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 Thursday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
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Treasury compromises on VAT increase, with grant recipients and taxpayers to bear the brunt of smaller hike BL Premium reports that the Treasury has compromised on its proposed two percentage point VAT increase by opting for a half a percentage point hike in each of the next two years. This year’s proposed VAT increase will take effect on 1 May and next year’s on 1 April. To compensate for the reduced revenue, the additional spending on social grants envisaged in the rejected February budget has been significantly reduced. Specified social grants will be increased by more than the expected inflation rate but less than was envisaged in February. Also, there will be no tax relief for income earners, whereas the draft February budget had envisaged some tax relief to lower brackets of the income tax table. According to the Budget Review, there will be no inflationary adjustment to tax brackets (so-called fiscal drag, which happens when inflation-related wage increases push taxpayers into a higher tax bracket) and rebates in 2025/26. While there will be no increase in the general fuel levy at a cost of about R13bn over three years, above-inflation increases have been proposed on excise duties on alcohol (6.75%) and cigarettes (4.75%). As envisaged in the rejected February budget, the basket of zero-rated food items will be expanded at a cost of about R2bn in each of the three years of the medium term to mitigate the impact of the VAT increase on the poor. The Treasury resisted calls to increase the corporate income tax, which is now 27%. “Corporate income tax is imposed on businesses but ultimately paid by shareholders, workers and consumers. SA already has a high contribution of corporate income tax towards tax revenue and VAT is relatively low compared to our peers, the Treasury noted. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only). Lees ook, BTW wel verhoog, maar nie so drasties, by Maroela Media 'VAT increase will just slash the little income people are relying on', Cosatu president laments News24 reports that as Finance Minister Enoch Godongwana delivered his highly contested national budget on Wednesday, trade union federation Cosatu and its alliance partners vehemently opposed the inclusion of a VAT increase. But, Godongwana announced that VAT would be increased by 0.5 percentage points this year – with a similar-sized hike in 2026, bringing it to 16%. However, the second hike may be reconsidered. On Wednesday, the People Against Budget Cuts (a coalition of civil society organisations), trade unions, social movements and community groups, gathered outside Parliament for the second time to reject a VAT increase and to demand an end to austerity measures negatively impacting citizens. The turnout was smaller than last month, when Godongwana's budget was initially scheduled. Cosatu president Zingiswa Losi said a VAT increase would be detrimental to the poor. "People are languishing in poverty, we have high levels of unemployment in our country that are above 40%, we have high levels of youth unemployment, people cannot afford services. We are saying that a VAT increase will just slash the little income that people are relying on," she pointed out. Lobby groups, including Equal Education, Treatment Action Campaign, Youth Capital, the People's Health Movement and Women on Farms participated in the march. Over 100 000 signatures have been gathered across the country in a demonstration of people's objections to possible budget cuts. Many members of civil movements have called for a budget that would not negatively affect key departments such as health and education. Read the full original of the report in the above regard by Marvin Charles at News24 (subscription or trial registration required) Agreement with unions on public service wage hikes remains a sealed deal TimesLIVE Premium reports that Finance Minister Enoch Godongwana is sticking to the public service wage agreement that will see government employees earning an inflation-beating pay hike of 5.5% in 2025/26 and inflation-linked increases in the following two years. This is despite a reduction in the proposed hike in VAT that that will see the SA Revenue Service collecting less tax revenue than Godongwana had projected in his original budget that was postponed last month. The 0.5 percentage point VAT hike he announced in parliament on Wednesday will only raise government coffers by an additional R28bn in the 2025/2026 financial year. A VAT hike of the same amount will be imposed the following year. However, the budget documents that Godongwana tabled in parliament show that the 5.5% public service wage hike remains a sealed deal, to be implemented over the next three years at a cost of R23bn. The document reads: “Although the agreement exceeds the 2024 budget and MTBPS projections, its three-year duration reduces uncertainty in budget planning. In terms of the 2025 public-service wage agreement, remuneration of government employees will rise by 5.5% in 2025/26, 1 percentage point above projected consumer price index [CPI] inflation. Over the subsequent two years, remuneration of employees will align with CPI.” Read the full original of the report in the above regard by Thabo Mokone at TimesLIVE Premium (subscriber access only). Lees ook, Begroting 2025: Miljarde weer vir salarisverhogings begroot, by Maroela Media Budget's fate hangs in the balance as opposition rejects Godongwana's VAT hike News24 writes that Finance Minister Enoch Godongwana's Budget, which proposes a 0.5 percentage point VAT hike, is now in the hands of Parliament where the ANC no longer has a majority. The ANC’s main government of national unity (GNU) partner, the DA, has rejected the Budget mainly because of the proposed tax increase. Without the DA’s support, the ANC will have to convince other parties in and out of the GNU to vote with it for the Budget to pass through Parliament. Godongwana and his National Treasury team are scheduled to appear before four parliamentary committees of both the National Assembly and the National Council of Provinces on Friday to present the fiscal framework and revenue proposals. Submissions to the two finance committees (jointly) close at midday on Monday and public hearings are scheduled for 25 March. The committees are empowered to amend the Budget in line with the 2009 Money Bills and Related Matters Act. In terms of that law, the committee can change or even reject the Budget. If the committee proposes changes to the Budget as presented by Godongwana, it is unlikely that the ANC will have the numbers to successfully defend it as the party only has 40% representation in Parliament committees. With the exception of the Patriotic Alliance, IFP and UDM, all other parties in Parliament, including those in the GNU, have rejected the budget. DA leader John Steenhuisen said his party had made it clear that it would oppose any increase in taxes, unless those increases were temporary. He indicated that the DA also wanted the ANC to agree to a series of major reforms that would grow the economy, create jobs, reduce waste and bring down taxes within three years. Read the full original of the extensive report in the above regard by Andisiwe Makinana, Amanda Khoza, Jason Felix, Jan Gerber, Bongekile Macupe and Siyamtanda Capa at News24 (subscription or trial registration required) Other internet posting(s) in this news category
'Personnel-intensive' department – like defence and correctional services – being eyed in R11bn early-retirement drive Fin24 reports that as it looks to rein in public sector wage costs, National Treasury has named the Department of Defence and the Department of Correctional Services as government departments that could be targeted with early retirement packages. The retirement package is expected to incentivise public sector employees over 55 to take early retirement and introduce younger employees into the public service. According to budget documents, this will include provisions of R4.4 billion in 2025/2026 and R6.6 billion in 2026/2027. Treasury director-general Duncan Pieterse said on Wednesday that there would be engagements with departments "which are more personnel-intensive than others" to introduce the retirement packages when the funds become available to departments from 1 April onwards. "There are certain departments that are more personnel-intensive than others and that have had problems with their budgets for their compensation of employees' budgets. Two good examples of these are the Department of Correctional Services and the Department of Defence," Pieterse indicated. Up to 30,000 employees are expected to opt for early retirement, according to Treasury. Pieterse indicated, however, that some departments were subject to the Public Service Act and for those departments to access the early retirement packages, “a bargaining process must be concluded, which is under way. But some are not, like defence, which means they can go ahead.” Meanwhile, Finance Minister Enoch Godongwana said during his budget speech that savings would amount to R7.1 billion per year if the retirement packages were implemented. Read the full original of the report in the above regard by Na'ilah Ebrahim at Fin24 (subscription or trial registration required) SSA employees over 50 years not being forced to take early retirement, says Ntshavheni The Citizen reports that Minister in the Presidency, Khumbudzo Ntshavheni, has denied claims that the State Security Agency (SSA) is forcing employees over 50 to retire early or face dismissal. The minister addressed these allegations in response to a parliamentary question by Democratic Alliance (DA) MP Dianne Kohler, who asked the minister about an alleged directive requiring SSA employees over 50 to retire early or be retrenched for operational reasons. She also asked how removing senior staff would help SA exit the Financial Action Task Force (FAFT) grey list and why 50 was chosen as the retirement age. Additionally, Kohler inquired about the SSA’s current staff numbers, how many held a top-secret security clearance, and how many had completed their mandatory five-year vetting. In her reply, Ntshavheni clarified that the SSA was implementing a voluntary severance package, not a compulsory one. She said the initiative aligned with the government early retirement programme announced in the 2024 Medium-Term Budget Policy Statement and emphasised that the severance plan was aimed at addressing skills gaps with the SSA. “This process will amongst others assist the SSA to address the skills and competency gaps as identified in the recently completed skills audit and competency assessments. In addition, the process will also address the professionalisation of the agency as recommended in the high-level review panel report,” Ntshavheni explained. Regarding security clearances, Ntshavheni confirmed that all SSA staff held valid clearances, with 9% currently undergoing re-vetting. She gave the assurance that the process would not affect the country’s progress in meeting FATF requirements. 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
| Sex workers’ organisation laments impact of Pepfar funding halt SABC News reports that sex workers organisation, Sisonke, says the halting of the US President’s Pepfar funding has left their members vulnerable. President Donald Trump pulled the plug on the Emergency Plan for AIDS Relief funding fund last month. SA has received billions of US dollars to help control the spread and effects of HIV/AIDS since Pepfar’s inception in 2003. More than 100,000 people in the country are believed to be engaged in sex work. Sisonke National Movement Spokesperson, Yonela Sinqu, explained that the now closed mobile clinics provided non-discriminatory healthcare to their members. “Those clinics used to offer not only HIV care, but they also used to offer psychosocial support for our members. So, they used to offer gender affirming therapy for our other members who are transitioning from male to female, or female to male. We also had programs for people who use or inject drugs. So this is the connection that we had with these clinics, of keeping our members safe and keeping our members healthy. And we’d also seen an increase in the number of clients of sex workers also engaging with these clinics,” Sinqu pointed out. Read the full original of the report in the above regard at SABC News
Labour department to temporary shut-down Compensation Fund’s ROE online and other systems The Citizen reports that the Department of Employment and Labour (DEL) announced on Wednesday that the Compensation Fund would be temporarily shutting down the Return of Earnings (ROE) online system. According to the department, the fund will also shut down the internal Systems Applications and Products, Enterprise Resource Planning (ERP) Central Component (SAP ECC) for the Employer Registration and Employer Assessment modules. The shutdown will start on 19 March 2025 at midnight and will last until midnight on 31 March 2025. “The reason for the temporary shut-down is to complete preparatory actions for the 2025 ROE Season. This season will open on 1 April 2025 until 30 June 2025,” the DEL indicated. The services that will be affected and those that will not be affected during the ROE online system shut-down period are listed in The Citizen report. The CompEasy system, for the processing of claims, will not be affected and employers will be able to generate a letter of Good Standing during this time. Read the full original of the report in the above regard by Oratile Mashilo at The Citizen
Msunduzi Municipality commits to addressing traffic officers' grievances after picket on Wednesday The Mercury reports that the Msunduzi municipality's acting city manager, Neli Ngcobo, has vowed to deal with the grievances raised by traffic officers, who held a picket outside the City Hall in Pietermaritzburg on Wednesday. The traffic officers raised a raft of issues, including delayed payment of overtime, lack of resources, abuse of power, and management failures. According to SA Municipal Workers' Union leader Xolani Ntshangase, officers had previously lodged complaints against a senior manager for worker abuse, assault of junior staff, and threats against an employee, but these issues were not addressed. The traffic officers handed over a memorandum of grievances to Ngcobo, which included a request for the reinstatement of standby duty, payment for overtime, provision of new uniforms and recognition of women in management positions. They called for the municipality to address shortages of work vehicles, other tools of trade and the issues raised regarding the traffic department's management. In response, Ngcobo assured the staff that she was committed to addressing the issues in a timely and effective manner. She emphasised that while necessary processes must be followed, she would develop a plan of action within 72 hours to address immediate needs. Ngcobo also stated that a thorough investigation into the other issues will be undertaken. Read the full original of the report in the above regard by Thami Magubane at The Mercury
NUM worried about ‘possible bloodbath of job losses’ on multiple fronts Mining Weekly reports that the National Union of Mineworkers (NUM) is worried about a “possible bloodbath of job losses” across multiple sectors, including steel, transportation, ferrochrome and mining. This was expressed on the back of concerns about the 2025 national budget, problems faced by steel producer ArcelorMittal SA and state-owned logistics company Transnet, along with an underwhelming performance in the mining sector. At NUM’s national executive committee (NEC) meeting held on 27 and 28 February, a wide range of various issues were discussed, ranging from reflections on President Cyril Ramaphosa’s recent State of the Nation Address to concerns about the SA National Defence Force. The NEC accused the mining industry of the deliberate and intentional replacement of permanent jobs – which have better conditions of employment – with suboptimal subcontracting work, which it said amounted to “cheap labour and the exploitation of workers”. “We call upon mining companies to stop outsourcing under the pretext of cost [cutting]. This is pure exploitation of workers and [is] rather maximising profit at the expense of workers,” the union said. It also indicated that it was “deeply worried about the current mining fatalities in the country”, even though the domestic mining industry recorded its lowest ever number of fatalities in 2024. In respect of the energy sector, the NUM said it remained opposed to the unbundling of Eskom because it feared job losses and privatisation, which would reduce government control. The NUM also reiterated its opposition the Just Energy Transition (JET), calling it unfair and a threat to job security. Read the full original of the report in the above regard at Mining Weekly Other general posting(s) relating to mining
Former Prasa boss Mthuthuzeli Swartz pleads not guilty to stealing 42km of railway line GroundUp reports that as their trial got underway in the Gqeberha Regional Court this week, former Passenger Rail Agency of SA (Prasa) acting head Mthuthuzeli Swartz and businessman Nadir Mohiudeen pleaded not guilty to fraudulently selling 42km of railway line in the Eastern Cape. The case was initially opened at the Elliot police station in the Eastern Cape in February 2013 after Transnet security guards stopped Akisisa workers from continuing to uplift the rail, which was believed to have been done with a flatbed truck and mounted crane. Swartz, the regional manager in the Western Cape at the time the alleged crime took place in 2012, was arrested in January 2019. Mohiudeen was arrested the following month. .The case has been beset by delays in the intervening six years, including a High Court review, resulting in the accused’s pleas being heard for the first time on Tuesday. The case centers on the Transnet-owned railway line between Sterkstrook and Maclear being sold by Mohiudeen’s company, Spanish Ice, for scrap to Durban-based company Akisisa. The state contends that Swartz provided fraudulent cover for the upliftment of the rail. The cost of reinstating the rail line was estimated at R59-million. In the six years between the case being opened and the arrests of Swartz and Mohiudeen, Swartz was appointed as acting CEO at Prasa. He served for three months before the Prasa board removed him in April 2018, because insurers would not provide directors’ and officers’ liability cover for him. Following the not-guilty pleadings on Tuesday, the prosecution called Adrian Samuels to the stand. As general manager at Akisisa at the time, Samuels negotiated the scrap rail deal with Mohiudeen and Swartz. Read the full original of the report in the above regard by Steve Kretzmann at GroundUp
Motor Industry Staff Association alarmed by rise in fatal bus crashes on SA roads SABC News reports that the Motor Industry Staff Association (MISA) has expressed concerns about the increased number of fatal bus crashes on the country’s national roads. Sixteen people died after a bus lost control and overturned on the R21 road in Kempton Park on Gauteng’s East Rand on Tuesday morning. Yesterday morning, nineteen learners sustained injuries after a bus they were being transported in crashed into the back of a truck in Wadeville, also on the East Rand. “This bus crash in Ekhuruleni comes after a bus crash in the Free State that killed 10 people and the bus crash in the Kwa-Zulu-Natal where eight people died. Our roads should not claim lives like this; drivers should always be cautious, and we also urge motorists to be more patient on the roads, especially in stormy weather,” said MISA’s Sonja Carstens. A Road Traffic Management Corporation study indicates that there were 323 fatal bus crashes in the past five years in the country. Read the original of the short report in the above regard by Monique Lewis at SABC News
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