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 recent South
African labour-related reports.


PUBLIC SECTOR AUSTERITY

Plea made that Treasury should ease up on fiscal austerity

BL Premium reports that according to Michael Sachs, who previously headed the national treasury’s budget office, the government should implement a less stringent path of austerity than that proposed in the medium-term budget policy statement (MTBPS). Sachs is now head of the Public Economy Project (PEP) at Wits University’s Southern Centre for Inequality Studies. After his presentation on the MTBPS to parliament’s two finance committees, he said: “I think less austerity would be better. A more gradual path to debt stabilisation will allow for less debilitating expenditure adjustments and a more credible outlook.” According to Sachs, the Treasury’s fiscal stance would be a “headwind” to economic growth as state consumption spending was projected to contract in real terms in 2026 and 2027, reducing the growth rate of aggregate demand in the medium term and perhaps for the next decade. The Treasury has projected reduction in noninterest spending from 23.4% of GDP in 2024/25 to 22.4% in 2027/28. It would also lead to a permanent contraction in the size of the state and probably lead to an increase in unemployment, inequality and poverty. Sectors such as education, health and policing would bear the brunt of the fiscal consolidation. “The spending path in our judgment will lead to a retrogression of constitutional rights. If the government is taking a path towards retrogression, it needs to make this explicit and explain why,” Sachs said. He was also critical of the government’s “lawnmower approach” to cutting services where everything was cut instead of being more targeted. Sachs moreover warned that reducing the inflation target as Reserve Bank governor Lesetja Kganyago would like to do would make it doubly difficult for the Treasury to achieve its fiscal goals.

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

Other internet posting(s) in this news category

  • Teachers unions urge action amid KZN education budget shortfalls, at The Mercury
  • Sadtu KZN calls for director-general’s intervention in urgent funding crisis for schools, at Daily News
  • The unseen effect of teacher cuts in the Western Cape, at Mail & Guardian
  • Popcru slams Treasury for using 'bloated wage bill' as scapegoat for ‘’inhumane’ wage offer, at TimesLIVE
  • Government eyes pensions to fund NHI, at BusinessTech


PLEA TO RETAIN AGOA

Solidarity appeals to newly elected US government to retain AGOA

In a letter to the US government on Thursday, Solidarity called on newly elected administration to maintain the good bilateral trade relations between the two countries.   The trade union specifically requested that the African Growth and Opportunity Act (AGOA) be upheld. In his letter to president-elect Donald Trump, the chairperson of the Solidarity Movement, Flip Buys, pointed out that approximately one in 37 SA relied on exports to the USA to put food on the table.   Buys emphasised how approximately 20% of those households depended directly on AGOA. According to Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), SA cannot afford to forfeit this trade agreement. “AGOA often benefits precisely those people in rural areas where there is not much other economic activity. For this reason, it is essential that this agreement remains in place for the sake of South Africa’s most vulnerable workers.   Africa has numerous communities of the same kind where trade with the world’s largest economy would not be possible without AGOA,” he noted. Moreover, around 30,000 of Solidarity’s members work in industries that benefit specifically from AGOA. The Solidarity Movement’s Head of International Liaison, Jaco Kleynhans, is currently in the USA where he will hold talks with numerous influential players in the newly elected government in order to emphasise SA’s dependence on AGOA. In a message to the SA Government of National Unity (GNU), the Solidarity Movement warned the GNU to be cautious not to jeopardize economic ties and trade benefits with the USA through hasty policy decisions and statements.

Read Solidarity’s press statement regarding the above at Politicsweb


HEALTH & SAFETY

Injured casual workers employed by Mister Sweet during strike yet to be compensated

GroundUp reports that casual workers who sustained serious injuries while filling in for striking workers at Premier’s Mister Sweet factory are worried they may never be compensated. The 11-week strike ended on 1 November. When Mister Sweet workers went on strike over two months ago, ‘Themba’ (not his real name) was among a group of unemployed people in Germiston who answered the company’s call for temporary workers. While Themba had no formal training, he was happy for the opportunity to earn R3,000 a week. However, just weeks into the job at the factory, one of Themba’s fingers was cut off. The finger was stitched back, but he says it is no longer useable and often numb.   Now that the strike has ended, Themba is afraid he may never find a job ever again. “I’m worried that now I’m as good as disabled,” he said, adding that he did not know if he would receive compensation. He is one of four casual workers, hired through a labour broker, who were badly injured while filling in for the striking workers.   During the strike, the Simunye Workers Forum voiced its concerns about the company’s use of inadequately trained casual workers tasked with operating large machines. While Premier said the casual workers had been trained before starting work, Themba claimed he had not been trained. Premier spokesperson Siobhan O’Sullivan pointed out that the company contributed to the Workers’ Compensation Fund (COIDA) to ensure that all employees, whether permanent, contract or casual, were covered for injuries and diseases contracted on duty. Workforce, with which Premier partners, was also registered with the fund, she said.   The injuries are being investigated by the labour department.

Read the full original of the report in the above regard by Kimberly Mutandiro at GroundUp

Driver of truck in crash that killed and injured Wellington farm workers arrested

Cape Argus reports that the driver of a light pick-up truck has been arrested following a crash that claimed the lives of two people and injured 20 others in Wellington on Wednesday. Mobility MEC, Isaac Sileku, said the incident involving agricultural workers travelling from New Rest to Allesverloren Farm, occurred at around 7am on the R44 between Wellington and Hermon. “Our deepest condolences go to the families and loved ones of the deceased. We understand the impact of this loss on not only the families but the community as a whole. We also extend our thoughts and prayers to those who are injured, wishing them a speedy recovery,” Sileku said.   Agriculture MEC Ivan Meyer called on farmers and producers who transported workers to ensure the safety of their vehicles.

Read the full original of the report in the above regard at Cape Argus

SA closes Lebombo border again as unrest in Mozambique intensifies

Mail & Guardian reports that SA on Thursday once more closed the Lebombo border crossing with Mozambique as post-election violence continued to sweep the country. “It was reopened but we have closed it again as threats on the grounds increased,” Border Management Authority (BMA) spokesperson Mmemme Mogotsi said. She indicated that the border authority was helping South Africans who wanted to leave Mozambique to return home. The border was temporarily closed on Tuesday after protesters torched trucks and destroyed infrastructure on the Mozambican side.   The BMA confirmed that several Mozambican officials had requested refuge on the SA side. At least 11 people have been killed since violence broke out after Frelimo, the party that has been in power since independence in 1975, won the 24 and 25 October elections by a landslide. The opposition claims the poll was rigged to give Frelimo’s Daniel Chapo more than 70% of the vote. The SA Department of International Relations and Cooperation on Wednesday issued a travel warning on Mozambique and encouraged all South Africans to postpone non-essential visits to the country until further notice. The Mozambican defence minister Cristóvão Chume has reportedly threatened to deploy the military to restore calm, saying the constitutional order was under threat.

Read the full original of the report in the above regard by Emsie Ferreira at Mail & Guardian

Road Freight Association sets up task team to protect truck drivers stuck at Lebombo border post

SABC News reports that the Road Freight Association (RFA) has set up a special task team at SA’s Lebombo Border Post to protect cargo truck drivers. The border is facing unrest following Mozambique’s recent election results.   The unrest led to the closure of the border on both the South African and Mozambican sides. The RFA’s Gavin Kelly indicated: “We’ve had the challenges of having a number of vehicles stacked at the border and not being able to go anywhere, so we’ve had to look after the drivers, we’ve had to make sure that they have access to ablutions, that they have had food and water and security. So that’s the challenge on this side of the border. Going across the border into Mozambique, there is a huge risk of being attacked. So the various authorities and our counterparts in Mozambique made sure that the main corridor from Lebombo down to Maputo is well policed – that the army are out there.” Meanwhile, one truck driver complained that he had been stuck at the border since Tuesday and added: “We are struggling with many things here, including water, there are no toilets and we sleep here. So anything can happen to us as drivers. There are police patrolling sometimes, but at night it’s a problem. We can’t even get out of the trucks to go relieve ourselves. Our situation is not good. We don’t know for how long we will be stuck here.”

Read the full original of the report in the above regard by Michael Mdluli at SABC News. Read too, SA truck driver spends night in bush after being beaten, robbed at border post, at News24 (subscription or trial registration required)

Other internet posting(s) in this news category

  • Justice Minister says police can’t behave like they are at a picnic when dealing with criminals or take a spoon to a gun battle, at Mail & Guardian


TRADE UNION NEWS

Nehawu’s foray into recruitment of teachers could see unions at each other’s throats over poaching

Daily News reports that the National Education, Health and Allied Workers’ Union’s (Nehawu’s) decision to embark on a recruitment drive to attach teachers in Kwazulu-Natal to its ranks could pit it against its fellow alliance partner the SA Democratic Teachers Union (Sadtu).   Both unions are affiliates of union federation Cosatu.   Nehawu has not previously sought to recruit teachers. In a document released by Nehawu, titled ‘The State of Education in KwaZulu-Natal and the Strategic Role of Nehawu to Rescue the Situation’, the union said its decision was based on Section 29(1) of the Constitution which stated that “everyone has the right to a basic education, including adult basic education.” It noted that over the past few years the teaching sector had faced major challenges. “In responding to these challenges, we will embark on a dedicated recruitment drive in all schools, circuits, districts and service centres. The union will also demand a meeting with the MEC for Education to discuss all these issues, organise pickets in districts in response to the national treasury’s neo-liberal austerity programme,” Nehawu indicated. University of KwaZulu-Natal political analyst Zakhele Ndlovu described Nehawu’s move as provocative, saying it would cause divisions within Cosatu with its affiliates fighting for the same membership. “It does not make sense at all, but the question is where is Cosatu as the mother body of these two unions? This is proof of what Cosatu has become, a shadow of its past,” said Ndlovu. He opined that if Cosatu did not act fast, it would see another breakaway similar to what happened when the National Union of Metalworkers of SA left the federation. Sadtu’s secretary in the province, Nomarashiya Caluza said her union was unaware that Nehawu had extended its scope to teachers.

Read the full original of the report in the above regard by Willem Phungula at Daily News

Other internet posting(s) in this news category

  • Divided Cosatu unions benefit employer during wage talks, says Popcru, at BusinessLive (subscriber access only)


UNPAID WAGES

Former Eskom Kusile security guards protest over R6m unpaid wages

The Star reports that disgruntled former employees of Venus Security International, who worked at Eskom’s Kusile Power Station in Mpumalanga, are demanding payment allegedly owed to them by their former employer. On Thursday, a group of male and female security guards went to the company’s offices at Standford Office Park, Centurion, hoping to meet with the owner or HR personnel. They staged a peaceful protest outside the office park, blocking several employees from entering for hours until representatives from the National Enterprises Workers Union Ya Afrika (NEWUYA) and the EFF Witbank branch negotiated access. The former employees waited for owner Hendrick Peter Kekana Kekana or HR to address their concerns or receive their memorandum of demand, but no one came out to assist them. According to NEWUYA national organiser, Josephine Mtshweni, Kekana owes 300 security officers approximately R6 million, meaning each officer is owed around R20,000. This amount includes benefits such as leave days, annual bonuses, severance pay, project bonuses, and provident fund contributions.   There are also claims that Venus Security has been deducting tax from employees’ salaries but failing to remit it to the SA Revenue Service. On 30 October, the security company had issued a statement indicating that payments from Eskom would be cleared, but only for workers not absorbed by the new contractor.

Read the full original of the report in the above regard by Ntombi Nkosi at The Star


BASIC EDUCATION / BELA ACT

Basic Education Minister confirms Bela Act ‘essentially’ ready for implementation, except for clauses 4 & 5

Daily Maverick reports that Basic Education Minister Siviwe Gwarube has confirmed that the Basic Education Laws Amendment (Bela) law is ready for implementation, except for clauses 4 and 5, implementation of which President Cyril Ramaphosa delayed for three months to allow for further consultation.   Speaking on Wednesday in the Western Cape Legislature, Gwarube indicated: “The Bela Act, as it stands, is essentially ready for implementation with the exception of clauses 4 and 5. As a department, we’ve already started the process of implementing the Bela Act, because, of course, it has been signed into law.” She added:   “In fact, we’ve started to engage provinces and to essentially roll out workshops … so that provinces are ready and are primed to be able to implement provisions of the Bela Act, with of course the exception of clauses 4 and 5.” Gwarube said she was waiting for the consultation process on the controversial clauses to conclude and said her department would be guided by those discussions, which were being led by the Presidency, on how to implement them. Amongst other amendments, the law introduces changes to how schools’ language and admissions policies will be decided. School Governing Bodies (SGB) currently have the authority to determine a school’s language policy. However, clause 4 of the Act grants provincial heads of education the power to override these policies. Clause 5 transfers control over admission policies from SGBs to provincial education department heads.

Read the full original of the report in the above regard by Lisakanya Venna at Daily Maverick


ALLEGED CORRUPTION / FRAUD

Dr Raymond Patel, former CEO of two Setas, arrested over alleged University of Fort Hare fraud

Daily Maverick reports that Dr Raymond Andrew Patel, a prominent figure in South African tertiary education circles and the former CEO of two sector education and training authorities (Setas) was arrested last Saturday for alleged fraud at the University of Fort Hare. Patel is currently CEO of Torapa Holdings. He had previously been CEO of the Manufacturing, Engineering and Related Skills Seta and CEO of the Chemical Seta. Patel also served on the board of the SA education quality watchdog, Umalusi. He appeared in the Dikeni Magistrate’s Court on Monday, 4 November 2024, and was released on bail of R50,000. National Prosecuting Authority spokesperson Luxolo Tyali said Patel was alleged to have been awarded a R3.6-million tender at the university and paid R1.6-million in kickbacks to university employees. Patel will appear again with his co-accused on 31 March. Tyali commented: “Patel is yet another service provider added to the list of University of Fort Hare employees, service providers and their entities charged with fraud and corruption.” He said the State would allege that the total amount of funds paid by the University of Fort Hare to the implicated service providers was more than R172-million, with the bulk of it allegedly finding its way to the pockets of the accused university employees. The university welcomed the ongoing investigations and arrests of individuals standing accused of serious crimes of fraud and corruption.

Read the full original of the report in the above regard by Estelle Ellis at Daily Maverick

Ex-municipal manager given five-years’ sentence, suspended for five years, in VBS Bank investment case

IOL News reports that former Fetakgomo-Tubatse municipal manager, Johannes Mohlala, who illegally invested R230m of public funds in the now-collapsed VBS Mutual Bank, was handed a suspended five-year prison sentence in the High Court in Pretoria on Wednesday. Mohlala, 60, pleaded guilty to contravening the Municipal Finance Management Act (MFMA) and was ordered to pay R100,000 to the VBS curator. The court suspended his prison term for five years on condition he did not commit a similar offence during this period. “The investigation revealed that Fetakgomo-Tubatse Local Municipality invested an amount of R230 million which was paid in five trenches from November 15, 2016 to February 19, 2018,” Directorate for Priority Crime Investigation (Hawks) spokesperson, Colonel Katlego Mogale indicated. These investments were made in direct contravention of municipal finance regulations, which prohibit municipalities from investing in mutual banks. The case took another turn when former chief financial officer Tumelo Ratau, 42, failed to appear in court, prompting the judge to issue a warrant for his arrest. The court will consider forfeiting Ratau's bail when the matter returns to court on 18 November 18.

Read the full original of the report in the above regard by Wendy Dondolo at IOL News. Read too, Former municipal manager handed five-year suspended sentence in VBS case, at SowetanLive. En ook, Voormalige munisipale bestuurder gevonnis oor VBS-verwante klagte, by Maroela Media


COMMUTING / PUBLIC TRANSPORT

Gauteng government interdicted from amending Putco contract

Moneyweb reports that bus transport company Putco has obtained an urgent interim interdict to stop the Gauteng government from unilaterally amending contracts entered into with it and withholding payment to Putco on that basis. Putco provides essential transport services primarily to people living in low-income areas in Gauteng and Mpumalanga and has done so for decades, with about 130,000 passengers transported daily on Putco’s buses. It is subsidised by the Gauteng Department of Roads and Transport (DRT) in terms of various contracts with the aim of Putco’s passengers paying a reduced price for their transport. The DRT claimed it was entitled to amend the agreements or vary the contracts entered into with Putco in June 2023 in terms of a clause in the agreement and on the basis that the terms of the agreement would “lead to unauthorised and irregular expenditure”. Putco said the DRT’s aim of reducing the rate per kilometre it paid and the number of scheduled kilometres agreed on would cause drastic and irreparable consequences for Putco, its employees and the passengers using its buses. It argued that the proposed rate reduction would result in Putco having to reduce its fleet by 212 buses and retrench about 400 employees. In a judgment handed down last week in the Pretoria High Court, Judge Elmarie van der Schyff said Putco’s application met the requirements of being dealt with on an urgent basis.   She ordered that, pending the final determination of current arbitration proceedings between the parties, the DRT be interdicted from breaching, varying, or amending the June 2023 contracts.

Read the full original of the report in the above regard by Roy Cokayne at Moneyweb

Other internet posting(s) in this news category

  • Taxi patrollers' actions are regrettable, says Santaco, at TimesLIVE

 


Get other news reports at the SA Labour News home page