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, 8 September 2023.
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Major cuts needed to keep R350 grant going beyond next year Sunday Times reports that the government would have to raise VAT or close dozens of state programmes to lower spending enough to allow it to continue with the R350 social relief of distress (SRD) grant beyond March next year. This was the stark message believed to have been delivered to President Cyril Ramaphosa and his ministers at a top-level meeting with National Treasury officials last week. The meeting followed the release of a Treasury memo warning that the government faced unprecedented revenue and spending pressures as the economy faltered amid load-shedding, inflation and stagnant growth. Treasury is said to have suggested that the grant could be funded by a two-percentage point increase in VAT or the ending of dozens of government initiatives. These include visible policing, the expanded public works programme, the mine health and safety inspectorate, welfare support and environmental protection, and other intervention programmes on food security and informal settlement upgrades. The Public Servants Association said it was “extremely alarmed” at the proposed cuts. Nehawu’s Lwazi Nkolonzi reacted: “We cannot support such proposals as they will be to the detriment of our members, workers and the working class.” Cosatu’s Matthew Parks said: “We will not agree to any cuts that will weaken the capacity of the state to deliver public services.” Sadtu’s Mugwena Maluleke said the union was willing to engage with the government. Saftu’s Zwelinzima Vavi said the crisis was “self-inflicted”. Read the full original of the report in the above regard by Khulekani Magubane, Amanda Khoza & Kgothatso Madisa at Sunday Times (subscriber access only) Far-reaching Treasury proposals on reducing the size of government include closure or merging of departments Sunday Times reports that the National Treasury has drafted a raft of proposals to drastically reduce the number of government departments and entities to cut spending. The aim is the closure or merging of departments and entities that serve a similar mandate or are unlikely to fulfil their mandates. The proposals, if accepted, could save the country about R17bn in the medium-term expenditure framework (MTEF). This would inevitably lead to retrenchments. Among the reconfiguration proposals is the closure of the department of sports, arts & culture and incorporating it in the department of basic education at national and provincial level. There is also a proposal to close the department of public works & infrastructure, leaving departments to manage their own buildings and asset registries. It is suggested that the departments of tourism and trade, industry & competition (DTIC) be merged. The department of women, youth & persons with disabilities is proposed to be turned into divisions in the Presidency or in the department of social development. The same is proposed for the department of planning, monitoring & evaluation, which could be merged with either the Presidency or the department of public service & administration. The department of small business development should become a division in the DTIC. Entities that could be merged or closed include the Road Traffic Management Corporation, which would go to the department of transport. The government is also understood to be proposing merging Brand SA, SA Tourism, Trade Investment SA, Export Marketing and Investment Assistance and the department of international relations & co-operation’s foreign marketing programme to establish a new entity. Government Communications & Information Services (GCIS) would become a division in the Presidency. A single human rights body could house the SA Human Rights Commission, the commissions for gender equality and for the promotion and protection of the rights of cultural, religious and linguistic communities as well as the Pan South African Language Board. Denel and the Armaments Corporation of SA (Armscor) could be merged to establish a new entity. There is also a view that the department of public enterprises (DPE) should be closed. Read the full original of the report in the above regard by Kgothatso Madisa at Sunday Times (subscriber access only) Saftu calls for national action in October against government budget cuts City Press reports that SA federation of Trade Unions (Saftu) general secretary Zwelinzima Vavi has called on labour unions, workers and the public to come together and demonstrate against reported budget cuts by National Treasury when the medium-term budget policy statement is delivered in October by Finance Minister Enoch Godongwana. The Treasury has reportedly instructed departments to cut budgets by up to 15%, suspend filling all vacancies and make cuts in infrastructure programmes because government has blown its budget. Speaking on the sidelines of the 28th Nedlac summit held on Friday, Vavi said that labour could not agree to government solving a crisis it had created itself by implementing spending cuts to the detriment of the workers and the poor in the country. In his view, the finances of government would not be in a precarious position if it had invested in infrastructure. Vavi said: “The problem is that government itself is on an investment strike and it’s allowed the private sector to be on an investment strike. We’re now sitting at around investment of only 14% to GDP (2022). We can’t grow the economy that way … Why isn’t government coming up with any infrastructure programme, considering the way things are falling apart in Johannesburg?” Cosatu president Zingiswa Losi also said budget cuts would not help resolve the economic crisis in the country. Economist Azar Jammine argued that there was no choice about extending and increasing the R350 social relief of grant because of the levels of poverty and unemployment in the country. He added: “Regarding the NHI scheme, studies have shown that it can cost up to R500 billion extra. That becomes totally unaffordable – and the same goes for the basic income grant.” However, Losi reckoned the country could afford the NHI if bloated salaries of senior government officials and MPs were trimmed. “What exactly do these people do while they’re earning a salary?” she asked. Read the full original of the report in the above regard by Dimakatso Leshoro at City Press (subscriber access only)
Nedlac faces an 'existential crisis', Mashatile blames ‘ideological positions’ Fin24 reports that frustration was palpable at the annual summit of the National Economic Development and Labour Council (Nedlac) on Friday. Nedlac is facing an "existential crisis", warned Business Unity SA (BUSA) CEO Cas Coovadia. It has been more than a year after President Cyril Ramaphosa pledged a social compact between the state, labour and business to tackle unemployment, sluggish growth and a host of other ills. It was supposed to have happened within 100 days. But there has been little progress and a lot of frustration at Nedlac, the forum that is supposed to reach a consensus on policy. The social compact has reportedly already gone through 11 drafts, without any agreement. A key sticking point is labour market reforms. In his address, Deputy President Paul Mashatile said there have been agreements between business and government, but the biggest challenge was about ideological positions among social partner "in respect of the path to growth, which have not shifted despite the enormous crisis the country faces". He went on to say: “We must summon enough bravery to discuss the matter openly to prevent the ticking time bomb of poverty, inequality and joblessness from going off." Nedlac executive director Lisa Seftel said the partners mostly agreed on what needed to be done in the short term, but they did not agree on the long-term programme to turn the economy around. The summit also highlighted Nedlac's constraints as a policy-formulating body to ensure legislative reform. Only a third of bills since 2015/16 that have passed through Nedlac have become law. Read the full original of the report in the above regard by Na'ilah Ebrahim at Fin24 Make social compact circle bigger, Mashatile pleads at Nedlac summit Business Times reports that the deadline for the establishment of a social compact has not been met, but according to Deputy President Paul Mashatile, the recent pledge of CEOs to assist the government with logistical challenges, critical infrastructure interventions and the fight against crime and corruption is encouraging. “Since assuming the position of deputy president, I have witnessed encouraging moves towards social compacting, such as the recent commitment of CEOs to work with the government to reconstruct the economy,” he noted at the National Economic Development and Labour Council (Nedlac) summit on Friday. In July, CEOs representing 115 companies committed to assist the government. The social compact was conceptualised to foster commitment between the government, business, labour and civil society to build a growing, inclusive economy and developmental state. However, achieving it has eluded the government and other stakeholders. Mashatile said he did not believe there should be a finite list of stakeholders or that all social compacts had to be tripartite or tripartite plus one. “The sector master plans on sugar, agriculture, clothing, retail and more recently the renewable energy sector often have many signatories, including partners that are not national or not in Nedlac, but can bring something or gain something from committing to a common plan,” the deputy president pointed out. Also at Friday's summit was minister of employment & labour Thulas Nxesi, who urged delegates to see beyond their narrow interests when working on the social compact and to seek solutions to benefit all stakeholders. “We can’t sit in our corners and be fundamentalists,” he said. Read the full original of the report in the above regard by Khulekani Magubane at Business Times (subscriber access only) Only a third of bills that passed through Nedlac have become law Fin24 reports that the annual summit of the National Economic Development and Labour Council (Nedlac) on Friday highlighted the statutory organisation’s constraints as a policy-formulating body to ensure legislative reform. "Bill implementation is taking too long. The bigger problem is that the government is not tabling the bills," said Nedlac executive director Lisa Seftel. Only a third of bills since 2015/16 that have passed through Nedlac have become law. Department of Employment and Labour (DEL) Minister Thembelani Thulas Nxesi said some of the legislative reforms discussed included improving the functioning of the Labour Court, which has experienced severe backlogs and overworked judges. "The issue of backlogs at the labour court has compromised workers with few overworked judges. Cases have gone three to four years because there are no judges," Nxesi lamented. Deputy President Paul said urgent intervention was required to tackle a labour force inherited from apartheid. He opined: "The current condition of the labour market indicates the abiding legacy of our apartheid past. We have inherited a labour force characterised by racial and gender inequities, skills shortages, and high unemployment rates." Read the full original of the report in the above regard by Na'ilah Ebrahim at Fin24 Nxesi tells Nedlac Summit in wake of Joburg tragedies that ‘We need to plan and be prepared’ EWN writes that a recent gas explosion in Braamfontein as well as a deadly fire in the Johannesburg CBD have placed the country’s infrastructure crisis and emergency response in sharp focus. Labour Minister Thulas Nxesi used the 28th National Economic Development and Labour Council (Nedlac) Summit to address the tragedies. He said government, businesses and the labour sector needed to address shortfalls in the country’s crisis-management systems. “Whether these events are natural, man-made or climate-induced – which at some point was man-made – we have to accept them as part of our new normal. We need to plan better and be more prepared,” Nxesi told delegates. Deputy President Paul Mashatile said the devastating floods and drought in parts of the country also pointed to a bigger problem: “This tells us that climate change is here. The government’s response has been to prepare for a just transition from the world as we know it, to one which is friendlier to the environment and ultimately gives our children a safe future.” Read the original of the report in the above regard by Nokukhanya Mntambo at EWN
City of Tshwane bus services set to resume on Tuesday EWN reports that according to the City of Tshwane, its bus services will resume operation this week. The metro suspended both the Tshwane bus service and A Re Yeng operations after drivers affiliated with the SA Municipal Workers’ Union (Samwu) embarked on a strike. The industrial action, which was declared unlawful and illegal by the Labour Court, has been ongoing for almost two months. At the start of the strike, some buses were pelted with stones while drivers were attacked. The indefinite bus suspension has impacted hundreds of Tshwane residents who have been left stranded. Roads and transport MMC Katlego Mathebe said the buses would return to the roads on Tuesday. He added: "The illegal strike violence has left many of our commuters stranded and inconvenienced. It's for this reason suspension of bus services cannot go on for any longer.” Workers are demanding implementation of a 5.4% increase as agreed upon at the bargaining council, which the City of Tshwane has said it cannot afford. Read the original of the report in the above regard by Veronica Mokhoali at EWN Other internet posting(s) in this news category
De Beers eyes five-year agreement even as diamond strike looms Fin24 reports that Anglo American subsidiary De Beers said on Friday it was looking to secure a five-year wage deal with the National Union of Mineworkers (NUM). This as union considered an offer amid the looming threat of a strike at the diamond producer’s Venetia Mine and its sorting and sales business. The NUM said on Tuesday it had begun a mobilisation process among its 1,500 members, with the union demanding a wage increase of 9%, while De Beers was offering 6%. The union added that members would not accept less than 9%, and had progressively moved down from a demand of 25%. After four months of talks, a dispute has been declared with the CCMA. De Beers said on Friday the only outstanding issue was wages. "We are confident that through continued engagement with the union and our employees we will reach a sustainable settlement with the NUM," it indicated. Read the full original of the report in the above regard compiled by Karl Gernetzky at Fin24. Read too, De Beers upbeat that talks with union will avert strike at Venetia, at BusinessLive
Public servants warned against dipping into retirement pot Business Times reports that former acting director-general at the National Treasury, Ismail Momoniat, has warned that public servants who withdraw early from their retirement savings after the two-pot system starts in March next year need to be aware of the perils thereof. “I’m hoping none of you withdraw funds when the government allows you to withdraw funds because if you do, you’re going to end up very poor later and rely on someone in your family to help you. When you withdraw funds, you are suddenly surrounded by vultures and you’ve got to watch out for that,” he said. Addressing members of the Federation of Unions of SA (Fedusa) at its political school last week, Momoniat said the two-pot system was for relief if a public servant had a genuine emergency. He advised that those wishing to withdraw from retirement funds should consult a financial adviser before doing so to ensure they made the right decision. The two-pot system will include a savings component that can be accessed before retirement, without leaving employment. The lump sum withdrawal of the savings component at retirement will be subject to lump-sum benefit rates. Old Mutual Corporate executive Nceba Pupuma agreed that the two-pot system needed to be managed properly or members would borrow from their future, possibly leaving them with less money than they needed. Read the full original of the report in the above regard by Khulekani Magubane at Business Times (subscriber access only)
Unisa suspends supply chain manager pending investigation into allegations of serious misconduct City Press reports that the University of SA (Unisa) has placed its head of supply chain management under precautionary suspension, pending an investigation into allegations of serious misconduct. The decision to suspend Mungedzi Nkuna last week came as Unisa lost its court bid to interdict Higher Education, Science and Innovation Minister Blade Nzimande Nzimande from placing the organisation under administration. Nzimande has cited corruption and serious breaches of governance, management and administration as reasons to bring in an administrator. In the letter of suspension, Unisa vice-chancellor Puleng LenkaBula, wrote that it had come to her attention as the principal and vice-chancellor, as well as vice-principal of finance, supply chain management and business enterprise, that Nkuna had contravened and violated the provisions of the Construction Industry Development Board Act. “According to section 22(3) of the act, 38 of 2000, all construction contracts above the prescribed tender value must be recorded on the register of projects,” the letter indicated. Through its monitoring tools, the university has identified construction tenders which had not been advertised or registered, nor reported for completion, termination or cancellation. This was consequently a contravention of the legislation's prescripts. Read the full original of the report in the above regard by Abram Mashego at City Press
Nine arrested at Eskom’s Kusile power station for alleged coal theft, fraud Fin24 reports that nine people were arrested at Kusile power station on Thursday for alleged fraud and theft of coal. Among those arrested were eight weighbridge operators, not employed by Eskom, and a coal truck driver, who are expected to appear in court at a later date. The suspects have been detained at the Phola police station. The nine were arrested after a tip-off that coal haulers would be bypassing Kusile – but without offloading the coal that had been ordered. This sparked an investigation by the police, as well as an internal Eskom investigation that was supported by the Bidvest Protea Coin Investigation team. Eskom said on Friday: "Investigations revealed that the weighbridge operators would process weighbridge transactions without the coal hauler having entered the power station to offload the coal. Kusile Power Station would, however, be invoiced for the coal ordered but not received." The power utility anticipates further arrests. Botse Sikhwitshi, acting general manager for security at Eskom, said the arrests were a "significant step in our fight against crime in Eskom". Read the full original of the report in the above regard compiled by Marelise van der Merwe at Fin24 Two Hawks officers arrested for allegedly demanding R400,000 bribe from Eastern Cape businessman News24 reports that two Eastern Cape Hawks officials were scheduled to appear in the Mthatha Specialised Commercial Crime Court on Friday to face charges of corruption after they allegedly attempted to solicit a R400,000 bribe. The sergeant and captain, both in their 40s, were arrested by their colleagues during an undercover operation on Thursday. Allegations are that on 31 July 2023 the complainant in the case received a call from one of the suspects, who introduced himself as a Hawks official in Gauteng with the rank of a captain. He said he wanted to meet the complainant because the department of labour had opened a case against his company. On 4 August, the complainant received another call from the same official demanding an amount of R400,000, which the complainant reportedly said he did not have. On 5 September, the complainant received a further call from the same official to set up a meeting in Mthatha to which he was told to bring an amount of R50,000 for the docket to be destroyed and the case thus closed. The matter was reported to the Hawks and an undercover operation was conducted. The two officers were arrested immediately after the meeting and they allegedly were found to have R10,000 in their possession. Read the full original of the report in the above regard compiled by Nicole McCain at News24 Other internet posting(s) in this news category
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