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 roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 23 September 2022.
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Pay cuts loom as load-shedding crisis bites deeper Business Times writes that the unprecedented load-shedding of the past week is crippling businesses and putting workers' incomes at risk, particularly those at small firms battling to stay open. Gerhard Papenfus, CEO of the National Employers' Association of SA (Neasa), which has 8,000 members, said the effect of load-shedding on his members was devastating. “The damage to the economy is anything between R2bn and R4bn a day. There is not a single business that is not extremely affected by this. This is terrible for the economy, this is very bad,” he lamented. Papenfus said employers were usually able to continue paying salaries despite load-shedding but some would reach a point where they could not do so any longer. “During load-shedding your people stand and your machines are idle. You can only accommodate that to a certain extent. Each business will decide for itself ... at what point salaries will be cut and people are not paid for the time they don't work,” Papenfus pointed out. According to a recent survey by business chamber Sakeliga, which represents 12,000 mostly small businesses with an average of 10 employees, in the three months of relatively moderate power cuts before the latest stage 4 to stage 6 blackouts began, they were losing on average R25,000 a month because of load-shedding. Sakeliga’s Piet le Roux indicated: “Many of these businesses are near break-even point. The more marginal are being driven into loss-making positions because losing 5% of your turnover is where you'd be making your profit.” Business Unity SA (Busa) said “the economic damage is severe and there must be an immediate intervention to at least manage load-shedding better”. Busa wants a short-term plan to urgently bolster Eskom's ability to buy power from all available resources and step up repairs to plants, and is pushing for the power utility to fill vacancies on its board with the right skills. Read the full original of the report in the above regard by Dineo Faku at BusinessLive (subscriber access only) ‘Incompetence’ of Eskom chiefs infuriates business leaders, politicians and trade unions Sunday Independent writes that business leaders, politicians and trade unions are calling for the removal of Eskom chief executive André de Ruyter as the power utility fails to keep the lights on. Many of those who commented last week claimed that the embattled CEO was still in charge and earning more than R7 million per annum because of “white privilege”. They said De Ruyter and his chief operating officer, Jan Oberholzer, had to go. According to senior business leaders and politicians, De Ruyter and Oberholzer “were given all the exceptional support they needed”, but have failed to stabilise the power utility or the grid. “The gentlemen were hired to make sure that South Africa has electricity, but we are constantly plunged into the darkness. Why are they still there? The situation is worse. This year we are facing the highest load shedding in the history of Eskom," Black Business Council CEO Kganki Matabane said. Matabane added that the Eskom board had to go with De Ruyter and Oberholzer because “they failed to hold these executives accountable for their failures”. The National Union of Metalworkers of SA (Numsa) also called for the firing of “clueless De Ruyter” and condemned him and the board “for continuously subjecting the country to relentless load shedding”. The union added that the government must immediately fire De Ruyter, together with Oberholzer and the board and threatened “to take more radical steps” if the government did not dismiss them. The union called for Public Enterprises Minister Pravin Gordhan to be fired too because he “cannot fix anything”. SA Democratic Teachers’ Union general secretary Mugwena Maluleke pointed out that load shedding affected every part of the education system. “It has an impact on teachers’ planning, while the majority, if not all, of the students have their study periods constantly disrupted,” he said, while claiming that the current management at Eskom had failed the nation and that there was no management at Eskom. Read the full original of the report in the above regard by Mzilikazi Wa Afrika & Lesego Makgatho at Sunday Independent Big changes at the top for Eskom, after the power utility’s worst load-shedding week yet Sunday Times reports that as crisis-stricken Eskom experienced arguably its worst week of rolling blackouts last week, several well-placed insiders have reported on engagements between the Presidency and the Department of Public Enterprises (DPE) about a new board. The talks are expected to be finalised this week. President Cyril Ramaphosa used Saturday’s Heritage Day speech to say he would “speak soon” about what measures would be taken. Ramaphosa, who cut short a visit to the UK because of the severity of the power crisis, is expected to present names of proposed new board members to a special cabinet meeting this week. Apparently, when the cabinet met virtually last Wednesday, several ministers expressed dissatisfaction about the situation and a decision was taken for heads to roll. A high-ranking government source said: “Cabinet ministers said they must all go; the board and the executive must go. But the meeting adjourned and has not concluded.” Both the Presidency and the DPE, to which Eskom reports, would neither confirm nor deny the discussions. Officially, the cabinet said it was still engaged in “intensive deliberations”. On public calls to fire Eskom’s board and CEO André de Ruyter, DPE Minister Pravin Gordhan said: “I don’t really want to comment at this stage.” This was in stark contrast to what Gordhan said a month ago when he expressed confidence in Eskom’s leadership and management. Presidency spokesperson Vincent Magwenya said Ramaphosa and his cabinet were applying their minds and all options were on the table “because the problems at Eskom are much broader than just one element of governance”. De Ruyter indicated he would welcome a stronger board. He said Eskom had been asking for some time for new board members as the pressure on the current directors has grown because of a number of resignations. Read the full original of the report in the above regard by Amanda Khoza, Sabelo Skiti & Kgothatso Madisa at Sunday Times (subscriber access only) Eskom CEO is confident electricity supply will improve in the near future, Sunday Times reports that, despite calls for his head to roll amid devastating load shedding, Eskom CEO Andre de Ruyter says the utility is making inroads in fixing "the mess I inherited". Indicating that employees were working up to 18 hours a day to ensure the power stayed on, he said: “We have some of the best and most experienced system engineers who are ensuring our network remains stable in spite of the challenges.” He confirmed he had been in a meeting last week with President Cyril Ramaphosa, and when asked what was discussed, De Ruyter replied: “Fixing Eskom.” Asked if his priority as CEO was ending load-shedding or creating new avenues of generation, De Ruyter said both were important: “Our first priority is to get existing plants to perform as well as possible, so load-shedding can be lightened. We can, however, not remove our foot from the pedal to keep adding new generating capacity — including the two Koeberg units that have not yet been put in operation, possible gas projects as well as renewable energy. If we stop adding capacity over the medium term the problem will only worsen. So both priorities are equally important. New capacity will enable us to solve load-shedding.” De Ruyter believes that the plans Eskom is implementing will work, including deploying experienced former employees where they are most needed. While the department of public enterprises last week said 18 former Eskom employees had been employed, De Ruyter said only two had so far been rehired. “The situation with the ex-employees is a fluid situation. We have already employed two of them — one at Koeberg and the other in Mpumalanga. They are both ex-employees that we went and fetched,” De Ruyter advised. Trade union Solidarity supplied him with a list of 300 experienced engineers and former Eskom employees months ago, but De Ruyter said his organisation was not limited to the list and that they were “throwing the net wide”. De Ruyter said claims that he was “trying to bring apartheid back” by only hiring white people were untrue and he only wanted the best person for the job. Read the full original of the report in the above regard by Hendrik Hancke at Sunday Times (subscriber access only). Read too, Rehired Eskom veterans get warm welcome as they tackle problems, on page 9 of Sunday Times of 25 September 2022. And also, Return of the veterans — inside Eskom’s push to reverse skills and knowledge loss, at Daily Maverick Other internet posting(s) in this news category
Strike a possibility as public sector pay talks collapse Daily Maverick reports that the government’s attempt to secure a remuneration deal for SA’s 1.3 million public servants has gone awry, with some trade unions having rejected its latest pay increase offer and risking strike action that could paralyse the delivery of crucial state services. The government tabled its latest offer on 30 August at the Public Service Coordinating Bargaining Council (PSCBC). It proposed increasing the “pay progression” rate from 1.5% to 3%, a rate similar to the one recently offered to government ministers and their deputies, premiers, members of provincial executive councils, judges and traditional leaders. But it came with several caveats: the government would embark on initiatives that would keep the amount it spends to remunerate public servants from growing, including asking public servants to take early retirement without penalties and reassessing critical skills in the public sector to offer voluntary severance packages. The response by unions to the government’s improved offer has been divided. After being given 21 days to engage their members about the offer, unions — including the National Union of Public Service and Allied Workers, the Police and Prisons Civil Rights Union, the South African Correctional Services Workers Unions and the South African Policing Union (Sapu) — rejected the offer. Others — including the Public Servants Association (PSA), the South African Democratic Teachers Union, the National Education Health and Allied Workers Union, the Democratic Nursing Organisation of SA and others affiliated to labour federation Cosatu — said they were still gathering feedback from their members about the government’s improved offer. They have not so far officially rejected the offer. Sapu and the PSA have taken steps closer to strike action. Both unions have declared a dispute at the PSCBC, as their negotiations with the government for an inflation-linked pay rise have failed. And on 20 September, Sapu and the PSA were awarded certificates of non-resolution by the PSCBC, which paves the way for their members to embark on a legal strike if they agree to do so. A sticking point for the trade unions is that a Constitutional Court ruling in February 2022 endorsed the government’s decision to renege on the last leg of a three-year remuneration agreement with unions because it could no longer afford to implement pay increases of 8% in 2020. Read the full original of the informative report in the above regard by Ray Mahlaka at Daily Maverick
Only a miracle can keep the next generation of mining engineers in long-term jobs, Junior Indaba is told Miningmx writes that bar a couple of notable exceptions – such as the Rainbow Rare Earths project at Phalaborwa and the Renergen helium and gas project in Free State – SA’s junior mining and exploration industry is in dire straits. This was laid bare at this year’s Junior Indaba conference by financial services and mining consultant Paul Miller and mining lawyer Hulme Scholes. According to Miller, the current crop of SA mining graduates will be unemployed by 2040 because the country will have very few operating mines remaining by then unless exploration “takes off radically and dramatically” this year and next. Miller told delegates that the SA exploration industry has never been at a lower ebb and that “exploration spending has dried up, mines are gradually closing, new mine discoveries have not been made, and the pipeline is empty”. Miller pointed out that whereas in 2004 – the year of the original Mining Charter and the Minerals and Petroleum Resources Development Act – SA attracted 5.42% of global exploration, last year it attracted 0.76%. Scholes, who pursued legal action over several years to have the revised 2018 Mining Charter scrapped in its entirety, laid the blame for the current mess squarely at the feet of the ANC. He commented: “The first Mining Charter worked because it was negotiated and agreed. The officials at the time, such as Sandile Nogxina [director-general of the Department of Mineral Resources 1998-2011] and Jacinto Rocha [deputy director, mining regulation DMRE, 1994-2010] made administrative decisions in implementing the legislation. The problem is that the decision-making by the government then became political and not administrative. We have to move away from that.” Read the full original of the report in the above regard by Brendan Ryan at Miningmx. Read too, Not fit for purpose: Why Mantashe’s minerals exploration plan is bound to fail, at Miningmx Other labour / community posting(s) relating to mining
Cosatu to hold national elective congress in Midrand from Monday to Thursday BL Premium reports that among issues set to dominate the agenda when Cosatu holds its national congress this week are corruption, rolling blackouts, contentious labour migration and the upcoming national election in 2024. The conference, due to be held at Gallagher Convention Centre in Midrand from Monday to Thursday, will be addressed by SA Communist Party and ANC leaders, among others, and will culminate in the election of a new national leadership. Cosatu has been calling on the government to implement a raft of reforms aimed at denting the triple challenges of unemployment, inequality and poverty. The labour federation has warned the ANC that it risks losing political power in the national election in 2024 if it does not address socioeconomic challenges affecting the working class and the poor, and deal with corruption in its ranks. Read the original of the short report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only). Read too, Cosatu, the working class lodestar, now a shadow of itself, at IOL Other internet posting(s) in this news category
Interest rate hike regressive and will further sabotage the economy, says Saftu EWN reports that the SA Federation of Trade Unions (Saftu) has hit out at the SA Reserve Bank’s (SARB’s) decision to hike interest rates, accusing the central bank of choking small businesses. Last week, the bank hiked the repo rate by 75 basis points in a bid to fight stubborn inflation. Governor Lesetja Kganyago on Thursday announced the latest changes following deliberations by the Monetary Policy Committee. Saftu spokesperson Trevor Shaku said that he did not believe that the decision had been made in the best interests of the economy. "It is regressive and sabotages the economy further in the context of low growth," Shaku asserted. He claimed that higher mortgage costs could drive small and medium businesses into defaulting on payments. "Even worse, he is pushing most of these workers out of work, since the small and medium enterprise workers will retrench workers when they go out of business due to defaults on their loan and credit facilities," Shaku stated. Read the full original of the report in the above regard by Nokukhanya Mntambo at EWN. See too, Cosatu slams latest interest rate hike, on page 12 of Sowetan of 23 September 2022
Mashatile apologises for ANC branch nomination delays due to staff go-slow and pickets EWN reports that ANC acting secretary general Paul Mashatile has written to the party’s branches – to apologise for delays to the nomination process caused by a staff go-slow. The nominations that were meant to take place have been affected by staffers who are picketing due to non-payment of salaries. Pickets started last week – over salary issues dating back to December 2019. Disgruntled staff members claimed the ANC had failed to make good on its promise to pay their salaries despite past commitments to do so. Mashatile indicated in a letter that the staffers would be continuing with their demonstrations until 26 September "notwithstanding partial payments made." The nomination process is due to end on 2 October. Read the original of the short report in the above regard by Tamika Gounden at EWN
Hairdressing and Office Admin among new subjects to be offered in schools EWN reports that the Department of Basic Education (DBE) has plans to introduce additional new subjects for Grades 10 and 12 by 2025 to improve their chances at employment after matric. These subjects include office hairdressing, administration and art & design. The department said it was focusing on giving learners education that equipped them for the future world of work as not all learners went on to study in higher education institutions after matric. DBE spokesperson Elijah Mhlanga said they had been gradually introducing new subjects, with 17 already rolled out. Earlier this year, the department announced plans to review its mathematics, science and technology curriculum as a way of preparing pupils for the future of work, saying subjects that might be included were ocean and marine engineering, aerospace engineering, coding and robotics. “We are expanding the curriculum offering to make sure that learners have an opportunity to follow a career path that gives a quick opportunity to employment. We are focusing on skills. We are focusing on the fourth industrial revolution,” said Mhlanga. Read the original of the short report in the above regard at EWN
National Health Insurance pilot sites suggest scheme is dead in the water The Citizen reports that over a decade since the National Health Insurance (NHI) was piloted, there has been little or no improvement in the quality of public health service at the test sites, with poor hygiene, drugs stock outs, and long waiting hours still the order of the day. This despite R5.1 billion having been spent testing the NHI in OR Tambo (Eastern Cape), Gert Sibande (Mpumalanga), Vhembe (Limpopo), Pixley ka Seme (Northern Cape), Eden (Western Cape), Dr K Kaunda (North West), Thabo Mofutsanyane (Free State) and Tshwane (Gauteng), uMzinyathi, uMgungundlovu and Amajuba (KwaZulu-Natal) The NHI pilot programme was rolled out in 2014 but failures in core pillars of the scheme, including medicines and medical supplies, cleaning material, and servicing and maintenance of equipment had started to show by 2017. Yet, in June MPs started clause-by-clause deliberations of the NHI Bill and, if the health committee agrees to the Bill, it will go to the National Assembly. The health financing system is designed to pool funds to provide access to quality affordable personal health services for all citizens, irrespective of their socio-economic status. Once fully implemented, the NHI Bill states that medical schemes will not be able to provide cover for services paid for by the scheme. But government’s track record in implementation and capability has been the biggest concern around the NHI. Public health specialist and activist, Dr Shakira Choonara, noted that the assessments of the NHI pilots showed multiple issues but that there was no clarity on how these issues would be dealt with. “The NHI Bill has become more of a political rhetoric tool versus something which is implementable. It is poorly written and in its current form [will not] resolve the issues we are seeing in the healthcare system,” Choonara claimed. Read the full original of the report in the above regard by Sipho Mabena at The Citizen (subscriber access only)
DA asks office of Public Protector to probe Tembisa Hospital CEO’s appointment The Citizen reports that the Democratic Alliance (DA) has asked the office of the Public Protector to investigate suspended Tembisa Hospital CEO Ashley Mthunzi’s appointment by the provincial Department of Health last year. Last week, the department denied that Mthunzi faced disciplinary action at the time his appointment was effected. According to the DA’s Gauteng health spokesperson Jack Bloom, the department accused him of “sensational allegations and deliberate distortion of facts”” after he stated that Mthunzi was appointed even though he was facing a disciplinary charge that should have disqualified him. According Bloom, Gauteng Health MEC Nomathemba Mokgethi told him in a written reply on 15 September 2021 that Mthunzi was facing a disciplinary hearing based on misconduct and was given a final written warning. He said she further indicated that Mthunzi was supposed to be disciplined for allegedly contravening the department’s recruitment and selection policy. “It is clear … that Mthunzi was indeed facing a disciplinary hearing when he was at Pholosong Hospital, and that it was wrong that this information was not given to the Selection Committee. Why is the department now contradicting an official reply by the Health MEC?,” Bloom asked. Mthunzi is now suspended – together with chief financial officer Lerato Madyo – over the improper procurement and payment of service providers at Tembisa Hospital totaling R850 million. Mthunzi is married to Young Nurses Indaba Trade Union (YNITU) secretary Lerato Mthunzi. The union has come to his defence regarding the serious corruption allegations he faces. Read the full original of the report in the above regard by Getrude Makhafola at The Citizen. Read too, Gauteng Health fires back at Bloom, on page 1 of The Star of 23 September 2022
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