In our Thursday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Godongwana says increase of 3% for public sector employees in best interest of fiscus and workers BL Premium reports that, as was widely expected, Finance Minister Enoch Godongwana pencilled in a 3% increase for public sector wages, an offer he said was in the best interest of the fiscus and public service workers. Presenting his medium-term budget policy statement (MTBPS) in parliament on Wednesday, Godongwana stated: “Implementing it (3%) does not undermine the collective bargaining process. We believe that the facilitation process has helped all parties get to this point. Therefore, the spending estimates we are tabling today include this amount. This offer will be implemented through the payroll system, and backdated to April 2022.” Godongwana noted that the final offer included the continuation of a non-pensionable cash allowance for the current financial year. “This translates into an average of R1,000 per employee per month until March 2023 and a pensionable salary increase of 3% for public servants. The cash gratuity comes to 4.5% and if you add the 3% that’s 7.5%. So that’s where we are with the wage negotiations,” Godongwana said at a media briefing. He warned that higher-than-budgeted public service wage costs would strain fiscal resources and negatively affect the government’s effort to stabilise the public finances. Godongwana also said that additional fiscal measures or reductions in headcounts would be required to contain overall compensation spending. To avoid pre-empting the next wage negotiation process, “no provisions have been made for wage increases in 2023/2024 though increases will need to remain within the available fiscal resources so as not to compromise other spending priorities.” Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only) Government stands firm on wage increases, but buckles on welfare grants Bloomberg News reports that in his medium-term budget policy statement presented to MPs on Wednesday, Finance Minister Enoch Godongwana held the line in the government’s efforts to contain the state’s wage bill. The budget update provides for state personnel costs to rise by an average 3.3% over the next three fiscal years, less than half the projected inflation rate for this year, and identifies higher wage settlements as an ongoing risk to the fiscal outlook. The wage bill accounts for 31% of total government expenditure and keeping it in check is key to the Treasury’s plans to rein in the budget deficit and bring runaway state debt under control. Pay talks between the government and unions representing its 1.3 million workers have currently deadlocked, and about 235,000 of them affiliated with the Public Servants Association are set to go on strike from 3 November. The government has offered to pay 3% raises and a R1,000 monthly cash allowance, while unions are demanding increases of between 6.5% and 10%. But, Godongwana bowed to public pressure to extend the social relief of distress (SRD) grant that was introduced in 2020 to cushion the poor against the fallout from the coronavirus pandemic. He increased the projected spending for social grants by R36 billion, which will enable the welfare department to extend the monthly R350 SRD grant until March 2024. Read the full original of the report in the above regard by S'thembile Cele at Moneyweb. Read too, SRD grant extended for another year, but solution must be found, says Godongwana, at Fin24. And also, Social relief of distress grant extended for another year, at BusinessLive (subscriber access only) Medium-term budget policy statement “lukewarm”, says Cosatu BL Premium reports that labour federation Cosatu has described the medium-term budget policy statement (MTBPS) presented by Finance Minister Finance Minister Enoch Godongwana on Wednesday as “lukewarm” and said it was concerned that it had not been bold enough in addressing the economy, which has been “stagnant for over a decade”. “We were hoping for a bold MTBPS that would protect workers from inflation, rebuild the state, decisively tackle corruption, provide relief to the unemployed and put in measures to stimulate the economy,” Cosatu spokesperson Sizwe Pamla said. He indicated that suffocating the economy through budget cuts and “scapegoating public servants had not worked”. Pamla went on to stress: “The government needs to focus on addressing the fundamental causes of the fiscal crisis, namely a stagnant economy, rampant corruption, massive unemployment, load-shedding and limping state-owned enterprises, and not outsource the bill for corruption and incompetence to workers.” On the government’s unilateral implementation of its 3% wage offer to public servants, Pamla said: “We reiterate our position that an amicable solution should be found to avert the strike that will impact service delivery and undermine the economy. A public service strike will cause a major and extended labour unrest and a crisis of service delivery.” Regarding the positives, Pamla said Cosatu was pleased the government had agreed to its demand for the extension of the R350 social relief of distress (SRD) grant until March 2024 as it had assisted about 10-million people. He also said Cosatu supported the position that the fiscus needed to take over between R150bn and R300bn of Eskom’s debt burden. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only) Transnet, Sanral and Denel get lifelines in mini-budget, but nothing for Post Office, SABC, SAA, Land Bank or SAA Mail & Guardian reports that Finance MInister Enoch Godongwana on Wednesday announced bailouts for the SA National Roads Agency (Sanral), Transnet and Denel, by way of a special appropriations bill that will see more than R30-billion flowing to the struggling state-owned entities. He offered no such reprieve for other struggling parastatals, with the major exception of a plan fo be announced in the new year to take over between a third and two-thirds of Eskom’s debt. Godongwana said in his medium-term budget policy statement that the Treasury was using part of the windfall in higher-than-expected revenues in the current financial year to reduce risks to Transnet, Sanral and Denel, but cautioned that the special allocations were a once-off event and could not be used to fund baseline increases. “These allocations will allow these entities to adjust their business models and restore their long-term viability,” he explained. Transnet will receive R2.9-billion to ensure the return to service of part of its locomotive fleet, and a further R2.9-billion to deal with flood damage to its infrastructure in eThekwini. Sanral’s debt of R47-billion will be shared between the Treasury and the Gauteng government, in a 70% 30% split to unblock the impasse surrounding the Gauteng Freeway Improvement Project. Denel will receive R3.4-billion to support recent progress made to stabilise the arms parastatal. Godongwana made no special allowances for the Post Office, the SA Broadcasting Corporation, the Land Bank or SAA. Read the full original of the report in the above regard by Emsie Ferreira at Mail & Guardian Other internet posting(s) in this news category
Makro wage strike: Saccawu accused of ‘negotiating in bad faith’ The Citizen reports that thousands of Makro employees embarked on a nationwide strike on Wednesday after an ongoing wage dispute could not be resolved. Employees affiliated with the SA Commercial, Catering and Allied Workers’ Union (Saccawu) are demanding results, after four months of wage negotiations. The employees want a 12% wage increase, while the union has rejected Makro’s counteroffer of 4.5%, saying it “will not sustain workers”. Saccawu spokesperson Sithembele Tshwete said employees and their families would struggle to meet “even the basic household needs” with a 4.5% increase (list of demands outlined in Citizen report). But according to Makro, a 12% wage increase and increasing the sales commission from 10% to 20%, were both “intuitively unrealistic”. Makro went on to indicate in a statement: “We can confirm that Makro was advised on 24 October of Saccawu’s intention to embark on a three-day strike at our stores. It should be noted that this decision has been taken unilaterally by the union in the absence of their conducting strike ballots across the Makro store base. This approach is consistent with our impression that the union has been negotiating in bad faith.” According to Makro, strike ballots had been conducted at six stores on Monday and three stores “voted against strike action”. Makro claimed all stores were operating, despite the strike, and no disruption to normal store trading activity had been anticipated. Read the full original of the report in the above regard by Cheryl Kahla at The Citizen Transnet counts the cost of cable theft and vandalism in wake of devastating wage strike Fin24 reports that as Transnet Freight Rail (TFR) works to normalise operations in the wake of its recent wage strike, it is counting the cost of cable theft and vandalism, as criminals took advantage of the industrial action. During the two-week strike, which was called off last Wednesday, the state-owned rail operator said it not only experienced a considerable loss in volume throughput – as much as 82% in one week – but it also suffered an increase in copper cable theft. This, in turn, resulted in 257 trains being stranded, or "staged", across the network, although 234 of these had been cleared as of Tuesday. The container corridor was hit the hardest with a 22% increase in cable theft on this part of the network during the strike and some 12kms stolen with an estimated replacement cost of R24 million. The remaining 23 staged trains are on this corridor which serves as a key logistics link between the Port of Durban and Gauteng. Rudzani Ligege, managing executive of the container corridor, said that security had been beefed up, especially between Mooi River and Lions River, which has proved to be a hotspot. A number of arrests have been made in that particular area and some recovery of the stolen cables. Asked if Transnet could have managed the situation better to avoid a strike entirely, TFR CEO Sizakele Mzimela said: "We believed that we were doing all we could, and we thought that we had a partnership where we were engaging with openness and transparency in everything that we're trying to do. Unfortunately, in the end, we found ourselves having to take a strike." Read the full original of the report in the above regard by Lisa Steyn at Fin24. Read too, Transnet Freight Rail counts cost of vandalism amid recent strike, at Business Report Fallout from Transnet strike could derail Black Friday for small retailers Fin24 reports that with barely a month until Black Friday, the fallout from the recently ended Transnet strike looks set to pile pressure on the supply chains of smaller businesses, although SA’s biggest retailers are more likely to escape unscathed. Larger retailers have used their deep pockets to stock up, and have already focused on local sourcing of goods to combat pre-existing global supply chain challenges prompted by the Covid-19 pandemic and Russia's invasion of Ukraine. This bodes well for their main promotional periods, such as Black Friday and the broader December festive season. Despite this, the 10-day strike at Transnet, which ended last week when unions agreed to a wage deal, has put the logistics system under additional strain. Mike Walwyn, director of maritime affairs at the SA Association of Freight Forwarders, estimates that for every day of strike it "can take anything up to 10 days to recover". "We had a more-or-less 10-day strike, which implies a three-month recovery time, so we don’t expect a full return to normality until about then," he warned. Walwyn said that "the little guys are more vulnerable" to the effects of the strike, as many order goods on a "just-in-time basis, as they don’t have the cash flow or credit terms that the big retailers have with their suppliers". Read the full original of the report in the above regard by Nick Wilson at Fin24 (subscriber access only)
Missing Nehawu Eastern Cape vice-chair found murdered AlgoaFM reports that the vice-chair of the National Education, Health and Allied Workers’ Union (Nehawu) in the Eastern Cape, Lizo Vakala, has been found dead. Police spokesperson Captain Andre Beetge said 64-year-old Vakala's badly burnt body was found on Tuesday night in dense bushes close to the R334 and R335 crossing. Vakala left his home on Saturday to take his car in for repairs in Kwazakhele. He never returned home and his family reported him missing on Sunday. According to Beetge, Vakala's vehicle was found abandoned in Wells Estate on Monday morning. A 35-year-old woman has been arrested and will appear in court soon. The ANC's Gift Ngqondi said Vakala would be remembered as a loyal and forthright cadre of the movement who served the ANC with integrity and never wavered in his fight for social justice, having served in the ANC structures since the movement was unbanned in 1990. Vakala's family issued a brief statement on Facebook on Wednesday. Read the original of the short report in the above regard at AlgoaFM. See too, Missing Nehawu leader found dead in Motherwell, at HeraldLive (subscriber access only) NUM general secretary hijacked and kidnapped last week News24 reports that the general secretary of the National Union of Mineworkers (NUM), William Mabapa, was reportedly hijacked and kidnapped in Gauteng last week. In a brief statement on Wednesday, NUM confirmed that Mabapa was “violently hijacked and kidnapped” last Wednesday “by criminals armed with guns.” NUM spokesperson Livhuwani Mammburu said: “The NUM is breathing a sigh of relief that the General Secretary [managed] to survive the ordeal and came out of it unharmed. We are urging the police to thoroughly investigate and swiftly arrest the perpetrators. The law enforcement agencies must leave no stone unturned in bringing those criminals to book.” Police spokesperson Lieutenant Colonel Mavela Masondo confirmed that a case of kidnapping and hijacking had been opened at the Midrand police station. “The investigation is underway, no arrests have been made yet,” Masondo said on Wednesday afternoon. Read the full original of the report in the above regard by Alex Mitchley at News24 (scroll down) Sex workers fear for their lives as accused in murder of six women appears in court News24 reports that Sifiso Mkwanazi, who is accused of murder after the bodies of six Johannesburg sex workers were found at his father's workshop, made his third appearance before the Johannesburg Magistrate's Court on Tuesday. "We are afraid of him. He will kill us all as he did with my friends,” said a sex worker outside the court. Mkwanazi, 20, faces one charge of premeditated murder as the state waits for DNA results that could link him to the other murders. Police also hope the DNA will help them to identify the murdered women. The sex workers said her colleagues feared walking the streets. She claimed that some of were still missing: "It could be 15 to 20 of our colleagues who are missing. We don't know where they are. Some of us are happy with him being kept in jail. We plead for justice. Police don't take us seriously. The police hate us. They chase us from the street. As it is now, we are even more scared to attend to clients arriving in cars." When Mkwanazi appeared briefly before the magistrate, he asked the court to bar his father from visiting him as he claimed his father was attempting to influence him to confess to the police. Police found the bodies with the assistance of workers at the building where Mkwanazi's father was renting a panel-beating workshop. Workers led the police to the six semi-naked and decomposed bodies. Mkwanazi is expected back in court for a bail application on 31 October. Read the full original of the report in the above regard by Ntwaagae Seleka at News24. Read too, Sex worker murder accused unhappy with father’s visit, at SowetanLive
Decline in number of salaries paid in September points to further job losses BL Premium reports that after five months of growth, fewer salaries were paid in September, according to the latest BankservAfrica Take-home Pay Index (BTPI). This is said to indicate further job losses in SA’s moribund economy. The index is calculated monthly by dividing the total value of salaries paid into employees’ bank accounts – excluding salaries greater than R100,000 a month – by the total number of salary payments. Despite the implied job losses, take-home pay rose marginally in the review month, with the average nominal salary increasing by 2.4% month on month to R15,063. That was still below the highest reading so far this year, namely R15,638 in February. According to economist Elize Kruger, the data shows that salaries have lagged behind average headline inflation this year. Kruger warned that the finances of the average salaried worker is “likely to remain strained” as the take-home pay in real terms declined by 8.3% year on year to R14,356 in September. “However, as we forecasted that July’s 7.8% headline CPI print would be the upper turning point of the current inflation cycle, the pressure should start to alleviate slightly as inflation moderates towards year-end. We forecast inflation could be at around 7.2% by year-end,” she said. Read the full original of the report in the above regard by Nico Gous at BusinessLive (subscriber access only)
Aviation history as SAA all black women cockpit crew fly from Joburg to Cape Town Cape Argus writes that dreams can come true and the proof is shown by two black African women who as children aspired to the impossible and in 2022 made aviation history as the first black African female flight deck crew to operate an SAA flight. Captain Annabel Vundla and First Officer Refilwe Moreetsi, both alumni of the SA Air Force (SAAF), flew their aircraft from the City of Gold and landed to applause at an impromptu photoshoot with excited passengers in the Mother City on Tuesday morning. On the ground at Cape Town International Airport the two high-flyers were joined by SAA’s only woman aircraft maintenance engineer, Kgaogelo Mahasha. What made the achievement all the sweeter for the three was the fact that they had all achieved their positions purely on merit and not as a result of affirmative action. Vundla, who is married and a mother of two, has flown for 22 years and spent 12 years flying VIPs in the SAAF, where she is still signed up as a military reservist with the presidential squadron. Moreetsi, also married and a mom of two, has been in the industry for 15 years. In the air force she flew Oryx helicopters and moved on to passenger aircraft at SA Express before she began working at SAA 14 years ago. Mahasha has been in the industry for seven years and trained with SA Express and at Denel before being posted to CTIA, where she is currently the only woman in her field. Read the full original of the report in the above regard by Mwangi Githahu at Cape Argus Other internet posting(s) in this news category
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