In our Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Government’s wage deal in March will reduce staffing levels, health minister warns BL Premium reports that Health Minister Joe Phaahla told MPs on Tuesday that the government’s recent wage settlement with public servants will make it harder to fill posts. The two-year wage deal will cost the government an extra R23bn above the allocation set aside in the February budget, meaning provincial health departments will have to find the extra money promised to their employees by shifting funds from other programmes. When the agreement was signed at the end of March, the Treasury warned it would entail trade-offs such as delaying projects and restricting recruitment. “We are concerned that the salary agreement is expected to be funded from savings, meaning a reduction in head counts,” said the minister as he delivered his budget vote speech in parliament. The wage agreement came against the backdrop of a health budget that was already set to shrink in real terms over the medium-term. The budget will grow by a nominal 2.7% in terms of the medium-term expenditure framework, while Treasury estimates that inflation will come in at 5.3% this year, 4.9% in 2024 and 4.7% in 2025. Phaahla appealed to MPs to support the NHI Bill, which is currently before parliament’s portfolio committee on health. MPs on the committee are expected later this week to consider different legal opinions on the bill received from the office of the state law adviser and parliament’s legal advisors. “The NHI Bill, which is currently in your hands is simply an instrument for the realisation of the goal of equity,” Phaahla stated. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only). Read too, Health department underfunded by minimum of R11bn, Phaahla believes shortfall could be higher, at News24 Parliamentary report shows government debt growing due to 'bloated public payroll' News24 reports that the public sector wage bill remains the government's biggest expenditure, having grown by about 40% in real terms over the past 14 years. In a report of the National Assembly's Portfolio Committee on Public Service and Administration on the Department of Public Service and Administration's annual performance plan and 2023/24 budget, the committee noted that the cost was increasing rapidly. The report indicated: "One big negative consequence of the bloated public payroll is that the government is having to increase its borrowing to sustain its salary payments.” The committee noted that the department had conducted a review of personnel expenditure to inform the development of a remuneration policy framework for the public service. The terms of reference were developed and relevant stakeholders were engaged in 2022/23. A suitably qualified service provider was appointed in 2022/23 to review and analyse the framework and provide recommendations for improvements or alternative arrangements. MPs also found that the department was in the process of establishing a project management office tasked with introducing reforms, which could help build a capable, ethical and developmental state while managing the wage bill. According to the committee's report: "Five work streams have been identified on the management of the wage bill and consolidation of bargaining councils; human resource planning and development; the professionalisation of the public service; the consolidation of medical aid schemes and public sector pension funds; and productivity measurement.” . Meantime, over the medium-term, the department intends to continue to monitor and track the implementation of collective bargaining resolutions in order to enable it to resolve implementation issues before they develop into disputes. Read the full original of the report in the above regard by Jason Felix at News24 National Health Insurance will get R8.8 billion over the next three years, but without a costing model News24 reports that while the controversial National Health Insurance (NHI) plan has been operating mostly under the radar, the government will be pumping a whopping R8.8 billion into the ambitious plan over the next three years. A report by parliament’s health portfolio committee on the department of health’s budget and annual performance plan indicates that the phased implementation of the NHI will continue. "Over the MTEF (medium-term expenditure framework), R8.8 billion is allocated for NHI activities – the National Health Insurance Indirect Grant is allocated R6.5 billion [and] R2.1 billion is allocated to provincial health departments through the direct National Health Insurance Grant,” the report advises. "This will be used for contracting primary health care doctors, and mental health and oncology service providers. R174.2 million is earmarked for capacitating the department's National Health Insurance unit and building its health technology assessment," the report informs. Regarding implementation of the NHI service, the committee noted the following: “The department is still in the process of developing and implementing the Electronic Health Record (EHR), which will collate all the patient’s health data and information into one digital record, providing complete and up-to-date information at the point of care.” But, the committee noted with concern that the costing model for the NHI was still outstanding. Funds had been allocated to the department for NHI, but the National Treasury had not engaged the committee about the costing model. Previously, several civil society organisations had raised concerns with the implementation of the NHI. Read the full original of the report in the above regard by Jason Felix at News24 (subscriber access only)
Above-inflation ‘real’ increases in national minimum wage rate targeted Fin24 reports that on Monday, the National Minimum Wage Commission gazetted a new medium-term target for the minimum wage, fulfilling a legislative requirement for such a roadmap. The plan had been to consider the national minimum wage (NMW) in terms of living standards and link it to wages in general, so that those earning the minimum wage would, at the very least, not fall behind increases in pay across the economy. But the commission has now explicitly linked the target to the consumer price index (CPI), saying it will increase the minimum wage gradually in real terms. The target is still also linked to other wages, as well as to living standards, as had been the plan in December – but with a change in priority. The full, final medium-term target for the NMW reads as follows: “All wage-earning workers should earn a wage sufficient to maintain a decent standard of living, defined as sufficient to support themselves and their families at a level that is both socially acceptable and economically viable. The target will ensure that the value of the national minimum wage does not decline relative to the median wage. To achieve this target, the Commission will increase the value of the minimum wage gradually over time in real terms (that is, relative to CPI).” In February, Labour Minister Thulas Nxesi decreed a 9.6% increase in the NMW, to R25.42 per hour, well ahead of annual inflation of 6.9%. The increase, effective from March, saw full-time domestic workers earn at least R4,000 per month for the first time. However, people employed in the government's expanded public works programme (EPWP) system may be paid as little as R13.97 per hour, or roughly 55% the minimum wage for everyone else. Read the full original of the report in the above regard by Phillip de Wet at Fin24
De Ruyter only submitted Eskom corruption report to law enforcement authorities shortly before his Parliament appearance Fin24 reports that former Eskom CEO André de Ruyter only submitted a report to law enforcement authorities on corruption at the utility the day before he appeared in Parliament in April, and long after he had resigned from the company. This was indicated to MPs on Tuesday by Directorate for Priority Crime Investigation (Hawks) head Godfrey Lebeya. A public official is required by the Prevention and Combatting of Corrupt Activities Act (Precca) to report evidence of corruption that involves amounts greater than R100,000. And, following a controversial television interview De Ruyter gave in February in which he alleged that senior politicians were involved in corruption at Eskom, both the Hawks and the Special Investigating Unit reached out to him requesting an interview, but the former CEO did not respond. Parliament's Standing Committee on Public Accounts (Scopa) was hearing evidence from the SA Police Service, the Hawks and the Special Investigating Unit on Tuesday on their response to De Ruyter's allegations and his decision to institute a private investigation at Eskom. On 26 April, De Ruyter refused to tell Scopa the identity of a "senior politician" who was implicated in corruption at the power utility, citing security risks and the possibility of legal action against him. But, De Ruyter did claim that he had reported the suspected criminal activity as a legal duty in terms of the Precca. Read the full original of the report in the above regard by Carol Paton at Fin24. Read too, Hawks head says De Ruyter is a ‘suspect’ for not reporting alleged Eskom graft, at Mail & Guardian (subscriber access only) SIU wants answers about De Ruyter's use of private intelligence at Eskom TimesLive reports that the Special Investigating Unit (SIU) wants the use of a private intelligence operation by former Eskom CEO Andre de Ruyter to be investigated. SIU head Andy Mothibi told parliament’s standing committee on public accounts (Scopa) on Tuesday that part of the unit's mandate was to investigate maladministration and malpractice and “among others, it is in our interest to seek certain clarifications and answers to certain questions in terms of what has transpired”. De Ruyter told Scopa last month that Eskom had not only contracted private security to investigate coal theft and tampering, but overt and covert surveillance and intelligence gathering had been put in place. He claimed that as a result of an intelligence-led operation, significant information had been gathered on the extent of organised crime in Eskom, particularly in Mpumalanga. De Ruyter said: “The findings of this investigation have been extensively shared with senior officers in the SAPS, in compliance with reporting obligations, and co-operation with the SAPS is continuing.” But police, Hawks and SIU bosses denied any knowledge of an intelligence report. Mothibi said the SIU had a number of questions it needed answers to, including why Eskom would appoint a private investigating company when the allegations could have been referred to the SIU, to the Hawks or State Security Agency for investigation. It was also confirmed during Tuesday’s meeting that national police commissioner Gen Fannie Masemola and police top brass met De Ruyter twice in June and July 2022 to talk about criminal activity at Eskom. According to the police, De Ruyter did not specify any incidents or allegations but made general remarks about corruption, especially in procurement. Read the full original of the report in the above regard by Andisiwe Makinana at TimesLive. Read too, Bheki Cele left puzzled by R2bn spent by Eskom on internal security, at IOL. And also, De Ruyter: I told the police more than I said in TV interview, at Mail & Guardian (subscriber access only) Justice Minister Lamola says 18 superior courts have generators to keep going BL Premium reports that Justice & Correctional Services Minister Ronald Lamola says 18 superior courts, including the Supreme Court of Appeal, high courts and the Constitutional Court, have had generators installed to mitigate against load-shedding. Lamola, who was presenting the Office of the Chief Justice’s budget in the National Assembly on Tuesday, said equipping magistrates’ courts with generators was also ongoing. However, the DA’s Glynnis Breytenbach said Lamola had “failed ... dismally” in combating load-shedding. “Too many courts ... are unable to function for a full court day, or sometimes at all. Particularly hard hit in this regard are the courts in smaller towns and centres, where the majority of South Africans must go to access justice,” she complained. Breytenbach said it was a “disgrace” that cabinet members were protected by generators, but essential services such as courts were not. She also expressed “deep concern over Lamola’s lack of support” for the Office of the Chief Justice. This had resulted in a lack of appointments to vacant judicial positions, leading to “delays in the resolution of cases, and denying justice to many South Africans”. Courts were also underresourced, lacking not only judges, but also staff and infrastructure. The budget Lamola tabled comprised R1.3bn for voted funds and “a further direct charge to the National Revenue Fund” of R1.125bn for judges’ remuneration. Read the full original of the report in the above regard by Tauriq Moosa at BusinessLive (subscriber access only). Lees ook, Appèl teen beurtkrag-uitspraak ‘verraai’ SA’ners, by Maroela Media Other internet posting(s) in this news category Eskom expected to implement up to Stage 10 load shedding this winter, at Business Report Kgosientsho Ramokgopa denies grid is facing imminent collapse, at IOL Eskom working on interventions to return Medupi to service sooner than expected, says Ramokgopa, at Business Report Mantashe: Release of new-look electricity infrastructure plan is imminent, at Fin24
As it gears up for growth, Karooooo looking to employ 2,000 more people over next few years Fin24 reports that Karooooo, the owner of Cartrack, says that not only has load shedding failed to derail a decade of double-digit subscriber growth in SA, it is also looking to employ another 2,000 people in the country over the next few years. SA's biggest vehicle tracker was still benefiting from its customers' pursuit of efficiency and competitive advantage, CEO Zak Calisto said on Tuesday. It was also yet to fully leverage its massive data pool on vehicle activity to benefit its growth businesses, vehicle-trading business Carzuka, and Karooooo Logistics, he indicated. The company, valued at about R13 billion on the JSE, reported on Tuesday that subscribers in its core Cartrack business grew 13% to over 1.7 million in its year to end-February, with its attributable profits up a third to about R600 million. The company is also eyeing as many as 2.1 million subscribers for its 2024 year, which would represent growth of 23.5%. Calisto said the group was looking to add about 300 people in SA in its 2024 year, and about 2,000 over the next few years. It has recently put R72 million towards developing its new central SA office in Rosebank, Johannesburg. Singapore-headquartered Karooooo, which was founded by Calisto in 2001, started off as a vehicle track-and-trace company and listed on the JSE in 2014. It now employs about 3,900 staff, and services have grown to include software mobility solutions for fleets and insurance analytics, security and safety for commercial customers. Read the full original of the report in the above regard by Karl Gernetzky at Fin24 (subscriber access only) Other internet posting(s) in this news category
Numsa slams expelled Saftu president over 'pack of lies' about union leadership City Press reports that the National Union of Metalworkers of SA (Numsa) has come out guns blazing, accusing its expelled member, SA Federation of Trade Unions (Saftu) president Ruth Ntlokotse, of misconduct and spreading lies regarding her expulsion. This comes after Ntlokotse was expelled from the union last Thursday following a disciplinary inquiry last month that Ntlokotse failed to attend. Ntlokotse was charged with misconduct and the hearing recommended expulsion with an option to appeal within seven days of the expulsion. The union’s national executive committee (NEC) endorsed the recommendation and moved to expel her on Thursday. “The Union is dismayed by the pack of lies that she (Ntlokotse) decided to unleash in the media interview about the leadership of Numsa. She has presented it as corrupt, and she has been agitating against the union leadership,” said Numsa in a statement released on Monday. Numsa was alluding to television appearances in which Ntlokotse claimed that her expulsion did not stem from the charges against her, but the union’s animosity against her questioning of its financial mismanagement. “The agenda here is to create the false impression that Numsa NOBs (national office bearers) are a law unto themselves and are squandering workers' money. This is false. We do not have such money in our books, and her goal is to liquidate the union by lying,” Numsa said. Read the full original of the report in the above regard by Noxolo Majavu at City Press (subscriber access only)
Pension fund adjudicator cracks down on companies that ‘fiddled’ with Covid contribution concessions Sunday Times Daily reports that the Office of the Pension Funds Adjudicator (OPFA) has taken a firm stance against employers that fiddled with provident fund contributions during a Covid concession period. The Private Security Sector Provident Fund amended its rules to allow employers to pay contributions at a lower rate (5%) from September 2021 to March 2023. In a statement on Tuesday, adjudicator Muvhango Lukhaimane said, however, that some opportunistic employers had been deducting higher amounts from employee salaries while remitting a lower amount to the fund. Others had continued to remit the lower rate even after the concession period had passed. Lukhaimane, in considering one complaint, ordered Bamogale Enterprise to pay the fund all the arrear contributions, including interest, as computed by the fund. This after finding that it had deducted a higher amount from one employee’s salary, while paying a lower amount to the fund. Lukhaimane reported that the employee concerned, after checking his contribution statement, had noticed that the company had deducted R342.53 from his salary but had only contributed R228.35 to the fund. The OPFA is a statutory body established to investigate and determine complaints of abuse of power, maladministration, disputes of fact or law and employer dereliction of duty in respect of pension funds. Read the full original of the report in the above regard by Tania Broughton at Sunday Times Daily (subscriber access only)
Newly appointed SA Tourism acting CEO Nomasonto Ndlovu implicated in bribery allegations Business Report writes that the newly appointed SA Tourism acting chief executive Nomasonto Ndlovu has been implicated in bribery allegations. This after a whistle-blower called the SA Tourism hotline to report that Ndlovu had allegedly accepted a R100,000 bribe from Qatar Airlines for flights in business class, accommodation, and World Cup tickets. According to the caller, the alleged incident happened on 6 and 7 December 2022. The allegations were then investigated by audit firm KPMG. SA Tourism chairperson Tim Harris reported: “As incoming board members, we are awaiting a full briefing from the acting Chief Audit Executive, including a report on the whistle-blower hotline.” Ndlovu replaced SA Tourism’s former acting CEO, Themba Khumalo, who resigned last week with immediate effect as the organisation’s chief marketing officer and acting CEO. Khumalo's resignation came after the organisation was thrust into the spotlight over a R1 billion sponsorship deal with English Premier League club Tottenham Hotspur, which was slammed by the public in February. Khumalo left following an exodus of several SA Tourism board members. Read the full original of the report in the above regard by Dieketseng Maleke at Business Report
Businessman 'tortured' by cops trying to link him to murder of Fort Hare vice-chancellor’s bodyguard City Press reports that an Eastern Cape businessman, Collins Heshula, has lodged a complaint with the Independent Police Investigative Directorate (Ipid) after he was allegedly kidnapped and tortured by 14 members of the police. He opened the case at Inyibiba Police Station in Mdantsane, Eastern Cape, on 3 May. He said the police, who were in uniform, allegedly forcefully kidnapped him on 23 April at around 11pm with no arrest warrant. They allegedly handcuffed, blindfolded and drove him from Alice to Mdantsane Police Depot near Fort Jackson. Heshula claimed: “They undressed me and tied my hands and feet, while three of them sat on top of me.” He alleged an officer used a zip plastic bag to suffocate him and demanded information about who the killers of Mboneli Vesele, the late bodyguard of the University of Fort Hare vice-chancellor, Professor Sakhela Buhlungu, were. Vesele was shot dead outside Buhlungu’s residence in January in what the university deemed as an attempt on the vice-chancellor’s life. Heshula said he was asked who planned the assassination. The torture, Heshula said, in which they banged his head repeatedly on the wall and kicked and choked him, went on for two hours. A medical report dated 28 April details that Heshula sustained a head injury on top of the head, loss of memory and seizures at times. His injuries included injuries on the right shoulder, forearm and left wrist. Others were internal chest injuries, swollen ankles and multiple bruises on the back. "The case is being investigated as an assault," Ipid spokesperson Robbie Raburabu indicated. Read the full original of the report in the above regard by Msindisi Fengu at City Press (subscriber access only)
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