In our Wednesday morning roundup, see
summaries of our selection of South African
labour-related reports.
Unemployment rate moving in wrong direction, reflecting a stagnant economy The Citizen writes that SA’s unemployment rate ticked higher in the last quarter of 2023 to 32.1% after half of South African industries recorded job losses. This indicated yet again that the country’s economy is in deep trouble. The latest data from Statistics SA showed that the official unemployment rate increased by 0.2 percentage points from 31.9% in the third quarter to 32.1% in the fourth quarter. The number of employed people fell by 22,000 compared to the third quarter to reach 16.7 million. The formal sector shed 128,000 jobs in the fourth quarter, followed by agriculture that shed 35,000, while the informal sector added 124,000 jobs and private households 18,000. Economist Jee-A van der Linde said the modest increase in private household employment suggested that households were taking strain as the high interest rate environment, together with elevated price inflation, stretched disposable incomes. “South Africa’s unemployment rate is moving in the wrong direction ahead of the upcoming elections, while mining companies’ retrenchment announcements in the first quarter of 2024 forecasts even more despair,” Van der Linde pointed out. Nedbank economists Johannes Khosa and Nicky Weimar noted that a decline in job creation drove the unemployment rate higher in the final quarter of 2023 after two consecutive quarters of decline. “The increase was driven by lower employment and a larger labour force. Concerningly, but not surprisingly, the job losses were driven by the formal sector, which shed 124,000 jobs, offsetting the 124,000 jobs created in the informal sector during the quarter.” However, they found it encouraging that the number of discouraged workers declined by a further 107,000, as less severe power disruptions and lower transport costs likely enabled more individuals to actively seek employment. Read the full original of the report in the above regard by Ina Opperman at The Citizen. Read too, SA’s jobless rate jumps to 32.1% in fourth quarter, at BusinessLive (subscriber access only). And also, Almost 8 million people now unemployed as jobless rate rises, at Fin24 SA's young population should be a boon – but new shock jobless data darkens outlook Fin24 reports that Statistics SA's latest figures show that almost one in every two South Africans younger than 35 are now jobless. "In countries with a large young population, society as a whole can benefit from these young people working and generating taxes, spending and savings that would permeate through the economy. In the case of SA, our large contingent of unemployed youth limits the positive impact that this demographic could have on the country's economic development," commented PwC economist Christie Viljoen. The shocking latest numbers mean there's a whole generation of people unable to support themselves, start saving or investing; and who will either never be able to build up a pension, or who will only begin a pension fund when it's too late to cushion them when they're too old to work. For the SA economy, that's said to be dire. It means increased social welfare and decreased economic activity for decades to come. It also means there are millions of people who will be marginalised. Youth aged 15 to 24 years and 25 to 34 years continued to have the highest unemployment rates, at 59.4% and 39.0% respectively, Stats SA said when it released fourth-quarter unemployment data on Tuesday. The total number of unemployed youth increased by 87,000 to 4.7 million quarter-on-quarter, while there was a decrease of 97,000 in the number of employed youth to 5.9 million. This resulted in an increase in the youth unemployment rate, by 0.9 of a percentage point to 44.3%. Read the full original of the report in the above regard by Renée Bonorchis at Fin24 Other internet posting(s) in this news category
Teacher recovering after ‘assault’ by pupil, 17, at Limpopo primary school TimesLIVE reports that a teacher is on the mend after he was allegedly viciously assaulted by a grade 7 pupil at a Limpopo school last week. The incident happened at Rammupudu Primary l in Tafelkop last Monday. Limpopo police said the alleged attack happened after the two got into a heated altercation over the removal of posters from the teacher's classroom: "The victim approached the suspect to find out the reasons for removing the materials from the board, and the suspect allegedly hit him with a piece of wooden table on the head. The victim sustained serious injuries." Police confirmed the 17-year-old was arrested and provincial education spokesperson Matome Taueatsoala confirmed the incident. He said the teacher had sustained a "very bad wound". The teacher received treatment and has since been discharged from hospital. He has been booked off work and continues to receive medical treatment. The pupil has been suspended "pending a disciplinary hearing" on 27 February. Read the full original of the report in the above regard by Khanyisile Ngcobo at TimesLIVE Other internet posting(s) in this news category
Continued impasse over wage negotiations makes it tricky for many Tuks students to attend classes News24 reports that striking University of Pretoria (UP) employees were accused of blocking students from entering the main campus on Tuesday morning for a second day in a row. The employees embarked on a strike last week, following a deadlock in negotiations between the National Education, Health and Allied Workers’ Union (Nehawu) and the university management over wage increases. On Monday, the protesting employees were accused of intimidating students and denying them access to the Hatfield campus. On Tuesday morning, the striking employees allegedly continued with such action. UP spokesperson Rikus Delport advised that the striking workers, assisted by non-UP workers, illegally blocked the entrances again until police intervened. But Nehawu Gauteng Provincial Secretary Mzikayise Tshontshi dismissed the reports that staff and students could not access the campus "as an attempt to crush the strike that started on 15 February, demanding better wages and conditions of service". He indicated: "As far we know, members are adhering to the picketing rules agreed between ourselves and the employer." Among other demands, the union is seeking a 7% wage increase, while the university has offered 4%. Read the full original of the report in the above regard by Alex Mitchley at News24. Lees ook, Veiligheid by UP prioriteit te midde van loonstaking, by Maroela Media
Kumba to cut up to 490 jobs as Transnet dysfunction forces it to pare back production Fin24 reports that Kumba Iron Ore was forced to slow its production during the last quarter of 2023 to reduce a growing stockpile prompted by railway woes. The Anglo American subsidiary, which employed about 11,000 people in 2022 including contractors, also announced on Tuesday that it would look to cut up to 490 jobs. It will moreover review some 160 supplying companies with the possibility that some of their services will be reduced or terminated. "During 2023, we already streamlined our office-based roles and given the required change to our production footprint in the medium term, we do also need to reconfigure the size of our workforce," CEO Mpumi Zikalala indicated. To match the current low railway capacity, Kumba has decided to keep its production at 35 million tonnes to 37 million tonnes over the next three years – on average a 12% cut. The restructuring and other initiatives would help reduce costs by up to R3 billion in the current financial year, said Zikalala. The National Union of Mineworkers (NUM) said on Tuesday said it was "highly perturbed and disappointed" by the announcement, accusing the miner of prioritizing profits over mineworkers and their families. It also expressed concern that the motivation was to replace labour intensive operations with mechanized ones. But it added it would approach retrenchment talks in good faith as it looks to save jobs. Within the Anglo stable, SA-focused Anglo American Platinum (Amplats) has also announced job cuts, while the group has also indicated that it is contemplating production cuts at De Beers. Read the full original of the report in the above regard by Sikonathi Mantshantsha at Fin24. Read too, Rail crisis forces Kumba Iron Ore to cut more jobs, at BusinessLive (subscriber access only) Illegal miners believed to be behind M1 highway robberies at Crown Interchange on Tuesday News24 reports that according to the Johannesburg Metro Police Department (JMPD), illegal miners were allegedly behind reported robberies on the M1 at the Crown Interchange on Tuesday. Several disturbing messages and voice notes about five armed men going from car to car and robbing motorists were widely shared on social media. In one of the voice notes, it was claimed some motorists had also crashed their cars and one was hit in the back of his head. The JMPD tactical response unit was then deployed to the area to search for the suspects. JMPD spokesperson Xolani Fihla reported: “During the search, a group of individuals was observed fleeing into a shaft on the embankment of the freeway. This group is suspected to be involved in illegal mining activities, and it is believed that the armed individuals responsible for robbing the motorists may be linked to this illegal mining activity.” National police commissioner General Fannie Masemola has since ordered the deployment of officers along Gauteng's highways and other strategic locations during peak hour traffic. Read the full original of the report in the above regard by Iavan Pijoos at News24. Read too, M1 highway robbery sparks urgent police action, at The Citizen. En ook, Polisie soek na bende wat motoriste in spitsverkeer beroof, by Maroela Media
MPs unanimously support two-pot retirement fund bill BL Premium reports that a bill overhauling SA’s retirement regime was adopted by all parties in the National Assembly on Tuesday, though several MPs warned of the danger of workers withdrawing too much money from their retirement funds, thus depleting their resources for retirement. In adopting the Revenue Laws Amendment Bill, which provides for the introduction of a so-called two-pot system on 1 September, MPs also urged retirement fund administrators to educate their members about the new system so they properly understood its implications for their savings. The bill will enable financially distressed workers access to a portion of their retirement savings without having to resign their jobs as they have been doing, with the bulk of their savings being retained in the fund for retirement. The bill underwent extensive public participation. The retirement industry supported it, though it objected to the earlier implementation date proposed by the committee. The early passage of the bill through parliament is critical to give fund administrators certainty about the legal framework for the new system as they will have to change fund rules to accommodate it. A second phase of retirement fund reform is envisaged by the National Treasury to allow retrenched workers access to some of their retirement funds after the introduction of the two-pot system. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only) Security breach leads to GEPF systems going offline as agency scrambles to safeguard information The Citizen reports that the Government Employees Pension Fund (GEPF) was compelled to shut down its systems after detecting an attempted unauthorised access. In a statement, the GEPF explained that the incident, which occurred on 16 February, prompted the Government Pensions Administration Agency (GPAA) to take immediate action to safeguard member information and benefits. The GEPF, responsible for administering pensions for government employees, notified its members, pensioners, and stakeholders about the system shutdown via an official statement on 16 February. In an update provided subsequently, the GPAA confirmed that the system shutdown was a response to an attempted security breach. Following the incident, all systems were taken offline to prevent any further unauthorised access and to initiate necessary security protocols. This rendered regional offices, call centres, and other service points inaccessible to clients seeking assistance with pension administration queries. The fund assured stakeholders that no payments were impacted by the incident, and pensioners would continue to receive their benefits as scheduled. Read the full original of the report in the above regard by Devina Haripersad at The Citizen
Solidarity says Godongwana knows how insane the NHI is, but asks if he dares to say so Solidarity expressed the hope on Tuesday that wisdom would prevail in Finance Minister Enoch Godongwana’s Budget Speech on Wednesday by him clearly stating that SA cannot afford National Health Insurance (NHI). The trade union noted that despite political pressure, the National Treasury had not yet given any indication in the run-up to the 2024 Budget Speech that it believed the NHI to be feasible at all. According to Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), SA’s tax revenue as a percentage of the gross domestic product (GDP) is already much higher than in almost every other country in the world, and taxpayers are therefore already paying more tax than what they can actually pay. “To now think the government can collect the approximate additional R300 billion which the NHI will cost through taxes is of course insane. The country has been maintaining a budget deficit for the past few years, which has caused national debt to rise further every year. Yet another major budget item will sink the country,” Du Buisson said. He emphasised that the state’s income already exceeded the limits of fairness of what it could collect, and the same could certainly be said of its expenditure. “The minister owes South Africans the truth. This he will do if, in his Budget Speech, he describes the NHI as a castle in the air, rather than telling with unfounded cadre positivity more tall stories about it,” Du Buisson said. Read Solidarity’s press statement in the above regard at Politicsweb. Lees ook, Begrotingsrede: Godongwana wéét hoe gek NGV is, maar durf hy dit sê? by Maroela Media
eThekwini sees red after employee caught sabotaging CCTV camera feed TimesLIVE reports that an eThekwini municipality employee who was caught last week damaging newly-upgraded cables that link servers and feeds to security CCTV cameras was arrested on Tuesday. The arrest came after the camera operator, 30, had been under investigation by the city’s disaster management unit, its integrity investigation unit and the police. The cameras are linked to the city’s emergency service control room, which monitors and detects crime. The city has opened a criminal case of theft, sabotage and vandalism of municipal infrastructure. The employee was also served with a notice of immediate suspension. The municipality late last year embarked on a project to repair and upgrade CCTV cameras in the city centre. The city’s disaster management and services head, Vincent Ngubane, said anyone founding tampering or sabotaging municipal infrastructure, including CCTV cameras, would be arrested. “This includes our own staff. Repairing damaged infrastructure is costly and is a major setback in the fight against crime,” said Ngubane. Read the full original of the report in the above regard by Mfundo Mkhize at SowetanLive KZN municipality official arrested for power theft by using her position to get her connection restored TimesLIVE reports that a KwaZulu-Natal (KZN) municipality official was arrested after allegedly leveraging her municipal position to repeatedly restore power after numerous disconnections. Mbeko Nzimande, 44, an uMgungundlovu district municipality communications department official, was arrested on Tuesday morning. She appeared in the Pietermaritzburg Magistrate's Court on Tuesday afternoon. According to the charge sheet, Nzimande is facing five counts of “tampering, damaging or destroying of essential infrastructure”. It is alleged that she owes the municipality more than R200,000 in electricity. According to sources, Nzimande would be disconnected by the municipality but would then call on a municipality contact to reconnect her power without paying. She was released on R1,000 bail and is due back in court on 4 April . More arrests are expected. Read the full original of the report in the above regard by Kaveel Singh at SowetanLive
Celebrated music teacher at Makhanda private school suspended amid sexual grooming charge News24 reports that a music teacher from the Diocesan School for Girls (DSG) in Makhanda, Eastern Cape, has been suspended after a case of sexual grooming was laid against him by a music student he started tutoring five years ago. In a communique to parents and staff on Monday, the school said the teacher was suspended after he notified the school head that a case had been opened against him. The victim, who did not attend the school, was an underage teen at the time of the alleged grooming. Eastern Cape police spokesperson Colonel Priscilla Naidu said a 20-year-old man opened a case of grooming under the Sexual Offences Act a week ago. "The incident started in 2019, when the victim was 16 years old. At the time, he was tutored by the alleged suspect, who was a choir intern conductor at a church. The victim was receiving organ lessons," Naidu indicated. The teacher, whose choirs have won numerous awards, was employed in 2021 at the school on a fixed-term contract that was later extended. The teacher has been placed on precautionary suspension pending an internal disciplinary inquiry and hearing. Read the full original of the report in the above regard by Tammy Petersen at News24
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