In our Friday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
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Postponed budget provided for early retirement plan for 30,000 civil servants aged over 55 Fin24 reports that the 2025 Budget, which was not tabled in Parliament this week, had allocated R11 billion over the next two years for the early retirement of civil servants. The early retirement offer is part of government’s efforts to reduce its ballooning wage bill, with Finance Minister Enoch Godongwana adding in his planned but undelivered budget speech that the intention was also to "attract younger employees into the public service". Godongwana’s intended speech indicated: "Preliminary savings are expected to average R7.8 billion per year over the medium to long term. The savings will be retained by departments." The defunct Budget Review document provided more detail, including that up to 30,000 civil servants were expected to opt for early retirement, and that employees would not face any penalties. "The plan is to manage headcounts by incentivising employees over 55 years old to retire and moderate compensation spending as younger employees join the public service at entry level salary grades," the review explained. The tabling of the budget was postponed to 12 March following disagreement in the Cabinet over a proposal to hike VAT by two percentage points. Read the full original of the report in the above regard by Ahmed Areff at Fin24 (subscription or trial registration required)
City Power resumes operations in Alexandra on Thursday after community meeting SABC News reports that City Power announced on Wednesday that it would be resuming its operations in Alexandra, Johannesburg, on Thursday morning, following a constructive meeting with community leaders. The power utility’s technicians’ work on the outages in the area was temporarily suspended after community members attacked two City Power employees on Tuesday evening. “We strongly condemn these actions because when people do not have electricity, attacking other people that are supposed to provide that service or damaging municipal or government infrastructure is something that only serves to exacerbate the situation and you will need the very same services in the future,” lamented City Power spokesperson Isaac Mangena. Read the original of the short report in the above regard at SABC News Two suspects charged with murder of renowned Springs cop Captain Wynand du Toit The Citizen reports that one of the two men facing charges of murder and robbery with aggravating circumstances is under police guard in a hospital with a gunshot wound he sustained in a shootout with slain police officer Captain Wynand du Toit. The 31-year-old Ntuthuzelo Mana appeared in absentia at the Springs Magistrate’s Court where he was charged alongside 37-year-old Sipho Benjamin Ntuli for the murder of Du Toit last Sunday. Mana has been out on bail for another crime. Ntuli and Mana are due back in court on 27 February, while the search for the other two alleged robbers continues. The 51-year-old renowned crime fighter Du Toit, who was attached to the Springs police station, was shot and killed during a robbery at a supermarket in Geduld, Springs, while he was off duty. The supermarket owner and his two brothers were ambushed at 7.15am by four men who entered the shop and ordered them to lie down on the floor. Du Toit was approached by a woman who told him that she suspected a robbery was taking place at the Smart Corner Supermarket on 4th Avenue. The police captain made his way to the supermarket and took cover behind a parked vehicle at the entrance while ordering the suspects to drop their weapons. The suspects opened fire, prompting the captain to return fire. In the shootout, he managed to shoot two of the assailants before collapsing himself on the road. Du Toit was rushed to hospital, where he later succumbed to his injuries. Read the full original of the report in the above regard by Cornelia Le Roux at The Citizen
Volvo SA confirms dealership network is 'under review' Fin24 reports that Swedish automaker Volvo Cars SA (VCSA) has announced plans to conduct a "review" of its local dealership network, raising concerns about the possibility of permanent dealership closures and potential job losses. In a statement this week, a spokesperson for VCSA said while the plan had not been finalised, it "has been actively consulting with its independent licensed dealers. Any dealers affected by the review will independently evaluate their operational position and commercial strategy. VCSA remains committed to a transparent and fair process in all its discussions with independent dealers." However, no details were given about any potential job losses and how many dealerships wwouldill be impacted by the review. Meanwhile, the news of a possible restructuring has come as a shock to the motoring industry. Trade union, the Motoring Industry Staff Association (MISA), which represents 66% of VCSA's employees, claims that no Section 189 or retrenchment process has been initiated. MISA spokesperson Sonja Carstens said that union members and dealerships were "surprised" and "taken aback" to hear via media reports that the company was restructuring. She said that employees were currently panicking about whether or not they would lose their jobs. Read the full original of the report in the above regard by Na'ilah Ebrahim at Fin24 (subscription or trial registration required). Read too, Volvo Car SA conducting ‘strategic review’ of its dealer network, at Engineering News UDM concerned about potential job losses in auto industry he Citizen reports that the United Democratic Movement (UDM) is concerned about the potential of job losses in the SA motor industry and that there has been little to no response from the government. UDM acting secretary-general Zandile Phiri said the recent announcements by Continental’s ContiTech Africa plant in Kariega in the Eastern Cape and Volvo Cars SA have painted a “worrying picture” of economic instability and declining job security in the motor industry. “At least 125 jobs are at risk as Continental plans to shut down operations at its Kariega plant. This closure will have devastating consequences for the affected workers and their families, adding to our country’s already high unemployment rate,” Phiri said. Early this month, the National Union of Metalworkers of SA (Numsa) expressed dismay at Volvo’s restructuring plan. This after the company announced that the restructuring might result in the closure of some of its dealerships. The union said Volvo’s approach had caused widespread panic to workers at dealerships. “The government must intervene to engage with affected companies, workers’ unions and stakeholders to find solutions that protect jobs. South Africa cannot afford to lose more jobs while the government watches from the sidelines,” said Phiri. The party called for transparency from both Continental and Volvo, urging them to communicate openly with their employees and explore alternatives before proceeding with job cuts. Read the full original of the report in the above regard by Eric Mthobeli Naki at The Citizen
Employment tax incentive scheme meant to fuel job creation becoming obsolete Financial Mail reports that the employment tax incentive (ETI) scheme was once a powerful tool meant to boost jobs, but it’s quietly slipping into irrelevance owing to stagnant wage thresholds. ETI was introduced in 2013 as a policy mechanism to encourage the employment of young and low-income individuals by providing tax relief to those who employ them. However, an investigation of the ETI monthly remuneration bands shows they have been stagnant since inception, rendering them useless. The national minimum wage and inflationary pressures have risen, but no proportional adjustments to the ETI bands have been made. The stagnation undermines the purpose of the incentive. Workers whose employers once qualified for ETI are now disqualified due to natural wage progression. The lower bands of the ETI have become virtually obsolete. If this issue remains unaddressed, the ETI will cease to serve its intended purpose. A key principle in taxation is the regular adjustment of tax brackets to counteract bracket creep, which occurs when inflation increases wages, pushing workers into higher tax brackets without an actual increase in purchasing power. This principle is applied to income tax, but has been entirely ignored in ETI’s remuneration bands. At this rate, if no adjustments are made, nearly all employees will soon earn above the ETI threshold, rendering the incentive useless. The solution is clear: adjust the bands and restore ETI’s ability to drive real economic change. Read the full original of the report in the above regard by Princess Nare & Sandile Shwala at BusinessLive Gauteng DA condemns Nasi Ispani programme as a failed election ploy EWN reports that the Democratic Alliance (DA) in Gauteng has branded the provincial government’s Nasi Ispani programme a failed election ploy. The programme, championed by Gauteng Premier Panyaza Lesufi, gave thousands of previously unemployed youths temporary jobs within the provincial government. These jobs included the crime prevention wardens (informally known as Amapanyaza), teaching assistants and artisans among others. Last year, shortly after the elections, the Gauteng government laid off 32,000 teaching assistants because it had not received funding from the national government to expand the programme. Speaking at a media briefing on Thursday, DA Gauteng leader Solly Msimanga said more cuts were expected because the programmes were not properly budgeted. “We are still having a situation of teachers who are not able to cope with the number of learners in their classes. We have in certain instances classes with 98 learners in certain schools and we need those teaching assistants to be assisting and yet we not getting that. Panyaza had the audacity to stand and say these are the people he has employed and employed permanently in certain cases - had their contracts cancelled with nothing said to them and now they find themselves again joining millions of unemployed people in SA and Gauteng with no hopes of getting a job,” Msimanga stated. Read the original of the short report in the above regard by Thabiso Goba at EWN Other internet posting(s) in this news category
More than 5,700 foreigners, majority of whom are Zimbabweans, work in SA's public service News24 reports that SA’s public service employs more than 5,700 foreign nationals, the majority of whom are from Zimbabwe. This is according to the Department of Public Service and Administration (DPSA), which briefed MPs on Wednesday on the professionalisation of the public service and the employment of foreign nationals. DPSA deputy director-general Nyiko Mabunda said there were currently 5,777 foreign workers employed in the public service, with more than 2,100 officials from Zimbabwe, and 755 from the Democratic Republic of the Congo. There were also 383 officials from India, 367 from Nigeria, 271 from Lesotho, and 265 from Cuba. Mabunda said the appointment of foreign nationals to the public service was a highly regulated process. The hiring process involves multiple departments to ensure national security, legal compliance, fiscal responsibility, and workforce protection. The Department of Employment and Labour ensured that foreign hires did not displace SA workers. "Labour market testing is compulsory before approval of foreign employment, ensuring merit-based and justified appointments. The National Treasury regulates salary structures and public expenditure on foreign employment, ensuring alignment with budgetary policies and preventing fiscal mismanagement,” Mabunda advised. The departments that employ the highest number of foreign nationals include the departments of health, basic education, higher education and training, justice and constitutional development, and water and sanitation. Read the full original of the report in the above regard by Jason Felix at News24 (subscription or trial registration required) Almost 90% of foreign government employees are employed in health and education sectors The Citizen reports that the Department of Public Service and Administration (DPSA) has addressed concerns regarding the number of foreign nationals currently employed in government departments. Officials gave a presentation to MPs on Wednesday outlining which departments had the most foreign national employees and the policy considerations involved. The numbers have decreased since 2024, but two sectors stand out as they have experienced protests by unemployed graduates in the relevant fields. The DPSA said the employment of foreign nationals was meant to address a skills shortage in critical areas. It said 5,779 foreign nationals were currently employed by the government, down from the 6,220 indicated in September 2024. Of the 5,779 foreign government employees, 89.4% were employed in the health and education fields. Foreign health care professionals constituted 2,511 employees, while training, basic and higher education departments made up a combined 2,660. Unemployed doctors in Mpumalanga, KwaZulu-Natal, Gauteng and Eastern Cape have all protested in recent weeks at the lack of employment opportunities. Likewise, unemployed teachers held several protests in 2024, demanding that vacancies be filled. The DPSA suggested a re-evaluation of policy aimed at “maximising local talent utilisation” through educational reforms and targeted sector support. Read the full original of the report in the above regard by Jarryd Westerdale at The Citizen Other internet posting(s) in this news category
Two-pot pension withdrawals: Retrenched workers could be allowed to dip into retirement portion Moneyweb reports that members of retirement funds who lose their jobs may in the future be allowed to access funds from their retirement portion under the two-pot system. This was proposed in National Treasury’s draft Budget Review 2025, which was made available to the media and economists on Wednesday morning before the budget speech was cancelled. Treasury noted that during the public comment process in respect of the two-pot retirement reform, several issues were identified to be addressed later. “This included the matter of withdrawals from the retirement portion if one is retrenched and has no alternative source of income.” Under the two-pot system, which came into effect on 1 September last year, employees’ pension fund contributions are divided into a one-third savings pot and a two-thirds retirement pot. The two-thirds portion must be preserved until retirement and then annuitised. Government received requests to allow access to the retirement component when an individual was retrenched. Treasury noted: “The restructuring required for this proposed reform is complex and therefore forms part of the second phase of the two-pot reforms. Government is beginning work and discussions on measures that may allow access to the retirement component if an individual has been retrenched and is in financial distress.” Treasury emphasised, though, that “strict conditions” would apply to this access. Once the research on this matter has been concluded, labour and other industry stakeholders will be engaged. Read the full original of the report in the above regard by Liesl Peyper at Moneyweb
Former Prasa head of security fails to get job back after seven-year legal battle The Citizen reports that former Passenger Rail Agency of SA (Prasa) head of corporate security, Mkhuseli Michael Mtakata, has spent nearly seven years unsuccessfully challenging his dismissal. He took his case through multiple legal avenues, including the Commission for Conciliation, Mediation and Arbitration (CCMA), Labour Court and Constitutional Court (ConCourt). Mtakata took up the position in June 2013 but found himself in trouble in October 2016 for issuing a defamatory media statement and disclosing internal Prasa matters. After a disciplinary hearing. Mtakata was dismissed in April 2017. The former Prasa employee immediately challenged the outcome at CCMA, citing unfair dismissal. The CCMA proceeded with arbitration, ultimately ruling in Prasa’s favour in August 2017. Mtakaka then took the matter to the Labour Court in September 2017, seeking a review of the CCMA’s decision. However, due to procedural failures — including not filing a transcribed record of the arbitration — his review application was deemed withdrawn in February 2019. His legal efforts continued from 2020 onwards with multiple applications (the ins and outs of which are detailed in The Citizen report). His most recent attempt came in June 2023 when he initiated a new case in the Western Cape High Court. Mtakata asked the court, inter alia, to declare his disciplinary hearing “unlawful and invalid,” arguing that the panel overseeing the proceedings had been “improperly and unlawfully appointed”. In his ruling, Acting Judge Sheldon Magardie noted that Mtakata failed to provide any factual basis for his “generalised and speculative allegations” regarding the alleged unlawful appointment of the disciplinary panel. Mtakata’s application was dismissed with costs. Read the full original of the report in the above regard by Molefe Seeletsa at The Citizen Other internet posting(s) in this news category
Metrorail train services in Gauteng affected by rain TimesLIVE reports that Gauteng Metrorail train services are facing intermittent disruptions due to the recent torrential rains, with some railway infrastructure, including tunnels and platforms, having flooded. The Passenger Rail Agency of SA (Prasa) said flooding had affected train stations including Silverton and Belle Ombre and rail corridors. Prasa spokesperson Lillian Mofokeng said response and mitigation measures technical teams have been immediately deployed to assess damage, pump out excess water and perform emergency repairs where necessary. Tracks have been flooded at the Leralla station resulting in trains turning to Limindlela station in Thembisa. Platforms flooded, affecting the movement of trains, include between Industria and Westbury (Johannesburg — Randfontein); Kliptown and Tshiawelo (Midway — Johannesburg); Merafe — Dube (Naledi — Johannesburg); Grosvenor — Mayfair (Naledi/Midway/Randfontein — Johannesburg) and Johannesburg — George Goch (Germiston — Johannesburg). The waterlogged Perway infrastructure has rendered certain network sections temporarily impassable, forcing a speed restriction of up to 15km/h for safety reasons. The emergence of a sinkhole at Braamfontein Yard, a collapsed embankment between Pinedene and Irene, level crossing flooding at Pienaarspoort station and flooding at Wolmerton depot are further complicating train movement and operations and affecting maintenance activities. Read the full original of the report in the above regard by Shonisani Tshikalange at SowetanLive. Read too, Flooding forces temporary closure of three South African ports of entry, at News24 (subscription or trial registration required) Rea Vaya feeder bus services suspended over safety concerns EWN reports that Rea Vaya passengers will once again have to contend with service disruptions, this time due to safety concerns raised by the rapid bus transit (BRT) company. On Thursday, the Joburg Metro issued a suspension notice alerting commuters that feeder buses would be suspended indefinitely. The metro attributed the move to safety and security concerns, which are currently the subject of investigations. Earlier this month, two of Rea Vaya’s bus drivers were murdered, which caused the bus service to shut down 58 of its stations leaving thousands of commuters stranded. In recent years the BRT system has seen more than its fair share of troubles including, wage-related strike action, financial challenges and service interruptions. Following the shooting incidents this month, metro police have been providing escort services from the stations to the final destination points of busses. Read the original of the short report in the above regard by Thandoluhle Ngcobo at EWN
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