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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Nothing but grim darkness for SA’s 2023 economic outlook The Citizen writes that SA’s economic outlook for the immediate term is bleak and a scenario of flat to no growth is a real possibility for 2023. The country is probably already in a technical recession after two consecutive quarters of negative growth. According to Deloitte’s latest economic outlook for SA, the economy has faced a series of global and local disruptions, including slowing global growth, geopolitical tensions, acute power challenges, inefficiencies in state-owned enterprises and climate change. Deloitte points out that if these challenges persist and various global and domestic risks materialise, 2023 could be a perfect storm for SA. The International Monetary Fund (IMF) has also slashed its 2023 forecast for SA to a meagre 0.1%, due to intensified rolling blackouts and an uncertain global environment. To minimise further deterioration and create conditions for future growth, Deloitte says urgent action is needed to address supply-side constraints to the country’s growth, such as ensuring stable electricity access and improving freight and logistics. According to Statistics SA, the economy expanded by only 0.3% since the outbreak of the pandemic between 2019 and 2022, a fraction of population growth during the time. Six industries, including most notably construction, mining and manufacturing, are still lagging behind pre-pandemic levels of output. Furthermore, employment is still running below pre-pandemic levels and elevated poverty and inequality are causes of concern in terms of social stability for a country going into an election year. Read the full original of the report in the above regard by Ina Opperman at The Citizen (subscriber access only)
'Vast majority' of SA's blue collar workers becoming poorer amid food price surge, report shows Fin24 reports that even though food prices in March were 14% higher than they were at the same time last year, most South Africans can expect their salaries to go up by less than half of that over the next 12 months. Most employers expect to award wage increases of 4% to 6%, according management platform Remchannel's biannual Salary and Wage Movement Survey Report released on Wednesday. The report was based on data submitted by 65 organisations representing broad cross-section of companies with nearly 350,000 employees. Remchannel also polled quasi-government and government sectors, which might have skewed the numbers upwards as a majority of public sector trade unions recently signed a wage deal of 7.5% for 2023/24 and a CPI-linked wage increase for 2024/25. Taking the public wage deal out of the equation means that most of the surveyed companies' planned increases are even lower than the general inflation rate, which increased to 7.1% in March. So those receiving a 4% increase will see their real pay fall by about 3%. Remchannel's MD René Richter said in a statement: "Invariably, South African households are under pressure with the vast majority of 'blue-collar' employees becoming poorer. If households want to climb out of this rut and gain more wealth, their income must increase at least by more than the consumer price inflation (CPI) rate." Richter noted that employees were already taking financial strain as salaries have not been keeping up with the increased costs of living for years. Furthermore, employees face increased costs associated with alternative energy supplies like inverters and home solar panel installations due to load shedding. Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24 No relief for South Africans as food prices soar Financial Mail reports that yet more South Africans will have been plunged into food insecurity after food prices spiked 14% in March. The jump in the cost of food – contributing more than a third to the annual increase in the inflation measure for the month – yanked the annual consumer price index upwards by 7.1%. With a 20.5% price increase year-on-year, vegetables topped the list, followed by grains (20.3%), processed food (16.2%) and oils and fats (16%). The rapid rise in domestic food prices comes against a drop in food prices internationally. SA’s rising food prices are attributed in large part to load-shedding as well as the heavy rainfall last year, which affected vegetable production in particular, explained Agri SA CEO Christo van der Rheede. He added that “the exchange rate is keeping [fertiliser prices] artificially high”. Meanwhile, load-shedding is wreaking havoc on farmers, who require electricity to irrigate their crops. All this, of course, has a knock-on effect on consumers, who can now buy 14% less food for the same price they paid last March. The healthy food basket to feed a family of four jumped to R3,504 in February – up R387 or 12.4% from a year earlier. It’s the country’s poorer households who feel this most acutely. The basket accounted for 33.4% of the income of a household of two adults working for the minimum wage, plus two children receiving child support grants (a combined R10,491 a month). The combined income of R1,660 a month for a household of two unemployed adults receiving the R350 a month social relief of distress grant, with both children on a child support grant, amounts to just half the value of the healthy food basket. Read the full original of the report in the above regard by Jaco Visser at Financial Mail (subscriber access only) Petrol set to top R23/l in May, but likely drop in diesel and paraffin prices TimesLive reports that unaudited data from the Central Energy Fund (CEF) indicates there will be big increases in petrol prices in May, pushing the cost of fuel above R23/l for the first time this year. The Automobile Association (AA) says the expected increases will put further pressure on embattled consumers grappling with food prices, which rose 14% year on year in March, the most in 14 years. Inflation as measured by the consumer price index accelerated to an annual rate of 7% in the month. The unaudited data does show that diesel and illuminating paraffin prices are likely to drop, though. ULP95 is expected to climb about 52c/l, and ULP93 by around 56c/l. The wholesale price of diesel is expected to drop by between 31c/l and 57c/l, while the cost of illuminating paraffin will fall about 32c/l. Officially adjusted fuel prices come into effect on 3 May, the first Wednesday of the month. Read the full original of the report in the above regard at BusinessLive. Lees ook, Gemengde brandstofvooruitsig; verbruikers steeds onder druk, by Maroela Media
Godongwana against proposed pay hike of 3.8% for public office bearers TimesLive reports that the Independent Commission for the Remuneration of Public Office Bearers recently proposed a 3.8% increase in salary and benefits for politicians and top officials in 2023. The commission is responsible for making recommendations regarding the salaries and benefits of the president, deputy president, ministers, deputy ministers, premiers, MPs, judges, magistrates and other senior government officials. The commission said it consulted finance minister Enoch Godongwana, justice and correctional services minister Ronald Lamola, chief justice Raymond Zondo and others before making the proposal, which is not final and will need to be approved by President Cyril Ramaphosa, whose salary is approved by parliament. In reply to the commission, Godongwana said he did not support the recommendation of a 3.8% increase as it would increase earnings beyond tolerable levels, as budget constraints did not allow for it. The minister of finance apparently pleaded with the commission “to consider the prevailing adverse economic conditions and the extent to which the population is affected by the low economic state in which the country finds itself. The majority of low-income earners and those who are not employed and make a living rely on government social assistance schemes.” He proposed instead that a 1.5% increase plus a one-off cash gratuity be granted for all categories of public office bearers. Read the full original of the report in the above regard by Unathi Nkanjeni at BusinessLive
Thungela CEO’s pay for 2022 nearly doubled to R129m thanks to red-hot coal BL Premium reports that Thungela CEO July Ndlovu’s total remuneration for 2022 nearly doubled after the group’s strong performance, assisted by a surge in the price of coal in the period. Ndlovu earned R129m compared with the R74m he earned the previous year. This was revealed in the company’s annual report released on Wednesday. Thungela’s profit for the 2022 financial year surged 143% in the year to end-December 2022. The benchmark coal price averaged $270/tonne in 2022, compared with $124/tonne in 2021. Ben Kodisang, chair of the remuneration and nomination committee, observed that during the past year Thungela had continued to deliver value in a complex and highly volatile environment. “It has also seen Thungela really establishing itself as a value-creating company for all of its stakeholders. We are of the opinion that the remuneration policy achieved its objectives in 2022 and we look forward to engaging with our stakeholders to ensure we continue evolving and that our approach to remuneration enables the effective delivery of our purpose and strategy,” he indicated in the annual report. Thungela was spun off from Anglo American in 2021. Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive (subscriber access only)
Tshwane guards march to demand job security The Citizen reports that members of the Independent Democratic Union of SA (Idusa) disrupted traffic in the Pretoria CBD as they marched to Tshwane House to hand over a memorandum demanding that security workers be included in the city’s budget. Idusa Tshwane representative Joshua Mudau said members felt like the City of Tshwane didn’t recognise the important role security guards played in protecting the city. “They just abandon us. In 2021 they absorbed 1,000 workers but the rest were left outside. It’s not fair, the vetting process was also unfair because many other security officers didn’t get an opportunity to apply. Imagine 24 hours without security guards in the city, it would be chaos. They must give us a chance to apply and undergo the screening,” Mudau said. Security expert Dr Johan Burger said due to the extra burden of the administration around extra security guards, private security services for the city seemed to be a better option. “I don’t know how binding the 2018 decision is, but with all the property and infrastructure the city is responsible for, they have no choice but to use security officers who are appointed exclusively for this purpose,” he pointed out. Read the original of the report in the above regard by Marizka Coetzer at The Citizen
ConCourt ruling on scab labour explained Sandile July of Werksmans Attorneys writes about the Constitutional Court (ConCourt) judgment on 18 April 2023 on the interpretation of section 76(1)(b) of the Labour Relations Act (LRA) in Numsa v Trenstar. Numsa's members had embarked on a strike in the form of a total withdrawal of labour that continued for several weeks. But on 20 November 2020, Numsa notified Trenstar that it decided to suspend its strike and its members would return to work on 23 November 2020. However, the union also indicated that it had not withdrawn its demand (which was the cause of the strike). After receipt of this notification Trenstar gave 48 hours' notice of its intention to lock out all Numsa members. On 23 October 2020, Trenstar proceeded to lock out Numsa's members and made use of replacement labour. The legal issue that had to be decided was whether an employer may institute a lockout when, at the time it was instituted, employees had already suspended their strike. The right to make use of temporary (‘scab’) labour as provided for in the LRA applies only when the use of temporary labour is in response to a strike (defensive lockout). The Labour Court and the Labour Appeal Court both held that the Trenstar lockout was a defensive lockout entitling the employer to make use of temporary labour. The ConCourt differed in its approach and upheld Numsa's appeal by finding that Trenstar could not lawfully make use of temporary labour as at the time that the lockout actually began, Numsa's members were not on strike. The Court reasoned that suspending a strike merely meant that the employees did not waive their unconditional right that previously accrued to them to strike. However, it did not mean that they continued to strike. July points out that the Numsa decision was simply an issue of the timeline. He write that the decision did not detract from the employer's ability to make use of temporary labour. Read the full original of the piece in the above regard by Sandile July at Fin24
Ask Gordhan for name of politician implicated in Eskom graft, De Ruyter tells MPs Moneyweb reports that the former CEO of Eskom, André de Ruyter, has refused to name the high-ranking minister whom he alleged was involved in corruption at the utility, arguing that the question should be directed to Minister of Public Enterprises, Pravin Gordhan. “The best way forward, I would suggest, is to ask minister Gordhan,” De Ruyter told Parliament’s Standing Committee on Public Accounts (Scopa) on Wednesday. De Ruyter, who appeared before MPs via virtual link to shed light on corruption claims at the state-owned power utility, said he had divulged the identity of the minister concerned to both Gordhan and national security advisor, Sydney Mufamadi. “The main findings were shared with these two officials … I think that discharged my duty to report [further],” he said. De Ruyter added that he had reported the matter to a senior official of the SA Police Services (SAPS) and to the State Security Agency (SSA), giving “sufficient credence” that he extensively engaged law enforcement authorities to ensure appropriate steps would be taken. During an interview with eNCA in February, De Ruyter criticised the commitment of government officials to fixing SA’s power crisis when he alleged that corruption at the stricken utility was deeply entrenched. He alleged that Eskom was at the time losing roughly R1 billion a month to corruption. Read the full original of the report in the above regard by Ntando Thukwana at Moneyweb. Lees ook, De Ruyter se verskyning voor Skoor lewer ‘niks nuuts’, by Maroela Media De Ruyter suggests corruption behind New Largo coal mine delay from which road transporters of coal and rock benefited BL Premium reports that former Eskom CEO André de Ruyter told MPs on Wednesday that the decade-long delay in the opening of the New Largo coal mine in Mpumalanga was probably the result of corrupt dealing by those with an interest in the delivery by road of poor quality coal to the Kusile power station. The delay meant that Kusile has had to rely on large quantities of coal from smaller mines being trucked by road into the station, instead of transporting it by conveyor belt from the nearby New Largo deposit for which the power station was built. De Ruyter, who appeared before parliament’s standing committee on public accounts to answer questions about his allegations of corruption at Eskom, was questioned about the mine. The former CEO said: “The delay in commissioning New Largo I think can in all probability be attributed to the fact that there were beneficiaries of coal being transported by road and there is ample evidence that the quality of coal that was delivered to Kusile was below standard and that Kusile was significantly exposed to the consequences of poor quality coal being delivered in terms of reliability.” New Largo, originally owned by Anglo American, is the closest coal mine to Kusile and has significant reserves of the right quality. But a deal between Anglo and Eskom to develop the New Largo mine was halted during the tenure of the then public enterprises minister Malusi Gigaba a decade ago and there has been little progress since. Anglo sold the mine to Seriti Resources some years ago. Seriti’s Linda Khuluse indicated on Thursday” “Albeit delayed, Seriti is in the process of concluding various 10-year coal supply agreements with Eskom which will provide Kusile power station with cost-competitive security of coal supply from the adjacent colliery at the necessary specifications. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only) Former finance manager at Eskom’s Kriel power station sentenced for fraud eNCA reports that a Mpumalanga court has sentenced former Eskom power station finance manager Sifiso Masina to eight years for fraud and theft. The court also declared him unfit to possess a firearm. The sentence was suspended for five years on condition that Masina was not found guilty of the same crime again. He was also ordered to pay over R500,000 lost by the power utility. Masina facilitated payments to two companies owned by his mother, without services having been rendered. At the time Masina had been finance manager at the Kriel Power Station in Mpumalanga Read the original of the short report in the above regard at eNCA. Lees ook, Voormalige Eskom-geldbestuurder gevonnis vir bedrog, by Maroela Media Other internet posting(s) in this news category
Former Northern Cape cop found guilty of tipping off criminals about planned police operations News24 reports that a former Northern Cape SA Police Service (SAPS) officer has been found guilty of sharing confidential details of planned police operations with criminals. On Tuesday, 42-year-old Sebastian Johnson was convicted of defeating the ends of justice in the Kimberley Regional Court. Northern Cape Hawks spokesperson Captain Tebogo Thebe said Johnson’s illegal activities came to light in April 2021 when the Hawks conducted an operation to arrest members of a drug syndicate. The team discovered confidential pictures of the planned operation's documents on the cellphones of the arrested suspects. “Johnson, who was a South African Police Services (SAPS) employee at the time, was arrested after evidence obtained fingered him as the mole who worked with criminals by tipping them off on upcoming operations. He was dismissed after SAPS's expedition disciplinary process took place in December 2021," Tebogo reported. The case was postponed to 1 June 2023 for sentencing. Read the original of the short report in the above regard by Iavan Pijoos at News24. Lees ook, Mol in polisie skuldig dat hy boewe help, by Maroela Media Other internet posting(s) in this news category
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