In our Tuesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Nxesi seeks answers from UIF commissioner & labour DG on why he shouldn't suspend them over R5bn investment TimesLIVE reports that Department of Employment and Labour (DEL) Minister Thulas Nxesi has ordered a judicial review of the Unemployment Insurance Fund’s (UIF’s) controversial award of a R5bn investment in a company, Thuja Capital, which at the time existed only on paper. This is with a view to setting aside the award, intended for a job creation scheme and decided upon without due diligence. On Monday evening, Nxesi’s office confirmed he recently received a 225-page forensic report into the proposed R5bn transaction and it made damning findings, including that the UIF had not followed processes when striking the deal. Besides the court application to reverse the funding decision, Nxesi has also instructed his department to begin “consequence management” for staff found wanting in the awarding of the contract. “The minister has asked the responsible person/s to furnish him with written reasons why he should not suspend them,” Nxesi’s office indicated. Among those he has asked for reasons not to suspended them – the first step in a disciplinary process – are UIF commissioner Teboho Maruping and the DEL director-general Thobile Lamati. Nxesi said: “I have no doubt in my mind that consequence management must be implemented to prevent further waste of state resources. The employer/employee processes will ensue henceforth and consequently we are unable to divulge details until internal processes are concluded.” Among further measures Nxesi intends taking in line with the forensic investigation’s recommendations are more stringent due diligence to be conducted on proposals and a new declarations regime for officials who sit on adjudication and evaluation committees. Read the full original of the report in the above regard by Sabelo Skiti at TimesLIVE
Local government bargaining council dismisses Tshwane metro’s wage exemption application BL Premium reports that the SA Local Government Bargaining Council (SALGBC) has dismissed an application by the cash-strapped Tshwane metro to be exempted from implementing the last leg of a multi-term wage deal reached in the council in 2021. City spokesperson Selby Bokaba said the ruling was disappointing as the metro had presented “solid arguments” supported by evidence that the increases were unaffordable. He went on to indicate: “This ruling clearly provides grounds for review. The city will immediately begin the requisite work to approach the Labour Court on an urgent basis to review this ruling.” In a 12-page arbitration award, dated 10 September, SALGBC senior commissioner Eleanor Hambidge noted that the Tshwane metro had submitted that there was no budgeting funding for the increase. However, she found that adequate provision had indeed been made for the increase in the 2023/24 budget. Hambidge added: “I am further persuaded to decline this exemption application, as granting such has the potential to undermine centralised collective bargaining in this sector.” Tshwane employees who are members of the SA Municipal Workers Union (Samwu) have been on strike since 26 July, demanding that the metro implement a 5.4% wage increase, being the last leg of the 2021 wage agreement. Samwu’s Dumisane Magagula welcomed the decision to dismiss Tshwane’s “frivolous exemption application” and implored the metro management to “do the right thing and comply with the collective agreement and the SALGBC ruling”. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only). Read too, Tshwane budget sinks exemption application, at Moneyweb. En ook, Tshwane-metro móét opdok vir salarisverhogings, by Maroela Media Growing calls for Tshwane municipal strike to be brought to an end\ Pretoria News reports that AfriForum has joined scores of voices calling for an end to the strike action by City of Tshwane workers, which is in its seventh week. Employees affiliated to the SA Municipal Workers’ Union (Samwu) have downed tools to demand a pay increase in line with a multi-year bargaining council agreement. Recently the Congress of the People (Cope) called on the Public Protector and the SA Human Rights Commission to intervene between the City and the striking workers. Samwu has also called for an end to the protest while the DA has threatened legal action if the strike does not end. AfriForum has now written to Police Minister Bheki Cele and the national police commissioner General Fannie Masemola to stop the striking workers from interrupting service delivery in the capital. The organisation has requested that law enforcement provide security for refuse removal workers so they can continue with providing a service. Rubbish has been piling up in the streets of the capital in recent weeks because of the strike, while other services are also suffering. A letter penned by AfriForum’s legal representatives has demanded that Cele and Masemola enforce the court ruling that bars the workers from the unlawful strike action and return to work. It added that the police should mobilise and allocate additional manpower “with immediate effect”. AfriForum has given Cele and Masemola until Friday this week to commit to undertaking the action demanded from them. Meantime, the City has taken the decision to resume both Tshwane Bus Service and A Re Yeng operations, effective from Tuesday. Read the full original of the report in the above regard by Mashudu Sadike at Pretoria News
Polokwane City team bus in an accident in Monday – no serious injuries reported City Press reports that a Polokwane City bus carrying the football team’s players crashed after it collided with another vehicle on Monday. The accident happened on Marshall Street near the Polokwane City Centre while the bus was on its way to training. According to an insider, there were no serious injuries, with a few players only treated for trauma. The incident apparently led to the cancellation of the team’s training sessions on Monday. Images from the scene of the accident show a badly damaged bus and a heavily dented 4x4 bakkie. In 2012, while still playing in the NFD, four City players died, and several others were injured after the club’s team bus got involved in an accident outside Polokwane while on their way home from playing a match. In 2015, City players escaped injury after their team bus was involved in a minor accident. City were promoted to the DStv Premiership at the start of the current season. Read the full original of the report in the above regard by Tiisetso Malepa and see photos of the crash at City Press Farm workers march against importation into SA of pesticides banned in EU GroundUp reports that about 200 women working in agriculture held a protest march in Paarl on Friday, calling on European company Bayer to stop producing and exporting pesticides to SA. Scores of pesticide products that are banned from use in the European Union (EU) are being exported to and used in SA. The protesters marched to the head office of Bayer, a German pharmaceutical and biotechnology company. They carried placards that read: “Bayer, your pesticides are deadly” and “End double standards”. The march was organised by the Women on Farms Project (WFP), an organisation working with women farm workers and farm dwellers in the Western Cape. WFP’s Katrina Claasen said they get a lot of complaints from women on the farms about asthma, sinus problems, and skin irritation on their hands after working with crops that had been sprayed with pesticides. WFP director Colette Solomon said after doing research in 2017 the organisation found that many farm workers and dwellers were exposed to pesticides. In 2019, the organisation started focusing on getting the SA government to ban 67 pesticides that were already banned in the EU. In May last year women marched in Worcester calling for this ban. In September 2022, the national Department of Agriculture, Land Reform and Rural Development announced it would start phasing out certain pesticides and ban them completely by June 2024. Read the full original of the report in the above regard by Liezl Human at GroundUp Other internet posting(s) in this news category
An astonishing 71% of shareholders vote against TFG’s executive pay policy Moneyweb reports that an astonishing 71.17% of TFG shareholders who participated at the retail group’s annual general meeting (AGM) last Thursday voted against its executive remuneration policy. This was nearly double the number of shareholders (40%) who dissented on this resolution last year. The non-binding resolution saw 78% of the group’s total shares voted, with some 4% of shareholders abstaining. The outcome was unprecedented, and among the highest ever level of ‘no’ votes received by JSE-listed companies on their remuneration resolutions. Shareholders are required to weigh in on companies’ remuneration policies as well as their implementation in two separate non-binding advisory votes. At TFG, less than 29% of those who voted were in favour of the group’s pay policy. Generally, this signals displeasure at the factors used in determining the remuneration of executives. TFG also failed to achieve the ‘required’ 75% level on its remuneration implementation report as only 56.67% of shareholders who participated were in favour, while 43.33% voted against. Companies are required to formally canvas dissenting shareholders if they fail to achieve the 75% threshold, but this process seldom yields meaningful participation. In 2023, TFG CEO Anthony Thunström was paid a total of R63.88 million, which included R31.445 million in deferred incentives (under the long-term scheme). CFO Bongiwe Ntuli was paid a total of R29.497 million, which included R14.79 million in deferred incentives. Read the full original of the report in the above regard at Moneyweb
Emigration worsens skills shortage in SA’s national payment industry BL Premium reports that according to the Payment Association of SA (Pasa), SA’s national payment system, the backbone of the country’s financial system, is grappling with a skills shortage problem, worsened by emigration of skilled personnel. A Pasa spokesperson said the demand for knowledge, experience and an in-depth understanding of the payments industry far outweighed the supply. The skills shortage comes at a time when the country is looking at modernising the industry and building a more inclusive payments system amid a rapidly changing global payments landscape characterised by the emergence of disruptive technologies, increased cyberthreats, regulation, and consumer demands for faster, cost-effective payments. Pasa CEO Ghita Erling indicated in the organisation’s 2022 annual report: “As part of our efforts to understand and mitigate this risk, we are engaging with multiple industry players, and initiated a needs analysis study to gain insight into the industry’s different resource requirements and what is needed to build capacity in the payments system. The outcomes of the study will be used to develop a comprehensive, industry wide capacity-building strategy.” According to Pasa, more than R500bn is settled through the national payment system daily, with consumers and corporates having a choice of about 18 different payment systems, which jointly form part of the system, to complete transactions. These payment systems are governed and regulated by Pasa and range from low-value debit card transactions to high-value bond exchange payments. Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive (subscriber access only) Other internet posting(s) in this news category
Solidarity Research Institute survey shows medical professionals ‘fiercely opposed’ to NHI A recently released report by the Solidarity Research Institute (SRI) indicates deep-seated distrust on the part of medical professionals of National Health Insurance (NHI) plans. With health care workers having gained more knowledge about the NHI, their disapproval of the scheme is said to have increased sharply. Moreover, an overwhelming 99% of the respondents are also deeply concerned about the government’s ability to administer and manage the NHI. The report is the product of a fourth Solidarity study that measured healthcare workers’ understanding of and attitudes towards NHI. The 2023 study follows those undertaken in 2021, 2019 and 2018. Participants in the study came from diverse medical professions and demographic groups. While more than half of them recognised the unaffordability of medical funds for the majority of citizens, they were, for various reasons, concerned about the impact of NHI as a substitute. An overwhelming 94% of the respondents believed the successful implementation of the NHI was unlikely. The distrust in the NHI was such that 94% of respondents believed private health practitioners might decide to go and work abroad. According to Welthagen, 19% have already initiated the emigration process. She also indicated that corruption was considered to be the main obstacle to the NHI’s feasibility. “For this reason, health care workers are not only suspicious of the NHI; they are against it,” Welthagen explained. The deadline for submission of comments to the National Council of Provinces on the draft NHI legislation is the end of this week. Read Solidarity’s press release in regard to the survey and access the full report at Politicsweb. Lees ook, Medici hewig gekant teen NGV, by Maroela Media
ANC heads to the Constitutional Court over cadre deployment records BL Premium reports that the Democratic Alliance (DA) has dismissed as “frivolous” the ANC’s decision to approach the Constitutional Court (ConCourt) to appeal against a lower-court ruling on its controversial cadre deployment policy. This comes the Supreme Court of Appeal last week dismissed ANC attempts to appeal against two rulings by the High Court in Johannesburg forcing the ANC to hand over records of its cadre deployment committee since 1 January 2013, when President Cyril Ramaphosa became chair. The DA has long advocated the abolishment of the policy, which it says is at the centre of the weakening of state institutions through the deployment of cadres who often lack the skills and experience to run government agencies, enterprises and departments. The DA maintains that through the policy the ANC illegally interferes in the appointment processes to ensure its cadres are appointed on the basis of their loyalty to the governing party, rather than merit and skill. In the final part of the state capture commission report released in June 2022, commission chair and chief justice Raymond Zondo declared the policy unconstitutional and illegal. The DA is also awaiting a ruling in a second court application, “where we have asked the Pretoria high court to declare ANC cadre deployment unconstitutional and unlawful.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
Mkhwebane becomes first Public Protector to be removed from post News24 reports that Busisiwe Mkhwebane has become the first Public Protector to be removed from her post. The National Assembly voted on Monday, with 318 votes for her removal and 43 against her removal, thus achieving the required two-thirds majority. This followed an arduous Section 194 impeachment process, which culminated last month in several findings against her. The Section 194 Committee found her guilty of misconduct and incompetence and recommended her removal. The charges drew on Mkhwebane's conduct during the investigations, as well as the subsequent litigation, which resulted in scathing findings against her. The committee found her guilty of misconduct on all four charges, with the ANC, DA, IFP, FF Plus and ACDP supporting her removal. The EFF, UDM, ATM and Al Jamah-ah were opposed to it. The Section 194 process was characterised by Mkhwebane's war of attrition with the committee. Ever-litigious, Mkhwebane has indicated that she intends to take the committee's report on judicial review. Her term would have expired on 14 October, at which time she would have qualified for a gratuity of around R10 million. Read the full original of the report in the above regard by Jan Gerber & Karyn Maughan at News24. Read too, Parliament removes suspended public protector Busisiwe Mkhwebane, at TimesLIVE. En ook, Mkhwebane kry die trekpas as OB, by Maroela Media Other internet posting(s) in this news category
Litigation over DDG’s dismissal after minister was stuck in lift amounts to over R500,000 Cape Times reports that taxpayers have paid over R500,000 on litigation involving the dismissal of deputy director-general Nelly Letsholonyane by Human Settlements Minister Mmamoloko Kubayi. Letsholonyane’s contract was terminated in April after the minister was stuck in a lift for an hour. In June, the Labour Court ordered Kubayi to immediately reinstate Letsholonyane after it found that she had been unlawfully dismissed. The minister has since petitioned the Judge President for leave to appeal. In a reply to a parliamentary question, Kubayi said the legal costs stood at R502,818. “These included the cost of the main application, application for leave to appeal, the application for the execution of the order of court in terms of Section 18 (3) of Superior Courts Act, and initiation of a petition to the Judge President for leave to appeal,” Kubati advised. She claimed the dismissal of Letsholonyane was informed, among other reasons, by the unauthorised disclosure of confidential information about staff members that led to grievances being lodged. She denied that the dismissal was a revenge exercise. Kubayi added that she had been advised that the technical issues in the matter were of some legal significance as there were conflicting views on whether or not the Labour Court had the jurisdiction to hear an alleged unlawful dismissal case. Read the full original of the report in the above regard by Mayibongwe Maqhina at Cape Times
Golden Arrow Bus Services to hike fares by 2.7% as operational costs rise TimesLIVE reports that rising operational costs, including fuel prices, will see Golden Arrow Bus Services’ (GABS’s) passenger fares in Cape Town increase on average by 2.7% from 18 September. The pricing of pensioners' products will not increase. “We remain cognisant of the effect of fare increases on our passengers and only implement increases when all cost-saving options have been exhausted and absorbing operational cost increases is no longer possible,” said GABS. The company confirmed rising fuel prices were partially to blame. It indicated: “Rising operational input costs, such as fuel and a legacy of implementing fare increases much lower than industry inflation has placed significant strain on the company’s ability to provide the level of services our passengers expect and deserve. “Contractual rates paid by government have also decreased in real terms. Read the full original of the report in the above regard by Kim Swartz at TimesLIVE Other internet posting(s) in this news category
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