In our Friday morning roundup, see
summaries of our selection of South African
labour-related reports.
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Reserve Bank holds repo rate steady at 8.25%, but September cut now more likely BL Premium reports that as had been widely expected, the Monetary Policy Committee (MPC) of the SA Reserve Bank (SARB) has kept the repo rate steady at 8.25% for a seventh consecutive meeting, warning again that “the battle against inflation is not yet won”. Still, a more positive outlook that inflation will ease more quickly than previously expected has raised expectations that the Bank could start cutting rates at its next meeting in September. On Thursday, Governor Lesetja Kganyago said four members of the committee preferred an unchanged stance and two preferred a reduction of 25 basis points. “In discussing the stance, MPC members agreed that restrictive policy remains appropriate to stabilise inflation at 4.5%,” Kganyago said. He reported that SA’s consumer inflation outlook had improved and the Bank now expected inflation to return to the midpoint of its 3%-6% target band in the fourth quarter of 2024, after previously forecasting price increases would dip below 4.5% only by the second quarter of 2025. Headline consumer price inflation for 2024 is now projected at 4.9%, compared with the 5.1% forecast at the previous meeting. Kganyago said the MPC had previously identified that higher food prices could pose a risk to inflation down the line despite recent disinflation in the category. The repo rate was last adjusted in May 2023, when the Bank raised the rate by 50 basis points (bps) to a 15-year high of 8.25%. Borrowing costs have surged 475 bps since November 2021, putting pressure on indebted South Africans and the economy. Read the full original of the report in the above regard by Denene Erasmus at BusinessLive (subscriber access only). Lees ook, Rentekoers weer onveranderd, by Maroela Media More food will be exempt from VAT, fuel levy to be looked at, Ramaphosa tells parliament TimesLIVE reports that to cushion South Africans from the soaring cost of living, the government will expand the list of food items that are exempted from value added tax (VAT), President Cyril Ramaphosa told parliament in his opening address on Thursday. The move, he said, was necessary to further protect and support poor South Africans amid rising food prices. Zero-rated food products include brown bread, maize meal, vegetables, milk, eggs and tinned fish. Ramaphosa also said that the government of national unity (GNU) had resolved to review the formula used to determine the price of fuel. In 2022, the National Treasury intervened to give a reprieve to motorists by reducing the fuel price by R1.50 a litre for about three months. Ramaphosa furthermore indicated that the government would conduct a comprehensive review of administrative prices, such electricity tariffs and municipal rates and taxes, with electricity having increased exponentially in price in the past few years. Ramaphosa noted that the high cost of living was made worse by asset poverty and that job creation was essential to dealing with poverty. Read the full original of the report in the above regard at TimesLIVE. Read too, GNU to tackle high cost of living, poverty, says Ramaphosa, at News24 Cosatu, Saftu disappointed with Reserve Bank’s decision to keep repo rate unchanged EWN reports that trade union federations are disappointed that the SA Reserve Bank (SARB) has kept the repo rate unchanged at 8.25%. The repo rate has been at 8.25% for more than a year now and remains at a 15-year high. The prime rate, which is the interest rate that commercial banks charge their clients for loans, also remains high at 11.75%. Cosatu’s Matthew Parks said that the SARB had failed to take the opportunity to give relief to millions of workers who were struggling to cope with rising costs. He commented: "We had hoped the reserve bank would have reduced the repo rate and give some comfort to millions of workers who are just drowning in debt, and they would also be useful and a positive injection to the economy, which is really stagnant and growing at 1%, and we are struggling to create jobs, as we have about 42% unemployment rate." Saftu spokesperson Trevor Shaku said that they were also not pleased with the decision. He indicated: "We have argued since the South African Reserve Bank started its rate-hiking trajectory, that high interest rates are not conducive for a good economic growth because they attack the most important layer of the economy which is the consumers." Read the original of the short report in the above regard by Ntuthuzelo Nene at EWN Other internet posting(s) in this news category
Municipal wage talks must consider cost of living, says Salga boss BL Premium reports that the SA Local Government Association (Salga), which is the employer body representing the country’s 257 municipalities, says it has given its negotiators the leeway to discuss wages with an open mind and to factor in the rising cost of living. But, it has also cautioned against bloating the wage bill. Salga, the Independent Municipal and Allied Workers Union (Imatu) and the SA Municipal Workers’ Union (Samwu) have been negotiating wage increases at the SA Local Government Bargaining Council since Monday. While Samwu’s primary demands include a one-year 15% wage increase – almost three times the 5.2% inflation rate recorded in April and May – Imatu president Keith Swanepoel said the union would not be making its demands known. “Save to say we are in negotiations. We are still in the process. It is going well. It is slow because this is a big sector. Let’s hope for the best,” he commented. Salga president Bheki Stofile said the association had asked its negotiating team to “go to the talks with a very open mind”. He added: “We said we must look into the extreme cost of living today, but we must also be careful not to balloon the salary bill beyond the required percentage. Our team is very informed.” The rising cost of living has resulted in food, fuel, transport and electricity costs shooting through the roof and has spurred unions to demand above-inflation increases to offset it. Municipalities are at the forefront of service delivery but many are grappling with capacity challenges. This has led, in many instances, to the collapse of services including the provision of refuse collection, drinkable water and sanitation, while systemic looting, corruption and fraud have become rampant. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
SARS condemns assassination attempt on advocate working for revenue service TimesLIVE reports that SA Revenue Service (SARS) commissioner Edward Kieswetter has condemned “in the strongest possible terms” the attempted assassination of advocate Coreth Naude, a lawyer acing for the revenue service. An unknown gunman opened fire on Naude who was in her car as she arrived at her hotel in Durban on Thursday afternoon. She was reportedly shot three times and suffered wounds to the face, neck and upper body. “This shocking act is intended to intimidate officers of the court to abandon the vital work they’re performing in furtherance of our country’s legal system. It undermines the authority of the state,” Kieswetter said. He added that such acts must be resisted and defeated for the betterment of the country and to ensure that no-one was above the law. SARS called on law enforcement agencies to act with speed in pursuing and arresting those who attempted to take the life of Naude. Read the original of the short report in the above regard at TimesLIVE Rental storage facility in Sunnyside gutted by fire on Thursday morning, no injuries reported The Citizen reports that flames flared up at a rapid pace at a rental storage facility in Sunnyside, Pretoria, on Thursday. The facility housed several rooms filled with a wide range of products, from cars to computers. The flammable items in the storerooms contributed to the fire’s intensity, which allowed it to spread quickly from one room to another. According to Tshwane Emergency Service Department acting spokesperson Lindsay Zwelithini Mnguni, the fire at the storage facility on Troye Street was reported to the City of Tshwane Emergency Services Call Centre at 6:14am. “Upon arrival, firefighters began with operations and called for backup as the fire was spreading fast to the 40 storage rooms,” said Mnguni. Additional resources were brought from the Central Fire Station. The firemen first worked on containing the blaze to prevent it from spreading to nearby buildings. About three hours later, the fire was extinguished, and no injuries were reported. It is not yet known how the fire started. Read the full original of the report in the above regard by Oratile Mashilo at The Citizen
SANDF warns that recruitment 'job advert' is a scam TimesLIVE reports that the SA National Defence Force (SANDF) has warned the public that an “advertisement” stating it was recruiting was a scam. “The advertisement in circulation is not a legitimate military recruitment advert and it was not issued by the SANDF recruitment office. There is no official recruitment drive under way in the SANDF,” the SANDF indicated. It added that the intent of the criminals circulating the ad on various social media platforms was to fleece unsuspecting and vulnerable citizens. “The repeated deceitful acts by these unpatriotic faceless criminals targeting our unsuspecting youth is abhorrent, unethical, illegal and should be condemned by law-abiding citizens. These unscrupulous criminals are known in the communities where they are recruiting from and the SANDF encourages those who may know them to anonymously report them to the SAPS,” the defence force commented. Read the original of the short report in the above regard at TimesLIVE George municipality issues warning over EPWP job scam IOL News reports that in a recent public notice, the George Municipality has raised alarm over a scam targeting job seekers under the guise of the Expanded Public Works Programme (EPWP). Reports have emerged showing dishonest individuals pretending to be EPWP staff, offering jobs in exchange for money. According to the municipality, scam victims are approached with offers to secure EPWP jobs for a fee. Scammers request money via money transfer services, promising applicants a spot on the next month’s employment list. Victims are also told to collect EPWP uniforms after making the payment. In response to these incidents, the George Municipality has issued a strong warning, clarifying that such solicitations are fraudulent. The EPWP operated by the municipality does not require applicants to pay for job guarantees. Officials have emphasised that any request for financial transactions in relation to EPWP employment should be viewed with suspicion and reported immediately. The municipality has encouraged those affected by or aware of such scams to come forward and assist in preventing further exploitation of vulnerable individuals. Read the full original of the report in the above regard by Ronewa Jessica Mashamba at IOL News
Solidarity sends strongly-worded objection to Eskom about race requirements in YES programme On Thursday, Solidarity wrote a strongly-worded letter of objection against Eskom’s “crude application of race requirements in a job creation programme for the youth.” In its letter to Eskom, the trade union indicated that it had learned that approximately 190 jobs have been reserved for only black employees under the banner of the government’s YES programme. According to Solidarity, these practices are illegal when measured against various local laws as well as international conventions on racial discrimination. Annika Labuschagné, a litigator in Solidarity’s Legal Department, pointed out that they were also irrational “when one considers that Eskom’s employer – the government – actually drew a line through this type of action when it reached an agreement with Solidarity regarding a more nuanced affirmative action dispensation.” This agreement was reached in June 2023. “These quota systems are not only outrageous; they are also illegal now. On the one hand, our country is moving in the direction of inclusion where we are building a better future, while on the other hand, we are stuck with government organisations such as Eskom who is actually looking at the future through racially tinted glasses with these types of programmes,” Labuschagné noted. In its letter of objection, Solidarity demanded that the positions be made available to all applicants, and it said it would proceed with court action if Eskom failed to heed this demand. Read Solidarity’s full press statement on this matter at Polity
Ramaphosa confident GNU partners will find consensus on implementing NHI News24 reports that in his Opening of Parliament Address on Thursday evening, President Cyril Ramaphosa expressed confidence that parties in the government of national unity (GNU) could iron out their differences about National Health Insurance (NHI). While noting that there was much contestation around the NHI, Ramaphosa added that “there is broad agreement that we must draw on the resources and capabilities of both the public and private sectors to meet the healthcare needs of all South Africans equally”. He said that as NHI was implemented, “we will focus on strengthening healthcare infrastructure, which many people during the debate and discussion on the NHI have said we must focus on. We will also improve [the] training of healthcare personnel and use technology to improve healthcare management.” Ramaphosa further indicated: "In implementing the NHI, we are confident that we will be able to bring stakeholders together and that we will be able to resolve differences and clarify misunderstandings." He signed the NHI Act into law two weeks before the elections despite a chorus of resistance from medical practitioners, the business community and opposition parties. Last week, in the parliamentary debate on the health budget, Health Minister Aaron Motsoaledi delivered an impassioned plea for the NHI. However, two GNU partners, the DA and FF Plus, expressed their opposition to it. Read the full original of the report in the above regard by Jan Gerber at News24. Read too, Ramaphosa forges ahead with NHI, despite objections, at TimesLIVE
State ready in case of Eastern Cape health spokesperson who allegedly used a fake matric certificate to get a government job News24 reports that the State is ready for trial in the case of Eastern Cape health department spokesperson Sizwe Kupelo, who is accused of using a fraudulent matric certificate to get a government job more than 20 years ago. Kupelo appeared in the East London Commercial Crime Court on Thursday, where he faced two counts of fraud, two counts of uttering and one count of forgery. He told the court he intended to plead not guilty to the charges. The State said it had seven witnesses lined up and that there were no outstanding investigations in the case. A departmental disciplinary hearing cleared Kupelo of wrongdoing in 2022. Kupelo's lawyer said that the department had been "correct" to clear his client of wrongdoing. "There was no requirement that he must produce a matric certificate when he was hired for the job. There is completely no case against him," he argued. According to the charge sheet, Kupelo applied for a communication officer post in the office of the premier in Bhisho in March 2002. He was appointed a month later. In November 2002, he was appointed as a deputy director of communications for Department of Health in Bhisho. In a skills audit, it was established in 2020 that Kupelo had never had a matric certificate. The State’s attorney alleged: "He (Kupelo) instead allegedly submitted a fraudulent certificate during his employment." The case was postponed to 15 October for a pre-trial hearing. Read the full original of the report in the above regard by Sithandiwe Velaphi at News24
Ex VW fleet administrator sentenced to 15 years for fraud and corruption will serve an effective five years IOL News reports that a former fleet administrator at Volkswagen SA (VWSA), found guilty of fraud and corruption amounting to R12 million, has been jailed to 15 years, part of which has been suspended. Christo de Jager, 61, was sentenced in the Gqeberha Specialised Commercial Crimes Court on Wednesday. The court sentenced De Jager to five years for fraud and 10 years for corruption, with the latter wholly suspended for five years. He will serve an effective five years in jail. Eastern Cape National Prosecuting Authority (NPA) spokesperson Luxolo Tyali said De Jager.was sentenced for his role in a fraud scheme that siphoned over R12 million from the company. De Jager was the facilitator of the fraud and used his position to approve and refer fraudulent invoices for payment, thereby abusing the trust placed in him as a senior employee responsible for managing VWSA's fleet of vehicles. The NPA said that the court found that he collaborated with Auto Trust Body Repairs, in a series of fraudulent activities over the period spanning from November 2014 to April 2021. Invoices purportedly detailed repair work on VWSA fleet vehicles, despite many vehicles either not requiring repairs, being repaired by another service provider, having not sustained any recorded damage, or related to vehicles which were not owned by VWSA. The court further found that Auto Trust, in collusion with De Jager, issued 594 false invoices totalling over R12 million. Read the full original of the report in the above regard by Jolene Marriah-Maharaj at IOL News. Lees ook, VW-werknemer skuldig aan miljoene se diefstal, bedrog, by Maroela Media Karoo Hoogland Municipality ex acting manager found guilty of paying himself a performance bonus IOL News reports that the former acting manager of Karoo Hoogland Municipality in the Northern Cape has been found guilty of theft and contravention of the Municipal Finance Management Act. Louis Nothnagel, 62, was convicted in the Kimberley Commercial Crimes Court this week. The Directorate for Priority Crimes Investigation (known as Hawks) said Nothnagel was found guilty of paying himself a performance bonus while at the municipality, without the necessary approvals. The matter was adjourned to 1 October for sentencing proceedings and the accused’s bail was extended. CFO Marius Botha had been charged alongside Nothnagel, but died during the trial. Arina Botha, 52, the wife Marius Botha, was found guilty of money laundering. The deputy CFO, Jacobus van Schalkwyk, was found not guilty on all charges against him.” Read the full original of the report in the above regard by Jolene Marriah-Maharaj at IOL News
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