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 Thursday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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SANDF members paid after last-minute decision to keep computer servers operating despite faulty air conditioning Sunday Times Daily reports that to avert a salary payment crisis within the SA National Defence Force (SANDF), last-minute decisions kept vital computer servers functioning despite their air conditioning systems not working. An internal SANDF document revealed last week that if the computer servers were to be protected from damage caused by overheating, they would have to be shut down. However, shutting down the systems, would have resulted in the SANDF’s 72,000 members, including reserve force members and civilian employees, not being paid their monthly salaries. SANDF members are paid on the 15th of every month. A source within the SANDF said: “A last-minute decision was taken by senior commanders to keep the systems running. The operation of the systems and the ultimate payment of salaries were deemed far more important than the systems crashing. The problem is the air conditioning systems, which are critical to keeping the servers at a regulated operational temperature, are still faulty. The problem has not been solved — it has just been moved to next month. Repairs were done in November to the air conditioners, but they broke again, with the problems from then reoccurring now.” Pikkie Greeff of the SA National Defence Union (Sandu) confirmed that defence force members had been paid their February salaries. He noted: “Every day the air conditioners are not fixed, the risk of the servers breaking down increases. Sooner rather than later the servers will become inoperable.” Read the full original of the report in the above regard by Graeme Hosken at Sunday Times Daily (subscriber access only) Unions say Transnet can’t just take back wrongfully paid double salaries over two months The Citizen reports that in January Transnet Freight Rail (TFR) employees discovered that they had been paid double salaries, but now the employer is demanding that they pay back the cash as soon as possible. According to trade unions, a technical glitch occurred when management switched from one bank to another, resulting in double payments. The United National Transport Union (Untu) and SA Transport and Allied Workers’ Union (Satawu) have slammed the state entity’s insistence that the extra money be paid back within two months. The unions say that most of their members would prefer that their accumulated leave days be deducted as reimbursement, instead of cash back. Several meetings have been held this month, but no agreement has been reached. Untu’s John Pereira accused TFR of breaching clause 34 of the Basic Employment Conditions Act. “Clause 34 2(d) says an employer is not allowed to take more than a quarter of someone’s salary for repayments. That’s what we’ve been fighting over. They can at least suggest four instalments.” He went on to say: “Employees have always had an option of encashing their accumulative leave days. This is voluntary and not something that can be enforced. They have requested to utilise their accumulative leave days to enable them to pay the monies owed.” Satawu’s Anele Kiet said those who could afford to repay in cash could do so within 12 months, as per the existing collective agreement between the parties. “We had a discussion with management on Monday, and they came up with various suggestions that are not even in line with the collective bargaining agreement. We opposed that as unions, because Transnet clearly wants to get the money back as quickly as possible. We rejected their two-month deduction option because this [overpayments] was not the workers’ fault,” Kiet indicated. Read the full original of the report in the above regard by Getrude Makhafola at The Citizen (subscriber access only)
Ratings agencies warn SA ahead of budget about loadshedding risks News24Wire reports that with a week to go before Finance Minister Enoch Godongwana tables his budget in Parliament, two global credit ratings agencies have warned of SA's deteriorating risk profile due to the impact of prolonged electricity cuts on the economy. On Wednesday, Fitch Ratings said that while it had anticipated the power cuts would continue into 2023, "the further deterioration of electricity supply goes beyond our base case and presents downside risks to our forecast that economic growth will average 1.1% in 2023". However, Fitch has not yet revised its growth projections due to higher-than-expected growth in the third quarter of 2022, which it believes "should limit the size of downward revisions to our 2023 growth forecast". Fitch has also not revisited SA's credit rating of BB- with a stable outlook (three notches below investment grade) saying there was still headroom to absorb a temporary impact on economic metrics from load shedding. Moody's Investor Service commented: "We expect the blackouts' effect on businesses, consumer sentiment and investment will weaken the country's already subdued economic growth prospects and threaten social and political stability… Given South Africa's social inequities and high unemployment rates, social and political instability are likely to intensify, especially given the electricity regulator's January decision to grant an increase in electricity prices of more than 18%, effective 1 April." Both agencies noted the SA Reserve Bank's downward revision to its 2023 growth forecast from 1.1% to 0.3% and the central bank's expectation that power cuts would remove two percentage points from growth over the next three years. Read the full original of the report in the above regard at Engineering News Other internet posting(s) in this news category
Protesters blocked major roads in Cape Town on Monday in cleaning contract dispute GroundUp reports that protesters blocked major roads in Cape Town on Monday in an ongoing dispute with a cleaning company contracted to the City. Community activists said the protesters wanted the City to fire cleaning company Mega Ndira Resources and hire a new company in its place. The protesters had called on the cleaning company to hire new supervisors along with new cleaners so that different people could get jobs, but without success. Five protesters were arrested, but released without charge. They had been part of a crowd which blocked Baden Powell Drive and Walter Sisulu Drive with burning tyres and stones. Community activist Nonceba Ndlebe indicated: “We don’t want Mega Ndira because its managers don’t want to cooperate with the residents. We want the City to hire a new company that will cooperate with us and employ new supervisors yearly so that we can share the cleaning jobs and also benefit from the cleaning project.” Ward 96 councillor Lucky Mbiza stated: “I support the protesters. The residents also want to get a chance to be supervisors. Mega Ndira Resources has failed to work with the community.” Zukisani Beseti of Mega Ndira Resources responded that the terms of the contract did not allow the company to be “dictated to” by community leaders and that they should take their complaints to the City. He said the company was on a month-to-month contract with the City and could not change all the supervisors. He added that the company had asked the community leaders to allow it to change only half of the supervisors “for the sake of stability”, but they had refused to do so. Read the full original of the report in the above regard by Vincent Lali at GroundUp
Natascha Viljoen announces shock resignation as Amplats CEO Miningmx reports that Natascha Viljoen is to step down in the next 12 months as CEO of Anglo American Platinum (Amplats) in order to take up a position at US gold miner Newmont Corporation. Viljoen’s departure is a surprise as she was only appointed three years ago. In addition, Amplats is currently facing operational headwinds including delays to the expansion of its flagship Mogalakwena mine. Viljoen said she would be “forever grateful’ for her time at Amplats but that she had identified the next stage of her career. She is committed to serving a 12 month notice period. Anglo American owns 80% of Amplats and Viljoen’s departure is said to have created uncertainty at the apex of one of the group’s most important profit drivers. It also opens the question of who might run Amplats in the future given the difficulty of attracting top international executives to SA where the company is based. An internal appointment might follow or the way could be cleared for the return of Chris Griffith, who had been CEO of Amplats for seven years before becoming CEO of Gold Fields. He resigned from Gold Fields in November. A former Lonmin executive, Viljoen was head of Amplats’ processing division from 2014. She previously worked at AngloGold Ashanti and was GM of BHP’s Klipspruit Colliery prior to joining Lonmin in 2008. The process to identify Viljoen’s successor is now under way. Read the full original of the report in the above regard by David McKay at Miningmx. Read too, Amplats' Viljoen makes a move to Newmont, at Mining Weekly. And also, Amplats CEO resigns to take US job, at Moneyweb Twenty-one suspected illegal miners appear in Stilfontein court for bail application IOL reports that the case against 21 suspected illegal miners who are accused of a host of charges including conspiracy to commit robbery and possession of unlawful fireams, was postponed to 27 February at the Stilfontein Magistrate’s Court. This was due to the court allowing further investigations and a further bail hearing for six of the accused. National Prosecuting Authority spokesperson Henry Mamothame indicated: “The state is opposing bail for all six applicants. It has been verified that two of the applicants are from Lesotho, one from Swaziland and three are South African citizens. One accused is still out on R5,000 bail, while fourteen others have not registered interest in applying for bail.” The group was arrested on 10 October by the North West Hawks assisted by Special Task Force, National Intervention Unit, District Illegal Mining Task Team, Tactical Response Team, Bidvest Protea Coin and Harmony Gold Mine when the law enforcement members embarked on an early morning raid at a mine shaft in Stilfontein. The operation followed weeks of surveillance into the alleged illegal mining activities of the suspects and resulted in the arrests, as well as the seizure of 15 AK47s, six hunting rifles, two shotguns and one R5, boxes full of ammunition, explosives, and an undisclosed amount of money. Accused 21 was arrested at his home and is currently applying for bail. He was suspected of transporting food and goods to illegal miners while on site. His vehicle was also seized. Read the full original of the report in the above regard by Molaole Montsho at IOL Other labour / community posting(s) relating to mining
Consumer inflation slowed to 6.9% in January, but food prices hit new high BL Premium reports that consumer inflation slowed for the third consecutive month in January to 6.9% from December’s 7.2%. This was its lowest level since May, but the reading was still well above the SA Reserve Bank’s (SARB’s) 3-6% target range. Analysts warned that rising food inflation and rand weakness – mainly as a result of dollar strength – would remain upside risks to the inflation outlook. According to Stats SA data, the decrease in consumer inflation was mainly a result of a notable fall in the price of fuel. But prices in the “food and nonalcoholic beverages” category were sharply to the upside, rising 13.4% on an annual basis, the highest level since April 2009. Core inflation, which excludes short-term price shocks such as food and fuel prices, stood at a three-month low of 4.9% in January, unchanged from the prior month. Absa’s Peter Worthington noted that even though the SARB’s monetary policy committee (MPC) would be comforted by the easing headline inflation and steady core CPI inflation, “we believe that they will be worried about the implication of rising food inflation on wage settlements”. He commented: “Rising food inflation along with elevated inflation expectations could be an important driver of upward pressure on wage inflation.” Other upside risks to inflation include the recently announced 18.65% increase in electricity tariffs, broadly expected to be reflected in headline inflation from July. Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only). Read too, Inflation cools, but red-hot food prices hit new high, at Fin24 Other internet posting(s) in this news category
One year on, SA still doesn’t offer remote working visa Moneyweb reports that it’s been a year since President Cyril Ramaphosa said in his 2022 state of the nation address (Sona) that a comprehensive review of the work visa system was “currently underway”. Led by a former director-general of Home Affairs, the review was said to be “exploring the possibility of new visa categories that could enable economic growth”, including “a remote working visa”. The president has apparently been in possession of a report with recommendations on the adoption of the remote working visa since December. In his 2023 Sona Ramaphosa provided the following update: “Having completed a comprehensive review of the work visa system, we will move quickly to implement the recommendations put forward. We will also be introducing a remote worker visa and a special dispensation for high-growth start-ups.” Rosemary Anderson of the Federated Hospitality Association of Southern Africa (Fedhasa) said it was “inexcusable that we have not done this yet.” According to her, several other jurisdictions have been quick off the mark to capitalise on the growing number of ‘digital nomad’ or remote workers. Every day lost is a missed opportunity to earn foreign currency and create jobs, Anderson lamented. “Questions regarding tax, length of stay, health insurance and other factors have all been sorted out by dozens of countries, so there is no reason why we can’t do the same,” she pointed out. “We need to start equating all the obstacles created by government in terms of job losses … Home Affairs’ tourism visa protocols, [the] lack of a true eVisa system and the long missing-in-action digital nomad visa is damaging and stunting tourism job creation in South Africa,” Anderson stated. Read the full original of the report in the above regard by Amanda Visser at Moneyweb
Operation Dudula and other latecomers to the Zimbabwe Exemption Permit litigation are muddying the waters Christopher Fisher of the Helen Suzman Foundation (HSF) writes that last week the Pretoria High Court heard applications from the All Truck Drivers Forum and Allied SA (ATDFASA) and Operation Dudula to intervene in the HSF’s review of government’s decision to terminate the Zimbabwe Exemption Permit (ZEP). The case is set to be heard between 11 and 14 April this year, alongside two similar applications from the Zimbabwean Exemption Permit Holders Association and the Zimbabwean Immigration Federation. ATDFSA and Operation Dudula sought to join proceedings to offer belated support for government’s decision, which if upheld in April would spell disaster for 178,000 ZEP holders and their families. In a judgment delivered on 10 February 2023, Operation Dudula’s application to intervene was refused, but ATDFSA was allowed to make its voice heard in April’s proceedings. Operation Dudula hoped to join April’s proceedings to argue that ZEP holders contributed to “the already dire situation of criminality” in SA. ATDFSA used its application to argue that the ZEP’s very existence contributed “to the proliferation of illegal undocumented drivers in the trucking industry”. HSF opposed both applications for their lack of factual basis and their deliberate attempt at muddying the real issue before the court come April. The HSF’s argument is that Minister of Home Affairs Aaron Motsoaledi terminated the ZEP without consulting its holders, nor measuring the decision’s impact on them or the South African society in which they have lawfully lived for more than a decade. Read the full original of the report in the above regard by Christopher Fisher at GroundUp
High Court grants order placing SA Post Office’s MediPos under curatorship Sunday Times Business Times reports that the Council for Medical Schemes has secured an order from the North Gauteng High Court for the curatorship of MediPos, the medical aid provider for SA Post Office (SAPO) employees. This comes after years of financial difficulties at SAPO, which has failed on many occasions to pay employee medical aid contributions to the medical aid provider on time. In October last year, the entity was ordered to pay R4.5m in contributions to MediPos by the Labour Court after litigation from the trade union Solidarity. By November, it failed to pay contributions again. The curatorship comes as Sapo seeks to cut salary spending, including through job cuts. SAPO spokesperson Johan Kruger said they had been looking to end the “in-house” provision of medical aid benefits to employees and were looking to give employees the freedom to choose their own providers. He also indicated that although post-retirement medical aid benefits were stopped in 2005, the liability of those who were already in the system was high and only grew after they added beneficiaries over the years. “Over the past 11 years, Sapo has covered these post-retirement medical aid benefits to the tune of R1.3nn. This liability has to be removed from the balance sheet, hence the buyout process (cash amounts offered to the holder to stop the medical aid) has started,” he indicated. Read the full original of the report in the above regard by Khulekani Magubane at Sunday Times (subscriber access only). Read too, Post Office a ‘major disaster’, its death inevitable, at The Citizen (subscriber access only)
Bank branch manager accused of ‘shouting’ at staff must be reinstated, five years after she was fired IOL reports that the Labour Appeal Court (LAC) has ruled that a Standard Bank branch manager who was accused of shouting at staff should be reinstated, five years after she was fired. Zimbini Makuleni was fired in January 2018 as manager of the Centurion branch following a suspension in 2017. She was accused of creating a hostile environment at the branch by communicating with subordinates in a manner that was disrespectful, offensive and childish. The bank also claimed she shouted at her subordinates and used vulgar language in front of other colleagues and customers. Makuleni approached the CCMA and in October 2018 it was ruled that her dismissal had been unfair and that she should be reinstated. Standard Bank took that ruling on review in the Labour Court and in September 2021 the court ruled in its favour. Makuleni then approached the LAC where her matter was heard five years after her dismissal. During the appeal, Judge Roland Sutherland noted there were no specific allegations in the charges and the incidents mentioned by nine complainants were only vaguely located in time. In his findings, Sutherland said the Labour Court misdirected itself when it accepted Makuleni’s subordinates as witnesses against her and thinking they had no motive to lie. He pointed out that Makuleni had worked for the bank for 23 years and yet, in the Labour Court, no serious weight had been given to that. Sutherland noted that Makuleni had been given the position because the branch needed to be fixed. “Under her leadership, the branch was recognised as the third best-performing branch in the business... If her style of management was inconsistent with what the respondent wanted, the results certainly were what they wanted,” Sutherland observed. Read the full original of the report in the above regard by Brenda Masilela at IOL. Read too, You can’t be fired just because you’re unpopular, Labour Appeal Court rules in bank manager case, at GroundUp
Transnet Freight Rail employee arrested for illegal sale of freight containers for R40,000 each Engineering News reports that state-owned Transnet Freight Rail (TFR) has commended the swift efforts of internal TFR investigators and law enforcement authorities in the arrest of an employee linked to the illegal sale of freight containers owned by Transnet. Management at TFR’s Polokwane depot received a complaint from an anonymous caller that containers were allegedly being sold by a Transnet employee for R40,000 each. Investigations were conducted and it was found that eight containers were missing. Further investigation identified a Transnet employee as being involved. Witness statements were obtained, a case of theft and fraud was registered and the employee was arrested on 14 February. The employee was scheduled to appear in court on 15 February. Read the full original of the short report in the above regard at Engineering News. Lees ook, Werknemer verkoop glo Transnet-vraghouers, by Maroela Media
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