This 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.
In our Tuesday morning roundup, see
summaries of our selection of South African
labour-related reports.
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Numsa’s constitution precludes it from representing workers outside its scope, ConCourt rules BL Premium reports that the Constitutional Court (ConCourt) has ruled against the National Union of Metalworkers of SA (Numsa) in a matter involving representation of workers who do not fall within the scope of the union’s constitution. Numsa became involved in unfair dismissal disputes with Afgri Animal Feeds, an agricultural manufacturer. Afgri refused to grant Numsa workplace organisational rights. Aggrieved, Afgri workers went on a two-day strike in 2017 and several of them were then dismissed. Numsa tried referring an unfair dismissal dispute to the Labour Court, but this was dismissed by the court after Afgri argued the Numsa had no standing to represent the workers because they were from the animal feed manufacturing sector whereas Numsa’s constitution stipulates that it represents metalworkers. The union appealed to the Labour Appeal Court, which ruled in Numsa’s favour. Afgri then appealed to the ConCourt, which, in a unanimous judgment, indicated that “Numsa’s [own] constitution restricts its registered scope to workers in the metal and related industries.” This scope “precludes” animal feed workers “from becoming members of Numsa”. As a result, Numsa had no standing to bring a challenge at all. The workers’ rights were “not implicated at all” and they were free “to join and be represented by” any trade union that dealt with their career sector so their rights remained intact. In attempting to represent workers from the animal feed manufacturing sector, the metalworkers union was acting “beyond the bounds of its [own] constitution”, the court said. Read the full original of the report in the above regard by Tauriq Moosa at BusinessLive (subscriber access only)
Game farm worker in KZN killed by lioness on Sunday The Citizen reports that a game farm worker’s worst nightmare came true on Sunday when he was mauled to death by a lioness while fixing a fence and installing a gate. KwaZulu-Natal (KZN) police spokesperson Captain Lorraine Earle said the victim and his supervisor had just finished putting up a gate at one of the game farm’s lion enclosures. The worker allegedly left his room and went straight to the enclosure. “The supervisor screamed to notify him that he must quickly get out as there was a female lion in the enclosure, but it was too late. One of the four lions attacked him, and he lost his life,” Earle reported. The worker’s body was then rescued by the supervisor. “The 43-year-old victim died of multiple bite marks on his neck and body,” Earle said. Police confirmed that the lion was euthanized by the SPCA. The Glen police were summoned to the scene, and an inquest case was opened for further investigation. Read the full original of the report in the above regard by Chulumanco Mahamba at The Citizen. Lees ook, Leeuwyfie verskeur werker op wildplaas, by Maroela Media Postmasburg police seek soldier missing from Lohatla base for over three weeks DFA reports that the Postmasburg police have urgently appealed to the public for assistance in locating a missing SA National Defence Force (SANDF) soldier, Luntu Basil Hatta. The 53-year-old soldier was last seen at the Lohatla SANDF base near Postmasburg. According to Northern Cape police spokesperson Lieutenant-Colonel Sergio Kock, Hatta was last seen on 2 June. He was reportedly wearing blue jeans and a black jacket at the time of his last sighting. Authorities are actively investigating the case. Read the original of the short report in the above regard by Benida Phillips at DFA. Lees ook, Soldaat verdwyn spoorloos by Lohatla, by Maroela Media Other internet posting(s) in this news category
Cosatu was 'unable to influence ANC' during consultation talks over GNU TimesLIVE reports that Cosatu has indicated that it was not able to influence the ANC in the party’s power-sharing talks held with its partners in the government of national unity (GNU). The union federation said the snub from its alliance partner the ANC was not unusual. Cosatu national officials briefed media after their central executive committee (CEC) meeting at the weekend to reflect on the standing of workers, the planning of a national day of action and the GNU. “We have always maintained we are an alliance of three independent components – Cosatu, the SACP and ANC. We are within our rights or reserve our rights to take decisions the best way we see fit, even if it is to the disagreement of our alliance partner,” said first deputy president Mike Shingange. He went on to state: “Given the pressure the ANC is going through, perhaps this became the safest way for them to go into their own internal national executive committee (NEC) and independently take decisions as they see fit. They have other political parties to contend with.” The alliance was briefed by the ANC during its secretariat meeting before the last NEC. “We indicated our view, which is to form a minority government. A follow-up meeting was to take place; it did not take place until the NEC met and pronounced on a GNU,” Shingange advised. He added: “We want to separate being briefed and being consulted, understanding that even when you are consulted it doesn't mean your views must be taken into consideration — but at least we are asked for our view.” According to Shingange: “Ultimately it is political parties that need to find one another, taking into consideration what the voters have said. Cosatu has expressed dissent with the DA's economic policy, calling it a regression of workers' rights and reversal of transformation.” Read the full original of the report in the above regard by Sisanda Mbolekwa at TimesLIVE. Read too, Whoever is appointed to Cabinet positions 'must respect workers rights' – Cosatu, at News24. And also, Cosatu says it wasn't part of negotiations in ongoing GNU talks, at EWN Other internet posting(s) in this news category
Standard Bank foresees two repo rate cuts by end of this year BusinessLive reports that Standard Bank forecasts that the SA Reserve Bank (SARB) will cut its benchmark interest rate twice by the end of the year thanks to the outcome of last month’s elections. Africa’s biggest lender by assets has pencilled in the first repo rate reduction in September as consensus builds in the financial services sector that help is on the way for embattled consumers. The lender’s CFO, Arno Daehnke, indicated: “We expect a continued commitment to the fiscal consolidation plan and ongoing traction to the growth-supportive reforms under way. This should support moderating inflation and monetary policy easing. We expect 100 basis points (bps) of cumulative interest rate cuts. But we expect them to be spread, with two cuts of 25bps in the second half of 2024, starting in September, and two cuts of 25bps in the first half of 2025.” The SARB’s monetary policy committee kept the repo rate at 8.25% for a sixth consecutive time at its most recent meeting in May. The committee’s next meeting is scheduled for 16-18 July. It was reported in May that SA’s four biggest banks had about R98bn in underperforming home loans, reflecting the effect of high interest rates on consumers. Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive
Massive R330 million send-off for Naspers boss Bob van Dijk – with even more to come BusinessTech reports that former Naspers chief executive Bob van Dijk scored a massive R330 million pay cheque for the latest financial year – and will still get paid R2.2 million a month for the next six months. Naspers’ remuneration report for the 2024 full year shows that the former CEO received a basic salary of $1.4 million, a bonus of $1.4 million and various other share options that took his total single salary payout to $18.27 million for the year (R330 million). Included in this amount was a $747,000 severance payment (R13.5 million). The severance payment qualified as an appropriate, all-inclusive compensation for loss of office, Naspers explained. The group previously announced that Van Dijk would step down from the role in September 2023, but would remain at the group as a consultant until September 2024 to ensure a smooth transition. According to the group, this consultancy period commenced on 1 April 2024, and for services rendered until September 2024, a gross fee of €113,436.18 (R2.2 million) per month would be paid. Put another way, the latest pay data shows that the former Naspers CEO earned just under R1 million a day for the past financial year, adding to the insane salary he has taken home since being appointed Naspers chief in 2014. Adding the latest pay data, the former CEO earned over R1.8 billion during his 10-year stay at the company, taking home close to R500,000 a day. Should the performance conditions for the Prosus and Naspers performance share units granted in 2021 be met, Van Dijk will still be entitled to an additional gross payment to compensate him for the lapse of certain long-term incentives. Read the full original of the report in the above regard at BusinessTech Banker CEO pay in SA is booming, but will new rules help reduce inequality? Renée Bonorchis writes that the four chief executives of Absa, FirstRand, Nedbank and Standard Bank were paid almost a quarter of a billion rand in combined total pay in 2023, averaging R55.3 million per CEO. On a total remuneration basis, which takes into account the value of long-term awards, Standard Bank's CEO Sim Tshabalala led the pack with R83.3 million. On a total single-figure basis, Mike Brown, the outgoing CEO of Nedbank, topped out at R92.5 million. But on a more like-for-like measure using the total awarded remuneration figure, Brown's pay was R46.42 million. That would make him the third-best paid of the four CEOs after FirstRand's Alan Pullinger at R51.45 million and ahead of Absa's Arrie Rautenbach at R40.03 million. The stark reality is that the bankers were paid remarkable amounts, compared to the many millions of South Africans trying to get by on social grants or the minimum wage, which amounts to less than R5,000 a month. Tracey Davies of shareholder activist group Just Share commented: “The figures are breathtaking in any context and morally reprehensible given the South African context of extremely high inequality. But as a society, we have been browbeaten into believing that this handful of individuals is so spectacularly special that it is unacceptable to question how much they earn.” In just under two decades, the big four banks have increased what they pay their CEOs by almost 500%. Meantime in real terms, taking inflation into account, wages in SA have declined in the last five years. There is a Companies Amendment Bill on its way – it needs to be signed off by President Cyril Ramaphosa. It will introduce a new measure for the pay gap, a new voting system for shareholders when it comes to compensation policies and the possibility for remuneration committee members to be barred from being a director of the company for a few years if they're voted out. The unintended consequences may be that, instead of potentially not being able to change a remuneration policy in between three-year binding voting periods, boards may overload pay upfront. Read the full original of the opinion piece in the above regard by Fin24. Read too, New law to address ‘feeding frenzy’ at listed companies, at Mail & Guardian (subscriber access only) Other internet posting(s) in this news category
PPC warns of job losses as it ramps up turnaround plan BusinessLive reports that cement giant PPC expects its turnaround plan to take about two years to bear fruit and has warned the process is likely to lead to job losses. The JSE-listed group has battled underperformance and decreasing profitability over several years, grappling with subdued demand amid stale construction activity and dumped cement imports and locally produced blended variants. In his debut annual presentation to the market on Monday, CEO Matias Cardarelli said PPC had a clear and bold plan for recovery focused on both fixing and rebuilding while also pursuing quick wins. The turnaround plan focuses on creating a leaner, more agile company. The short-term strategic focus on internal reorganisation would pave the way for growth in the next phase, however, job losses were inevitable, Cardarelli said. “We have put in place a leaner structure that we strongly believe is going to help us take decisions in a more agile and appropriate way. At the same time this is coming with a reduction of manpower costs,” he indicated. Cardarelli went on to say: “I’m not looking at big job losses, we are doing this in a very reasonable and cautious way, but a headcount reduction at the end of the process is expected.” Read the full original of the report in the above regard by Michelle Gumede & Jacqueline Mackenzie at BusinessLive Cosatu plans nationwide protest against retrenchments across multiple industries The Citizen reports that the Congress of South African Trade Unions (Cosatu) has stated its intention to exercise the right of workers to participate in protest action against retrenchments. On Monday, Cosatu held a media briefing regarding the outcomes of its central executive committee (CEC) meeting. The three-day meeting discussed among other issues, potential protest action over retrenchments and the formation of the Government of National Unity (GNU). Cosatu general secretary, Solly Phetoe announced that the CEC had resolved to stage a nationwide protest amid anticipated retrenchments across multiple sectors. “We have seen an increasing number of employers announcing plans to retrench workers, particularly in the mining, transport, retail and textile industries. Cosatu expects affiliated trade unions to lead campaigns in defence of jobs given the Section 189 notices served across industries,” Phetoe indicated. He said the protest action would target employers within the private sector as well as the government and that it would be protected in line with Section 77 of the Labour Relations Act. Earlier this month, Mercedes Benz SA announced plans to cut 700 jobs at its East London manufacturing plant, a move which Cosatu has rejected. Anglo American Platinum is also embarking on a retrenchment consulting process, placing over 4,000 jobs on the line. Sibanye-Stillwater has confirmed that up to 4,000 jobs in its gold operations could be in jeopardy. Earlier this year, the SA Post Office served more than 4,700 workers with retrenchment letters as the state-owned entity sought to reduce its headcount of more than 11,000 employees. The number of job cuts was reportedly reduced following consultation with unions at the CCMA. Read the full original of the report in the above regard by Molefe Seeletsa at The Citizen
Only one woman appointed to PetroSA’s new executive committee BusinessLive reports that the new CEO of state-owned oil and gas company PetroSA, Xolile Sizani, has wasted little time in restructuring the organisation in a leadership shake-up. But, only one woman made it to the group’s executive committee. This has raised eyebrows in some quarters in the company. The appointment of Sizani, previously the CEO of Servest, was announced by the cabinet at the end of February. He officially took over the role at the beginning of April. An internal communication from Sizani informing employees of the organisation’s new structure indicated: “Following an extensive review and consultation at the executive and the immediate level below, an optimised organisational structure has now been finalised for implementation. This structure takes into account the principles of accountability, responsibility and collaboration whilst at the same time remaining lean and cost effective.” The new structure displaced three women from the previous structure, namely Sesakho Magadla, Xoliswa Mpongoshe and Xolelwa Ntlango. The only woman remaining in the executive committee is group CFO Nombulelo Tyandela. PetroSA in its response said its leadership team expanded beyond the executive committee. “Your assertion that there is only one woman left is incorrect and in fact there are more than one woman in the leadership team. This is not accurate as we have 50% women leadership represented in the current structure compared to 36% women representation in the previous structure,” a PetroSA spokesperson claimed. Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive Other internet posting(s) in this news category
Pension funds can’t amend their rules to accommodate two-pot system until Ramaphosa signs bill Fin24 reports that according to retirement fund administrators, "critical" administrative moves – including President Cyril Ramaphosa signing the Pension Funds Amendment Bill (PFAB), and the resolution of tax issues – need to be resolved before the looming two-pot deadline. The system, which will be introduced in September this year, was officially established when Ramaphosa signed the Revenue Laws Amendment Bill into law this month. However, with the PFAB yet to be enacted by Ramaphosa, administrators say they cannot amend existing pension or retirement fund rules for the new system. The PFAB was officially passed with amendments by Parliament's National Assembly in May. "This piece of legislation is critical for implementing the two-pot system because, without it, retirement funds cannot amend their rules to cater for the system. The rules set out how a fund will administer the fund benefits and how members will access their fund benefits," Adri Messerschmidt of the Association for Savings and Investment SA (Asisa) pointed out. Changes for the two-pot system include the splitting of monthly retirement fund contributions into a "savings" and "retirement" component. Meanwhile, all retirement savings will be held within the "vested" component as part of the retirement component. Messerschmidt said administrators must also apply to the Financial Sector Conduct Authority (FSCA) before the fund amendments could be authorised. Moreover, the SA Revenue Service (SARS) has yet to finalise its tax directives for administrators. Messerschmidt reported: "SARS continues to engage with stakeholders, including retirement fund administrators, on their requirements for obtaining tax directives to have a savings withdrawal benefit paid out. SARS has stated that the public will be informed in due course of the requirements for tax directives for savings withdrawal benefits." Read the full original of the report in the above regard by Na'ilah Ebrahim at Fin24 Other internet posting(s) in this news category
Dismissed employee who called CEO ‘weak’ wins case against Jewellery Council BL Premium reports that a former accountant at the Jewellery Council of SA has been awarded R190,000 by the Labour Court.(LC) in a dispute with the council’s CEO over a R2.5m marketing campaign. Andira Maharaj, who had worked for the council for 13 years, was dismissed in 2021 after being found guilty in a disciplinary hearing of gross disrespect towards the council’s CEO, Lorna Lloyd. The relationship between the Maharaj and Lloyd broke down after Maharaj’s working hours were cut to three days a week and her salary by 40%. Maharaj took umbrage at Lloyd sending her work-related emails on days she wasn’t at work. An altercation ensued, leading to Maharaj’s dismissal. One of the matters Maharaj was found guilty of included her assertion that the company lost money on marketing campaigns and that staff were suffering as a result. The LC found that Maharaj had been purposely frustrated out of her job and ordered the council to pay her R190,000, namely the amount that was cut from her salary. “What came out clearly during the cross-examination of Lloyd was that it was not contested that the company spent over R2.5m on marketing campaigns without any return. The employee called this campaign irresponsible because the company was on a drive to save money, however, money was wasted on this marketing campaign and she had to bear the brunt of that decision,” the judgment reads. It goes on to indicate: “According to Lloyd, the employee accused her of being weak because she blamed her for using the money for marketing purposes. Even if this is true, this is not disrespect but simply a true status of what happened.” The council represents the interests of mining houses such as De Beers, Anglo American Platinum and Mintek, along with jewellers including American Swiss, Sterns, Arthur Kaplan and Foschini. Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive (subscriber access only)
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