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


TOP STORY - UNEMPLOYMENT RATE DROPS

Decline in unemployment rate in third-quarter outstrips expectations

Fin24 reports that SA’s unemployment rate fell by more than expected in the third quarter, declining by 1.4 percentage points to 32.1%. This was the first decline in the unemployment rate in a year, and lower than the median forecast (32.8%) expected by economists surveyed by Bloomberg.   Statistics SA reported that the number of unemployed people decreased by 373,000 from the second to the third quarter this year. The largest employment gains were recorded in community and social services (194,000), construction (176,000) and trade (109,000), while the finance sector (-189,000) and private households (-32,000) shed jobs. However, some 3.5 million (or 34%) out of 10.3 million young people between the ages of 15 and 24 years were not in employment, education or training. While the unemployment rate among graduates increased slightly – from 9.7% in the second quarter to 9.8% in the third – jobless rates among those without qualification remained much higher. The unemployment rate among black Africans (36.1%) remained higher than the national average, with almost 39% of black African women without jobs. The unemployment data painted a relatively positive picture, noted Standard Bank economist Dr Elna Moolman. But Moolman cautioned that it also showed that employment in the formal private sector outside of agriculture essentially moved sideways.

Read the full original of the report in the above regard compiled by Helena Wasserman at Fin24 (subscription or trial registration required).   Read too, Labour force survey: Unemployment decreases by 1.4%, at The Citizen

Economists believe positive factors now at play can spur job creation

BL Premium reports that economists say the combination of improved sentiment, better electricity production, the formation of a government of national unity (GNU), lower interest rates and a focus on infrastructure development will start to encourage a broader increase in private-sector fixed investment and job creation. This was indicated after Stats SA data showed the economy created 294,000 jobs in the third quarter, so improving the unemployment rate to 32.1% from 33.5% during the period. However, Stanlib chief economist Kevin Lings said SA’s unemployment rate was still “extremely high” by historical and international standards.   He indicated: “The lack of a consistent and compelling increase in SA employment reflected a combination of factors including a persistent skills shortage, sluggish economic growth, poor productivity, and a lack of fixed investment spending by the private sector, state-owned enterprises as well as government.” But Lings added that fortunately economic sentiment had improved since the elections in May. “It is also clear that within the labour market, youth unemployment remains SA’s most important economic challenge, highlighting the extreme difficulty young people experience in trying to obtain their first job opportunity — irrespective of qualifications,” Lings pointed out. Cosatu’s Zanele Sabela said that the fact that 294,000 people were employed in the third quarter was “undoubtedly spurred on by the more than 220 days of no load-shedding”.

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

KwaZulu-Natal’s unemployment rate rises despite national decrease

Daily News reports that KwaZulu-Natal (KZN) recorded an increase in the unemployment rate in the third quarter of the year.   This was revealed in the third quarter labour survey released by Statistician-General Risenga Maluleke on Tuesday. Approximately 2,000 people lost their jobs in the province. Maluleke said that out of nine provinces only KZN and Gauteng recorded losses while other provinces gained. Gauteng was hardest hit with 66,000 job losses. The most improved province was the Free State which recorded 48,000 job increases in the third quarter. Despite Gauteng and KZN unemployment increases, the overall unemployment rate in the country dropped from 33.5% in the second quarter to 32.1% in the third quarter, which translated to a 1.4% decrease in unemployment. In this year’s third quarter, the highest employment gains were recorded in the Eastern Cape with 83,000 jobs, followed by Western Cape with 75,000, North West 69,000, Mpumalanga 49,000, Limpopo 33,000, Free State 30,000 and Northern Cape 23,000. The largest increases in employment were recorded in community and social services (194,000) followed by construction (176,000) and trade (109,000.

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

  • Werkloosheidsyfer daal eerste keer vanjaar, by Maroela Media
  • Cautious optimism: SA’s job market improves slightly but four in 10 still jobless, at Daily Maverick
  • Werkloosheidskoers: Groen lote moet ekonomiese hervorming versnel, by Maroela Media


OCCUPATIONAL HEALTH & SAFETY

Man arrested for roadside killing of KZN traffic officer on the N2

News24 reports that a man, who allegedly shot and killed a KwaDukuza Road Traffic Inspectorate (RTI) superintendent and robbed a taxi driver and his commuters on Monday last week, has been arrested. Superintendent Mariemuthoo Desmond Arumugam, 50, was killed on the N2 near Groutville when he noticed that a taxi was parked incorrectly and went to investigate, unaware that there was an armed robbery in progress.   According to police, on 4 November the suspect boarded a minibus taxi in KwaDukuza, which was headed to Durban along the N2 highway. He then robbed the driver of an undisclosed amount of money and also robbed four passengers of their cellphones at gunpoint. "The suspect fired shots towards the traffic officer and killed him instantly. The driver of the minibus taxi abandoned the vehicle and ran for his life. The gun-toting suspect took over the driver's seat and drove the vehicle with the passengers to Thembeni area in KwaDukuza where he abandoned it," KwaZulu-Natal police spokesperson Colonel Robert Netshiunda reported. Investigations led the police to Thubelihle informal settlement in Melmoth where the suspect was arrested on Monday. The 27-year-old man will appear in the Ntuzuma Magistrate's Court on Wednesday, on charges of illegal possession of a firearm and ammunition. On the same day, he will make another court appearance at the KwaDukuza Magistrate's Court where he will face charges of murder, carjacking and armed robbery.

Read the full original of the report in the above regard by Sakhiseni Nxumalo at News24 (subscription or trial registration required)

SA doctors put on a brave face and soldier on despite poor mental health

BL Premium reports that according to a survey from the Medical Protection Society (MPS), SA doctors regularly continue to work despite feeling mentally unwell, thereby reducing their capacity to empathise with patients and raising the risk of mistakes. The MPS, which provides medical indemnity to 300,000 healthcare professionals worldwide, surveyed 802 doctors in SA about mental health and the workplace. Most of the participants (59%) worked solely in the private healthcare sector, 18% worked in the public sector only, 18% worked in both public and private facilities and the remaining 5% worked for other institutions such as universities and research organisations. The findings indicate many SA doctors are putting on a brave face and pressing ahead with their jobs despite poor mental health.   Almost three quarters (72%) of the respondents said they had at times gone to work or continued to work despite not feeling mentally well enough to do so, and 61% said they felt guilty if they took time off because of their mental health. More than half (58%) said working while feeling mentally unwell contributed to a loss of concentration and more than a third (38%) said poor mental health contributed to practising defensive medicine. The findings were consistent across all age groups, with doctors both young and old saying they felt pressure from patients and colleagues to work regardless of their mental health. Doctors who felt anxious and overwhelmed are more likely to hesitate in making a diagnosis, order additional tests and prescribe more medicines than were strictly necessary.

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


MINING REPORTS

Police monitor mine tunnel exits as thousands of illegal miners remain underground in North West

IOL News reports that thousands of illegal miners remain underground at mine shafts in in Orkney in the North West as Operation Vala Umngodi intensifies. Law enforcement agencies are reportedly stationed at exit points at mines to process illegal miners as they emerge from underground. The SA National Defence Force (SANDF) and SA Police Service (SAPS) have cut off access to food, water, and other necessities as part of their increased efforts to stop illegal mining, so compelling miners to come to the surface. Since the start of the operation, a total of 1,004 illegal miners have surfaced from underground tunnels in the North West, but there are still an estimated 4,500 illegal miners believed to be underground. eNCA reports indicate that many of those still underground are in declining condition, weak, and unwell, and are frantically looking for food and water. They are currently negotiating a safe underground escape with the authorities. As the miners' health hazards continue to rise, the situation is becoming more urgent. Concern over the humanitarian situation developing underground and the wider social and economic effects of illicit mining in the area is growing among local authorities and the community.

Read the full original of the report in the above regard by Kamogelo Moichela at IOL News. Read too, Ramaphosa extends deployment of SANDF to support SAPS in clamping down on illegal mining, at Cape Times

Other labour / community posting(s) relating to mining

  • Carletonville communities complain of health problems from mine dust, at SABC News


EXECUTIVE PAY / WAGE GAP

Shoprite has to engage with unhappy shareholders over executive pay

Fin24 reports that investors holding more than a quarter of Shoprite shares opposed its executive pay, thus requiring SA's largest retailer to address dissenting shareholders' concerns. Put to the vote at Shoprite's AGM on Monday, the remuneration policy vote garnered 73.674% in favour and 26.426% against, while the implementation report received support by 74.29% of voting right holders, with 25.71% against. As both were just under the 75% threshold, chairperson Wendy Lucas-Bull confirmed at the meeting that this would accordingly trigger a consultation with shareholders. The company will set a date to hear their concerns about its remuneration approach. Shoprite reported last month that its CEO Pieter Engelbrecht's total pay package for the past financial year was R83.272 million, a nearly R20-million increase compared to the previous year. The pay package included deferred incentives that will only vest in two years. Excluding this incentive, Engelbrecht's total pay in 2024 was R68.523 million, including prior share awards and other short-term incentive targets. This equated to a 6.6% – or R3.857 million – increase on the R64.66 million he received in the previous year. His basic salary was R18.863 million in the past year, from R17.7 million in the previous year – also a 6.6% increase. Increasingly, shareholders at SA-listed companies have been pushing back against executive pay, given the ever widening pay gap that exists between minimum wage workers and CEOs.

Read the full original of the report in the above regard by Nick Wilson at Fin24 (subscription or trial registration required)


EDUCATION BUDGET CUTS

Budget constraints force Gauteng education department to delay teacher promotions until April

News24 reports that the Gauteng department of education has postponed the appointment of teachers who applied to be promoted as heads of department, deputy principals and principals until April next year   because of budget constraints.   In a circular to schools dated 11 November, Gauteng education's head of department, Rufus Mmutlana, informed principals that the current budget constraints "have significantly impacted the department's compensation of employees budget and the ability to implement new appointments within the 2024/25 financial year."   Meanwhile, the Western Cape is set to lose 2,407 teaching posts in January because of budget shortfalls amounting to R3.8 billion. Separately, the National Professional Teachers' Organisation of SA (Naptosa) has accused the KwaZulu-Natal (KZN) education department of failing to pay schools the full norms and standards funding allocation. Naptosa's Thirona Moodley informed members on 6 November that the department's failure to pay the full amount in funding "has left schools desperate" and added that the provincial education department had also failed to pay teachers their pay progression increments, which were due to have been paid on 1 July. Jaco Deacon of the Federation of Governing Bodies of SA Schools (Fedsas) said the organisation had become aware of several cost-cutting measures implemented by provincial education departments, including the moratorium on non-educator posts such as those in administration, finance, and hostel management – but the workload remains unchanged. He said the appointment of teachers, as well as those to promotion posts, was frequently delayed by several months.

Read the full original of the report in the above regard by Prega Govender at News24 (subscription or trial registration required)

Sadtu threatens showdown on education budget cuts

The Mercury reports that the SA Democratic Teachers’ Union (Sadtu) in KwaZulu-Natal (KZN) has issued a stern warning to the government, threatening a showdown if austerity measures, presented as budget cuts, continue to be imposed on the provincial Department of Basic Education (DBE). Sadtu warned that anyone who believed the department should implement these austerity measures should be prepared for a confrontation with the union. During a public address on Tuesday, Sadtu highlighted several concerns regarding the DBE, which it accused of failing to deliver on its core mandate. Union members have been picketing at various district offices for some time, while union leaders have engaged with the DBE to bring attention to the plight of its members in the education sector. The DBE is grappling with severe budget cuts that have slashed billions from its annual budget. Recently, the KZN education department, along with the eight other provincial departments, met with the national DBE to discuss the impact of these budget cuts.   “Schools have been struggling, with principals often having to use their own funds to keep schools running, which is unsustainable. Schools need these funds to purchase textbooks and stationery, pay municipal bills, and acquire other essential resources,” the union pointed out.

Read the full original of the report in the above regard by Thami Magubane at The Mercury. Read too, Sadtu warns, education sector is ‘worse’ than ever, at Daily News


GEPF INVESTMENTS

GEPF portfolio grows to record R2.38 trillion in 2023/24 despite volatile economic conditions

Business Report writes that the the Government Employees Pension Fund (GEPF), Africa’s largest pension fund with more than 1.267 million active members, on Tuesday reported solid financial results for the 2023/24 financial year, maintaining a robust performance. Despite volatile economic conditions, the GEPF's portfolio grew by 2.6%, reaching a record market value of R2.38 trillion, up R61 billion from the previous year. This growth was underpinned by an annual investment return of 4.9%, improving on last year's 3.5% return. The GEPF’s net investment income totalled R116.22bn.   Member contributions saw a 10.8% increase to R91.94bn. Dondo Mogajane, chairperson of the GEPF Board of Trustees who recently resigned, commented: “We recognise that in uncertain times, a reliable income is crucial, especially for our pensioners and beneficiaries. We hope that the 6% pension increase and the 33% increase in funeral benefits we implemented in April 2024 will help alleviate some of the financial burdens faced by many.“ The GEPF outlined continued efforts to enhance oversight and operational efficiency. These include implementing recommendations from the Mpati Commission, advancing its investment strategy through the Public Investment Corporation, and supporting the Government Pensions Administration Agency (GPAA) to strengthen data security after breaches in February and March 2024 when its systems were hacked

Read the full original of the report in the above regard by Philippa Larkin at Business Report


CORRUPTION / FRAUD

Gqeberha law firm accountant with ‘gambling habit’ jailed for an effective 15 years for stealing R18m from trust accounts

IOL News reports that a former law firm trust accountant found guilty of embezzling nearly R18 million from client accounts has been jailed to an effective 15 years in prison. Liezel Badenhorst was convicted in September 2024 in the Gqeberha Specialised Commercial Crimes Court on charges of theft and was sentenced this week. Badenhorst was employed by DuToit Attorneys in Gqeberha from 2008 until her resignation and had been responsible for managing client trust accounts. Between February 2018 and March 2023, Badenhorst used an internal banking system to transfer funds from the trust account into her personal bank accounts. Upon the discovery of the fraud, Badenhorst voluntarily resigned on 17 March 2024 and later admitted to the charges, citing a severe gambling addiction as the driving force behind her actions. In welcoming the sentencing, the National Prosecuting Authority said the sentence reflected the seriousness with which the justice system addressed financial crimes, especially when they involved breaches of fiduciary duty and the exploitation of client trust funds.

Read the full original of the report in the above regard by Jolene Marriah-Maharaj at IOL News

Eleven suspects arrested in connection with the issuing of fraudulent roadworthy certificates

The Citizen reports that the clampdown on fraud at vehicle testing stations continues as 11 suspects, including officials and car owners, were recently apprehended for the issuing of fraudulent roadworthy certificates and for using other persons’ IDs to apply. Between 4 and 9 November, the 11 suspects were traced and arrested during operation “Sisfikile” by the Polokwane-based Hawks Serious Commercial Crime Investigation (SCCI) unit and Road Traffic Management Corporation’s (RTMC) national traffic anti-corruption unit at various places in Limpopo, KwaZulu-Natal, and Gauteng for alleged fraud.   The suspects, aged between 27 and 57, are vehicle owners who received roadworthy certificates and the officials who authorised and issued such certificates. The 11 suspects were warned to appear in the Specialised Commercial Crimes Court sitting in Polokwane on 12 December 2024 to face charges of fraud. The Hawks and RTMC added that the operation was still continuing to trace other suspects and more arrests were imminent.

Read the full original of the report in the above regard by Chulumanco Mahamba at The Citizen


COMMUTING / PUBLIC TRANSPORT

City of Tshwane working to replace 33 bus operators dismissed for participation in unprotected strike

SABC News reports that the City of Tshwane is working to replace the 33 bus operators dismissed for taking part in an unprotected strike in May this year. The decision to fire them was taken after they appeared before a disciplinary hearing last month. The city’s spokesperson Lindela Mashigo made a plea to commuters to be patient, as the dismissals of the bus operators has led to a shortage in daily shifts. “Yesterday, 11 November 2024, 128 drivers reported for duty to honour their shifts, meaning there were 32 less buses to service the routes. It is, however, inspiring to note that through TBS management’s intervention, the number has been reduced to 14. This after 18 drivers were sourced from a team of quality controllers, who are qualified bus drivers, and administrators who were bus drivers before being promoted to do administration work. As of this morning, Tuesday, 12 November 2024, 146 shifts were in operation as compared to yesterday’s 128,” Mashigo indicated.

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

Other internet posting(s) in this news category

  • City of Cape Town sets conditions for rail takeover, at Cape Times

 

OTHER REPORTS OF INTEREST

  • More than 100 legal practitioners struck off the roll, at Moneyweb
  • Court orders Nulaid owner Quantum to reinstate director it removed in boardroom war, at News24 (subscription or trial registration required)
  • Lenasia teacher accused of sexual harassment suspended, at SowetanLive
  • Public Protector still evaluating 'sexting' complaint against George deputy mayor cleared by DA, at News24 (subscription or trial registration required)

 


Get other news reports at the SA Labour News home page