In our Thursday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Consumer inflation remains red hot as food price hikes hit 14% Fin24 reports that contrary to forecasts, the annual consumer price inflation (CPI) rate is still heading higher – reaching 7.1% in March, up from 7.0% in February. Economists had expected CPI to cool to below 7% in March. Instead, consumer prices rose by a full percentage point from February to March – the biggest monthly rise since July last year. This was largely the result of pricier food, Statistics SA said. Prices of food and non-alcoholic beverages rose by 14.0% over the past year, the biggest increase in 14 years. This contributed 2.4 percentage points to the total CPI annual rate of 7.1%. Prices of milk, eggs and cheese rose by 13.6% over the past year. But inflation has started cooling in the categories for bread and cereals (20.3%, down from 20.5% in February), meat (10.6% from 11.4%) as well as oils and fats (16.7% to 16%). While fuel prices rose by 4.5% between February and March, the transport index cooled to 8.9% in the 12 months to March, from 9.9% in February. The latest inflation number included school and university fees, which are surveyed once a year in March. Primary and pre-primary school fees were up 6.3%, while fees for secondary schooling rose 5.8% and by 5.3% at tertiary institutions. Textbook prices jumped 11.3%, the largest annual increase since 2009. Read the full original of the report in the above regard compiled by Helena Wasserman at Fin24. Read too, Inflation accelerates for second consecutive month in March, at BusinessLive (subscriber access only) Despite food inflation surprise, Reserve Bank affirms its inflation forecast BL Premium reports that the SA Reserve Bank (SARB) is sticking to its 2023 inflation forecast that consumer prices will return to its target band later in the year, even though consumer inflation unexpectedly accelerated in March. In an interview on Wednesday, governor Lesetja Kganyago said inflation would return to the 3%-6% target range in the fourth quarter as previously forecast despite the sticky food inflation, which he acknowledged caught the Bank by surprise. “We were surprised by food prices. We expected food prices to rise by 13%, but they rose over 14%. Worryingly is that global food prices in dollar terms have come down significantly and food prices in SA are still climbing in an environment where we have actually had good rains,” Kganyago observed. “It talks firstly to a weaker rand exchange rate that is keeping food prices sticky and secondly there are idiosyncrasies affecting inflation,” he explained, referring to extra costs incurred by businesses to provide alternative backup power as Eskom struggled to provide adequate energy supply. His comments came after Stats SA data showed that headline consumer price index (CPI) rose for the second time in a row in March, raising the odds that the central bank could again hike interest rates during its meeting in May. Agricultural Business Chamber (Agbiz) chief economist Wandile Sihlobo expects domestic food inflation, at a 15-year high, to begin to moderate in the second half of the year. “For April, we will likely see the continuation of the tail-end effects of the high grain prices of last year. If sustained, the current relatively cheaper grain prices will filter mainly in the year’s second half,” he said. Read the full original of the report in the above regard by Andries Mahlangu at BusinessLive (subscriber access only) Other internet posting(s) in this news category
Man working on high-rise billboard in Pretoria critically burnt after electric shock TimesLive reports that a man suffered critical burns from an electric shock while he was working on a high-rise billboard in Pretoria East. Emer-G-Med paramedics responded to the scene in the Silver Lakes area of Pretoria East on Wednesday afternoon where the man had made contact with high-voltage cables. “The man suffered critical burns and a decision was made to airlift him to a specialist facility for the definitive care that he required,” Emer-G-Med reported. Read the original of the short report in the above regard by Shonisani Tshikalange at TimesLive Three female Post Office employees gunned down In Eastern Cape IOL reports that Eastern Cape police are on the hunt for suspects who gunned down three female Post Office employees on Monday afternoon in Flagstaff. “It is alleged the suspects who were travelling in a red or maroon vehicle stopped and opened fire on a white Ford Ranger which was transporting three Post Office female employees on a gravel road in Jaca Locality, Flagstaff,” reported provincial police spokesperson Warrant Officer Majola Nkohli. The victims, who were in their thirties, died at the scene. The suspects are still at large and three counts of murder are being investigated. In another incident in Flagstaff the following day, three unknown armed men targeted the Post Office. “It is further alleged the three men entered the Post Office in Main Street at around 8am and held the employees at gunpoint. The suspects managed to steal an undisclosed amount of cash and employees’ cellphones before fleeing the scene,” said Nkohli. The Eastern Cape police commissioner, Lieutenant Nomthetheleli Mene, has activated a task team to find and arrest the suspects involved in both incidents. Read the full original of the report in the above regard by Jolene Marriah-Maharaj at IOL More than 60 attacks on staff at Gauteng health facilities so far this year TimesLive reports that there have been 61 attacks on Gauteng healthcare workers at the province's facilities since the beginning of the year, mostly by mental health patients. Responding to questions at the Gauteng provincial legislature, health MEC Nomantu Nkomo-Ralehoko said others incidents related to anger towards staff for various reasons, such as refusal to buy them items, patients trying to escape, angry relatives and patients linked to criminal activities. “The attacks range from incidents where staff members were bitten, punched, hit on the face, robbed, or assaulted. These led to patients either being sedated, restrained, transferred to other wards or facilities, or being secluded and, in some instances, cases being opened with the police,” she indicated. The majority of the incidents happened at Weskoppies Psychiatric Hospital (21), Carletonville Hospital (nine), Far East Rand Hospital (nine), Chris Hani Baragwanath Academic Hospital (seven), Thelle Mogoerane Hospital (four) and three at Kopanong Hospital. Nkomo-Ralehoko said the department continued to take measures to equip staff to deal with attacks and to reduce them. The measures included training staff on responding to aggression and violence. Read the full original of the report in the above regard by Kgaugelo Masweneng at TimesLive. Lees ook, ‘Veiligheid’ departement se prioriteit ná aanvalle op medici, by Maroela Media Other internet posting(s) in this news category
ConCourt rules on use of ‘scab’ labour during a lockout imposed after union ‘suspended’ its strike BL Premium reports that the Constitutional Court (ConCourt) ruled on Tuesday on the use of replacement (‘scab’) labour by an employer during a lockout. The unanimous judgment, written by Judge Owen Rogers, noted that strikes were constitutionally protected while an employer’s right to lock out was not. The court case arose out of a 2020 dispute between striking workers belonging to the National Union of Metalworkers of SA (Numsa) and Trenstar, a logistics company for Toyota. After a strike over a demand for a one-off gratuity, Numsa gave notice to Trenstar that its members would be returning to work. On the same day, Trenstar responded that it would lock out Numsa members on their return. Trenstar said at the time that because the lockout was a “response” to the strike, it was allowed to use replacement labour. In law, during lockouts, employers may not use replacement labour to perform the work of those workers it has locked out, except when the lockout is a “response” to a strike. Numsa argued in the Labour Court (LC) that the strike was over and thus the replacement labour was unlawful and unnecessary. Trenstar, however, argued the strike had merely been suspended, not fully terminated, so it was allowed to use replacement labour in response to a continued strike. The LC ruled in favour of Trenstar by not accepting that a mere suspension of a strike negated the lawful use of replacement labour. Numsa appealed to the Labour Appeal Court, which dismissed the matter as moot. More recently in the ConCourt, Numsa argued that even though the matter was moot, a determination by the apex court would affect all involved in collective bargaining. In his ruling, Rogers noted that the Labour Relations Act did not deal with distinctions between suspended and terminated strikes. He ruled that because Numsa told the company that its workers would be returning to work this meant the strike was over. “A ‘strike’ is a state of affairs occurring with a particular purpose. It either exists or it does not. A ‘strike’ ends... when there is no longer a concerted withdrawal of labour,” he wrote. Rogers also held that “the right to use replacement labour no longer existed when the lockout actually began.” This meant Trenstar could not use this as a mechanism to effectively punish workers for striking. Read the full original of the report in the above regard by Tauriq Moosa & Luyolo Mkentane at BusinessLive (subscriber access only) Economists raise alarm over Constitutional Court ruling on ‘scab’ labour BL Premium reports that economists have warned that a Constitutional Court (ConCourt) judgment on replacement labour during a strike could have far-reaching consequences for SA and discourage new investments. The ConCourt ruled on Tuesday that employers may not use “scab labour” during a lockout while workers are on strike. Stanlib chief economist Kevin Lings said the judgment added to the “burden of doing business in SA, on top of load-shedding and Transnet. It’s a discouraging environment for everyone. In general, SA has a complicated set of labour legislation, it’s extensive and all of that adds to the complexity of doing business.” He indicated that companies took the decision to use replacement labour in the “interest of business” and because they were trying to look at the business in total. He argued that the judgment could result in business owners being reluctant to expand their operations and take on additional employment. “If you are having difficulties with labour unions, you will be reluctant to expand your labour base. Over time, you are going to ask yourself how do I increase technology in my business, how do I automate it and introduce robotics, as that would lessen the complication labour brings to your business,” Lings said. Econometrix chief economist Azar Jammine said that considering the unemployment levels in SA, “no doubt the labour regime is too tough” and added to the cost of doing business. Commenting after the ConCourt ruling, Numsa general secretary Irvin Jim said they went to court to prevent employers from abusing lockouts and to ensure they did not “give employers disproportionate and unfair power.” Read the full original of the report in the above regard by Tauriq Moosa & Luyolo Mkentane at BusinessLive (subscriber access only)
Numsa mobilising for ‘mother of all strikes’ over deadlocked wage negotiations at ArcelorMittal SA BL Premium reports that the National Union of Metalworkers of SA (Numsa) says it is mobilising for the “mother of all strikes” at steelmaker ArcelorMittal SA (Amsa). This comes after the union and Amsa reached a deadlock during pay talks on 5 April. Numsa general secretary Irvin Jim said that the union’s members were on the “verge of a strike” in the “steel belt” of Vanderbijlpark, Newcastle and Vereeniging and there was also the possibility of a secondary strike. “Numsa is the majority trade union representative within Amsa nationally, and we will be embarking on the dispute resolution process, which may lead to a full-blown strike if Amsa management does not make a meaningful offer to settle this round of wage talks,” Jim said in a statement. Numsa is demanding a one-year 15% pay increase across the board, while the employer has offered 6%. In addition to wages, increases in employer pension fund and medical aid contributions, paternity leave of 90-day per occurrence, and a R20,000 increase in respect of funeral benefits are among the issues on the table. Numsa leadership and Amsa management are set to meet for dispute resolution talks at the Metals and Engineering Industries Bargaining Council on 24 April. Amsa began pay talks with Numsa and Solidarity on 20 February. The company’s consolidated offer includes a three-year wage deal for increases of 6% in 2023 and hikes linked to consumer price inflation (3% minimum capped at 6.5%) in the outer years of the agreement. “Both unions have rejected our offer and the internal process is under way to try and resolve the matter,” said an Amsa spokesperson. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
Another G4S employee arrested in connection with Thabo Bester escape plot News24 reports that another G4S employee has been arrested in connection with Thabo Bester's prison escape saga. The 51-year-old security guard is the second one to be arrested following the arrest of prison warder Senohe Matsoara. National police spokesperson Brigadier Athlenda Mathe said the man was arrested on Tuesday at the Mangaung Correctional Centre in Bloemfontein, from where Bester escaped on 3 May 2022. The guard is expected to appear in the Bloemfontein Magistrate's Court on Thursday. Mathe said the man faced charges of assisting an inmate to escape from lawful custody and defeating the ends of justice. Other people who have been arrested in connection with Bester's escape include celebrity aesthetics doctor Nandipha Magudumana, her father Zolile Sekeleni, and Integritron Integrated Solutions employee Teboho Lipholo. Bester, who was serving a life sentence at the time of his escape, was arrested in Tanzania with Magumudana. He is currently being held at Kgosi Mampuru II Prison. Read the original of the short report in the above regard by Alex Patrick at News24. Lees ook, Nog ʼn G4S-werker vas oor Thabo Bester-ontsnapping, by Maroela Media Bester escape saga is an embarrassment, says Popcru president after visit to Mangaung Correctional Centre GroundUp reports that the president of the Police and Prisons Civil Rights Union (Popcru), Zizamele Cebekhulu Makhaza, says the government should take back the running of prisons from private companies. Last week, representatives of the union visited the Mangaung Correctional Centre in Bloemfontein, from which convicted rapist and murderer Thabo Bester escaped in May 2022. At a press conference on Wednesday, Makhaza said Bester’s escape had been well planned and had taken place while some of the Popcru members were off-duty. He asserted that the Department of Correctional Services (DCS) had failed, as had the Parliamentary Committee on Justice and Correctional Services, which should have done its oversight work better. “They have been visiting this prison as a committee, they should have picked something up. These private prisons are of no help to South Africa. They must be fully under the Department of Correctional Services. This Bester saga is an embarrassment to all of us linked to prisons,” Makhaza said. He claimed that G4S, which runs the Mangaung prison, was “not taking responsibility” and was “still trying to hide a lot regarding the Bester escape.” Makhaza opined that prisons should function as they had under the apartheid regime and not “function like hotels”. “We hated the regime but we can take lessons from what worked. We would rather have public prisons that we have control of, than private prisons where we have no say on how things are run,” said Makhaza. Read the full original of the report in the above regard by Chris Gilili at GroundUp. Read too, Popcru says calls for Lamola to resign over Bester saga ‘shift the blame’, at TimesLive Other internet posting(s) in this news category
Gordhan slams explosive claims made by suspended director-general about SAA deal Fin24 reports that Department of Public Enterprises (DPE) Minister Pravin Gordhan has hit back at the department’s suspended director-general (DG) Kgathatso Tlhakudi in a spat that, most recently, saw the latter reportedly making explosive claims regarding the proposed SA Airways (SAA) takeover deal. But, Gordhan said there was absolutely no merit in allegations made against him by Tlhakudi, who is facing disciplinary proceedings for misconduct, due to allegedly interfering in a recruitment process at the DPE. Tlhakudi turned to the courts to challenge his suspension and disciplinary proceedings, claiming he had been targeted because of "protected disclosures" about Gordhan. The suspended DG claimed the minister sidelined him, acted irregularly in the SAA business rescue process, and also engaged in cronyism. According to Tlhakudi, assets belonging to the embattled airline – set for takeover by the Takatso Consortium in a long-awaited deal that has yet to be concluded – were undervalued by some R7 billion, with a new board allegedly lined up to approve the transaction. But Gordhan hit back, telling Parliament that Tlhakudi was relying on his so-called protected disclosure to dodge disciplinary proceedings. According to Gordhan, Tlhakudi was attempting to delay the process until his fixed-term contract with the DPE expired at the end of July 2023. Moreover, Gordhan pointed out that he was not party to the disciplinary process, since it was headed by Justice Minister Ronald Lamola. Gordhan stressed that Tlhakudi's suspension and the disciplinary action against him were entirely unrelated to the SAA matter. Read the full original of the report in the above regard by Carin Smith at Fin24 Gordhan, suspended director-general, to appear in parliament over SAA deal Mail & Guardian reports that Public Enterprises Minister Pravin Gordhan will be called to appear before parliament to respond to claims by the department’s suspended director general, Kgathatso Tlhakudi, of impropriety in the SAA/Takatso Aviation deal. Tlhakudi, who was suspended last year, claimed in a protected disclosure and in a letter to parliamentary speaker Nosiviwe Maphisa-Nqakula last week that SAA had been undervalued by R7 billion as part of the takeover of the national carrier by the Takatso consortium. He also claimed that he was being targeted because of a protected disclosure about the deal and that the new SAA board was being appointed to cover up the undervaluation and to force through the deal. On Wednesday, parliament’s public enterprises portfolio committee decided to call Gordhan and Tlhakudi to its next meeting to investigate the veracity of the allegations. Committee chairperson Khaya Magaxa said he would “fast track” the process to allow both to make representations and be “interrogated” on the matter by MPs on the committee, after which a decision would be taken on the next step. The meeting is expected to take place by Friday next week. The SAA deal has been dogged by controversy since the public enterprises department announced two years ago that it had chosen the Takatso consortium as its equity partner to take over 51% of SAA, which had been placed under business rescue. The opacity of the deal has been criticised by trade unions, opposition parties and now Tlhakudi, Read the full original of the report in the above regard by Paddy Harper at Mail & Guardian (subscriber access only)
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