This 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.
In our roundup of weekend and recent reports,
see the following summaries of our selection of
South African labour-related articles.
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Amsa pulls plug on long-steel operations Business Times reports that potential investors are circling the long-steel business of ArcelorMittal SA (Amsa) as the company prepares to shut down those plants after attempts to save the operations failed to yield results. A group of black businesses interested in acquiring the operations is apparently in the process of putting together a package deal. The Industrial Development Corporation (IDC) could be roped in as a finance and equity partner in any such deal. However, those in the know said the move was still in its infancy. Amsa, SA’s biggest steel producer, said in January it would be winding down its long-steel plants in Newcastle and Vereeniging, which would lead to 3,500 job losses and put a further 25,000 jobs in the steel value chain at risk. The company delayed the shutdown for a month for further talks with the government and some stakeholders, to consider options to keep the business going and resuscitate a sector that has been ailing for decades. The company said in a statement on Friday that despite its “best efforts”, the parties had not been able to find solutions to avoid the winding down of the long-steel business. CEO Kobus Verster said the company was “deeply disappointed that all our efforts over the last year have not translated into a sustainable solution, resulting in a significant negative impact on the economy, the loss of approximately 3,500 direct and indirect jobs and a detrimental impact on the local community in Newcastle”. The shutdown of Amsa’s blast furnace is expected in the first week of March, with the last long steel to be produced by late March and early April. Amsa said the final wind down into care and maintenance should be fully implemented in the second quarter of 2025. Read the full original of the report in the above regard by Dineo Faku at BusinessLive (subscriber access only)
Cosatu says government can take pension fund contribution holiday to avoid VAT hike IOL News reports that the Congress of SA Trade Unions (Cosatu) has weighed in on the contentious issue of a proposed value-added tax (VAT) hike by suggesting that Treasury should start discussions with the Government Employees Pension Fund (GEPF) over a pension fund contribution holiday. The government is scrambling to find a solution a R60 billion shortfall in the national budget. Finance Minister Enoch Gondongwana is expected to present a revised budget to Cabinet on Monday after last month's budget was postponed because Government of National Unity (GNU) partners could not reach consensus on Godongwana's decision to increase VAT by 2%. Apparently, President Cyril Ramaphosa will propose a VAT increase of between 0.5% and 1% but the DA led by John Steenhuisen is adamant that VAT should remain at 15% and no hike should be allowed. The new date for the budget is 12 March. Cosatu’s Matthew Parks Parks said the federation was against any tax increase for the poor. It has given government a variety of options to consider instead. One option could be a government employee pension fund contribution holiday. According to Parks, the GEPF is 110% overfunded and there is space for government to have a one-year contribution holiday, amounting to R53bn. He pointed out that the GEPF was a defined benefit scheme and whether it made profits or losses, the benefit paid out to retiring workers would remain the same. Read the full original of the report in the above regard by Mashudu Sadike at IOL News ANC set to lock horns with DA after backing Treasury’s new proposal for a 0.75 percentage point hike in VAT Sunday Times reports that the ANC has thrown down the gauntlet to its GNU partner the Democratic Alliance (DA) over the stalled national budget, warning that it would approach the EFF for the required votes if the DA refused to accept a smaller VAT increase. The warning follows a series of meetings between the ANC and the DA, at which the latter restated its opposition to the two percentage point VAT increase sought by Finance Minister Enoch Godongwana. Although the EFF, like the DA, has opposed Godongwana’s VAT hike, the party has indicated previously that it would join the government of national unity (GNU) if the DA departed, a scenario that could unfold if the impasse is not resolved before the new 12 March budget date. Instead of the two percentage points Godongwana originally proposed, the Treasury is now suggesting 0.75 percentage points. And the party’s negotiators produced a paper by a University of Cape Town academic stating the poor could be spared the worst effects of a VAT increase because of the zero-rating of food and other items they routinely buy. In contrast, the paper argues, the VAT increase would hit the middle class hardest, but says they could afford the increase. The DA wants Godongwana to introduce substantial cuts in spending, and reorient spending towards job-creation programmes. The Treasury, meanwhile, has produced a long list of possible cuts to spending programmes that would have to be introduced in the absence of a VAT increase. The two parties are expected to lock horns at today’s cabinet meeting as it emerged that the ANC plans to back the Treasury’s proposal to increase the VAT rate by 0.75 percentage points. Read the full original of the report in the above regard by Kgothatso Madisa, Thabo Mokone & Lizeka Tandwa at Sunday Times (subscriber access only). Read too, Ramaphosa puts VAT compromise on the budget table, at City Press (subscription or trial registration required). En ook, ANC dreig DA glo met EFF oor begroting-kompromie, by Maroela Media
Numsa at war with Road Traffic Infringement Agency over order to return to work at ‘unsafe’ headquarters TimesLIVE Premium writes that a war is brewing over the Road Traffic Infringement Agency’s (RTIA’s) headquarters in Midrand, which has been standing empty for a month. Management has ordered staff to return to the office on Monday, but the National Union of Metalworkers of SA (Numsa) has demanded the instruction be retracted as it believes the building is unsafe. The building – located in the New Road Office Park – is leased by the RTIA, which spent millions on the move in July last year. Spokesperson Emmanuel Tshehla confirmed the agency had leased the building for five years at a cost of R52m. But six months into the lease, staff were instructed to work from home from 1 February. Tshehla said inspectors from the City of Joburg and the Department of Employment and Labour had issued the RTIA with contravention notices after finding that partitioning – erected by the agency in the open plan space – had been done without proper permission and authorisation. Coincidentally in the early hours of 31 January, there was a break-in at the offices and a security guard was stabbed. Tshehla said RTIA management decided to close the building for the purposes of the investigation and for the repair of damage caused during the robbery. Steps were apparently taken to improve security. Now Numsa members have called on the agency’s CEO, Matsemela Moloi, to withdraw the return-to-work instruction. Numsa’s Enock Manyoni said workers would not be returning to the office “until you have shared with us the findings of the inspection, certificate of occupancy issued by the [city] and all other related certificates of compliance regarding the safety of the building”. “Forcing employees to work in an office space which has been declared unsafe for use or closed by a regulatory body is a criminal offence and in violation of the OHS Act,” Manyoni indicated. Read the full original of the report in the above regard by Gill Gifford at TimesLIVE Premium (subscriber access only) Government debriefing to investigate incidents that led to soldiers’ deaths in the DRC SABC News reports that the Deputy Minister of Defence, Bantu Holomisa, says the department will hold a debriefing where they will look at the incidents that led to the deaths of the 14 soldiers in the Eastern Democratic Republic of Congo (DRC). Holomisa was attending the funeral service of slain SA National Defence Force (SANDF) member Staff Sergeant, William Cola, in Louterwater in the Eastern Cape. “We will be doing a debrief after the incident of the DRC and in doing the debrief we will look at whether there were mistakes on our side and whether those mistakes can be verified and if those mistakes need national treasury, obviously we will follow procedure,” Holomisa advised. Meanwhile, Eastern Cape Premier, Oscar Mabuyane, said they would work with municipalities to honour slain Staff Sergeant William Cola. “Because he is our son, he is our hero, we will definitely work with municipalities, the province to find something, especially, to use him as a role model and posthumously for the young kids that are growing up. I would love to see the SANDF come here and put more young people in the career,” said Mabuyane. Read the original of the short report in the above regard at SABC News Other internet posting(s) in this news category
World Bank urges SA to ease back on BEE and onerous labour laws BL Premium reports that the World Bank has urged SA to consider easing BEE and labour policies to make it less demanding for foreign companies to invest in the country. In an overview on “driving inclusive growth” in SA, the global lender said the country should adjust its regulations to market realities. “The burden of several industry and labour policies can be reduced by adjusting them to the reality of the market. For example, by generalising the use of equity equivalence investment programmes by the department of trade & industry, instead of the hard, complex conditions associated with BEE policies,” the bank indicated. Finance Minister Enoch Godongwana has admitted to warming up to the idea of easing regulations to make it easier for foreign businesses to invest in the country. He said regulatory hurdles needed to be looked into and noted that, according to a technical team appointed by the National Treasury, the government had 100 active labour market instruments across 20 departments. Elon Musk, who heads the US administration’s department of government efficiency (Doge), has objected to the 30% historically disadvantaged ownership requirement that his company, SpaceX, would be obliged to comply with to be allowed to operate its Starlink satellite system in SA. Godongwana, speaking at the release of the World Bank overview, joked that setting up a Doge in SA might not be a bad idea, given the onerous regulations that financial institutions and other businesses have to comply with locally. “A big bank such as Absa or Standard Bank employs about 3,000 people, whose main function is ... to deal with compliance. You may say there is some good in Elon Musk and [President Donald] Trump’s madness, sometimes,” Godongwana opined. Read the full original of the report in the above regard by Khulekani Magubane at BusinessLive (subscriber access only). Lees ook, SA moet ras- en arbeidsbeleide verlig, sê Wêreldbank-verslag, by Maroela Media
Funding crisis threatens workers-owned Arnot Opco coal mine in Mpumalanga Sunday Independent writes that a bold experiment in worker ownership in SA’s coal mining industry is teetering on the brink of collapse as the Arnot Opco Coal Mine in Mpumalanga struggles to secure funding and resume full operations. The mine, acquired by a group of retrenched workers after its former owner Exxaro ceased operations in 2015, become a symbol of hope and resilience for more than 1,000 former employees. But that hope is now fading as financial troubles, legal battles, and the global shift away from coal threaten to derail the project. The mine’s plight was laid bare during an oversight visit by the Portfolio Committee on Mineral and Petroleum Resources to the Steve Tshwete Local Municipality last week. The committee heard that Arnot Opco, once a beacon of worker empowerment, was now under business rescue and embroiled in a court battle with its former shareholder, Wescoal. Arnot Opco management indicated during the visit: “Wescoal committed to providing R150 million, but they failed to make this funding available. This, combined with the impact of the Covid-19 pandemic, has left us unable to operate the mine fully.” The dream of worker ownership has been marred by setbacks. Presently, no mining takes place at Arnot Opco. Instead, the company buys coal from third parties, washes it, and sells it to clients – a far cry from the vision of a thriving, worker-run operation. The mine’s struggles are emblematic of broader challenges facing SA’s coal industry. Lenders are increasingly reluctant to fund distressed companies, particularly those in the coal sector, as global investors pivot towards clean energy. Read the full original of the report in the above regard by Sizwe Dlamini at Sunday Independent Other labour / community posting(s) relating to mining
Gauteng government conducting lifestyle audits for all supply chain officials SABC News reports that the Gauteng government is conducting lifestyle audits for all its officials in supply chain management and finance functions, led by the Special Investigating Unit. This initiative is said to align with Premier Panyaza Lesufi’s efforts to enhance accountability and fight corruption within the provincial government. Gauteng government spokesperson Vuyo Mhaga indicated: “The lifestyle audits process is being implemented in a phased-in approach. The first phase involved the executive and the premier. The second phase (involves) CEOs and (staff) of entities and departments.” Read the full original of the report in the above regard by Tshepo Phagane at SABC News
Samwu to contest firing of some 300 Gautrain bus drivers BL Premium reports that the SA Municipal Workers’ Union (Samwu) is on Monday expected to challenge a decision by Gautrain to fire about 300 bus drivers. According to the union, the Gautrain bus service dismissed the workers for refusing to drive buses that are unroadworthy and without permits. “Workers have been illegally locked out of employer premises in Midrand, hence the delay in Gautrain buses,” the union advised. Gautrain spokesperson Kesagee Nayager said: “All Gautrain buses are fully registered with valid licences as well as certificates of roadworthy. Not all buses have valid operating licences and we are in discussion with the department of roads & transport to expedite the issuance of these operating licences.” Nayager went on to say that workers who had embarked on an “illegal work stoppage have been issued with notices of dismissal and management is in discussion with Samwu in this regard. The work stoppage and dismissal of workers has impacted the bus service. We have been operating a limited bus service at all stations aside from Rosebank, Sandton and Rhodesfield.” Samwu’s Ester Mtatyana indicated: “Plus or minus 300 workers have been fired. Our members are not on strike, they are just refusing to drive buses that are unroadworthy and lack operating permits. Some of these buses have been sitting without permits for 12 months. Our members are saying they can no longer drive the buses because they get traffic fines of R2,500, which they have to pay out of their own pockets.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only) Eastern Cape teacher fails to set aside dismissal for charges he had admitted guilt to TimesLIVE Premium reports that the dismissal of an Eastern Cape teacher who was found guilty of having fabricated marks for more than 50% of grade 12 pupils, which led to the delay in the issuing of the school's matric results, was substantively and procedurally fair. The Education Labour Relations Council made this award recently when it dismissed an application referred for arbitration by Malusi Goodman Nyengane, who had been employed at Pakamani Senior Secondary School in Butterworth. Nyengane was dismissed on 12 July 2024 for events that occurred during October 2022. The education department discovered that Nyengane and two other teachers had fabricated marks for more than 50% of grade 12 pupils and irrationally and randomly inflated marks for the controlled test and the department of basic education task known as the common task assessment. His conduct resulted in grade 12 Life Orientation pupils getting their results late and seven others having to rewrite a controlled test. Nyengane pleaded guilty to all four charges, was found guilty and a sanction of dismissal was imposed. He had been employed by the department for more than 20 years with a clean disciplinary record. Nyengane’s appeal case was that he had pleaded guilty to the charges as a show of remorse to the offence. One of his grounds was over the delay in charging him and completing his disciplinary processes. The department said it regarded Nyengane’s conduct as having been serious enough to warrant dismissal. The appeal was dismissed. Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE Premium (subscriber access only)
Top Home Affairs official suspended for 'soliciting' bribes City Press reports that a senior official in the Department of Home Affairs (DHA), who allegedly demanded kickbacks from service providers to approve their invoices, has been suspended. On Friday, DHA Minister Leon Schreiber confirmed in an X post that Percy Tshabane, the department's acting chief of director of employee engagement, had been suspended pending a thorough investigation into allegations that he solicited bribes to approve the payment of service providers. City Press reported on 9 February that a lawyer, who identified himself as Mareng Mareng, had alleged that lawyers were being frustrated by the department's chief director responsible for legal. The lawyer also sent a whistleblower complaint to Schreiber's office, parliament and the Public Service Commission. Shortly after the publication of the story, Schreiber appointed law firm Werkmans to investigate the allegations. A source reported: “The lawyers found evidence in the form of a bank deposit and questioned Tshabane, who admitted that he did receive the money from the complaining lawyer. However, he said the lawyer was his brother and there was nothing untoward with him asking for financial help. On Monday, the law firm recommended that he be suspended, and he was on Tuesday.” According to the lawyer, Tshabane used various means to collect money from service providers, including deposits into his bank account and cash drop-offs at his office. Tshabane denies having requested money from a service provider. Read the full original of the report in the above regard by Abram Mashego at City Press (subscription or trial registration required) Prasa accused of paying billions in dodgy tenders, with a R2bn contract awarded to a one-day-old company City Press reports that the Passenger Rail Agency of SA (Prasa) allegedly spent more than R2 billion on a joint venture company that was registered just a day before a multibillion-rand tender was awarded to it. The tender was awarded to Crig Maziya Joint Venture on 21 July 2023. Crig Maziya is a joint venture between China Railway, China Wuhan Electrification Engineering and Maziya General Services. The tender was for the planning, design, supply, construction, installation, testing, commissioning and maintenance of a new and expanded, fully integrated and future-proofed system for a mobile communication-railway redundancy network in Prasa's Gauteng, KwaZulu-Natal and the Western Cape regions. The payment is now at the centre of a Hawks investigation after Police Minister Senzo Mchunu was alerted to the alleged fraud in a whistleblower complaint. Mchunu forwarded the complaint to the Hawks and the matter will be investigated by the Serious Economic Offences Unit. The whistleblower complaint alleges that, for several years, Prasa was a toxic state-owned enterprise that instigated corruption, violated supply chain management policies and laundered money through the manipulation of tender procurement processes. The letter reads: “In all these unspeakable deeds, these two [names withheld] have been identified as the kingpins of corruption at Prasa, capable of manipulating supply chain management policies and payment processes through various committees and legal opinions without the knowledge and approval of Prasa's board of directors.” Read the full original of the report in the above regard by Abram Mashego at News24 (subscription or trial registration required)
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