In our Friday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Eskom predicts minimum of Stage 5 for most of winter, 'extremely high' chance of Stage 8 over July and August News24 reports that Eskom anticipates a minimum of Stage 5 load shedding for most of the winter, but trends show there is a strong possibility of Stage 8 over July and August. Stage 8 load shedding means consumers will be without electricity for 16 hours in a 32-hour cycle. Eskom presented its winter plan on Thursday, forecasting the load-shedding outlook based on seasonal patterns of demand and the likely performance of the plant and the extent of the plant breakdowns. Eskom chairperson Mpho Makwana said: “With the winter season upon us, our power system will be even more constrained. Weather forecasters are anticipating a much colder winter season. There are clear patterns of weather change in our country. And these challenges will result in high electricity demand. Load shedding is implemented by the national system operator, managing the power system to mitigate the probability of total country-wide blackout.” Head of generation Bheki Nxumalo said SA was entering "an extremely, extremely difficult period". Acting CEO Calib Cassim told the briefing: “It will be a difficult winter. We have 3,000MW less capacity than last winter with the loss of Kusile units 1 to 3 and one unit of Koeberg. The focus must be on the performance of the general fleet, but if unplanned outages reach 18,000MW, then the likelihood of Stage 8 is extremely high. But we are confident it will not occur, because of the interventions we have put in.” While Eskom believes it has put interventions in place to reduce breakdowns, this has not yet been reflected in the numbers, with the energy availability factor (EAF) – the proportion of the plant able to dispatch power – continuing downward at 53%. Read the full original of the report in the above regard by Carol Paton at News24. Read too, Likelihood of stage 8 load-shedding ‘extremely high’, says Eskom, at BusinessLive (subscriber access only). En ook, Fase 8-beurtkrag die winter tóg moontlik, by Maroela Media
Finance Minister says public sector wage hikes have painted state into fiscal corner BL Premium reports that Finance Minister Enoch Godongwana told MPs on Tuesday that the macrofiscal position presented in his February budget had changed “adversely and significantly” and the “risks into the future remain high”. A major contributor was the higher than expected public sector wage increase agreed to with trade unions earlier this year. High inflation has also increased the government’s borrowing costs. Godongwana said in a speech on the Treasury budget vote that headcounts in the public sector would have to be restricted in a bid to save R37.4bn and cushion the blow of the wage agreement on the fiscal framework. In terms of the two-year deal, government employees got a 7.5% increase for the first year, which started on 1 April, to be followed by an increase in line with consumer price inflation for the second year. In practice the first year’s increase was just 3.3% because it wrapped in the two-year-old R1,000 monthly cash gratuity, which the government had intended would fall away once a new settlement was signed. But, the agreed increase is still much higher than the 1.6% for 2023/24 envisaged in Godongwana’s February budget. Godongwana told MPs: “Simply put, as I indicated in the budget speech, a higher-than-budgeted wage agreement means less space for the recruitment of staff. The Treasury is working with the department of public service & administration [and] the provinces, to co-ordinate the process of identifying ways of restricting headcounts, among others, so that the ... wage increase can be recouped.” Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)
Salaried South Africans are poorer as monthly income lags inflation BL Premium reports that the latest BankservAfrica report released this week shows how the challenging economic environment in SA has negatively affected salaries since 2018. According to the five-year take-home pay report, the average salary in SA has weakened as a result of the underperforming economy, high unemployment rate, soaring inflation and the effect of the Covid-19 pandemic. The report shows that average nominal salary grew from R12,573 in February 2018 to R15,438 in February 2023, showing growth of 22.8%. “In contrast the consumer price index (CPI) increased by 26.6% over the same period, confirming that nominal take-home pay has lagged on developments in inflation,” BankservAfrica’s Shergeran Naidoo indicated. Even though the nominal take-home pay kept up with inflation between 2018 and 2021, the trend took a turn for the worse in 2022. Economist Elize Kruger, who compiled the report, stated: “Nominal average take-home pay stagnated, falling behind the rising cost of living.” She added that companies have indicated a shift from potential expansion and investment to becoming less dependent on Eskom, and have redirected capital earmarked for investment towards self-sufficiency. “This conservative survival approach is not conducive to employment growth in SA, and also keeps a lid on salary increases,” she pointed out. Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only). Read too, South African real salaries declined in the past five years, at News24. En ook, Salarisse hou nie meer by met inflasie, by Maroela Media
More than 1,100 contract staff have not been paid, Gauteng health department confirms TimesLive reports that the Gauteng health department says it is processing the salary payments of more than 1,100 doctors, nurses and other healthcare workers after not paying them for more than six weeks. This followed an outcry by the Democratic Alliance (DA) and the Democratic Nursing Organisation of SA (Denosa) on Thursday regarding glitches that affected Covid-19-contracted employees. Department spokesperson Motalatale Modiba confirmed that contract employees at various facilities had experienced delays in the payment of their May salaries. “The payment is expected to be made within two weeks. [A total of] 1,145 employees are impacted and have been engaged through the facilities where they are stationed. The affected nurses and doctors had to be onboarded as new appointments meaning a recruitment and selection process had to be followed in appointing them,” Modiba said. The department apologised for the inconvenience. Jack Bloom, a DA member of the Gauteng legislature, said the situation was unacceptable: “As usual, they blame administrative issues, but it is unacceptable that workers have to suffer for so long without payment.” Mbali Sabela, provincial secretary of Denosa, said the matter reflected badly on the department. Read the full original of the report in the above regard by Kgaugelo Masweneng at TimesLive
Unemployment rate slightly higher at 32.9% in first quarter, even as SA created jobs Fin24 reports that the official unemployment rate increased by 0.2 of a percentage point to 32.9% in the first quarter of 2023 in comparison with the fourth quarter of last year. The unemployment rate, according to the expanded definition, which includes people who were available for work but not looking for a job, decreased by 0.2 of a percentage point to 42.4%. Statistics SA’s Quarterly Labour Force Survey (QLFS), released on Tuesday, showed that the number of unemployed people increased by 179,000 to 7.9 million. The agency noted that prior to the national lockdown, unemployment had always increased in the first quarter of each year since the survey's inception. This was due to school leavers and students entering the market. This year, the workforce grew by 437,000 people, with some 232,000 learners and students entering the market. The youth unemployment rate in the first quarter increased by 1.1 percentage points to 46.5% . The unemployment number also increased because previously discouraged work-seekers were now trying to find jobs and were now classified as "unemployed" instead of "not economically active". Overall, the number of employed persons increased by 258,000 to 16.2 million in the first quarter of 2023. Total employment was still below pre-Covid levels, but it was at least trending upwards, Nedbank's economic unit commented. Both the formal and informal sectors recorded increases in employment of 209,000 and 107,000, respectively. Finance, community and social services, and agriculture created the most jobs. But there were fewer positions in private households as well as small decreases in trade, mining, construction and manufacturing. Read the full original of the report in the above regard compiled by Helena Wasserman at Fin24
Cosatu calls for a ‘capable mayor’ to lead Johannesburg metro BL Premium reports that labour federation Cosatu has called for a “capable mayor” to be appointed in the Johannesburg metro, only days into Al Jama-ah councillor Kabelo Gwamanda’s role as the city’s first resident. In a statement, Cosatu Gauteng chair Amos Monyela and provincial secretary Louisa Modikwe expressed concern over the metro’s leadership instability, saying: “Since September last year, the council has been a political battlefield where the interests of parties have succeeded the interests of the residents." They took issue with the metro having been “tussled and used as a cheap weapon leading to the constant reinstatement of mayoral candidates who hold the position only to be removed less than a quarter down the line”. Since the 2021 municipal elections did not produce clear winners in the Gauteng metros of Joburg, Ekurhuleni and Tshwane, they been governed by coalitions, which political pundits maintain are more about positions than service delivery. Ructions in the Joburg council started on 1 September with the removal through a no-confidence vote of DA councillor Vasco da Gama as council speaker. He was replaced by lone COPE councillor Colleen Makhubele. On 30 September, DA councillor Mpho Phalatse was removed as executive mayor through a no-confidence vote and replaced by ANC caucus leader Dada Morero. However, Phalatse successfully challenged her removal in court on 25 October. In January, however, Phalatse was again successfully voted out through a motion of no confidence and replaced by Al Jama-ah councillor Thapelo Amad, who resigned on 24 April, a day before he was due to face a no-confidence motion. Amad was replaced by his fellow counterpart, Gwamanda on 5 May. Gwamanda is facing allegations of scamming people into investing in an illegal investment/funeral scheme and his qualifications have also come under scrutiny. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
UIF warns public of latest scams on social media IOL reports that the Unemployment Insurance Fund (UIF) has issued warnings to its clients and the wider public about new scams gaining traction on social media. The Fund said in the latest message that was circulating, scammers were claiming that an amount of R21,785 was ready to be paid out, but this could only be done once a person had paid them a “UIF registration and clearance” amount of R298.67. “Applying for UIF benefits is a free service, and the fund will never require a client to pay for fast-tracking a claim,” UIF said. To fight the scam, UIF advised that it had introduced a payment verification process before money was released into the bank accounts of claimants. “This step has been introduced to prevent fraudulent claims. The verification process will unfortunately delay the release of payment into claimant’s bank account with five or 10 days after the payment is approved. However, we wish to assure claimants that efforts are made to fast-track this process so that they won't have to wait for too long,” UIF said. Earlier, the Department of Employment and Labour warned the public to be vigilant about yet another scam titled “youth employment programme”. In it, scammers promised to reward participants in the so-called programme with ridiculous stipends. But, before this could happen, a potential participant had to pay a deposit fee at one of the retailers and also furnish personal details. Read the full original of the report in the above regard by Brenda Masilela at IOL Other internet posting(s) in this news category
Labour department questions employment equity compliance at Truworths, TFG and Barloworld Moneyweb reports that retailers Truworths and TFG and as well as industrial firm Barloworld are among the companies under the Department of Employment and Labour’s (DEL’s) scrutiny for allegedly failing to comply with employment equity laws. According to DEL’s chief director of statutory and advocacy services, Fikiswa Mncanca-Bede, the areas of non-compliance in the cases of TFG and Barloworld are the overrepresentation of white males and females at senior and professionally qualified levels. At Truworths, she alleges, white males are overrepresented at top management level, while there is a general lack of implementation of affirmative action measures as required by Section 20 of the Employment Equity Act (EEA). The DEL intends to take legal action against these companies and will apparently the courts to impose fines of R1.5 million or 2% of turnover. “We want to warn employers to take matters of employment equity [seriously]. If they think compliance is expensive let them try non-compliance,” Mncanca-Bede said. Yet, Truworths asserted that it was fully compliant with the EEA and was engaging with the DEL in a director-general review process. “We have complied with all the requirements of the process and implemented the recommendations made by the department,” Truworths added. TFG said it had not received a verdict of non-compliance, but a confirmatory notice, which reflected that the company’s planned employment equity numerical targets for the years needed to be revised. “The company has engaged the Department and, on their advice, has resubmitted our plan and are awaiting feedback,” the company advised. According to Barloworld, its equipment business in SA has not received a verdict of non-compliance from the DEL. The group added that it was making strides in achieving its long-term plan to have its workforce reflect the same level of diversification of SA’s economically active population. Read the full original of the report in the above regard by Ntando Thukwana at Moneyweb Other internet posting(s) in this news category
‘Decay and rot’ in Unisa exposed through report, says vindicated Nehawu TimesLIVE reports that the National Education, Health and Allied Workers’ Union (Nehawu) wants Unisa’s vice-chancellor Prof Puleng LenkaBula removed after an independent assessor report found governance problems and procurement irregularities at the institution. The report, which looked into the state of affairs at the university and was compiled by Prof Themba Mosia, was completed last week and presented to Minister of Higher Education Blade Nzimande. The probe commenced in 2022 amid Nehawu’s calls for the vice-chancellor to be suspended over allegations of irregular expenditure in the refurbishment of her university residence. Nehawu general secretary Zola Saphetha said the union was not surprised by the findings. “The report has exposed the decay and rot in the institution, which is characterised by maladministration, financial irregularities, human resources failures, fragile and troubled ICT environment, poor student services, academic malpractices, culture of fear, intimidation and bullying, questionable management and council decisions, among others,” Saphetha stated. Mosia made 26 recommendations, including that Unisa be placed under administration and the council and management be relieved of their duties. The university is expected to make a public statement on the contents of the report soon. Nzimande is also set to table the report in parliament and make announcements on his decisions regarding the university's governance. Read the full original of the report in the above regard by Sinesipho Schrieber at BusinessLive. Read too, Report commissioned by DHET recommends Unisa be placed under administration, at EWN
Setback for Absa in bid to block Sipho Pityana accessing record of decision regarding his removal from board Fin24 reports that the North Gauteng High Court has dismissed Absa's application to block Sipho Pityana from accessing the record of decision regarding his removal from the bank's board. Pityana, in a notice of motion regarding a legal review of his removal by Absa in November 2021, called upon the bank to dispatch a record of decision. Absa, in turn, lodged an application to declare any review of the board's decision an "irregular step" and for the application to be set aside. In its judgment on 10 May, the court noted that Absa claimed the record was "confidential or privileged", yet found that the bank had failed to make a case. This ruling paves the way for Pityana to approach the court to compel Absa to hand over relevant documents. Noting that the court decided that his application to request the information was appropriate, Pityana pointed out that the record of decision was necessary for the review application. "I and the court, have to have a copy of that, so that I can make my submission and say, 'These are the things about their decision that I am objecting to'. I cannot present that without the benefit of the record," he argued. A date has not yet been set for the review. Pityana was dismissed by the Absa board after it decided that he had pursued his own personal interests to the bank's detriment. This all stemmed from issues around Pityana's resignation as AngloGold Ashanti chairperson in December 2020. It emerged that Pityana had faced sexual harassment allegations while he chaired the gold producer. Pityana has denied these allegations. He has also launched a separate legal challenge against the Reserve Bank's Prudential Authority, which he alleges interfered with his appointment as Absa board chairperson. Read the full original of the report in the above regard by Lameez Omarjee at Fin24
Cape Town's Central Line to reopen in December, but only if railway shack dwellers relocate News24 reports that the Passenger Rail Agency of SA (Prasa) has indicated that Cape Town's problematic Central Line will be reopened in December. However, this will depend on whether the shack dwellers who have occupied parts of the railway line relocate or not. The Central Line between Nyanga and Cape Town has been closed for about three years, after people built shacks on the railway line. The line is only partially running, between Nyanga and Maitland, because negotiations are continuing regarding the relocations. Delivering her budget vote in parliament on Wednesday, Transport Minister Sindi Chikunga indicated: "The full recovery of the Central Line in Cape Town remains our top-most priority." The minister indicated that there was cooperation between the national and the Western Cape departments of human settlement, the Housing Development Agency (HDA) and the City of Cape Town to relocate the illegal settlements on the rail reserve. Meantime, Prasa has also indicated that it was on track with its 'station restoration' programme along the Central Line. Contractors are apparently on site, and they are making good progress in rebuilding the stations to a serviceable condition. Read the full original of the report in the above regard by Marvin Charles at News24 Other internet posting(s) in this news category
Cosatu pays tribute to trade unionist Dr Dennis George, who passed away on Monday IOL reports that Cosatu has paid tribute to late, former trade unionist and activist Dr Dennis George, who passed away on Monday evening. The trade union federation said George, who grew up in the streets of the Cape Flats, became a key leader in the trade union movement and other sectors of society. It said that George led from the front during his time as a leader in the trade union movement and added that George had played an instrumental role in shaping the labour market arena after the 1994 elections. George had been the general secretary of the Federation of Unions of SA (Fedusa) for many years. Cosatu said: “Comrade Dennis George was a major figure in the trade union movement and was deeply respected by all. He was not afraid to express and stand by his views and fearlessly led his members to battle exploitative employers. It added: “He (George) was a reliable partner at Nedlac, endeavoured to work closely with Cosatu and other trade union federations, always fostered worker unity, and believed in building bridges with other social partners to fix South Africa’s problems.” Read the full original of the report in the above regard by Siyabonga Mkhwanazi at IOL
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