In our Wednesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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Labour and business sectors at loggerheads over government spending cuts City Press reports that ahead of Finance Minister Enoch Godongwana's tabling of his medium-term budget policy statement (MTBPS) in Parliament on Wednesday, trade unions and the business sector are at loggerheads over government spending. The National Treasury warned that spending cuts might be needed to counter revenue shortfalls and a wider-than-expected budget deficit. The Congress of SA Trade Unions (Cosatu) and the SA Federation of Trade Unions (Saftu) reiterated their calls for government to scrap proposed budget cuts. They said the solutions offered by Treasury would further decapacitate the economy, which was in desperate need of stimulus and capacitated public services. On the other hand, Business Unity SA (Busa) and Business Leadership SA (BLSA) expect Godongwana to commit government to fiscal discipline while focusing on structural reforms that will lead to economic growth. Cosatu said it understood the fiscal constraints facing government and the need to cut unnecessary spending, but it was concerned that further budget cuts in government spending, especially in social services, could stifle the economy, further weaken an already struggling government and undermine its ability to provide quality public and municipal services. Saftu questioned the honesty of Treasury's warning that SA was facing an impending fiscal cliff and spokesperson Trevor Shaku cited research from the Institute for Economic Justice (IEJ), which accused Treasury of overstating the dangers. Saftu called on government to increase the redistributive features of tax policy, such as corporate tax, and to introduce a capital gains tax, a luxury goods tax, and a tax category for the super-rich. Meanwhile, Busa’s Cas Coovadia said the warning that SA would run out of money by March 2024, unless it reduced its spending, should not be ignored. Business Leadership SA’s Busisiwe Mavuso said she expected the minister to hold the line, while also maintaining a balance between government spending and investing. Read the full original of the report in the above regard by Thapelo Lekabe at City Press (subscriber access only). Read too, Cut state spending only when totally necessary, Fedusa urges, at BusinessLive Other internet posting(s) in this news category
Cosatu will place the issue of decent work on Agoa summit agenda IOL News reports that Cosatu has welcomed the forthcoming African Growth and Opportunity Act (Agoa) summit in Johannesburg, saying it will boost job creation in a country mired in a deep fiscal crisis. The Agoa summit will start on 2 November and high-ranking officials from SA and the US will take part in the meeting. The labour federation indicated that, since it had been invited to take part in the summit for the first time together with other unions from Africa and the US, it would place the issue of decent work on the Agoa agenda. Cosatu pointed out that US companies currently operating in SA supported 450,000 jobs in various sectors of the economy and pointed out that Agoa “provides reduced tariff access for large volumes of South African goods to the US market, currently the world’s largest economy. Our mining, manufacturing, and, in particular, auto-manufacturing, clothing, jewellery, and agricultural exports have benefited from this favourable tariff regime.” However, the federation said that while it supported the extension of Agoa, SA’s non-aligned position in geopolitical matters must be respected. It added that SA must also expand its trade relations with BRICS members, Japan, the European Union, and Africa through the African Continental Free Trade Area. Agoa is renewed annually and extended for five-year terms. SA’s retention is currently subject to review as Agoa expires in 2025. Read the full original of the report in the above regard by Siyabonga Mkhwanazi at IOL News. Read too, Cosatu: Agoa must support Africa’s industrialization, at Mail & Guardian (subscriber access only)
Household food basket costs surge by R141.82 in one month The Citizen reports that the household food basket for low-income consumers increased by R141.82 in just one month during October. The food basket is part of the Household Affordability Index compiled by the Pietermaritzburg Economic Justice and Dignity Group from prices checked by women who live in poor communities at 47 supermarkets and 32 butcheries, in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba and Springbok. The basket is considered a reasonable proxy for a food basket that contains the most important typical foods most households try to buy each month, given affordability constraints. The basket is not nutritionally complete. The average cost of the household food basket was R5,297.58 in October, namely R141.81 (2.8%) more than in September when it cost R5,155.77 and R509.75 (10.6%) more than it cost in October last year when it was R4,787.83. The food basket cost more in all the areas where prices were checked: A worker earning the National Minimum Wage of R25,42 an hour and R203.36 for an 8-hour day would be unable to afford the food basket. In October, with 22 working days, a general worker earned R4,473.92. Read the full original of the report in the above regard by Ina Opperman at The Citizen. Lees ook, Aartappels, eiers jaag prys van kosmandjie op, by Maroela Media
Springboks to get handsome bonuses from SA Rugby for winning World Cup BusinessLive reports that Springbok players are expected to be smiling all the way to the bank after winning the Rugby World Cup in France due to the generous bonuses they agreed with SA Rugby. SA Rugby president Mark Alexander confirmed at the team’s arrival at OR Tambo International Airport on Tuesday that the players would get win bonuses. “World Rugby does not give prize money for the trophy, but we have win bonuses we planned four years in advance and they are taken care of by that. Our players receive prize money which we plan for four years in advance,” Alexander said. The government has often given financial rewards to teams or individuals who excel on the international stage, but sports minister Zizi Kodwa was non-committal on the issue. He praised SA Rugby for arranging the players’ bonuses early. Kodwa added: “The president [Cyril Ramaphosa] last night (Monday night), as part of recognition, declared December 15 a public holiday, and that’s recognition. You may not look at it from a monetary point of view and what we deserve as a country.” Read the full original of the report in the above regard by Mahlatse Mphahlele at BusinessLive Other internet posting(s) in this news category
Matjhabeng municipality finds the money to pay its workers GroundUp reports that workers at the Matjhabeng Local Municipality were finally paid on Tuesday morning following a bitter strike over unpaid salaries. It was reported last week that a number of protests and sit-ins led by the SA Municipal Workers’ Union (Samwu) had taken place after thousands of Matjhabeng workers, including the mayor, had not received their salaries for October. The municipality indicated that its banking account had been frozen a day before payments were due to be made. The municipality is battling with service providers who claim they are owed millions of rands. Many services in communities across Welkom and other towns under Matjhabeng municipality were brought to a halt as municipal employees demanded that they be paid immediately. The situation became tense on Friday morning after municipal manager Lonwabo Ngoqo wrote a letter stating that employees would have to wait until the end of the month. This led some workers to dump and burn rubbish in front of the municipal building. On Tuesday, Samuel Potsotso Liphoko of Samwu reported: “They have found the money so the workers can be paid. We do not know where they found the money from, but we are only concerned that workers must be paid.” He added: “All the workers went back to work on Tuesday just before 12 (noon) and we have stopped the strike. Should the same problem continue next month, we will again embark on a strike.” Read the full original of the report in the above regard by Becker Semela at GroundUp
Hundreds march in the rain in Durban on Tuesday to demand insourcing of municipal jobs GroundUp reports that over 300 workers marched in the pouring rain from King Dinuzulu Park to the city hall in Durban’s city centre on Tuesday, demanding, among other things, to be insourced by the eThekwini municipality. They marched under the banners of the Municipal and Allied Trade Union of SA (Matusa) and the SA Federation of Trade Unions (Saftu). According to their memorandum, the workers wanted security guards, water meter readers and those on contracts to the solid waste department to get permanent jobs at the municipality. Saftu general secretary Zwelinzima Vavi addressed marchers, claiming that workers at eThekwini municipality earned less than their counterparts in other metros such as Cape Town, Nelson Mandela and Johannesburg. Matusa president Thulani Ngwenya Matusa said the workers wanted the union to be recognised and they wanted to be paid on a higher salary scale. The marchers were told that their memorandum would be accepted by Thulani Mahlobo from the mayor’s office, but they demanded that the mayor should accept himself it. Thembo Ntuli from the mayor’s office eventually accepted the memorandum after two hours. He promised that the municipality would respond within a week. Read the full original of the report in the above regard by Tsoanelo Sefoloko at GroundUp
Solidarity’s ‘race agreement’ with government is made a court order Solidarity reports that its agreement with the government, which it said will drastically change the race policies of companies, was made an order of the court in the Labour Court in Johannesburg on Tuesday. The agreement came about after the trade union had lodged a complaint with the International Labour Organisation (ILO), an agency of the United Nations, against the government’s rigid approach to race. A mediation process between Solidarity and the SA government under the supervision of the ILO ensued, which eventually led to an agreement being reached. The court order states that the terms of the agreement must be published as regulations in the Government Gazette. Moreover, the agreement and the court order stipulate that no person may be dismissed or retrenched on the basis of race or as a result of race plans. It further stipulates that race policies must be temporary; that race may not be the only factor when plans are drafted; and that the pool of available skills as well as companies’ unique circumstances must be taken into account. Another provision lists the circumstances in terms of which a company may motivate and explain its non-compliance. According to Dr Dirk Hermann, Solidarity chief executive, the era during which only race demographics were set as targets, is a thing of the past. “Companies will have to go back to the drawing board to see to it that their race plans comply with the terms of the agreement with Solidarity and that they heed the court order. It gives clear guidelines on how race laws should be interpreted,” Hermann indicated. Read Solidarity’s press statement on the agreement at Politicsweb. Lees ook, Solidariteit se ‘ras-ooreenkoms’ met regering word hofbevel, by Maroela Media
SweepSouth report shows massive domestic worker job losses Personal Finance reports that the effects of SA’s power cuts, inflation, cost of living and brain drain have disproportionately affected domestic workers – 94% of whom are women. This information is contained in SweepSouth’s 2023 Report on Domestic Workers Pay and Work Conditions, released on Monday. Based on the responses of more than 5,500 participants, the sixth edition of the annual report reveals that the average domestic worker in SA is 37 years old and earns about R2,989 a month from domestic work as her only source of income. The report details the extent to which workers continue to sacrifice basic needs as costs outstrip earnings. “The average domestic worker spends around R694 more than she earns, is unable to save, has no medical aid and owes about R3,599 to shops, friends, and loan sharks, among others,” the reports indicates. Domestic workers suffered masses of job losses in the past year, with the leading cause of job losses coming from employers moving home and 59% of those employers moving overseas. "This represents a 15% increase in domestic workers who lost their means of income due to brain drain in South Africa this year, compared to 2022. Moreover, 68% of those who lost their jobs last year were not registered for the Unemployment Insurance Fund, and only 52% of those registered were able to submit successful claims,“ the report noted. “This motivates the urgent contemplation of universal unemployment benefits to ensure greater coverage and easier access,” said SweepSouth’s Luke Kannemeyer. “While South Africa has minimum wage and other labour legislation protecting domestic workers, the report indicates that this is often not adhered to. Without innovative ways to improve implementation and enforcement, domestic workers will not see much benefit,” Kannemeyer pointed out. Read the full original of the report in the above regard at Personal Finance
Microsoft to support 30m Africans, including 300,000 South Africans, to develop AI skills Engineering News reports that information technology multinational Microsoft, at its 'AI: A New Era' event on 30 October, announced plans to certify 30-million people in Africa in artificial intelligence- (AI-) related skills by 2025, and it has partnered with the Presidential Youth Employment Service (YES) to upskill 300,000 South African youths. "With an ecosystem and several research institutions and universities exploring AI applications in healthcare, finance and agriculture, South Africa is well positioned to harness the power of AI to drive economic growth and improve the lives of its citizens," Microsoft South Africa CEO Kalane Rampai said. The three pillars that underpin AI for Microsoft are democratising AI, responsible AI and upskilling, hence the partnership with YES. "The scale of the AI Youth Training Platform intervention, namely aiming to train 300,000 young people [in South Africa], underlines how we are democratising AI and aiming to leave behind as few people as possible. The courses will be aimed at novices and experts to expose them to AI and for them to explore a potential career in AI, as well as to see the potential in AI to solve some of our pressing social problems," Rampai explained. Young people who exit the formal training programme at YES will have an awareness of how AI can improve how they work and how this could become a career or profession moving forward. Those who complete the AI Expert Module and meet key criteria will be eligible for certification. Read the full original of the report in the above regard at Engineering News
Council for Medical Schemes loses court bid to stop Netcare, Discovery from selling prepaid doctor vouchers Fin24 reports that the Council for Medical Schemes (CMS) has lost its high court bid to interdict Netcare and Discovery Health from selling prepaid doctor consultation vouchers to South Africans who cannot afford medical aid. The CMS had previously directed the schemes to cease selling their vouchers, which were both launched in 2020. In the directive, the regulator said the two companies were conducting the business of medical schemes without the requisite approval. The companies appealed the directive as part of an internal CMS process. As the process unfolded, the CMS and the Registrar for Medical Schemes approached the North Gauteng High Court in July 2022, asking for an order that the companies be restrained from selling their prepaid vouchers. Judge Mandlenkosi Motha had to reckon with whether the CMS could bring an application "which is the subject matter of an internal appeal before the self-same council". He said in his 13 October ruling: "This court must decline the invitation to usurp the administration function of an organ of state. The applicants have failed to make out a case for exemption and their application is flawed. The matter must proceed before [an internal]… appeal and these applications must be dismissed." He also made a punitive cost order against the CMS and its registrar. Netcare and Discovery Health previously defended the vouchers as an innovative way to increase access to private healthcare for millions of South Africans who could not afford medical aid. Read the full original of the report in the above regard compiled by Ahmed Areff at Fin24 (subscriber access only)
Traffic officials and police top list of South African bribe-takers, Stats SA survey reveals City Press reports that a recent survey by Stats SA found that more than half of South Africans have expressed lower trust levels in the ability of the SA Police Service (SAPS) to combat the high levels of crime in the country. The Governance, Public Safety and Justice Survey, which was conducted between 2019/20 and 2022/23, found that 57.4% of respondents had lower trust levels in the police's ability to fight crime than those who did not use the services of the SAPS (66.8%). The survey, which was conducted among South Africans aged 16 and older living in private households in all nine provinces and residents in workers’ hostels, also found that traffic officers, followed by police officials and traffic centre officials, were the most likely to solicit bribes from citizens. The report stated: “Although the proportions remained relatively stable between the two periods, the absolute numbers revealed an increase in the instances of government officials seeking bribes, except for police officials.” The survey, released by Stats SA on Tuesday, primarily focuses on experiences of corruption within the public sector. It also includes data on the use, experience and satisfaction of government services, as well as trust in public institutions by South Africans. In terms of satisfaction levels in government and public institutions for the 2022/23 period, the report showed a range of approximately 61% to 90%, in contrast to the 2019/20 period when they ranged from 73% to 91%. Read the full original of the report in the above regard by Thapelo Lekabe at City Press (subscriber access only)
SAPS officer arrested by Ipid over JMPD cop’s Braamfontein nightclub murder in June IOL News reports that a police officer who allegedly shot dead a Joburg Metro Police (JMPD) officer outside a Braamfontein nightclub in June over a suspected love triangle, has been arrested by the Independent Police Investigative Directorate (Ipid). Ipid investigators arrested Constable Bongimpilo Nzuzu Bengu, 28, on Tuesday. Bengu is based at the visible policing unit at the Parkview police station. He was charged with murder for the fatal shooting of JMPD officer Sibusiso Zikalala, with whom he had become embroiled in an argument, leading to Zikalala being shot dead in front of his wife. The two officers were both off-duty when an altercation took place outside a nightclub on Juta Street in Braamfontein. Bengu is believed to be a former lover of Zikalala’s wife, and he and his friends allegedly blocked Zikalala’s way when he tried to drive off. Bengu was charged with murder and granted R5,000 bail in the Johannesburg Magistrate's Court. The proceedings were remanded to 25 January 2024 for further investigation. A video of the incident went viral on social media at the time. Read the full original of the report in the above regard by Sihle Mlambo at IOL News
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