Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

news shutterstockIn our Tuesday morning roundup, see
summaries of our selection of South African
labour-related reports.


SAFETY & SECURITY

Security guard shot and seriously wounded during CIT heist in the Durban CBD on Monday

IOL News reports that a security guard was shot and seriously wounded in a cash-in-transit (CIT) heist in the Durban CBD on Monday morning. A KwaZulu-Natal police (KZN) spokesperson said local police were investigating cases of attempted murder and attempted robbery following an incident in which armed suspects attempted to rob a cash delivery truck on the corner of Bertha Mkhize and Joe Slovo Streets. Security guards had just collected money from a store when they were ambushed by the suspects who fired shots at them. The suspects failed to gain access to the money and fled from the scene.   Garrith Jamieson from ALS Paramedics reported: “Paramedics arrived on scene … and were shown to a injured guard lying on the pavement next to his vehicle. Paramedics assessed the man and found that he had sustained a serious gunshot wound to his upper body. He was stabilised on the scene by Advanced Life Support Paramedics before being rushed to a nearby hospital for the further care that he required.” In another recent incident, a 23-year-old Marburg resident was shot dead during a CIT heist on the N2 near Ifafa on the KZN South Coast. Caylin Lee Naidoo was killed by a single gunshot wound to the head. The robbers apparently mistook his Isuzu double cab, fitted with a strobe light, as a security vehicle and opened fire.

Read the full original of the report in the above regard by Jolene Marriah-Maharaj at IOL News

Firefighters extinguish fire at China Mart in Joburg on Monday, no one reported missing

The Citizen reports that the City of Johannesburg Emergency Management Services (EMS) responded to the scene of a factory fire in China Mart on Renaissance Road in Crown Mines on Monday morning. Joburg EMS spokesperson Nana Radebe said upon arrival, firefighter crews found the building engulfed in flames. Radebe reported further: “Fortunately, the occupants managed to evacuate customers.   There are currently no reports of people missing, but search and rescue will be done to ensure everyone is evacuated. The crews have managed to contain the fire not to spread to other parts of the building.   Fire Safety will conduct preliminary investigations to determine the cause of fire when the fire is extinguished.”   Last week, a fire broke out at a retail store at Jubilee Mall in Hammanskraal. Upon arrival at the scene, firefighters found an Ackermans store on fire and immediately started with firefighting operations. They also protected a PEP store from possible fire spread. The fire was contained and subsequently extinguished. No one was injured as a result of the blaze.

Read the full original of the report in the above regard by Faizel Patel at The Citizen

Mhlontlo municipal manager in Eastern Cape gets bodyguards after his home was shot at and cars set alight

News24 reports that Mhlontlo municipal manager Lungile Ndabeni has been assigned a security detail after his home was peppered with bullets and two of his cars set alight at his home in Tsolo in the Eastern Cape on Sunday. In an urgent special council meeting convened by the municipality on Monday, a resolution was taken to provide Ndabeni with two bodyguards while the municipality awaits a threat analysis report from police. Ndabeni was unharmed during the incident. Eastern Cape police spokesperson Colonel Priscilla Naidu confirmed Ndabeni was at home with his wife when they heard gunshots outside the house. "He looked through the window and saw two males shooting at his house. Two of his vehicles, a VW Polo Vivo and a Ford Ranger double cab, were set alight. A case of attempted murder and malicious damage to property is under investigation," said Naidu. On Monday afternoon, Ndabeni, who was not at work, said he was not aware of any motive for the attack. The municipality came under fire from the Eastern Cape government in August 2023 when it appointed Ndabeni, who only achieved a "basic" outcome in the competence test for the top job.

Read the full original of the report in the above regard by Sithandiwe Velaphi at News24

Nurses at Limpopo hospital claim mental patients attack them because of lack of calming drugs

The Citizen reports that nurses at the Life Shiluvana Hospital in Limpopo say they fear going to work as some mental patients become violent and threaten them as they no longer receive the medication that calms them down. The hospital is a frail care centre based in Ritavi village near Tzaneen, Limpopo   It has 100 employees and apparently accommodates more than 160 patients suffering from mental conditions.   A senior staff member indicated:   “It is true that there is always a shortage of medication at the hospital. We once had a situation where some mental patients injured each other as they were not given the medication that was used to calm them down. We work at night sometimes and our lives are in danger. We no longer feel safe when we are at work.” The source also claimed that since the new management took over last month, the staff have not received their overtime pay. Another employee claimed that her benefits, such as Unemployment Insurance Fund and pension contributions, had been stopped.   Hospital operations manager Happy Masete denied that there were shortages of medication at the facility. He emphasised that the hospital was not a mental health facility, but a frail care centre. Masete conceded that the company had some problems with salary payments and overtime, but said they had addressed some of these. He explained that the problems were caused by the fact that the previous management had not properly handed over the details of the employees.

Read the full original of the report in the above regard at The Citizen

Other internet posting(s) in this news category

  • Eastern Cape police investigate death of colleague after series of unusual events, at TimesLIVE
  • Maatskaplike werkers in Krugersdorp aangeval, beroof, by Maroela Media
  • Bogus cops kidnap and assault couple in Tzaneen in Limpopo, at IOL News


LABOUR AND POLITICS

Ramaphosa is going nowhere, Cosatu insists

Bloomberg reports that the Congress of South African Trade Unions (Cosatu), which is allied with the ANC, says that any coalition deal struck by the party after its disastrous election performance last week must ensure President Cyril Ramaphosa retains his post and its manifesto pledges are upheld. The ANC won just 40.2% of votes cast on 29 May, ceding its majority for the first time in 30 years. Cosatu has supported the ANC in every election since it took power in 1994.   “What’s key is that a coalition be led by the ANC and President Ramaphosa, be progressive and biased toward the needs of working-class communities,” the federation said on Monday, adding that the new government should “defend the rights of workers, grow the economy and create jobs, tackle crime and corruption, invest in public services and unite the nation.” Matthew Parks, Cosatu’s parliamentary coordinator, insisted:   “Cyril will remain. That’s non-negotiable.” Among the priorities included in the ANC’s manifesto are job creation, battling crime and improving infrastructure – all of which could be agreed to by the DA, which, with 21.8% of the vote, is the second-biggest party. Still, a pledge to phase in a controversial national health insurance (NHI) system and differences over foreign policy could prove potential stumbling blocks.

Read the full original of the report in the above regard at Daily Investor. Read too, Push for Ramaphosa to fall on sword as calls mount against his reinstatement as president, at City Press


LOADSHEDDING HITS JOBS

Power cuts have hit SA’s labour market hard, with the biggest toll on jobs

The Conversation writes that power outages have long been identified as a major constraint to economic development. Many studies document their negative effects on economic growth, firm productivity and sales. Because of those negative effects, it is likely that outages have an impact on the labour market too. This is of particular interest in high-unemployment contexts, like SA. Professor Haroon Bhorat and Timothy Köhler of the UCT Development Policy Research Unit analysed the labour market effects of scheduled electricity outages in South Africa – referred to as load shedding – in a recently released paper.   They found that power outages have had negative effects on employment, as well as working hours and monthly earnings among those who remained employed. Effects on employment have been larger than effects on working hours or earnings, which highlights the threat that load shedding poses to job preservation and job creation efforts. These effects were not, however, the same for all firms.   Workers in the energy-intensive manufacturing industry appear particularly vulnerable to losing their jobs. Also, small and large firms responded differently. Small firms tended to favour reducing working hours rather than introducing layoffs. Lastly, effects varied by load shedding intensity. Low levels of load shedding don’t affect the labour market strongly, but high levels did. These results highlight the negative effects of load shedding on the real economy.   From a policymaking perspective, the primary goal of course must be to reduce the frequency and intensity of the outages, and ultimately eliminate them. Longer-term policy decisions revolve around moving faster towards renewable energy sources, encouraging private investment and, overall, building a more resilient and sustainable energy system.

Read the full original of the report in the above regard by Haroon Bhorat and Timothy Köhler at The Conversation


COST OF LIVING

Fuel prices may drop more than expected in June, says AA

Moneyweb reports that motorists can look forward to a significant fuel price drop in June, with 95 and 93 octane unleaded petrol (ULP) both set to decrease by around R1.06 per litre and diesel by around R1 per litre. In mid-May, the Automobile Association’s (AA’s) forecast was a “humble” decrease of around 61c per litre for 95 ULP and 63c per litre for 93 ULP. But the more favourable environment – lower international product prices and a stronger rand to the dollar – has improved the outlook. Unaudited data from the Central Energy Fund indicates significant fuel price decreases for June, which will bring welcome relief to all consumers who have seen prices increase steadily since February, the AA said. But, it added: “While the decreases will bring relief, the cost of fuel is still higher now than it was just a few short months ago, and again points to the financial pressure many South Africans still experience.” High fuel prices and interest rates are still putting considerable pressure on South Africans – especially those with debt.

Read the full original of the report in the above regard at Moneyweb. See too, Motorists can look forward to lower fuel prices in June, says AA, at BusinessLive


EXECUTIVE PAY

Pick n Pay paid booted CEO Pieter Boone a termination settlement of R15.8m, taking his pay to R25.3m

Moneyweb reports that Pick n Pay, which has begun a three-year turnaround under CEO Sean Summers, paid former boss Pieter Boone a sizeable cash “termination settlement” in terms of his contract of employment. Summers replaced Boone effective 30 September 2023. According to the group’s financial statements, Boone was paid what it termed a “gratuity” of R15.776m last year. This was over and above his total fixed remuneration of R9.5 million for the seven months between March and end-September.   Boone’s base salary for the period was R7.9 million. Boone stepped down in what the group couched as a mutual decision on 30 September. The group announced this, and the fact that Summers would replace him with “immediate effect” on 2 October. The sales decline in the group’s core Pick n Pay banner was clear to see by that point. The group is undertaking a complex recapitalisation that will see it raise R4 billion through a rights offer and a further R6 billion to R8 billion from the separate listing of Boxer, in which it will retain a majority stake.   Summers was paid a base salary of R10 million from 30 September, effectively R2 million a month.   According to the group’s remuneration disclosure, he receives no retirement and medical contributions or fringe/other benefits. He also received no short-term performance bonus or long-term share awards. This is atypical for a chief executive; however, Summers is independently wealthy. He will run the group for three years and has been incentivised to ensure a succession plan is in place.

Read the full original of the report in the above regard at Moneyweb


SKILLS DEVELOPMENT

EWSETA undertakes programme to boost renewables skills development at TVET colleges

Engineering News reports that the role of technical vocational education and training (TVET) colleges in SA’s just energy transition is expected to be bolstered by a partnership led by the Energy and Water Sector Education and Training Authority (EWSETA) and the Chinese Culture and International Education Exchange Centre (CCIEEC). “This programme not only seeks to establish a comprehensive renewable energy education and industry system in the country’s TVET colleges but also to enhance the international standards of South African TVET colleges over the next five to ten years,” explained EWSETA CEO Mpho Mookapele. At the launch function held on 31 May, the programme partners bid farewell to 54 learners and six lecturers from TVET colleges who will travel to China for a year-long experiential learning programme. The learners, who will be trained in the field of solar PV manufacturing, are from the Elangeni TVET College in KwaZulu-Natal, Vhembe TVET College in Limpopo, Ingwe College in the Eastern Cape, South West Gauteng and Westcol TVET colleges in Gauteng and the Northern Cape Rural TVET in the Northern Cape. In April, the Seta Integrated High Impact Programme (SIHIP) was launched, outlining a series of initiatives to be undertaken by Setas to drive collaboration and cooperation among Setas, aimed at maximising the impact and effectiveness of Seta programmes towards national development goals. The Just Energy Transition Learner and Lecturer Development Support Programme aligns to the aims of the SIHIP.

Read the full original of the report in the above regard at Engineering News


RETIREMENT FUNDS / ‘TWO-POT’ SYSTEM

New ‘two-pot’ retirement system still faces hurdles

BusinessTech writes that President Cyril Ramaphosa may have signed the Revenue Laws Amendment Bill, but other pieces of legislation and systems still need to be signed and created before the ‘two-pot’ etirement system becomes effective. There are at least four hurdles for the new system to take place, namely, the Pension Fund Amendment Bill needs to be signed; the Revenue Second Amendment Bill needs to be finalised; SARS needs to finalise system requirements; and the seeding calculations for the new system can only take place after August. The new system is intended to be implemented on 1 September 2024. It will allow individuals to access up to one-third of their retirement savings before retirement via a “savings pot.” The remaining two-thirds will be placed in a “retirement pot” that will only be accessible upon retirement.   Blessing Utete of Old Mutual Corporate Consultants commented: One of the most important points to communicate to members is when their money will be accessible. Even though the legislation goes live on 1 September, it doesn’t mean funds may be able to pay out on that date as there are several steps that need to be implemented first.” Michell Action, Old Mutual’s Retirement Reform Executive, agreed that the payouts from the savings pot would not be made immediately. He explained: “Seeding calculations can only be conducted after the end of August, using the values from that month. The legislation allows for seeding calculations soon after implementation, not necessarily on that date. As a result, actual access for members will likely take place after 1 September.” The seeding calculation will determine the initial amounts that will be allocated to the different pots and will depend on the individual savings of each member.

Read the full original of the report in the above regard by Luke Fraser at BusinessTech

Two-pot retirement system a huge risk for old age, Solidarity warns

Maroela Media reports that Solidarity has expressed a serious warning about the so-called two-pot system in terms of which annual withdrawals from an individual’s retirement money will be possible from 1 September 2024. Solidarity Deputy General for Strategy, Marius Croucamp, warned that although the system aimed to give employees access to funds for emergencies, it certainly entailed risks. “The main risk is that on the day of retirement there will be much less retirement money available to an individual who has withdrawn funds from his or her savings pot. They will then probably have to get additional income from somewhere to be able to take care of themselves in their old age.” He went on to say: “There will be a huge temptation to withdraw money with ease from the savings pot because it will be possible to do so annually. It must also be borne in mind that the money that has been withdrawn will be taxed at an individual’s marginal tax rate because it is considered as income. This could subsequently place the person in a higher tax bracket.” In cases where home loans have been granted by funds, he cautioned the funds to make sure there was enough money to cover the particular loan or guarantee before payouts were considered from the savings pot. “Retirement funds must also amend their fund rules to comply with the requirements of the two-pot system. As there are hundreds of retirement funds in South Africa, the authorities will have their job cut out to approve all the amendments by 1 September 2024,” Croucamp pointed out.

Read the full original of the above report in Afrikaans at Maroela Media

Other internet posting(s) in this news category

  • The ins and outs of the GEPF, at Moneyweb


ALLEGED MISCONDUCT

Tshwane Property CEO accused of allegedly asking employees to write her MBA exam

City Press reports that some of the allegations facing the CEO of the Housing Company of Tshwane (HCT), Obakeng Nyundu, include asking colleagues to write assignments on her behalf and hiring friends and family members. The HCT is responsible for managing the City of Tshwane’s buildings. Nyundu allegedly asked HR manager Shatadi Mothobi to write an online master’s degree in business administration (MBA) exam, which was about an HR module called managing people. But Mothobi apparently refused, which allegedly led to the CEO and Mothobi having a fallout. This resulted in Mothobi being placed on suspension for absenteeism while she was on sick leave. The CEO allegedly asked another employee, Mathapelo Malemela, to help her.   Sources close to Mothobi allege that she had been writing assignments for Nyundu, but was no longer prepared to continue, which led to the fallout. However, a source close to the CEO stated that Mothobi started not showing up for work, hoping no action would be taken against her because she knew the wrongdoings of the CEO and the alleged unlawful instructions.   Numerous other allegations against Nyundu have been made. City of Tshwane spokesperson Selby Bokaba said Nyundu was dealing with a disgruntled employee who used every opportunity to taint her name and bring the HCT into disrepute. He added:   “She (Nyundu) vehemently denies asking any of her colleagues to write any MBA assignment for her and none of her colleagues had written any assignment for her. She admits, however, consulting the HR manager, who is the subject expert, to provide her with insight, guidance and inputs in relation to an HR MBA module.”

Read the full original of the report in the above regard by Abram Mashego at City Press (subscriber access only)


WORKPLACE CRIME

Former employee who tried to extort R100,000 from McDonald’s lands up with an effective 13-year sentence

BL Premium reports that McDonald’s, the multinational fast-food chain, has thwarted an extortion plot by an employee in SA who threatened to tarnish the company’s reputation with its customers. Former employee Clement Seothaeng sent a video to the group in which he is seen spitting on an ice cream cup while wearing his work uniform. He threatened to release the video if the company did not pay him R100,000.   On learning about the potential release of the video on social media, the company escalated the matter to its risk manager for SA. This led to the CEO being notified and the company engaging attorneys to address the issue. An investigation found that Seothaeng was behind the extortion, and he admitted it.   He justified his action by claiming that his anger towards the company drove him to do it. The company filed criminal and malicious injury to property charges. Seothaeng was convicted and sentenced to 10 years imprisonment for extortion and five years’ imprisonment for malicious injury to property. Last week, he tried to appeal against the sentence, arguing that the court overemphasised the seriousness of his crimes and that the sentence was “grossly excessive”. His appeal was partially successful after the Pretoria High Court agreed that two years of the five-year sentence for malicious damage to property should run concurrently with the 10-year extortion sentence, leaving him with an effective 13-year sentence.

Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive (subscriber access only). Lees ook, McDonald’s-werker wat wou afpers, moet bly sit, by Maroela Media


OTHER REPORTS OF INTEREST

  • Former Reserve Bank deputy Kuben Naidoo joins Investec, at Fin24
  • Chiefs open talks with Alexandre Santos over head coach job, at The Citizen
  • De Beers ditches man-made diamonds as it looks beyond Anglo American, at Mining Weekly

 


Get other news reports at the SA Labour News home page