In our roundup of weekend and recent reports,
see summaries of our selection of South African
labour-related stories that recently appeared.
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Outcry over ANC’s call for prescribed assets for retirement funds Business Times reports that asset managers have again warned that if the ANC carries through its manifesto pledge to force retirement and other funds to invest in state-owned enterprises and government-led infrastructure projects, it could increase risk for savers and result in lower returns. The governing party last week defended its 2024 elections manifesto pledge to “engage and direct financial institutions to invest a portion of their funds in industrialisation, infrastructure development and the economy, through prescribed assets”. The move would require an amendment to Regulation 28 of the Pension Fund Act. Zuko Godlimpi, deputy chair of the ANC’s economic policy formulation subcommittee, described the reaction to their asset prescription proposal as alarmist. “The reaction so far has been ‘oh no, they are raiding our pensions, they want us to buy government bonds’. The manifesto is not predicated on a lunatic misunderstanding of how markets function and how the economy functions,” he commented. Godlimpi said the ANC was trying to remedy an anomaly wherein the bulk of private retirement fund assets invested on the JSE were in the top 100 listed firms. This meant companies outside the top 100 did not have as much access to the country’s investments and savings. The Association for Savings and Investment South Africa (Asia) advised against the reintroduction of prescribed assets, saying it could result in unintended negative outcomes for retirement fund members and investors. The country abandoned the policy in 1989. It had been in place for more than three decades while external capital access was restricted. Read the full original of the report in the above regard by Tannur Anders & Khulekani Magubane at Business Times (subscriber access only)
Labour Court reins in unruly eThekwini workers Sunday Tribune reports that residents of eThekwini Municipality can expect municipal services to resume on Monday after a court interdict put a stop to unruly municipal workers who went on strike last week, leaving a trail of damage and destruction. The workers were demanding that their salary scales be benchmarked in line with their colleagues in other metros. The illegal strike by members of the SA Municipal Workers’ Union (Samwu) resulted in water, electricity and refuse collection services coming to a halt. The workers went on a rampage from Tuesday in various parts of the city, overturning dirt bins, scattering rubbish, barricading roads and burning tyres. The level of violence which accompanied the Samwu strike was so extreme, according to eThekwini Ratepayers and Residents Association’s Ish Prahladh, that two vehicles were badly damaged. DA caucus leader Thabani Mthethwa said a municipal worker had been shot in a drive-by shooting incident believed to be linked to the ongoing strike. However, police and the municipality could not confirm these accounts. Yet, the striking workers’ actions were captured in many videos and photos and shared widely on social media. On Friday, Samwu instructed its members to abandon the strike and return to work after the municipality had obtained an interdict from the Durban Labour Court preventing the participants of the illegal strike from acting violently. Samwu provincial secretary Nokubonga Dinga said they had received information about the court order on Thursday and shop stewards had told the members to return to work. “It is risky for them as they are not protected,” she pointed out. Read the full original of the report in the above regard by Bongani Hans at Sunday Tribune
Two more SANDF soldiers die in the DRC News24 reports that a SA National Defence Force (SANDF) soldier in the Democratic Republic of the Congo (DRC) used a service weapon to shoot another soldier and then shoot themself, the SANDF advised on Saturday. It said it had convened a board of inquiry to work with the UN Organisation Stabilisation Mission in the DRC (Monusco) to investigate the incident, which occurred on Thursday. This was the second tragedy to befall South African soldiers in the DRC this year. In February, two soldiers were killed and three injured in mortar fire. Meanwhile, an Oryx helicopter also came under fire while airborne in February but managed to land despite the injuries sustained by the crew and a medic. Read the full original of the short report in the above regard by Jenni Evans at News24 SANDF soldiers killed in DRC in Valentine's Day attack buried with military honours News24 reports that the SA National Defence Force (SANDF) has commemorated two officers who died on duty in the Democratic Republic of the Congo (DRC) on Valentine's Day. The funerals took place in Kimberley and Pretoria on Saturday, just a day after the SANDF announced that another two officers had died in the DRC. On Friday, the SANDF said that a soldier in the DRC had used a service weapon to shoot another soldier and then shoot himself. Both Captain Simon Mkhulu Bobe and Lance Corporal Irven Thabang Semono were laid to rest on Saturday. They were killed when a mortar bomb landed on the South African contingent base in the DRC on 14 February. They had been deployed on a Southern African Development Community (SADC) mission to the region to support and assist in restoring peace, security, and stability to the DRC. Three other people were injured in the same incident. The funeral for Bobe, who joined the military in 2011, was held at Thaba Tshwane military base in Pretoria. A funeral service at the Kimberley City Hall was held for Semono, who had enlisted in 2006. The SANDF accorded both members funerals with military honours. Read the full original of the report in the above regard by Nicole McCain at Auditor General gives damning report on police headquarters in Pretoria that had to be evacuated last week GroundUp reports that the Auditor General’s (AG’s) office on Wednesday told MPs months ago it had first flagged problems with the police headquarters in Pretoria. The building at Telkom Towers used as SA Police Service (SAPS) headquarters had to be evacuated last week following an inspection by labour department officials, who were accompanied by police management and the Solidarity trade union. The office was declared unfit for human use. The Telkom Towers complex was purchased by Public Works in April 2016 for nearly R700-million. But nearly eight years later, the complex has been underutilized. A presentation to Parliament’s Portfolio Committee on Public Works and Infrastructure by the AG on Wednesday revealed that only one of the nine buildings in the complex has ever been used by SAPS. Eight of the buildings have been vacant, costing the government at least R592-million. Just hours after the meeting in Parliament, SAPS released a statement confirming that staff had been evacuated from the only building it had been using at Telkom Towers. The building will remain closed until further notice is given. According to the AG, the buildings were fully functional at the time of purchase and were meant to become the central headquarters for SAPS in Pretoria. Johan Böning of Solidarity described the deplorable state of the SAPS office. He said they had received several complaints from police members. Some of the allegations included a lack of clean drinking water, poor and broken air conditioning and ventilation, broken and dirty toilets, closed and unmarked emergency exits, and broken lifts, among other issues. Read the full original of the report in the above regard by Matthew Hirsch at GroundUp Broke Buffalo City Metro under fire for R13m bill for bodyguards for mayor, deputy and speaker Sunday Independent reports that the Eastern Cape’s cash strapped Buffalo City Metropolitan Municipality paid almost R13 million for 13 bodyguards for its mayor, her deputy and speaker in 2023, as disclosed in the municipality’s latest annual report. Mayor Princess Faku currently earns nearly R870,000 while speaker Humphrey Maxegwana earns about R701,000 a year. The deputy mayor position. has not been filled since Faku vacated it to become mayor. According to the metro’s financial statements, Faku, the deputy mayor and speaker are each entitled to have full-time bodyguards. The cost of 13 bodyguards amounted to over R12.8m in 2023, up from about R12.1m in 2022. According to the Department of Cooperative Governance and Traditional Affairs, mayors, deputy mayors, speakers and whips are entitled to two bodyguards. Deviations from this norm may only be based on the recommendations of the SA Police Service (SAPS). Sue Bentley, DA caucus leader in the metro, said that as a matter of course, the party saw no real need for bodyguards or blue light brigades. ”However, we must bear in mind that some of our councillors have been subjected to threats to their person or family. So some form of protection may be necessary. However, the extent of that protection is another matter,” she noted. Bentley added that at no time had they been informed of any threats to the mayor or speaker. She went on to comment: “The main cost of these bodyguards must arise from overtime and perhaps a shift allowance. But the figure of R13m suggests that there must be anything from 10 to 15 of these officials. The need for that is not understood.” Read the full original of the report in the above regard by Loyiso Sidimba at Sunday Independent Other internet posting(s) in this news category
Implats may ask unions, government to reconsider agreement not to restructure Bafokeng shafts Miningmx reports that Impala Platinum (Implats) may backtrack on an agreement with unions and the Department of Trade, Industry and Competition not to restructure shafts bought in last year’s takeover of Royal Bafokeng Platinum (RBPlat). Now known as Impala Bafokeng, the RBPlat assets are losing money, partly because the new Styldrift mine is operating at 70% of productive capacity despite being “resourced” at 100%. Implats CEO Nico Muller said the producer might have no option but to consider restructuring at Impala Bafokeng. He indicated at Implats’ interim results presentation last week: “For very important reasons we gave undertakings to keep the shafts separate. And then the metal price drops by 40%. Once we go through all the optimisation, the question is: does that prohibit from talking about potential integration and cutting duplicate services?” He went on to indicate: “I tried to find reasons why we can’t talk to it. But surely, faced with the option of closing something permanently or talking to parties, [talking] is an option that must be retained by all the parties. Therefore, it is a potential option that is on the table.” He said of the negative free cash flow of R4.8bn in the six months ended December: “A strategic response is required to reverse the cash flow trend.” Read the full original of the report in the above regard by David McKay at Miningmx Other posting(s) relating to mining
Overqualified junior doctor desperate for work finally landed retail job three years after graduating City Press reports that a desperate junior doctor from Limpopo had to beg a cash and carry wholesale manager to give him a job. After being told that he was overqualified for the job, Dr Polosho Mokoena went back to the wholesaler in Seshego outside Polokwane the following day and pleaded with the manager to reconsider his decision and he did get a job. Mokoena was one of 600 unemployed doctors whose futures look bleak after Health Minister Dr Joe Phaahla said last month that government did not have funds to hire healthcare professionals for communities. The 32-year-old general practitioner from Tzaneen, who graduated from the University of Pretoria in 2021, completed his community service in October 2022 at the Louis Trichardt Memorial Hospital. However, like many of his colleagues, Mokoena has struggled to land a medical job in the country. He told City Press: “I got tired of waiting for government to release posts [for doctors] in the past year. I went door-to-door and also sent my CV to potential employers, without any luck. My future in medicine seems uncertain and I couldn’t just sit at home with no income.” Mokoena related further: “I’m humble enough to start anywhere in life right now. I can finally put myself in the shoes of all the unemployed people of South Africa.” Mokoena was among the healthcare practitioners, who included unemployed doctors, nurses and other health workers, who marched to the Union Buildings in Pretoria on Monday. Read the full original of the report in the above regard by Promise Marupeng at City Press (subscriber access only)
Fuel prices look set to soar on Wednesday BL Premium reports that unaudited data from the Central Energy Fund (CEF) indicates a significant increase in the price of both grades of petrol, diesel and illuminating paraffin on 6 March. The Automobile Association (AA), which has reviewed the data, said the expected increase would create more financial woes for South Africans as they scrambled to absorb the increases. According to the latest figures from the CEF, the increase to 95ULP is noted at R1.20/l, while the increase to 93ULP is forecast to be R1.15/l. Diesel is showing an increase of about R1.18/l, while illuminating paraffin is set to increase by 63c/l. If realised, the increases will result in 95ULP inland costing R24.44/l, and 93ULP inland will be R24.10/l. “The main driver behind the increases is higher international product prices in addition to the higher average rand-dollar exchange rate. While the weaker rand is contributing a small margin to the under-recovery and increase to prices expected [in March], the overall picture looks bleak and consumers will feel the pinch,” said the AA. There is, however, some good news for consumers. The two main levies on fuel, namely the General Fuel Levy and the Road Accident Fund levy, will not increase for the third consecutive year. These levies are traditionally increased in February. Read the full original of the report in the above regard at BusinessLive (subscriber access only). Read too, More pain at the fuel pumps on Wednesday, at MoneywebAnd also, Looming fuel price hike heralds food cost increases, at The Citizen (subscriber access only)
Eskom’s board has identified key areas for new CEO to prioritise during his first 100 days on the job Moneyweb reports that in what many have called “the toughest job in the country,” Dan Marokane bravely assumed his new position as Eskom’s chief executive on 1 March 2024. A statement released by the power utility said that Marokane re-joined the organisation at a time when it faced an “existential challenge and is undergoing significant changes that require hands-on, bold, and decisive leadership.” Eskom’s chair, Mteto Nyati, expressed optimism about Marokane’s return to the power utility, highlighting his confidence in the CEO’s abilities, leadership, and the dedication of Eskom’s staff. “We expect Dan and his leadership team to accomplish at least two critical tasks. First, they must address the current business challenges. Load shedding must become a thing of the past. Second, they need to reposition and restructure Eskom to enable growth and sustainability,” said Nyati. The board has also provided Marokane with a list of tasks to address during his first 100 days in the role, including assessing the generation operational recovery plan, reviewing Eskom’s unbundling plans and engaging with internal and external stakeholders. Read the full original of the report in the above regard by Terri-Ann Brouwers at Moneyweb
'GPs will be better off' under NHI, claims health department boss responsible for setting the scheme up Fin24 reports that government's National Health Insurance (NHI) lead, Dr Nicholas Crisp, has said that general practitioners would be better off under the NHI scheme, despite widespread fears of a flight of doctors if the system comes into effect. While preparations are still at an early stage, it is Crisp's view that restructuring the public and private healthcare industries and implementing a single healthcare funding pot will benefit GPs. Crisp is the deputy director-general of the Department of Health, tasked with setting up the team that will put plans in place to deliver on NHI should it be signed into law and pass legal muster. Speaking at a National Press Club event on 29 February, Crisp said: “I can tell you now that GPs are going to be better off than they have been. The way the private sector is structured is very specialist-dependent. People take their kids with scabies to a dermatologist or a paediatrician.” Many healthcare bodies have warned that there will be an "exodus" of doctors if NHI is implemented, while citizens will be saddled with a higher tax burden and stripped of their choice of healthcare. The SA Medical Association, which represents 13,000 private and public doctors, has expressed concerns about the bill in its current form. But, Crisp dismissed those concerns and said: "There are a handful, but unfortunately it’s enough, who will psych everybody up that 'you are all going to earn nothing and it’s not going to be worth it'. But we haven’t had that discussion yet. How do people know? How do they know how much they are going to get paid or when they are getting paid?" Read the full original of the report in the above regard by William Brederode at Fin24
Cyril Ramaphosa suspends small business minister Dipuo Peters for a month without pay TimesLIVE reports that President Cyril Ramaphosa has suspended small business development deputy minister Dipuo Peters for a month. This was confirmed by his spokesperson, Vincent Magwenya, on Friday. “The president has, in writing, informed Peters of his decision to suspend her. The suspension, which will be without pay, became effective on February 28 and will end on March 28.” Peters' suspension stems from the sanction handed to her in January by parliament’s joint committee on ethics and members’ interests. She was suspended from all parliament-related sittings as an MP for one term after the committee considered a complaint against Peters and found she had breached the code of ethical conduct in her former portfolio as transport minister. The complaint, launched by #UniteBehind leader Zackie Achmat, included allegations that Peters “was neglectful in her previous portfolio as minister of transport by failing to appoint a group CEO of the Passenger Rail Agency of SA.” Read the original of the short report in the above regard by Khanyisile Ngcobo at BusinessLive
Two Cape Town cops arrested for allegedly hijacking truck transporting perlemoen in 2022 News24 reports that two police officers were arrested last week for allegedly using their marked vehicles to pull over a truck transporting perlemoen (abalone) while in uniform and stealing its contents. Both of the arrested officers were off duty at the time of the hijacking but were authorised to be in possession of the marked police vehicles. According to the police, on 10 August 2022 the truck was transporting abalone to the value of R500,000 from the Buffelsjag abalone farm in Hermanus to Cape Town International Airport. As the truck with two crew members approached the Baden Powell off-ramp on the N2, it was pulled over by two marked police vehicles. The occupants of the police vehicles, who were dressed in police uniforms, confronted the driver and passenger of the truck. The driver was put in the back of one of the police vehicles while his passenger was placed in the other and driven away from the scene. They were later released in a bushy area in Mitchells Plain while the abandoned truck was recovered at Wolfgat Nature Reserve without the cargo. A hijacking case was opened and investigated by the Provincial Serious and Violent Crimes, Provincial Investigations Unit, which led to the two marked police vehicles used by members of Operation Restore being identified. On Friday, the two suspects were arrested at the Sea Point police station and Anti-Gang Unit in Faure. The pair are expected to appear in the Somerset West Magistrate's Court on Monday to face charges of theft and hijacking. Read the full original of the report in the above regard by Cebelihle Mthethwa at News24
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