Today's Labour News

newsThis 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.

news shutterstockIn our Friday morning roundup, see
summaries of our selection of recent South
African labour-related reports.


TOP STORY – COST OF BBBEE

BBBEE policy is a ‘substantial burden on SA economy’, SRI report finds

BL Premium reports that a report shining the spotlight on the cost of BBBEE policy to the struggling SA economy has dismissed the policy as a substantial economic burden, which has resulted in reduced GDP growth and huge job losses. Titled “The costs of BBBEE Compliance”, the report was released on Thursday by the Solidarity Research Institute (SRI), in collaboration with the Free Market Foundation. Its release comes amid fierce debate over the government’s BEE policies. “This study estimates annual compliance costs with BBBEE at R149bn-R290bn, equivalent to 2%-4% of SA’s GDP of R7.3-trillion … These costs, particularly in high-intensity sectors like mining and finance, have imposed a substantial economic burden, potentially reducing GDP growth by 1.5%-3% annually and contributing to 96,000-192,000 fewer jobs per year,” the report indicates. The diminished GDP growth is said to have resulted in the loss of 3.8-million jobs, leaving the country far behind other economies of similar scale. “This results in reduced quality of life for the overall majority of the population to the benefit of a small politically connected elite,” according to the report. However, Black Business Council president Elias Monage said the report was not backed by “empirical evidence, in any form or shape”. In his view, the economy has not been performing for many years “and that has nothing to do with BEE”.

Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only). Lees ook, Swart ekonomiese bemagtiging doodskoot vir ekonomie, werksgeleenthede, by Maroela Media

BBBEE destroyed R5 trillion and four million jobs in South Africa

Daily Investor reports that a new study by the Solidarity Research Institute (SRI) and the Free Market Foundation (FMF) estimates that BBBEE has cost SA R5 trillion and led to the loss of four million jobs. The study compares SA’s Broad-Based Black Economic Empowerment (BBBEE) model with global affirmative action policies in Malaysia, India, Brazil, the US, and Namibia. It found that SA’s version was the most intrusive and economically damaging and resulted in a loss of between 2% and 4% of the gross domestic product (GDP).   This, in turn, translated into up to 192,000 lost job opportunities annually in SA due to slow economic growth.   “Over nearly two decades, the cumulative drag on growth amounts to more than R5 trillion in lost economic activity,” Morné Malan, FMF Senior Associate and co-author of the report, pointed out. “Our findings show that BEE, as currently designed, is enriching a small elite while throttling economic dynamism and deepening unemployment,” he stated, adding that this left SA far behind its global peers, while destroying nearly four million jobs in the process. The report argues that current policies have become economically unsustainable and increasingly divorced from meaningful grassroots empowerment. FMF Head of Policy, Martin van Staden, commented: “The fact is that these provisions have done significant harm to the South African economy, with little if any benefit on the other end. There are better ways to build a growing and prosperous economy. We urgently need to move from race-based redistribution to opportunity-based economic freedom.”

Read the full original of the report in the above regard at Daily Investor. Read too, Job creation has been minimal in SA since democracy, claims Solidarity, at EWN. En ook, SA raswette ‘verreweg’ ergste ter wêreld – studie, by Maroela Media

Other internet posting(s) in this news category

  • Swart ekonomiese bemagtiging: Ongelykheid tussen swart SA’ners al groter, by Maroela Media
  • BBEEE: ‘SA werk as SA’ners werk’, by Maroela Media


OCCUPATIONAL HEALTH & SAFETY

Plane reportedly ran out of fuel in deadly KZN light aircraft crash

SowetanLive reports that Lwazi Msane-Mchunu, a licensed pilot, died together with 23-year-old student pilot Nqobile Biyela and medical student Siphesihle Buthelezi when their plane crashed between Mooi River and Greytown after it reportedly ran out of fuel. Mchunu's uncle Sifundiso Mchunu reported that he had travelled on Saturday from Pretoria to Durban in the company of his friend Buthelezi and Biyela as well as his colleagues who travelled on a different flight. He said the five were to travel back to Pretoria on Sunday. He went on to report what happened: “When they left Durban they did not have enough fuel so they had to travel to the nearest airport, which was in Ladysmith, for a refill. They got an instruction that they could not land in Ladysmith and told to go to Pietermaritzburg but they experienced bad weather. From there they went to Greytown as it was the nearest airport but there again they were met with a thick fog, heavy rain and winds.” One of the flights tried to land but ended crashing into a sugar cane field with its two occupants, who sustained minor injuries. However, the plane Msane-Mchunu was piloting could not land and reached out for help with finding a suitable landing area, but had no luck. Later, their flight crashed between Mooi River and Greytown after it ran out of fuel. In a separate incident four days earlier, another crash in Lanseria claimed the life of 24-year-old pilot Micyla Steyn. The KZN crash brought to 49 the number of crashes since the beginning of the year. Nine people died in those crashes.

Read the full original of the report in the above regard by Michelle Banda at SowetanLive

Gender-based violence allegations shake KZN Premier's office after DG's resignation

The Mercury reports that the Office of the Premier in KwaZulu-Natal (KZN) has been rocked by allegations of gender-based violence after the most senior civil service staff member in that office suddenly quit her post, allegedly after she was threatened by a male staffer. The chairperson of the Portfolio Committee on the Office of the Premier, Mbali Frazer, has written to Premier Thami Ntuli demanding an explanation regarding the resignation of Director-General Dr Nonhlanhla Mkhize, who resigned suddenly this week. Frazer said it was alleged that Mkhize quit after allegedly being subjected to verbal abuse and threatening conduct by a senior male staff member in that office. The Premier's office acknowledged Dr Mkhize's resignation a few days ago but did not give a reason for her resignation.   Frazer said in a statement: “It is alleged that a youth manager in the Office of the Premier threatened to physically harm the first and longest-serving female Director-General, Dr Nonhlanhla Mkhize. Her crime was refusing to sign off on an appointment letter related to the R100 million Youth Fund.” According to Fraser, on 4 June there was a heated meeting between the DG and the official when Mkhize was allegedly threatened and the police were called.   Mkhize subsequently resigned.   “The DG ended up tendering her resignation, which was not her plan, due to fear for her safety and life. Her resignation was tendered due to the severe nature of threats, as well as the emotional and psychological trauma,” Frazer’s letter claims.

Read the full original of the report in the above regard by Thami Magubane at The Mercury. Read too, KZN official trying to attack ex-DG in R100m fund squabble ‘restrained’ by guards, at News24 (subscription / trial registration required). And also, EFF calls for Premier Ntuli to address gender-based violence allegations in his office, at The Mercury

Families demand transparency in submarine tragedy investigation

Cape Argus reports that the widower of Lieutenant Commander Gillian Hector, who was among three people who died in the submarine tragedy in Kommetjie in 2023, has welcomed the DA's demand to declassify and publicly release the SA Navy’s internal investigation report. Hector, Warrant Officer William Malesela Mathipa, and Warrant Officer Mokwapa Lucas Mojela were killed during a storm when high waves impacted a vertical transfer exercise involving the SA Air Force Maritime Lynx helicopter and the SA Navy’s submarine SAS Manthatisi in Kommetjie on 20 September 2023. The submarine was en route to Cape Town when seven crew members were swept out to sea during the incident, of whom four survived. DA spokesperson on Defence and Military Veterans, Chris Hattingh, said evidence showed that serious failures in planning and operational oversight directly contributed to the fatal outcome. “The report, finalised in December 2023, remains hidden behind a wall of secrecy, censored by Defence Intelligence and withheld from the victims’ families, their legal representatives, and even the Hawks,” said Hattingh. According to Hector's widower, Romero Hector, the families have not been given full insight into the report. In response, the SANDF said: "The SAN (South African Navy) is committed to full cooperation with the law enforcement authorities within the confines of formal protocols and legal procedures. The re-opened BOI has been completed. The report is currently being processed by the PAIA legal team. Once the necessary legal procedures, including declassification and sign-off by relevant authorities (Defence Intelligence, SANDF, and the Secretary of Defence), are completed, a response will be provided in accordance with PAIA requirements.”

Read the full original of the report in the above regard by Genevieve Serra at Cape Argus

Condemned Pietermaritzburg school building raises fears of looming disaster

The Witness reports that Springhaven Primary School’s staff and school governing body (SGB) have urgently appealed to the Department of Education to intervene as deepening cracks in the school’s deteriorating administration building raise fears of a looming disaster. The growing concern comes just months after the school community was devastated by a freak accident in which 12-year old pupil Emery Patrice was killed when a boundary wall from a neighbouring property collapsed onto him and a friend while they were sitting on the pavement opposite the school. The friend, aged 11, survived but suffered a broken leg and other serious injuries. The SGB said a similar tragedy could occur – this time from within the school premises – as the condition of the administration building was continuing to worsen. “If left unattended, this structure could easily injure or kill someone,” said SGB members, who have appealed for urgent intervention. The most affected sections of the building includes the foyer, staff toilets, waiting area, staff room, and part of the balcony – all of which have been cordoned off since August last year after cracks widened and materials began falling from the structure. In October, the Department of Employment & Labour (DEL) condemned the affected part of the building, citing serious safety risks.   DEL spokesperson Nhlanhla Khumalo said a prohibition notice was issued on 2 October 2024 following a routine inspection that found “a huge crack that poses a threat to the health and safety of the employees occupying that section of the building.”

Read the full original of the report in the above regard by Prashalan Govender at The Witness

Other internet posting(s) in this news category

  • Workplaces must wake up to the harmful invisibility of endometriosis, at Mail & Guardian
  • Police offer R60,000 reward for info regarding IFP MP Sithole’s killing, at SABC News
  • DRK: Soldate binnekort tuis, by Maroela Media
  • ‘Terugkerende DRK-soldate verdien antwoorde’, by Maroela Media


FAIR PAY OFFERS

Bosa’s Maimane tables bill to stop employers from asking jobseekers for payslips before job offer

News24 reports that Bosa leader Mmusi Maimane is introducing legislation that would prevent prospective employers from asking jobseekers for their payslips to determine remuneration packages based on previous employment. In addition, should the party’s Fair Pay Bill be passed, jobseekers would be allowed to discuss a remuneration offer with other colleagues in a company to ensure that the offer is fair and equitable. It also proposes that every job advertisement be legally required to disclose a salary range. Maimane presented the proposed legislation at a press conference on Thursday.   “The odds are stacked in favour of the employer, who holds all the power in determining salary, often based on a candidate’s previous pay, or on lower pay than the individual is entitled to. This imbalance perpetuates historical inequalities. Young people who are the first in their families to work white-collar jobs, black professionals and women often start their careers earning less than their counterparts,” Maimane explained. He went on to say: “This is not a competence issue, rather it is due to the system that allows employers to exploit previous underpayment and first-time job application. When your salary history is used against you, past disadvantage becomes future injustice.”   Maimane said the Bill’s aim was to create a fair and transparent space for jobseekers to find jobs that paid them their worth. It is pinned on four key issues and will seek to amend the Employment Equity Act.

Read the full original of the report in the above regard by Jason Felix at News24 (subscription / trial registration required). Read too, Bosa proposes bill to ensure fair pay for employees, at BusinessLive (subscriber access only)

Other internet posting(s) in this news category

  • Spaan: The new recruitment platform restoring trust in South Africa's job market, at IOL News


BASIC EDUCATION / TEACHING

Sadtu in KZN meets with education department over exams, schools' financial struggles

EWN reports that the SA Democratic Teachers’ Union (Sadtu) was scheduled to meet on Thursday with the KwaZulu-Natal (KZN) Department of Education to discuss issues relating to examinations. According to the union, many schools have not received their financial allocations in line with norms and standards, which has resulted in schools being unable to secure resources. Some schools have apparently warned that they cannot prepare for exams until the issues are solved. Sadtu’s KZN provincial secretary, Nomarashiya Caluza, explained: “We feel that the Department of Education has been hiding and not providing proper guidance and directions to schools; there must be uniformity on how schools approach examinations.” She indicated that, while the union wanted exams to continue, resources remained a critical factor. “We want our kids to write, but there must be commitment from the side of the department on providing the resources to administer those exams, failing which there must be a common approach regarding the examinations by all schools as per the guidance that must come from the head office or the head of department,” Caluza indicated

Read the full original of the report in the above regard by Nhlanhla Mabaso at EWN


ROAD ACCIDENT FUND

Suspended RAF CEO Collins Letsoalo held dual roles and so received larger bonus

IOL News reports that MPs heard on Wednesday that suspended Road Accident Fund (RAF) CEO Collins Letsoalo also held the position of Chief Claims Officer while he was at the helm of the entity and received an increased bonus for the additional duties. Letsoalo occupied dual roles for two years while the RAF was saddled with a backlog of claims. Briefing the Transport Portfolio Committee, acting CEO Phathutshedzo Lukhwareni told the committee that the entity had 17% vacancy rate. Asked whether the board had been aware that Letsoalo had also occupied the claims position, Lukhwareni said that when Letsoalo occupied that position simultaneously as CEO they were told that he was the only person with the competency, because the RAF was a complex organisation.   “It was never put before the board to approve. We had concerns around it. We were given assurances that there are checks and balances and nothing irregular was happening in that particular environment," she stated. Letsoalo, who was at the meeting, confirmed that he held the claims officer position in an acting capacity while he was the CEO. “The board was aware absolutely,” he claimed.   Letsoalo said his reward for holding two positions came in the form of his bonus.

Read the full original of the report in the above regard by Mayibongwe Maqhina at IOL News. Read too, RAF acting CEO defends delaying in suspending senior official, at IOL News


ALLEGED COP CRIME

Mashatile avoids answering questions about eight VIP protection service members cleared by SAPS

The Citizen reports that in parliament on Thursday, Deputy President Paul Mashatile assiduously avoided answering questions linked to the eight SA Police Service (SAPS) members of his VIP presidential protection unit caught on camera assaulting civilians on the N1 highway in July 2023. In the widely circulated video, the VIP police officers – brandishing rifles and pistols – are seen jumping out of a BMW X5 and attacking the occupants of a VW Polo. But, they were found not guilty of all disciplinary charges by the SAPS after an internal investigation. They are still facing criminal charges in the Randburg Magistrate’s Court. Asked by MK Party MP John Hlophe whether he had ever attempted to schedule a meeting with the victim, Mashatile said he didn’t want to interfere with the legal process. “I have not met with the victim because the matter is sub judice,” Mashatile explained. Mashatile’s answers to the rest of the questions surrounding this topic carried the same theme, namely ‘let us allow the justice process to complete, and then we’ll talk’. This was also the case when he was asked if SAPS was prepared to make the record of the internal investigation, decisions and reasons for acquittal available.   Another MP objected to Mashatile avoiding questions and hiding behind the matter being sub judice. Annelie Lotriet, deputy speaker of the National Assembly, came to Mashatile’s rescue.

Read the full original of the report in the above regard by Lesego Seokwang at The Citizen. Read too, Paul Mashatile dodges questions on eight bodyguards' acquittal, at TimesLIVE

Mashatile welcomes former bodyguards’ internal acquittal, but affirms his opposition to police brutality’

News24 reports that Deputy President Paul Mashatile has welcomed the internal acquittal of eight of his former VIP protection officers, who were accused of attacking a motorist on the N1, after a police disciplinary hearing. On Thursday, Mashatile appeared before MPs in the National Assembly, where he was questioned about the 2023 attack. He stated:   “In this regard, I welcome the outcome of the police disciplinary inquiry that has acquitted the eight members of the presidential protection services.”   Mashatile went on to state: “I must also reiterate that I am against police brutality, including any form of violence directed at members of our communities. Violence against members of the community, especially by those entrusted with upholding the law, is unacceptable and contrary to our values. My attitude was to allow all the processes to be concluded. The matter is before the courts, and yes, I think once that process is over, we’ll look at it, but I must confirm to the House that I will never condone any brutality.” Last month, police spokesperson Brigadier Athlenda Mathe said national police commissioner General Fannie Masemola would study the disciplinary chairperson’s report and consult the police’s legal services. Portfolio Committee on Police chairperson Ian Cameron indicated that he would write to Police Minister Senzo Mchunu and Masemola to demand an explanation of the internal outcome.

Read the full original of the report in the above regard by Jason Felix at News24 (subscription / trial registration required)

Three Durban cops found guilty of soliciting R200,000 bribe to halt arrests in a murder case

News24 reports that three Durban police officers have been convicted of corruption after they solicited a R200,000 bribe to prevent arrests in a high-profile murder investigation. The three warrant officers, Madoda Mduduzi Mhlongo, Siyabonga Herbert Mabhida and Prince Ntsikelelo Shezi were part of the Provincial Taxi Violence Unit. Hawks spokesperson Colonel Katlego Mogale reported that they were found guilty by the Durban Specialised Commercial Crime Court on Wednesday for soliciting and accepting a bribe of R200,000 in exchange for not arresting two suspects in a murder investigation on 13 March 2019. The officers approached the suspects, claiming they were under pressure from the Director of Public Prosecutions to apprehend them in the ongoing case. “The officers demanded a cash payment of R200,000 to prevent the arrests and warned that the suspects would be taken into custody that night if the money was not paid. Later that evening, the officers followed through on their threat by visiting one of the suspects’ residences,” Mogale reported. The incident was reported to the Hawks’ Serious Corruption Investigation unit and a sting operation resulted in the arrest of all three officers on 29 March 2019, immediately after they accepted the bribe. The trio will remain in custody while they await sentencing.

Read the full original of the report in the above regard by Sakhiseni Nxumalo at News24 (subscription / trial registration required)


OTHER REPORTS OF INTEREST

  • Rea Vaya blames cable theft for glitch resulting in double charges for trips, which will be reimbursed, at SowetanLive
  • From poor farmworker to lifeline for vulnerable Western Cape residents, activist Billy Claasen’s tireless mission, at Daily Maverick
  • Digital Shadows: Unveiling the crisis of forced labour in the tech age, at Mail & Guardian
  • Is South Africa’s unemployment rate really only 10%? at The Citizen
  • Opinion by Duma Gqubule: Let’s not minimise the pain of the poor with ‘voodoo statistics’, at BusinessLive
  • eThekwini city manager defends decisions amid court rulings and financial scrutiny, at IOL News
  • South Africa's mining production decreased 7.7% y/y in April, at Mining Weekly
  • SA produces 80% less gold than it did 35 years ago, at Engineering News

 


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