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 Wednesday morning roundup, see
summaries of our selection of South African
labour-related reports.
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Reserve Bank’s Kganyago welcomes Godongwana's reappointment as finance minister Bloomberg News reports that SA Reserve Bank (SARB) governor Lesetja Kganyago has welcomed the reappointment of Enoch Godongwana as finance minister in the new coalition cabinet unveiled by President Cyril Ramaphosa. "We still have the same minister of finance that we have been talking to, who has always been providing guidance and leadership on macroeconomic policy and that gives us comfort," Kganyago said in an interview on Tuesday. The formation of the so-called government of national unity (GNU) also provided reassurance to investors who had been concerned about what type of coalition would be formed in the wake of general elections in May, he added. The ANC, which had governed SA for three decades, lost its parliamentary majority for the first time in the 29 May vote. That forced the party to form a coalition government with rivals including the centrist Democratic Alliance and other smaller parties. The SARB has kept interest rates at 8.25% at each of its three monetary policy committee meetings held so far this year amid uncertainty before the elections. The governor also said that while there continued to be risks to the bank’s outlook for price stability, it was maintaining its outlook that consumer inflation would return to the midpoint of its 3% to 6% target range by the first half of 2025. The rate has been above 4.5% for more than three years and the central bank expects inflation to average 5.1% this year. Read the full original of the report in the above regard at Fin24 Addressing work visa backlog high on new home affairs minister’s agenda BusinessLive reports that one of the focus areas of newly appointed Department of Home Affairs (DHA) Minister Leon Schreiber is to improve the processes for work visas, which he says are critical for economic growth. Business has repeatedly complained about the long delays companies experience in obtaining work visas for senior personnel. Schreiber said on Monday that addressing the visa backlog would be high on his agenda and explained further: “We absolutely have to look at visa processes. We have to take the visa issue very seriously as this is an economic catalyst for SA. We need to have a process whereby people who want to contribute skills or capital to SA are actually able to do that.” The interface with the Department of International Relations & Co-operation would also have to be examined because embassies were involved in getting visa applications processed. Schreiber expressed excitement about the recent move towards a remote working visa, which would make a huge difference when implemented. Schreiber, who has a PhD in political science, will bring to bear the insights gained while working for five years as a senior research fellow at Princeton University, looking at how developing countries in Africa and Asia could reform dysfunctional institutions. He also wants to ensure that there is a better working environment for staff, many of whom he believes want to deliver quality services. On battling corruption in the DHA, Schreiber said a long, sustained process would be required to deal with it. Read the full original of the report in the above regard by Linda Ensor at BusinessLive SA ministers to earn R2.68m per year, excluding VIP protection and support staff The Citizen writes that the increase in ministerial positions for the government of national unity (GNU) has raised questions about the cost of SA’s bloated cabinet. The annual salaries for the 32 ministers and 42 deputy ministers will reach a little over R180 million per year. Ministers will annually get R2.68 million, while their deputies will pocket R2.2 million. Additionally, the executives have been collectively allocated R500 million for private security and an additional R390 million for support staff. Choosing to not participate in the GNU, but rather apply pressure from the opposition benches, ActionSA highlighted the cost of President Cyril Ramaphosa’s cabinet. ActionSA president Herman Mashaba accused the ANC and DA of forgetting their principles when the possibility for personal gain presented itself. He stated: “South Africans have been calling for a reduction in the size of Cabinet for years given that our country has one of the largest cabinets in the world in the context of a country where most of its citizens languish in poverty and struggle to keep up with the cost of living.” In May 2023, new Home Affairs Minister Leon Schreiber began promoting the DA’s Remuneration of Public Office Bearers Amendment Bill. “South African taxpayers are forced to pay close to R1 billion every year to fund perks such as VIP security, support staff, luxury vehicles, as well as free water and electricity for cabinet cadres,” wrote Schreiber in 2023 at a time when the salaries were fractionally lower. Read the full original of the report in the above regard by Jarryd Westerdale at The Citizen Other internet posting(s) in this news category
Employee from Gauteng premier’s office applies for protection order against MEC Faith Mazibuko SowetanLive reports that an employee from Gauteng premier Panyaza Lesufi's office has applied for a protection order against MEC Faith Mazibuko after an altercation in March. The application for the protection order in the family court in Johannesburg was made on 17 May. The protection order application reads in part: “On 17/05/2024, [name of employee] applied for a protection order against the respondent [Mazibuko]...” The initial hearing date for Mazibuko to show cause why the court should not issue a final protection order against her was set for 4 June 2024. Mazibuko appeared in court again on 27 June but the case was postponed, said her lawyer Maurizio Mariano. Read the full original of the report in the above regard by Koena Mashale at SowetanLive Other internet posting(s) in this news category
Numsa to embark on strike at Ford SA from Thursday over bonuses BusinessLive reports that the National Union of Metalworkers of SA (Numsa) is set to embark on indefinite strike at Ford SA, which could disrupt production and throw global supply chain processes into disarray when thousands of workers abandon their posts on Thursday. The union has served Ford SA with a 48-hour strike notice. “The reason for the strike is that Ford is refusing to share its profits with workers. Our members are the creators of wealth and Ford has benefited hugely from the sweat and labour of workers. Ford management pretends not to understand the demand and they keep claiming it is ‘impermissible’ and they claim that workers have no right to demand bonuses,” Numsa’s Irvin Jim said in a statement. He went on to say that Ford SA could afford to pay workers “some kind of a bonus” as the company had “made a fortune” over the last four years. According to Jim, Ford failed to reach an agreement with Numsa at a CCMA conciliation meeting held on 11 June. After picketing rules were concluded, the commissioner issued a certificate of non-resolution of a dispute. Ford SA’s Duduzile Nxele requested non-striking employees to work from home for the duration of the strike. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive. Lees ook, Ford-werkers wil staak oor bonuses, by Maroela Media
Numsa welcomes above-inflation multi-year wage deal at earth-moving equipment firm Almar BusinessLive reports that the National Union of Metalworkers of SA (Numsa) has signed an above-inflation multi-term wage agreement with earth-moving equipment company Almar Investments, which will see workers earning average increases of 7% for the next three years. Numsa’s Irvin Jim advised that the pay deal would translate to a 7% increase from March 2024 to February 2025; an increase of 7.5% from March 2025 to February 2026; and 7% from March 2026 to February 2027. At 5.2%, the consumer inflation rate remained unchanged in May. “This is a major achievement for the union,” Jim commented. He went on to report: “A task-team comprising both Numsa and management will be set up to negotiate risk allowances, housing allowance and a full-time shop-steward agreement, and that negotiations must be concluded within six months from the date of signing the current new wage agreement.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive
Sibanye-Stillwater cuts some 2,000 gold jobs in latest retrenchment round Fin24 reports that precious metals producer Sibanye-Stillwater announced on Tuesday it had cut about 2,000 jobs from its gold operations, roughly half the number of positions that were on the line in the latest round of talks. Further to previous restructuring concluded during 2023 and the first quarter of 2024, the group announced in April that about 4,000 employees and contractors could potentially be affected in the latest round. It advised on Tuesday that 111 employees had been retrenched and 1,130 contractors affected, with 629 employees taking voluntary separation packages and early retirement. A further 116 positions were cut through natural attrition, while 448 employees accepted transfers. As of the end of 2023, Sibanye's SA gold operations employed about 28,000 people, with just over 6,000 of these being contractors. The group also said on Tuesday that consultations had resulted in an agreement that mining operations at its Beatrix 1 shaft in the Free State would continue on condition that there were no net losses on an average trailing three-month basis from 1 June. Beatrix 1 shaft currently employs 422 employees and 100 contractors. "It is extremely encouraging that the restructuring efforts undertaken in the SA region have not only successfully and proactively addressed loss-making operations thereby securing the benefits and value they continue to bring to multiple stakeholders, but through cooperative consultation with stakeholders, limited forced retrenchments to just 8% of total employees impacted since January 2023," CEO Neal Froneman indicated in a statement. Read the full original of the report in the above regard compiled by Karl Gernetzky at Fin24. Read too, Sibanye-Stillwater throws lifeline to Free State gold mine, at Miningmx Other general posting(s) relating to mining
ArcelorMittal SA keeps long steel plants in Newcastle and Vereeniging open, averting jobs crisis Business Report writes that ArcelorMittal SA (Amsa) has announced that its long steel product operations, which were previously considered for mothballing, will remain open, saving 3,500 jobs at the steel producer and as many as 80,000 jobs in the value chain. In an announcement on Monday, the company said that “despite progress being slower than anticipated and with some instances of disappointment” around negotiations with labour to reduce costs among others, it had “decided that the longs business will continue” to operate. The company said that its board and management were fully aware of the impact that the closure of the long steel business would have had on the beneficiation and manufacturing value chain in addition to further impacts on jobs and on the local economy, especially in KwaZulu-Natal. It noted that the immediate impact on the Unemployment Insurance Fund alone could have run into billions of rand. In deciding to keep the plants operational, Amsa noted that negotiations for the rail and ports parastatal Transnet to guarantee port and rail service efficiency had “progressed well”, while the company had also obtained an additional 12-month working capital facility of R1 billion that could be used to support ongoing operations. Meanwhile however, the flat steel products business in Vanderbijlpark experienced instability at its blast furnaces in April and May due to chilled hearth conditions. Read the full original of the report in the above regard by Tawanda Karombo at Business Report. Read too, Steel jobs crisis averted as ArcelorMittal SA keeps plants open, at BusinessLive. And also, ArcelorMittal keeps two plants open, saves 3,500 jobs, at The Citizen
Petrol price to drop by more than R1 a litre for second straight month, while diesel will also be cheaper TimesLIVE reports that motorists will wake up to good news on Thursday morning as the price of fuel will have dropped. Fuel prices have fallen for two consecutive months and the Automobile Association (AA) said this would bring much-needed relief to embattled consumers. The Department of Mineral Resources & Energy announced on Tuesday that the retail price of ULP93 petrol will drop by R1.05/l, while ULP95 will go down 99c/l. The wholesale price of diesel will decrease by between 24c (0.005% sulphur) and 30c (0.05% sulphur). Illuminating paraffin will decrease by 18c/l. The new prices take effect on 4 July. The department attributed the decreases to lower international petroleum prices and the rand appreciating slightly against the US dollar during the period under review. Read the full original of the report in the above regard at BusinessLive Other internet posting(s) in this news category
Disgraced Tembisa Hospital CEO's dubious appointment exposed by Public Protector News24 reports that disgraced Tembisa Hospital boss Ashley Mthunzi was parachuted into his plum job despite critical red flags on his own declaration form, and the top brass of the Gauteng health department casting aside their own rules to ensure he got the job. When he took up his post at Tembisa in April 2021, he became a key actor in a R1-billion contract extraction scheme first exposed by Babita Deokaran. He signed tainted medical supply contracts with grossly inflated prices and based on forged documents. Deokaran had been the department's chief director of financial accounting. She was assassinated three weeks after reporting her concerns that Tembisa Hospital coffers were being bled dry. A damming investigation report released by the Public Protector on Sunday has now revealed that officials, including the acting head of department (HOD), Arnold Malotana, ignored "material discrepancies" and rubberstamped Mthunzi’s appointment. Mthunzi had declared he was not a South African citizen and was staring down a misconduct investigation from his previous job. The former was a lie, while the latter turned out to be true. Investigators found that the panel which recommended that he be appointed never questioned him on these declarations and failed to conduct even the most basic of background checks, before shuffling him into the post. Mthunzi died in April this year while on suspension and while facing a marathon disciplinary inquiry on 13 charges of misconduct, which had dragged on for nearly two years. He was paid R2.5 million in salaries and benefits while the department tried to axe him and, because he died while in service, his estate is entitled to payments from the Government Employee Pension Fund (GEPF). Read the original of the extensive report in the above regard by Jeff Wicks at News24
Construction Education and Training Authority CEO accused of procurement interference and unlawful instructions City Press reports that a litany of allegations made against Construction Education and Training Authority (Ceta) CEO Malusi Shezi include interfering with procurement processes to ordering employees to perform unlawful instructions. The allegations are contained in a complaint to the Ceta board as well as a resignation letter by one of the executives who claimed she could no longer cope with working at the entity, which has seen at least five CFOs leave before their terms expired. Former CFO Honey Shangase wrote in her resignation dated 20 February that she could no longer work for the agency because “I base all my management decisions, values, and morals on specific principles such as fairness, equality, honesty, respect, and accountability. Unfortunately, there are instructions that you (Shezi) give me that I cannot execute as they are not aligned with my principles stated above.” Supply chain manager Tumiso Mphuthi warned Shezi about his interference with the procurement processes, however the CEO allegedly started instead to gather information that he could use to get rid of her. “When he could not find anything, he resuscitated a misconduct case in which Mphuthi and others were found to have not followed the due processes during which they were reinstated,” a source said. In a complaint to the board chairperson on 21 June, Mphuthi complained about the lengthy suspension she had been subjected to for more than a year. Ceta’s Mabo Thobela that after Shangase’s abrupt resignation the Ceta board had twice invited her to address it on her allegations and, through an independent process, to substantiate and demonstrate the allegations that she had levelled against the CEO. On both occasions, Shangase had been unable or unwilling to avail herself of these processes. Thobela indicated that Mphuthi was also currently engaged in and undergoing a disciplinary process, facing charges of gross financial misconduct and supply chain irregularities where she has an opportunity to state her case and clear herself. Read the full original of the report in the above regard by Abram Mashego at City Press (subscriber access only)
Vindicated Prasa CEO demands R14.9m back pay in respect of unlawful dismissal TimesLIVE reports that vindicated Passenger Rail Agency of SA (Prasa) group CEO Zolani Matthews is ready to return to work but is demanding nearly R15m in remuneration and benefits for the period that he was unlawfully dismissed. The Labour Court on Monday dismissed an application by Prasa to review an arbitration ruling that reinstated Matthews in 2022. In a letter addressed to Prasa chair Nosiviwe Nokwe-Macamo on Monday, Matthews indicated that he was willing to return to work on Tuesday. He added: “I am owed 31 months’ salary in the amount of R14,983,333. I hereby request that this be paid into my attorney’s trust account by no later than 17h00 on Thursday, 4 July 2024, failing which I shall launch an application for contempt of court.” He further requested a reconciliation of other entitlements and benefits owed to him, including accrued annual leave, salary increases applicable to the position and a cellphone allowance, payment of which should be made by 17h00 on 12 July 2024, “subject to my agreement with amounts included in the reconciliation.” Matthews was dismissed by the rail agency in November 2021 for holding dual citizenship, which Prasa at the time said was a material breach that he had failed to disclose. An arbitrator then ruled that Matthews should be reinstated with back pay. However, Prasa applied for a review of the ruling, which the Labour Court dismissed on Monday, stating that the contract remained in existence. Read the full original of the report in the above regard by Rorisang Kgosana at TimesLIVE
Two former ABSA employees sentenced for R1m fraud scheme using unique user codes The Citizen reports that two former Absa employees who used their access to the bank’s electronic banking system to carry out fraudulent activities totaling over R1 million have been sentenced for fraud. The Gqeberha Specialised Commercial Crimes Court sentenced Florika Owusu, 31, and Abongile Tyusha, 30, for their roles in a fraudulent scheme while employed by Absa between November 2019 and June 2021. The two were sentenced to five years for fraud and theft and 10 years for money laundering, with four years suspended for five years on the condition that they do not violate the Organised Crime Act during that time. The sentences will run concurrently. Spokesperson for the Eastern Cape branch of the National Prosecuting Authority (NPA), Luxolo Tyali, explained further: “They (Owusu and Tyusha) were entrusted with unique user codes, which the bank used to trace all transactions performed by its employees. They opened Absa accounts in the names of deceased individuals and foreign nationals without their knowledge. They issued debit cards for these accounts to facilitate fraudulent transfers and withdrawals. They identified and reactivated 18 dormant accounts, mainly belonging to foreign passport holders, including deceased South African citizens.” Following the account reactivations, stolen money was sent into the false accounts that Owusu and Tyusha had opened. Stolen funds, totalling over R1 million, were transferred to accounts controlled by the duo, withdrawn or spent. The stolen money was spread over a number of accounts. Read the full original of the report in the above regard by Chulumanco Mahamba at The Citizen. Read too, Former Absa bank employees sentenced to 15 years for R1 million fraud, at IOL News
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