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 Friday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Eskom acting head of security Karen Pillay suspended Fin24 report that Eskom has placed its acting head of security Karen Pillay on precautionary suspension. This is apparently related to a R500 million emergency security contract awarded to Fidelity Services to investigate coal theft last year. According to senior Eskom sources, pressure came from the board to suspend Pillay. She continues to cooperate with a probe into the contract, according to the sources. The accusation is that Eskom did not follow proper procurement processes, but according to the power utility the contract was awarded in line with its procurement procedure and National Treasury directives for emergency procurement of services. Eskom said Fidelity was hired after its management received information about a potentially serious security risk to its operations and assets. While the initial contract price was R500 million, in the end the company paid only R250 million. Pillay joined Eskom in 2004 from the Special Investigating Unit. She started her career in the police. Read the original of the short report in the above regard by Lameez Omarjee at Fin24 Arrest André de Ruyter for corruption at Eskom, says NUM TimesLIVE reports that the National Union of Mineworkers (NUM) Highveld region has called for the arrest of former Eskom CEO André de Ruyter. This follows allegations that there was “corrupt activity of R500m that was afforded to security company Fidelity Services Group, using emergency procurement policy”. The union indicated: “The NUM Highveld region strongly believes that there is unfaithfulness displayed in this whole process, and we are calling for law enforcement to thoroughly investigate the matter and prosecute all the greedy looters.” Malekutu Motubatse, NUM Highveld regional chair, alleged that black managers at Eskom were “always associated with corruption while the opposite happens when it involves a manager of a different race”. He said: “What angers NUM Highveld region most is the fact that the tendering process ran only for three months. We are calling for law enforcement agencies to wake up and smell the coffee. De Ruyter must be arrested. The reason that he left the country is not because of his life being under threat, but because he is on a honeymoon, enjoying the R500m.” The union also called for investigations to be extended to the former COO Jan Oberholzer “as we believe that there was no need for Eskom to pay such an amount of money.” Read the full original of the report in the above regard by Kgaugelo Masweneng at TimesLIVE Eskom's Jan Oberholzer now managing projects at Kusile and Koeberg News24Wire reports that Parliament's Standing Committee on Public Accounts (Scopa) heard during a visit to Eskom headquarters on Wednesday that the power utility had inked a two-year contract with its former chief operating officer (COO) Jan Oberholzer to oversee projects at Kusile and Koeberg. Oberholzer officially retired in April this year, with the board indicating that it planned to scrap the position of COO upon his departure. Eskom's acting group CEO Calib Cassim told Scopa he had appointed Oberholzer on a contract basis to oversee the completion of critical projects at coal-fired power station Kusile and nuclear power plant Koeberg. Kusile is one of three power stations identified by Electricity Minister Kgosientsho Ramokgopa as crucial to ending load shedding. Koeberg's lifespan, meanwhile, is being extended. Cassim explained, "[Against the backdrop of load shedding challenges] I had to weigh up having someone with Jan's experience and what is at stake for Eskom and the country." Scopa chair Mkhuleko Hlengwa, however, responded that "one should not build systems around individuals" and that Eskom should ensure it had the necessary skills available internally. Read the original of the report in the above regard at Engineering News MPs fume at board of bankrupt Eskom, criticise 7% wage deal The Citizen reports that the Standing Committee on Public Accounts (Scopa) this week conducted an oversight visit at Eskom’s Megawatt Park headquarters and deliberated with board members on the state of the power utility. Acting group CEO Calib Cassim, who, along with other board members, faced a barrage of tough questions from MPs serving on Scopa, said he “fully agreed” with MP Robert Alfred Lees that the state-owned company could not operate without financial assistance from government. Said Cassim: “In terms of meeting its obligations, Eskom cannot do it without the government support. In the past few years, we have had equity injections of billions of rands. Now, we have a debt relief again – representing a significant amount of taxpayer’s money.” Despite its financial woes, Eskom has maintained a bloated staff complement and signed a three-year, 7% wage deal with unions – a move challenged by Lees. He said: “Employees should wish to protect their jobs by taking a decrease in salary, because the company is bankrupt. But you give them a 7% increase. Your employees should be there to make it work or leave. When you do a wage deal with unions, it must be beneficial to everyone. A 7% wage increase to a bloated staff complement – paid more than the market value – makes no sense when people cannot get electricity out of Eskom.” Less added: “I hope there is action to downsize your staff complement in line with the needs of the company.” Read the full original of the report in the above regard by Brian Sokutu at The Citizen (subscriber access only)
Major victory for Simunye Workers Forum with Labour Court ruling it can register as a trade union GroundUp reports that the Simunye Workers Forum (SWF) has won a major legal victory, with the Johannesburg Labour Court ruling that it can register as a trade union. The SWF has about 6,600 members, mainly casual workers, and the ruling by Judge Andre Van Niekerk means it can now formally represent its members in disputes, in wage negotiations and in matters before the CCMA. The forum went to court after the Registrar of Labour Relations refused to register it as a union. It was formed in 2015 and had its roots in the Casual Workers Advice Office (CWAO), a non-profit registered independent community advice office. At the end of 2020 the forum decided to apply for registration in terms of the Labour Relations Act (LRA). To that end, the forum adopted a constitution, opened a bank account and held an annual general meeting. Membership fees were fixed at R12.50 a month or R150 annually. In June 2022, its application to the Registrar was refused. Labour Court Judge Andre van Niekerk noted that the Registrar had refused to register the forum because its constitution allegedly did not meet the requirements of the LRA and the Registrar did not consider it to be a “genuine trade union” independent of the CWAO. But, he pointed out that nowhere in the LRA were trade unions barred from obtaining services from community advice offices or working in collaboration with them. The Registrar’s decision in this respect was “simply wrong”, the judge ruled. He noted that the labour market had changed since the LRA was passed and new forms of worker organisations “will inevitably emerge”. While the SWF’s structure was unique, that was not, in itself, a basis to reject the application. The judge ordered the Registrar to register the forum as a trade union within 14 days. Read the full original of the report in the above regard by Tania Broughton at GroundUp
Thirty-one Illegal miners die underground in disused Free State ventilation shaft The Citizen reports that at least 31 suspected illegal miners, believed to be Basotho nationals, have died in a ventilation Shaft 5 Virginia mine in Welkom, Free State province. The Department of Mineral Resources and Energy (DMRE) confirmed the incident, saying the miners died in a mine ventilation shaft last operational in the 1990s. The department said it received information that other illegal miners had retrieved three of the bodies and brought them to the surface. Previous owner of the mine, Harmony Gold Mining Company, and the department have assessed the situation and determined that methane levels were very high. “As such, it is currently too risky to dispatch a search team to the shaft. However, we are considering various options to deal with the situation speedily,” the department advised. “Although this is a unique and strange situation, all relevant stakeholders will endeavor to ensure that the suspected deceased illegal miners are brought to the surface,” it added. Read the full original of the report in the above regard compiled by Narissa Subramoney at The Citizen
SA salaries fell in May amid declining confidence, high inflation and load shedding woes Bloomberg reports that average salaries in SA declined last month as rising inflation, low business confidence levels and rolling power cuts continued to weigh on the labour market. The average nominal monthly salary measured in the BankservAfrica Take-home Pay Index slipped 2.7% from the year before to R14, 457 in May, while take-home pay adjusted for inflation fell 8.8% to a record low. "An environment of such low confidence is not conducive for job creation or comfortable wage increases," said Elize Kruger, an independent economist. South African business confidence has slumped for five consecutive quarters and is at its lowest level since a lockdown instituted during the height of the coronavirus pandemic, surveys conducted by Rand Merchant Bank and the Bureau for Economic Research show. The mood has been soured by the state power utility’s inability to meet demand for electricity, which has resulted in a series of outages. "The job market and salary adjustments are likely to remain lackluster for the remainder of the year, a scenario that could only exacerbate the unemployment crisis," Kruger said. Read the original of the short report in the above regard by Mpho Hlakudi at Fin24 Just Share study of eight listed companies highlights SA’s enormous vertical pay gap BL Premium reports that shareholder activist group Just Share has highlighted the so-called vertical pay gap prevalent in SA by focusing on the extreme pay disparities between the highest and lowest paid workers at eight JSE-listed companies. The advocacy group has for several years been lobbying the boards of directors of listed companies to disclose the wages of their lowest-paid workers alongside the remuneration details of their C-suite executives that they normally publish. Wage gap disclosure is not a legal requirement in SA and Just Share could find only eight companies that have started to disclose their internal minimum pay to allow for a vertical wage gap analysis. The eight listed companies that have thus far complied with Just Share’s request are Absa, Investec, the JSE Ltd, Nedbank, Old Mutual, Shoprite, Standard Bank, and Woolworths. Of those, Shoprite had the greatest vertical wage gap or the biggest difference between the company’s lowest disclosed salary and the CEO’s total remuneration. In 2022, Shoprite CEO Pieter Engelbrecht earned 1,081 times more than a worker earning the company’s internal minimum wage. Woolworths’ CEO earned 423 times the disclosed internal minimum pay of R85,500 per annum in 2022, followed by Standard Bank (258 times), Absa (230 times), Nedbank (176 times) and Old Mutual (123 times). While the King IV report on corporate governance recommends that companies ensure that “remuneration of executive management is fair and responsible in the context of overall employee remuneration in the organisation,” Just Share says most companies assess fairness by comparing their lowest wages to the statutory national minimum wage. The activist group also says SA companies typically resist pay gap disclosures by arguing it will be taken out of context or misinterpreted. Read the full original of the informative report in the above regard by Garth Theunissen at BusinessLive (subscriber access only)
Highly qualified automotive technicians becoming increasingly scarce, warns National Automobile Dealers’ Association Engineering News reports that highly qualified automotive technicians are becoming increasingly scarce in SA, with their training now encompassing not only internal combustion engines, but also hybrid technology and battery electric vehicles. With most modern cars having upwards of 30,000 parts, and being more of a computer-on-wheels than a people mover, training takes a very long time, with technicians continuing their training as new models and technologies are introduced. Knysna Toyota dealer Tom Esterhuizen noted: “Finding young people to become automotive technicians is not easy, primarily due to the stigma associated with technical trades in South Africa. Unlike in developed countries such as Germany and Switzerland, where artisans are highly regarded and respected, there is a negative perception surrounding such occupations in South Africa.” National Automobile Dealers’ Association (NADA) director Gary McCraw points out today's automotive technicians are highly specialised and far removed from the mechanic of the old days. They are also highly sought-after, with their training and retention costs a significant investment for dealerships. This demand also extends to markets abroad, as local training and qualifications both meet international standards. “The major challenge faced by dealerships is how to attract matriculants with maths and science to pursue careers as automotive technicians, and to remove the stigma attached to the technical trades, which have become more focused on lab-coats and laptops than overalls and ‘lappies’,” says McCraw. Read the full original of the report in the above regard at Engineering News R40m Youth in Chemicals programme established to train young people as artisans and entrepreneurs Engineering News reports that the Chemical Industries Education and Training Authority (Chieta) has signed a collaborative agreement with the National Youth Development Agency (NYDA) that will result in R40-million being invested into the establishment of a Youth in Chemicals programme to train young artisans. Under the terms of the agreement, the NYDA has invested R10-million and Chieta R30-million to train youth as artisans and entrepreneurs over the next few years. Organisations in the chemicals industries will be able to apply for discretionary grants to train more coded welders, refractory masons, electricians and boiler makers. Chieta CEO Yershen Pillay says this new programme is a fusion of artisanship and entrepreneurship, and is designed to train young artisans to be employers of youth and not simply employees. “We don’t want to train artisans to be job seekers, we want to train artisans to be job creators. Our Youth in Chemicals programme will train youth to be welders and boiler makers, while at the same time providing essential entrepreneurial skills to start their own small businesses,” explained Pillay. Chieta and the NYDA aim to support 2,000 artisans to become entrepreneurs over the next two years. The programme is expected to start in October. Read the full original of the report in the above regard at Engineering News Renewable energy skills shortage poses major challenge to sector’s growth Engineering News reports that the accurate determination of skills demand is becoming increasingly important as SA rolls out more renewable energy projects and transitions its energy system. Speaking during a recent webinar, Energy and Water Sector Education and Training Authority (EWSETA) CEO Mpho Mookapele said the entity usually received skewed information on what skills the country required as the renewable energy sector matured. She pointed out that this led to misallocated government funding and inadequate development of the correct skills. EWSETA has found that energy companies themselves often missed the key, but overlooked, skills required in the industry, such as marketing. Mookapele deemed it vital that different stakeholders in the value chain determined what SA required from a renewable energy skills perspective, and collate work skills plans. EWSETA has been working with the SA Wind Energy Association (SAWEA) and the SA Photovoltaic Industry Association (SAPVIA) to help determine the correct skills demand profile in the renewable energy sector. Government entities such as the Department of Mineral Resources and Energy (DMRE) and the Presidential Climate Commission have also been working to determine skills development requirements. EWSETA has devised an energy skills roadmap, which has consolidated a lot of research that has been conducted in SA. Additionally, EWSETA is also working with employers to either upskill their employees or drive access to opportunities for unemployed people. Read the full original of the report in the above regard by Engineering News Other internet posting(s) in this news category
Unisa council ‘not properly constituted’, suspended registrar claims in court papers TimesLIVE Premium reports that the suspended registrar of the University of South Africa (Unisa), Prof Steward Mothata, has asked the North Gauteng High Court to declare that the university’s council is no longer “properly constituted” after the resignation of several members. Mothata was placed on precautionary suspension by vice-chancellor, Prof Puleng LenkaBula, on 5 June for allegedly breaching confidentiality, gross abuse of office, gross dishonesty and gross insubordination and “giving and making false or damaging statements in the execution of his duties and/or in public”. He was also accused of “sabotaging the academic project and/or the business of the university” and “dereliction of duty” by failing to advise the council and its committees, as well as LenkaBula, on governance matters and the possible related risks. His suspension came in the wake of independent assessor Prof Themba Mosia’s report into the affairs of Unisa, which recommended that Unisa be placed under administration and the council and management be relieved of their duties. Mothata’s application to court will be made on 11 July. In his founding affidavit Mothata stated: “The vice-chancellor, in purportedly placing me on suspension, acted ultra vires since that power reposes in council. The vice-chancellor has no such authority and cannot exercise a power she does not in law have.” He said he made council aware on 5 June that it was no longer properly constituted. “The council rejected my guidance. It is abundantly clear that my suspension was as a result of my advice to council,” Mothata asserted. Read the full original of the report in the above regard by Prega Govender at TimesLIVE Premium (subscriber access only)
Four former Justice Department staffers found guilty of stealing almost R100,000 bail money from Gqeberha court IOL reports that four former Department of Justice and Constitutional Development employees were convicted of theft this week. Mzikazi Mahlalasa, Letitia Mack, Yonela Ntsaluba and Nomthandazo Takayi were convicted in the Gqeberha Specialised Commercial Crimes Court. According to the Hawks, a fifth accused died in March 2019. The theft took place between 21 August 2009 and 29 October 2010. Provincial Hawks spokesperson, Warrant Officer Ndiphiwe Mhlakuvana, reported: “The accused persons were employed by the Department of Justice and Constitutional Development in Criminal Section New Law Courts at Gqeberha. Their duties entailed receiving bail payments, issuing bail receipts and capturing monies on the accounting system. The accused connived and issued bail receipts and never captured the transactions on the accounting system. All the accused directed the cash into their personal accounts.” An investigation by the Gqeberha-based Serious Commercial Crime Investigation of the Hawks revealed that the department was prejudiced by more than R92,800. The accused were arrested in 2010 and were released on bail. After several court appearances, they were found guilty and they will be sentenced on 26 July. Read the full original of the report in the above regard by Jolene Marriah-Maharaj at IOL Twelve Limpopo officials arrested for issuing roadworthy certificates without having tested vehicles News24 reports that twelve Limpopo vehicle examiners and administration clerks have been arrested in connection with an investigation into the fraudulent issuing of vehicle roadworthy certificates. The arrests were made at various locations on Wednesday and were the culmination of a lengthy investigation by the Road Traffic Management Corporation's (RTMC) National Traffic Anti-Corruption Unit and the Hawks. RTMC spokesperson Simon Zwane said: "It is alleged that the suspects, who were employed by the privately-owned Polokwane vehicle testing station, manipulated and abused systems to issue roadworthy certificates for vehicles that were not physically presented to the station for testing. The offences were committed between 2019 and 2021." He added that the examiners and clerks had allegedly used the "identity document of an innocent person" to create an "impression that he had presented the vehicles at the testing station". Zwane explained further: “Test sheets would allegedly be filled as if the vehicles were tested, when in fact they were not.” The twelve accused were scheduled to appear in the Polokwane Commercial Crimes Court on Thursday to face multiple charges of fraud. Read the full original of the report in the above regard compiled by Nicole McCain at News24
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