In our Tuesday morning roundup, see
summaries of our selection of recent South African
labour-related reports.
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NHI in current form will backfire and cut funding for healthcare, says Discovery BL Premium reports that Discovery CEO Adrian Gore warned on Monday that the National Health Insurance (NHI) Bill in its current form would diminish the funds available for healthcare, deter investment and stymie collaboration with the private sector. One of the most contentious aspects of the bill, which was passed by the National Council of Provinces last week, is the potential death knell it sounds for medical schemes. Section 33 of the Bill provides that once NHI is fully implemented, medical schemes will only be permitted to cover services that are not provided by NHI. That provision had far-reaching implications as it threatened the existence of medical schemes and jeopardised the sustainability of the private healthcare sector, said Gore. “This is the choke point of whether the private sector can exist. It is the clause that determines if we can collaborate. In its current form it is not workable,” he warned. Discovery wants section 33 to be amended so that medical schemes can continue to play a role. Discovery is not alone in voicing its concerns about section 33, which has been criticised by stakeholders ranging from organised business to civil society organisations. No other country in the world has legislated against the provision of healthcare services by the private sector, Gore pointed out. Several organisations, including Business Unity SA and Business for SA, have said they would petition President Cyril Ramaphosa not to sign the bill into law. Gore said Discovery had yet to decide whether to do so. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only). Read too, Go ahead with NHI - but not like this, says Discovery's Adrian Gore, at Fin24 NHI means 31% more tax and 69% less benefits for medical scheme members Moneyweb reports that the National Health Insurance (NHI) Bill last week got the nod from the National Council of Provinces and has now been plonked in the lap of President Cyril Ramaphosa. Other than expropriation without compensation, few statutory artefacts have elicited such exasperation from those most affected – medical schemes and their members, for the most part. Should the bill be assented to as it stands, it will almost certainly be challenged in the courts on the grounds of irrationality and constitutionality, primarily because the country cannot afford it. The financial impacts of the NHI are said to be horrifying. Discovery estimates the NHI will cost R859 billion for prescribed minimum benefits against the 2023 public healthcare budget of R233 billion. Apart from roughly R100 billion in tax credits and government employer medical scheme subsidies, roughly R528 billion will have to come from raising personal income tax. Expressed another way, that’s the equivalent of an 82% increase in personal income taxes. And this from a small and shrinking taxpayer base. This means medical scheme members will be required to pay 31% more tax and receive 69% less benefits in return. Nicholas Crisp, deputy director-general for the NHI, has argued that the 8.5% of GDP spent on health in SA could be allocated far more wisely if placed in a single pool. There is no disputing the gulf between private and public sector healthcare. The crucial issue is whether the NHI will be able to effectively assume the functions of the private sector when it comes to prescribed minimum benefits without pushing the country off a fiscal cliff. Read the full original of the report in the above regard by Ciaran Ryan at Moneyweb
Gold One miners resurface after four-day underground sit-in/hostage situation AFP reports that more than 400 gold miners, who had remained underground for four days amid tensions between unions and the mine owners, returned to the surface on Monday. The miners failed to emerge at the end of their night shift on Thursday at Gold One’s Springs operation, in a near repeat of a three-day protest in October. The miners all came out on Monday. Rescue teams helped several injured back up, Gold One’s head of legal affairs, Ziyaad Hassam reported. "We've got a lot of work to do with the unions to make sure it doesn't happen again," he added. Gold One said last week that a small group of balaclava-wearing employees had taken fellow workers "hostage", preventing them from returning to the surface. But the company and miners later said a majority appeared to have deliberately remained underground as part of a protest. One worker said conditions below ground had become unbearable, after four days with little food, leading the miners to end their protest. In October, a dispute over union representation at the mine led to more than 500 workers being trapped underground for almost three days. Some miners told AFP they wanted their union of choice, the Association of Mineworkers and Construction Union (Amcu), to be officially recognised. Disciplinary hearings over that incident led to the dismissal of about 50 workers. Read the full original of the report in the above regard at Fin24. Read too, I am pleased he is back’: Gold One miners resurface after four-day sit-in, at News24. En ook, Gold One: Werkers keer terug na oppervlak, by Maroela Media Gold One sit-in: White miners subjected to beatings underground, says National Union of Mineworkers IOL News reports in relation to the sit-in by more than 400 mineworkers at Gold One’s mine in Springs that workers were forcefully held against their will, while some of the miners were stripped and routinely assaulted. The situation which played out at the mine, east of Johannesburg, was both a hostage situation and a sit-in. It was resolved on Monday when all of the workers returned to the surface. In an interview with Newzroom Afrika prior to the resolution of the situation, Victor Ngwane, regional organiser of the National Union of Mineworkers (NUM), said there was no voluntary sit-in being staged, but a hostage situation characterised by severe flogging of the workers underground, with racial bias. He indicated in the interview: “What we know is that everyone who is underground is being held hostage now. There is no management managing the situation. The latest (information) is that it has now escalated to a racial issue. There are white miners underground who are being humiliated. They are undressed, and they are being whipped from time to time. The perpetrators say if they beat up these white guys, management and government will listen to them.” Ngwane added that over the weekend a severely beaten up “white miner” emerged from the shaft. “The white miner who was brutally beaten and came to surface, he was naked. He came to the surface naked. They beat him up and left him by the station, they (perpetrators) called for the cage to come down and he was returned to surface,” he reported. According to the NUM, the “white miner” had a note threatening that people would be killed if food was not sent underground within two hours. Ngwane said black miners were also being assaulted underground. He advised that during his visit to the mine over the weekend, Mineral Resources Minister Gwede Mantashe had seen the heavily assaulted “white miner”. Read the full original of the report in the above regard by Jonisayi Maromo at IOL News WeSizwe declares an end to the Bakubung mine sit-in BusinessLive reports that platinum metals mining company Wesizwe has announced an end to the illegal sit-in by an estimated 250 miners at its Bakubung Mine in the North West. It was reported last week that the disgruntled miners had barricaded themselves underground in an attempt to extract concessions from management as the company’s retrenchment process unfolded. On Monday, Bakubung’s parent company, Wesizwe, told shareholders that all employees had returned safely to the surface after the illegal sit-in at the mine on Wednesday. “Employees returned to surface on Friday, 8 December 2023 at approximately 11pm following discussions between management and union leadership. They were all given medical attention and cleared of any potential harm,” Wesizwe indicated in a statement. On 27 November, the Bakubung mine entered into retrenchment consultations that could potentially affect 571 employees at different staff levels in all areas of the business. A week later, employees embarked on the illegal sit-in, choosing not to return to the surface at the end of their shift. They cited unresolved issues from the August unprotected strike at the mine, which went on for five weeks. The workers demanded that their pay be benchmarked with that of the industry, claiming their pay was far less than their peers in the sector. Other grievances included changes to the minimum requested remuneration for employees, changes to employees’ benefits, subsidies and working conditions. Read the full original of the report in the above regard by Michelle Gumede at BusinessLive
Retrenchment consultations currently underway or completed In the course of an article on mining retrenchments, Business Times summarised retrenchment consultations known to be underway or to have been completed. According to the report, Wesizwe Platinum is the latest miner to announce it will enter into section 189 consultations at one of its mines, Bakubung, to restructure operations – a move that could potentially affect 571 employees. Sibanye-Stillwater said the week before last that it had managed to limit layoffs at its Kloof 4 shaft, a gold operation in Westonaria, to 575 employees. It also warned in October that it might cut more than 4,000 jobs at its struggling local platinum group metals (PGM) operations. Anglo American is restructuring its global corporate office, including in SA. Its subsidiary Kumba Iron Ore is also cutting jobs. In September, Seriti Resources’ Klipspruit mine and Glencore’s iMpunzi coal complex announced job cuts, blaming Transnet Freight Rail’s underperformance, which has resulted in lower volumes being railed to ports. Steelmaker ArcelorMittal SA is closing operations in Newcastle and Vereeniging. About 3,500 jobs are on the line. The SA Post Office’s business rescue plan has been approved by creditors and will result in branches being reduced by 600, with 6,000 workers losing their jobs. Packaging manufacturer Nampak has announced it will decrease headcount across the entire organisation. Telkom announced in June that 1,200 employees had accepted voluntary severance packages as part of a restructuring process. Read the full original of the report in the above regard by Dineo Faku at Business Times (subscriber access only)
KZN education department battling to fill vacancies The Witness reports that the KwaZulu-Natal (KZN) Department of Education (DOE) has revealed that it currently has more than 3,000 educator vacancies, with close to 700 schools currently without permanent principals. Responding to parliamentary questions posed by the DA, KZN Education MEC Mbali Frazer said the 3,198 vacancies included those of teachers, principals, deputy principals and departmental heads. Of the vacancies, 1,215 were for department heads, 685 were for principals, 389 were for deputy principals and 909 were for teachers. The KZN department, which has the highest number of pupils in the country, is one of the departments which has been forced to reallocate funds due to slashed budget allocations in the wake of depleting government funds. However, the DA’s Imran Keeka said there was no excuse for not filling the vacancies as they were funded. “While millions of KZN’s learners are unwittingly disadvantaged as a result of inadequate political leadership within KZN’s educational system, MEC Frazer and her department continue to blame budget cuts,” he stated. The 3,198 vacancies exist despite the fact that the department has in recent months intensified efforts to fill school vacancies. Since the beginning of the year, the department has filled 2,570 teacher vacancies and 74 departmental heads posts. Read the full original of the report in the above regard by Clive Ndou at The Witness
KZN youth acquire furniture manufacturing skills The Witness reports that the KwaZulu-Natal (KZN) Department of Public Work’s course on furniture manufacturing not only creates employment, but its new furniture-making plant will enable the government to save millions on furniture procurement. Speaking at the graduation of students from the department’s 12-month furniture manufacturing training course, KZN Public Works MEC Sipho “KK” Nkosi said the course was proof that the provincial government was committed to empowering the province’s youth. Nkosi pointed out that apart from being able to generate an income for themselves and their families, the graduates would also be able to create work opportunities for other unemployed youth. The course was part of the department’s Expanded Public Works Programme (EPWP). The KZN government has been spending millions on the procurement of furniture from the private sector. The department, which has established a furniture manufacturing plant, will now be able to produce the furniture required by provincial department and other government entities in KZN. “The province, through the Department of Education, will recycle old and broken school furniture using the EPWP participants to create work opportunities,” Nkosi explained. The department has already registered the graduates as part of a co-operative. Read the full original of the report in the above regard by Clive Ndou at The Witness
University of Fort Hare’s Director of Investigations and Vetting, Isaac Plaatjies, denied bail in murder case IOL News reports that Isaac Plaatjies, the University of Fort Hare’s (UFH’s) Director of Investigations and Vetting, has been denied bail. Plaatjies, 56, is one of ten accused of the murder of Petrus Roets, UFH fleet manager, and the bodyguard of the university’s vice-chancellor, Richard Vesele. Plaatjies was arrested on 20 November. The National Prosecuting Authority said the ruling on his bail was delivered in the Dimbaza Magistrate’s Court on Monday. In addition to murder, Plaatjies has also been charged with the attempted murder of Vice-Chancellor Professor Sakhele Buhlungu and Deputy VC, Renuka Vithal. Providing more insight into Monday’s court proceedings, NPA provincial spokesperson Luxolo Tyali said: “Magistrate Zwelethu Ngetu agreed with prosecutions that the State has a strong case against Plaatjies and he may interfere with witnesses, more especially given that he had been working closely with the investigating team, thus privy to sensitive information about the case.” Plaatjies did not testify in support of his bail application, neither did he justify about his communication with the one of alleged hitmen. Each of the accused faces two counts of murder, three counts of attempted murder, reckless discharge of a firearm, theft of a motor vehicle, and unlawful possession of firearms and ammunition. Two of the accused are additionally charged with fraud. Read the full original of the report in the above regard by Jolene Marriah-Maharaj at IOL News
Eight suspects, including officials from Eastern Cape premier’s office, nabbed for alleged tender fraud The Citizen reports that eight suspects, including high-ranking officials from the Eastern Cape premier’s office, were arrested on Monday in relation to allegations of fraud, forgery, utterance, money laundering, and contravention of the Public Finance Management Act (PFMA). The suspects, aged between 43 and 71, were nabbed during the early hours of Monday in Gauteng. Hawks spokesperson Captain Yolisa Mgolodela indicated: “It is alleged that in January 2016, the Department of Education requested the Eastern Cape Office of the Premier to assist on an emergency procurement of 72 temporary classrooms and furniture to be deployed in the Gqeberha and Uitenhage areas.” A company was awarded the more than R20 million temporary classroom and furniture tender. Information was then received implicating senior officials in following improper procurement processes during the appointment of the company, and that the preferred service provider was closely linked to senior officials in the office of the premier. “Further allegations are that the delivery of the said classrooms was not completed within the province, but funds allocated accordingly were exhausted,” Mgolodela said. The Hawks confirmed on Monday that the eight suspects were in transit to the Eastern Cape, where they would make their first court appearance on Tuesday at the Zwelitsha Magistrate’s Court. Read the full original of the report in the above regard by Chulumanco Mahamba at The Citizen. Read too, Eight high-ranking officials, some from Eastern Cape Office of the Premier, arrested over R20 million tender fraud allegations, at IOL News UIF Ters fraudster sentenced to 15 years, blames ‘abusive’ stepfather for crimes Mail & Guardian reports that Dennis Modika, who stole R5.5 million from the Covid-19 temporary employee relief scheme (Ters), failed with his “longshot” of blaming illness and an “abusive” stepfather for his crimes as he was slapped with 15 years’ imprisonment. On Friday, Magistrate AK Ramalal told the Johannesburg commercial crimes court that the seriousness of Modika’s misdeeds could not be overemphasised as he had not considered the effect of his actions on society. Pleading for a lesser sentence and a non-custodial jail term, Modika, through his legal representative, pointed out that he had four minor children who were dependent on him, adding that he suffered from chronic epilepsy. Modika also blamed his “abusive” stepfather for his crimes. Ramalal rubbished the claims, saying blaming his stepfather was a “longshot”, because he generally had a stable upbringing. Ramalal said it was clear that Modika had committed the crimes for the betterment of his own life as he had bought a Toyota Quantum minibus, a VW Golf 5 and a luxury Mercedes-Benz sedan with the ill-gotten gains. Detailing the theft, prosecutor Frans Mhlongo said the fraudster’s crime spree was halted by a call from a person who was unable to claim benefits because his particulars appeared on Modika’s online profile as an employee – which was not the case. Read the full original of the report in the above regard by Mandisa Ndlovu at Mail & Guardian Corrupt Upington traffic cop’s sentence “laughable” says judge GroundUp reports that a Northern Cape High Court judge has cautioned that direct imprisonment must be the norm when people convicted of corruption were sentenced. Judge Mpho Mamosebo, with Acting Judge AD Olivier concurring, described as “laughable” a sentence imposed by a lower court on an Upington traffic officer, who had demanded a R1,000 bribe from a motorist. The officer was fined R10,000, payable in monthly instalments of R1,000, or two years imprisonment. On appeal by the local Director of National Prosecutions, the court said the sentence was “fatally flawed and not judicial”. The court increased the sentence to a fine of R60,000, to be paid by the end of January 2024, or to three year’s imprisonment. Judge Mamosebo noted that traffic officer Oscar Bongela had already paid a portion of the fine previously imposed, however, she said, jail should be the norm. “I wish to issue this serious warning. This sentencing approach must in no way serve as a precedent. Direct imprisonment ought to be the norm,” she warned. Bongela, who had been a traffic officer for 17 years at the time, was convicted along with colleague Lebogang Tosa of corruption in the local regional court in September 2020. They were both fined R10,000 or two years imprisonment. They were also given three-year, wholly suspended sentences. The DPP, in the appeal, said the sentences were shockingly lenient and ignored precedent in such matters. Bongela did not participate in the appeal. Tosa died before the DPP’s appeal was heard. Read the full original of the report in the above regard by Tania Broughton at GroundUp
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