TOP REPORT

Sactwu wants R300m loan back from Survé-linked media group as union can't pay pension, funeral bills

Fin24 reports that André Kriel, general secretary of the Southern African Clothing and Textile Workers' Union (Sactwu), says the union is struggling to pay out funeral benefits to its members. In court filings, he blames this on a refusal by Sekunjalo Independent Media (SIM) to pay back R150 million loaned to it a decade ago. SIM is the majority owner of Independent Media and is a subsidiary of businessman Iqbal Survé's Sekunjalo Investment Holdings, which bought out Independent Media from its Irish owners a decade ago. Sactwu Investment Group (SIG) loaned the media group R150 million in August 2013, which it used to pay off a portion of its debt to the Public Investment Corporation (PIC). SIG, owned by the Sactwu Education Trust, is a company that the clothing workers' union uses to advance loans to small businesses in the clothing sector. The union and the media group initially had ambitious plans to set up a workers' newspaper. But relations soured in 2019 when SIG and Sactwu asked for their loan to be repaid. SIM refused, saying the union had already swopped its loan claim – which by then had grown to almost R300 million – for shares in another Sekunjalo subsidiary, Sagarmatha. As SIG didn’t own the loan anymore, the media group argued there was nothing to pay back. The union and SIG then took the media company and its parent Sekunjalo Investment Holdings to court to compel it pay back the funds. According to Kriel, Sactwu is in dire need of the R150 million to be paid back, with interest. As matters presently stand, Sactwu is struggling to pay its members all of the benefits which they are due, and currently is in arrears in an amount of some R25 million to its members in respect of funding of retirement benefits.   Without the repayment of the loan, Kriel said that the union may be forced to sell some shares in its prize possession – a 26% stake in HCI.

Read the full original of the report in the above regard by Jan Cronje at Fin24 (subscriber access only)

FUNDING ESKOM’S WAGE DEAL

Eskom bets on improved operations to fund three-year wage deal

Moneyweb reports that Eskom’s three-year wage deal with trade unions was widely welcomed last week as the power utility managed to dodge the risk of violent wild-cat strikes and the accompanying sabotage of power stations that has led to intensified load shedding during wage negotiating deadlocks in recent years. The utility may however have merely kicked the can down the road as the funds to pay 80% of its workforce a 7% increase annually for three years, as well as a R10,000 once-off cash bonus this year and in 2024, are simply not available. Eskom has not disclosed the annual cost of the deal. The figures depend on variable components, including the number of employees per period, utilisation of allowances during the period of the deal and so forth. Peter Attard Montalto of Intellidex estimates the deal will leave Eskom with a shortfall of about R1.3 billion per year compared to its budget. He says the 7% increase in the first year is not a surprise, but the inflation rate is expected to drop, implying lower levels of increase in the following two years. According to the power utility, the wage agreement “will give Eskom an opportunity to address our operational challenges which in turn will give us more revenue that will be used for, amongst other things, to fund the salaries”.   The idea seems to be that better operational performance – thanks to employees having been incentivised by the wage increase – will lead to a decrease in load shedding and an increase in electricity sales, which will pay for the additional payroll. But, whether Eskom’s bet on improved plant performance to fund the wage hikes will pay off remains to be seen.

Read the full original of the report in the above regard at Moneyweb

MINING LABOUR

Solidarity accuses Kumba Iron Ore of negotiating in bad faith and says wage dispute will follow

In a press statement on Wednesday, Solidarity indicated that salary negotiations between itself, Anglo American’s iron ore producer Kumba Iron Ore, and mining unions NUM and Amcu were heading towards a dispute. The trade union reported that the fifth and final round of negotiations began to derail on 19 June due to Kumba’s “inexplicable positioning”.   According to Solidarity, the trade unions took a pragmatic stance from the outset given Kumba’s positive financial year results and generous dividends declared, and presented a CPI-related increase as a win-win settlement. Many employment-related demands were apparently dropped to speed up the settlement, but Kumba, on the other hand, allegedly complicated the negotiations. “Kumba started pleading poverty from the third round and predicted a dark and uncertain future for the mining company over the next three years. The company is not inclined to offer CPI-related increases for their employees,” said Solidarity general secretary Gideon du Plessis. “It is a shame that Kumba cannot follow Anglo American’s (Amplats’) progressive negotiation model of 2022. Amplats and mining unions reached a five-year agreement in which increases grow upwards towards the end of the agreement, and skilled workers’ increases from year one to five are as follows: 6% / 6% / 6% / 6,5% / 6,5%. In contrast, Kumba only offers a three-year agreement with a downward sliding scale where the increases of skilled workers on the upper scales are as follows: 6,5% / 5,5% / 5% with a refusal to link salaries to the prevailing CPI,” commented Du Plessis. He expressed the opinion that Kumba was beginning to follow the route of negotiating in bad faith. Solidarity and the other unions will apparently take Kumba’s final offer to their members for consideration, “but expect that rejection of the final offer and a dispute process will likely be the outcome”.

Read Solidarity’s press statement on the Kumba wage negotiations at Politicsweb

Security guard and Implats mineworker arrested for theft of catalytic converters worth R1.7 million

News24 reports that North West police have arrested a Bidvest Protea Coin Security guard and an Impala Platinum (Implats) employee for the theft of catalytic converters worth R1.7 million, tampering with essential infrastructure, theft and gangsterism. According to the National Prosecuting Authority's Henry Mamothame, Aubrey Loeto and Thys Monchusi were arrested last Thursday after the Rustenburg Organised Crime Unit received a tip-off from Bidvest Protea Coin about one of company's vehicles which was spotted transporting catalytic converters from Impala Platinum Mine. He said police traced the vehicle and the information led them to a house where a third suspect, who is still at large, had hid the equipment in a rented shack in Lemenong section, Phokeng. "Monchusi was arrested on the scene while Loeto was traced and found at Boitekong, and subsequently returned to where the stolen goods were stored, where he confirmed that the goods were stolen from the platinum mine. The duo further confirmed that a third person, who is their ally, is linked to the crime. The two will remain in police custody until their next court appearance, while the search for the third suspect continues," Mamothame advised.   The case was postponed to Friday for a formal bail application. The state plans to oppose bail.

Read the original of the report in the above regard by Cebelihle Bhengu at News24

REMUNERATION / JOBS MARKET

Real take-home salaries again decreased in May

The Citizen reports that SA salaries decreased again in May, due to continuing economic woes, higher inflation and low confidence levels. According to the latest BankservAfrica Take-home Pay (BTPI) index, the average nominal take-home pay slipped marginally in May to R14,457, thereby remaining 2.7% below the level recorded a year ago. Real take-home salaries fell to R13,416 per month in May 2023, 8.8% lower on a year-on-year basis and the lowest level on record. Shergeran Naidoo of BankservAfrica noted that confidence levels in the economy remained at shockingly low levels, hampering the possibility of an economic recovery. The RMB/BER Business Confidence Index (BCI) declined for a fifth consecutive quarter to reach the lowest confidence level since 2020.   Independent economist, Elize Kruger, pointed out that an environment of such low confidence was not conducive for job creation or comfortable wage increases, as confirmed by the BTPI in May.   “With inflation remaining at elevated levels, the purchasing power of the average salaried worker has flattened,” she pointed out. Private pension payments measured in the BankservAfrica Private Pensions Index (BPPI) remained resilient despite the impact of inflation. According to Kruger, the job market remained uninspiring.   BankservAfrica’s data suggests that an uptick in the number of salaries paid into South Africans’ bank accounts in February and March largely reversed in April and May, leaving the job market essentially flat.

Read the full original of the report in the above regard by Ina Opperman at The Citizen (subscriber access only)

RETRENCHMENTS / COMPANY JOB CUTS

Already-downsized SA companies may not be able to cut more jobs to weather economic storm

Fin24 writes that businesses are struggling amid load shedding, rocketing input costs and aggressive rate hikes, while demand for their products and services is faltering in a weak economy. In normal times, this would trigger a shockwave of retrenchments. But according to economist Azar Jammine, many businesses already trimmed their staff count close to the bone during the pandemic. "With Covid-19, we saw significant retrenchments, and I think a lot of businesses used that opportunity to downsize," he pointed out. So, even with the rising costs, firms cannot afford to retrench more staff without hurting their operations. SA still has 1 million fewer jobs than before the pandemic, according to labour specialist Andrew Levy. "I do see employers continuing with this upward trend of shaking out labour.   But is there going to be a sudden nuclear explosion of retrenchments? No, I can't see that," said Levy. Jammine reckons many businesses will look for other ways to save costs – or to insulate themselves against the Eskom and Transnet crises, by generating their own power and reducing their dependence on the rail network. Sharon Pearce of Flux Trends says many companies have frozen positions following resignations for much longer than before Covid-19. Some jobs have never been filled again or were replaced by contract workers instead of permanent positions. The trend towards contract workers makes those workers more vulnerable to layoffs.

Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24

COST OF LIVING

Inflation rate in May cools to lowest increase since April 2022

BL Premium reports that the annual inflation rate eased further to a 13-month low in May, moving closer to the upper limit of the SA Reserve Bank’s (SARB’s) target range of 3%-6% and reflecting the effects of slowing food and fuel prices. Stats SA said on Wednesday that headline consumer inflation cooled for a second consecutive month in May to 6.3% from 6.8% in April and dropped to the lowest rate since April 2022, when the rate was 5.9%. The annual rate in May for food and nonalcoholic beverages was 11.8%, against April’s 13.9%. Stats SA said most food and nonalcoholic beverages categories recorded lower annual inflation rates in May, with the exception of sugar, sweets and desserts, and cold beverages. The annual rate for fuel decreased further in May, cooling to 3.5% from 5% in April.   Stats SA also noted that dining out had become more popular, but more pricey, as households continued to experience rotational power cuts. Increased household expenditure in the first quarter of the year was mainly driven by spending on restaurants and hotels, which jumped 6.9%. Other notable price changes in May included the transport index, which increased 7% in the 12 months to May. Annual health inflation also ticked up to reach 5. 8% in May, from 4.8% in January. Annual core inflation, which excludes prices of food, nonalcoholic beverages, fuel and energy, eased to 5.2% in May, from a more than six-year high of 5.3% in April.

Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only). Read too, Inflation rate slows to 13-month low as food prices cool down, at Fin24. En ook, Inflasie laagste in 13 maande, by Maroela Media

Other internet posting(s) in this news category

• Laer inflasiekoers nie noodwendig goeie nuus, by Maroela Media

HEALTHCARE / NHI

SA only has 22,000 nurses in the public health system – and it’s likely to get worse

The Citizen reports that SA has only 22,090 nurses to serve the more than 50-million people reliant on the public health sector.   Health Minister Joe Phaahla revealed this in reply to a written parliamentary question from the Democratic Alliance (DA). The number amounts to one nurse for every 2,300 people in SA and the situation is likely to get worse. Phaahla advised that more than 30% of SA’s nurses will retire in the next 10 years and a further 38% will retire a decade later. Despite this, Phaahla said the Department of Health was “unable to state the envisaged time frame to fill the vacant positions due to general budget cuts”. But he confirmed that “measures are applied across provinces to prioritise the filling of vacant posts where the budget permits.” DA MP Michéle Clarke commented that the nursing shortage was an indication that the government’s National Health Insurance (NHI) was likely to fail. “Their (government’s) failure to address the current nursing shortage and lack of urgency to solve the sector’s future demise is a disturbing prediction of what’s to come under the disastrous NHI,” said Clarke. The NHI Bill was passed in Parliament last week with the aim of providing universal access to quality healthcare for all South Africans.   There are, however, many who have concerns about the bill, with funding seen as one of the major stumbling blocks.

Read the full original of the report in the above regard by Gareth Cotterell at The Citizen. Read too, Nursing crisis confirms dire state of public healthcare, at BusinessLive

SAMA cautions health department against prematurely implementing NHI programme

News24 reports that the SA Medical Association (SAMA) has called for clear and transparent governance structures within the National Health Insurance (NHI) framework to promote inclusivity and meaningful representation from healthcare professionals and other stakeholders.   While the association reaffirmed its commitment to supporting Universal Health Coverage, it said it couldn't endorse the NHI in its current form as the chosen vehicle by the government.   Spokesperson Dr Mvuyisi Mzukwa said they wanted to caution the health department against "prematurely implementing an NHI model that could disrupt the country's health system without mitigation". According to the association, with proper governance the high likelihood of risk might decrease. The NHI Bill was passed by the National Assembly last week. It proposes that all South Africans will eventually belong to a massive state-run medical scheme. On Tuesday, Health Minister Joe Phaahla confirmed that the bill would be presented to the National Council of Provinces for consideration.   Mzukwa said SAMA supported the implementation of a universal health coverage programme, but had, on various platforms, highlighted the challenges presented in the current NHI Bill.   These challenges included governance, financing, health system capacity, and the potential impact on private healthcare providers. "The Bill's complexity and potential operational difficulties require careful consideration and robust mitigation strategies to ensure successful implementation," Mzukwa cautioned.

Read the full original of the report in the above regard by Yoliswa Sobuwa at News24

DISMISSAL CONFIRMED

Western Cape principal who refused to reopen his school during Covid-19 loses bid to be reinstated

TimesLIVE Premium reports that a school principal who told the former head of the Western Cape education department “it was unfortunate he resorted to pre-1994 methods of issuing instructions in baasskaap manner” has failed to have his dismissal overturned. The Education Labour Relations Council (ELRC) ruled on Monday that the sacking of Wesley Neumann, the former principal of Heathfield High School in Cape Town, was both procedurally and substantively fair.   The outspoken headmaster made headlines in October 2020 when he and a group of colleagues wrote an open letter to President Cyril Ramaphosa at the peak of the Covid-19 pandemic calling on him and his cabinet to reconsider the reopening of schools until it was safe to return. Neumann was charged with misconduct on 16 September 2020 and found guilty on six charges on 11 October 2021, including failure to carry out a lawful order. This concerned an instruction issued to him by former head of education Brian Schreuder, in a letter dated 24 July 2020 asking him to ensure all grade 12 pupils attended school from 3 August and that teachers also reported for duty. Neumann was also found guilty of disrespect “in the form of abusive or insolent behaviour” in his response to Schreuder’s letter in an email on 26 July.   Neumann was dismissed in May 2022 and then referred a dispute to the ELRC. In dismissing the case, ELRC commissioner Jonathan Gruss stated that Neumann’s “pre-1994 and baasskap” remark “ultimately implies that Mr Schreuder is a racist or demonstrating the mentality of an apartheid racist boss”.

Read the full original of the report in the above regard by Prega Govender at TimesLIVE Premium (subscriber access only)

ALLEGED CORRUPTION

Former health spokesperson Popo Maja in court over graft in Digital Vibes scandal

BL Premium reports that the Department of Health’s former head of communications Popo Maja has appeared in court over corruption charges related to the Digital Vibes scandal, in which a R141m communications contract was awarded in 2019 to an obscure company run by close associates of former health minister Zweli Mkhize. Maja faces two charges of corruption totalling R15,000. “My conscience is clear. I am happy it has come to this so I can clear my name,” said Maja, who handed himself over to the police and appeared in the Pretoria specialised commercial crimes court on Wednesday. It was found in a hard-hitting report by the Special Investigating Unit (SIU) into the Digital Vibes contract-rigging scandal that the circumstances in which the department awarded the deal were irregular and breached procurement rules set out in the Public Finance Management Act. The SIU recommended disciplinary action be taken against six health department officials, including Maja. After disciplinary proceedings, Maja was demoted in July 2022 for 12 months. An amount of R10,000 was paid into Maja’s personal bank account from the Digital Vibes bank account on 1 November 2019, the day after the bid specification and evaluation committee, of which Maja was a member, met to evaluate competing bids for the communications contract. A month later a further R5,000 was paid into the same account from the Digital Vibes account. Maja said he had been unaware of the deposits until he was charged. The matter was postponed to 19 July.

Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only). Read too, Health spokesperson Popo Maja out on R5,000 bail after being implicated in Digital Vibes scandal, at TimesLIVE. Lees ook, Digital Vibes: Senior amptenaar in beskuldigdebank, by Maroela Media

Tshwane to kick out more than 50 metro cops, JMPD has already dismissed six cops

News24 reports that the acting chief of police at the Tshwane Metro Police Department (TMPD), Basil Nkhwashu, has warned that officers implicated in corruption will soon face the axe. "We issued a directive in Tshwane because it is a problem. I can assure you that, in the next two months, more than 50 of our members will be dismissed for corruption. That's how serious we are taking it," Nkhwashu said. Together with the administrative heads of the TMPD, Johannesburg Metro Police Department (JMPD) and Ekurhuleni Metro Police Department (EMPD), he made representations on fighting crime during a meeting with the provincial legislature's portfolio committee on community safety on Tuesday.   JMPD's Angie Mokasi told the committee that six officials had been dismissed for misconduct, fraud and corruption.   "We have also signed an MOU with the Independent Police Investigative Directorate. We are vetting our officers, but sometimes their reports come back after they have been employed. Even though the report only comes back afterward, we then dismiss the officers with criminal records," she advised. Gauteng's police head, Lieutenant-General Elias Mawela, said he believed that once the provincial Integrated Command Centre had been established it would assist all the law enforcement departments in fighting corruption. He added:   "We can no longer say [corruption] is a perception; it is a serious problem. We can only deal with it if we start to know where our members are daily. We can't have members who deploy themselves wherever they want." But, the committee's chairperson, Bandile Masuku, said the plan to use technology to improve policing in the province had become a "fairytale".

Read the full original of the report in the above regard by Iavan Pijoos at News24 (subscriber access only)