In our Friday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
|
Auto manufacturing industry and Numsa fail in last-ditch effort to resolve wage impasse BusinessDay reports that the National Union of Metalworkers of SA (Numsa) said on Thursday evening that a last-ditch effort by it and executives from SA’s vehicle manufacturers had failed to break their wage deadlock. The union indicated: “Unfortunately, the offer from the employers has not been accepted by Numsa … which means the current deadlock remains unresolved. As such a certificate of non-resolution is in the process of being issued by the facilitators in line with the [national bargaining forum] agreement with a possible strike on the cards.” The union rejected the employers’ proposed multi-term increases of 6.5% for the first year and 5% for each of the next two years. Numsa, which has described the offer as an “insult” and a “serious provocation” to its members, is demanding increases of 9% in the first year and 8% in the outer years. The inflation rate is 3.4%. The union is also demanding a R20,000 gratuity against the employers’ R10,000 and a 80% contribution by employers to medical aid. The country’s seven car manufacturers are represented by the Automobile Manufacturers Employers Organisation (Ameo). According to the association, the industry is at a critical crossroads, with global production growth having been flat over the past decade and internal combustion engine volumes declining as the world transitioned towards new-energy vehicles. Ameo said its offer exceeded inflation projections and reflected its commitment to protecting both jobs and the long-term sustainability of the auto manufacturing sector. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessDay
PIC and Oxford University posit that SA’s re-industrialisation could create 250,000 jobs in five years BusinessDay reports that research by the Public Investment Corporation (PIC) in partnership with Oxford University indicates that SA can create 250,000 jobs in the next five years and R100bn in economic uplift if it doubles down on re-industrialisation efforts. The study puts agro-processing, mining beneficiation and the motor sector at the heart of SA’s industrialisation. “SA’s industrialisation is not speculative – it is an execution challenge with clear upside. Institutional investors have the opportunity to achieve sustainable financial returns while driving transformative economic and social impact. By aligning priorities, deploying innovative financing structures and leveraging existing reforms, SA can transition from incremental progress to sustained industrial growth,” the research paper indicates. SA has seen a rapid de-industrialisation in recent decades, with the industrial sector’s contribution to GDP falling from 28% in 1993 to 18% last year. The study presents an actionable roadmap for investors looking to scale investment in SA’s industrial sector. It says authorities should put on the table predictable incentives, reliable power, efficient logistics and blended finance vehicles to unlock investments. It also says beneficiation of minerals such as manganese, chrome and platinum can reduce earnings volatility and align with global demand for green products. “For investors, the implication is clear: the gap between current and potential output is vast, and closing even part of it represents a multitrillion-rand opportunity with measurable employment and supply-chain impact,” the report states. Read the full original of the report in the above regard by Kabelo Khumalo at BusinessDay (subscriber access only). Read too, PIC research identifies opportunities for institutional capital, at Engineering News
South Africa to start R2.5bn fund to tackle youth unemployment Bloomberg reports that SA will on Friday start offering loans from a R2.5 billion Youth Fund aimed at supporting small businesses as part of a push by the government to tackle one of the world’s highest youth unemployment rates. The fund aims to address this by supporting high-potential small and medium enterprises. The initiative, spearheaded by the National Youth Development Agency (NYDA) and set to be announced by Deputy President Paul Mashatile, is designed to shift the agency’s model from offering small grants toward making larger, equity-based and loan investments in enterprises owned by young people. Unlike previous NYDA programs that offered grants of up to R250, 000, the new fund will invest between R750,000 and R2 million, depending on the business case. Financing will consist of a mix of loans and equity stakes. “We want to invest in youth-owned SMEs that can grow into sustainable enterprises — the kind that could one day list on the JSE,” the NYDA’s Bonga Makhanya explained. The NYDA is capitalizing the fund with R1.2 billion of its own reserves and provincial contributions. It is also courting partnerships with the Industrial Development Corporation, the Development Bank of Southern Africa, the Public Investment Corporation and several mining companies. The fund will target sectors including renewable energy, mining, agriculture, industrial manufacturing, and processing. Read the full original of the report in the above regard by Khuleko Siwele at Moneyweb
Jobs of 65 employees at drilling company threatened by mine closure saved Maroela Media reports that in the midst of the uncertainty brought by the closure of Assmang’s Beeshoek Iron ore mine near Postmasburg in the Northern Cape, a local drilling company managed to protect the majority of its contract workers from retrenchment. Booysens Bore, in close cooperation with trade union Solidarity, has found new employment opportunities for a large number of its employees who would otherwise have faced unemployment. Beeshoek Mine’s closure follows the financial difficulties experienced by its only major client, ArcelorMittal SA. The development also had implications for 95 employees of Booysens Bore, for whom alternative employment opportunities had to be found, as the company’s own contract with Assmang Beeshoek was set to expire on 31 October. The drilling company’s management decided to accommodate all employees willing to work outside Postmasburg by redeploying them elsewhere. Accordingly and after consultation with Solidarity, 65 employees were redeployed by Booysens Bore to its branches in Kathu and Kuruman, while some were placed in alternative roles. According to Adéle Rossouw, Solidarity’s organiser for the mining sector, the retrenchment process will thus affect only 23 of the 95 employees, while 65 remain employed by the company. Seven employees opted to resign. Among the 23 affected employees, some declined to relocate outside their immediate area. Rossouw described this agreement as a major victory for labour relations and said: “The key message here is that unions and employers do not always have to see each other as enemies – there is great strength in collaboration.” When the mine finally closes its doors, the jobs of approximately 688 employees will be affected. Read the full original of the Afrikaans report in the above regard at Maroela Media
Floyd Brink appointed for a second time as Joburg city manager TimesLIVE reports that the Johannesburg city council has approved a recommendation to reappoint Floyd Brink as city manager. The decision was taken during an ordinary meeting of the council on Thursday. After a year-long recruitment process and multiple delays, the report on the appointment process was successfully presented to the council after having been rescinded at the eleventh hour last week. Brink was presented to the council as the highest-ranking candidate, with a score of 114. The council had previously convened a closed in-committee meeting at which mayor Dada Morero had presented a recommendation to the council to halt the appointment process for the post of city manager and investigate the leak of the recommendation report, saying it could have compromised the integrity of the process. Morero later withdrew that proposal. Brink was ousted last year through a DA-sponsored court bid in which they contested his appointment at that time, citing irregularities in the initial recruitment process. He reapplied for the position when it was advertised this year. Read the original of the short report in the above regard by Sisanda Mbolekwa at TimesLIVE. Read too, Floyd Brink reappointed as Johannesburg city manager, at News24 (subscription / trial registration required). And also, DA not happy with re-appointment of Floyd Brink as Joburg's City Manager, at EWN City of Ekurhuleni appoints shooting survivor Kagiso Lerutla as new city manager News24 reports that the City of Ekurhuleni made an announcement on Thursday on its X account that it has appointed Kagiso Michael Lerutla as its new city manager. Lerutla, a chartered accountant, brings more than 13 years of management experience in public finance and governance to the role. He previously served as the City’s group chief financial officer (CFO) and holds a number of degrees. According to the City, under his leadership it achieved three consecutive clean audits and implemented strengthened financial management systems. While occupying the group CFO position, Lerutla survived a shooting in September 2023, sustaining bullet wounds. This incident was one of a series of violent attacks that have plagued the municipality’s finance officials. Two months after his shooting, Simnikiwe Mapini was murdered while working on a chemical toilets tender. In June this year, forensic auditor Mpho Mafole, who was auditing R1.8 billion in mobile chemical toilets and waste contracts, as well as R2.2 billion in electricity and water vending contracts, was murdered. Read the full original of the report in the above regard by Noxolo Sibiya at News24 (subscription / trial registration required)
Death of key witness delays matric certificate ‘fraud’ trial of Eastern Cape health spokesperson News24 reports that a senior Eastern Cape Department of Health (DOH) official who had crucial information about departmental recruitment processes and remuneration died of natural causes earlier this year, before she could testify in the fraud trial of DOH spokesperson Sizwe Kupelo. Khunjulwa Livi, deputy director for recruitment, was on the witness list in the State’s case against Kupelo, who was arrested last year for allegedly submitting a fake matric certificate to gain employment in the department in 2002. The State wanted to submit to the court a statement containing details about Kupelo’s earnings that was deposed by Livi before her death. However, Kupelo’s defence successfully opposed the State’s application, which led to the postponement of the trial in the East London Commercial Crimes Court on Thursday. State prosecutor Siphamandla Ngxokolo said he wanted a postponement in order to find another official from the department to testify about Kupelo’s earnings. The new witness will give evidence on how much money the provincial government had been prejudiced by due to the alleged fraud by Kupelo. He is out on R30,000 bail and faces two counts of fraud, two counts of uttering and one count of forgery. He pleaded not guilty to the charges at the start of the trial in July. The trial was postponed to 20 November. Read the full original of the report in the above regard by Sithandiwe Velaphi at News24 (subscription / trial registration required)
DA slams Buti Manamela for ‘packing’ Seta boards with ANC cadres TimesLIVE reports that Democratic Alliance (DA) MP Karabo Khakhau has accused Department of Higher Education and Training (DHET) Minister Buti Manamela of filling the new sector education and training authority (Seta) boards with ANC loyalists. Manamela only released the names of the new board members on Tuesday, 28 days after their appointment. The information came shortly after Khakhau had written to the minister, calling on him to make the appointments public. According to Khakhau, the delay in publishing the names raised questions about transparency. “This publication came 28 days after their appointment, a month wherein Manamela concealed the names for no apparent reason at the time,” she noted. Khakhau alleged that the reason for the delay was now clear. She said: “The boards have been stacked with ANC cadres again. The Setas are more than R20bn in annual investment from the government, and we cannot allow them to continue being ANC sweet shops. Khakhau indicated that the DA would continue to probe this matter and would announce further action soon. Read the full original of the report in the above regard by Gugulethu Mashinini at TimesLIVE Other internet posting(s) in this news category
Medical schemes want answers from Treasury on plan to phase out members’ tax credits News24 reports that the Board of Healthcare Funders (BHF) wants urgent answers from government on a move to start phasing out medical scheme tax credits. The nonprofit body, which represents more than 40 medical schemes and administrators, warns that this could eventually make membership unaffordable for between 430 000 to 690,000 South Africans. The BHF has written to the National Treasury demanding clarity on recent government statements that medical scheme tax credits will be phased out, starting with higher earners, to fund the National Health Insurance (NHI). The BHF says this would hit medical aid affordability for low- and middle-income earners, not just high-income members. “The removal of medical tax credits is not a technical adjustment. It is a policy decision with profound public-interest implications. Nearly 67% of medical scheme members come from previously disadvantaged communities. These are not the wealthy elite, they are teachers, nurses, security guards, and office workers doing their best to fund their own healthcare,” the BHF’s Dr Katlego Mothudi pointed out. Deputy director-general for health, Nicholas Crisp, who is also responsible for the NHI, said in a briefing to MPs this week that discussions with Treasury were under way to gradually withdraw medical scheme tax credits. This was reiterated in a Department of Health presentation to the Standing Committee on Appropriations this week, which confirmed that the phasing-out process would begin in the 2026/27 financial year. Read the full original of the report in the above regard by Garth Theunissen at News24 (subscription / trial registration required). Lees ook, Groeiende kommer oor moontlike uitfasering van mediesefondskrediete, by Maroela Media
Labour Court backs Transnet over employees fired for insubordination and insolence IOL Business reports that the Labour Court (LC) has sided with Transnet in a dispute over insubordination and insolence, overturning a commissioner’s order that two dismissed employees be reinstated with 18 months’ back pay. The case centred on two Transnet workers – a senior technical employee and a stock controller – who were fired after sending what management described as “threatening, intimidating, undermining and defamatory” emails to senior managers. The pair claimed they were acting on behalf of members of the National Transport Movement, a union not recognised by Transnet. The commissioner had earlier ruled that the dismissals were both procedurally and substantively unfair, saying the workers were denied representation, that the charges were vague, and that their medical certificates explaining their absence from the disciplinary hearing were ignored. However, the LC found that the commissioner had “failed to properly consider the true nature of the matter before her, together with the evidence”. The court said the commissioner “focused her attention on why the emails had been sent and not the contents of the emails and the impact these emails had on the recipients.” Transnet argued that the workers could have followed the company’s grievance procedure instead of launching an email attack on management. The court agreed, ruling that the commissioner had “misconstrued the true nature of the dispute before her”. Read the full original of the report in the above regard by Nicola Mawson at IOL Business
Gauteng education department suspends teacher assistant over alleged sexual assault Sunday World reports that the Gauteng Department of Education (GDE) has suspended a teacher assistant accused of sexually assaulting a 13-year-old pupil at Ema Primary School in Winterveldt, Pretoria. He allegedly called the Grade 7 learner a bitch that liked boys and went on to touch her breasts. Two other pupils witnessed the incident, with one informing a teacher and the other reaching out to the parents after school. The teacher assistant was only recently suspended in respect of the case, which was originally registered in August. GDE spokesperson Steve Mabona confirmed that the alleged perpetrator had been officially suspended. However, he did not respond to a question about the conduct of the principal, who according to the pupil’s father, held a disciplinary hearing without informing the Tshwane West education district and the social worker that was meant to represent the pupil. Instead, the child was reportedly represented by the school governing body (SGB), despite perceived bias in that the accused’s mother is alleged a member of the SGB. A Gauteng police spokesperson confirmed that a sexual assault and crimen injuria case lodged in respect of this matter had been withdrawn. Read the full original of the report in the above regard by Boitumelo Kgobotlo at Sunday World Other internet posting(s) in this news category
Gunmen kill Joburg taxi association boss Molefe Moekeletsi and his bodyguard News24 reports that the chairperson of the Alexandra Randburg Midrand Taxi Association (Armta), Molefe Moekeletsi, and his bodyguard – travelling in separate cars – were gunned down in Marlboro Gardens, Joburg, on Thursday. Police spokesperson Colonel Dimakatso Nevhuhulwi said Moekeletsi was killed on 8th Street in Marlboro after unknown gunmen, driving a white BMW X5, launched an attack on two vehicles – an Audi and a Mahindra bakkie – that were travelling together. Nevhuhulwi said the driver of the Audi and one passenger from the Mahindra bakkie were declared dead on the scene, while police later added that four more occupants of the bakkie sustained gunshot wounds and were taken to hospital. Two civilians sustained injuries after their vehicle crashed into the Audi when the driver lost control. Nevhuhulwi said that police later discovered the suspects’ vehicle abandoned a few kilometres away from the scene. “The suspects are unknown at this stage, and the motive is currently suspected to be taxi-violence related, as one of the victims has been reported to be a member of a local taxi association of Alexandra,” she indicated. Read the full original of the report in the above regard by Iavan Pijoos at News24 (subscription / trial registration required). Read too, Taxi boss and his bodyguard shot dead outside Alexandra, at SowetanLive. And also, Marlboro shooting might be linked to taxi violence, say police, at SABC News Other internet posting(s) in this news category
|
Get other news reports at the SA Labour News home page
This 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.