In our Tuesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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State of disaster declared over flooding as forecasters warn of more downpours, strain on rescuers News24 reports that the government has declared another national state of disaster, this time in response to widespread flooding across the country – with forecasters warning that persistent and heavy rains this week could put a prolonged strain on rescue teams. In an unexpected statement on Monday night, the Presidency said the declaration would enable "an intensive, coordinated response" to the impact of floods in Mpumalanga, the Eastern Cape, Gauteng, KwaZulu-Natal, Limpopo, the Northern Cape, and North West regions. Last week, President Cyril Ramaphosa announced a national state of disaster in response to the power crisis. While the latest declaration of a state of disaster over flooding is seen to be necessary, it remains to be seen where government will get the resources needed to ensure affected communities are helped quickly. The SA Police Service and the SA National Defence Force may be required to play a role in the response to the disaster. The flooding follows widespread and often heavy rainfall over the eastern and north-eastern provinces from last week. A number of people died after being swept away, while disaster management officials also responded to reports of flooded homes, submerged vehicles and people trapped on roofs. According to the SA Weather Service (SAWS), major rivers, especially those transiting the Kruger National Park and the Lowveld, have been in full flood since the start of the weekend. SAWS has warned of further "persistent and heavy downpours", especially over the Lowveld and along the escarpment areas of both Limpopo and Mpumalanga. Read the full original of the report in the above regard by Cebelihle Bhengu at News24 (subscriber access only). Read too, Government declares floods a national state of disaster, at BusinessLive Camps closed and staff evacuated as Kruger National Park expects more rainfall IOL reports that SA National Parks (SANParks), the body responsible for the upkeep of parks, including the Kruger National Park (KNP), has announced that park management has temporarily closed some remote camps and evacuated staff to nearer, safer camps following flooding in Mpumalanga. The decision comes as parts of the KNP are expected to receive more rain in the coming week, and the temporary closure of camps is effective until the situation improves. KNP managing executive, Oscar Mthimkhulu, said gravel roads and remote camps had been temporarily closed, including those used to evacuate guests from Lower Sabie, Biyamiti and Crocodile Bridge out of the KNP on Sunday as a precautionary measure. “Closures are necessary to ensure everybody’s safety during this time and we would like to advise guests to stick to the tar roads while driving inside the park. A disaster management team is in motion and periodical updates will be released until the situation improves,” said Mthimkhulu. Read the full original of the report in the above regard by ZamaNdosi Cele at IOL
Eskom describes court action to stop tariff increases ‘simplistic and myopic’ Moneyweb reports that according to Eskom’s CFO Calib Cassim, efforts by the Democratic Alliance (DA) and the Tebeila Institute of Leadership, Education, Governance and Training to prevent the implementation of the 18.65% increase in the state-owned power utility’s revenue as granted by energy regulator Nersa will cause irreparable harm to the economy. In an affidavit filed last week, Cassim called the urgent court applications, which may be heard together early in March, “simplistic and myopic”. The two parties launched their applications shortly after Nersa announced on 12 January that it had granted Eskom revenue totalling R319 billion in 2023/24 and R352 billion in the following year. This translates to increases of 18.65% and 12.74% in the amounts the utility is entitled to recover from electricity tariffs in those years. This came against the backdrop of intense and continuous load shedding that is costing the economy dearly, as businesses and households spend large amounts to supplement the power supply from Eskom or suffer heavy financial losses. Consumers are at the same time suffering the impact of increasing interest rates, very low economic growth and rising prices of food products. Nersa’s announcement led to a public outcry about rising electricity costs while supply is ever deteriorating. Cassim pointed out that setting aside the revenue determination would not allow Eskom to simply continue to charge consumers at current tariff levels – it would leave Eskom without any revenue. This would be catastrophic and detrimental to the very people the applicants were trying to protect, as well as the economy as a whole, he warned. He also pointed out that the application was “at war with itself” as it complained of load shedding while attacking the increase in revenue that would assist Eskom in reducing load shedding. Read the full original of the report in the above regard at Moneyweb Other internet posting(s) in this news category
Msunduzi outlines plans to ensure the safety of municipal employees The Witness reports that following a surge in attacks on municipal employees while on duty, Msunduzi Municipality’s security team has begun escorting employees to work sites. In a press report published in January, employees stated that they were being robbed at gunpoint and were losing their belongings. Between January and August last year, at least four incidents of robbery of employees at gunpoint had been reported. Mxolisi Mkhize, deputy mayor and chair of the infrastructure portfolio committee, outlined the city’s plans for employee safety: “When the park employees are cutting grass, you will see a security vehicle parked there or patrolling. They can’t cut the grass on the side of the road by themselves because they are robbed in broad daylight. If ever the security is not around, it means that you can’t deploy them to go and perform their duties.” He added that the situation was especially troubling for them as a service department specifically tasked with serving the community. “We are working with law enforcement agencies to make sure that we continue rendering services,” Mkhize indicated. Read the full original of the report in the above regard by Ntombizethu Ngcobo at The Witness. Read too, eThekwini mayor to beef up security in the city after fatal shooting of AKA and friend, at EWN Other internet posting(s) in this news category
Decade-old silicosis class action suit clears another hurdle as SCA throws out DRDGold and ERPM appeal Moneyweb reports that last week the Supreme Court of Appeal (SCA) threw out an appeal by DRDGold and East Rand Proprietary Mines (ERPM) against an earlier Johannesburg High Court decision certifying that mine workers suffering harm in the course of their work constituted a ‘class’. The class action was brought on behalf of thousands of surviving or deceased mineworkers and their dependents who contracted silicosis as a result of breathing silica dust during their work. The case has been 10 years in the making as the 32 gold mining companies cited as respondents resisted attempts to have the workers’ certified as a class. In 2016, the South Gauteng High Court allowed the class action to proceed, a decision that was immediately appealed by the mining houses. In 2018, 19 mining companies reached a settlement with the claimants, under which mineworkers and their dependants could claim compensation for harm suffered in the course of their work. In 2019 the High Court was asked to approve the settlement and it certified two classes, a silicosis and a tuberculosis class. The class action comprises two phases: the first to establish liability of the mining companies, and the second to settle individual claims. DRDGold and ERPM opted not to participate in the settlement agreement, and decided, unsuccessfully, to argue their cases in the SCA. The SCA also found that a ‘declarator’ issued by the High Court allowing general damages claims by deceased mineworkers to be transmitted to their dependants remains intact. This means the class action against DRDGold and ERPM can proceed to trial. Read the full original of the detailed report in the above regard by Ciaran Ryan at Moneyweb Other general posting(s) relating to mining
Randall Williams presided over collapse of Tshwane’s finances, says Samwu BL Premium reports that the SA Municipal Workers’ Union (Samwu) has welcomed the resignation of DA councillor Randall Williams as Tshwane’s executive mayor, saying he presided over the collapse of the metro’s finances. “In his resignation letter, Williams attempts to paint a rosy picture of his tenure. He, however, neglects to mention the fact that under his watch, the city’s finances deteriorated to a state that has never been seen before,” said Samwu Tshwane regional chair Nkhetheni Muthavhi. He added: “It was under his watch that for the first time in history, the city received an adverse audit finding. This is the same man who was protected by the coalition government when there was clear evidence that he tried to manipulate the city’s supply chain process by attempting to sneak through the backdoor and give his preferred company a tender worth R26bn.” Williams’s resignation comes months after the DA-led multiparty coalition – consisting of ActionSA, ACDP, IFP, COPE and Freedom Front Plus – issued a joint statement in August 2022, indicating that it had agreed to an independent investigation after allegations surfaced that Williams interfered in a R26bn energy investment proposal for the metro. In a statement on Monday, Williams said he was resigning with immediate effect as executive mayor, stressing that his untimely exit was in the best interests of the multiparty coalition. However, just hours later in another statement, Williams said that to ensure the continuity of the council’s work, he had amended his resignation to take effect from midnight on 28 February. Samwu called on all political parties represented in the council to put aside their political differences and elect a mayor “who cares for service delivery and workers alike”. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
CWU calls for cash injection for ailing Post Office TimesLive reports that the Communication Workers Union (CWU) has called on the Department of Communications and Digital Technologies and the National Treasury to meet to discuss financial assistance for the ailing SA Post Office (SAPO). This after SAPO sent a retrenchment notice to its employees on Thursday informing them about its intention to retrench 6,000 workers. “They attached 6,000 names and proposed a meeting be held under the auspices of the Commission for Conciliation, Mediation and Arbitration,” CWU general secretary Aubrey Tshabalala reported. The union has rejected the proposed retrenchments, saying the network of post offices would shrink or be destroyed. “This means the post office would not be able to generate profits. That is why we reject this proposal,” said Tshabalala, whose union represents 6,000 of the 14,500 employees. He added: “We will have to study the list. We do not think management knows what it is doing. We are also dealing with an indecisive management. Two weeks ago, we were discussing cuts of salaries by 40%. We were still discussing the issue and then we get a letter informing us about the planned retrenchments.” Read the full original of the report in the above regard by Ernest Mabuza at SowetanLive Post Office layoffs won’t hurt Postbank’s bid for a full banking license BL Premium reports that the plan by the cash-strapped SA Post Office (SAPO) to downsize its workforce by slashing 6,000 jobs will not affect the Postbank, which is eager to be granted a full banking licence, paving the way for it to become the state-owned bank. Postbank, which has been operating under technically insolvent SAPO, is a separate company and is not involved in discussions between unions and the employer regarding looming retrenchments at the state-owned postal services. Separation is necessary for Postbank to get a full banking licence from the Reserve Bank. SAPO is not in a sound enough financial position to meet requirements for registration as a bank-controlling company in terms of the Banks Act. Postbank operates on limited conditions, including providing various banking services for the unbanked. However, it is unable to provide the full range of banking services, including credit facilities, until it is granted a full banking licence. “They [SAPO management] gave us a notice on Thursday saying they want to retrench 6,000 workers nationally,” CWU general secretary Aubrey Tshabalala reported on Monday. He added that the Commission for Conciliation, Mediation and Arbitration (CCMA) “is going to run the process. The CCMA has to give us a date when we will meet.” The proposed plan to retrench workers at Sapo has been condemned by the DA and the EFF. Read the full original of the report in the above regard by Luyolo Mkentane & Thando Maeko at BusinessLive (subscriber access only)
Sugar association rejects any sugar tax increase, warns of job losses BL Premium reports that ahead of the upcoming budget speech, the SA Sugar Association (Sasa) has called on the government to halt any increase or expansion of the sugar tax, saying it needed time to research and implement its diversification strategy under which sugar cane would be used for a wide range of applications outside refined sugar. A study commissioned by the body and conducted by the Bureau for Food and Agricultural Policy (BFAP) revealed that an increase or expansion of the health promotion levy (HPL), also known as the sugar tax, would result in a drastic 125,000-tonne reduction in local refined sugar demand for 2023/2024. The association cautioned that changes to the sugar tax could put up to 6,000 jobs and the livelihoods of 3,000 small-scale farmers at risk. Introduced in 2018, the levy applies to sugary beverages and was implemented as a means to decrease diabetes, obesity and other related diseases. In the budget speech of February 2022, the finance minister hiked the HPL from 2.21c per gram to 2.31c per gram, but the increase was postponed due to the moratorium negotiated under the Sugar Masterplan, with the government indicating a need for broader consultation. However, the moratorium is coming to an end this year and there have been a number of new proposals for increasing and expanding the levy. The SA Cane Growers Association has called for the HPL to be scrapped, saying the sugar tax was another unnecessary burden on an industry struggling to irrigate its crop due to intensive load-shedding while fighting to keep up with cheap sugar imports. Read the full original of the report in the above regard by Michelle Gumede at BusinessLive (subscriber access only). Read too, Health-tax hikes threaten thousands of SA sugar jobs, at Moneyweb
Government Employees Pension Fund in R2.8bn Waterfall City deal with Attacq BL Premium reports that Attacq has teamed up with the Public Investment Corporation (PIC) to fund a R2.8bn Waterfall City development pipeline in a deal that hands the Government Employees Pension Fund (GEPF) a substantial stake. The GEPF, on whose behalf the PIC invests more than R2.5-trillion in government employee assets, will acquire a 30% stake in the ordinary shares and shareholder loans held in Attacq Waterfall Investment Company (AWIC) for about R2.5bn and R300m into AWIC as a shareholder loan. AWIC is a wholly owned subsidiary of Attacq and the owner of Waterfall City. The bulk of the funds have been allocated to the Waterfall City precinct to roll out pipeline developments including the landmark logistics hub at Waterfall Junction being developed in a joint venture partnership with Sanlam Properties. Attacq is a real estate investment trust with a diversified property portfolio that comprises the mixed-use Waterfall City precinct, Lynnwood Bridge in Pretoria, MooiRivier Mall in Potchefstroom and Eikestad Mall in Stellenbosch. “This partnership is beneficial to both parties as it marries capital investment and quality real estate,” said Attacq CEO Jackie van Niekerk. Read the full original of the report in the above regard by Denise Mhlanga at BusinessLive
Special Tribunal dismisses ex-Eskom manager's bid to have pension preservation order reconsidered Fin24 reports that the Special Tribunal has dismissed, with costs, an application by former Eskom manager Duduzile Moyo to have a preservation order reconsidered. The SIU successfully applied to have Moyo's pension benefits frozen in September last year, pending the conclusion of its investigations. According to the SIU, Moyo resigned from the power utility when the unit started probing contracts she was managing at two power stations. An investigation by the SIU revealed that Moyo unlawfully benefitted R24,584,000 from a multimillion-rand contract to transport water from Kendal power station to Kusile power station. The contract was signed with a company called Tamukelo. According to the SIU, the modus operandi employed by Moyo was to create structures or entities owned by members of her family and friends to receive funds. There was a clear conflict of interest, in that she received these funds in circumstances as part of her duties and functions as middle management. "Moyo also deceived Eskom and repeatedly made fraudulency misrepresentation, declaring that there was no conflict of interest when dealing with Tamukelo and other role-players for five years when signing Eskom's annual declaration of conflict of interest policy," the SIU stated. Read the full original of the report in the above regard compiled by Jeanette Chabalala at News24
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