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 Thursday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Solidarity to head to court to challenge ‘unimplementable’ NHI TimesLIVE reports that trade union Solidarity says it is getting ready for a major court challenge against the National Health Insurance (NHI) scheme. This after the National Assembly approved a bill on Tuesday that will pave the way for the introduction of the universal health insurance scheme. The plan’s critics have argued it would be financially unsustainable and impossible to implement effectively. Solidarity said on Wednesday that it had instructed its legal team to start preparing for a court case. “We realised from the outset the NHI would probably be tested in court. The government’s plans to capture healthcare are unaffordable and unimplementable,” Solidarity CEO Dirk Hermann indicated. He advised that the Solidarity Research Institute (SRI) had undertaken comprehensive research in the medical sector, which showed that the adoption and implementation of NHI would lead to a huge exodus of medical professionals from SA. “The government has already failed with the public healthcare system and it now wants to fail on an even bigger scale. It has a history of failure when it comes to state enterprises, and there is no reason to believe the proposed NHI would not be to the serious detriment of South Africans.” Hermann commented Read the full original of the report in the above regard by Shonisani Tshikalange at BusinessLive Institute of Race Relations will fight NHI bill with ‘all the resources at its disposal’ TimesLIVE reports that the Institute of Race Relations (IRR) says South Africans should be “deeply” alarmed by the approval of the controversial National Health Insurance (NHI) Bill and the organisation has vowed to oppose its implementation with “all the resources at its disposal”. On Tuesday, the National Assembly approved the bill that will pave the way for the introduction of universal health insurance. It now needs to go to the National Council of Provinces (NCOP), and if passed there, it will be referred to President Cyril Ramaphosa to sign into law. Trade union Solidarity reacted that it was gearing up for a court challenge to the bill. The IRR expressed concern at the approval of the bill “without knowing how much it will cost”. The organisation warned: “The tax increases required to generate at least R470bn a year (and more likely R700bn a year by 2026) will be high.” It added that SA already carried one of the highest tax burdens in the world, with a very small tax base, and public debt remained high. The IRR questioned whether money collected for the scheme would actually be reserved for that purpose and not general government spending, especially given government’s well-documented poor track record when it came to spending public money. It said implementing the bill “will result in the exodus of many health professionals because they believe the NHI will ‘destabilise’ healthcare rather than improve it”. Read the full original of the report in the above regard by Khanyisile Ngcobo at BusinessLive It's all or nothing with NHI, but it won't happen at 'the flick of a switch', says Phaahla Fin24 reports that Health Minister Joe Phaahla sees limited scope to change the National Health Insurance (NHI) Bill as it proceeds through the National Council of Provinces (NCOP), despite the strong opposition from the private healthcare industry and the biggest opposition political parties. Many healthcare businesses and private practitioners have expressed hope that the Bill can still be changed as it proceeds through the second House of Parliament. The NHI will create a single fund to which those earning income will contribute, probably through a payroll tax. As the NHI expands over time, the bill envisages that medical aids will no longer be allowed to reimburse people for services offered by the NHI and will effectively be phased out. Speaking after the bill passed through the National Assembly on Wednesday, Phaahla said that a version of the NHI in which private medical cover continued to exist alongside the scheme was not a viable choice. “You either have a national system of solidarity and a shared pool of funds, or you keep what you have… A multi-entry or multi-system of insurance would defeat the (purpose of an NHI). In our view, from a policy perspective, you make a choice,” Phaahla asserted. But, he said the new system would be introduced gradually and will not happen at "the flick of a switch". Phaahla acknowledged that the NHI would bring fundamental change to the healthcare industry, which he said was overpriced, underutilised, and wasteful, with parts of it likely to collapse as services continued to increase in cost, with an insufficient number of people able to afford them. Since the bill was introduced to the National Assembly in 2019, very little has been changed except for a small amendment requiring the Cabinet to appoint the board of the NHI rather than the minister of health alone. Read the full original of the report in the above regard by Carol Paton at Fin24 (subscriber access only) The lack of information on the costing of NHI is intentional, says health deputy director-general Fin24 reports that there is not yet any clarity on how much people will pay to the proposed National Health Insurance (NHI) scheme and how it will be funded. According to deputy director-general in the health department Nicholas Crisp, the lack of clarity was intentional as the government had been advised by the World Health Organisation not to state the costs upfront. Said Crisp: “We have been advised repeatedly that we should not go the route of costing anything … What you do is you say that in a country such as SA, it is reasonable to spend between 7% and 8% of GDP on healthcare… and then you push the prices (of the goods and services you buy) down. That is exactly why we need one system. For example, when we buy pharmaceuticals in the public sector, we get them sometimes for one-tenth of what you pay in the private sector. Imagine if we were all getting those prices.” But, the tax increases required to generate at least R470bn a year (and more likely R700bn a year by 2026) will be high, according to the Insttiute of Race Relations. The Treasury warned in its October 2019 medium-term budget policy statement that NHI costs were “no longer affordable”, given the country’s macroeconomic and fiscal outlook at the time. This echoed an earlier warning by the Davis tax committee, which stated in 2017 that the NHI was “unlikely to be sustainable” without faster economic growth, which has not transpired and was unlikely to be achieved. Based on reports at Fin24 (subscriber access only) and BusinessLive Other internet posting(s) in this news category
Independent Media announces voluntary severance packages BusinessLive reports that two months after Independent Media employees were slapped with salary cuts, the embattled media company has announced voluntary severance packages “to mitigate future job losses”. This was communicated to staff via email from company CEO Takudzwa Hove on Tuesday. “As a result of the business finding itself in a difficult position due to a number of factors that have affected the print and media industry, all of which have been communicated to you over the past few months, the company wishes to inform staff that we will be opening VSPs (voluntary severance packages),” Hove indicated. The company gave staff who were interested in applying for the first phase until 23 June to submit their applications and said the first round would last until 7 July. In April, the company announced the closure of several flagship newspapers, including the Pretoria News, after the merger of those papers with other titles. The Pretoria News merged with The Star, while the weekend editions of the Argus merged, as did the Saturday and Sunday editions of Isolezwe. Just a month earlier, staff were told they would be paid only 75% of their salaries, with “the balance of 25%” set to be paid later in the month. Read the full original of the report in the above regard by Khanyisile Ngcobo at BusinessLive Other internet posting(s) in this news category
In face of Operation Dudula accusation of selling out, Motsoaledi sticks to his guns on latest ZEP extension The Citizen reports that Home Affairs Minister Aaron Motsoaledi has stood by his decision to extend the Zimbabwean Exemption Permits (ZEP) for another six months, despite mounting backlash. Addressing the portfolio committee on home affairs on Wednesday, Motsoaledi said his department had been seeing at least 1 000 to 1,500 alternative residence applications a day since June. Last week, Motsoaledi announced the extension but various organisations accused him of failing to protect South Africans, while some called for the concept to be scrapped altogether. Operation Dudula’s Zandile Dabula said Motsoaledi’s decision was “an act of cowardice and outright betrayal of the citizens”. She said Operation Dudula’s view was that Motsoaledi sold out. However, Motsoaledi told the portfolio committee that “an avalanche of applications started coming in within a space of weeks left”. He explained that they realised they could not tackle all the applications within the allocated period. Organisations such as the Zimbabwean Exemption Permit Holders Association (Zepha), the Helen Suzman Foundation and the Zimbabwe Immigration Federation took Motsoaledi to court in a bid to overturn the decision to scrap the ZEP. Zepha said the 7 June decision to extend the ZEP for a third time proved the government’s initial decision to end exemptions was “ill-conceived, unreasonable, procedurally unfair, unconstitutional and, thereby, unlawful”. Read the full original of the report in the above regard by Reitumetse Makwea at The Citizen (subscriber access only)
Embattled Denel moves to appoint key executives Fin24 reports that according to state-owned arms manufacturer Denel, it is in the process of appointing an executive team to lead the organisation and bolster its efforts to improve governance, restructure and stabilise the organisation to fulfil its mandate. On Wednesday, the interim chair of Denel Gloria Tomatoe Serobe told Parliament's Standing Committee on Public Accounts (Scopa) that the process to appoint a group chief executive, a chief financial officer and a chief audit executive would be completed during the current financial year. These critical positions are currently occupied by interim appointments. But, some MPs were bemused when Serobe’s own status on the board came into question. The Deputy Minister of Public Enterprises, Obed Bapela, who led the Denel delegation to the meeting, did not know whether Serobe was a permanently appointed chair, or was interim chair of the board. Serobe explained that she was acting as chair, as the previous chairperson had resigned and left the board. The board itself is down to six members, less than half its full strength of 13 board members. Denel has had no fewer than seven acting and permanent chief executives over the past seven years. The current acting chief executive, Michael Kgobe, was appointed into the position in September 2022. The current chief financial officer has also been in an acting capacity since 2021. The group has been struggling to pay the salaries of its staff, and has been unable to pay its suppliers and service its debt for the better part of the past five years. It has run out of orders for its equipment, thereby depleting revenue streams, and has not been able to fully supply the primary equipment for the SA National Defence Force. Read the full original of the report in the above regard by Sikonathi Mantshantsha at Fin24
Three top acting municipal appointments blocked by Cape Town High Court in matter of weeks Sunday Times Daily reports that three top acting municipal appointments in the Western Cape have been set aside in a matter of weeks for being unlawful. Knysna municipality’s decision to appoint Londiwe Sotshede as acting CFO was last week found to be unlawful by the High Court in Cape Town because she lacked the required qualifications and the appointment contravened the Municipal Systems Act. The municipality also failed to apply to the provincial MEC of local government to extend the acting period of the position. The court furthermore nullified the municipality’s decision to appoint Luvuyo Loliwe as acting director of corporate services. The municipality had argued that certain regulations only applied to permanent senior manager appointments, but this was rejected. In April, the same court overturned the appointment of former Beaufort West mayor Truman Prince as acting municipal manager of the Central Karoo District municipality. Though Prince had the necessary academic qualifications for the post he did not have the required five years’ experience at a senior management level. Provincial local government MEC Anton Bredell welcomed the judgments and commented on Wednesday: “We need people with the right qualifications to work in our local governments. These requirements are clearly stipulated in legislation, and municipalities cannot ignore it when making appointments.” Read the full original of the report in the above regard by Philani Nombembe at TimesLIVE Premium (subscriber access only)
CEO of Joburg Roads Agency dismissed over fake qualifications The Citizen reports that the Johannesburg Roads Agency (JRA) has dismissed its CEO Tshepo Mahanuke for presenting fake qualifications. The agency’s board said that the termination came after Mahanuke failed to provide any counterevidence to the evidence of fraud found in his CV as provided to the JRA during his recruitment process. “Given the serious nature and far-reaching ramifications of the matter at hand, coupled with the findings of a rigorous investigation and the failure of Mr. Mahanuke to respond to the charges levelled against him, the JRA Board resolved to immediately terminate Mr. Mahanuke’s employment with the Johannesburg Roads Agency,” Charles Cilliers, the JRA Board chairperson, advised. Mahanuke was granted seven days to appeal the termination decision and has until Friday to do so. Questions around Mahanuke’s credentials came in the spotlight after Daily Maverick reported that the CEO claimed to have a Harvard master’s degree that doesn’t exist. Read the full original of the report in the above regard compiled by Siphumelele Khumalo at The Citizen. Read too, Johannesburg Roads Agency CEO sacked after fake qualification probe, at News24
Too late to discipline suspended top cop Francinah Vuma, arbitrator rules City Press reports that the hearing into allegations of misconduct against suspended deputy police commissioner Francinah Vuma has found that the police service has waived its rights to discipline her. Vuma was suspended in July last year following a Pretoria High Court ruling that she and former national commissioner Khehla Sitole and his deputy, Jacob Tsumane, “breached their duties” by not handing over or declassifying documents for the Independent Police Investigative Directorate (Ipid) to investigate allegations of fraud and corruption. In a ruling delivered on Tuesday by the Safety and Security Sectoral Bargaining Council, arbitrator Johnny Mathebula found: “The respondent (police service) has waived its right to discipline Lieutenant-General Vuma. The respondent is accordingly precluded from disciplining the applicant.” Vuma’s lawyers had raised two preliminary points. The first was that the police service had unreasonably delayed in instituting a disciplinary inquiry against Vuma, which was being instituted five years from the dates of the alleged acts/omissions. The other was that, by its conduct, the respondent had waived its right to discipline Vuma. In responding to Vuma’s submission, the police service had argued that the charges were not being reopened as they had already been determined by the High Court and that they arose from the judgment itself and as a result of it. But, Vuma’s lawyers argued further that the police service took no action against Vuma, had no intention to discipline her and instead, she was advised on how to handle the IPID issue and was later promoted in 2020 to an even higher position. According to Vuma, who is responsible for asset management in the SAPS, she had rebuffed several attempts by her seniors to sway certain contracts to benefit certain companies. Read the full original of the report in the above regard by Abram Mashego at City Press (subscriber access only) Other internet posting(s) in this news category
North West police officer in court for ‘altering’ sick note to extend sick leave by one day The Citizen reports that a police officer was released on warning after he allegedly altered a sick note. Sergeant Kagiso Motlele, who is stationed at the Madibogo Police Station in North West, was arrested at his workplace and appeared at the Setlagole Periodical Court on Tuesday for fraud. Police spokesperson Brigadier Sabata Mokgwabone reported that the medical practitioner permitted him to stay home for three days to get fit for work, but he fraudulently extended the sick leave with a day. After he handed a suspicious sick note to his commander, the matter was reported to the Provincial Anti-Corruption Investigation Unit for investigation and it was confirmed that the accused altered the sick note and failed to report for duty. Motlele will appear before the Atamelang Magistrate’s Court on 7 July 2023. The province’s commissioner, Lieutenant General Sello Kwena, welcomed the arrest and said the sergeant’s actions were absolutely unethical and intolerable as they impacted negatively on service delivery and tarnished the image of the police service at large. Read the full original of the report in the above regard compiled by Siphumelele Khumalo at The Citizen All National Lottery Commission staff, board members to undergo integrity tests in effort to smoke out fraud Fin24 reports that the National Lotteries Commission (NLC) is planning to put all its employees through integrity tests to screen out "potential unethical individuals". The NLC this week put out a tender to appoint a private company to interview and compile risk profiles on every one of its 303 employees. No one, from board members down, will be spared. The reports, which will include risk and credibility assessments for all staff and board members, will be sent to Commissioner Jodi Scholz to review. The service provider has been asked to discover "misleading information by respondents" and identify staff members it believes may be acting unethically. In addition to putting employees under the microscope, the integrity testers will need to inform Scholtz about fraud trends, identify internal weaknesses, and analyse how successful the lottery has been in detecting fraud. They will also craft or recommend a set of early warning tools based on data analysis that the NCL can use to ferret out corrupt staff. The move comes as the lottery seeks to reset its public image following a number of high-profile corruption and embezzlement cases involving senior management. The tender closes later this month. Once a winner has been chosen and a contract signed, the service provider will have three months to interview staff and complete its report. Read the full original of the report in the above regard by Jan Cronje at Fin24 (subscriber access only)
Solidariteit verwerp raswet in ‘historiese noodkongres’, by Maroela Media Straf politici, nie gewone SA’ners, pleit Solidariteit Beweging by VSA, by Maroela Media Nelson Mandela Bay municipal staff, journos trapped in mud during oversight visit to dam, at News24 Saftu weighs in on tax evasion allegations against Adidas, at BusinessLive (subscriber access only) New Cyber Academy launched to upskill young people in Western Cape, at News24
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