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 Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Good news as SA's unemployment rate dropped in third quarter of 2022 Fin24 reports that according to Statistics SA, the official unemployment rate declined further to 32.9% in the third quarter of 2022, from 33.9% in the second quarter. Unemployment hit a record high of 35.3% in the fourth quarter of 2021. The Quarterly Labour Force Survey (QLFS) shows that 204,000 jobs were gained between the second and third quarter of 2022. The largest job gains were in manufacturing (+123,000), trade (+82,000), construction (+46,000) and transport (+33,000). Job losses were however recorded in the finance sector (-80,000), private households (-36,000) and mining and agriculture (-1,000). The expanded unemployment rate – which includes discouraged job seekers who have given up looking for work – decreased to 43.1% in the third quarter from 44.1% in the second quarter. Investec said it expected the third quarter unemployment rate to remain elevated at 33.6%, reflecting SA’s struggling economy. Read the full original of the report in the above regard at Fin24. Read too, Unemployment at lowest level since first quarter of 2021, at BusinessLive SA doesn't have world's worst unemployment rate anymore, with Namibia and Nigeria now the worst Bloomberg News reports that SA’s official unemployment rate in the third quarter declined to 32.9%, the third highest on a global list of 82 countries and the Eurozone. The improvement means that SA’s jobless rate now trails Namibia and Nigeria, though some data are outdated. It held the record of the world’s worst unemployment rate from the second quarter of 2021. The jobless rate for people aged between 15 and 24, which includes school leavers and graduates of universities and training colleges, stands at 34.5%. Unemployment according to the expanded definition stands at 43.1%, which includes people who were available for work but not looking for a job. SA’s energy-intensive manufacturing sector was the biggest driver of job growth in the third quarter despite record power outages. The number of people employed by manufacturers rose by 123,000 to 1.63 million in the three months through September, Statistics SA indicated in a report released on Tuesday. The official jobless rate in SA has exceeded 20% for at least two decades. That’s largely due to sluggish economic growth, and strict labour laws and bureaucratic hurdles that have weighed on the ability of local companies to hire additional workers. Analysts also cite an education system that doesn’t provide adequate skills and apartheid-era spatial planning that makes it difficult for job seekers to enter and remain in the formal workforce. The governing ANC failed to meet its targeted unemployment rate of 14% by 2020. President Cyril Ramaphosa, who is likely to win a second term as party leader, next month will be expected to champion job creation initiatives. Read the full original of the report in the above regard by Prinesha Naidoo at Fin24 Drop in jobless rate defies SA economy’s sombre signals BL Premium reports that SA’s latest unemployment rate surprised, falling to its lowest since the first quarter of 2021. But even though SA created a record 1.48-million jobs over the past year – 81% in the formal sector of the economy – the employment numbers are still not back at their level before the Covid-19 pandemic. Even with the significant year-on-year improvement, the SA labour market is still 615,000 jobs below the peak employment level last seen in quarter four of 2018. Moreover, the fall in the unemployment rate is not in congruence with the country’s growth patterns, as increases in formal employment suggest the economy should be booming but GDP growth forecasts have been revised systematically lower in recent months. The Reserve Bank has over the past three meetings of the monetary policy committee changed its risk assessment of SA’s economic growth by more negative, downwardly revising GDP growth to 1.8%. Stanlib chief economist Kevin Lings commented that despite the reported job gains over the past year, it seemed clear that the SA economy has failed to keep pace with the growth in the population over an extended period and that the Covid-19 pandemic aggravated an already desperate situation. Nedbank economist Johannes Khosa said even though the decline in the unemployment rate in such a challenging macroeconomic environment was encouraging, the outlook for the job market remained uncertain. Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only) Other internet posting(s) in this news category
Basic food basket costs R500 more than a year ago TimesLIVE reports that South Africans are forking out over R500 more each month for basic food items compared with a year ago. This is according to the latest Household Affordability Index, compiled by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD). The index tracks food price data from 44 supermarkets and 30 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok. It shows that the average cost of a food basket in November 2021 was R4,272.44, while in the same month in 2022 it had been R4,835.96, a R563.52 increase. Foods that increased in price in November by more than 4% included maize meal, cake flour, samp, onions, wors, fish, carrots, apples, oranges and apricot jam. “This month sees a lot of price differences between areas, with a lot of different types of foods spiking. This month it is the Durban basket that has pushed up the price of the national average basket. [This] basket increased by R155.09,” said PMBEJD’s Mervyn Abrahams. The report indicated that in November the average cost to feed a child a basic nutritious diet was R838.65. Year-on-year, this had increased by R93.69 or 12.6%. Abrahams said the R480 child support grant was 28% below the food poverty line of R663 and 43% below the average cost to feed a child a basic nutritious diet. Read the full original of the report in the above regard by Suthentira Govender at BusinessLive Food inflation maintained its upward momentum in October, expected to peak in first quarter of 2023 Engineering News reports that food and non-alcoholic beverage inflation (‘food inflation’) in SA continued its upward momentum in October, according to the Bureau for Food and Agricultural Policy (BFAP) in its latest Food Inflation Brief. In year-on-year (y-o-y) terms, it reached 12%. In month-on-month (m-o-m) terms, food inflation was 0.9%. October saw a long list of food items with y-o-y inflation above 10%. The food categories which recorded the highest y-o-y inflation were (from highest to lowest) oil and fats (25.7%), bread and cereals (19.5%), meat (10.5%), milk and cheese and eggs (also 10.5%), fish (10.3%), sugar and sugar-rich foods (9.8%), non-alcoholic beverages (9.1%), vegetables (3.9%) and fruit (1.2%). “Regarding food, inflationary effects are still driven by agricultural commodities such as maize, wheat, soybeans and sunflower oil,” the BFAP noted in its report. The cost of the BFAP’s thrifty healthy food basket (THFB) increased by 12.5% (or R367) y-o-y and by 0.3% (or R10) m-o-m, to R3,298. The THFB comprised 26 food items from all food groups and was designed to feed a family of two adults, one older and one younger child, for a month. “Our view is that food inflation will remain high over the next three months as the full effects of persistently increasing commodity prices and weaker exchange rates filter through to retail markets. We expect that food inflation could peak in the first quarter of 2023, after which the higher base effects apparent from March 2022 will result in smaller inflationary effects during the rest of 2023.” the BFAP indicated. Read the full original of the report in the above regard at Engineering News Diesel prices set for big cut in December, but petrol prices to rise BusinessLive reports that SA motorists face a mixed bag in December, depending on what type of car they drive, with petrol prices looking set to rise and diesel prices due for a big cut. Fuel prices are adjusted on the first Wednesday of every month. According to the latest data by the Central Energy Fund (CEF), on 7 December the retail price of 95 unleaded petrol is due to increase by 41c/l and 94 unleaded is set to rise 30c/l. However, the prognosis for diesel car owners is positive. The price of high sulphur (500ppm) diesel will fall by R1.48/l and low-sulphur (50ppm) diesel by R1.42/l. Illuminating paraffin is expected to drop by 41c. But, these are estimates based on CEF data on Monday and it is still too early to accurately predict what lies ahead for December. SA fuel prices are driven by the international price of petroleum products and the rand/dollar exchange rate. The current retail price of 93 and 95 petrol inland is R22.57 and R22.87 R22.87/l, respectively. The wholesale prices of high sulphur diesel are R25.49 and R25.75 /l, respectively. Read the original of the report in the above regard by Denis Droppa at BusinessLive Other internet posting(s) in this news category
Marikana returns to haunt Ramaphosa in civil suit which is a step closer to trial Sunday Independent writes that President Cyril Ramaphosa will be heading to court for a grilling on his role in the Marikana massacre back in 2012 when the police shot and killed Lonmin mineworkers during a strike for a wage increase. The pleadings in the civil claim for damages brought seven years ago by the group of 349 surviving mineworkers against Ramaphosa, Lonmin (now trading as Sibanye-Stillwater) and the SA government, have now closed. The remaining step will be for the parties to share the documents on which they rely. The matter will then be set down for a trial, where Ramaphosa must come and testify why he should not be held personally liable for the massacre. The mineworkers want an unconditional apology for his actions and utterances, including a damages payment of nearly R1 billion. In June, the Johannesburg High Court made a ruling that opened the door for Ramaphosa to be held liable for collusive conduct during the Marikana massacre. The move brought the current head of state – who was back then a Lonmin director – one step closer to his day in court. Judge Frits van Oosten found that a case could be made that Ramaphosa “participated in, masterminded and championed the toxic collusion” between mining company Lonmin and the police that led to the Marikana massacre. The ruling did not hold the defendants directly responsible for the deaths. The claim for damages was lodged in 2015 and over the past seven years, Ramaphosa has raised technicalities in a bid to have the allegations against him quashed. At least four of Ramaphosa’s exceptions were upheld, but one was rejected. Read the full original of the report in the above regard by Setumo Stone at Sunday Independent Other labour / community posting(s) relating to mining
Police and courts not helping in Eskom’s crime fight, leaving staff ‘alone in the firing line’, says De Ruyter BL Premium reports that according to Eskom CEO André de Ruyter, the high safety risk that Eskom executives faced daily in the line of duty was “definitely not helping” with the retention of high-ranking employees or the recruitment of new personnel. He said it would be hard to imagine executives at any other company in SA having to suffer the working conditions that the top brass at Eskom had to endure daily. The state-owned power utility is facing numerous operational problems. The situation is exacerbated by incidents of “sabotage” and criminal syndicates operating at its power stations across the country. De Ruyter was quoted last week as saying the issue of sabotage was so serious that “on average there is a stage or two of load-shedding that can be attributed to these criminal activities”. Speaking to Business Day on Monday, he said Eskom believed there was a link between the increase in threats made against its employees and the ramping up of Eskom’s efforts to expose and root out corruption, sabotage and theft, which cost it at least R4bn annually. The situation would be more bearable, he said, if there was more support from the criminal justice system to act against those who did get caught for crimes committed against Eskom and its employees. Citing the recent arrest and subsequent release of an alleged coal thief by the Belfast Magistrate’s Court, De Ruyter said incidents like these made him question the criminal justice system’s commitment in combating crimes against the state. The utility has seen five high-profile resignations this year, and by April next year, long-serving Eskom employee and current COO Jan Oberholzer will reach retirement age. Read the full original of the report in the above regard by Denene Erasmus at BusinessLive (subscriber access only) Two guards arrested after diesel stolen from Eskom power station in East London TimesLIVE reports that two guards employed by a security company contracted by Eskom to protect Port Rex power station in East London were arrested on Monday for allegedly stealing 5,863l of diesel valued at about R145,930. The guards were arrested while on duty at the power station. “Through internal investigations, it was established that the arrested security guards permitted a vehicle to collect the stolen diesel from the site during the night shifts, for which they were paid in return,” Eskom indicated. The two suspects will appear in the East London Magistrate’s Court on Wednesday. “It is appalling that the individuals entrusted with the responsibilities of safeguarding our infrastructure resort to such acts of malfeasance. These arrests are another significant step in our fight against crime in Eskom, and we shall continue our pursuit to ensure the perpetrators face the full might of the law,” said Karen Pillay, GM for security at Eskom. The power utility said an investigation was ongoing to identify other suspects. Read the original of the report in the above regard at BusinessLive. See too, Guards arrested for stealing thousands of litres of diesel at Eskom power station, at Engineering News Camden power station ‘sabotage’ suspect released on bail of R6,000 TimesLIVE reports that Simon Shongwe, the man who allegedly tampered with Eskom infrastructure, was on Tuesday granted bail of R6,000 on condition he does not go to the Camden power station. Shongwe, 43, who was an Eskom subcontractor, is facing charges of tampering with Eskom essential infrastructure, tampering with electricity supply and trespassing. His bail application was heard in the Ermelo Magistrate’s Court last Thursday. The matter was postponed until 27 January for further investigation, National Prosecuting Authority (NPA) spokesperson Monica Nyuswa indicated. On 10 November, unit 4 at the Camden power station tripped, increasing load-shedding. On investigation, it was found someone had removed drain plugs from the main bearing at the unit, resulting in the shaft overheating and tripping the generator. The entity suffered a loss of more than R1m, Nyuswa noted. Read the full original of the report in the above regard at SowetanLive. Lees ook, Borgtog vir vermeende Eskom-saboteur, by Maroela Media
Hawks appoint new deputy chief, but 48% of posts still remain vacant News24 reports that on Tuesday, Hawks boss Lieutenant-General Godfrey Lebeya revealed that the Directorate for Priority Crime Investigation (DPCI), as the crime-fighting unit is officially known, is operating at only 52% capacity, although it was working towards filling around 1,500 posts as soon as possible. Lebeya also announced in a briefing that 244 officials – ranging from junior to middle management – were recently appointed to fill the vacancies. In addition, several senior posts have been filled, including that of Lebeya's deputy. Lieutenant-General Siphesihle Nkosi started in the deputy post on 1 November. Lebeya advised that there were another 290 posts currently sitting before panels. The issues of capacity had an effect on the finalisation of investigations due to the higher workload that each official had to shoulder as a result of the shortages, he indicated. Lebeya did not appear concerned over budgets for the new positions, explaining that there were sufficient funds for the posts currently being filled, and that they would engage with the relevant authorities once the budget had been exhausted. He also used Tuesday's briefing to outline recent successes by the Hawks in the second quarter of the financial year. Read the full original of the report in the above regard by Alex Mitchley at News24
Finance Minister says NHI unlikely to receive substantial budget allocations soon Fin24 reports that according to Finance Minister Enoch Godongwana, the 2023 Budget to be tabled in February is unlikely to have a substantial focus on the National Health Insurance (NHI) and will focus on overcoming service delivery backlogs in the present system. The NHI Bill is being processed by the National Assembly, which hopes to its complete deliberations before Parliament rises next week. But, the Treasury has yet to provide details on how the NHI will be financed. In reply to a parliamentary question, Godongwana was frank that little work had been done on NHI financing and stressed that full implementation was still some way off. A more likely scenario was a gradual phasing in of some benefits over time. Godongwana indicated: “The need for and timing of further updates to the NHI costing model will be determined by practical progress with NHI, spending patterns, and the timing of the legislative process. Further cost modelling will need to be informed by further development of the NHI benefit package, healthcare utilisation trends and projections, and unit costs.” He also cautioned that "the cost model will not automatically translate into budget allocations as these would have to be made as part of the budget process which will take into account the macro-economic environment and fiscal space." While the DA has been pushing for a commitment that the NHI will not be implemented, even partially, before the financing issues are sorted out, Godongwana said he could not give such an undertaking. Read the full original of the report in the above regard by Carol Paton at Fin24
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