In our Thursday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
Salga president tells unions to help get local government in order BL Premium reports that SA Local Government Association (Salga) president Bheki Stofile has called on labour to be more innovative in turning around the embattled local government sector, saying it needs to reimagine the way local councils are financed. Speaking at a conference of the Independent Municipal and Allied Trade Union (Imatu) in Cape Town on Wednesday, Stofile said the role local government would play in shaping the future of SA society was “more critical than ever”. The sector is dogged by malfeasance and fiscal challenges that have seen billions of rand wasted on fruitless, wasteful, unauthorised expenditure each year, affecting the delivery of basic services such as potable water, electricity, clinics, and refuse collection. “We find ourselves at a threshold where the need to stare into the face of the reality of what our present local government systems are and have the courage both to question them and refashion them for the best has been very apparent,” Stofile said. He added: “Increasingly, it has been felt that our approach, attitude, and experience regarding local government would need to change. This means returning to a fresh look at the architecture and design of our local government systems; at the heart of such a revisit lies the imperative of revisiting the financial and fiscal framework guiding local government.” He called on unions and civil society to play a critical role in holding municipal leadership to account and ensuring public resources were used for the benefit of the people. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
Life of air conditioning technician claimed in fall from roof on Monday Daily News reports that a man, identified on social media as Austin Mafala, fell from a roof and died in a workplace accident in Durban North on Monday. Tyron Powell of Marshall Security reported that at approximately 1.56pm on Monday afternoon, they received a frantic call from a client located on uMhlanga Rocks Drive. The client reported a severe incident involving a worker from an air conditioning company who had fallen from the roof of the premises. Netcare 911 was then contacted for medical support. “Netcare 911 paramedics arrived quickly and began treating the worker, who had sustained life-threatening injuries. Despite their best efforts to stabilise the patient, the worker tragically succumbed to his injuries and was declared deceased at the scene,” Powell indicated. “This heartbreaking incident serves as a sombre reminder of the importance of workplace safety,” Powell said. A KwaZulu-Natal police spokesperson confirmed the accident and said circumstances were being investigated. Read the full original of the report in the above regard by Thobeka Ngema at Daily News
Amid job freeze claims and salary non-payment fears, Gauteng health confirms R500m budget shortfall City Press reports that the Gauteng Department of Health (GDOH) on Wednesday responded to concerns over claims that public hospitals in the province were facing a staffing crisis, with allegations having been made that hiring has been frozen due to severe budget cuts. This followed warnings from DA MPL and health spokesperson, Jack Bloom, who revealed on Monday that hospital CEOs were informed last week not to hire new staff members. According to Bloom, overtime in respect of current staff has been reduced and some doctors and nurses have been warned they may not be paid in December. He attributed the budget shortfall to overspending on salaries following last year’s wage agreement as well as alleged financial mismanagement and corruption within the department. In response, GDOH spokesperson Motalatale Modiba acknowledged that the department faced a shortfall of more than R500 million in its employee budget as a result of last year's wage agreement, which was not fully funded by the Treasury. He said the department would continue to prioritise the filling of critical posts amid budgetary constraints. Modiba explained that the National Treasury’s cost containment measures, due to government's challenging fiscal situation, required the departments to seek approval from the provincial treasury and the office of the premier before filling any vacant positions. However, the department’s response did not address questions about whether doctors and nurses might not be paid in December. Read the full original of the report in the above regard by Thapelo Lekabe at City Press (subscriber access only). See too, Severe budget cuts put Gauteng hospitals at risk, DA warns, at The Citizen Other internet posting(s) in this news category
Basic Education Minister promises that no teachers will be retrenched next year Cape Times reports that Department of Basic Education (DBE) Minister Siviwe Gwarube assured MPs on Tuesday that despite budget cuts, no teachers would be retrenched next year. She advised that an appeal had been made to the National Treasury to consider the R32 billion shortfall faced by the sector during the Medium-Term Budget Policy Statement (MTBPS). The Select Committee on Education, Sciences and Creative Industries meeting began with chairperson Makhi Feni expressing disappointment that the National Treasury would not be available to present. “I am not happy – at least recommendations for the current challenge should have been presented … They should come and tell us what is happening and (we must) not just hear from the department. We wanted to know how they are planning to assist,” said Feni. DBE chief financial officer Ntsetsa Molalekoa advised that there was a need to cover a shortfall of about R32bn for the 2024/2025 financial year and R43bn for 2025/2026. Gwarube said they were aware the cutting of teacher posts had the committee worried. She commented that “we cannot risk the future of our children and the livelihoods of our educators.” Gwarube went on to say: “The reason we can make assurance there will be no teacher retrenchments: legislatively there is no tool for which this can be done. Legally that cannot take place. Feni responded: “We are comforted by the minister’s pronouncements, and that places the committee in a good position when it goes out to do oversight. We can see that efforts are being undertaken in ensuring that we are not negatively affected. We appreciate that.” Read the full original of the report in the above regard by Okuhle Hlati at Cape Times. Read too, 'We cannot afford to be shedding educator jobs,' says Basic Education Minister Siviwe Gwarube, at IOL News Other internet posting(s) in this news category
Inflation now under control even in a downside scenario, Reserve Bank models show BL Premium reports that in its latest Monetary Policy Review, the SA Reserve Bank (SARB) has disclosed the upside and downside scenarios it considered when it made its decision to cut interest rates in September. Its review shows that inflation is set to remain close to the Bank’s target of 4.5%, declining to an average of just above 3% in a best-case scenario in which the rand continues to strengthen over the next couple of years. This could potentially lead to a decrease of two percentage points in interest rates over the period. In the upside scenario, in which the rand appreciates 24% over the period, the average inflation rate comes down to 3.4% in 2025 and 3.2% in 2026. But even in a downside scenario, in which electricity prices, wages and rentals rise faster than expected, the average inflation rate is still below 5% for the next three years, at 4.7% in 2024, 4.5% in 2025 and rising to 4.8% in 2026. The review states that inflation expectations, which the Bank closely watches as a guide to how price setters such as businesses and trade unions will behave, have eased appreciably in 2024. With the rand strengthening, food and fuel prices moderating and core inflation improving, the Bank’s September baseline forecast was already much improved compared with earlier in 2024. It is now expected to average 4.6% this year, down from the 5.1% forecast in March, and to undershoot the 4.5% midpoint of the target range over the medium term. The Bank also upped its growth forecast to 1.1% for 2024, rising to 1.8% next year, though the review points out this is still well below SA’s “steady state” level of 2.5%. Read the full original of the report in the above regard by Hilary Joffe at BusinessLive (subscriber access only)
Almost half a trillion rand in bailouts have been paid to Eskom, Transnet and SOes over nine years Bloomberg News reports that bailouts for cash-strapped state-owned enterprises (SOEs) have cost SA taxpayers R456.5 billion over the past nine financial years, and the bill is set to rise to R520.6 billion by the end of March next year. The aid has been financed by increasing borrowing and cutting back on other budgetary allocations, with spending on infrastructure and essential goods and services the most impacted, the Treasury indicated in a presentation to MPs in Cape Town on Tuesday. Eskom has received the bulk of the bailouts. The power utility will have received a total of R496 billion by the end of the current financial year. The SA National Roads Agency (Sanral) has been alllocated a total of R47 billion and the national carrier, SA Airways, R49 billion. Transnet requested R61 billion late last year. Rudzani Mandiwana, the Treasury's chief director of asset and liability management, told lawmakers: "Broad reforms are underway in energy, freight, water and telecommunications. It will take time to reverse the consequences of operational, maintenance and governance failures at [state-owned companies] responsible for electricity, rail and ports." Read the original of the short report in the above regard at Fin24. Read too, R500 billion in taxpayer bailouts for Eskom, at BusinessTech
Another major retailer closing its doors in South Africa BusinessTech reports that Jumia Technologies, the Africa-focused e-commerce retailer that operates popular online retailer Zando, will be exiting the South African business by the end of the year to sharpen its focus on its other markets. CEO Francis Dufay said the group was “aggressively cutting costs” to try to turn profitable, which would include reducing headcount, exiting everyday grocery items and food delivery, and cutting delivery services not related to its e-commerce business. Zando was founded in 2012 and has become one of the more popular SA online fashion platforms. However, Dufay said that SA’s environment was highly competitive, which made operating in the country difficult. She indicated that the group was not planning to sell the operation, and the site would hold clearance sales before shutting down. This marks just the latest business operation in SA heading for closure, while others have reported operational difficulties. In September, South African online retailer Snatcher entered voluntary liquidation. Earlier in October, popular online fashion retailer Superbalist informed employees that it planned to cut a large percentage of its staff, which could amount to 28% of its workforce. Drip Footwear has entered liquidation, with employees laid off last week. Drip’s competitor, Cross Trainer, entered business rescue in August this year. Retailer West Pack also sought business rescue in May. Automotive parts retailer and wholesaler, Autozone entered business rescue in July of this year. Read the full original of the report in the above regard at BusinessTech Other internet posting(s) in this news category
Armed man ‘negotiated’ for community liaison job at Tshwane hotel construction site SowetanLive reports that a day after a man known as Eric Thokwana was chased away from a construction site at a Tshwane hotel after demanding to be a community liaison officer, another extorter came to the site armed with a gun and made the same demand. Renovations at Park Lodge Hotel started in January and are meant to be completed by the end of the year. One of the managers in charge of the renovations related how his colleagues were in a panic when Thokwana visited their site office and made job demands. “He came alone and he was very aggressive in his demands. He wanted us to pay him R15,000 to be a consultant between us and the community. We did not need a CLO but he was very aggressive and threatened that he’d shut down the site if we refused,” the employee indicated. After doing some research, they realised that Thokwana was from a neighbouring ward from the hotel. “We realised that he had no authority in this ward and we simply told him to go away and leave us alone. He never came back but I know a lot of companies here are scared of him,” said the employee. However, after Thokwana left another man came armed with a concealed firearm and demanded the company hire local labour and appoint him as a CLO. “When someone shows up on site with a weapon, you really do not stand a chance to have a fair negotiation with them. We did not stand a chance. We appointed him and he is on our payroll and has been getting R10,000 per month since February for doing nothing. He brought about six people as labourers and these people don’t even stay in Pretoria,” the manager explained. “Our company is paying salaries to people who are doing nothing on site,” he lamented. Read the full original of the report in the above regard at SowetanLive
Educor colleges back in business after suspension lifted The Witness reports that Educor has welcomed the reinstatement of its higher education institutions following the suspension of their operations by the Department of Higher Education and Training (DHET) in July 2023 for various transgressions. Some of the transgressions included failure to submit annual financial statements and tax clearance certificates for 2021 and 2022 as proof of their financial viability. The company was also accused of having misrepresented its student numbers for City Varsity, Damelin, ICESA City Campus, and Lyceum College. Students had moreover complained about the poor quality of teaching and learning, as well as the lack of proper administrative support. On Wednesday, Educor’s Michael Thurley said that following a meeting with senior DHET officials, Educor was elated with the reinstatement and was looking forward to creating stability and rebuilding the institution’s place in the market and public space. DHET Minister Dr Nobuhle Nkabane provisionally reinstated Educor’s registration on condition, among others, that it fully complied with the Council on Higher Education (CHE) accreditation requirements before commencing any teaching and learning activities. The institution is further required to submit comprehensive monthly reports to the department, and these should include, detailed financial statements, student enrolment statistics, and progress updates on compliance with CHE accreditation standards. Read the full original of the report in the above regard by Chris Ndaliso at The Witness. Read too, Fresh allegations emerge against Damelin College as Educor tries to restore pride, at The Citizen
Veteran detective, allegedly linked to hit squad, abandons bail bid in Vereeniging court News24 reports that veteran detective Michael Pule Tau, allegedly linked to a prolific hit squad, abandoned his bail application in the Vereeniging Magistrate's Court on Wednesday. No explanation was given for the sudden U-turn. Tau was out on bail in August following his arrest in connection with the murder of Vereeniging engineer Armand Swart, and was put under house arrest and barred from leaving his home without notifying the investigating officer. A month later, he was rearrested and detained for violating those bail conditions. Tau, a detective who has 30 years of service, was initially arrested in April, just hours after Swart was killed outside his workplace in an apparent case of mistaken identity. While Swart was waiting for the gate to open, another car swung alongside, and pumped 23 bullets into the car. Swart died at the scene. Two other men – the alleged triggermen Tlego Floyd Mabusela and Musa Kekana - were arrested on the day of Swart's killing after the vehicle used in the attack was flagged by licence plate-recognition cameras, leading police directly to them. Tau's legal team previously claimed he was too sick and infirm for prison life. But the investigating officer said nurses at Modderbee prison, where Tau had been held, indicated he was fit and well, and that he had lied to and blatantly misled the court. The case was postponed to 15 November for further investigation. Read the full original of the report in the above regard by Iavan Pijoos at News24 (trial registration required) One of the accused cops in jewellery robbery at Llandudno house admits to tampering with licence plates Cape Argus reports that a police officer, who is one of four accused of house robbery at a Llandudno residence, confirmed in court on Tuesday that he had tampered with the licence plates of the service vehicle used at the time of the incident. Four officers charged with robbery, appeared in the Wynberg Magistrate’s Court on Tuesday, where first accused, Sergeant Jacobus Groenewald, 44, was cross-examined by the State. The officers, part of the Operation Restore Unit, were nabbed by the Western Cape Anti-Corruption Unit following the reported house robbery at Sunset Avenue, Llandudno, on 14 September. The officers are charged with robbery with aggravating circumstances, reportedly for R20 million worth of jewellery. Several Cartier and Rolex jewellery boxes were found while the premises were searched, however, Groenewald said all these boxes were empty. Groenewald said he did not understand why the officers were being charged for stealing items they did not even see at the premises. Groenewald maintained that nothing was taken from the house and that the objective had been to arrest two suspects in a drugs bust. It was heard that the number plates placed on Groenewald’s vehicle were registered to police vehicles from elsewhere in the Western Cape. Groenewald confirmed that he had tampered with the licence plates because the vehicle was at his home frequently and he didn’t want to become a “target” during the arrest. Read the full original of the report in the above regard by Shakirah Thebus at Cape Argus Other internet posting(s) in this news category
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