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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In wake of stubbornly high consumer inflation, SARB hikes repo rate sharply to 7.75% Moneyweb reports that a repo rate hike of 50 basis points (bps) was announced by South African Reserve Bank (SARB) Governor Lesetja Kganyago on Thursday. In a move that takes the repo rate to 7.75%, the central bank’s Monetary Policy Committee (MPC) surprised the market with a sharper increase than most economists and commentators were expecting. The hike comes in the wake of stubbornly high consumer inflation, which came in higher in the latest StatsSA’s reading for February at 7%. “The revised repurchase [repo] rate is now less accommodative and is more consistent with the current view of risks to inflation. The aim of policy is to anchor inflation expectations more firmly around the mid-point of the target band and to increase confidence of attaining the inflation target sustainably over time,” the governor noted. Kganyago said headline inflation breached the upper end of the target range in the second quarter of 2022, however it is forecast to remain above the target until the third quarter of this year. Kganyago again highlighted the major impact of increased load shedding on the economy, saying that the SARB now expects GDP growth for 2023 to come in at 0.2%. This is still more optimistic than forecasts from some major banks and economists, with their warnings that SA has slipped into a technical recession. “As a result of extensive load shedding and logistical constraints, the supply performance of the economy remains severely impaired,” Kganyago said. Read the full original of the report in the above regard by Suren Naidoo at Moneyweb. Read too, Reserve Bank springs hawkish repo rate surprise, at BusinessLive (subscriber access only). And also, ‘This is just not good for us’, say experts in reaction to repo rate hike, at The Citizen Poorest workers face choice of feeding their families or paying for power and transport TimesLive reports that South Africans are paying nearly R5,000 for a household food basket — up 11.6% from a year ago — according to the latest household affordability index compiled by the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD). The index tracks food prices in 44 supermarkets and 30 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg and Springbok. It shows the average cost of the household food basket is R4,966.20 — up by R516.12 from a year ago. The report found electricity and transport take up 53% of a minimum-wage worker’s pay of R4,473.92. “Food is bought after money for transport and electricity have been paid for or set aside (leaving only R2,102.42 for food and everything else) and so in March 2023, PMBEJD calculates that workers’ families will underspend on food by a minimum of 38.7%. In this scenario, there is no possibility of a worker being able to afford enough nutritious food for their family,” PMBEJD’s Mervyn Abrahams said. he added: “In June-July 2023, when the new electricity tariffs of 18.65% come into effect, and thereafter in August when taxi fares are raised, workers will have to allocate a lot more money to electricity and transport, leaving less money for food and other essential expenses. When this happens, families will face dramatic food shortfalls and hardship.” Read the full original of the report in the above regard by Suthentira Govender at BusinessLive Competition Commission under fire for statement about ‘opportunistic’ maize meal price hikes BL Premium reports that the Competition Commission has sparked an outcry with its statement on Tuesday that maize meal price hikes in 2021 and 2022 were “opportunistic”. The commission, which acts as a competition prosecuting authority, investigates collusion and monitors food prices. The statement suggested that retailers were taking advantage of soaring global food prices and inflating profit margins. Prof Johan Kirsten of the Bureau for Economic Research criticised a lack of analysis in the statement, saying the commission’s research should be more “thoughtful”. He added that the commission’s conclusion that price hikes were not justified was irresponsible. Other economists warned on social media of inflammatory statements. “The Competition Commission is wrong [in their statement]. There are clear factors driving the prices. Their work on this issue is misguided,” said agricultural economist Wandile Sihlobo. The commission was more cautious in its Essential Food Pricing Monitoring report, saying some food price hikes may be unjustified, but it did not go as far as saying there is evidence of profiteering. In the criticism of the commission’s comments, three main themes emerged, namely, that the commission did not have a legal basis to prescribe or conclude that food prices were unjust as the Competition Act only prevented “excessive pricing” by companies proved to have monopolies; that the factors that led to food prices soaring globally were well known; and that retailers and producers faced unprecedented load-shedding costs. Read the full original of the report in the above regard by Katharine Child at BusinessLive (subscriber access only) Ramaphosa tells NCOP that government continues to weigh options to replace R350 social relief of distress grant TimesLive reports that President Cyril Ramaphosa told the National Council of Provinces (NCOP) sitting on Thursday that while supporting the poor was a priority, the government could not be “reckless” in solving the problem. He had been asked whether the government was considering making the R350 social relief of distress (SRD) grant permanent or whether it had an alternative long-term plan that would address poverty. Ramaphosa replied: “The grant will be maintained until March 2024, while the economy continues to recover from the impact of the pandemic. Various options are being explored, taking into account affordability, financing options and efficacy in addressing poverty. We are looking at how we move beyond the SRD grant. There have been calls for the basic income grant [BIG] to be introduced which will support a number of people, and that is being considered.” He went on to state: “Our people are living in poverty, are unemployed and that is a primary consideration, but at the same time so as to not be reckless, we have to look at everything that we do within affordable means.” The president also said it was important to develop a mechanism to ensure that beneficiaries ended up in permanent employment. Read the full original of the report in the above regard by Amanda Khoza at SowetanLive Other internet posting(s) in this news category
'Don’t get bogged down with headcounts', says Ramaphosa as he defends bloated Cabinet News24 reports that President Cyril Ramaphosa has cautioned lawmakers not to get bogged down with the headcount of his Cabinet as this might water down attempts to have a capable state. On Thursday, Ramaphosa told the National Council of Provinces the needs of the country should guide the size and configuration of the national executive. "We need an efficient and lean government, but if we become fixated on headcounts, we may lose sight of having a capable state in the first place. The capability of the state is what informs the approach we have taken," he stated. Asked about the growing number of ministers in the Presidency, Ramaphosa said: "It's not a process to centralise power. I trust all my ministers, including the deputy president, and that is why he was appointed.” In April 2019, the Department of Public Service and Administration submitted to Ramaphosa a substantive report on the macro-reorganisation of the state. Since then, Ramaphosa has disregarded advice from his government to trim down his bloated Cabinet and keep it to no more than 22 ministers. This after he promised the public in his first State of the Nation Address in 2018 he would cut the size of the executive and later even hinted at doing away with deputy ministers. Since then, Ramaphosa has increased his executive, adding two new ministries last month. With the recent changes, the Cabinet now consists of 30 ministers. But, Ramaphosa is adamant that the steps he recently took will improve services. Read the full original of the report in the above regard by Jason Felix at News24. Lees ook, President verdedig grootte van sy cabinet, by Maroela Media
Sex workers and supporters rally in Cape Town to demand full decriminalisation GroundUp reports that over 100 sex workers and their supporters marched to the offices of the Department of Justice and Constitutional Development (DOJ) in Cape Town on Thursday to advocate for the full decriminalisation of sex work. Members of the Sex Workers Education & Advocacy Taskforce (SWEAT), Asijiki Coalition, Sisonke national sex workers movement, and others, called on the department to update the public on progress with the decriminalisation bill since the public comments process had closed on 31 January. They wrote in a letter handed over to the department: “We want to remind the department that we are monitoring the process in order to ensure that momentum is not lost.” The workers also expressed their gratitude to the DOJ “for the manner in which they have delivered on their promise thus far with regards to the law reform process”. Sisonke’s Lloyd Rugara said that decriminalisation would allow sex work to be recognised as actual work, adding that it would help sex workers address the gender-based violence that they faced from pimps and the police. Ashika Singh, the DOJ’s provincial director of legal administration in the Western Cape, addressed the crowd and thanked the organisations for “monitoring the work that is being done by our government”. Singh said that the letter would be handed to Deputy Minister of Justice John Jeffery and the DOJ’s director-general. Read the full original of the report in the above regard by Liezl Human at GroundUp
Temporary manager appointed to head Mangaung prison after furore over Thabo Bester escape TimesLive reports that national commissioner for correctional services Makgothi Samuel Thobakgale has appointed a temporary manager at the Mangaung Correctional Centre after the “embarrassing” Thabo Bester debacle, which he said had “undermined the authority of the state”. Bester escaped from the centre on 3 May 2022, the Department of Correctional Services (DCS) confirmed, after it was initially believed he had committed suicide by setting himself alight in his cell. Security company G4S insisted that Bester died in the fire, but indicated that it had dismissed three employees in relation to their conduct on the day. Thobakgale on Thursday detailed the outcomes of an investigation carried out by the DCS. It found that “the director of the Mangaung correctional services centre has lost effective control of the centre”. He went on to advise: “Among other factors, the Correctional Services Act does provide for a mechanism to restore safety and security by taking control of the facility by means of appointing a temporary manager. This will mean that this temporary manager will perform the functions of the director. In this instance, I have appointed Mr Patrick Ali Mashabathakga as the temporary manager of the Mangaung correctional facility.” Thobakgale advised that the director of contract management based at the department’s head office, the correctional services controller at Mangaung and deputy controller had been suspended and the departmental investigation unit had started looking into the conduct of the three officials and any other officials. Thobakgale confirmed Bester was assisted in his escape despite G4S’s previous assertions. Thobakgale also confirmed that the department had deployed a “track-and-trace team to look for Bester” and appealed to those with any information to come forward. Read the full original of the report in the above regard by Khanyisile Ngcobo at BusinessLive. Read too, government mulls immediate termination of G4S contract at compromised prison, at News24 (subscriber access only)
'Civil servants deserve answers' about settlement in PIC vs AYO case News24 reports that according to Iraj Abedian, chief economist of Pan-African Investment and Research Services, South Africans urgently need answers on why the Public Investment Corporation's (PIC’s) R4.3-billion court case against AYO was allegedly settled for just R600 million. On 24 March, the PIC, which manages the pension investments of SA's civil servants, settled its long-running legal claim against IT group AYO behind closed doors. Neither AYO nor the PIC have revealed the terms of the settlement. The Public Servants Association indicated on Thursday that it had briefed its lawyers to file a freedom-of-information request to access the confidential settlement. Leaks to Daily Maverick suggest that the two sides settled for an initial payment of R600 million, with AYO buying back 5% of the PIC's 29% shareholding. According to the report, the Government Employees Pension Fund (GEPF), which was also a plaintiff in the case, would have the option of selling another 5% of shares back to the IT group in three years at R20 a share. The GEPF would also get two seats on AYO's board. The GEPF referred all queries to the PIC. Abedian pointed out that PIC funds were part of the country's national savings and commented: "We cannot let it go so easily. Iqbal Survé and his organisation owe it to the nation, and to the public-sector employees in particular, to explain themselves, irrespective of the legal settlement." AYO is an indirect subsidiary of Survé's Sekunjalo Investment Holdings. Sekunjalo has described the deal as "excellent news and in the best interests of all stakeholders", especially investors and pensioners. Read the full original of the report in the above regard by Jan Cronje at News24
De Ruyter agrees to answer questions in parliament on Eskom graft TimesLive reports that former Eskom CEO André de Ruyter has agreed to appear before parliament's public accounts body to elaborate on allegations of criminal conduct and corruption at the state-owned power utility. Mkhuleko Hlengwa, chairperson of the Standing Committee on Public Accounts, said on Thursday that after inviting De Ruyter on 17 March, the committee had received a response from his lawyers acceding to the request. ANC MP Bheki Hadebe had requested the committee to urgently ask De Ruyter to provide more information regarding the allegations he made in a television interview that aired on 23 February. Scopa needed to engage with De Ruyter in line with its constitutional mandate of holding Eskom accountable on matters related to its financial administration, including the procurement of goods and services, Hlengwa pointed out. “In his response, Mr De Ruyter indicated that he will present a written submission to the committee on the issues he has raised, and is agreeable to appearing before it at a date to be determined by the committee,” Hlengwa indicated. Read the full original of the report in the above regard by Andisiwe Makinana at BusinessLive. Read too, Even the NUM wants MPs to probe Eskom graft, at Financial Mail (subscriber access only) Crooked accountants dent profession’s reputation, laments Institute of Chartered Accountants BusinessLive reports that accountants convicted of stealing money, in some cases millions, from employers damaged the profession’s standing, the SA Institute of Chartered Accountants (Saica) has lamented. This as another accountant was jailed for theft. The Durban regional court sentenced accountant Zakariya Vahed this week to 15 years’ imprisonment for stealing more than R7m from 2009 to 2019. Saica CEO Freeman Nomvalo said the actions of a “small number” of their members negatively affected the standing of the profession. “In the circumstances, Saica conducts investigations and, where appropriate, disciplinary processes to ensure that the affected Saica members are held accountable for their actions on a fair and equitable basis,” Nomvalo advised. He reported that from 2016 to 2023, Saica suspended 18 members and cancelled the membership of 12 for breaching Saica’s bylaws and disciplinary code. Saica recently terminated the membership of chartered accountant Mark Jonathan Vorster, who was sentenced to six years’ jail for theft, fraud and money laundering related to the temporary employee relief scheme (Ters). Vorster submitted fraudulent UIF claims on behalf of five companies that were using his services and received almost R900,000 from the fraudulent transactions. Several accountants and senior financial officers were convicted of stealing money from private companies and the government in recent years. Read the full original of the report in the above regard by Sinesipho Schrieber at BusinessLive Mpumalanga MPL, former municipality employees arrested for fraud, corruption News24 reports that a Mpumalanga member of the provincial legislature (MPL) and five former employees of the Pixley ka Seme (Volksrus) have arrested on charges of fraud and corruption, amounting to more than R34 million. Former acting municipal manager and MPL Phakamile Thwala was arrested on Thursday, alongside former municipal managers Linda Bennet Tshabala, Joseph Solly Madubula Mabuza and others. The six stand accused of contravention of the Municipal Finance Management Act, corruption and fraud. Hawks spokesperson, Captain Dineo Sekgotodi, said the group appeared in the Volksrust Magistrate's Court and were each granted R35 000 bail, except for the former project manager, Luthando Mpangeva, who has a pending fraud and corruption case. The court granted Mpangeva R40,000 bail because of the pending charges. He will appear in court on 1 July for his pending case. The matter was postponed to 6 July. Read the full original of the report in the above regard compiled by Cebelihle Bhengu at News24. Lees ook, Munisipale beamptes verdink van R34.7 miljoen se bedrog, by Maroela Media Other internet posting(s) in this news category
Western Cape detectives nab three suspects linked with Go George bomb attack on bus IOL reports that Western Cape police on Wednesday arrested three suspects in connection with the Go George bomb attack earlier in March. Fourteen people were treated for injuries, including burn wounds and shock, after the bus they were travelling in was petrol bombed in Pacaltsdorp, George. Police spokesperson Sergeant Christopher Spies, said an extensive and intricate investigation by Western Cape serious and violent crime detectives led to the arrest of the three suspects. The passenger bus was travelling towards the central business district of George when it was struck by two petrol bombs. Spies reported that one of the bombs shattered the window and exploded inside the vehicle injuring passengers on board. He went on to indicate: “The trio remains in police custody. They are expected to make their first court appearance on Friday, at the George Magistrate’s Court on charges of attempted murder, arson, malicious damage to property and malicious damage to municipal infrastructure.” The investigation into this incident continues. Read the full original of the report in the above regard by Sibuliso Duba at IOL
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