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 roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 19 May 2023.
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Ramaphosa loses confidence of SA business over policy missteps and myriad unaddressed problems Bloomberg News writes that President Cyril Ramaphosa has lost the confidence of the key business constituency. Five years after ushering in a wave of business optimism that he would revive an economy hobbled by industrial-scale corruption under his predecessor, executives are running out of patience with the 70-year-old leader. Economic stagnation spawned by record daily power outages, rampant crime, disintegrating infrastructure and foreign policy missteps are leading investors to the exits, with the rand fast-approaching a record low. Business leaders raised their concerns in discussions with Deputy President Paul Mashatile in a meeting on Friday night. "They urged the government to work with a greater sense of urgency in attending to the energy crisis, crime and corruption, and processing of applications relating to statutory obligations hindering their ability to conduct business effectively," the Presidency reported. Meantime, opposition parties have levelled manifold accusations against Ramaphosa. He is said to be overseeing a bloated executive that includes several ministers who have proven inept or corrupt, but are retained because of their political sway; he consults endlessly on policies, many of which are misguided or never implemented, and fails to act decisively; and he has placed SA’s trade relations with the US and European Union at risk by forging closer ties with Russia and refusing to condemn its invasion of Ukraine. Matt Gertken of BCA Research commented that Ramaphosa was not considered a positive leader by financial markets going forward. He is old and suffering from scandals, he failed to implement significant structural economic reforms, he failed to mend divisions in the ruling party and now his credibility will suffer due to his foreign policy. In a succession of speeches and newsletters, the president has acknowledged the enormity of the challenges confronting the country, while highlighting his administration's attempts to tackle corruption and draw foreign investment. Read the full original of the report in the above regard by Colleen Goko, S'thembile Cele & Adelaide Changole at Fin24
Security guard shot dead in front of pupil at Free State high school News24 reports that a security guard at a Free State high school has been shot and killed, in front of a pupil. The guard was shot dead on Thursday evening at the Rantsane Secondary School in Qwa Qwa. Police spokesperson Sergeant Mahlomola Kareli reported: “It is alleged that the deceased opened the gate for a learner who was going home after evening studies. When the learner was about to get out of the gate, an unknown person came from the sports grounds just outside the schoolyard and fired shots. Police were called to the scene and the body of the 49-year-old guard was found with two gunshot wounds to the body and leg. The suspect is unknown and has not yet been arrested. The motive for the incident is not known." According to Mohale, a matric pupil witnessed the shooting. Psychosocial support has been provided to pupils and teachers at the school. Read the full original of the report in the above regard by Nicole McCain at News24. Read too, 'Father figure' security guard gunned down at Free State school prompting calls for more to be done, at News24 Eastern Cape farmworker on the run after stabbing farmer days after being fired News24 reports that Eastern Cape police have launched a manhunt for a farmworker who allegedly stabbed a farmer who had fired him a few days prior. Barkly East detectives said the stabbing occurred at around 08:30 on Thursday, two days after the 53-year-old farmer had dismissed the worker. Police spokesperson, Warrant Officer Majola Nkohli, said the farmer was inside his premises in Barkly East, when he was attacked and stabbed. The victim sustained injuries to the upper body and was treated at the nearest hospital. The suspect is still at large. A case of assault with intent to cause grievous bodily harm has been registered for further investigation. Read the original of the short report in the above regard by Malibongwe Dayimani at News24
Numsa wage strike at Tenneco automotive company in Eastern Cape enters seventh week The Citizen reports that workers at Tenneco Automotive in the Eastern Cape affiliated to the National Union of Metalworkers of SA (Numsa) have been on strike for seven weeks. The workers are demanding the immediate reinstatement of all 87 dismissed workers who rejected down-variation of pay rates, the dismissed workers’ wage rate of R114 per hour be retained and the equalisation of rates for all employees doing the same work as those earning R114 per hour. Numsa indicated on Friday that 87 workers remained unfairly dismissed and added that one worker had passed away due to a heart attack, because of the ‘rigid’ attitude displayed by the employer. While the CCMA has tried several times to intervene, the employer has apparently refused all efforts to resolve the impasse. Numsa advised it had applied for a section 150 application in terms of the Labour Relations Act to permit the CCMA to appoint someone to facilitate resolution of the dispute between the parties. The union added that it has begun a process of consulting workers from four sister companies falling under the component manufacturing sector and auto assemblers, with the intention of getting support for solidarity action. The union said the strike was indefinite and would continue until all demands were met. Read the full original of the report in the above regard by Siphumelele Khumalo at The Citizen
Minerals Council's Roger Baxter will stay on as CEO until end of June while ‘diplomatic’ successor is sought Business Times reports that the Minerals Council SA (MCSA), which was previously called the Chamber of Mines, has delayed the departure of its outgoing CEO, Roger Baxter, while the search for his successor continues. MCSA spokesperson Allan Seccombe indicated last week that Baxter had, in agreement with the board, extended his tenure until the end of June. “The process to find a new CEO is led by the Minerals Council’s nominations committee and it is making progress,” said Seccombe. In October, the council announced Baxter would step down when his contract expired at the end of April, marking the end of almost nine years at the helm. Mining industry experts said the next incumbent would likely be someone from within the industry who had experienced the complexities of the sector. Bernard Swanepoel, Joburg Indaba chair and former Harmony Gold CEO, said Baxter had been the right man at the time, but times were different now. “We are not looking for another Roger, but for someone who can be the ‘chief lobbyist’ in a very critical time of recalibrating relationships between stakeholders. I believe there are many suitable candidates within the industry, but the remuneration structures of the council may need to be modernised to attract the right person,” he said. Makhosi Nyamela of FNB Wealth and Investments said diplomacy was key for the new ncumbent. Read the full original of the report in the above regard by Dineo Faku at BusinessLive (subscriber access only) Other general posting(s) relating to mining
Numsa wants Gordhan to account for Takatso SAA merger process The Star reports that the National Union of Metalworkers of SA (Numsa) has once again slammed the proposed merger between SA Airways (SAA) and Takatso Aviation, which the Competition Commission recently provisionally approved. In a statement on Friday, the union’s general secretary Irvin Jim said the deal, which Minister of Public Enterprises Pravin Gordhan engineered, “stinks of corruption” and that it was disappointed that the Competition Commission had decided to legitimise a process “which was illegitimate to begin with”. Numsa reiterated that it was opposed to the merger between Takatso and the national carrier and said that a thorough and transparent process should have been followed, which had not been the case. The union has written to parliament’s Standing Committee on Public Accounts (Scopa) requesting an audience with the committee in order to stop the deal. “We have not heard back from any of them. This delayed response leads us to wonder if there is any political will to hold Gordhan accountable for this dodgy deal,” Jim queried. "SAA exists because of an act of Parliament, and yet, the entire process of appointing Takatso remains shrouded in mystery because Gordhan refuses to disclose to the public, or to Parliament, how he came to the decision that Takatso were the right organisation to choose as an equity partner. Gordhan has not disclosed the ‘due diligence’ process on how Takatso was chosen; we are simply expected to take his word for it that proper processes were followed, when they were clearly not followed," Jim argued. Read the full original of the report in the above regard by Siyabonga Sithole at The Star. Read too, Takatso hasn't provided proof it will be an equitable partner to SAA, says Numsa, at EWN. Read Numsa’s press statement in the above regard at Politicsweb Other internet posting(s) in this news category
Affirmative action: Economic sectors, numerical targets and quotas Imraan Mahomed and JJ van der Walt of law firm Cliffe Dekker Hofmeyr note that on 12 May 2023 the Minister of Employment and Labour published the much-anticipated notice identifying proposed national economic sectors and employment equity numerical targets under the Employment Equity Act (EEA). Companies were given 30 days to provide comment. They write that the introduction of targets is a significant move because there has up until now been no numerical targets in SA underpinning affirmative action. The authors explore in their article the vexed question of whether targets amount to quotas just by another name. The Minister proposes five-year sector targets in terms of population groups and gender for the four upper occupational levels (namely, Top Management, Senior Management, Professionally Qualified, and Skilled) and for employees with disabilities. The proposed numerical targets for the various population groups (African, Coloured, Indian, and White) and gender must, where applicable, be proportional to the demographics of the Economically Active Populations (“EAP”), whether national or provincial. The law provides that an EE Plan may provide for preferential treatment and numerical goals, but not quotas. The Constitutional Court (ConCourt) has already stated that the Constitution does not take issue with EE Plans that rigidly allocate positions along the lines of race and gender, provided that the EE Plan provides for certain specific deviations or exclusions. So, an EE Plan may be deviated from where a candidate has scarce skills or based on the operational requirements of the employer. The minimum standard that must be applied when determining whether the implementation of numerical targets is valid is based on whether it is rational because an EE Plan can only be implemented for its lawful purpose and nothing else. An employer accordingly cannot blindly follow numerical targets without due regard for the purpose of the achievement of equality. That would be done by inflexibly appointing applicants in ‘dogmatic compliance’ with the numerical targets of the EE Plan and would render the targets quotas. The authors anticipate that this will become very contested terrain in affirmative action law in years to come. Read this informative article by Imraan Mahomed and JJ van der Walt in full at Moneyweb
Rugby players returning from overseas to benefit, as Saru increases salary caps by R18 million City Press reports that SA’s international rugby franchises scored a major success last week by having their current annual salary notch of R67.2 million each increased to R85 million each for the period from 1 July this year to 30 June next year. This was approved at a meeting of the SA Rugby Employers’ Organisation (Sareo). Another change to the SA Rugby Collective Agreement that was unanimously approved at the meeting was that the salary cap for the Bulls, Sharks, Stormers and Lions would be increased to R95 million each for the period from 1 July next year to 30 June 2025. In a further major development, each of the franchises will in future be permitted to contract four senior “marquee” players in addition to its 53 senior players. Each international franchise must nominate its marquee players in writing for Sareo by 1 August every year. Nominations cannot be changed for the next 12 months. The international franchises can award the four spots to any player who falls into the category of a loyalty player or an overseas player who is returning. The specific allocation of these spots is at the discretion of the franchise. A loyalty player is one who has played 50 or more games for the same South African franchise in European or Super Rugby competitions. He may be nominated as a loyalty player by the same franchise. An overseas player who is returning is one who qualifies for the Springboks and is coming back from abroad for a contract with a South African franchise. These proposals were made last week by Dave Wessels, head of rugby of the Stormers, on behalf of the international franchises at the Sareo meeting. Read the full original of the report in the above regard by Hendrik Cronjé at City Press (subscriber access only)
Two Unisa council members quit over assessor's scathing report on the university Sunday Times reports that the Council of the University of SA (Unisa) has been hit by two resignations in the wake of a damning assessor’s report into the affairs of the embattled institution. Belinda Mapongwana, chair of council’s social and ethics committee, resigned with immediate effect on Friday without providing a reason. But a council member said it was linked to the council's failure to call a special meeting on Friday. On Saturday, Sedzani Mudau informed the council that she was also resigning, and that her decision was triggered by a resolution taken during a council meeting on Thursday to ask Higher Education Minister Blade Nzimande to grant an extension of 21 working days to respond to the report. Nzimande had given the council 14 days to respond. Mudau had been the chair of the audit and risk committee and was praised by independent assessor Prof Themba Mosia in the report as performing well in her role. Mosia made 26 recommendations to Nzimande, which included placing Unisa under administration and relieving the Council and management of their duties. A council meeting, scheduled for Friday, where the suspension of vice-chancellor Puleng LenkaBula was expected to have been put to a vote, was cancelled. According to the institutional statute, at least seven days’ notice was required before an extraordinary meeting could be called. During Thursday’s Council meeting, member Prof Muxe Nkondo proposed that LenkaBula be temporarily suspended and subjected to a disciplinary process which would “give her space to defend herself”. Sources who attended Thursday’s Council meeting said while most had agreed LenkaBula be suspended, a minority was “hell-bent on protecting the maladministration”. Read the full original of the report in the above regard by Prega Govender at Sunday Times (subscriber access only). Read too, Unisa council divided on VC's fate, at City Press (subscriber access only)
Last Mile Logistics, which delivers newspapers for Independent Media, months behind on payment of pension contributions Fin24 reports that Last Mile Logistics (LML), which delivers newspapers for Independent Media and some smaller media groups in KwaZulu-Natal, Gauteng and the Western Cape, is allegedly months behind in paying staff contributions over to pension funds. A concerned employee said that while pension fund contributions for its 240-odd employees were being deducted from salaries, LML was not immediately paying these over to two funds administered by Old Mutual and Sanlam. Unemployment Insurance Fund (UIF) payments are allegedly also behind schedule. Pension fund contributions are meant to be paid into funds by employers on the seventh of the month following the month for which they are due. But a week ago, Old Mutual wrote a letter to fund members, stating that payments were 60 days late. Contributions are also late at the staff fund administered by Sanlam. An employee indicated: "Staff have written to the CEO, and the Information Communication Technology Union has queried this with the company on behalf of their members." The issue has been brought before the CCMA. LML’s Yazeed Evans confirmed that payments to the two pension funds, as well as UIF contributions, were late. He promised that all contributions would be paid in full by Tuesday. Evans added: "The continued load shedding has added to significantly impact on our operations on a daily basis. We wish to highlight that benefits to staff are not at risk and any interest that may have been earned by these funds are being paid by LML." He did not respond about why LML was, according to staff, deferring salaries. Read the full original of the report in the above regard by Jan Cronje at Fin24 Post Office fails to pay contributions into employees’ retirement fund for three years GroundUp reports that the SA Post Office (Sapo) has been deducting pension fund contributions from employees’ salaries, but the last time any money was paid over to the retirement fund was at the end of April 2020. This is despite a scathing Supreme Court of Appeal (SCA) judgment delivered on 31 December 2021 ordering Sapo to pay the retirement fund arrears, as well as 9.75% interest on the outstanding amount, within five days of the order. Each month, 7.5% of workers’ salaries are deducted by the state-owned organisation as a contribution to the Retirement Fund. The employer’s contribution is supposed to be 13.55% of each worker’s salary. But for three years, neither amount has been paid in by the Post Office. The first of two provisional liquidation orders were granted against Sapo on 9 February. The Sapo Retirement Fund, to which employees are obliged to contribute, is a defined contribution fund. This means that the contribution levels are set rather than defined benefits. The money in the fund is invested and the amount employees get on retirement depends on their contributions, the employer’s contributions and the growth in the fund. Sapo spokesperson Suzie Khumalo said they would not at this stage reveal any information about Sapo’s debt as “it will jeopardise court proceedings”. The first of two liquidation hearings is set for 1 June. Liquidator Anton Shaban said the pension fund did not fall under his remit. It seems likely that Sapo owes the Retirement Fund in the region of R1-billion. Read the full original of the report in the above regard by Steve Kretzmann at GroundUp
Suspended CEO of Denel Dynamics heads to Labour Court to keep job Sunday World reports that suspended CEO of a Denel subsidiary, Sello Ntsihlele, has applied to the Labour Court for an urgent interdict to stop the state utility from taking disciplinary action against him for making a protected disclosure. The head of Denel Dynamics has also demanded that the company be prevented from firing him. On Tuesday, Ntsihlele approached the court for an interdict, requesting the matter be referred to a dispute resolution institution. The company is opposing Ntsihlele’s assertion and on Wednesday filed an opposition notice. In his application, Ntsihlele asserts that the arrival of Riaz Saloojee at Denel, who was earmarked to be the chief restructuring officer but without the board’s knowledge, marked the start of his troubles. Saloojee was apparently on mission to sell Denel’s assets, but Ntsihele blocked the moves as he believed the transactions were valued at too low a price. In August 2022, Ntsihlele declared and lodged four grievances. He was suspended on 18 November last year for insubordination, allegedly for failing to perform his CEO duties. The disciplinary hearing chair Tebogo Mancha in a ruling on 2 May supported Ntsihlele’s submission that the dispute should be resolved through an external dispute resolution process rather than through the state arms manufacturer’s own internal process and confirmed that Denel’s disciplinary hearing against Ntsihlele was an “occupational detriment”. Without determining their veracity, Mancha said Ntsihlele’s earlier grievances constituted disclosures. However, he acknowledged he had no authority to compel Denel to refer the matter to an external dispute resolution process. The utility informed Ntsihlele the week before last that the matter would not be referred to an external process and that the hearing would resume on 29 May. Read the full original of the report in the above regard by Setumo Stone at Sunday World
Former commander of Mpumalanga police branch pleads guilty to Road Accident Fund fraud TimesLIVE reports that a former police branch commander is set to be sentenced after he admitted his role in Road Accident Fund (RAF) fraud. Hawks spokesperson Col Katlego Mogale said W/O France Khoza had colluded with the mother of an accident victim to submit a fraudulent claim to the RAF. Khoza was the former branch commander of Dientjie police station in Mpumalanga. “It was reported [the accident victim] was driving a VW Polo that overturned with four passengers, and he had no driver’s licence,” Mogale indicated. But, Khoza claimed a licensed driver was behind the wheel “with the intention of lodging a claim with” the RAF. Khoza will be sentenced on 21 June. Read the original of the short report in the above regard by Philani Nombembe at SowetanLive Other internet posting(s) in this news category
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