In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 31 March 2023.
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Government and a majority of public sector unions sign wage deal BL Premium reports that the government and a majority of unions in the Public Service Co-ordinating Bargaining Council (PSCBC) on Friday signed a two-year, multi-term wage deal for a 7.5% increase. The agreement came into effect on 1 April. Department of Public Service & Administration spokesperson Moses Mushi said the 7.5% increase was effectively the R1,000 after-tax cash gratuity at the value of 4.2% on the baseline, and a nominal increase of 3.3% across the board. The after-tax cash gratuity was set to expire on 31 March. “The non-pensionable cash allowance will be translated into the pensionable increase on the baseline with effect from April 1 2023, without disadvantaging any employee in terms of the cash net effect into the pocket,” Mushi said. The pay deal also includes a pay progression of 1.5% for all qualifying employees. In the final year, employees will receive an increase linked to projected consumer price inflation (CPI), meaning if CPI falls below 4.5% in 2024/25, workers will receive increases of 4.5%. If it surges above 6.5%, the employer will implement a 6.5% increase. The agreement was signed by leaders of Hospersa, Naptosa, the PSA and Sadtu. The four unions combined represent more than 53% of the estimated 1.3-million public servants in the country. Nehawu, Denosa and Sapu opted not to sign the agreement. Those unions are still in a dispute with the employer regarding the 2022/23 financial year, in respect of which the employer unilaterally implemented a 3% pay rise. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only). Read too, SA’s unions, government agree 7.5% wage hike, at Moneyweb Brace for 'significant tradeoffs', Treasury warns as final public sector wage deal is signed Fin24 reports that the National Treasury has pledged fiscal discipline and a commitment to reducing the fiscal deficit in the light of the final settlement on wages for public servants on Friday. A narrow majority of trade unions in the Public Sector Co-ordinating Bargaining Chamber (PSCBC) signed the wage offer of 7.5% for 2023/24 and a CPI-linked wage increase for 2024/25, putting increases in place for the start of the new financial year on 1 April. The April increase includes an average 4.2% increase, from incorporating the R1,000 after-tax cash gratuity of the last two years into the pensionable salary, plus a 3.3% cost-of-living adjustment. Incorporating the R1,000 gratuity into the baseline will mean increases well above 7.5% for lower-paid workers. The agreement will cost the government R37.4 billion in 2023/24, with carry-through effects applicable for subsequent financial years. In a statement on Friday, the Treasury pledged its commitment to fiscal consolidation, emphasising that where wage increases were "unaffordable", significant trade-offs in the short and medium-term would need to be made. In a statement it indicated: “Government remains committed to reducing the fiscal deficit to more sustainable levels (i.e. stabilising debt). Therefore, the government will initiate processes to ensure that the latest wage agreement is implemented through significant tradeoffs in the short and medium-term. Moreover, the National Treasury reiterates the position that government borrowings will not be increased for the purposes of consumption expenditure, including paying for wages.” The tradeoffs will include restrictions on recruitment of non-critical posts, restricting previously-planned recruitment in certain areas and reducing out-of-line remuneration in public entities. The last point is particularly sore among unions, which are angry about the excessive salaries paid by state-owned entities and agencies. Read the full original of the report in the above regard by Carol Paton at Fin24 Public sector wage deal may not be as big a risk to budget framework as feared Columnist Hilary Joffe writes that over the past three years the government has firmly bent the curve on public sector pay, halting a decade-long trend of above-inflation wage increases. The new two-year wage settlement between the government and a majority of public sector trade unions seems set to continue that trend. But it would add R35bn-R40bn of unbudgeted government spending over the next three years. The settlement provides for a 7.5% increase in the present fiscal year, followed by an increase in line with consumer price inflation (as projected by the Treasury) for the next year, 2024/25. But this year’s increase is really 3.3% rather than 7.5%. That’s because it includes the R1,000 a month after tax cash gratuity public sector workers were granted in 2021, and again in 2022, which was due to fall away once a new wage settlement was reached. So the increase for the first year is not that far above the 1.6% the Treasury had pencilled in. It’s also below the projected inflation rate of over 5.3%. The big question is whether the Treasury allocates new money to fund the extra spending, or requires departments to find the money – by shedding staff or reallocating money within existing budgets, or cutting whole programmes. Another big issue is who gets the money within the public service – and the dynamic there, essentially, is that the increases have gone largely to junior and middle grades, at the expense of senior management and supervisory skills. Joffe opines that this year’s settlement will build on the shift to moderation of the past three years and may not prove as much of a risk to the budget framework as many in the market have feared. But it will do nothing for the quality of the public service unless it addresses the broader trade-offs. Read the full original of Hilary Joffe’s column at BusinessLive (subscriber access only) Other internet posting(s) in this news category
SA pushes to delay coal plant closures Bloomberg reports that SA has reportedly told rich countries backing its $8.5 billion energy transition deal that it wants to delay the closure of some units at its coal-fired power plants. Years of mismanagement and corruption have decimated SA’s coal-dependent power sector but connecting the renewable energy units envisaged under its Just Energy Transition Partnership (JETP) will take longer than expected. With blackouts often exceeding 10 hours a day, the government is under pressure to hold on to whatever generation capacity it has. The government has yet to make a decision and no formal request has been submitted to its JETP partners, but they are likely to take a pragmatic attitude given the power crisis and political constraints, sources said. Unveiled at the COP26 climate conference in Glasgow, the JETP is meant to help SA end its dependence on coal and meet its target of reaching net zero carbon emissions by 2050. Under the agreement, which was formally signed last year, a mix of loans, grants and debt guarantees from Germany, France, the US, UK and the European Union will help SA build out renewable alternatives. Eskom closed the dilapidated Komati plant last year and is due to close another 5 of its 14 remaining coal-fired plants by 2030. Vikesh Rajpaul, who runs the Just Energy Transition office at Eskom, said life extensions were not being considered for the aging plants but some units might have to be kept open longer than planned to address the electricity crisis. “There is an understanding and appreciation for the energy shortage that we have,” he said of talks with JETP partners. Read the full original of the report in the above regard by Paul Burkhardt & Antony Sguazzin at Moneyweb Eighty-seven illegal miners arrested at Orkney mine in 2021 get a combined 696 years imprisonment The Star reports that eighty-seven illegal miners, who were arrested at Shaft 2 in Orkney on 20 October 2021, have been sentenced to a combined 696 years of imprisonment. The illegal miners were arrested during an intelligence-driven operation led by the Hawks’ Serious Organised Crime Investigation, assisted by the Special Task Force and the District Illicit Mining Task Team. NPA regional spokesperson for the North West Henry Mamothame advised: “The operation was the culmination of months of surveillance after the illegal miners took control of a dormant shaft. During the operation, a shoot-out ensued between the police and the illegal miners, resulting in six illegal miners being fatally wounded and eight others being injured. Illegal mining paraphernalia, gold-bearing material, two mini buses, 11 firearms (three shotguns, four pistols, three rifles and one revolver), about 4000 cartridges of ammunition and bags of food were seized.” All of the accused, who had been in custody since their arrest, pleaded guilty on 28 March to charges of robbery with aggravating circumstances and were each sentenced to eight years direct imprisonment. Read the full original of the report in the above regard by Lehlohonolo Mashigo at The Star. Lees ook, 87 myners van Orkney sal saam 700 jaar sit, by Maroela Media Other labour / community posting(s) relating to mining
Within four years, YES initiative passes 100,000 jobs mark Engineering News reports that private sector-funded nonprofit the Youth Employment Service (YES) has deployed 100,000 young South Africans into the private sector within just four years. With most of these youths coming from disadvantaged backgrounds, they have the chance to not just change the course of their lives, but also that of the country, said YES CEO Ravi Naidoo. YES works with businesses to place or sponsor unemployed youth in 12-month quality work experiences that are fully funded by the private sector, giving them the critical experience and skills they need to secure future employment. In the process, these work experiences have seen R6-billion in salaries injected into local economies across SA, the nonprofit pointed out. “We haven’t just created 100,000 jobs. We’ve given young people the skills, work experience and social networks they need to contribute to the economy for the next 40 years and beyond. It is these future professionals, entrepreneurs and change-makers who will drive our economic prosperity in the years to come,” Naidoo highlighted. With 61% of YES youth coming from social grant-recipient households and 77% having dependants, their incomes benefit entire families and even communities. Research shows that 40% of YES alumni are currently employed, and 15% are involved in entrepreneurial activity. This is much higher than the national average. Read the full original of the report in the above regard at Engineering News
Tongaat Hulett gets more financial aid as deadline for rescue plan extended BL Premium reports that financial support for struggling sugar producer Tongaat Hulett has been extended until June, which will allow it to pay employees and the growers who provide it with cane to mill. The producer said on Friday that final binding equity offers to buy or support the business needed to be submitted by 26 May. The date for the publication of the business rescue plan, which was postponed to the end of March, has now been extended to May, so that the plan can contain more details. Much of the KwaZulu-Natal sugar farming industry relies on Tongaat Hulett’s survival. The company was put into business rescue, a process designed to stabilise and save a business from bankruptcy, as it cannot cope with its R6bn debt. The group first received short-term funding to keep afloat, while in business rescue, from the Industrial Development Corporation in December. Tongaat has not disclosed how much money has been received to date and how much more has been promised. The sugar producer remains suspended from the JSE as it has not released its 2022 financial statements as required by the bourse’s listing requirements. Several former company executives face charges of fraud for allegedly producing false and misleading statements. Read the full original of the report in the above regard by Katharine Child at BusinessLive (subscriber access only). Read too, a report at Fin24
Seasoned executive Martin Buys appointed Eskom acting CFO Engineering News reports that state-owned power utility Eskom has announced that group finance GM Martin Buys will serve as acting CFO with immediate effect and until further notice. It said Buys was a seasoned executive who started his career at Eskom in 1987. He has held various roles over the course of his almost 40-year career at Eskom, predominantly within the field of finance. This follows the appointment, in February, of Calib Cassiem as Eskom interim CEO, following the departure of Andre de Ruyter. Read the original of the short report in the above regard at Engineering News SANParks appoints its first ever female chief executive officer South African National Parks (SANParks) announced last week that had appointed Hapiloe Sello as its Chief Executive Officer (CEO), making her the first female CEO since the body’s establishment in 1926. SANParks is mandated with the management of the national parks system. Pam Yako, chairperson of the SANParks Board, said the Board was delighted to appoint a leader of Sello's calibre to the role as she had a deep-rooted knowledge of the interconnectedness of conservation, tourism and people. Sello joined SANParks in 2015 as its Managing Executive for Tourism Development and Marketing and, amongst other roles, acted as SANParks CEO from June to November 2022. As ME Tourism she spearheaded the implementation of the organisation's commercialisation strategy and implemented several tourism products, events and strategic partnerships which have helped bring in the necessary resources for the SANParks. Yako said the appointment was a significant step forward for transformation and women empowerment in the sector. Read SANParks’ media statement at SANParks News. Lees ook, Vrou eerste keer aan stuur van SANParke, by Maroela Media Other internet posting(s) in this news category
Victory for former IT executive after legal fight for commission from 2018 to be paid out Fin24 reports that a former executive at Adapt IT has won a four-year fight for commission she earned before resigning but which the software company refused to pay out. Last week's Cape Town Labour Court decision means Nicola Redelinghuys – now a partner at IBM in Perth, Australia – will receive R500,000 for deals she concluded in 2018. Redelinghuys was a new business development executive at Adapt IT when she tied up a R7.9 million deal with Vivo Energy and a R403,000 deal with Accenture. Her commission was 4.5% as long as the gross profit margin on deals she concluded was at least 40%, meaning she expected to receive R373,000 as revenue began to flow. Three weeks before she left, Redelinghuys wrote to head of operations Seraj Abrahams about options for commission payments, and was shocked when he replied: "It is not possible to be paid … post your last date of employ." She raised the issue with chief operations officer Craig Young, who said she would be paid only R54,511 commission on revenue so far from the Vivo deal. She sent a letter of demand 11 days after leaving the company. In the Labour Court, Abrahams testified that Redelinghuys had a continuing role in projects even after she had concluded a deal, something she denied. Judge Robert Lagrange said in his ruling that Redelinghuys's "alleged project delivery role" was never raised while she worked for Adapt IT, and was not mentioned by Abrahams or Young in correspondence shortly before her departure as a reason for withholding commission. Abrahams also testified that the gross profit achieved in both projects fell short of the 40% required to earn a commission, but Redelinghuys said his calculations included expenses that were not part of the original costings. Lagrange ruled that Adapt IT must pay Redelinghuys R373,000, plus annual interest of 10.5% calculated from 31 January 2020, and her legal costs, so bringing her payout to R500,000. Read the full original of the report in the above regard by Dave Chambers at Fin24
Fifteen-years in jail for Durban accountant who ‘shamelessly’ stole from his boss Sunday Tribune reports that a “cunning“ senior accountant, who had free rein on his employer’s and some clients bank accounts but breached the trust placed in him by committing multiple acts of fraud and theft, was sentenced to 15 years of imprisonment last week. Zakariya Cassim Vahed, 49, previously pleaded guilty before magistrate Sophie Reddy in the Durban Regional Court to 93 counts of theft and fraud while in the employ of Overport-based accounting firm, Desai Jadwat Incorporated (DJI). His acts of criminality occurred between August 2009 and 2019. He joined the company in January 1992, and while he had no formal accounting qualifications, he ascended in rank through the experience he gained during his years with DJI. Vahed plundered more than R7 million and used some of his ill-gotten gains on 37 overseas visits, which included six occasions when he travelled for religious purposes. Apart from embezzling funds from the company on 83 occasions, he misled DJI into believing their clients paid for the services rendered on seven occasions. Instead, he set up loan deals on behalf of DJI, from the said clients, for the respective amounts they owed, of which he took R180,000 for himself. Between December 2013 and January 2018, he fleeced more than R4.3m from a prominent Durban school’s bank account. “The manner in which these crimes were orchestrated manifests extreme cunning, deceitfulness and a shocking lack of integrity,” said Reddy. Read the full original of the report in the above regard by Mervyn Naidoo at Sunday Tribune City Power employee, contractors among six nabbed for theft, vandalism TimesLive reports that a City Power employee faces disciplinary action while two of its contractors were fired after they were allegedly caught committing crimes against the entity. The three were among six arrested on Thursday and Friday across the city for cable and equipment theft and vandalism. The first incident happened in Hillbrow on Thursday night. City Power spokesperson Isaac Mangena said: “City Power's security risk management team received an anonymous tip-off that five suspects were attempting to steal a transformer. The suspects were caught in the act and taken in by law enforcement agencies for processing at the Hillbrow police station. In this incident, one suspect was found to be a City Power contractor and one is a City Power employee. Two trucks and a bakkie bearing City Power logos have been taken in by the police.” Another City Power contractor was caught on video on Friday reportedly removing 20 metres of copper cable and replacing it with an ABC cable in Witpoortjie. He too was arrested. City Power CEO Tshifularo Mashava, said: “City Power’s business operations are continuously negatively affected by essential infrastructure crimes, with the entity losing about R4bn across the city from cable and equipment theft and vandalism, every year. These crimes further contribute to delayed service delivery to residents. Read the full original of the report in the above regard by Khanyisile Ngcobo at TimesLive. Lees ook, City Power-werkers vas wat kabels, transformator steel, by Maroela Media Other internet posting(s) in this news category
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