, resulting in the official unemployment rate falling to 33.9% from 34.5% in the first quarter. The total number of persons employed was 15.6 million in the second quarter, while the number of unemployed persons reached 8 million. The expanded definition of unemployment, which includes people who have stopped looking for work, fell from 45.5% in the first quarter to 44.1% in the second. Restaurants, retailers, hotels and car dealerships were among the biggest recruiters in the three months to end-June. While there were job losses in manufacturing (-73,000) and transport (-54,000), job gains were seen in community and social services (+276,000), trade (+169,000), finance (+128,000) and construction (+104,000). But even with the positive numbers, SA’s unemployment rate remains above pre-pandemic levels and continues to be unsustainably high. Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only). Read too, SA adds more jobs in second quarter despite load shedding, floods, at Fin24 As youth unemployment continues to rise, government does no more than “barking at the moon” SowetanLive reports that according to former statistician-general Dr Pali Lehohla, the government has not shown any will to deal with high youth unemployment. He was commenting on Stats SA's Quarterly Labour Force Survey covering the second quarter of the year, which showed a slight 0.6% drop in unemployment. Unemployment decreased to 33.9% in the second quarter from 34.5% recorded in the first quarter. According to Stats SA, this equated to 648,000 new jobs created during this period. Despite this positive news, unemployment of youth (aged 15 to 34) increased by 2% (or 92,000) to 4.8-million from the first quarter. Lehohla said this was indicative of a government that had failed. “There are fewer young people employed today compared to 2008. When you look at this you realise the situation is deteriorating so rapidly. A young person today is more desperate. From 2001-2008 there was an increase in the employment of young people with two million less employed compared to 2008. This changed around 2018 and at the very least government should have kept the figures the same instead of the drop,” Lehohla observed. He went on to lament: “They (government) bark at the moon and that’s what they do every year. All the policies discussed are not worth the paper they are written on and the policies they are pursuing won’t address the issues we’re facing.” Read the full original of the report in the above regard by Nomazima Nkosi at SowetanLive Other internet posting(s) in this news category
Government warns civil servants who want to take part in Wednesday's stayaway of 'no pay, no leave' policy Fin24 reports that ahead of a planned national stayaway on Wednesday, government warned public servants who participate that they won’t be paid for the day. In a statement, the Department of Public Service and Administration (DPSA) pointed out that employees who delivered essential services were not allowed to participate at all during working hours. For other civil servants, the department advised all government departments to apply the principle of "no work, no pay". The DPSA went on to indicate: "Leave will be strictly managed, and no leave will be granted unless under extreme and compelling situations." The stayaway has been organised by the SA Federation of Trade Unions (Saftu) and the Congress of South African Trade Unions (Cosatu) in protest over cost of living pressures and the state of the economy. Demonstrations will be held in the major cities. But the impact of the stayaway may be more muted than previous shutdowns, after the SA National Taxi Council (Santaco) said it would not participate in the strike. This means the protest might not disrupt public transport and non-striking workers might still be able to get to work. Read the full original of the report in the above regard at Fin24. See too, National Shutdown: Government to implement ‘no work no pay’ on workers who participate, at The Citizen Santaco, DA won’t be participating in Wednesday’s national shutdown Weekend Argus reports that the SA National Taxi Council (Santaco) and the Democratic Alliance (DA) will not be participating in Wednesday’s planned national shutdown by unions. The Congress of South African Trade Unions (Cosatu) and the SA Federation of Trade Unions (Saftu) and their affiliates will be striking across the country to call for government intervention in the cost of living crisis, load-shedding and joblessness. Cosatu's spokesperson Sizwe Pamla said the strike was legally protected and it was meant to pile pressure on both government and the private sector to fix the economy. Meanwhile, the SA National Taxi Council (Santaco) has snubbed the national protest saying its members would continue with their normal operations. “Santaco is not part of that shutdown. We distance ourselves from it,” Santaco's Bongani Magagula indicated. He said they were not necessarily in disagreement with the reasons behind the strike, but that its national executive committee did not see it necessary for them to participate in the action at the present time. In the Western Cape, the DA’s Ricardo Mackenzie advised: “The DA in the Western Cape does not support the national shutdown as it will not do anything to resolve rail challenges or fix the country's economic troubles, which have led to a severe cost-of-living crisis, rocketing fuel prices, mass unemployment and made it nearly impossible for the most vulnerable members of our society to travel in search of education, jobs and better opportunities.” He added that Cosatu must take the fight to its tripartite alliance partner, the ANC, instead of destabilising the country’s economy. Read the full original of the report in the above regard by Velani Ludidi at Weekend Argus. Read too, Taxi industry snubs looming Saftu ‘national shutdown’, at SowetanLive Other internet posting(s) in this news category
Intercape says there is a direct link between the taxi industry and attacks on long-distance busses EWN reports that according to Intercape, its operations have been hampered by taxi operators in several towns across the Eastern Cape. The long distance bus company on Tuesday briefed Parliament's Tourism Committee about ongoing violence in the sector. Since the beginning of 2021, the company has recorded more than 150 incidents, including shootings, intimidation, assault and extortion. This year alone there've been at least 31 stonings and 21 shootings. Intercape's Johann Ferreira said currently Mthatha was the only place they could operate from in the Eastern Cape. “There are certain towns where Intercape for the last few months, cannot operate from. That is Idutywa, Butterworth, Ngcobo, Tsomo, Cofimvaba, Gcuwa and Namaqua. This is a typical example of industry cleansing, in other words, get rid of a competitor. How do you get rid of them? You terrorise them until they go away,” he stated. Ferreira showed MPs a social media post featuring a photo of a bus, which was allegedly bought by a representative of a taxi association to introduce services in the same towns where Intercape has been prevented from operating. He said Intercape reported this to authorities, and the particular coach was impounded in Cape Town, because it had no legal authority to carry passengers. “They impounded the bus on a Saturday, the Sunday night the attacks resumed in Cape Town,” said Ferreira, who argued that the resumption indicated a direct link between the attacks and the taxi industry. Read the original of the report in the above regard by Lauren Isaacs at EWN
Numsa intent on trying to reach wage agreement with retail motor sector Moneyweb reports that according to the National Union of Metalworkers of SA (Numsa), meetings were scheduled to be held on Tuesday and Wednesday with the Retail Motor Industry Organisation (RMI) and the Fuel Retailers Association (FRA) in the hopes of unlocking a wage dispute which was declared on 30 June. The parties will meet under the authority of the Dispute Resolution Committee (DRC) of the Motor Industries Bargaining Council (MIBCO). Picketing rules will also be on the agenda. The union indicated: “It is in our interests as Numsa to try and find one another and to prevent a strike. The sector employs approximately 306,000 workers nationally and a strike would have a negative impact on the economy, and on our members because a ‘no work no pay’ policy is likely to be imposed.” The union’s demands include a 12% across the board increase. Numsa said its demands related directly to the dire socioeconomic conditions experienced by the working class and its members, and that employers from the motor industry had not yet made a meaningful offer. “Our members are struggling especially because they do not have [a] transport allowance, and they spend almost their entire salary on public transportation in order to get to work,” it added. According to the union, the FRA has offered a 4% across the board increase for all forecourt workers and 3% for chars and cashiers for a three-year agreement. “What is even worse, is that this proposal by the FRA is on condition that Numsa drop all the other demands. The RMI was expected to make an offer, but [it has] not yet done so,” it added. The union said it hoped employers would bring an improved offer to the table. Read the full original of the report in the above regard by Nondumiso Lehutso at Moneyweb
Numsa did not breach interdict by holding national congress, Labour Court rules GroundUp reports that former National Union of Metalworkers of SA (Numsa) deputy president Ruth Ntlokotse has failed in her bid to hold the union and its general secretary Irvin Jim in contempt of court by proceeding with its national congress in July in spite of her having obtained an interdict stopping the event until it “complied with its own constitution”. Ntlokotse, in her urgent application which was heard by Johannesburg Labour Court Judge Andre van Niekerk last week, also sought an order that “all that was done under the guise of the congress be declared to be null and void and resolutions passed, including nominations and elections are invalid and have no force or effect”. She wanted Jim and president Andrew Chirwa to be sent to prison for 30 days, suspended on condition that they comply with the order, which was granted by Labour Court Judge Graham Moshoana on 23 July, two days before the congress was to start. But Judge van Niekerk dismissed her application and said the union’s office bearers had complied with the conditions attached to the interdict. But, he noted that the validity of the decisions taken at the national congress had not been canvassed in the application and indicated: “Nothing in this judgment should be construed to constitute a finding of the substantive validity of any of the decisions taken by … the central committee, the credentials committee or the national congress.” He pointed out that Ntlokotse still had remedies under the common law and the Labour Relations Act to “pursue her interests and those of other disaffected union members”. Read the full original of the report in the above regard by Tania Broughton at GroundUp. See too, Numsa welcomes not guilty verdict in contempt of court case, at EWN Other internet posting(s) in this news category
State seeks to extend R350 Social Relief of Distress grant until basic income grant is finalised BusinessLive reports that the Department of Social Development (DSD) is working on a proposal to extend the R350 Social Relief of Distress (SRD) grant until the government finalises a basic income grant. “We are engaging different departments, including the Treasury, around how to address the continuing income need after the end of the financial year,” deputy director-general for comprehensive social security Brenda Sibeko advised. The National Council of Provinces received a briefing from the SA Social Security Agency (Sassa) on Tuesday on the R350 grant that will end this financial year. In his state of the nation address (Sona) in February, President Cyril Ramaphosa announced that he would be extending the R350 grant until March 2023 and that the government was working on a more permanent plan. The government introduced the grant in 2020 to help people who lost their livelihoods during the Covid-19 pandemic. Sibeko indicated: “The consideration is how to create a direct basic income support programme for people and that’s what the department is working on. Decisions have not been made yet, but one of the things we are taking cognisance of is that even if the policy gets approved, we still need to write the legislation and that takes time. So one of the things we have proposed is that the grant should be continued beyond this financial year while we get the final policy and legislative processes in place.” Read the full original of the report in the above regard by Amanda Khoza at BusinessLive. Read too, R350 grant: New rules mean beneficiaries cannot 'unreasonably refuse' employment or training, at News24
Home Affairs to end some 178,000 Zimbabwe Exemption Permits in December TimesLive reports that about 178,000 Zimbabweans are at risk of deportation when the Zimbabwe Exemption Permit (ZEP) ends in December. The Department of Home Affairs (DHA) this week announced it was forging ahead with its plan to terminate the exemption permit and has told SA employers of Zimbabwean immigrants to start preparing before the deportations. The ZEPs were granted to Zimbabweans who moved to the country before 2009. The temporary measure was meant to regularise Zimbabweans’ presence in the country and allow them access to services such as banking. In court papers that the department filed at the Gauteng High Court in Pretoria, it said only 6,000 of the 178,000 permit holders responded to DHA Minister Aaron Motsoaledi’s calls last year for Zimbabweans to state their case before the dispensation lapses. The department was responding to an affidavit by the Helen Suzman Foundation (HSF), which intends to take the government to court over its decision not to extend the exemption permit. DHA director-general Tommy Makhode said it had always been made clear that the ZEP was temporary. Makhode also said any ZEP holder who met the requirements of section 26 of the Immigration Act was entitled to apply for permanent residence on any of the grounds contained in that section. Read the full original of the report in the above regard by Unathi Nkanjeni at BusinessLive. Read too, Government defends its decision to end Zimbabwean permits, at GroundUp
Solidarity threatens litigation if President signs Employment Equity Amendment Bill into law Solidarity on Tuesday advised President Cyril Ramaphosa not to sign the Employment Equity Amendment Bill of 2020 into law and to refer it back for review. The trade union, however, warned that if the president proceeded to sign the Bill into law, Solidarity would have to approach the courts “to once again force the government to do the right thing and to review the Act.” The government has indicated that the President intends to sign the amendment Bill early in September. Solidarity is of the opinion that this law is unconstitutional and that it is moreover in direct contravention of an earlier finding of the SA Human Rights Commission (SAHRC) indicating that racial legislation in SA, even in its current format, is unconstitutional and is not in accordance with international norms and values. It noted that the president has the authority to question the constitutionality of proposed legislation and has the power to refer it back to parliament for review. “The proposed amendment to the Act in terms of which racial targets would be imposed on sectors will have disastrous consequences for our economy. In many instances it would deprive those lucky enough to keep their jobs of any possibility of promotion. This would mean that the skills exodus to other countries would only be accelerated and the South African economy – like its public service – would increasingly be trapped in a spiral of inefficiency, contraction and imminent collapse. The state’s obsession with race must be opposed at all costs. We simply cannot afford not to do it,” Dr Dirk Hermann, Solidarity Chief Executive, commented. Read Solidarity’s press statement regarding the above matter at Solidarity News. Lees ook, Laat wysigings aan Wet op Diensbillikheid hersien, maan Solidariteit, by Maroela Media
Home Affairs’ chief director axed for dodgy dealings and failure to maintain stable IT infrastructure The Citizen reports that the Chief Director: Infrastructure Management for Information Systems (IS) at the Department of Home Affairs (DHA) has been dismissed for gross negligence and gross dereliction of duty. According to a statement issued by the department, Simphiwe Hlophe was in charge of Information Technology (IT) aspects that involve network outages (offline), system downtime and IT capability which affect the department’s overall performance. The statement also revealed that Hlophe certified a SITA invoice that included services not rendered, and also authorised other expenditure against a credit note issued by SITA and procured routers and switches that remained in storage. “The Department’s service delivery charter depends on a stable IT infrastructure platform, networks and operating systems, to effectively perform its functions, rendering sustainable and reliable service capability to our frontline offices. The failure of a senior manager to oversee and execute on these functions is a serious misconduct, and cannot be tolerated,” the DHA indicated. Home Affairs also made it known that senior managers in the department must be aware of the consequences of certifying unauthorised payments between the department and third parties as this was a serious and punishable offence. Read the full original of the report in the above regard at The Citizen
“Fingerprints” of three senior officials who resigned from Office of the Chief Justice were “all over” R225m IT contract from which they benefited TimesLive reports that MPs are none the wiser as to how three senior officials in the Office of the Chief Justice (OCJ) could have been involved in the awarding of a R225m IT contract — and then formed a company that benefited from the deal. The OCJ failed to provide information beyond what was already in the public domain, citing pending investigations. “We are not saying so because we want to hide anything, it’s also based on legal advice,” secretary-general of the OCJ, Memme Sejosengwe, told parliament’s portfolio committee on justice on Tuesday. She said internal investigations and investigations by law-enforcement agencies were ongoing, which made it difficult for her office to provide further information as this could affect the investigations. She, however, confirmed to MPs that former CFO Casper Coetzer, former spokesperson and chief director of court administration Nathi Mncube and former case management director Yvonne van Niekerk’s “fingerprints were all over the Thomson Reuters deal”. All three played a role in the awarding of the contract to Thomson Reuters, from bid specifications to bid evaluation as well as in the bid adjudication committee as it was part of their official duties. This included the negotiation process for pricing relating to the contract, she said. “I did not suspect that there was anything untoward happening. I had no reason to suspect anything because I did not find anything that in my view would have given reason to believe that they were doing anything untoward. Obviously it’s human nature. What happens happened,” Sejosengwe remarked. Read the full original of the report in the above regard by Andisiwe Makinana at TimesLive
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