In our Thursday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
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Godongwana's third budget almost the same and ‘nothing to be proud of’, says Solidarity Maroela Media reports that Solidarity’s assessment of Finance Minister Enoch Godongwana's third attempt at a national budget on Wednesday is that it was “definitely not worth the wait and is also not something to be proud of.” Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), characterized the budget as “largely a continuation of the same economic stupidity that has previously hampered South Africa’s economy, and therefore the economy will continue to stagnate as in the past.” According to Du Buisson, Godongwana revealed “his distorted ideas about what the economy needs by highlighting the main objectives of the budget as redistribution, redress and structural transformation. He went on to comment: “This is, as always, a poor budget. Simply dividing a shrinking economy by taxing the rich – and, according to the minister, spending 60 cents of every rand on social relief – is not sustainable. It is certainly not something to be proud of.” Noting the considerable fuss over the revenue lost due to the absence of a VAT increase, Du Buisson argued that the real source of the problem was that government spending was growing faster than the broader economy. He also observed that personal income tax brackets had once again not been adjusted for inflation, so reducing people’s disposable income and fuel levies were additionally being increased for the first time in three years. However, Solidarity was encouraged to see that space was being created for increased private sector participation in infrastructure projects – especially transport infrastructure. Read the full Afrikaans original of the report in the above regard at Maroela Media Cosatu critiques Finance Minister's Budget as insufficient to stimulate economic growth Business Report writes that the Congress of South African Trade Unions (Cosatu) indicated on Wednesday that it did not think Finance Minister Enoch Godongwana's third budget attempt on Wednesday was enough to stimulate growth for the country's economy. The federation said: "Whilst appreciating the scrapping of the VAT hike, we remain deeply distressed that for two years in a row, Personal Income Tax brackets have not been adjusted for inflation. This will see workers at the margins of the next tax bracket in danger of paying higher taxes when receiving their annual increases. This trend must be reversed. Whilst regretting the decision not to extend VAT exemptions for additional food items or provide further fuel price relief, we urge government to pursue additional measures to cushion indigent households from poverty, in particular expanding free electricity and water." Cosatu added that the tax regime must be reviewed to provide relief for low-income earners and “ensure wealthy individuals and companies pay their fair share." Cosatu welcomed the government’s acknowledgment that “bleeding the public services working-class communities and businesses depend upon is reckless and harmful to the economy” and welcomed the 5.4% increase in expenditure over the Medium-Term Expenditure Framework (MTEF) and allocations to frontline services. Read the full original of the report in the above regard by Ashley Lechman at Business Report Godongwana maintains focus on health, education Mail & Guardian reports that in his 2025 budget speech presented on Wednesday, Finance Minister Enoch Godongwana opened the section on public services with a sobering account of SA’s crumbling healthcare system. He read aloud from an open letter written by Sarah Stein, a medical student at UCT. Her words painted a bleak picture of life on the front lines – delivery rooms without gloves, nurses having to buy their own protective gear, and doctors making impossible choices because of limited intensive care beds. It was for this reason, Godongwana said that “the budget maintains the expenditure trajectory presented in the March 12 budget”. To address chronic underfunding and infrastructure collapse in basic services, government spending over the medium term will amount to R6.69 trillion, with an additional R180.1 billion allocated to critical areas. Although lower than the R232.6 billion proposed in March, there will be a focus on education and healthcare. The provincial education budget baseline for 2025–28 is set at R1.04 trillion, while an additional R9.5 billion has been allocated to retain teachers and expand staffing. A further R10 billion – announced in March – remains in place to broaden access to early childhood development (ECD). The provincial health budget stands at R845 billion over the medium term. It will be boosted by R20.8 billion to hire 800 post-community service doctors, alleviate shortages of essential goods and services, and help the sector meet personnel costs and reduce unpaid obligations (accruals). Read the full original of the report in the above regard at Mail & Guardian. Read too, Budget 3.0: R20bn to hire 800 doctors, at TimesLIVE Premium (subscriber access only). And also, Government sets aside R20bn to save jobs in public health sector, at SowetanLive Youth Capital slams Godongwana’s jobseeker grant proposal as ‘inadequate’ for youth unemployment crisis City Press reports that youth advocacy group Youth Capital has criticised Finance Minister Enoch Godongwana’s latest budget speech, arguing that the government’s ongoing consideration of a jobseeker grant would do little to address SA’s structural youth unemployment crisis. Godongwana used his speech to confirm that the government was actively exploring a jobseeker allowance as part of broader reforms to active labour market programmes. But, pointing to recent data showing deepening youth joblessness, Youth Capital stressed that “a jobseeker grant is not the solution to a stagnant economy”. According to the most recent Quarterly Labour Force Survey, youth unemployment has grown by 10% over the past decade, with nearly one in every two young people aged 15 to 35 currently unemployed. “Youth unemployment is not just a short-term issue; it’s a structural crisis,” Youth Capital’s Clotilde Angelucci said, adding that six out of 10 unemployed young people had never had a job. Angelucci said that without bold, large-scale interventions, many would remain shut out of formal employment for life. While Youth Capital acknowledged the high costs of seeking a job, citing its own 2023 research showing that young people spend up to R1,000 a month looking for work, it argued that financial support for jobseekers was insufficient if the economy continued to underperform. “You can’t incentivise job seeking if there are no jobs to seek,” Angelucci pointed out. The minister’s speech included limited announcements aimed directly at job creation. He largely reiterated structural reforms under Operation Vulindlela and public-private partnerships as the main paths to economic recovery. Read the full original of the report in the above regard by Sthembiso Lebuso at City Press (subscription / trial registration required) Treasury slashes allocation for early retirement of public sector employees Moneyweb reports that Finance Minister Enoch Godongwana advised in his Budget speech on Wednesday that the provisional allocation for the civil service early retirement programme had been retained, but had been revised down from R11 billion estimated in the 2024 Medium-Term Budget Policy Statement to R5.5 billion across 2025/26 and 2026/27. Re-introduced last year, the incentive aims to rationalise and rejuvenate the public service while retaining critical skills and promoting the entry of younger talent. “This initiative is expected to motivate 15,000 public service employees to apply for early retirement in 2025/26 and 2026/27, with R5.5 billion allocated to support the programme”, National Treasury Director-General Dr Duncan Pieterse indicated. The public sector wage bill has weighed heavily on the fiscus for years, and attempts to rein it in have been largely unsuccessful. Pieterse noted that discussions with organised labour on the process for people to apply for early retirement were underway in the Public Service Co-ordinating Bargaining Council (PSCBC). “The allocation will be revisited on the conclusion of these consultations as part of the next budget process, although functions that are not parties to the PSCBC process – such as the Department of Defence – can proceed with implementation,” he indicated. Read the full original of the report in the above regard by Anathi Madubela at Moneyweb Godongwana reverses decision to expand zero-rated food basket The Citizen reports that Finance Minister Enoch Godongwana announced on Wednesday when delivering his third budget speech this year that the zero-rated food basket will no longer be expanded. Scrapping the expansion of the zero-rated food basket follows the decision not to implement a 0.5% increase in the value-added tax (VAT) this year and next. In his second budget speech delivered on 12 March 2025, Godongwana announced that the zero-rated food basket would be expanded to alleviate pressure on already struggling South Africans. The list included edible offal from sheep, poultry, goats, swine, and bovine animals; specific cuts such as heads, feet, bones, and tongues; dairy liquid blends; and tinned or canned vegetables. However, in the third budget speech, the minister indicated that “the expansion of the zero-rated basket, which was included to cushion poorer households from the VAT rate increase, falls away.” The minister also announced an additional R7.5 billion over the Medium-Term Expenditure Framework (MTEF) to increase the effectiveness of the SA Revenue Service (Sars) in collecting more revenue. Godongwana once again did not adjust personal income tax brackets for inflation, which is expected to generate an additional R15.5 billion in revenue in the 2025/26 fiscal year. By not adjusting tax brackets to keep pace with inflation, the government is allowing allows a phenomenon known as ‘bracket creep’ to occur. Read the full original of the report in the above regard by Tshehla Cornelius Koteli at The Citizen Other internet posting(s) in this news category
Consumer inflation inched up slightly in April to 2.8% due to food costs Fin24 reports that annual consumer inflation ticked up marginally in April to 2.8%, from 2.7% in March. The month-on-month change in inflation between March and April was 0.3%. Inflation for food & non-alcoholic beverages (NAB) rose to 4%, the highest annual rate since 4.6% in September 2024. The rise in food & NAB inflation was largely due to higher meat prices, especially for stewing beef, mince and steak. Meat prices increased by 2.3% on average between March and April, the highest monthly rise since January 2023. Meat accounts for 5.1% of total household spending. The index for oils & fats increased by 1.4% between March and April, which took the annual rate to 4.8%. Cooking oil is now 6.1% and brick margarine 5.5% more expensive than a year ago. On average, fuel prices declined by 3.2% between March and April, with motorists now paying 13.4% less for fuel than a year ago Read the full original of the report in the above regard at News24 Business. Read too, Inflation rises slightly in April, but core pressures continue to ease, at Moneyweb General fuel levy set to rise from June as a consequence of scrapping of proposed Vat hike Moneyweb reports that SA’s general fuel levy will increase for the first time since 2022, Finance Minister Enoch Godongwana announced during his budget speech on Wednesday. The levy will rise by 16 cents per litre for petrol and 15 cents per diesel, with effect from 4 June. “This is the only new tax proposal I am announcing for the 2025/26 fiscal year,” Godongwana indicated. Officials from the National Treasury clarified that the increase was inflation-linked and not intended to generate additional revenue. The adjustment follows the government’s decision to reverse a proposed Vat hike and is expected to raise between R3.5 billion and R4 billion in the current financial year. The increase coincides with a period of declining global oil prices, which have led to two consecutive fuel price cuts in recent months. These cuts gave some relief to consumers and helped ease inflationary pressures. Looking ahead, Treasury anticipates further fuel levy increases in 2026 and 2027, aligning with inflation trends. Read the original of the short report in the above regard by Liesl Peyper at Moneyweb. Read too, Fuel levy goes up for the first in three years, at SowetanLive. And also, Bad news for petrol prices in South Africa, at BusinessTech
Delivery biker killed in collision with truck in Wadeville on Tuesday Germiston City News reports that a delivery biker was killed in a collision with a truck at the intersection of Osborne and Nagington roads in Wadeville on Tuesday. Emergency services from Wadeville Fire Station responded at approximately 14:38. On arrival, first responders found a man, believed to be in his early thirties, lying face-down with severe head injuries. Despite the efforts of paramedics, the victim did not respond to emergency medical treatment and was declared dead at the scene. The truck driver, who was the only occupant of the vehicle, escaped unharmed. The Ekurhuleni Metro Police Department (EMPD) is investigating the circumstances surrounding the crash. Read the original of the short report in the above regard by Sharon Mdaka at The Citizen Other internet posting(s) in this news category
CCMA tables facilitators’ proposal in bid to resolve Untu and Transnet wage impasse Business Report writes that the United National Transport Union (Untu) confirmed on Wednesday that CCMA senior commissioners facilitating resolution of the wage dispute between itself and Transnet have tabled a formal proposal to help resolve the ongoing impasse. Untu general secretary Cobus van Vuuren said that after a lengthy and challenging round of wage negotiations in respect of the 2025/26 period, the commissioners tabled a formal Facilitators’ Proposal for Settlement. He noted that the proposal represented a final effort to avert protected industrial action by Untu. “The proposal has been shared with all parties for consideration. Untu’s Executive Council has met to determine the next steps, and a formal mandating process in terms of the Facilitators’ Proposal for Settlement is now underway. Members will decide whether to accept or reject the proposal. Should it be rejected, Untu reserves the right to initiate protected industrial action in line with the Labour Relations Act (LRA),” Van Vuuren reported. The proposal is reportedly for a three-year agreement that will commence on 1 April 2025, and will end on 31 March 2028, with employees to receive a 6% increase in each year. Van Vuuren said the proposal must also be considered by Transnet, and all parties were expected to respond to the CCMA by 10 June 2025. Transnet said it would continue to participate in the conciliation process led by the CCMA to resolve the wage dispute. Read the full original of the report in the above regard by Yogashen Pillay at Business Report. Read too, Are threats against Transnet over? CCMA proposes revised offer to avert strike, at The Citizen. And also, CCMA proposes more pay to avoid logistics strike, at Mining Weekly
Pick n Pay names former RMB CEO George Formby to replace Gareth Ackerman as chair News24 Business reports that former RMB CEO James Formby is set to replace Gareth Ackerman when the latter retires as chairperson of Pick n Pay in August. The retail group said Formby, who will step down as a member of the audit, risk and compliance committee and chair of the finance and investment committee at the end of the financial year, has played a “key role in guiding the Pick n Pay turnaround strategy” since his appointment as lead independent director in July 2023. He will take up his new position on 5 August when Ackerman retires. Formby said he had “great confidence” in Pick n Pay CEO Sean Summers and the management team and looked forward to “partnering with them on this journey”. The board extended its “sincere thanks” to Ackerman for his “dedicated service as chair of the board over the past 15 years”. Sasfin Securities strategist David Shapiro noted that Ackerman stepping down was an “end of an era” as his family had been “synonymous” with Pick n Pay and “naturally important voices in the boardroom”. He added, however, that in recent times their involvement at Pick n Pay had come under scrutiny from market commentators who questioned whether the family’s continued involvement was responsible for holding the group back. Read the full original of the report in the above regard by Nick Wilson at News24 Business (subscription / trial registration required)
Public Works determined to root out ghost employees to save costs News24 reports that in a bid to cut costs in the Department of Public Works and Infrastructure (DPWI), Minister Dean Macpherson has launched an audit to clamp down on ghost workers. This week, a departmental directive was issued for all staff to report to identify themselves physically. According to Macpherson, his decision stems from the need to reduce costs in the department and he explained further: “We are making sure that our cost of employees are in line with the actual headcount. Every employee is required to report to a head office or to a regional office and actually identify themselves and that we can then cross-reference that against our entire employee database so that we can make sure that who we pay actually works for us.” In a note to employees, a HR admin officer told staff to formally present themselves for physical verification at the department’s head office in Pretoria and indicated: “During this process, you will be required to provide your ID document or driver’s licence. The physical verification process will start from 19 May 2025 to 20 May 2025 (Monday and Tuesday). The purpose of this verification is to address the issue of ghost employees within the department. Please be advised that failure to comply may result in being classified as a ghost employee, which could lead to the suspension of salary payments until compliance is achieved. Employees stationed in regional offices but listed under Head Office should coordinate with their respective HR offices for physical verification arrangements.” Read the full original of the report in the above regard by Jason Felix at News24 (subscription / trial registration required)
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