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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A better budget than expected, providing tax relief for working South Africans Moneyweb reports that the budget presented by Finance Minister Enoch Godongwana on Wednesday managed to achieve the near impossible – providing tax relief to working South Africans while restructuring Eskom’s debt, and all of this in a low-growth economy. Investec chief economist Annabel Bishop commented: “The market was expecting a more negative outcome, and the fact that the government is budgeting for a primary surplus this year and the next three – where income exceeds non-interest spending – explains why the rand strengthened immediately after the budget speech.” But the debt mountain – projected to increase from R4.73 trillion in 2022/23 to R5.84 trillion in 2025/26 – is growing. Bishop noted that this was due to the hefty debt relief offered to Eskom – close to three quarters of the R350 billion guaranteed by the state. Government will provide tax relief of R13 billion in 2023/4, and personal income tax brackets will be adjusted for inflation. The threshold before which tax is payable rises from R91,250 to R95,750. There is also relief for pensioners, who will now be able to withdraw R550,000 tax-free at retirement. “Providing tax relief of R13 billion is commendable in an environment where inflation is high, and it shows that there is a sensitivity to the difficulties being faced by ordinary South Africans,” said Bishop. Of some concern is the rise in spending on the so-called ‘social wage’ – more than 60% of non-interest expenditure over the medium term goes to the social wage, which includes social grants and the costs of public delivering services such as schools, clinics and hospitals. Some R66 billion is allocated to social development over the medium term, with R36 billion to fund the extension of the Covid-19 Social Relief of Distress grant until 31 March 2024. Read the full original of the report in the above regard by Ciaran Ryan at Moneyweb Public sector unions reject finance minister’s budget, warn of indefinite strike Fin24 reports that as Finance Minister Enoch Godongwana tabled his national budget on Wednesday and with negotiations over public servants' wages unravelling, public sector workers handed over a memorandum to government warning of an indefinite strike. Demonstrations were held near Parliament in Cape Town as Cosatu, Saftu, the SA Policing Union, Nehawu and other unions demanded a 10% wage increase in public sector wages, a R1,500 basic income grant and increased employment in the public sector. In addition, their memo demanded an end to alleged attacks on collective bargaining, the protection of the Public Service Coordinating Bargaining Council (PSCBC) as an institution for social dialogue, and the filling of vacant posts within the public service sector. According to Saftu’s Zwelinzima Vavi, the unions have also rejected what they called the "austerity" measures implemented by Godongwana, arguing that such measures would lead to an increase in unemployment and a breakdown of critical infrastructure in the public sector. Godongwana, however, specifically noted in his speech that the budget was "not an austerity budget", but said that the current and future wage negotiations "must strike a balance between fair pay, fiscal sustainability and the need for additional staff at the frontline services". Recently, certain unions withdrew from the PSCBC negotiation process, arguing that government had undermined the process between the parties. While Treasury had pencilled in a 3.3% increase in the state’swage bill, a 4.5% increase offer was recently tabled at the PSCBC. Government has also taken out the R1,000 non-pensionable payment to public servants instead of pensionable wage increases, which could potentially anger public sector unions. Gondongwana said that it could be reinstated if no wage agreement was reached. Read the full original of the report in the above regard by Na'ilah Ebrahim at Fin24. Read too, Godongwana warns unbudgeted public sector wage settlement ‘major risk to fiscus’ at BusinessLive (subscriber access only) Government warns of ‘stricter headcount management’ amid public service wage increase risk Engineering News reports that as negotiations over the increase in public sector wages in the 2022/23 financial year continue, Finance Minister Enoch Godongwana stated in his national budget speech on Wednesday that government remained resolute on narrowing the public sector wage bill in the medium term. He noted that a public service wage agreement that exceeded the rate of growth accounted for in the budget remained a key risk to the fiscal outlook for the new year and would require steps to contain overall compensation spending through “stricter headcount management”. The compensation of public sector employees as a percentage of consolidated government spending has been in decline from 35.7% in 2013/14 to 32.6% in 2021/22. However, it is unclear whether government will have achieved the targeted 31.8% rate in 2022/23. Government in November 2022 tabled a final offer of an effective 7.5% increase to unions in what have been deadlocked public service wage talks. This increase would still cost the fiscus R34-billion in the 2022/23 financial year. Unions are demanding a 10% baseline increase and protested for one day in mid-November against the initial offer of a 3% increase. Godongwana said future wage negotiations would be aimed at striking a balance between remuneration increases and the need for additional staff in services such as education, health and police. He indicated that the Department of Public Services and Administration was working with National Treasury and other national departments to conduct a review across government towards a position of a single remuneration framework that was fair, equitable and sustainable. He said that Treasury would work with the Presidency on concrete proposals to achieve more savings by rationalising or closing public entities. Recommendations to that effect should form part of the next Budget. Read the full original of the report in the above regard at Engineering News. Read too, SA’s wage bill breaches R700bn, as unions up their ante in public pay talks, at Moneyweb. En ook, Staat wil plan maak met salarisrekening, by Maroela Media Covid-19 social relief of distress grant extended until March 2024 Moneyweb reports that the government will continue paying out Covid-19 social relief of distress (SRD) grants until 31 March 2024, which will continue to put pressure on the country’s much-strained public finances. It is already spending over 50% of the national budget on social welfare costs. In his budget speech for the 2023/2024 financial year on Wednesday, Finance Minister Enoch Godongwana allotted as much as R36.1 billion to continue funding the R350 grant, which was launched in 2020 to support poor households in the wake of the Covid-19 pandemic. The government’s spending programme includes additional spending of R227 billion over the next three years, which will mainly be put towards the extension of the SRD grant. Godongwana said the grant was the single biggest allocation in the government’s additional spending plans in the new financial year and that replacing the current Covid-19 grant without an affordable alternative posed a threat to SA’s fiscus. In his report to parliament, Godongwana said National Treasury was working with partner departments in reviewing options to provide appropriate social protection measures for SA’s working-age population. This could include replacing or complementing the current SRD grant. “Any permanent increase in expenditure, such as a new social grant, will need to be matched by permanent revenue increases or spending reductions elsewhere,” he indicated. In a pre-budget press briefing, Godongwana hinted that taxes could be raised to either improve the grant or convert it into a basic income grant Read the full original of the report in the above regard by Ntando Thukwana at Moneyweb Other internet posting(s) in this news category
Treasury takes the wheel at Eskom, with debt relief package dependent on privatising generation and investing in transmission BL Premium reports that some of Eskom’s coal-fired power stations could be concessioned out to private operators as part of a raft of conditions that finance minister Enoch Godongwana has attached to a R254bn debt relief package. The package will relieve Eskom of almost two-thirds of its debt burden over the next three years and prevent it doing any more borrowing over that period, or any investments in new generation projects. Godongwana announced the details of the long-awaited Eskom package on Wednesday as he tabled a national budget that showed the government was well on the way to delivering on its promise to put public finances on a more sustainable path. The minister has ordered a consortium of international experts to review all Eskom’s coal-fired power stations and advise on improving their operations by mid-2023. Those power stations that the consortium determines can be restored to original equipment manufacturers’ specifications could be considered for concessioning once the process has been completed. The move could over time see Eskom exit power generation altogether. Godongwana conceded that concessioning still needed to gain consensus over the whole of government, and did not necessarily mean selling power stations. The debt relief package is expected to strengthen Eskom’s balance sheet so it can invest in strengthening transmission and distribution to support more private power generation coming on to the grid, as well as to improve its own performance. Eskom cannot invest in any new greenfields generation projects during the three years of the debt relief package. A further condition is that Eskom cannot give pay increases during that time that would be negative for its financial position. Read the full original of the report in the above regard by Hilary Joffe & Linda Ensor at BusinessLive (subscriber access only). Lees ook, Begroting 2023: Reuse-reddingsboei vir Eskom, by Maroela Media André de Ruyter to leave Eskom with immediate effect, acting CEO to be announced ‘shortly’ BL Premium reports that it was announced late on Wednesday that André De Ruyter will leave Eskom with immediate effect. In a special board meeting, the Eskom board decided De Ruyter would not serve out his notice period. The move leaves the ailing power utility leaderless, after the board only kicked off the process to appoint his replacement two weeks ago, despite De Ruyter submitting his resignation in December. This comes as load-shedding escalated to stage six over the weekend — with the utility now shedding 7000MW from the grid, the most ever. His sudden departure follows an explosive interview with eNCA's Annika Larsen, in which he directly fingered an ANC MP in the corruption at Eskom. De Ruyter told Larsen there was evidence to indicate that some in the ANC saw Eskom as a “feeding trough”. His revelation prompted a stinging rebuke from public enterprise minister Pravin Gordhan, who warned in parliament on Wednesday that De Ruyter should not “meddle” in politics. Eskom in a statement said it was “mutually agreed” that De Ruyter would leave on 28 February. He resigned late last year and a departure date of 31 March was announced. An acting CEO will be announced “shortly”. The Democratic Alliance (DA) has announced that it would launch a court application in terms of the Promotion of Access to Information Act to obtain the identity of the ANC MP mentioned by De Ruyter. Read the full original of the report in the above regard by Natasha Marrian at BusinessLive (subscriber access only). Read too, Eskom CEO André de Ruyter leaves with immediate effect, at Moneyweb. En ook, Eskom-raad skop De Ruyter dadelik uit, by Maroela Media De Ruyter speaks out on graft at Eskom, says politicians using power utility as ‘feeding trough for the ANC’ IOL reports that according to former Eskom CEO André de Ruyter, there is rampant corruption at the ailing power utility engineered by top politicians from the governing party. De Ruyter revealed this on Tuesday during an interview with eTV’s journalist Annika Larsen. He made shocking revelations, saying undisclosed members of the governing party and government at the highest levels were aware of the corruption that was happening at Eskom and also that the utility served as the ANC’s “feeding trough”. De Ruyter said he was approached by a minister about a high-level politician who was involved in sinister and potentially criminal activities at the utility. “I expressed my concern to a senior government minister about attempts, in my view, to water down governance around the $8.5 billion (R154.6bn), that largely through Eskom’s intervention we received at COP26. And the response was essentially, ‘you know, you have to be pragmatic in order to pursue the greater good, you have to enable some people to to eat a little bit’.” When asked about the minister’s response regarding the criminal activities at Eskom, De Ruyter said: “The minister in question looked at a senior official and said, ‘I guess it was inevitable that it would come out anyway.’ This suggests that it was not news…” Asked whether the said minister was still in the Cabinet, De Ruyter refused to reveal his identity. In a TimesLive report, public enterprises minister Pravin Gordhan slammed de Ruyter for getting involved in politics instead of focusing on ending load-shedding. Read the full original of the report in the above regard by Brenda Masilela at IOL
Workers at Sibanye-Stillwater gold mine evacuated from underground after theft, vandalism collapse power lines Fin24 reports that employees at Sibanye-Stillwater's Cooke operations were successfully evacuated from underground after power lines collapsed as a result of theft and vandalism. In a statement on Wednesday, Eskom said its team of technicians restored electricity supply to Sibanye Gold operations in Randfontein, when miners were unable to resurface due to a supply interruption caused by power lines that fell during a storm. "The miners, who were trapped in the mine after the collapse of power lines, were safely evacuated when supply was restored on Monday, 20 February 2023," the utility stated. A spokesperson for Sibanye said the employees in question formed part of a care and maintenance crew, as the Cooke underground operations had ceased operating in 2017. The mining company also said it was its own emergency backup power which kicked in, allowing workers to resurface. The 132 kV lines linked to the Cooke operations fell because the integrity of the pylons along those lines was compromised, having been weakened by the theft of the tower members and the unstable ground caused by digging around the foundation. The tower members refer to the steel parts which form part of a transmission tower's structure. Read the full original of the report in the above regard by Lisa Steyn at Fin24. Read too, Eskom blames theft and vandalism for collapse of Sibanye mine power lines, at BusinessLive (subscriber access only). En ook, Mynwerkers ondergrond vasgekeer weens kabeldiewe, by Maroela Media Hawks nab 16 zama zamas in Stilfontein, near Klerksdorp in North West The Citizen reports that sixteen illegal miners (zama zamas) were arrested in the North West on Wednesday, during a multi-disciplinary operation by the Hawks’ Serious Organised Crime Investigation, the Explosives Unit, the Department of Mineral Resources and Energy, and other law enforcement officials. Hawks spokesperson Captain Tlangelani Rikhotso said officers received information about alleged illegal mining activities at Quest mine, which is situated just off Buffeldoorn road. “Resultantly, 16 alleged illegal miners were flushed out from underground leading to their subsequent arrest. The elaborate illegal mining activities were allegedly operated through a heavy-duty industrial generator, whilst supplemented by other smaller generators which were strategically located at multiple processing stations for gold bearing material,” Rikhotso indicated. During the operation the following items were seized from the suspects, namely two firearms, explosive cartridges, detonating cords, capped fuses, and four generators, as well as illegal mining paraphernalia consisting of 23 buckets of gold bearing material, electric mills, heavy duty electrical equipment, water pumps and diesel. In addition, large amounts of food were seized. The 16 suspects will make their first appearance at the Stilfontein Magistrate’s Court on Thursday. Read the full original of the report in the above regard by y Faizel Patel at The Citizen. Read too, Hawks flush out illegal miners working underground near Klerksdorp, at SowetanLive Other general posting(s) relating to mining
UCT’s vice-chancellor Mamokgethi Phakeng to depart after agreeing to ‘exit settlement’ deal TimesLive reports that University of Cape Town (UCT) vice-chancellor Mamokgethi Phakeng is set to leave the tertiary education institution, which is in the midst of a governance crisis, after reaching an exit settlement with the council. A settlement paving the way for Phakeng’s departure‚ reportedly involving a multimillion-rand “golden handshake”‚ was reached during a late-night meeting of the university council on Tuesday. The settlement involves a non-disclosure agreement. UCT is expected to issue a statement on developments soon. News24 reported on Wednesday that the settlement involved a R12m “golden handshake”. Phakeng‚ as vice-chancellor‚ was accountable to the council for leadership of the university‚ including its financial health‚ academic standing‚ transformation and social justice interventions. UCT started the academic year with student protests‚ a court interdict to halt the disruptive action‚ the executive being accused of endangering staff‚ a denial that Phakeng had been suspended and an independent investigation by a panel into the governance crisis and staff exodus. Read the full original of the report in the above regard by Philani Nombembe at BusinessLive
Anglo American ICT learnership programme produces first cohort of 35 graduates Mining Weekly reports that mining company Anglo American’s information and communications technology (ICT) learnership programme in SA has produced 35 graduates with a set of new digital skills. All 35 young graduates have achieved a National Qualification Framework (NQF) 4 qualification and are part of the first cohort of the programme. The ICT learnership programme includes subjects such as e-commerce, graphic designing, user experience (UX)/ user interface (UI) and cloud computing to help school leavers continue to build ICT skills post-matric. The learnership aims to give candidates certified skills and experience through on-the-job training to secure jobs in the ICT sector and close the country’s large digital skills gap. The 12-month sector education and training authorities-accredited learnership is managed by local development specialist Summit. Each student receives a monthly stipend, a device, and data, and is allocated an employee mentor by Anglo American. At least 40% of their time is spent doing practical training. Of this first group of graduates, 11 have been employed full-time by nonprofit organisation Edunova, ten will be pursuing a NQF 5 coding learnership and 14 will be enrolling in various tertiary education undergraduate programmes. Based on its success, the programme will increase its intake to 120 learners this year coming from communities close to Anglo’s operations in Limpopo, the North West and the Northern Cape. Read the full original of the report in the above regard at Mining Weekly
Frustrated Cape Town train commuters left stranded again on Wednesday News24 reports that Cape Town train commuters were left in limbo on Wednesday after train services in the Western Cape were suspended due to a faulty power supply. This left thousands stranded. Scores of commuters flooded the local minibus ranks waiting for transport to get them to their respective places of work and school. Metrorail said in a statement that its regional service had been "badly impacted [on Wednesday] morning due to a faulty Eskom power supply". It went on to indicate: "Due to this fault, services on all the lines have been suspended until further notice. The technical teams, both from Prasa and Eskom, have been on the ground since the early hours of [Wednesday] this morning. They have diagnosed the fault and are proceeding with the repairs." A “shocked" retail worker Shantell Dorian complained: “Seriously, there was no form of communication the night before, so I had no idea the trains weren't even operational. Had I known, I would've made alternative arrangements. Now a person must give out more money for travelling and it’s not even payday yet." Read the full original of the report in the above regard by Nicole McCain and Lisalee Solomons at News24 Other internet posting(s) in this news category
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