In our Wednesday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
|
Latest QES survey shows SA lost 80,000 jobs quarter-on-quarter and 230,000 jobs year-on-year BusinessTech reports that the latest data from Stats SA’s Quarterly Employment Survey (QES) shows that formal employment in the country is under severe strain, particularly in the community services sector. Formal employment in SA in the second quarter of 2025 dropped by 80,000 jobs quarter-on-quarter and by 229,000 jobs year-on-year. The QES is an employer survey that tracks the number of formal jobs in the country, excluding agriculture, hunting, forestry and fishing and private households. Total employment decreased by 80,000 or 0.8% quarter-on-quarter, from 10,589,000 in March 2025 to 10,509,000 in June 2025. This was largely due to a decrease in the following industries: community services (-53,000), trade (-10,000), manufacturing (-9,000), construction (-7,000), transport (-2,000) and business services (-2,000). However, there were increases in mining (+2,000) and electricity (+1,000). Total employment decreased by 229,000 or 2.1% year-on-year between June 2024 and June 2025, down from 10,738,000 last year. Year-on-year job losses were mostly recorded in community services (-225,000), followed by manufacturing (-18,000), mining (-6,000), transport (-3,000) and trade (-1,000). Job gains year-on-year were recorded in electricity (+1,000) and business services (+23,000), with a flat result for construction. Read the full original of the report in the above regard at BusinessTech. Read too, Stats SA reports 80,000 jobs lost in Q2, at TimesLIVE Survey shows higher earnings both quarter-on-quarter and year-on-year BusinessTech reports that while SA’s job market took a hit in the second quarter of 2025, with total employment falling by 80,000 jobs quarter-on-quarter, those who remained employed and on payrolls saw higher earnings. The latest data from Stats SA’s Quarterly Employment Survey (QES) released on Tuesday shows that the average monthly earnings paid to employees increased by 3.4% from R28,322 in February 2025 to R29,290 in May 2025. Stats SA also noted that year-on-year average monthly earnings paid to employees increased by 6.5% between May 2024 and May 2025. Gross earnings increased by R2.2 billion or 0.2% from R984.7 billion in March 2025 to R986.8 billion in June 2025. This was largely due to an increases in community services, trade, construction, transport, mining, electricity and manufacturing – despite the jobs shed. However, there was a decrease in earnings the business services industry. Basic salary/wages increased by 2.5% over the quarter, while bonuses decreased by 25.4%. This reflects the expected change in seasonal bonus pay. Overtime, however, also declined by 1.0% over the period. Year-on-year, basic earnings paid increase by 3.6%, in line with inflation, while bonuses paid increased by 5.1% versus the same time last year. Overtime paid decreased by 4.5%. Read the full original of the report in the above regard at BusinessTech (scroll down)
Volkswagen puts brakes on automation to preserve jobs in SA BL Premium reports that Volkswagen Group Africa chair and MD Martina Biene says the group has taken a deliberate decision not to automate certain areas of its functions, even in instances where the car manufacturer is in the position to deploy robots, as a means of preserving jobs in SA. “We could have already automated much more than we have done. If you look at our German plant and our plant [in SA], there is much more manual labour. It was a deliberate decision to do so [to protect jobs],” Biene advised. She went on to note: “Of course, it must remain a business case. Labour costs are good in SA. We also want to play it [automating processes] responsibly. I don’t see AI replacing manufacturing anytime soon. We are embracing AI. It does a lot of good things.” The group employs about 4,000 people in SA. Biene said it was not always easy to direct investments to SA. “When I pitch an [investment] idea, my biggest competition is not the other eight manufacturers in SA. The biggest competition is, first of all, internally, with 110 other Volkswagen plants around the world, and they all have ideas on where the group should invest,” Biene explained. She added that the competition landscape has grown: “We now compete with cars coming from India and China and it sometimes feels like the huge advantage from the past is not there anymore.” Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive (subscriber access only) More than 3,000 jobs saved in Tiger Brands’ fruit canning business exit BL Premium reports that Tiger Brands has announced that Langeberg Foods will resume operations at the Ashton fruit canning factory on 1 October, marking the end of a five-year struggle to secure the future of SA’s largest deciduous fruit processor. The deal saves more than 3,000 permanent and seasonal jobs and ensures stability for a key export industry. The factory, previously owned by Tiger Brands, has been taken over by a consortium led by the Ashton Fruit Producers Agricultural Co-operative, supported by Norwegian development finance institution Norfund. A 10% stake has been allocated to the newly established Langeberg Community Trust, funded with R150m from Tiger Brands, which will channel dividends back into socioeconomic projects in the region. The facility is a cornerstone of the Breede River Valley economy. Tiger Brands said the trust underpinned its commitment to distributing social and economic benefits to the community of Langeberg long after the company’s exit. As part of the transaction, Tiger Brands has also committed to completing an effluent-treatment plant upgrade with a further investment of R31m. The Competition Commission approved the sale earlier this year. As part of the agreement, no retrenchments will take place for at least three years, and the new owners have committed to fresh capital investment. Read the full original of the report in the above regard by Nompilo Goba at BusinessLive (subscriber access only)
Discovery medical scheme defers 2026 contribution increase for three months BL Premium reports that in a move not seen since the Covid-19 pandemic, Discovery Health Medical Scheme (DHMS) will defer its 2026 contribution increase for three months, so returning some of its unexpectedly high reserves to members. DHMS is SA’s biggest open medical scheme, with more than 2.7-million beneficiaries. Thanks in part to better-than-anticipated returns on its investments, it expects to end the year with a solvency ratio of 31.5%, significantly higher than the statutory requirement of 25%. DHMS will return R1.5bn to members by delaying next year’s hike to 1 April when contributions will increase by a weighted average of 7.2%. Medical schemes usually implement annual contribution increases that come into effect on 1 January. Kotze emphasised that DHMS’s 2026 contribution increases, benefit changes and the launch of new plans aimed at young families were subject to approval by the Council for Medical Schemes (CMS). The CMS has issued guidance to the industry, advising schemes to cap their contribution increases at 3.3% plus “reasonable utilisation estimates”. Medical schemes are not bound by the guidance. DHMS’s 7.2% contribution increase comprises an anticipated increase in medical inflation broadly in line with consumer price inflation – which the SA Reserve Bank estimates will be 4.2% for 2026 – and a 3%-4% increase in utilisation prices, Kotze advised. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only). Read too, Discovery members face premium increases of almost 8% in 2026 – but they get a reprieve until April, at News24 (subscription / trial registration required) Medical schemes to hike 2026 premiums way above inflation – as in the past News24 reports that medical aid premiums will increase up to four times the current inflation rate of 3.3%, according to information by schemes which had released their premiums and benefits for 2026 by Tuesday. Earlier this year, the Council for Medical Schemes (CMS) recommended an inflation-related increase of 3.3% “plus reasonable utilisation estimates” for 2026 premiums. According to a media release by Medshield, about 72% of its members will pay 7% more as of 1 January, while the weighted average will be 7.5%. The highest increase announced will be for MediCore, at 9.9%. Medshield has approximately 250,000 beneficiaries. The second-biggest open scheme, Bonitas, which covers about 730,000 lives, announced a weighted average increase of 8.8% last week, with fund increases varying from 6.9% to 11.3%. Bestmed, which covers about 220,000 lives, will be increasing its premiums by a weighted average of 6.8%, with some options as low as 5.1% and the highest 7.8%. Several medical schemes have improved preventative healthcare benefits, including expanding access to cancer screening and PSA blood tests that detect prostate cancer. Read the full original of the report in the above regard by Hanlie Nordejee at News24 (subscription / trial registration required)
Price of petrol goes up, diesel down from Wednesday The Citizen reports that motorists will pay slightly more for petrol but less for diesel at the pumps from Wednesday. The Department of Mineral Resources and Energy (DMRE) announced that the price of 93-octane will increase by 1 cent per litre, while 95-octane petrol will cost 8 cents per litre more. The price of diesel (0.05% sulphur) will decrease by 10 cents per litre, while diesel with 0.005% sulphur goes down by 8 cents per litre. Illuminating paraffin will cost 11 cents less per litre, while the price of LP gas will decrease by 17 cents/kg. When the fuel price adjustments kick in, a litre of 93 unleaded petrol will cost R21.48 per litre, while 95 unleaded will be R21.63. The wholesale price of 0.05% (500 PPM) diesel will decrease to R19.34 per litre, and 0.005% (50 PPM) will cost R19.39. DMRE spokesperson Robert Maake said several factors, including international petroleum product prices and the rand/US dollar exchange rate, contributed to the increase in petrol and the decrease in diesel prices. DMRE Minister Gwede Mantashe also approved a 6.1 c/l increase (from 299.5c/l to 305.6c/l) in the price structures of petrol to accommodate wage increase for forecourt employees, in line with the Motor Industry Bargaining Council (MIBCO) multi-year Wage Settlement Agreement signed on the 23rd of August 2025. This increase will be implemented from 1 October 2025. Read the full original of the report in the above regard by Faizel Patel at Tghe Citizen
Man arrested after allegedly shooting and wounding a police officer in Eastern Cape The Citizen reports that police have made a breakthrough and arrested a 30-year-old man in connection with the attempted murder of a police officer in the Eastern Cape. Members from Algoa Park SASaps were conducting routine patrols in Jack Road, Missionvale, on Sunday evening when an unknown man emerged from between houses and opened fire on a patrol vehicle. Police spokesperson Warrant Officer Majola Nkohli said a suspect was arrested following a positive tip-off from the public. The suspect was traced and located in the open space near the Nelson Mandela University (Missionvale Campus). The victim is still in the hospital. When the suspect was handcuffed he was found to be in possession of an unlicensed 9mm pistol with ammunition. He is due to appear in the New Brighton Magistrate’s Court on Wednesday on charges ranging from attempted murder to possession of an unlicensed firearm and ammunition. At least 27 police officers have been killed in the past year, compared to 39 officers killed in 2024. Read the full original of the report in the above regard by Faizel Patel at The Citizen Other internet posting(s) in this news category
No performance bonus for Woolworths CEO, but he still gets nearly R80m for a year’s work BL Premium reports that Woolworths CEO Roy Bagattini missed out on a performance bonus pay cheque for the 2025 financial year after the retailer failed to meet the financial and strategic targets required to trigger the incentive, which in the previous financial year had amounted to R4.8m. Nonetheless, his total remuneration for the year came in at nearly R80m after being inflated by the final instalment of a one-off sign-on share allocation granted when he joined the company. Remuneration committee chair Clive Thomson said that the allocation, worth R38.8m, matured this year. “The CEO received a sign-on share allocation as a contractually agreed component of the overall package required to attract an experienced, international business leader to take over the helm of the group in January 2020,” Thomson explained. Excluding the sign-on shares, Bagattini’s remuneration dropped almost 27% to R41m, reflecting the group’s weaker performance. Meanwhile, the star of the group, the food division, posted sales growth of 11% and secured its CEO, Sam Ngumeni, a performance bonus of more than R8m – double his 2024 financial year payout. Woolworths has also set a minimum wage of R45 per hour, translating to R93,600 a year for full-time store employees. Read the full original of the report in the above regard by BusinessLive (subscriber access only). Read too, Woolworths CEO’s sign-on bonus helps boost his pay to almost R80m despite performance slip, at News24 (subscription / trial registration required) The average Eskom employee gets paid R870,000 per year Newsday reports that Eskom’s latest financial statements revealed that the average employee costs Eskom R870,000 per year, significantly higher than the average for most other companies in SA. Eskom’s annual financial statements for the year ended 31 March 2024 also showed that the company’s headcount increased to 40,625 at the end of the financial year. During the 2024 financial year, Eskom’s direct costs of employment increased to R35.355 billion. This equates to R870,277 per employee per year. What is said to be particularly concerning is that Eskom’s employee costs have rapidly increased over the last twenty years. According to analysts, Eskom has a relatively large workforce, with salaries that are higher than the industry average, which has added to its financial pressures. A World Bank policy research paper found that in 2014, Eskom had the largest workforce out of the 39 sub-Saharan African countries at 41,787. The World Bank estimated that Eskom required a workforce of only 14,244 people to serve its customers. It proposed one employee for every 413 electricity customers. Former Eskom Chief Executive Andre de Ruyter noted that high employee costs were one of the reasons why electricity prices in SA have increased rapidly over the last two decades. According to De Ruyter, the average salary was indeed high and that there was room to decrease employee costs within the power utility. Read the full original of the report in the above regard at Newsday
Almost 500,000 cash-strapped employees have dipped into their two-pot savings for a second time The Citizen reports that nearly 500,000 employees across the country dipped for a second time into their two-pot retirement savings when the new tax season started this year. So far about R22bn has been withdrawn by employees from various pension funds since the regime kicked in nationally in September last year. Since then, there have been over 1,2-million applications to withdraw, of which 478,000 were repeat applications when the new tax year commenced in March. Liberty Holdings said about 50,000 members from its 224,000 membership have withdrawn for the second time from the two-pot savings. A majority of the withdrawals were made by mid-career members between the ages of 31 to 51 and men accounted for 54%. About 37% of the payouts went to members in their 40s while 38% was paid to members in their 30s. At least 16% of the claims were declined due to the claimed value amount exceeding available balances, insufficient balances or duplicate claims received. The average gross value of the claims paid out amounted to R11,500. Data from credit bureaus and SARS showed that the money went to settling debts, paying school fees and putting down deposits for second-hand car purchases. Liberty's Fahiem Esack said it was important for people to first speak with a financial adviser before making a withdrawal that could impact on their future after retirement. Read the full original of the report in the above regard by Lindile Sifile at SowetanLive
Nehawu applauds Tembisa hospital graft probe, laments R2bn lost SABC News reports that the National Education, Health and Allied Workers’ Union (Nehawu) has welcomed the Special Investigating Unit’s (SIU’s) interim report into tender fraud and corruption at Tembisa Hospital. The report has laid bare the looting of some R2 billion in state resources through corruption, fraud, maladministration, as well as collusion and bid rigging. Nehawu national spokesperson Lwazi Nkolonzi lamented that the funds could have supported health care workers during the Covid-19 pandemic by providing essential resources. He commented: “It’s not only in Tembisa, but it’s across all the departments. If you actually were to do a thorough investigation, you would actually see that these actually expose the weaknesses, in terms of financial management, that there is no proper financial management. There are no systems in place to ensure that such corruption does not take place. It’s really unacceptable that close to R2 billion can be looted, in such a short space of time like this.” Read the original of the short report in the above regard and listen to an interview of Nkolonzi at SABC News
|
Get other news reports at the SA Labour News home page