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.


MUNICIPAL WAGE NEGOTIATIONS

Samwu and Imatu consider 6% pay hike proposal for municipal workers

BusinessLive reports that the SA Municipal Workers’ Union (Samwu) and the Independent Municipal and Allied Trade Union (Imatu) are seeking mandates after the completion of wage talks at the SA Local Government Bargaining Council (Salgbc).   The two unions held three rounds of talks with the SA Local Government Association (Salga), which the employer association representing the country’s 257 municipalities. The talks resulted in facilitators tabling proposals for parties to consider. The proposals, dated 15 August, encompass a five-year wage deal for a total 6% increase for the 2024/25 financial year. Wages would then be increased by CPI + 0.75% for year two and three and CPI + 1.25% for year four and five.   In the event CPI is less than 4%, workers shall receive a 4% wage increase (from years two to five) and if it is more than 7%, the wage increase shall be deemed 7%. The facilitators also proposed that the homeowner allowance be reviewed from the current rate of R1,066.41 by the same salary increase percentage of 4.5% to R1,109.07 from 1 July 2024.   “The minimum wage shall be reviewed from the current R9,531.54 by 4.5% to R9,960.45 from July 1, 2024, and a further adjustment by 1.5% to R10,109.85 from March 1 2025,” the facilitators further proposed. The parties have until 2pm on 2 September to formally communicate their acceptance or non-acceptance of the proposal in writing to the Salgbc. Imatu’s Johan Koen said he was “cautiously optimistic” that union members would accept the proposal. Samwu said it was consulting its members for a mandate on the proposal. Salga indicated: “Should all the parties endorse the proposed salary and wage agreement it will come into operation with effect from July 1 2024 and shall remain in force until June 30 2029.”

Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive. Read too, Municipal worker unions have two weeks to consider wage proposal after talks with Salga, at EWN


ILLEGAL MINING

Twenty-nine foreign nationals arrested for illicit diamond mining activities in Northern Cape

The Citizen reports that on Friday, the Northern Cape’s Operation Vala Umgodi team cracked down on illicit mining activities and arrested 29 undocumented individuals. Law enforcement officials confiscated mining equipment and diamond-bearing gravel in a sweep of regions including Sizamile location, Port Nolloth, Bontekoei, and Nataboi mining areas. Teams comprising the SA National Defence Force (SANDF), the Department of Home Affairs Immigration Services and Springbok Public Order Police executed the disruptive activities. “The suspects were detained to be processed and verified by the Department of Home Affairs Immigration Services officials before being formally charged and presented to Court for deportation,” said a police spokesperson. In a separate incident, 14 Zimbabwean nationals were arrested last week for operating illicit gold processing facilities in Eikenhof, near Lenasia.   The arrest came after law enforcement authorities followed up on numerous complaints from the community.   The suspects appeared at the Johannesburg Magistrate’s Court on Thursday, 15 August.

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


BUSINESS RESCUE

The Cross Trainer voluntarily enters business rescue

The Citizen reports that sportswear retailer The Cross Trainer, owned and operated by the Frame family under Frame Leisure Trading, has voluntarily entered business rescue. The family said the Covid lockdown restrictions were the beginning of the business’ difficult times and they have struggled to maintain payments to some of the 67 stores they own. George Nell from Corporate Business Rescue has been appointed as the business rescue practitioner. Nell said the hundreds of people employed by the retailer would not be affected by the business rescue process. However, former employees of the retailer said difficult times have already begun for them as they were not informed about the decision of the business being rescued. “People arrived at the shop and we were told the shop will close, then the next day we were told that we are being retrenched.” Another employee said she was told she was retrenched, however, when she went to claim her UIF money, she was told the system did not show she has been retrenched. Some of those who lost their jobs in April claimed they had not been paid in full. “We are not getting our money, and our boss never discussed with us that he would be paying our money bit by bit. We had to take him to the CCMA and the labour department where he made promises that he will give us our money.” Nell said they would look into the employees’ complaints while they found a way forward to get the Cross Trainer stores back on their feet.

Read the full original of the report in the above regard by Tshehla Cornelius Koteli at The Citizen

Satawu approaches court over nonpayment of salaries by business rescuer at North West bus company

BL Premium reports that the North Gauteng High Court will on Tuesday hear an urgent application by the SA Transport and Allied Workers’ Union (Satawu) for an order compelling business rescue practitioner (BRP) Thomas Hendrick Samons to pay its members who are employees of the Northwest Transport Investments (NTI) their salaries and other benefits. The long-outstanding payments include medical aid, pension fund and UIF contributions, from February to August.   NTI is an entity of the North West provincial government which owns and runs the North West Star bus company (NWS) and Atteridgeville Bus Services (ABS), which employs more than 1,000 employees and transports thousands of commuters daily between the North West and Gauteng. NTI, NWS and ABS are in business rescue, with Samons appointed in 2022 as BRP by the provincial government. The nonpayment of salaries and employment benefits had taken a heavy toll on the employees, with some having lost their homes and cars, said Satawu’s legal representative, Dhevan Ramiah. Additionally, Satawu members who were employed by NTI, NWS and ABS and who had since retired, have allegedly not received their pension payouts. In his answering affidavit, Samons said that while Satawu was a registered trade union, “it is not the representative trade union in the workplace.” He elaborated: “During February 2024, I was approached by the SA Workers Union [Sawu], who presented me with the following documents [revealing that hundreds of] ... employees had indeed terminated their membership with the applicant.” Samons also argued that Satawu’s application was “as presented and prosecuted, an abuse of process and vexatious.”

Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)


TROUBLE AT THE TOP

Absa in search of seventh CEO in less than seven years as Arrie Rautenbach takes early retirement

BusinessLive reports that Absa is looking for yet another CEO after incumbent Arrie Rautenbach opted for early retirement following “discussions with the board” after weeks of speculation that he did not enjoy the support of his executive team. He will cease to be the CEO and an executive director of the board from 15 October, followed by a six-month contractual notice period that will be served as garden leave. He will serve the group in his current role until 15 October. Charles Russon will become interim CEO of Absa Group and Absa Bank from 15 October, subject to regulatory approval. He will also become an executive director on the boards. Russon becomes the sixth CEO, either on an acting or permanent CEO of Absa since 2019. The announcement means Absa is in search of its seventh CEO, whether in a permanent or acting capacity, in just six years. The leadership instability at the bank is in stark contrast to its peers. Russon has been CEO of Absa’s Corporate and Investment Bank (CIB) since 2018 and a group executive committee member since 2014. He joined Absa Capital in 2006 as CFO and has held numerous senior roles in the group, including regional head of finance for Absa Group, COO for Absa Group and CEO: engineering services for Absa Group. Yasmin Masithela will become interim CEO of Absa’s CIB effective from 15 October. She is currently managing executive: corporate transactional banking at CIB and has been in that role since May 2019.

Read the full original of the report in the above regard by Kabelo Khumalo & Jacqueline Mackenzie at BusinessLive. Read too, Absa CEO Arrie Rautenbach agrees to take early retirement, at Fin24 (registration required)

Prasa’s hiring and repeated firing of CEO has so far cost R15m

GroundUp reports that legal botchups in the hiring and firing of the Passenger Rail Agency SA (Prasa) group chief executive officer Zolani Matthews have cost the embattled rail agency at least R15 million so far in payouts to Matthews. Following an arbitration award and a Labour Court ruling, Prasa was forced to reinstate Matthews last month and back pay him for the 31 months he had sat at home.   No sooner had he returned to work than Prasa fired him again, this time citing “operational requirements”.   The board relied on a termination clause in his employment contract. It told him, in a letter, it would not allocate any duties to him “as it does not require you to perform any duties”.   The position has been filled and “it is neither practical nor desirable for you to perform your duties when the incumbent is already performing these duties”. The letter, signed by board chair Nosizwe Nokwe Macamo, records that in line with the arbitration award and Labour Court ruling, Prasa had reinstated Matthews retrospectively and in July 2024 had paid his arrear salary of 31 months, being R15,345,833. “You were employed on a fixed term contract of five years, commencing 8 March 2021 until 7 February 2026. Your contract is still left with 17 months … as a result the board has resolved to put you in the position you would have been in had your contract not terminated for operational reasons. The effect of your termination of employment is that you will be paid the remainder of your contract,” Macamo indicated. This amount is still being calculated. Matthews signed up for the job with a package of R5.8 million a year. He was also given a “sign on incentive fee” of R300,000, a company car, cell phone allowance and could claim performance bonuses.

Read the full original of the report in the above regard by Tania Broughton at Moneyweb

Busisiwe Mkhwebane back in court seeking R10m gratuity from Office of Public Protector

The Citizen reports that former public protector Busisiwe Mkhwebane is expected back in the North Gauteng High Court regarding her urgent application to be paid a R10 million gratuity. Mkhwebane filed papers in March over the nonpayment of the gratuity, which she argued was due to her. While previous public protectors received an end-of-service gratuity on leaving office in line with the conditions of service passed by the National Assembly in 2002, the decision to withhold Mkhwebane’s gratuity was informed by a legal opinion stating she was not entitled to the R10 million due to her removal from office. The current Public Protector advocate Kholeka Gcaleka in her affidavit said Mkhwebane had no right to the remedy claimed as she did not vacate office but was removed for serious misconduct and incompetence. Mkhwebane was impeached by the National Assembly just before her seven year non-renewable term ended in September last year.   According to Mkhwebane, she is struggling to make ends meet and is earning significantly less in her new role as an Economic Freedom Fighters MP. In her application, Mkhwebane highlighted the “extended delay in receiving a response from the office of the public protector and Gcaleka and the history of malicious conduct dating back to May/June 2022 as additional grounds for the punitive order being sought”. Mkhwebane has asked for relief in various forms, including that the court should order her former employer to ensure that the gratuity was paid no later than 30 days after the date of the judgment’s delivery.

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

Other internet posting(s) in this news category

  • Opinion: Absa CEO churn adds to bank’s woes, at BusinessLive (subscriber access only)


MINIMUM WAGES

Minimum wage rates set for candidate attorneys

Fin24 reports that candidate attorneys are set to earn a minimum of R72,000 a year (rural areas) and R96,000 a year (urban areas) after the Legal Practice Council of SA (LPC) published a notice in the Government Gazette last week relating to the salary requirements for the profession.   The monthly minimums during vocational training will be R6,000 for rural areas and R8,000 for urban areas.   The LPC said it would review the salary rates in future, as the economic climate and other relevant factors changed. Candidate attorneys have long complained about their work conditions, including unpaid overtime and long hours. According to a survey released by the LPC last year, more than half of candidate attorneys said they worked 40 to 45 hours per week, with more than 90% saying that they were not paid overtime and they were not afforded medical aid.   Meanwhile, more than a third of respondents (1,957 attorneys were surveyed) said they paid candidate attorneys R6,000 or less, or nothing at all. Most candidates earned between R6,000 to R12,000 per month. Sixty percent of the surveyed attorneys said that law firms would become reluctant to employ candidate attorneys – and employ fewer – if a minimum wage was set for them.

Read the full original of the report in the above regard by Na'ilah Ebrahim at Fin24 (registration required)

Nearly half of SA’s domestic workers earn less than statutory minimum wage, survey reveals

Moneyweb reports that nearly half (46%) of domestic workers in SA still earn less than the legally prescribed minimum wage of R27.58 per hour, which amounts to R220.64 per day if the person works for eight hours.   This is one of the findings of SweepSouth’s annual survey on the compensation and working conditions of domestic workers. A total of 5,600 domestic workers participated in the survey. The report shows that 98% of domestic workers in the country are women, and they earn an average of R33.35 per hour. This translates to R266.82 for an eight-hour day. The few men in the industry earn slightly more at R34.24 per hour or R273.92 for an eight-hour workday. Although these average wages are higher than the minimum wage, the report shows that 46% of workers still earn less than that.   The median income, the point where half earn more and half earn less, is R5,242 per month for those who work at least five days a week for SweepSouth and R3,404 for the rest. The minimum wage on the same basis is R4,413 per month. When distinguishing between domestic workers based on their specific tasks, those who care for children and cook do better, with monthly median incomes of R3,464 and R3,463 respectively. Gardeners fare the worst at R3,128 per month. Domestic workers who care for the elderly have median earnings of R3,324, and cleaners earn R3,348 per month. Those who work full time for one person do better than piece workers with different employers. They earn R3,702 and R3,250 respectively.   Employers in the Western Cape pay significantly better (R3,557) than those in Gauteng (R3,291). In the rest of the country, things are even worse for domestic workers with median incomes of R2,659 per month for working at least five days a week.

Read the full original of the report in the above regard by Antoinette Slabbert at The Citizen. Lees ook, Huiswerkers steier weens lewenskostekrisis, by Maroela Media


NATIONAL HEALTH INSURANCE

Don’t fall for Presidency’s NHI coaxing any longer, Solidarity exhorts

Maroela Media reports that Solidarity’s recommendation on Monday to organisations targeted by the government with its presidential health compact was that they should turn their backs on the compact and demand that the National Health Insurance Act (NHI) be repealed. The signing of the compact has been postponed for the time being due to a lack of support, with Business Unity SA (Busa) and the SA Health Professionals Collaboration (SAHPC) having indicated that they were not in favour of some of its provisions. It is Solidarity’s belief that this compact’s goal is to raise support for the NHI. Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), said the signing of the compact was postponed “precisely because no one apart from the government actually still believes that the NHI is workable.” He indicated: “It is very clear that this compact would be just another opportunity for the government to try to create the impression that the private sector supports the NHI, when this is not the case at all. We encourage other groups not to sign this compact, as is the case with Busa.” According to Du Buisson, the government is in a predicament with the NHI as it is desperate to show how the NHI is enjoying support, while the opposite is true. “There are fundamental shortcomings to the NHI that cannot be hidden, and even if the government refuses to admit it, it is necessary for the private sector and the public to see it for what it is,” Du Buisson said. Solidarity served court documents against the NHI Act on the government in May and said it would “continue full steam ahead with the litigation until an indication is given that the NHI will be repealed.”

Read the full original of the report in the above regard by Tania Heyns in Afrikaans at Maroela Media


ALLEGED COP CRIME

Another KwaMashu cop linked to Richmond robbery and deadly police shoot-out arrested

TimesLIVE reports that a second KwaMashu police officer allegedly linked to an armed gang which robbed a Richmond shop owner and staff and was involved in a gun battle with police on Sunday has been arrested. KwaZulu-Natal (KZN) police spokesperson Col Robert Netshiunda said the officer escaped during a shoot-out with police at the home of a known cash-in-transit robber in Lindelani in Ntuzuma. During the shoot-out, two suspects were killed while several others, including two KwaMashu cops, escaped. Netshiunda said further information led police to a wounded police officer — whose gun and police vehicle were linked to the robbery – hiding in a shack at Phindangene informal settlement in Ntuzuma B. He opened fire on the police and died during the exchange. On Monday, police received information about the whereabouts of the second officer.   “The suspect, who is a 38-year-old police constable also stationed at KwaMashu police station, was located at a hospital north of Durban where he was being treated for a gunshot wound on his left arm. He will appear in court soon,” Netshiunda indicated.

Read the full original of the short report in the above regard by TimesLIVE

Pietermaritzburg cop arrested for allegedly raping a complainant at a police station

TimesLIVE reports that the Pietermaritzburg Magistrate's Court has granted bail of R5,000 to a police officer arrested by the Independent Police Investigative Directorate (Ipid) last week for allegedly raping a woman who had gone to a police station to obtain an affidavit.   On Monday, the officer appeared in court on charges of rape. The case was postponed to 11 October for further investigation. On 15 August, the 26-year-old complainant allegedly went to the Pietermaritzburg police station and met the police officer, who was dressed in full uniform. Ipid spokesperson Phaladi Shuping indicated: “The officer offered to assist the complainant and asked her to follow him to his office. The officer allegedly asked her to wait in the office and went to fetch an affidavit.   He came back and completed the affidavit and then he allegedly made advances towards the complainant. She rejected his advances and the police officer allegedly locked the door, removed his service pistol, placed it on the table and allegedly raped the complainant.”   Shuping said the complainant reported the incident to her family and they took her to Mountain Rise police station to open a case.

Read the original of the report in the above regard by Shonisani Tshikalange at TimesLIVE


OTHER REPORTS OF INTEREST

  • Former SARB deputy Kuben Naidoo on his big new challenge at Investec, at Fin24
  • FNB appoints La-Cell Mouton as sole CIO, at Moneyweb
  • Tiger Brands extends Tjaart Kruger’s tenure as CEO, at BusinessLive
  • Limpopo taxi driver and passenger killed in hail of bullets, at TimesLIVE

 


Get other news reports at the SA Labour News home page