In our Friday morning roundup, see
summaries of our selection of South African
labour-related reports.
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Public servants to receive 4.7% wage increase on 1 April in line with March 2023 wage deal with four unions BusinessLive reports that SA’s public servants are set to receive a wage increase of 4.7% on 1 April in line with a wage deal signed by the government and four unions at the public service coordinating bargaining council (PSCBC) on 31 March 2023. Employees set to benefit are not considered senior management. The two-year pay deal translated into civil servants getting a wage increase of 7.5% during 2023/24 and projected consumer price inflation (CPI) for 2024/25. Department of Public Service & Administration (DPSA) spokesperson Moses Mushi indicated: “Considering the current economic climate and the need for fiscal discipline, the government will implement a 4.7% salary increment for public servants in 2024. This decision aligns with the commitment to affordable and accessible public services while recognising the hard work and dedication of public servants. The government has thoroughly considered various factors to strike a balance between meeting the needs of public servants and delivering efficient services.” The two-year wage agreement was signed by Sadtu, the PSA, Naptosa and Hospersa. Nehawu, Popcru, Denosa and the SA Policing Union did not sign the wage agreement in protest over government’s decision to unilaterally implement a 3% wage increase for public servants in October 2022. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive Economist warns that ‘SA can’t afford public servants’ 4.7% salary increase’ The Citizen reports that government’s announcement ahead of the long weekend of a 4.7% salary increment might have been good news for public servants, but economists reckon otherwise. Department of Public Service and Administration (DPSA) Minister Noxolo Kiviet advised on Tuesday that non-senior management (SMS) workers whose salaries fell within levels one to 12 of the pay-scale would get a 4.7% salary bump up from 1 April. Despite acknowledging the purpose of the increase amid record high inflation, economic analyst Bonke Dumisa said the increment could hurt the government’s pockets. “We can’t afford it,” Dumisa said, explaining the public wage bill was already high. Echoing Finance Minister Enoch Godongwana, Dumisa said government debt levels were alarming and questioned whether increasing government expenditure was a smart move. “South Africa is operating at huge budget deficits and has been for many years. These budget deficits are the cause of the continuous high inflation rate. Hence, when public servants get salary increases, that feeds more inflation. We must remember that the current South African government debt of over R5.3 trillion which will balloon to over R6 trillion by 2026 must be paid. There are many other service delivery challenges the government faces, but there’s no money,” Dumisa pointed out. He said workers at the low end of the spectrum were likely to feel inflationary pressure most and they should perhaps be the primary focus. Read the full original of the report in the above regard by Vukosi Maluleke at The Citizen
Numsa calls for equality in Human Rights Day message TimesLIVE reports that the National Union of Metalworkers of SA (Numsa) on Thursday commemorated Human Rights Day by honouring the memory of the people killed in the Sharpeville Massacre in 1960 while protesting against the “dompas” system. The trade union called for equality in the country by alleviating poverty through nationalising minerals. To honour the lives of those sacrificed during the Sharpeville protests, spokesperson Phakamile Hlubi-Majola said deliberate choices had to be made to transform the economy for the benefit of all. “That would entail nationalising the economy and all minerals for the benefit of all of us, not just for an unelected wealthy few. We need leaders who are courageous like the people of Sharpeville to drive genuine transformation, for the benefit of the majority of people,” she stated. Meanwhile, the Health and Allied Workers Indaba Trade Union (HAITU) said it wanted to use the day to highlight the right to health care as a fundamental human right which the majority of people have yet to attain. HAITU said if SA was genuine about promoting human rights then there should be no debate on the subject of free health care. Read the full original of the report in the above regard by Rorisang Kgosana at TimesLIVE Other internet posting(s) in this news category
Truck driver arrested for possession of stolen RBM minerals worth R15 million News24 reports that officers deployed to KwaZulu-Natal to combat the killing of mining executives and the theft of minerals arrested a truck driver, who was in possession of R15.5 million worth of stolen Zircon and Chloride from Richards Bay Minerals (RBM). Police spokesperson Brigadier Athlenda Mathe said the 44-year-old was arrested after officers followed up on a tip-off regarding a truck loaded with stolen minerals. The truck was found abandoned at Kwambonambi. "Further investigation led the team to an address in Durban, where the minerals were found," Mathe said. More officers were deployed to the region two weeks ago after Police Minister Bheki Cele and national police commissioner General Fannie Masemola met with the local business community. Mathe said all parties "jointly committed to strengthening working relations", while more police were deployed to prevent and combat acts of criminality related to the mining sector. Mathe reported: "Since the deployment of this task team to Richards Bay [in 2022], 43 people have since been arrested for murder, theft, trespassing, possession of suspected stolen property, unlawful possession of firearm and ammunition, fraud and intimidation." She added: “Sixty-eight dockets are currently under investigation, 47 of these cases are before various courts, and 202 firearms have been confiscated in the last three years. Read the full original of the report in the above regard by Cebelihle Bhengu at News24. Lees ook, Groot deurbraak teen diefstal van minerale in KZN, by Maroela Media Sibanye halts work at Siphumelele shaft after surface mishap; no injuries reported BL Premium reports that Sibanye-Stillwater suspended production at the Siphumelele shaft of its PGM operations in Rustenburg on 29 February after surface infrastructure was damaged. The company said on Wednesday that an ore collector bin attached to the shaft headgear sheared off and fell to the ground, damaging a surface ore conveyor belt system. There were no injuries. As a result of the incident, the incapacitation of the ore collector bin and the collapse of the conveyor system necessitated suspension of production. Investigations into the cause of the incident are under way, and the effect on production from the Siphumelele shaft is being assessed. Unions and the Department of Mineral Resources and Energy were informed of the incident. Sibanye is one of the world’s largest producers of gold and platinum. Read the full original of the short report in the above regard by Jacqueline Mackenzie at BusinessLive Other general posting(s) relating to mining
Average salary increases in February suggest better year for take-home pay The Citizen reports that the monthly BankservAfrica Take-home Pay Index (BTPI) experienced another positive month in February. “The average nominal take-home pay reached R16,085 in February, 4.6% more than a year ago and 2.5% more than in January when it was R15,692. In real-terms, the monthly take-home pay tracked higher at R14,354 in February 2024, slightly below year-on-year levels,” BankservAfrica’s Shergeran Naidoo indicated. Economist Elize Kruger commented that while it was still early days, the BankservAfrica data signaled that 2024 could be a better year for salaries. “Although mediocre economic growth is forecast for 2024, the economy is expected to perform somewhat better than the 0.6% reflected in 2023. However, this depends on reduced load shedding, a moderation in average inflation and interest rate cuts.” She added that consumers had to remember that the minister of finance did not adjust tax brackets to mitigate the impact of inflation, which essentially meant that a salary increase could easily push salary earners into a higher income tax bracket. A comparison of the average nominal BTPI for the three months to February 2024, with the corresponding three months in 2023 revealed a 6.4% increase, according to Kruger. This is broadly in line with the forecast of the SA Reserve Bank of an average salary increase of 6.1% for 2024. The figure also aligns with the results of a recent pay poll by Andrew Levy & Associates, indicating the majority of companies (58%) anticipated their average increase in respect of salaried staff to be in the region of 5% to 6.9%. Read the full original of the report in the above regard by Ina Opperman at The Citizen. Read too, Average salary in SA rose 2.5% to R16,085 in February, index shows, at Business Report
SA consumer inflation rate at four-month high in advance of interest rate call next week Bloomberg reports that SA’s consumer inflation rate climbed to a four-month high in February, likely cementing the SA Reserve Bank’s (SARB’s) resolve to keep borrowing costs on hold when it meets next week. The consumer price index rose to 5.6% in February from a year earlier, compared with 5.3% the prior month, Statistics SA reported on Wednesday. The uptick in inflation means the rate has moved further away from the 4.5% midpoint of the SARB’s target range, where it prefers to anchor expectations. It also comes a day after data showed average inflation expectations for this year and next remain above that midpoint. SARB Governor Lesetja Kganyago has repeatedly said that until inflation retreats to 4.5% in a sustainable manner and settles there, the central bank would be unwilling to adjust its policy stance. February’s price-growth was largely driven by higher transport costs, housing & utilities and food and non-alcoholic beverages. Core inflation, which excludes the cost of food, non-alcoholic drinks, fuel and electricity, quickened to 5% from 4.6% in January as rising health-insurance costs filtered into the data. The annual rate for health insurance rose to 12.9% and premiums for all types of insurance increased by 9.5% over the past year. Read the full original of the report in the above regard by Ntando Thukwana at Moneyweb. See too, Inflation up again in February, at The Citizen. En ook, Inflasie styg wéér, by Maroela Media Cape Town commuters say second Golden Arrow price hike in six months a 'massive burden' News24 reports that frustrated Cape Town bus commuters say Golden Arrow Bus Services' (GABS) price hikes are a major blow to the poor who struggle to get to their daily destinations. Earlier this week, GABS said it would be increasing its bus fares by 7% as of 1 April. The previous fare hike was in September last year. Explaining that GABS was no longer able to absorb rising costs across the supply chain and had no other option but to increase the fares, general manager Derick Meyer indicated: "We remain acutely aware of the difficult economic climate in which our passengers find themselves in and therefore took the unprecedented decision to delay our standard end-of-year increase which should have taken place in December 2023. This (April) increase is not only unavoidable but essential to ensure that Golden Arrow is able to remain sustainable and to maintain the same exceptional level of services which 96% of passengers would recommend to friends and family." Commuters, however, said the company's increase was a "massive burden" on the less fortunate, who relied daily on buses to get to their places of work. Meanwhile, Ryno Saaiers of the SA National Taxi Council (Santaco) said that individual associations had the right to increase their fares, “but Santaco would not be implementing a blanket fare increase." Metrorail Western Cape said they would also not be increasing their fares. Read the full original of the report in the above regard by Lisalee Solomons and Mothushi Thoka at News24
Former North West economic development CFO accused of work permit forgery appears in court The Star reports that the former Chief Financial Officer (CFO) for the North West Department of Economic Development, Kudakwashe Mpofu, has appeared in the Pretoria Magistrate’s Court over allegations of contravening the Immigration Act. Mpofu, who is originally from Zimbabwe, is reported to have used a fraudulent permit to enter and remain in the country. He is also said to have used fake documents to gain employment. On Wednesday, Mpofu handed himself over to the police after investigations by the SA Police Service (SAPS) and was subsequently arrested. Following a brief court appearance, his matter was postponed to Tuesday for bail information and a possible bail application. He remains in custody until his next court appearance, with the National Prosecuting Authority (NPA) having confirmed that it intends to oppose bail in the matter with the possibility of adding more charges against him. Last week, Mpofu resigned from his position after the Minister of Home Affairs, Dr Aaron Motsoaledi, described the situation as a “national embarrassment”. According to the Minister, Mpofu, who is fighting through the courts not to be deported, was informed as far back as 23 June last year about the issue pertaining to his residence permit. On Wednesday, a spokesperson for the Special Investigating Unit (SIU) said an investigation into Mpofu’s fraudulent working permit was being investigated, as requested by the Minister. Read the full original of the report in the above regard by Siyabonga Sithole at The Star. Lees ook, Voormalige finansiële hoof in Noordwes in hof oor verblyfpermit, by Maroela Media
Godongwana says funding model for NHI to be decided after Ramaphosa signs Bill into law IOL News reports that Minister of Finance Enoch Godongwana says the government has not decided on the funding model for National Health Insurance (NHI). This will be discussed with the Department of Health (DOH) after President Cyril Ramaphosa has signed the NHI Bill into law. There was no doubt that Ramaphosa would assent to the bill, Godongwana added on Wednesday when answering questions in Parliament. He refused to be drawn on how much the NHI would cost once the DOH started implementing it. The NHI Bill was passed by Parliament last December and Ramaphosa has said he would be signing the bill into law. But political parties have threatened to challenge it in court as they claim it is unlawful and unconstitutional. Godongwana referred to the possibility of taxes being used to fund the NHI and commented further: “People made reference to a tax for NHI. I have not mentioned that. At no stage I mentioned it. I mention taxes once a year, on Budget day. I don’t go around everywhere mentioning tax. If I am going to tax anything you will hear next year on February 19.” He went on to say: “The last point, I have said in the White Paper there are different scenarios that have been proposed for financing healthcare. Once the bill has been assented to by the president we will then work with the department of health on those scenarios and rollout the NHI.” Read the full original of the report in the above regard by Siyabonga Mkhwanazi at IOL News
Speaker Mapisa-Nqakula takes special leave over corruption allegations Financial Mail reports that National Assembly Speaker Nosiviwe Mapisa-Nqakula has taken “special leave”, effective immediately, in the wake of reports of her imminent arrest on charges of corruption. Mapisa-Nqakula said in a statement on Thursday that she had taken the decision given the “seriousness of the allegations and the attendant extensive media speculation”. Her announcement comes days after her house in Bruma, Joburg, was raided. She is under investigation for allegedly soliciting bribes in return for contracts during her tenure as defence minister. Mapisa-Nqakula, who was shifted from the defence portfolio after the July 2021 riots, has also been accused of wasting R7m on aircraft charters and other luxuries during her tenure. In her statement she said neither she nor her legal team were aware of plans to arrest her. She took the decision to take special leave “by herself” to “protect the integrity of parliament and ensure its sacred duty and its name continue unblemished”. Mapisa-Nqakula added: “Consequently, therefore, I will also not be attending the long-planned 148th session of the Inter-Parliamentary Union Assembly taking place in Geneva, Switzerland.” Parliament had earlier on Thursday announced the trip to Switzerland, and speculation was rife that she would be leaving the country, amid reports of her imminent arrest. If arrested, Mapisa-Nqakula would be the first senior ANC leader to face censure for corruption allegations during their tenure as minister. Read the full original of the report in the above regard by Natasha Marrian at BusinessLive (subscriber access only) Two former Free State housing officials get suspended sentences for taking bribes, falsifying documents Fin24 reports that two former Free State housing officials have been handed suspended sentences after admitting to soliciting bribes from service providers between 2009 and 2012. Twala Caroline Letanta Tshabalala, 58, and Ketloetseng Mildred Setlaba, 48, appeared before the Bloemfontein Magistrate's Court on Monday. They both pleaded guilty and were sentenced for fraud and corruption. Hawks spokesperson Captain Christopher Singo said the pair, who were employed by the Free State Department of Human Settlements, demanded cash bribes from service providers "in exchange for facilitating payments". Singo added: "The accused falsified claims and supporting documents of service providers in order to process payments. Upon receipt of payment, service providers would then give the accused money as agreed.” The court sentenced Tshabalala to eight years imprisonment for fraud, wholly suspended for five years on condition that she was not found guilty of fraud during the period of suspension. Setlaba was sentenced to five years imprisonment for fraud and corruption, also wholly suspended for three years. Read the full original of the report in the above regard by Nicole McCain at News24
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