Today's Labour News

TOP STORY – LOADSHEDDING JOB CUTS

Power cuts spark a jobs bloodbath at small businesses in townships

BusinessLive reports that two-thirds of businesses operating in townships across SA have had to reduce employee headcounts as they grapple with the impact of power cuts on their operations. A recent survey by Nedbank, conducted in partnership with the Township Entrepreneurs Alliance, found that of the 200 small township businesses surveyed, 66% had shed jobs because of the financial effects of loadshedding and 5% of businesses had had to close their doors.   “Given that spaza shops contribute about 6% to SA’s GDP, employ 2.6-million people and represent an economy of about R600m, the results are troubling and require a response from both the private and public sectors,” said Nedbank’s Dayalan Govender. In the worst affected manufacturing and food and beverage sectors, up to 83% of business owners indicated they had to reduce staff to mitigate the effects of loadshedding on their businesses.   While most businesses in SA are hit hard by loadshedding, the impact is often worse for smaller businesses that cannot afford alternatives. Nedbank reported that due the high cost of securing alternative sources of energy such as solar power or diesel-powered generators, some small businesses were forced to close shop for a large part of the day, limiting their ability to generate revenue and profit. “The challenges are more pronounced for small businesses located in townships and rural communities where there is often a lack of information, limited access to alternative energy solutions, and affordability constraints,” the report noted. The survey showed that more than 60% had to halt their operations completely during loadshedding.

Read the full original of the report in the above regard by Denene Erasmus at BusinessLive. Read too, Loadshedding has led to job shedding for township businesses, report finds, at Engineering News

ARC WAGE NEGOTIATIONS

Solidarity declares wage dispute against Agricultural Research Council

Solidarity announced on Monday that it had declared a dispute against the Agricultural Research Council (ARC) over the final wage increase offer tabled by the organisation’s management. According to the trade union, it was “hugely irresponsible” to expect employees to absorb sharply rising costs of living and interest rates while other state institutions have announced above inflation rate increases. Riaan Visser, Deputy General Secretary for the Mining, Agricultural and Chemical Sector at Solidarity, stated: “It is absurd to expect of these employees, who have had to cope without any increase for several years already, to now accept an offer that, in the case of most job levels, does not even cover inflation. While inflation, and therefore living costs, are skyrocketing employees are getting poorer. The ARC has decided to stick with an offer on a sliding scale that excludes employees at the higher job levels, flatly refusing to come to the table with any proposals or to move its targets. No attempt is even made to reach consensus. Such actions can be regarded as nothing but malicious.”   Solidarity pointed out that ARC’s new CEO, Dr Litha Magingza, who has barely been in the position for a year, was already facing labour unrest should the management not pay urgent attention to the needs of their employees. Visser warned that Solidarity would not accept the ARC’s refusal to grant decent increases and would continue to fight against the exploitation of members.

Read Solidarity’s press statement in the above regard at Solidarity News

THABO BESTER PRISON ESCAPE

Thabo Bester's daring escape shows private jails prioritise profits over public safety, says Popcru

News24 reports that on the eve of MPs meeting with G4S, the Police and Prisons Civil Rights Union (Popcru) argued that "Facebook Rapist" Thabo Bester's daring escape from the company's correctional facility was "irrefutable evidence that privately run prisons do not work". The Portfolio Committee on Justice and Correctional Services is set to meet "to understand the circumstances" around the jail break.   The saga, which has captivated South Africans since GroundUp broke the story of Bester's escape in May last year, came to a head on Friday night when he and his partner and alleged accomplice Nandipha Magudumana were arrested in Tanzania. Magudumana's father and a G4S employee were also arrested and they appeared in the Bloemfontein Magistrate's Court on Tuesday in connection with Bester's escape. Popcru president Zizamele Cebekhulu-Makhaza said on Tuesday that Bester's escape from a supposedly maximum-security prison operated by private company G4S once again highlighted the alarming risks of using private prisons in SA.   "Government must sever ties with these private institutions, as they prioritise profits over public safety and rehabilitation. This incident serves as irrefutable evidence that privately run prisons do not work, and that it is time for the state to fulfil its own constitutional responsibility to see to prisoners' care, rehabilitation, and security rather than attempting to outsource its duties," Cebekhulu-Makhaza said.   There are currently two privately run prisons in SA, namely the British G4S's Mangaung Correctional Centre and the American GEO Group's Kutama Sunthumule Correctional Centre in Limpopo. According to Cebekhulu-Makhaza, these companies have 25-year contracts.

Read the full original of the report in the above regard by Jan Gerber at News24 (subscriber access only)

Evidence suggests burned man found in Thabo Bester's cell was killed for escape plot

News24 reports that evidence strongly suggests that the charred body found in the cell of convicted rapist and murderer Thabo Bester was that of a man who had been murdered specifically for Bester’s escape.   An autopsy report has found that the unknown man had died from a blunt force injury to the skull. There was no smoke inhalation, soot, or burning in the airway or lungs, proving that he was dead prior to being burned in cell 35 on 3 May 2022. The man died soon before being burned, said Phaladi Shuping, spokesperson for the National Prosecuting Authority. This was why murder was added to the charges faced by two men who appeared in the Bloemfontein Magistrates Court on Tuesday. Once Bester is joined to the case, it is anticipated that he and his partner, Dr Nandipha Magudumana, will also face murder charges. Bester and Magudumana were arrested along with a Mozambican national in Tanzania on Friday night. The two men accused of the unknown man's murder are Magudumana’s 65-year-old father Zolile Sekeleni and former prison warder Senohe Matsoara, 39, who worked for G4S. According to the charge sheet, the man, whose identity is unknown, was murdered “upon or about” 3 May 2022, the day of the fire in the cell. A source in the intelligence community explained that it would be unlikely that the deceased was taken from a morgue because it would involve several people. The case was postponed to 17 April for a formal bail application.

Read the full original of the report in the above regard by Alex Patrick & Jan Gerber at News24 (subscriber access only)

HPCSA to investigate Dr Nandipha Magudumana with the help of SAPS, home affairs and correctional services

News24 reports that the Health Professions Council of SA (HPCSA) is launching an investigation into Dr Nandipha Magudumana, who is the love interest of the convicted rapist and murderer Thabo Bester.   HPCSA spokesperson Christopher Tsatsawane said they had noted numerous media reports regarding various allegations that had been levelled against Magudumana. As a result, the council would investigate to see if she had behaved unprofessionally. Tsatsawane said that the HPCSA would work with the police and the departments of health, home affairs and correctional services "to ensure the investigation process is comprehensive". He indicated: "Doctors sign a code of conduct and code of practice. We will look at all her actions to determine if any professional conduct was breached in light of all allegations against her." The HPCSA had previously advised that Magudumana had been suspended for "failure to pay annual fees when they were due on 1 April 2021." On Tuesday, Tsatsawane said the HPCSA had temporarily suspended Magudumana's registrations and had offered her an opportunity to pay.   Meanwhile, celebrity doctor, Mmereka Ntshani, better known as Dr Pashy, is seeking legal advice on allegations that Magudumana assumed her identity while on the run with Bester.   The two fugitives were arrested in Tanzania on Friday.

Read the full original of the report in the above regard by Botho Molosankwe at News24. See too, Thabo Bester: HPCSA investigating allegations against Dr Nandipha Magudumana, at The Citizen

Other internet posting(s) in this news category

• Twee in hof oor Thabo Bester-sage, by Maroela Media

SKILLED EXODUS

SA’s great C-suite exodus sees CEOs and CFOs ‘dropping like flies’

BusinessLive reports that at least 41 CEOs and CFOs have resigned from their positions in companies listed on the JSE in the past 16 months. The highest turnover has been amongst CFOs, who have come under severe pressure in the past two years after high inflation and interest rates brought an abrupt end to “easy money”. Shareholders are demanding profitability, and higher borrowing costs make that profitability target even harder to achieve, adding stress to CFOs and CEOs.   More telling is that, in most cases, no successors are named. A common indication is that companies are embarking on a “process of identifying a suitable replacement to fill the vacancy”, which raises serious questions about companies’ succession plans or the lack of them. According to Craig Pheiffer of Sasfin Wealth, succession planning is critical in any business. “Generally a company’s board sets out the strategic direction and the executives operationalise it and drive the strategy on a day-to-day basis. When implementation of the strategy is interrupted by the departure of a key executive, it can have serious consequences for the organisation.   Getting a new executive up to speed on the strategy can take time and the business can lose momentum,” he pointed out. Makwe Masilela of Makwe Fund Managers, observes that when senior executives leave abruptly, with no apparent heir, it points to a strained relationship between the parties. “CEOs must deliver value to shareholders. The harsh reality is that profits are why people invest in companies,” he notes.   Yet, a few companies have led the way in terms of succession planning. Sasol said last month that it has a plan to find a successor for CEO Fleetwood Grobler, who is expected to retire at the end of next year.

Read the full original of the informative report in the above regard by Kabelo Khumalo & Andries Mahlangu at BusinessLive

Employees ‘rage-apply’ for new jobs to escape ‘toxic’ workplaces

The Citizen reports that a significant portion of SA’s working class is currently ‘rage-applying’ for positions where unhappy workers apply for any job at random in the hope of escaping their current toxic work places. Rage-applying is much more drastic than just quiet-quitting. According to Investopedia, quiet-quitting is when an employee opts to do the minimum requirements of the job and putting in no more time, effort, or enthusiasm than absolutely necessary.   Rage-applying is where the same employee is actively looking to escape an environment. A survey by Robert Walters SA indicates that 62% of professionals, particularly those working in the administrative sector, are rage-applying in search of new jobs as frustrations at work reach a peak. But Andrew Seaman of LinkedIn News points out that rage-applying may not be the best method to get a new job because a targeted job search leads people to roles that are right for them – not just any job.   “The name is new but the technique is probably as old as job hunting itself. In fact, I’ve referred to this technique many times before as the “spray-and-pray” method. You send out as many applications as possible and hope for the best,” he observed.   Some believe that the notion of rage-applying has been gaining momentum ever since the pandemic, when people started looking at their work lives differently.

Read the full original of the report in the above regard compiled by Devina Haripersad at The Citizen

ZIMBABWE SPECIAL PERMITS

Motsoaledi failed to apply his mind to ending Zimbabwe Special Permits, High Court told

BusinessLive reports that the High Court in Pretoria heard on Tuesday that Home Affairs Minister Aaron Motsoaledi did not consider the harmful effects of his decision to end the Zimbabwe Exemption Permit (ZEP) regime. On that basis alone his decision was unlawful, said Steven Budlender, counsel for the Helen Suzman Foundation (HSF). The court was hearing three separate applications on the special permits, which has allowed about 178,000 Zimbabweans to lawfully live in SA since 2009. The permits, due to expire at the end of June, were first introduced in response to a political and economic crisis in Zimbabwe that created an exodus to SA.   The permit regime was twice extended – in 2014 and 2017 – but the government says it was always clear that the permits were temporary. In November 2021, the cabinet announced that the government would “no longer issue extensions to the Zimbabwean special dispensation” and gave holders a year’s “grace” to get their immigration status in order. The year’s grace was then extended for another six months. The HSF challenged Motsoaledi’s decision on a number of grounds, including that there was no meaningful consultation with those affected before the decision was taken, and that the minister had not considered the effect of his decision on the holders of the permits and their children.   Counsel for the Consortium for Refugees and Migrants in SA, pointed out that the permits were introduced because of the dire situation in Zimbabwe, yet conditions there had not improved and the government had provided no evidence to the contrary.   Counsel for the minister will argue the government’s side of the case on Wednesday.

Read the full original of the report in the above regard by Franny Rabkin at BusinessLive (subscriber access only)

HIGHER EDUCATION / SKILLS DEVELOPMENT

Limpopo government partners with TVET colleges to enhance skills

The Citizen reports that the Limpopo provincial government has partnered with technical, vocational education and training (TVET) colleges in the province to improve skills that feed into mining and industrialisation in an endeavor to create more jobs and improve the local economy after Covid. One example is the recent partnership with Vhembe TVET college, outside Thohoyandou.   Some of the other colleges involved are Capricorn, Mopani, Vhembe, Lephalale, Letaba, Mopani and Waterberg.   The Limpopo Human Resources Development Council recently visited some of the colleges to assess whether skills offered in such institutions were in line with available job opportunities.   Some of the skills offered in the TVET colleges are boiler making, fitting and turning, upholstery, diesel mechanic courses, professional cookery, electrical engineering, robotics and building and construction. The council pointed out on Tuesday that some of the skills were meant to enable graduates to establish their own companies and eventually create employment for others. According to the latest Quarterly Labour Force Survey by Statistcs SA, Limpopo’s unemployment rate declined by 2.1 percentage points from 33.9% in 2021 to 31.8% in the fourth quarter of 2022. In 2021, the Limpopo mining industry had the biggest share in terms of contribution to the provincial economy at 31.2%.

Read the full original of the report in the above regard by Alex Japho Matlala at The Citizen

MEDICAL SCHEMES

Medical schemes regulator deepens probe into GEMS vitamin tender

BL Premium reports that the Council for Medical Schemes (CMS) has deepened its probe into a multimillion-rand vitamin tender awarded by the Government Employees Medical Scheme (GEMS). The CMS announced last May that it had initiated an inquiry in the wake of media reports that the GEMS had spent R400m on a multivitamin contract with Activo Health, which is fully owned by Afrocentric.   GEMS had raised eyebrows about the nature of the contract and the process by which it was awarded. Medical schemes usually cover benefits for members that have been recommended by healthcare professionals, but in this case it offered each of its members a five-month supply of multivitamins without the involvement of healthcare providers. It also outsourced the selection of the multivitamin provider to its managed care provider, Medscheme, which is also a subsidiary of Afrocentric, raising questions about a potential conflict of interest. The initial probe was conducted in terms of Section 43 of the Medical Schemes Act. It was completed on 15 September and recommended that a more detailed investigation be conducted in terms of Section 44 of the Act. “We hope the investigation will be completed by the end of June 2023, but this is subject to many factors such as how fast the investigators are provided with the information [and] documents they require, access to the people they need to engage with, and possible legal challenges to halt the investigation,” CMS spokesperson Stephen Monamodi indicated.   GEMS confirmed that it was still providing the multivitamins to members.

Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only)

WORKPLACE FRAUD

Three Absa employees each sentenced to 15 years in jail for R190m fraud

TimesLive reports that the Mokopane Regional Court has convicted and sentenced three bank employees to 15 years direct imprisonment each for defrauding the Johannesburg Securities Exchange (JSE) and Samancor of funds amounting to R190m. During the trial, the court heard how the syndicate operated in their capacity as Absa employees in Limpopo and Gauteng when they accessed the portfolios of JSE Trustees and the Samancor Foundation without authorisation.   NPA spokesperson Mashudu Malabi-Dzhangi indicated that on 26 July 2019, near Lephalale, the accused misrepresented to Samancor Foundation, or Absa, that they were authorised to transfer an amount of R2.9m, made changes to the JSE’s banking portfolio and added their own. “On August 12 2019, a transfer of R30m was made from Samancor Foundation, and on September 23 2019, an overall amount of more than R158m,” she reported. The court agreed with the state that fraud as a white-collar crime was a national concern, and accordingly the only appropriate sentence was a custodial sentence.

Read the full original of the report in the above regard by Shonisani Tshikalange at TimesLive

SEXUAL MISCONDUCT

KZN teacher fired for allegedly ‘kissing and grabbing pupil’s buttocks’ reinstated

TimesLive reports that a teacher fired for allegedly kissing a pupil and grabbing her buttocks was vindicated when the Education Labour Relations Council overturned the decision. The teacher not only got his job back, but the KwaZulu-Natal (KZN) education department was ordered to pay him more than R600,000 for the 19 months he had been at home. The teacher, who cannot be named to protect the pupil, was the grade 9 head of the department (HOD). According to the ruling, the HOD called the pupil into his office to tell her that another teacher had agreed to apologise for ridiculing her in front of others. The pupil was apparently teary and emotional and he gave her a hug and told her that the teacher would never mock her again. The following day, the HOD was placed on precautionary suspension, while his contract was eventually terminated on 16 September 2021. Under cross-examination, the HOD pointed out that a hug was not intimate but it could be depending on the kind of hug and the nature of the hug. He disputed that he kissed the pupil and grabbed her buttocks and denied he was a sexual predator. The education department did not bring witnesses to the arbitration. Instead of proving that the HOD’s dismissal was fair, the department “asked questions to challenge the evidence tendered by” the HOD. The arbitrator found that the HOD’s evidence was probably true. “In this regards the evidentiary burden that was on the [education department] is toppled by [HOD’s] evidence,” the ruling reads. The arbitrator found that the education department had failed to demonstrate that the dismissal had been substantially fair.

Read the full original of the report in the above regard by Philani Nombembe at TimesLive

REPORTS OF INTEREST

• Deurbraak verwelkom in moorde by Fort Hare-universiteit, by Maroela Media
• Fort Hare-saak: Werknemers onder verdagtes, by Maroela Media
• Sama’s leadership legitimacy battle takes a turn for the worse, at City Press (subscriber access only)
• Lifestyle audits may help identify thieves in SIU’s investigation on Prasa, at The Citizen (subscriber access only)