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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Collapsed public sector wage talks leave Ramaphosa in a tight political spot Moneyweb reports writes a looming public sector wage strike, following collapsed talks between unions and the government, will put President Cyril Ramaphosa in a bind. This week, four unions were issued with certificates of non-resolution, effectively allowing workers to embark on a strike that could see nurses, police and other public sector workers stay away from work, so disrupting key government services. The Public Servants Association (PSA), which represents over 230,000 workers, has already served a notice to strike after rejecting a 3% wage offer from the government. It says it plans to embark on a national strike next Thursday (10 November). However, two teachers’ unions, Sadtu and Naptosa, have accepted the government’s offer. The wage stalemate comes at a crucial political time, as the ANC readies itself for the December elective conference to choose its party leader, as well as the general election scheduled for 2024. Tension is mounting for Ramaphosa and his administration as they face the hard task of striking a balance between appeasing public service labourers and protecting an already strained fiscus. “The ANC politicians will be under pressure, especially President Cyril Ramaphosa, because he does need union support,” noted academic Ongama Mtimka. “We have reached a level in which the institutions like collective bargaining and the working arrangements in the tripartite alliance all come in to question,” he noted. Mtimka pointed out that there was tension between the “political imperatives of appeasing labour” and what has been understood by government as the “imperative of getting the fiscus in the right standing”. Meanwhile, Nehawu’s Lwazi Nkolonzi advised that the unions were scheduled to discuss the matter at a Cosatu joint mandate committee (JMC) meeting, where a programme of action would be devised. The JMC meeting would determine the start date of mass industrial action by workers, Nkolonzi indicated. Read the full original of the report in the above regard by Ntando Thukwana at Moneyweb
Bodies of two more suspected illegal miners found in Krugersdorp mine, bringing death toll to 21 News24 reports that the mayor of Mogale City, Tyrone Gray, believes that more bodies of suspected illegal miners could be trapped underground at a mineshaft in Krugersdorp, on the West Rand. "There is a possibility, but we don't know what the quantum of that figure is. This is simply an idea that has been reported, that the volume of individuals was more than the 21 that was recovered from the area," Gray told reporters at the scene on Thursday afternoon. By Thursday morning, at least two more bodies were recovered from the shaft. That brought the number of bodies found to 21, after 19 bodies were discovered on Wednesday. Gray said it was thought that the men might have been trapped underground during the heavy downpours this week. "Due to the rains, a lot of these tunnels have been covered in water, and this has dire consequences for people who are trying to exit, given that illegal mining doesn't have the same infrastructure and support that is necessary for safe mining,” Gray explained. He confirmed that the mine was licensed, and the mining bosses were draining the water from the shaft. Gray added that they would be working closely with law enforcement authorities to establish the cause of the accident. Read the full original of the report in the above regard by Iavan Pijoos at News24 Deaths of 21 Krugersdorp zama zamas said to have been caused by trench cave-in TimesLive reports that the 21 dead suspected illegal miners (zama zamas) found in Krugersdorp, west of Johannesburg, are believed to have been killed when a trench they were working in collapsed on them. The men died in shaft 9 on the West Rand on Tuesday. According to an illegal miner, the bodies were moved from the shaft to prevent police from investigating the scene where they worked. However, police spokesperson Col Brenda Muridili said she could not confirm that the deaths were as a result of a collapsed trench. The illegal miner said the trench’s stability was compromised by the heavy rainfall in the area. “The trench was not stable enough because of the rain. Some of us decided to take a break from mining when it started raining because we do not have enough support structure for the excavations we make. We use dynamite and that moves the earth, which makes it riskier when it rains,” he stated. Another illegal miner said they warned the deceased to desist from mining until the rain stopped. “I hear the community speculating that these deaths could have been a result of fighting. It's not true. This is something that happens when you do our line of work,” he said. Muridili indicated that no foul play was suspected. Read the full original of the report in the above regard by Tankiso Makhetha at SowetanLive Other general posting(s) relating to mining
Transnet to reprioritise operating budget to allow for extra wage increases BL Premium reports that Transnet group CEO Portia Derby says the rail and ports utility will have to reprioritise its operating budget to allow for the extra increases they awarded to striking workers a few weeks ago. After a two weeklong strike by employees in October, during which Transnet was forced to declare force majeure, the company finally agreed to offer its employees a 6% increase in year one, a 5.5% increase in year two and a 6% increase in year three plus increases to medical and housing allowances, to entice them back to work. The new wage deal is expected to have the net effect of increasing its already huge wage bill which accounted for 66% of operating costs before the strike. The R5.8bn allocated to Transnet in October’s medium-term budget policy statement will not go to cover these additional salary costs but to pay for the repair of infrastructure damaged by the April floods in KwaZulu-Natal and the Eastern Cape, and to maintain freight rail locomotives. The funds are also expected to increase locomotive capacity. “The big drive right now is to find a way to reduce costs and increase revenue on the other side, which we are prioritising,” Derby indicated. “We were able to look at our long-term contracts to see if there are opportunities to pass through some of these increases,” she added. The industrial action cost mineral exporters R815m in lost revenue as bulk mineral exporters were unable to load goods onto rail to the ports. Read the full original of the report in the above regard by Thando Maeko at BusinessLive (subscriber access only)
New Eskom board should be given space to decide Andre De Ruyter’s future, Ramaphosa tells MPs IOL reports that President Cyril Ramaphosa told MPs during a question-and-answer session in Parliament on Thursday that the new Eskom board had to be given space to review the effectiveness of the management at the power utility. He indicated that the board was expected to undertake a full assessment of the efficiency of managers and operators at the power utility. EFF leader Julius Malema had asked Ramaphosa why Eskom’s CEO, André de Ruyter, remained at the helm when the country was still gripped by load shedding. Ramaphosa replied that the CEO reported to the board, which conducted performance reviews against agreed targets. “The new board has the skills, experience and expertise to undertake a thorough assessment of current executive leadership and take whatever steps they consider necessary to address areas of weakness,” he asserted. Ramaphosa emphasised that allowing the board to do its assessments was critical, as the power utility had undergone a high volume of leadership change at the executive level. “Eskom has gone through enormous challenges and difficulties. Let us give them the support they need so that they can do their work. Where they fail, clearly action does need to be taken, but that is now a board matter,” he stated. Read the full original of the report in the above regard by Brenda Masilela at IOL Other internet posting(s) in this news category
Tongaat Hulett business rescuers affirm that rights of employees will remain protected BL Premium reports that the Tongaat Hulett business-rescue practitioners (BRPs) affirmed on Thursday that in line with the Labour Relations Act (LRA), the rights of employees of the group would remain protected during the business rescue process. In 2021 in SA, Mozambique, Zimbabwe and Botswana, Tongaat had more than 28,900 permanent and seasonal employees in its peak season. Locally, nearly 15,000 permanent and seasonal farm workers are employed by sugar cane growers who supply cane to Tongaat’s plants. In line with the Companies Act, the BRPs met with Tongaat employees on Thursday for the first time since the company officially undertook business rescue proceedings a week ago. After the first meeting with employees, the rescue practitioners Trevor Murgatroyd, Petrus van den Steen and Gerhard Albertyn emphasised they had complied with the law in the form of the Companies Act and the LRA, saying that “employees’ rights remain protected during the business-rescue process”. The BRPs announced they were gearing up to meet creditors on 8 November. “In the interim, the BRPs are focusing on stabilising operations while seeking the requisite post-commencement funding,” they said in a statement. Meantime, all five Tongaat Hulett nonexecutive directors have resigned with immediate effect from the board and the various board committees on which they served. “The directors believe that the role they can meaningfully play in relation to the company in its present circumstances is extremely limited, and accordingly they have elected to resign,” said the group. Read the full original of the report in the above regard by Michelle Gumede at BusinessLive (subscriber access only). Read too, Farmers face grim future, with 14,600 sugar cane jobs at risk, at SowetanLive
Latest food basket marginally cheaper, but consumers still go hungry The Citizen reports that key data from the October 2022 Household Affordability Index show that the latest food basket price is marginally cheaper, but consumers still go hungry as food prices put nutritious food, especially for children, out of their reach. A Debt Rescue survey conducted in August showed that an astonishing 81% of South Africans are cutting down on daily meals due to high food prices as they cannot afford three square meals per day anymore, while 41% said their monthly grocery budget could no longer feed their families. The index, compiled by the Pietermaritzburg Economic Justice and Dignity Group, tracks food price data from 44 supermarkets and 30 butcheries, in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok. In October 2022, the average cost of the Household Food Basket was R4,787.83, a decrease of R18.03 (-0.4%) from R4,805.86 in September. But, an increase of R470.28 (10.9%) from R4,317.56 in October 2021. The price of the food baskets decreased in Johannesburg, Durban and Springbok, while the price increased in Cape Town and Pietermaritzburg. The group says households living on low incomes change their purchasing patterns in response to changes in affordability conditions. On low incomes, women buy the core staple foods first, so that their families do not go hungry and for basic meals to be prepared. Where the money remaining is short, women have no choice but to drop foods from their trolleys or reduce the volumes of nutritionally rich foods in their trolleys. This has negative consequences for health, wellbeing and nutrition. Read the full original of the report in the above regard by Ina Opperman at The Citizen
Independent body to determine ministers' perks and benefits, Ramaphosa tells MPs TimesLive reports that President Cyril Ramaphosa told MPs on Thursday that work was under way to have an independent body help determine cabinet ministers' perks and benefits such as free electricity and water. He was responding to a question by DA leader John Steenhuisen about the public outrage after Ramaphosa's decision to introduce provisions such as free water and electricity for ministers. “Because all of us who tend to determine these benefits are essentially insiders. Therefore, you need an independent body who could examine all of these,” Ramaphosa indicated. The 2022 version of the ministerial handbook has been withdrawn by the president, meaning ministers now rely on the 2019 version and get no additional perks. Read the original of the short report in the above regard by Thabo Tshabalala at TimesLive
Dis-Chem CFO admits sales suffered after ‘no-whites’ jobs moratorium IOL reports that Dis-Chem has revealed that the group suffered a decline in sales after news leaked of its moratorium on the hiring of white staff. According to Dis-Chem’s CFO Rui Morais, the group's short-term sales declined after a memorandum by Dis-Chem CEO Ivan Saltzman imposing the moratorium went viral. He explained that the company's growth trend had reversed between 17 and 24 October, but by 25 October the negative trend had reversed again. Morais added that Dis-Chem's intention had been misunderstood. Last month, Dis-Chem faced massive backlash after Saltzman explained that following a recent review of both the employment equity profile in the organisation and a recent BBBEE verification process, it was evident that the organisation’s efforts to effect transformation in terms of its employee profile remained inadequate. The letter to all senior management stated: “A moratorium is placed on the appointment of white individuals. This includes external and internal appointments." Saltzman added that with Dis-Chem being a JSE listed company, these were harsh measures and necessary if the company was to remain profitable and avoid a potential fine of 10% of turnover, which would cripple the business. Dis-Chem has since retracted its letter although it has said it stands by the policy. Meanwhile, Dis-Chem’s earnings reportedly grew by 44% for the half-year ended 31 August 2022. Read the full original of the report in the above regard by Se-Anne Rall at IOL
Nepotism, fear and vague adverts flagged in PSC study of dodgy government appointments News24 reports that human resources managers in the top strata of the national government fear reprisal and victimisation when they become vocal about unethical actions during recruitment and selection processes. Added to this, the personal interests of senior managers, accounting officers (directors-general), ministers (executive authorities) and some members of interview panels lead to the selection of relatives, friends, spouses or partners and others who are familiar with or have close relations with some panel members. This was found in a study by the Public Service Commission (PSC) undertaken to examine the "nature and magnitude" of ethical dilemmas in recruitment and selection processes. On Wednesday, the PSC’s Kholofelo Sedibe presented to Parliament the findings of the study. In her presentation, Sedibe said middle senior managers and panel members victimised HR officers for speaking out on unethical actions during recruitment and selection processes. Furthermore, she said some panel members were side-lined and victimised when they raised unethical conduct and practices. MPs also heard that accounting officers appointed some panelists to conduct interviews with an ulterior motive. In making its recommendations, the PSC said departments should conduct in-depth awareness and training for HR practitioners on how to handle ethical challenges. This would be to help HR managers in the challenges they faced during recruitment and selection processes to ensure that departments made ethical hiring decisions. Read the full original of the report in the above regard by Jason Felix at News24 (subscriber access only) KZN municipality defends advertising senior managerial positions with lowered requirements IOL reports that despite an outcry over the decision by the IFP-run eMadlangeni Local Municipality to advertise a senior position with lowered minimum academic requirements, the administrative leadership there is standing by the decision. On Wednesday, the municipality in Utrecht was criticised for the requirements indicated in an internal advert for the position of the manager of IGR (intergovernmental relations) and communications. Among the requirements were a Grade 12 certificate and NQF level 5 qualification or seven years of experience in the local government environment. The duties of the successful candidate would include speaking on behalf of the municipality and advising the mayor, Mzwakhe Buthelezi, on communications and IGR matters. Critics from within the municipality slammed the requirements, saying the position was very senior to have such low academic requirements. Unfazed by the accusation, municipal manager Grace Mavundla insisted that they had not lowered the requirements. “The requirements were not lowered but these are minimum requirements which open an opportunity to a pool of candidates which will be sifted through a shortlisting process with the best and most capable candidates being selected,” she said. Mavundla also denied that the position has been tailored around a former politician from the ANC. Read the full original of the report in the above regard by Sihle Mavuso at IOL
GEPF implements a number of Mpati Commission recommendations to enhance its oversight of PIC Moneyweb reports that the Government Employees Pension Fund (GEPF) has implemented a number of the recommendations made by the Mpati Commission of Inquiry into allegations of impropriety at the Public Investment Corporation (PIC). The PIC is the asset manager of the state pension fund. This was confirmed by GEPF Board of Trustees chair Dondo Mogajane in the fund’s latest annual report. He indicated that the actions represented an effort to further strengthen and enhance the GEPF’s investment processes, including oversight of the PIC. The PIC manages 82.14% of the GEPF’s investment portfolio directly, with the remainder managed through a few local and international external managers. The recommendations the GEPF implemented included reviewing and strengthening the GEPF’s investment strategy and policy; reviewing its internal investment monitoring structure to enhance the monitoring and evaluation of investments; and reaching agreement with the PIC on benchmark returns. Mogajane said these actions had resulted in more stringent consequence management, a review of fee models, enhancement of investment and reporting guidelines, and an improved framework for responsible investing. Read the full original of the detailed report in the above regard by Roy Cokayne at Moneyweb
Trial against two former Collins Chabane Municipality officials implicated in VBS saga delayed The Citizen reports that the trial against two former high-ranking officials of Collins Chabane Local Municipality implicated in the VBS Mutual Bank scandal has been postponed to next week. Charlotte Ngobeni and Eddie Makamu were due to have their trial start on Thursday in the Palm Ridge Commercial Crimes Court, but the matter was delayed to allow the defence to get outstanding documents related to the case. Ngobeni is a former municipal manager at the Limpopo-based municipality while Eddie Makamu was the chief financial officer. Ngobeni and Makamu face two counts each of contravention of the Municipal Financial Management Act, while Ngobeni faces four other counts of corruption. The former municipal officials are accused of investing R120 million in October 2017 into the now defunct VBS Mutual Bank. A 2018 forensic investigation report into the affairs of VBS Mutual Bank revealed large-scale looting and recommended that the bank’s former executives and government officials who invested in the institution should face criminal charges and be held liable in civil proceedings. At least 20 municipalities in Limpopo, North West and Gauteng, lost nearly R1.6 billion, after illegally investing with the bank. Read the full original of the report in the above regard compiled by Thapelo Lekabeat The Citizen
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