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 Friday morning roundup, see
summaries of our selection of South African
labour-related reports.


MINING

Implats CEO says it’s ‘highly improbable’ new PGM mines will be developed in SA

BL Premium reports that Impala Platinum (Implats) CEO Nico Muller has ruled out the development of new platinum group metals (PGM) mines in SA, saying the long-term outlook for demand in electric vehicles has curtailed the desire to develop new assets in the sector. “I think it is highly improbable that you’re going to see material investment in new PGM assets in SA – in particular if you don’t have beneficiation capacity,” Muller opined on Thursday.   He added: “I don’t think our industry has ever had this long-term risk. For you to build a new mine you’re talking about 10 to 20 years. This is exactly the period where there is a long-term concern about electric vehicles.   I am not convinced that any shareholder or company is going to see a clear and attractive shareholder return for development in new assets. If you have processing capacity, that helps. Or if you’re doing it as an add-on to an existing operation where you’re looking at purely marginal increase in cost, that is possible. But new fresh projects in my view are highly improbable.” Estimates are that platinum supply will outstrip demand on the back of a rise in demand for green metals in response to the emergence of battery electrical vehicles, which have been receiving huge government subsidies around the world.   SA, the world’s biggest platinum producer, is bearing the brunt of a plunge in PGM prices over the past year. Producers have responded by increasingly focusing on cost-saving measures and cutting capital budgets as margins become tighter.

Read the full original of the report in the above regard by Kabelo Khumalo & Jacqueline Mackenzie at BusinessLive (subscriber access only)

Other general posting(s) relating to mining

  • Constitutional Court says no to Shell appeal bid on Wild Coast exploration, at BusinessLive
  • Warning signs for SA’s coal mining industry, at Daily Investor
  • Kumba to invest R11.2bn in cutting-edge technology, at BusinessLive (subscriber access only)


CRIME REPORTS

One suspect arrested after break-in and robbery at Limpopo home of deputy police minister Cassel Mathale

News24 reports that Deputy Police Minister Cassel Mathale's Limpopo home was broken into on Thursday. Police spokesperson Brigadier Athlenda Mathe confirmed the incident, adding that one person had been arrested. "Police can confirm a housebreaking and robbery incident at the private residence of the deputy minister of police," she indicated. Mathe said one person was arrested, and some of the stolen goods were recovered.   The police did not say what was taken.   "Investigations into the incident continue," Mathe advised.

Read the full original of the report in the above regard by Noxolo Sibiya at News24

Other internet posting(s) in this news category

  • Farmer and security guard accused of killing two men for allegedly stealing sheep, at News24 (subscriber access only)


WAGE DEALS

Economists believe above-inflation pay deals have to be tied to productivity

BL Premium reports that economists have sounded the alarm over above-inflation pay deals between workers and employers, saying they could keep the prices of goods and services high and relegate many to living below the breadline. But labour disagrees, arguing workers’ wages have not kept up with inflation and have stagnated over the years compared with the “ridiculous” and insane wages and benefits earned by captains of industry. In July 2024, the inflation rate eased to 4.6% from 5.1% in June. But, moderation in inflation has not stopped trade unions from demanding and securing inflation-beating increases (some of the significant above-inflation wage increases in 2024 are listed). Bureau for Economic Research economist Lisette IJssel de Scheeper commented:   “If you have wage increases that are above-inflation and above productivity growth, that fuels inflation in the economy. But also, the employer has to recoup the losses somewhere.   If wage increases are above-inflation but are aligning with productivity growth, that’s not a problem, but once wage increases run away from productivity growth, then that’s where you have a problem.” Efficient Group chief economist Dawie Roodt said the impact of above-inflation wage increases was bad, “unless there is stronger productivity growth”. He added: “If you look at SA, the rate of productivity tends to be below the rate of wage increases and there are many reasons for that. Labour in SA is very organised and the organisations are very strong.” But, Numsa spokesperson Phakamile Hlubi-Majola criticised analysts and economists who never complained about CEO salaries and the widening income inequality gap in key sectors of the economy.

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

Recent above-inflation pay deals

BL Premium lists, as part of an article on the need for pay deals to be tied to productivity, some of the recent significant above-inflation wage increases. These include the following: April 2024: The Communication Workers Union signs a one-year 6% wage deal with the cash-strapped public broadcaster SABC; April 2024: Harmony Gold signs a five-year wage deal with Numsa, NUM, Amcu, Solidarity and Uasa for increases of R1,200 in the first year, R1,250 in the second, R1,300 in the third, R1,450 in the fourth and R1,500 in the final year; May 2024: Numsa and the Steel and Engineering Industries Federation of Southern Africa (Seifsa) sign a pay deal for increases of 7%, 6% and 6% over a three-year term; May 2024: Numsa signs a two-year deal for increases of 5% and 6.5% with employers in the bus passenger sector; June 2024: Numsa signs a three-year pay deal with earth-moving equipment specialist company Almar Investments for 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; July 2024: Numsa signs a one-year 6.8% pay deal with Gautrain operator Bombela Operating Company, ending a 17-day strike; November 2023: Diamond producer De Beers signs a five-year pay deal with labour for increases of 7% in 2023 and 6% in the subsequent years until April 30 2028; May 2022: Anglo American Platinum signs a five-year wage deal with NUM, Amcu and Uasa for increases of 7.5% or R1,100 in the first year, rising to R1,500 or 7.5% in year five; and June 2022: Impala Platinum follows suit and signs a five-year pay hike deal with labour for increases of R1,150 in year one, up to R1,500 in the last year of the deal.

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


COST OF LIVING / INCOME

Updated poverty lines indicate how much SA’s poor need to survive in 2024

The Citizen reports that Statistics SA (Stats SA) has released the updated national poverty lines for 2024, which shows how much a person needs to survive. The national poverty lines change annually due to the changes in the cost of living.   Stats SA makes use of a cost-of-basic-needs approach, which links welfare to the consumption of goods and services. There are three lines that make up the national poverty line, namely the food poverty line, the lower-bound poverty line, and the upper-bound poverty line.   The revised statistics show that the food poverty line is now at R796 per person per month, from R760 in 2023. This is the amount of money a person needs to afford the minimum required daily energy intake. However, the food poverty line is commonly referred to as the “extreme” poverty line. The lower-bound poverty line is at R1,109 per person per month, from R1,058 in 2023. This is the poverty line amount combined with the average amount derived from non-food items of households whose total expenditure is equal to the food poverty line. The choice of reference households in this case is based on the assumption that households whose total expenditure is close to the food poverty line generally live on ‘survival foods’ and therefore, sacrifice some basic food needs in order to meet their non-food requirements. The upper-bound poverty line is at R1,634, from R1,558 in 2023.

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

Other internet posting(s) in this news category

  • From boerie to broke: R2 160 for a Saturday afternoon braai, at Moneyweb
  • The house and car you can afford on a police officer’s salary in South Africa, at BusinessTech


EXECUTIVE PAY

Pick n Pay shareholders push back against former CEO Pieter Boone’s R16m golden handshake

BusinessLive reports that Pick n Pay shareholders have expressed dissent at the R16m termination payout to former CEO Pieter Boone, triggering a JSE rule that requires the retailer to address their concern. At the AGM on Tuesday the group failed, in a nonbinding vote, to secure the required 75% majority to implement its pay policy. Under JSE listing rules, publicly traded companies such as Pick n Pay are required to table nonbinding advisory votes on pay policy for the top rank at their AGMs. If 25% or more vote against it, companies are forced to approach dissenting shareholders to address their concern. Shareholders questioned the board’s decision to award Boone such a substantial payout, especially considering the company’s financial losses and falling share price, which dropped more than 50% over the past five years. They called for transparency on the criteria used to determine executive payouts, as well as assurances that future executive remuneration would be tied more closely to company performance and shareholder value.   The board defended the payout, stating it was a legal obligation under Boone’s contract. All shares awarded to him under the restricted share plan were forfeited. It assured shareholders that future executive remuneration, including long-term incentives, would be more closely aligned with the company’s strategic goals. Shareholders were also unimpressed with the disclosure practices surrounding executive pay rates, particularly the omission of the lowest-paid employee’s salary.

Read the full original of the report in the above regard by Nompilo Goba at BusinessLive


NATIONAL MINIMUM WAGE

The unemployed suffer the most under national minimum wage

Maroela Media reports that Solidarity has warned in the light of a new report from the Solidarity Research Institute (SRI) that an increase in the national minimum wage will further increase unemployment.   With almost half of the country’s population already unemployed, the consequences of the proposed adjustment will be particularly catastrophic for those wanting entry-level jobs, Theuns du Buisson, the economic researcher at the Solidarity Research Institute (SRI), warned. He emphasised that was essential to consider unemployed individuals when establishing labour regulations, which was at the core of Solidarity’s submission to the National Minimum Wage Commission, which is considering adjustments to the national minimum wage. “For the past three decades, the government has only focused on those already employed, without paying attention to those who would like to work, but cannot find a suitable position,” Du Buisson pointed out. According to the expanded unemployment rate, 42.6% of the SA population is unemployed. Furthermore, 44.2% of young people between the ages of 15 and 34 are not currently employed, busy with education or involved in any training. Therefore, Solidarity considers the minimum wage regulations to be artificial and insists that the national minimum wage should be scrapped. Instead, Solidarity believes that training is the most effective way to increase income. According to the trade union, the government should stop obstructing entry-level jobs and that it should reconsider all minimum wage policies.

Read the full original of the report in the above regard by Jana Smit in Afrikaans at Maroela Media


WORKPLACE CONDITIONS

Guards attached to Home Affairs offices in KZN and Mpumalanga not coping after three years of no leave

The Star reports that scores of security officers attached to various Department of Home Affairs (DHA) offices in KwaZulu-Natal (KZN) and parts of Mpumalanga have accused their employer of exploitation and failing to allow them their overdue leave days for more than three years.   The workers, estimated to be more than 300, have also allegedly not being paid on time for months. Some say they are suffering from long-term illnesses as a result of being required to work long hours without their leave days being approved, even though that was against labour laws. The employees say that after numerous meetings, attempts to get the company to heed their calls have gone unanswered. Many want to quit but would then be without an income.   The guards, who work for Intense Protection and Tourist Services (IPTS Security), a private security company contracted by the DHA in most of its branches in KZN, want their complaints to be attended to as a matter of urgency. Other issues include termination of employment without due processes, having to pay for their uniforms from their own pockets and unpaid bonuses. One guard claimed that whenever there was a problem, employees were dismissed without a warning. Another employee said she was constantly on anti-depressants, energy drinks and other pick-me-ups in order to continue working.   A spokesperson for the DHA in KZN said the department was not involved in the employer/employee issues at IPTS Security, adding that it was not the duty of the department to get involved.

Read the full original of the report in the above regard by Siyabonga Sithole at The Star


STAFFING / RECRUITMENT

Facing voluntary resignations, SAPS makes progress in hiring more detectives

The Citizen reports that the SA Police Service (SAPS) has made progress by adding more detectives to its ranks, even as some are voluntarily leaving the service. Minister of Police Senzo Mchunu revealed in a parliamentary response that between 1 October 2023 and 19 July 2024, 527 detectives voluntarily left the SAPS. While the minister could not reveal the reasons for the resignations, as the SAPS had not asked the former employees, KwaZulu-Natal (KZN) police commissioner Lieutenant General Nhlanhla Mkhwanazi previously advised that elite Special Task Force members often left the SAPS for private security companies.   Currently, the number of detectives employed by the SAPS stands at 22,413. This is about 5,000 more than in September last year when senior management told the Portfolio Committee on Police that there were approximately 17,000 detectives responsible for the entire SA population. KZN has the highest number of vacancies, at 1,629, followed by the Western Cape with 1,555 vacancies and the Eastern Cape with 1,465 vacancies. Earlier this year, then-minister of Justice and Correctional Services, Ronald Lamola, revealed that since 2018, the National Prosecuting Authority had referred more than 1.8 million case dockets back to the SAPS for further investigations. This situation has been criticised by parties such as the Freedom Front Plus, which argues that the shortage of detectives is “paralysing” the criminal justice system.

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


TEACHER POST CUTS

'No choice' but to cut more than 2,400 teacher posts in Western Cape

TimesLIVE reports that despite imposing a drastic R2.5bn budget cut across the board, the Western Cape Education Department (WCED) says it still faces a R3.8bn budget shortfall over the next three years and is left with no choice but to cut more than 2,400 teaching posts.   Provincial education MEC David Maynier said: “We are doing everything we can to fight for our teachers, but we are being short-changed by the national government, receiving only 64% of the cost of the nationally negotiated wage agreement, leaving the province to fund the remaining 36%, resulting in a massive [education department] budget shortfall of R3.8bn.” He said budgets had been cut, including on administration, curriculum and infrastructure. “We have also frozen the recruitment of most public service staff, encouraged schools to convert contract appointments, and restricted the appointment of substitute teachers,” Maynier added. The individual circumstances of schools would be taken into account when determining their allocation of teachers. But, the SA Democratic Teachers’ Union (Sadtu) last week said it rejected with contempt proposals by the WCED to reduce the 2025 educator posts, with poor working-class communities having to bear the brunt of the reduction. The union added that overcrowded classrooms would affect the wellbeing of teachers and result in an increase in disciplinary challenges at schools.”

Read the full original of the report in the above regard by Kim Swartz at TimesLIVE. Lees ook, Wes-Kaap sal ‘voortveg’ vir onderwysposte, by Maroela Media. En, ‘Onderwysposte in die Wes-Kaap kán gered word’, by Maroela Media


SKILLS DEVELOPMENT

Ekurhuleni Artisans College students left in the cold as solar technicians skills project is terminated

The Citizen reports that students of the Ekurhuleni Artisans and Skills Training College were left shocked when they were told their solar technicians skills programme had been terminated and they needed to vacate their residency within 24 hours. This was through a verbal communication from their management, who broke the news at their Kempton Park campus on Wednesday. On Thursday, a group of the students marched to the Gauteng City Region Academy offices wanting answers from the deputy director-general Percy Moleke. “How will I support my family now that this programme is being terminated?” asked a student, who is a mother and breadwinner. Another student said she regretted leaving her factory job to join the programme. Students alleged there was no clear curriculum and there were weeks when they would do nothing. They also complained about not receiving their stipend and that those in residence were now being made to pay R1,000, despite the contract saying it would cover residence fees. Gauteng premier’s spokesperson Sizwe Pamla said the contracts were terminated due to poor performance.

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

Other internet posting(s) in this news category

  • Some ‘military vets’ in Lesufi’s crime prevention warden programme don’t quite qualify, say insiders, at Daily Maverick


RETIREMENT FUNDS / ‘TWO-POT’ SYSTEM

Local government employers defaulting on retirement fund contributions worries Municipal Workers’ Retirement Fund

SABC News reports that the Municipal Workers’ Retirement Fund (MWRF) has raised concerns about municipalities defaulting regarding paying over the retirement contributions of permanent employees, saying this was likely to affect their two-pot benefit. As the country prepares to usher in a new retirement fund dispensation, some municipal workers are concerned that they may not qualify to claim funds due to non-compliance by their employers.   MWRF’s principal officer Themba Mfeka reported that they have taken some of the defaulting municipalities to court. “Yes, we’ve been doing that since 2007. Some municipalities have been in court with us where we were issuing warrants of execution against their assets, I can mention Mafube is one of those, we have Kopanong, we have Tokologo in Free State, we have Masilonyana in Free State and we have Kai! Garib in the Northern Cape. We have great care in Eastern Cape, Blue Crane Route Municipality there are quite a number of them.”

Read the original of the short report in the above regard at SABC News

Other internet posting(s) in this news category

  • Two-pot retirement system: The long-term value of not withdrawing, at Personal Finance


OTHER REPORTS OF INTEREST

  • No more queues: Home Affairs to email ZEP waiver outcomes in move towards digitization, at News24 (registration required)
  • Ladysmith commuters stranded as bus company suspends service after taxi intimidation, at News24 (registration required)
  • Right of city waste pickers to alternative accommodation under spotlight, at Pretoria News
  • No additional troops will be deployed to DRC as SANDF faces shortfall, at The Citizen
  • Court orders Legal Practice Council to admit attorney despite history of plagiarism and dismissal for sleeping on the job, at IOL News
  • Fatima Khota of Rectron underlines the value of gender diversity in the advancement of ICT, at The Star

 


Get other news reports at the SA Labour News home page