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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Eskom tables 3.75% wage increase offer for employees BL Premium reports that the first round of wage talks between Eskom and its recognised trade unions got under way at the central bargaining forum on Wednesday, with talks expected to continue until Friday. The cash-strapped power utility tabled a wage increase offer of 3.75%. The two-largest unions at Eskom, namely the National Union of Mineworkers (NUM) and the National Union of Metalworkers of SA (Numsa) are demanding a 15% wage increase, while Solidarity is demanding an increase of 3% above the average inflation rate. Numsa is demanding a two-year wage deal, while NUM and Solidarity want a single-term agreement. Numsa’s other demands include a housing allowance of R1,175; 80% employer contribution to the medical scheme; six months’ fully-paid maternity leave; and 14 days paternity leave. It is also against the closure of coal-fired power stations. Numsa spokesperson Phakamile Hlubi-Majola indicated: “The only demand which Eskom responded to was to inform us that they want a one-year agreement, and they are only offering [a] 3.75% increase.” She lashed out at Eskom management for being ill-prepared for the talks. Hlubi-Majola also trained her guns on lies peddled by “right-wingers in the media” that Eskom workers “earn generous packages”. Eskom spokesperson Daphne Mokwena said: “Given our financial and operational position, we are of the view that our offer is reasonable. The trade unions' demands are, in our view, not reflective of our financial and operational position.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only) Numsa accuses ‘unprofessional’ Eskom of coming to wage talks unprepared The Citizen reports that the National Union of Metalworkers of SA (Numsa) has accused Eskom’s management of being unprepared for wage negotiations with trade unions. Eskom management met with unions on Wednesday at the Central Bargaining Forum (CBF) for the first day of wage talks. The power utility’s three unions, the National Union of Mineworkers (NUM), Numsa and Solidarity, had previously submitted their wage demands. NUM and Numsa were both demanding a 15% salary increase across the board, along with other benefits. Solidarity wanted an across-the-board salary increase of the average consumer inflation of the 12 months prior to the salary increase, plus an additional 3%. According to Numsa, Eskom’s management came unprepared for the negotiations and apparently failed to present written submissions to the CBF. The union’s spokesperson Phakamile Hlubi-Majola said the wage talks were supposed to start at 9 am on Wednesday, but ended up starting at 12:45 pm because Eskom needed time to write up its submissions so that they could be shared with all parties. She said the only demand that management responded to was to inform union representatives that they want a one-year agreement, and that they are only offering a 3.75% wage increase. “We condemn Eskom for their unprofessionalism and also for their frequent delay tactics. This is not how the executive management of a state-owned enterprise should behave. It is unheard of for negotiators to arrive at a session of this nature with written notes, instead of a clear presentation of their position. What is worse, is that by last week Thursday all unions had submitted their demands, so they had enough time to prepare properly for the session and it is unacceptable for them to be so unprepared,” Hlubi-Majola said in a statement. Read the full original of the report in the above regard compiled by Thapelo Lekabe at The Citizen
Ramaphosa reports constructive engagement with steel sector to grow sector and ensure sustainability Engineering News reports that President Cyril Ramaphosa met with business leaders in the steel and engineering industries on 18 April to discuss measures that government, the industry and other social partners would take together to grow the sector and ensure its future sustainability. The purpose of the meeting was to deepen engagement between government and this strategic sector of the economy, the Presidency said in a statement. “The steel sector is at the heart of our economy, as it has a significant multiplier effect and is one of largest job creators in the manufacturing sector. Our infrastructure drive should be the catalyst that propels its recovery and growth. We are determined to build a local steel sector that is strong, competitive and well-positioned for the future,” Ramaphosa said. During the meeting, he outlined the actions being taken to achieve energy security, improve the performance of the freight logistics system and tackle corruption and crime. Government and industry representatives discussed opportunities for local steel in the effort to rehabilitate the rail network, expand the national transmission grid and build water infrastructure, as well as the need to invest in skills development. The Steel and Engineering Industries Federation of Southern Africa (Seifsa) expressed its support in working with government and other social partners to address the country’s challenges and unlock investment in the sector. Read the full original of the report in the above regard at Engineering News Other internet posting(s) in this news category
EWSETA launches women-focused renewable energy skills programme Engineering News reports that the Energy & Water Sector Education Training Authority (EWSETA), together with the Department of Higher Education and Training and the United States Agency for International Development (USAID), launched a renewable energy skills development programme for 100 women on 19 April. The Electrical Engineering Renewable Energy Specialisation Skills Development Programme will see the 100 artisans in electrical engineering being upskilled in renewable energy, over a six-month period. The programme will also upskill 15 technical vocational education and training (TVET) college lecturers from the Gert Sibande, Nkangala and Ehlanzeni TVET in Mpumalanga, which will help the colleges attain accreditation to offer a National Qualification Framework Level 3 qualification in electrical engineering for renewable energy. The partners envision that the participating women will gain valuable renewable energy industry skills, such as wind and solar system design and installation, battery storage design and installation, as well as solar water heating installation, during the programme. This will afford them greater access to employment and business opportunities in the renewable energy sector. The fact that the programme targets women as the main beneficiaries is a response to transformational imperatives within the energy sector, as the current workforce is still predominantly male. Read the full original of the report in the above regard at Engineering News
Capitec CEO Gerrie Fourie takes 33% pay cut, but still rakes in R62m BL Premium reports that Capitec CEO Gerrie Fourie took an effective 33% pay cut during the bank’s past financial year, but still raked in more money over the 12-month period than most South Africans will make in their entire lifetimes. The head of SA’s largest retail bank by customer numbers earned R62.09m during Capitec’s financial year to end-February, according to remuneration details contained in the group’s 2023 integrated annual report. That amount comprised guaranteed pay of R16m, benefits of R920,000, short-term incentives of R5.43m and long-term incentives of R39.74m. That compares to the typical South African’s average monthly earnings of about R26,032 – or R312,384 a year. So, Fourie earned an annual salary that was almost 200 times greater than that of the average employed South African. But, Fourie’s remuneration for Capitec’s 2023 financial year was significantly lower than the R92.77m he earned the previous financial year. Danie Meintjes, who chairs Capitec’s remuneration committee, wrote in the annual report: “We see our remuneration policy as key to our ability to attract and retain talent in a market where the battle for talent is fierce. We have engaged independent external remuneration consultants to ensure that our remuneration policy remains fit for purpose in a dynamic and changing environment and is aligned to the achievement of our strategies.” Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (subscriber access only)
Nampak CEO Erik Smuts resigns with immediate effect Moneyweb reports that the CEO of debt-laden consumer goods packaging firm Nampak, Erik Smuts, has resigned from the company and has stepped down from its board. Smuts, who has been at the helm of the company for over three years, stepped down following material changes to the “size and nature of the CEO’s role”, Nampak said in a statement on Thursday. Smuts had been with the company for 25 years, having taken over as CEO from André de Ruyter, who left the company at the end of 2019 for state-owned power utility Eskom. Nampak said it has already initiated a process to appoint a new CEO. In the interim, Nampak has appointed Phildon Roux as CEO, effective from 20 April. Roux had been a member of the company’s nominations and remuneration committees and chair of the restructuring committee. “The board welcomes Mr Roux to his new role as interim CEO and is confident that he will leverage his extensive operational and strategic experience in the FMCG sector, as well as his demonstrated skills in organisational turnarounds, to achieve the objectives of the restructuring plan whilst ensuring the company’s long-term sustainability,” the company said. Read the full original of the report in the above regard by Ntando Thukwana at Moneyweb. Read too, Nampak CEO Erik Smuts resigns, at Fin24
Mangaung mayor says directorship in G4S-linked company ‘not a paying job’ and nothing stops him being a board director The Citizen reports that Mangaung Metro Mayor Itumeleng John ‘Papi’ Mokoena, who is a director at a company doing business with the British private prison contractor G4S , claims he isn’t doing any paid work while also serving as a full-time councillor and mayor. The municipal code of conduct forbids full-time councillors, including mayors, to take up paid work elsewhere, unless council agrees. Mokoena and his brother, Lebohang Joseph Mokoena, are directors of the Bloemfontein Correctional Contracts (BCC), in which beleaguered G4S is one of the shareholders. The companies are in a public-private partnership in managing the Mangaung Correctional Center (MCC). The daring escape of rapist Thabo Bester from the facility in May last year, allegedly helped by prison warders plied with cash and gifts, has brought forward the endemic problems at the facility. When contacted on Tuesday about his directorship, the newly installed mayor said: “When you are full-time you can’t work somewhere else, but you can serve as a trustee or at an NGO where you do not earn money, directorship is something different. There’s nothing stopping a councillor from serving on a board. There are directors who don’t get paid, I don’t get any payments.” Mokoena is the leader of the Afrikan Alliance of Social Democrats (AASD). A council insider said before his election in council, Mokoena told other opposition parties leaders that he was a “shareholder director.” “He told us he was just the link between G4S and the government and not earning money. Council has not verified that information as things stand,” said the source. Another insider said the new mayor told party leaders he was no longer a company director. Read the full original of the report in the above regard by Getrude Makhafola at The Citizen (subscriber access only) Court orders reinstatement of 40 expelled ANC and EFF Mogale City councillors The Citizen reports that the South Gauteng High Court on Wednesday instructed the West Rand’s Mogale City Local Municipality to reinstate 40 dismissed ANC and EFF councillors in council. This after the ANC approached the court on an urgent basis. Judge Meyer ordered the city to allow the councillors to be part of Wednesday’s sitting. She further instructed the municipality to reply by 17 July to why the order should not be made final. The ANC and EFF alliance is at loggerheads with the DA, after speaker Jacqueline Pannall fired more than half of the council’s members for skipping meetings. Mogale City has 77 seats – 31 are held by the ANC and 11 by the EFF, while the DA has 25 seats. The DA took over Mogale City after receiving EFF votes after the 2021 polls. The ANC and the red berets skipped follow-up special council meetings, with their absence leaving the adjustment budget and other matters hanging, because there was no quorum to pass them through. Pannal postponed last week’s meeting as the saga over the fired councillors raged on, saying she would seek legal advice on the matter. Gauteng Cogta MEC Mzi Khumalo accused Pannall of not following due processes when she decided to expel the councillors. Read the full original of the report in the above regard by Getrude Makhafola at The Citizen
SA pension system scores below average globally, according to latest research Moneyweb reports that SA’s pension system scored below average in a recent global study looking at the viability of 75 pension systems around the world. The country received a total score of 4.2 – out of a possible seven for the worst pension system – in comparison to the unweighted global average of 3.6. The second edition of the Allianz Global Pension Report for 2023, released on Wednesday, noted that SA’s low ranking was an indication that its pension system was in strong need of further reforms. “Problems include the low coverage, the low benefit level and the lack of retirement savings, imperilling the adequacy of the system,” the report pointed out. Moreover, despite more than 80% of the South African population having access to financial services, just above 20% save for old age. “Given the dominance of informal labour, many workers are not able to fulfil the minimum contribution period requirements, leaving them with lump-sum payments at retirement that are not sufficient to guarantee a decent living standard in old age,” the report indicated. Despite painting a bleak picture of the local pension system, the report highlighted crucial reforms that could improve life after work for the country’s pensioners. Also, SA was said to have two big advantages, namely it has financial leeway as public spending for the elderly is very low, and it is set to remain a ‘young’ country. Read the full original of the report in the above regard by Akhona Matshoba at Moneyweb 'Deeply concerned' PIC board slams its executives after AYO settlement Fin24 reports that the Public Investment Corporation (PIC) board has roasted the organisation’s executives for not keeping it in the loop about a controversial settlement with IT group AYO. A month ago, the PIC settled with AYO behind closed doors, abruptly ending the state asset manager's legal battle to claw back the R4.3 billion it invested in AYO. In terms of the settlement, AYO will repurchase R619 million in shares from the Government Employees Pension Fund (GEPF) and grant it two seats on its board. The PIC invests on behalf of the GEPF and some other government funds. Following the repurchase, the pension fund will retain a minimum shareholding of about 25% in the IT group. The GEPF also has the option of sell another 5% of AYO's shares after three years at least R20 per share. In a statement issued by PIC board chair and deputy finance Minister David Masondo on Thursday, the board said it was "deeply concerned" about management's handling of governance processes during the settlement, specifically that it was not informed "timeously" of the PIC's intention to settle with AYO. Masondo added: "The PIC’s management has a duty of care to protect the company’s integrity and reduce the risk of reputational damage. This includes the responsibility of management to timeously inform the board of intended settlements." However, the PIC board also indicated that the AYO settlement was nevertheless justified as "a good commercial decision". Read the full original of the report in the above regard by Jan Cronje at Fin24. Read too, PIC board issues warning to CEO Abel Sithole over AYO deal, at BusinessLive (subscriber access only) SA football needs more than lip service to proper post-career safety nets for ex-players Sunday Times writes that it has become standard that when news comes out of a former professional footballer falling on hard times, the Premier Soccer League (PSL), its clubs and the SA Football Association (Safa) wheel out the same old tired clichés. There was a report this week of fans in Norway raising R2m when they heard that former Bafana Bafana goalkeeper Emile Baron was living in poverty with his wife and two sons in Johannesburg. Such stories always attract plenty of public reaction and football officials usually respond that “all the stakeholders need to come together to find a solution”. Yet they never actually seem to do so. Most of the bigger clubs in SA do now strive to educate, especially younger players, on the necessity to plan for a future beyond a short playing career, as do most of the various private academies. Safa has such programmes for players in its national junior teams. But overall, how former players and legends have been looked after has been a deficiency from “all the stakeholders” in SA football. A pension scheme could be one solution. A fund, involving clubs, Safa, the PSL, legends associations and SA Football Players Union to help ex-footballers in desperate situations get back on their feet, could be another. But for such plans to even be formulated properly, the stakeholders need to do more than just pay lip service every time hard times stories emerge. Read the full original of the opinion piece in the above regard at Sunday Times Daily (subscriber access only)
Fugitive who allegedly defrauded students of R2m through bogus nursing colleges released on R15,000 bail News24 reports that bail of R15,000 has been granted to a Limpopo woman who was on the run for six years after allegedly defrauding students out of more than R2 million while running unregistered nursing colleges. National Prosecuting Authority (NPA) spokesperson Mashudu Malabi-Dzhangi said Salome Ngwana ran three unregistered colleges in Botlokwa, Morebeng and the Vhembe district of Limpopo, where unsuspecting students enrolled for fraudulent nursing diplomas. The victims were also assured of employment across the province upon completion of their studies. When the ruse was exposed in 2017 and a case was opened against her, Ngwana fled to Zimbabwe and was on the run for six years. A breakthrough happened in March when detectives from Makhado received information that Ngwana would return to South Africa via OR Tambo International Airport in Gauteng. Ngwana was arrested on 10 March at the airport. She appeared in the Makhado Magistrate's Court on Wednesday on 13 counts of fraud. She is also facing 40 counts of fraud in Thohoyandou and 43 counts in the Morebeng Magistrate's Court. The case was postponed to 30 June for further investigation. Read the full original of the report in the above regard by Tshepiso Motloung at News24 Other internet posting(s) in this news category
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