In our roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 15 September 2023.
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Transnet woes place up to 35,000 coal jobs at risk Business Times reports that up to 35,000 coal mining jobs could be on the line due to export constraints on the coal corridor as a result of Transnet weaknesses. According to coal miner Seriti Power, production at its export mines has been hampered by the inability to transport more coal by rail and it has issued a section 189 retrenchment notice at its Klipspruit colliery in Mpumalanga, affecting 605 workers. In the notice issued on 11 September, Seriti’s Ndumi Khoza proposed restructuring the Klipspruit colliery, saying it was struggling with increased production costs and the depressed coal price environment. Brendon Hubbard of ClucasGray Investment Management commented that mining companies could not keep mining volumes at the same level if they could not sell their coal. “They have to start curtailing production and planning early mine closures, and that leads to retrenchments,” he noted. According to Hubbard, the coal industry was facing a double whammy of rail constraints and load-shedding. “Of the 93,000 people who work in the coal sector, somewhere between 25,000 and 35,000 could be retrenched. These are big numbers.” He said allowing the private sector to take over the running of key export rail lines was the only solution to the crisis. National Union of Mineworkers (NUM) highveld region deputy secretary Thapelo Malekutu said workers were bearing the brunt of a failing logistics system. The union is pushing for the opening of the freight rail network to the private sector. Malekutu said NUM was engaged in wage negotiations with several coal miners and all of them were rejecting increased wage demands because they were sitting with stocks they could not rail. Read the full original of the report in the above regard by Dineo Faku at Business Times Durban Chamber of Commerce and Industry calls for axing of Transnet CEO and executives Fin24 reports that the Durban Chamber of Commerce and Industry (DCCI) has called on the Public Enterprises Minister Pravin Gordhan to remove Transnet’s CEO Portia Derby, accusing her of sabotaging businesses through lack of service delivery. In a letter dated 12 September and signed by Palesa Phili, CEO of the DCCI, the business community of eThekwini said it had reached a point where it could "no longer tolerate" Derby's behaviour which, it said, was "clearly geared towards sabotaging businesses, through the lack of service delivery with the current port infrastructure". The DCCI said that it believed Derby, as well as the head of Transnet Freight Rail, Sizakele Mzimela, and Transnet National Ports Authority CEO, Pepi Silinga, did not have the best interests of the business community at heart. Transnet’s executive team "have proven time and time again that they are incompetent … Businesses are collapsing and losing revenue daily … we cannot allow this to continue any longer", the letter indicated. The plea came on top of calls from the Minerals Council SA for the removal of Derby and Mzimela in a letter sent to the former Transnet board chairperson in December last year. Transnet said it would meet with the DCCI to address its concerns. Earlier this month, Gordhan tasked the new Transnet board with conducting a sweeping review of the organisation. Read the full original of the report in the above regard by Lisa Steyn at Fin24. Read too, Transnet CEO gets removal call from Durban Chamber, at Moneyweb
Cabinet not budging on Treasury’s budget cut proposals, economist warns of financial crash News24 reports that much-needed budget cuts look set to be dead in the water as Cabinet is refusing to budge on proposals to rein in spending, especially on police programmes and the massive public sector wage bill. With the 2024 general election less than a year away, the public sector wage bill cannot be tampered with because the ANC could lose support from its alliance partner Cosatu, with whom thousands of public servants are affiliated. More police officers will also be needed to respond to election-related, violence while increasing taxes, including a reported 2% VAT increase, will hit consumers hard. A reliable source indicated: "There has been big resistance to the plans of Treasury from the whole of Cabinet. Many of the cutbacks will hurt departments especially the police. All resources are needed to capacitate the police as crime levels are high. There are also the elections next year which always requires more money." While the National Treasury is scratching its head to find money to fill the budget shortfall, the government is forking out around R37 billion in 2023/24 budget to fund public servant salary increases. Minister in the Presidency Khumbudzo Ntshavheni last week said Cabinet wasn't looking at cutting any government programmes. "We do not want to create the impression that there is a crisis in South Africa and that the country is going to collapse. South Africa is not going to collapse," she said. Economist Dawie Roodt said South Africans needed to understand that the country was headed for a cash crunch. Read the full original of the report in the above regard by Jason Felix at News24 (subscriber access only). Read too, Cabinet rejects treasury’s cuts, at Mail & Guardian (subscriber access only)
Eskom acting CEO's role in R500m Fidelity security contract under scrutiny City Press reports that Eskom’s board is turning its attention to acting CEO Calib Cassim’s role in the tailor-made R500 million emergency security contract that was awarded to the Fidelity Services Group, which the Special Investigating Unit (SIU) has now found to be unlawful. A criminal investigation into Eskom’s suspended head of security, Advocate Karen Pillay, is also under way, for her role in the controversial contract. Last week, the SIU told Parliament’s standing committee on public accounts (Scopa) that its preliminary investigation into the Fidelity contract confirmed that it had been awarded to the security company without the approval of the Eskom board. It was previously reported that former CEO André de Ruyter, Pillay and former chief operating officer Jan Oberholzer had engineered the three-month emergency security deal to exclusively suit Fidelity, thus excluding any other service provider. Fidelity’s deal was conceived on the back of the infamous Fivaz initiative, which was unlawfully commissioned by De Ruyter to conduct covert operations at the power utility without the knowledge of the country’s state intelligence agencies. At the SIU’s feedback to Scopa, its head, Andy Mothibi, informed MPs that his unit would consult Eskom’s board on the action the utility should take against the executives – current and former – found to have been directly involved in appointing Fidelity without following proper procedures, while relying on the contents of an unlawfully conceived covert operation. Read the full original of the report in the above regard by Nkululeko Ncana at City Press (subscriber access only) Other internet posting(s) in this news category
Experts highlight gaps in legislation to clamp down on public servants doing business with the state News24 reports that as government looks to crack down on public servants doing business with the state, experts believe new legislation does not address the situation of employees who may not be directors of companies receiving tenders but who nonetheless are the ultimate beneficiaries. Parliament's Portfolio Committee on Public Service and Administration has been tasked with amendments to the Public Administration Management Act of 2014, to overhaul the public service. The amendments provide for the transfer and secondment of employees and provide clarification regarding the prohibition against employees conducting business with an organ of the state. While the government's intentions are clear, several organisations believe not enough is being done to prevent state employees from doing business with the state. Clause 5 of the bill seeks to make amendments to clarify the definitions of words or expressions of "organ of state", instead of state, and the definition of a director of a company. But, three organisations, the Public Affairs Research Institute (PARI), Public Service Accountability Monitor, The Ethics Institute (TEI) & Corruption Watch, believe the section should be strengthened to better safeguard the public administration from corruption.(details of their specific proposals are contained in the news article). The National Education, Health and Allied Workers' Union (Nehawu) has rejected the notion of merely amending the act to prevent public servants from conducting business with state "without addressing concern or elements that give rise to corruption and malfeasance". Read the full original of the report in the above regard by Jason Felix at News24
‘Protect our lives! End the attacks on paramedics’ Weekend Argus reports that across the country, paramedics have been falling victim to criminal attacks while on duty. As a result, an online petition calling for the government to protect paramedics has gained momentum since its launch in late August. Levy Leburu, the paramedic who launched the petition, pointed out that in the last decade, attacks on ambulance services and the like have grown at an alarming rate, but their safety has remained a casual consideration. ‘’I wrote a letter to the Health Professional Council of SA (HPCSA) 13 years ago, asking them if we should carry a firearm, as a precaution, to protect ourselves while we are on duty. It was out of sight that we were being targeted while on duty,’’ reported Leburu. He indicated that the answer to his request was no, even though paramedics continued to face danger in the communities they served. ‘’Paramedics are an essential service provided in South Africa, responding to emergencies to save lives and risking theirs. We demand compulsory accompanying by armed private security or police for all paramedics. Protect our lives! End the attacks on paramedics,’’ exhorted Leburu. Western Cape Health Department spokesperson Mark van der Heever said there are various engagements around the safety of EMS staff on a national level, and on a provincial level, and the safety of paramedics was a high priority for the Western Cape Government. Read the full original of the report in the above regard by Zolani Sinxo at Weekend Argus Other internet posting(s) in this news category
At least 68 nabbed on Saturday for illegal mining in Mpumalanga IOL reports that at least 68 suspected illegal miners between the ages 19 and 54 were nabbed during Operation Shanela which was conducted in Sabie, Mpumalanga on Saturday. Provincial spokesperson Colonel Donald Mdhluli said amongst those arrested, two were nabbed for human trafficking, another were charged for possession of unlicensed firearms with ammunition, and eight were arrested for kidnapping. Mdhluli said the arrest came after a victim from Lesotho came to the Sabie Police Station in August to report a case of kidnapping. “An investigation was thoroughly conducted then after information was gathered, the team coordinated as well as executed a sting operation in the early hours of Saturday. When members arrived at the site, they managed to arrest the alleged illegal miners also known as zama-zamas. Two firearms with ammunition were found amongst the suspects,” he reported. Mdhluli went on to add that preliminary investigation revealed that two of the suspects were allegedly involved in trafficking people from Lesotho and using them for illegal mining in Sabie area. The suspects are expected to appear at the Sabie Magistrate's Court on Monday. Read the full original of the report in the above regard by Brenda Masilela at IOL
Nehawu opposes 'illegal' reappointment of Mchunu as acting Social Development director general City Press reports that Social Development Minister Lindiwe Zulu’s determination to appoint her department’s acting director-general, Linton Mchunu, on a permanent basis has been taken further in that she allegedly instructed the human resources department to resubmit her motivation for the appointment to the Department of Public Service and Administration (DPSA). Her human resources manager, Deven Chinappan, has meanwhile issued an internal memorandum, requesting Zulu’s approval of the reappointment of Mchunu as acting director-general from 4 October until March 2024. His current contract will expire at the end of September. Senior officials and members of trade union Nehawu say this has been Chinappan’s modus operandi for repeatedly extending his contract since 2020. It was reported last month that Zulu was accused of nepotism after allegedly lowering and favourably adjusting the appointment criteria to suit Mchunu, who served as her chief of staff in her previous portfolio of small business development manager. Objections to Zulu’s motivation for confirming Mchunu in his position included one from her deputy, Hendrietta Bogopane-Zulu, and forced the DPSA to withdraw his name from being confirmed by Cabinet. Nehawu has called on the department to halt the process of reappointing Mchunu as acting director-general. “The reappointment is unlawful and goes against the prescripts of the public service regulations in terms of an acting duration,” claimed the union’s Lwazi Nkolonzi. However, the department has defended his appointment and said all regulatory provisions had been compiled with. Read the full original of the report in the above regard by Norman Masungwini at City Press (subscriber access only)
Perks, pay and polite pupils lure SA teachers abroad Sunday Times reports that perks, good salaries and well-mannered pupils are among the reasons some South African teachers are choosing to take up jobs overseas. The United Arab Emirates (UAE), New Zealand, Australia, the UK, South Korea, China, Japan and Qatar are among the countries enticing local teachers. While there are no official figures on the number emigrating, an expert has warned that SA is losing some of its best young talent "at alarming rates". A first-year teacher with a four-year degree teaching at a government school locally earns R317,139 a year, while a teacher with two years’ experience earns R318,648. Schools in Abu Dhabi recently advertised posts for maths and art and design teachers with a tax-free salary of between R51,000 and R58,000. A private school in Australia, has advertised posts for SA teachers to teach English, maths, music, physical education and science. An annual salary of R1m is on offer to teachers with at least two years' teaching experience. Australia’s department of home affairs confirmed that 210 permanent visas were granted to South African teachers between July last year and June compared to 14 in the previous financial year. The Japanese embassy confirmed that 103 South African teachers were granted working visas to teach at government and private schools in 2021, and 152 in 2022. The Korean embassy granted foreign language instructor and teaching assistant visas to 420 South Africans in 2021, 1,263 last year and 992 so far this year. New Zealand and the UK are also enticing applicants with relocation grants of R113,000 and R239,000 respectively. Read the full original of the report in the above regard by Prega Govender at Sunday Times (subscriber access only)
Former Post Office Eastern Cape branch manager sentenced for theft of over R500,000 EWN reports that the Mthatha Specialised Commercial Crimes Court has convicted and sentenced a former SA Post Office (Sapo) branch manager for the theft of over half a million rand. Nonthuthuko Mfengwana defrauded a Sapo branch in the Eastern Cape in 2011 by manipulating the point sales system used to bank the branch’s money. The deposits failed to reflect in the Sapo bank account. An internal audit later found that the 62-year-old made a total of eight transactions, transferring the money to herself. Mfengwana was arrested in the same year for misappropriating post office funds. Provincial Hawks' spokesperson, Ndiphiwe Mhlakuvana, said Mfengwana made a number of court appearances before being convicted more than a decade later. “She was convicted and sentenced to ten years imprisonment, wholly suspended for five years on condition that she does not commit theft during the period of suspension,” Mhlakuvana reported. Read the full original of the report in the above regard by Nonthuthuko Mfengwana at EWN Two senior crime intelligence police officers fired for corruption, face criminal charges City Press reports that two senior SA Police Service (SAPS) Crime Intelligence officers, who were implicated in graft involving R54 million, including the procurement of spying equipment during the 2015 #FeesMustFall student protests, have been fired. According to sources within the security cluster, Lieutenant-Colonel Godfrey Mahwayi and Major-General Maanda Nemutanzhela were found guilty in a disciplinary inquiry and shown the door two weeks ago. The two officers, as well as Major-General Mankosana Makhele who was cleared by the inquiry, are also facing criminal charges. A court date has yet to be set. The three officers were allegedly involved in the procurement of communication software Ripjar, which was used to monitor protesting students on social media and Daedalus, a mobile communication encryption acquired by Crime Intelligence. I-View Integrated Solutions, which is owned by Inbanathan Kistiah, was awarded two contracts – one valued at just more than R33 million and another for R20 million between August and December 2016. Allegedly, procurement regulations were blatantly disregarded and ignored and proper processes were not followed. 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
Possible impeachment probe looms for ‘sex pest’ Eastern Cape judge president Sunday Times reports that the Judicial Conduct Committee has recommended that sexual harassment allegations against Eastern Cape judge president Selby Mbenenge be investigated by a judicial conduct tribunal – the body that looks into impeachable conduct. “We are satisfied that the complaint establishes a prima facie case, which if substantiated, is likely to result in a finding of gross misconduct,” the committee indicated last week. The tribunal would be the first of its kind to investigate allegations of sexual misconduct against a judge. “The contours of sexual harassment are complex and in this case, they would be best resolved in an investigation where the parties’ versions would be tested through cross-examination and possibly expert evidence,” said the committee. The committee’s ruling was the outcome of a complaint by a judge’s secretary, referred to as “AM”. She complained that between June 2021 and November last year, Mbenenge sent her unwelcome WhatsApp messages of a sexual nature and “crude pictures”. Some of the pictures and videos – including of people having sex – he later deleted, she said. The judge president has denied that he ever sent crude pictures. Mbenenge did not deny most of the messages but said they were not unwelcome. But AM rejected Mbenenge’s version that their chats were consensual. Unless Mbenenge appeals, the next step will be for the recommendation to be referred to the Judicial Service Commission, which will decide whether or not to endorse it. Read the full original of the report in the above regard by Franny Rabkin at Sunday Times (subscriber access only)
Productivity SA chair may lose job over R5bn UIF job creation deal Sunday Times reports that the fallout from the controversial R5bn job creation project concluded between the Unemployment Insurance Fund (UIF) and Thuja Capital Fund could see Thuja’s owner, Mthunzi Mdwaba, who also chairs the Department of Employment & Labour’s (DEL’s) entity Productivity SA, out of a job. Mdwaba stands accused of essentially taking money out of Productivity SA’s pockets, as his company’s agreement – to use a R5bn UIF grant to fund initiatives to save jobs and create new ones – was in direct competition with Productivity SA, which has the same mandate and also relies on UIF funds to do its work. DEL Minister Thulas Nxesi announced last week that he had ordered “consequence management” for senior officials in his department and its entities and it appears that Mdwaba could be in the firing line. It was exposed last year that the R5bn scheme would have benefited Thuja, of which Mdwaba’s musician son is also a director. In January, Nxesi ordered the suspension of the R5bn transaction and an independent forensic investigation into it. Meantime, Nxesi has informed his director-general, Thobile Lamati, that his fate is in the hands of President Cyril Ramaphosa. In a letter to Lamati, Nxesi said the forensic report had found irregularities in the department’s adjudication processes, for which Lamati was ultimately responsible. Lamati may be required to explain what action he took against other senior officials implicated in the scheme, including UIF commissioner Teboho Maruping. The latter was allegedly found to have ignored internal advice from the UIF's adjudication committees not to sign the agreement. Read the full original of the report in the above regard by Sabelo Skiti at Sunday Times (subscriber access only)
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