In our Thursday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
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Godongwana finally caves in and cans Vat hike Moneyweb reports that Finance Minister Enoch Godongwana has finally caved to widespread pressure by canning the planned 0.5 percentage point hike in Value-Added Tax (Vat). National Treasury announced the decision in a statement issued just after midnight on Thursday, saying the minister “will shortly introduce the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill [Rates Bill], which proposes to maintain the Vat rate at 15% from 1 May 2025, instead of the proposed increase to Vat announced in the Budget in March”. This development came as the DA and EFF have taken the matter to the Western Cape High Court, after being amongst the most vocal against the Vat hike since it was first mooted at a higher rate in the cancelled February budget. Godongwana and the ANC pushed ahead with a lower increase tabled in the March budget. “The decision to forgo the increase follows extensive consultations with political parties, and careful consideration of the recommendations of the parliamentary committees,” National Treasury noted on Thursday. It went on to indicate: “The decision not to increase Vat means that the measures to cushion lower-income households against the potential negative impact of the rate increase now need to be withdrawn and other expenditure decisions revisited.” Read the full original of the report in the above regard by Suren Naidoo at Moneyweb
For the second time in less than a week, fire breaks out at Tembisa Hospital News24 reports that the mood outside of the Tembisa Provincial Tertiary Hospital was calm on Wednesday following a second blaze at the facility in just a few days. There was no major commotion or panic among staff or patients as emergency personnel moved to control the fire before it could spread and cause significant damage. The affected area, confirmed to be the hospital’s Outpatient Department (OPD), remained closed off, and access to the hospital was tightly controlled. Gauteng Department of Health’s head of communication Motalatale Modiba advised that the affected area was adjacent to the accident and emergency unit which burned on Saturday evening. “But [the newly burnt area] was not an area that was being used. The area had been cordoned off from when we had the first incident, and the electricity supply to the area had been cut off from the first incident. So, the investigations obviously are ongoing in the particular case,” Modiba indicated. He stressed that no one was being denied medical care and that operations, although disrupted, continued in a limited capacity. Read the full original of the report in the above regard by Floyd Mathebula at The Citizen. Lees ook, Tweede brand by Tembisa-hospitaal in minder as ʼn week, by Maroela Media Phaahla says there is no link between fires at Tembisa Hospital SABC News reports that Deputy Health Minister Joe Phaahla believes there is no connection between the fire that broke out at Tembisa Hospital on Wednesday and the one that occurred over the weekend. Phaahla visited the hospital to evaluate the damage caused to the facility’s filing room and to discuss recovery plans. This after another fire broke out at the hospital’s emergency unit on Saturday. Phaahla said the two incidents were not related: “This was not a continuation of Saturday’s fire because the area where the fire broke out earlier this morning is quite distinct from Saturday’s one. There is no direct linkage, so whatever the forensic will find in terms of what triggered the fire. We are of the view that unless proven otherwise, something else happened on the other side of the room where the fire started.” Read the original of the short report in the above regard at SABC News. Read too, 'Service continues' despite second fire at Thembisa Hospital, says deputy minister, at TimesLIVE Other internet posting(s) in this news category
Gauteng education department to dock pay of teachers who joined Sadtu's march on Wednesday News24 reports that the Gauteng Department of Education (GDE) says it will dock the pay of teachers and office-based staff who participated in a national march by the SA Democratic Teachers’ Union (Sadtu) on Wednesday. Sadtu members marched to the offices of the departments of basic education and higher education and to the National Treasury to protest against the effects of austerity measures on its members. These were said to include increased pupil-to-teacher ratios; lack of school infrastructure such as halls, libraries, and laboratories; shortage of classrooms and toilets; inadequate provision of teacher assistants; lack of substitute teachers; and delayed payment of scholar transport. GDE spokesperson Steve Mabona confirmed that the "no work, no pay" principle would be applied. Trade union federation Cosatu also joined the march, stating that the action was part of Sadtu's ongoing resistance against "neo-liberal" budget cuts that negatively impacted the education sector. In a memorandum handed to the Department of Basic Education, Sadtu stated that the budget cuts had devastated the public education system. Sadtu spokesperson Nomusa Cembi said the employer had been informed of the march. "Members are aware of the 'no work, no pay' rule, and it won't be for the first time that it is applied. Members sacrificing their pay indicates they want to see change," said Cembi. Read the full original of the report in the above regard by Prega Govender at News24 (subscription or trial registration required). Read too, Teachers march against austerity measures harming South African education, at IOL News
Former miners due R1.3bn in unclaimed benefits for lung diseases can’t be traced BL Premium reports that MPs heard on Tuesday that the government was struggling to trace almost 75,000 former miners who were owed R1.3bn in compensation for lung diseases contracted at work. Most of the miners were assessed more than two decades ago, during an era characterised by poor record keeping and extensive delays, health department compensation commissioner Barry Kistnasamy said when presenting the Mines and Works Compensation Fund’s 2025/26 strategic plan to parliament’s portfolio committee on health. Few records are available for older claims, despite the legal requirement that clinical records be retained for 40 years. A total of 66,000 claims approved before 2005 have yet to be paid because the Compensation Commission for Occupational Diseases (CCOD) doesn’t know how to contact the beneficiaries, or even if they are still alive. About a third of the approved claims are for migrant workers from neighbouring states, and a third more are for former miners from the Eastern Cape. Kistnasamy appealed to MPs to support a high-level imbizo to garner political support for a renewed push to find eligible claimants and pay them their dues. “We have the money but we can’t track and trace the individuals, even though we have tried desperately,” he lamented. The Compensation Fund, from which claims are paid, is in a sound financial position, and had assets of just less than R6bn at the end of the 2024/25 financial year. The CCOD has in recent years dramatically improved its systems and now takes just three months to conduct a medical examination, assess claims for compensation, and pay out eligible beneficiaries. It has paid out R1.98bn to claimants over the past nine years. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only)
Consumer inflation eased to 2.7% in March, but interest rate cuts unlikely BL Premium reports that consumer inflation eased to 2.7% in March, from 3.2% a month earlier, but despite the more favourable conditions economists remain unconvinced that the SA Reserve Bank (SARB) will cut interest rates soon. Wednesday’s reading released by Stats SA marked the lowest year-on-year reading since the early months of the Covid-19 pandemic in 2020. Lower fuel prices, subdued domestic demand, easing infrastructure constraints and softer global oil prices all contributed to a favourable inflation environment. The rate was well below the SARB’s 3% to 6% target range. In March, the SARB kept the repo rate steady at 7.50%, citing rising inflation risks, global economic uncertainty and the potential impact of fiscal policy changes. “I don’t think the Reserve Bank will cut rates in May at the next MPC [monetary policy committee] meeting, despite conditions dictating that they should. I think the Reserve Bank will remain wary of global risks,” Old Mutual chief economist Johann Els commented. He did, however, expect the Bank to begin cutting rates from July onwards. FNB economist Koketso Mano forecast inflation to remain steady in April before resuming a rising trend in May. Read the full original of the report in the above regard by Jana Marx at BusinessLive (subscriber access only). Read too, Inflation cools to 2.7% thanks in part to cheaper fuel, at Fin24 (subscription or trial registration required). En ook, Inflasie op laagste vlak in vyf jaar, maar druk wyk nog nie, by Maroela Media Other internet posting(s) in this news category
Banks and insurers opt for paying living wage over minimum wage BL Premium reports that SA banks and insurers have bucked the trend and revealed their minimum pay – and according to the data provided it is much higher than the legislated minimum wage. Nedbank last week said it had increased its minimum wage by 6.7% to R240,000 a year with effect from this month. Rival Absa hiked its minimum pay 8.7% to R250,000 – also with effect from April. Standard Bank pays a minimum salary of R258,390 for its unionised employees in SA. FirstRand, owner of FNB, RMB and WesBank, has been paying a minimum guaranteed package for banking roles of R215,000 a year from August 2024. The group also pays a minimum of R185,000 a year for nonbanking roles. Both amounts exclude performance-related variable pay, medical aid subsidy and school fee assistance for eligible employees. Investec’s last annual report shows the group’s minimum salary for employees in SA is R250,000 a year. Investec is expected to release its annual report in the coming weeks that might reveal an increase in its minimum pay for SA employees. SA insurance firms, particularly those listed on the JSE, have also begun revealing their minimum pay, with Old Mutual paying R16,000 a month, while Santam pays R15,000 a month, according to its 2023 annual report. The minimum guaranteed pay paid by banks and insurers is significantly above the legislated minimum wage in SA of R28,79 an hour, which translates to just more than R60,000 a year. Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive (subscriber access only)
Capitec CEO Gerrie Fourie’s R105 million farewell BusinessTech reports that outgoing Capitec CEO Gerrie Fourie received over R100 million in his remuneration package in the 2025 financial year as the bank’s earnings skyrocketed. Fourie, who has been Capitec’s CEO for over a decade, saw his single-figure remuneration rise from R65.7 million in FY24 to R104.8 million in FY25. His pay package included R18.8 million in guaranteed pay, R16.9 million in short-term and R75 million in long-term incentives. His short-term and long-term incentives drove the jump, increasing from R5.9 million and R42.9 million in FY24, respectively. Capitec’s CFO, Grant Hardy, also significantly increased his single-figure remuneration from R12.5 million to R20.7 million, driven by growth in his short-term and long-term incentives. Fourie and Hardy’s increased remuneration comes from a powerful performance by Capitec, which beat analysts’ expectations. The R105 million package will be Fourie’s last for a full year, as he will retire from Capitec following the group’s AGM in July. His remuneration for the 2026 financial year and post-retirement will be detailed in next year’s remuneration report. Fourie has been part of the executive management team for 25 years. Graham Lee has been identified as Fourie’s replacement and will become Group CEO and a board member in July 2025. Lee is the Executive responsible for Personal Banking. He has been a member of the group executive team since 2022 and joined Capitec in 2003. Read the full original of the report in the above regard by Luke Fraser at BusinessTech. Read too, Capitec CEO’s pay tops R100m as profit and share price surge, at BusinessLive (subscriber access only)
Ramaphosa faces legal storm over employment equity regulations BusinessTech reports that trade union Solidarity says it will approach the courts to hold President Cyril Ramaphosa in contempt of court if he does not withdraw the recently published employment equity regulations. According to the trade union, the state is in breach of a settlement agreement signed in 2023 and Ramaphosa, as head of state, represents the government in the matter. Solidarity and the Department of Employment and Labour (DEL) signed a ‘historic’ settlement agreement on 28 June 2023, establishing clear boundaries for employment equity laws. The agreement stemmed from a mediation process that started after Solidarity filed a complaint with the International Labour Organisation (ILO) against the SA government. This was over the “rigid” application of affirmative action in SA. The ILO recommended that the CCMA should facilitate the dispute and what resulted was the agreement signed by Solidarity and the DEL. It included specific criteria that needed to be taken into account when applying the laws. According to Solidarity, the final regulations that have now come into effect only include some of these provisions, with others left out. Solidarity Chief Executive Dr Dirk Hermann said that the state had proven to be an unreliable partner. “It is worrying that the sections that were omitted, among other things, stipulate that no one may be fired based on race laws, that race laws must be temporary, and that skills and the inherent requirements of the job must be taken into account,” he pointed out. In addition to the contempt of court case, Solidarity said it would also challenge the rationality and legality of the regulations in court. Solidarity will also once again approach the ILO to file a complaint against the government for breaching an agreement facilitated by the organisation. Read the full original of the report in the above regard at BusinessTech. Lees ook, Raswette: Ramaphosa minag hof, sê Solidariteit, by Maroela Media. En, Rasgebaseerde teikens vererger die ekonomiese krisis, by Maroela Media
Principal removed from Madisong High School in Hammanskraal following corporal punishment allegations The Citizen reports that the principal of Madisong High School in Hammanskraal has been temporarily reassigned pending an investigation into allegations of physical assault against students. This was confirmed by the Gauteng education department on Wednesday. Education MEC Matome Chiloane expressed deep concern over reports that the school administrator had allegedly engaged in corporal punishment. “We are extremely disheartened by these reports and remain steadfast in our commitment to ensuring schools are safe spaces for all learners. We remind all staff that corporal punishment is strictly prohibited by law, and any violation will be met with swift and decisive action,” Chiloane said. According to the MEC’s spokesperson, Xolani Mkhwemte, several students came forward with accounts of physical discipline administered by the principal. “The Department can confirm that an internal investigation has been launched to determine the circumstances surrounding these serious allegations,” Mkhwemte stated. As the investigation proceeds, the principal will report to the department’s district office rather than continuing duties at the school. Parents of the affected students have been advised to file formal police reports. Read the full original of the report in the above regard by Enkosi Selane at The Citizen. Read too, Gauteng principal in hot water over corporal punishment, at Sunday World
Four warders arrested over inmate's unnatural death at Mangaung prison TimesLIVE reports that four prison warders have been arrested in connection with the death of inmate Mpho Mkhumbeni, 37, at the Mangaung Correctional Centre in Bloemfontein. The arrests came after a postmortem showed the inmate, who was found dead on 12 March, died from unnatural causes. Mkhumbeni had been serving a life sentence for a murder conviction handed down in November 2014. Police spokesperson Brig Motantsi Makhele said it was initially believed to be a natural death and the case was opened as an inquest. However, subsequent postmortem results indicated Mkhumbeni died due to unnatural causes and these findings led to a murder investigation. The police in Bloemspruit launched further investigations and on Tuesday four warders aged between 34 and 50 were taken into custody for their alleged involvement in Mkhumbeni’s death. The suspects appeared in the Bloemfontein Magistrate’s Court on Wednesday when the case was postponed to Friday for bail applications. Read the full original of the report in the above regard by Mmatumelo Lebjane at TimesLIVE. Read too, Case against Mangaung prison wardens arrested for murder of inmate postponed, at EWN. En ook, Vier tronkbewaarders vas ná dood van gevangene, by Maroela Media Other internet posting(s) in this news category
Another Kloof Nek crash leaves minibus commuters injured News24 reports that a minibus taxi driver and a commuter had to be freed from the vehicle on Wednesday afternoon after a collision along Kloof Nek Road in Tamboerskloof, bordering Gardens, in Cape Town. Traffic spokesperson Maxine Bezuidenhout said the taxi was involved in an accident with a truck and a sedan near Firdale Avenue. Eight people were reported injured and were transported to hospital for medical treatment. Two passengers who had been inside the taxi said the vehicle's brakes appeared to have failed, and attempts to use the handbrake had been unsuccessful. They recalled that the taxi, which had been heading to the CBD, had travelled down Kloof Nek Road uncontrollably while they watched the driver struggle to apply the brakes. They said the driver swerved to avoid a motorbike or scooter in front of them but then hit a sedan car and then a truck. Police are investigating a case of reckless and negligent driving. In October last year, a bus carrying tourists smashed into a MyCiTi bus stop and two stationary vehicles lower down Kloof Nek. Before that in September, several people were injured when a cement truck lost control on Kloof Nek Road, crashed into around 17 vehicles, and drove into a newly opened ice cream shop. In September 2023, a 24-wheeler truck plunged down Kloof Nek Road, smashing into cars before overturning next to an apartment building. Read the full original of the report in the above regard by Hanlie Gouws, Noxolo Sibiya, & Jenna Verster at News24 (subscription or trial registration required) Government allocates R408m 'once-off gratuity' to taxi industry for Covid-19 relief News24 reports that in a parliamentary question this week, BOSA leader Mmusi Maimane asked Transport Minister Barbara Creecy the purpose of and rationale behind the "once off-taxi gratuity allocation of R408 million" contained in the 2025/2026 budget that Finance Minister Enoch Godongwana tabled on 12 March. He also wanted to know who the intended beneficiaries were and the criteria that were used to determine the distribution of the gratuity. Creecy answered that Cabinet approved a once-off relief fund of R1.35 billion for the taxi industry in 2021 to mitigate the impact of the Covid-19 pandemic. "Due to a number of challenges, not all operators managed to access the relief fund," Creecy indicated. More than 56,000 eligible operating licences on the system were still unpaid by March 2023, leaving R708 million unpaid. Cabinet approved an extension, with R300 million disbursed in 2024/2025 and R408 million in 2025/2026. "The Taxi Relief Fund was approved as an ex gratia payment to assist taxi operators to mitigate the hardship caused by Covid-19 restrictions since the taxi industry was unable to access other relief response packages that were established for other sectors at the height of the pandemic," Creecy explained. The "relief" is available to legal taxi operators who have valid operating licences and who were active at the start of the national lockdown. To qualify, taxi operators must be SA citizens or permanent residents, hold a valid operating licence or proof of application for renewal and be registered for income tax. BOSA wasn't impressed and found it unacceptable that public funds continued to flow to a sector without clear transparency, accountability, or evidence of need, especially as essential public services like education and healthcare remained underfunded. Read the full original of the report in the above regard by Jan Gerber at News24 (subscription or trial registration required). Lees ook, Nóg R408 m. se ‘covid-verligting’ vir taxibedryf, by Maroela Media
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