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


EMPLOYMENT AND JOB LOSS TRENDS

SA’s motor sector hit by job losses and business shutdowns

Reuters reports that low domestic sales of locally made cars, an influx of imports and low local content have led to 12 company closures and more than 4,000 job losses in the SA motor industry over two years.   Department of Trade, Industry and Competition Minister Parks Tau told delegates at an auto parts conference on Wednesday that sales of 515,850 locally produced cars last year fell far below the SA Automotive Masterplan 2035 target of 784,509. With about 64% of vehicles sold in SA being imports, Parks added that localization – the level of local assembly, labour and components – remained stagnant at 39%, well short of the 60% target. SA’s automotive industry employs 115,000 people directly, with more than 80,000 in component manufacturing alone. With the US tariffs on cars and parts that were imposed from April, jobs are under threat as some companies are set to lose contracts in America. SA on Tuesday submitted a revised offer for a trade deal with Washington in an effort to lower the 30% tariff US President Donald Trump imposed last week. To help respond to the challenges in the industry, an incentive scheme for local manufacturing now included electric vehicles and associated components, Tau said. “Localisation is not merely policy compliance, it is existential.   A 5% increase in local content would unlock R30bn in new procurement, dwarfing the R4.4bn US export market,” Tau said.

Read the full original of the report in the above regard at BusinessLive. Read too, Automotive industry unprepared for double whammy of US tariffs and EU carbon tax, at City Press (subscription / trial registration required). And also, Government mulls big changes to auto subsidies, as BMW boss warns of existential crisis in SA, at News24 (subscription / trial registration required)

SA ‘becoming a construction site’ as sector adds 55,000 jobs year-on-year

TimesLIVE reports that according to Department of Public Works and Infrastructure (DPWI) Minister Dean Macpherson, SA is “becoming a construction site” with the industry continuing to create thousands of jobs despite the rising unemployment rate. “The construction sector added 20,000 jobs in the second quarter and 55,000 jobs year-on-year – a 4.6% increase. This is proof that we are turbocharging the construction sector that drives jobs and growth in South Africa,” Macpherson indicated.   He made the remarks on an X post after the release of Stats SA's Quarterly Labour Force Survey (QLFS) for the second quarter of 2025, which showed mixed results across industries.   According to Stats SA, the number of people employed in the formal sector increased by 34,000 in Q2, while the informal sector employment decreased by 19,000 over the same period. The largest industry increases in employment were recorded in trade (88,000), private households (28,000) and construction (20,000). But, the report also showed unemployment increased despite job gains in several industries. The official unemployment rate rose from 31.9% to 33.3% in Q2. Stats SA noted that six of 10 industries shed jobs in the second quarter, underscoring the fragility of SA’s labour market.

Read the full original of the report in the above regard by Modiegi Mashamaite at TimesLIVE

Youth unemployment remains very high as SA’s job market struggles

Cape Argus reports that according to the latest data from Stats SA, the official unemployment rate climbed to 33.2% in the second quarter of 2025, an increase from 32.9% in the previous quarter. This rise was the second consecutive quarterly uptick in the unemployment rate.   The number of unemployed individuals grew by 140,000 to reach 8.4 million, while employment saw a modest increase of 19,000, bringing the total number of employed persons to 16.8 million. The labour force expanded by 159,000, or 0.6%, during this period.   Despite the rise in the official unemployment rate, the expanded definition, which includes discouraged job seekers, showed a slight improvement. The expanded unemployment rate decreased by 0.2 percentage points to 42.9% in quarter-on-quarter. Youth unemployment remained a critical issue, with the number of unemployed individuals aged 15 to 34 having increased by 39,000 to 4.9 million. Despite a rise in employed youth by 31,000 to 5.7 million, the youth unemployment rate remained unchanged at 46.1%.

Read the full original of the report in the above regard by Nicola Mawson at Cape Argus

Eastern Cape created 89,000 new jobs in second quarter despite economic headwinds

SABC News reports that the Eastern Cape government has noted that the recently released Quarterly Labour Survey Results for the second quarter show that the province managed to create 89,000 new jobs during the period under review. Sectors which contributed to this increase included trade, agriculture, construction and private households such as domestic work. While this has been welcomed, the unemployment rate increased from 39.3% to 39.5%. Spokesperson for the provincial government, Khuselwa Rantjie said they remained committed to finding other job opportunities for the people of the province.   “The government’s intervention includes job creation initiatives, skills development programs, infrastructure projects, and private sector partnerships. All is aimed at stimulating labor-absorptive economic growth and reducing unemployment, especially among our youth,” Rantjie advised.   He added: “Over the current term, the government’s goal is to increase infrastructure investment, intensify efforts to create a conducive environment for increased investment and job creation, trade and tourism, re-industrialisation, localisation and beneficiation and improved competitiveness through structural reforms.”

Read the original of the short report in the above regard at SABC News. Read too, Big jump in Nelson Mandela Bay unemployment from 22.3% to 26.4% in second quarter, at The Herald (subscriber access only)

PSA proposes steps for government to take to tackle unemployment crisis

TimesLIVE reports that according to the Public Servants Association (PSA), SA’s rising unemployment is a crisis that demands co-ordinated, bold and inclusive action. This after the latest unemployment figures released this week by Stats SA showed a rise in the official unemployment rate to 33.2% in the second quarter of 2025, up from 32.9% in the previous quarter. “This situation underscores the persistent structural challenges facing the country’s labour market,” the PSA noted. The trade union pointed out that while employment gains were recorded in sectors such as construction, mining and private households, these were overshadowed by significant job losses in finance, agriculture, community and social services, and transport. The PSA was particularly alarmed by the decline in employment in the financial services sector, traditionally a key driver of economic growth and job creation. The union noted the disturbing statistics regarding youth unemployment and the “not in employment, education or training (NEET)” rate, which remained above 43% for people aged 15-34. “This reflects a growing disengagement of young people from the labour market and education system, posing long-term risks to social stability and economic development,” the union warned. It urged the government to accelerate labour-intensive public infrastructure projects to absorb unemployed youth and low-skilled workers. Support was also required for small and medium enterprises through targeted funding and regulatory reform to stimulate job creation. “It is critical to strengthen vocational training and skills development programmes, particularly in rural and underserved communities,” the PSA advised, adding that there was also a need to ensure transparency and accountability in the implementation of employment stimulus packages.

Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE

Other internet posting(s) in this news category

  • Unemployment could get even worse in third quarter due to US tariffs, at The Citizen
  • Mahindra's new vehicle assembly plant set to boost KZN's economy, at The Mercury


BASIC INCOME GRANT

Calls grow for basic income grant as jobs bloodbath continues

Following the release of Stats SA’s latest Quarterly Labour Force Survey on Tuesday, which showed that the unemployment rate has risen to 33.2%, with 8.4 million people jobless and nearly one in two young people unable to find work, advocacy group Black Sash called for the urgent introduction of a permanent Basic Income Grant (BIG) for unemployed South Africans. "Behind these figures are millions of households facing hunger, deepening poverty and the daily struggle to survive," Black Sash pointed out. The organization reiterated its call for the urgent introduction of permanent BIG support for all those aged 18 to 59 with little or no income, set at a level that at least met the food poverty line and adjusted annually to inflation.   However, while Black Sash and civil society continue to push for the urgent BIS grant, government progress remains slow amid growing concerns over affordability. Cabinet has yet to approve the draft BIG policy, citing the need to ensure the grant was financially sustainable and linked to economic opportunities for recipients. General secretary of the SA Federation of Trade Unions (Saftu), Zwelinzima Vavi, said the federation was deeply alarmed at the latest figures. He said the results confirmed that the “country remained trapped in a jobs bloodbath”, and was now facing an even greater threat from external economic aggression.

Read reports in the above regard by Mthobisi Nozulela at IOL Business and Jeanette Chabalala & Koena Mashale at SowetanLive


OCCUPATIONAL HEALTH & SAFETY

One driver dead, another driver and passerby injured after e-hailing vehicles torched at Maponya Mall

The Citizen reports that one person was killed and two others injured after e-hailing vehicles were attacked by unknown suspects at Maponya Mall in Pimville, Soweto, on Wednesday evening. Police spokesperson Colonel Dimakatso Nevhuhulwi reported: “According to information at hand, an e-hailing vehicle was seen stopping at the entrance when about four men approached the driver and shot at him before torching the vehicle. Another vehicle, which was nearby, was shot at, and the driver managed to flee, and his vehicle was also torched. It was later discovered that the [second] driver and another passerby sustained gunshot wounds and were taken to the hospital.” The driver who was first shot at sustained fatal injuries. A case of murder, attempted murder with two counts, and arson has been opened for further investigations. “The SAPS and JMPD are on the scene to monitor the situation which is suspected to be taxi violence related,” Nevhuhulwi said.

Read the full original of the report in the above regard by Faizel Patel at The Citizen. Read too, MEC slams Soweto taxi violence as ‘senseless’ and a threat to safety, at SABC News

Other internet posting(s) in this news category

  • Germiston Home Affairs office closed after arson attack, but mobile units open, at News24 (subscription / trial registration required)
  • Minibus taxi driver dies in collision with Golden Arrow bus in Philippi East, at Cape Argus
  • No lights, uniforms or proper boots: Concerns raised about state of Mabopane fire station in Tshwane, at The Citizen
  • Twee vermeende polisiemoordenaars in KZN doodgeskiet, by Maroela Media


MINING SECTOR

Calls growing for the legalisation of artisanal mining by communities around mining towns

EWN reports that there are growing calls for the legalisation of artisanal mining by communities living in and around mining towns. On Wednesday, lobby group Mining Affected Communities United in Action (MACUA) held a coordinated march across five provinces to the offices of the Department of Mineral Resources. They submitted their inputs to the draft Mineral Resources Development Bill.   Among other issues, the bill aims to formalise artisanal and small-scale mining through a licensing regime.   MACUA believes formalising artisanal mining will assist many people living near mining towns. The group’s Sabelo Mnguni said: "When it comes to mining, once mining ceases to operate, we are left without an economy, and the only economy in the community is mining, whether formal or informal. So in the absence of formal employment, the informal economy becomes the order of the day, which includes mining, and informal mining becomes the order of the day.” Mnguni also argued that the formalisation of artisanal mining would assist in dealing with illegal mining and its accompanied dangers.

Read the original of the short report in the above regard by Thabiso Goba at EWN. Read too, MACUA criticised for targeting illegal miners not buyers of illicit materials, at EWN. And also, Macua demands urgent withdrawal of the Mineral Resources Development Bill, at IOL News


JOB RECOMMENDATION REVOKED

Failure to disclose pending criminal case cost applicant appointment to Eastern Cape court post

Cape Times writes that the failure to disclose a pending criminal case when asked to do so as part of a job application can have dire consequences, as an applicant who applied for the position of a court manager discovered. Siphephelo Luthuli applied for two posts in the Eastern Cape as court manager. He was recommended as he was deemed the best candidate. He denied on his application form that he had a criminal record or any pending cases against him. But it was later discovered that there was a pending case relating to allegedly driving under the influence of alcohol. The Office of the Chief Justice (OCJ) then withdrew its recommendation that Luthuli get the job.   Luthuli took the matter on review before an arbitrator, who ruled in his favour. The OCJ then took the matter on review to the Gqeberha Labour Court, which said “it boggles this court’s mind” that the arbitrator could find, on the evidence before him, that the OCJ’s decision to revoke the recommendation that Luthuli be appointed was capricious and irrational and amounted to an unfair labour practice. The judge said it seemed that the arbitrator did not understand what it mean to be capricious and irrational. The Labour Court ruled in favour of the OCJ and said it was within its rights to revoke its recommendation that Luthuli should be appointed as court manager.

Read the full original of the report in the above regard by Zelda Venter at Cape Times


DEATH BENEFIT ALLOCATIONS

ConCourt rules that dependency at date of death and not later crucial for allocation of pension fund death benefits

IOL News reports that in a groundbreaking judgment regarding the distribution of death benefits, the Constitutional Court (ConCourt) last week held that dependency must be assessed based on facts at the date of the death of a pension fund’s member and not at the time distribution decisions were made. In this case, Tshifhiwa Mutsila’s husband died in 2012 of work-related injuries. She was left to care for herself and their five children. She filed a claim with his pension fund, the Municipal Gratuity Fund, claiming the death benefit of R1.6 million. However, she discovered there was a competing claim from another woman, Dipuo Masete, who said she was the customary wife of the deceased and that they had two children. The fund recognised both the applicant and Masete and their respective children as dependents of the deceased. The fund allocated 47.5% of the benefits to Mutsila and 52.5% to Masete and her children.   A complaint was lodged with the Pension Funds Adjudicator who found that the fund had not conducted a proper investigation as required by the Act to identify the beneficiaries of the deceased and set aside the fund’s decision regarding the allocation of the death benefit. A number of court cases then followed. The matter eventually went to the ConCourt, which held that a proper investigation to determine the dependency of Masete and her children had not been not carried out by the fund. It ruled that the extent of factual dependency was crucial when a fund made an equitable allocation and distribution. It further held that the date of death was to be used to determine dependency. However, that did not mean that changed circumstances could not be taken into account when the equitable allocation was made. If, at the distribution stage, there were changed circumstances that altered the needs of the dependent, the fund could have regard to these circumstances when determining an equitable distribution. The matter was referred back to the fund to conduct its investigation afresh and to consider who the dependents of the deceased were at the time of his death.

Read the full original of the report in the above regard by Zelda Venter at IOL News

Pension Funds Adjudicator emphasises that in determining equitable death benefit distribution, extent of dependence must be investigated

IOL News reports that the decision to allocate a large portion of a death benefit to the financially independent son of the deceased, while his unemployed life partner and her children only received a fraction of the benefit, was set aside by the Pension Funds Adjudicator.   The adjudicator, Muvhango Lukhaimane, recently ordered the Private Security Sector Provident Fund to consider the financial dependency of the complainant (the life partner of the deceased) and her children. Following the deceased's passing, a death benefit of R254,609.51 became payable to his beneficiaries. The fund allocated 10% to his unemployed partner, 23% to the deceased’s son, who is employed, 25% to his daughter, who is a scholar, 14% to a stepson who is a scholar, 14% to a toddler stepdaughter, and 14% to a toddler stepson. The complainant objected to the fund’s allocation of the death benefit as the deceased contributed to raising and supporting her four children, whose support was now unavailable. In her determination, Lukhaimane said the fact that a person qualified as a legal or factual dependant did not automatically give them the right to receive a portion of a death benefit. The deciding factor was financial dependency. Lukhaimane said it was the board’s responsibility when dealing with the payment of death benefits to conduct a thorough investigation to determine the beneficiaries, and thereafter, decide on an equitable distribution. “In the present matter, the marital circumstances of the complainant were not clear,” she noted. The allocation of the death benefit was set aside, and the fund was ordered to consider the financial circumstances and extent of dependency of the complainant and her children on the deceased.

Read the full original of the report in the above regard by Zelda Venter at IOL News


ALLEGED CORRUPTION / FRAUD

Deputy police commissioner’s interim interdict against whistle-blower overturned

IOL News reports that Deputy National Police Commissioner Lt-Gen Shadrack Sibiya’s interim interdict barring former high-ranking police member Patricia Morgan-Mashale from publishing statements on social media accusing him of corruption has been overturned. Sibiya turned to the Bloemfontein High Court for a final interdict after he had obtained the interim interdict against her in November last year. Morgan-Mashale defended her actions by stating that her posts regarding Sibiya were the truth, in the public interest, and what she had said about him was, in any event, already public knowledge. The court, in discharging the interim interdict against her, said Sibiya had failed to disprove these defences conclusively. The court pointed out that he had an alternative course of action, as he could file a summons against Morgan-Mashale for damages and then prove defamation. Morgan-Mashale, who describes herself as a whistle-blower, said she was presently staying in undisclosed premises. She was previously employed as an administrative clerk in the SAPS, but was dismissed. Morgan-Mashale’s social media postings included allegations that Sibiya had tampered with the crime scene where the late soccer star Senzo Meyiwa was murdered. She also posted allegations that Sibiya had received bribery money from diamond dealer Louis Liebenberg.

Read the full original of the report in the above regard by Zelda Venter at IOL News

Other internet posting(s) in this news category

  • Crime Intelligence boss fights to amend bail conditions so he can return to work, at News24 (subscription / trial registration required)


OTHER REPORTS OF INTEREST

  • Indian brand Tata Motors reveals new SA MD and Motus distribution, at BusinessLive
  • Coca-Cola appoints new head of Africa unit, at News24 (subscription / trial registration required)
  • Solidariteit binne weke in Washington, by Maroela Media
  • Senior transport official accused of falsifying qualification, at DailyDispatch (subscriber access only)
  • Walter Sisulu University VC's contract won't be renewed beyond March next year, says council, at TimesLIVE
  • Suspended Nelson Mandela Bay metro manager paid R4.2 million to sit at home, at Newsday
  • Here’s how much National Treasury has spent on consultants in two years, at The Citizen
  • Brian Molefe's legal troubles deepen as AIG sues for R4.4m over defence costs, at IOL News

 


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