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


TOP STORY – MTBPS

Treasury and Reserve Bank set new 3% consumer inflation target

BusinessDay reports that in the biggest monetary policy reform in 25 years, the consumer inflation target that the SA Reserve Bank (SARB) will aim for has been set at 3%, with significant consequences for fiscal metrics such as tax revenue, nominal GDP and government expenditure over the next three years. Finance minister Enoch Godongwana announced the 3% target – with a one percentage point tolerance band on either side to accommodate nominal economic fluctuations – in the medium-term budget policy statement (MTBPS) tabled in parliament on Wednesday. The new 3% target – strongly fought for by SARB governor Lesetja Kganyago – is the lower end of the previous 3%-6% range, which was set in February 2000. The bank has aimed at the midpoint of 4.5% since 2017. SARB is expected to guide inflation and inflation expectations gradually towards the 3% target over the next two years. Commenting on the decision to set the target at 3% – which he stressed was a joint one between himself and Godongwana – Kganyago said:   “There is no such thing as a costless policy. Every policy has trade-offs, and what is important is that the benefits outweigh the costs.” He added that the previous inflation target band had been too wide and too high, while the 3% target was closer to that of SA’s peers.

Read the full original of the report in the above regard by Linda Ensor at BusinessDay (subscriber access only). Read too, Finance minister confirms inflation target at 3%, at Moneyweb. En ook, Inflasieteiken verlaag, by Maroela Media

Opposition MPs cautiously welcome medium term budget statement, but slam jobs inaction

BusinessDay reports that opposition MPs cautiously welcomed the medium-term budget policy statement (MTBPS) on Wednesday as an indication of economic revival, but they expressed disappointment that little was done to deal with unemployment. EFF leader Julius Malema criticised the budget for lacking clear plans to tackle unemployment, corruption, and the crises in policing, defence, health, and infrastructure. MK party MP Brian Molefe criticised the MTBPS for ignoring unemployment, saying the government of national unity was failing to tackle poverty, inequality, and joblessness with the urgency they required. “Dealing with inflation is important; we agree we have to deal with it. But we need to deal with unemployment with the same vigour. People want jobs; people are hungry; people are poor,” he emphasised.   Cosatu’s Matthew Parks said the labour federation noted the turnaround in many key parts of the state, in particular Eskom, Transnet, Metrorail and the SA Revenue Service. Still, “we remain deeply concerned that the budget, including the MTBPS’s proposed adjustments, is not bold enough to take the economy from the 1% growth it has been stuck at for two decades nor to give hope to 12-million unemployed”.

Read the full original of the report in the above regard by Luyolo Mkentane at BusinessDay (subscriber access only). Lees ook, Partye, ekonome verskil oor MTBR, by Maroela Media

Audit of ghost workers anchors Treasury’s payroll clean-up

BusinessDay reports that the 2025 mediumterm budget policy statement (MTBPS) makes clear that fiscal consolidation is not only about cutting budgets but also about enforcing accountability in the public service. With the compensation of employees projected at R817.5bn in 2025/26, the wage bill remains one of the largest items of expenditure. The Treasury has signalled that tackling inefficiencies in payroll and managing staff exits would be central to stabilising personnel costs. One of the most important interventions is the audit of ghost workers across national and provincial departments. Working with the Department of Home Affairs and the SA Revenue Service, the Treasury analysed payroll, population and tax data. The exercise flagged 8,854 highrisk cases requiring verification, including individuals drawing salaries from multiple departments, inactive employees still receiving payments, deceased individuals listed on payrolls and bank account anomalies suggesting fraud. A twomonth verification process will begin in January, after which appropriate legal action will follow where fraud is detected. The next phase will introduce a single signon application for public servants and upgrades to the government payroll system to automate monitoring and prevent future irregularities. Complementing the payroll cleanup is the early retirement programme, begun in October. The Treasury allocated R5.5bn over the medium term to enable 15,000 exits by 2026/27.

Read the full original of the report in the above regard by Tara Roos at BusinessDay. Read too, TARS to root out government ghost workers, at Moneyweb. And also, Government to cut spending by R6.7 billion as underperformers get axed, at BusinessTech

Government’s early retirement scheme aims to impact 30,000 positions

Daily Investor reports that the National Treasury’s early retirement programme, which was implemented from 15 October 2025, is in full swing and is estimated to impact 30,000 jobs within the government. This was revealed by Finance Minister Enoch Godongwana in his Medium-Term Budget Policy Statement (MTBPS) tabled in Parliament on Wednesday. As part of National Treasury’s policy of fiscal consolidation, the public sector wage bill, which consumes a third of its total spending, has to be tackled. One of the initiatives implemented by the Treasury in this regard is its Early Retirement Programme, which provides financial incentives for older employees to exit the public service. Crucially, the early retirement of older employees will ease the government’s wage burden by replacing higher-wage employees with lower-wage entrants. But, the National Treasury has a tricky balancing act in trying to ensure that the government does not lose vital skills that are needed to ensure it can deliver services effectively. Up to 30,000 state employees are expected to opt for early retirement under this programme, resulting in savings of up to R7.1 billion per year. Those wishing to pursue this option will have to apply, with approvals given only by the relevant executive authority. State workers aged between 55 and 60 are likely to be offered two weeks’ pay for every year they have worked, up to a maximum of 20 years and one week’s pay for every year they have been employed after that. No penalties will be imposed on employees opting into the Early Retirement Programme.

Read the full original of the report in the above regard by Shaun Jacobs at Daily Investor

Godongwana voices concern about health department’s plan to scrap medical scheme tax credits

BusinessDay reports that Finance Minister Enoch Godongwana has expressed caution about the Department of Health’s (DOH’s) proposal to phase out medical scheme tax credits to help fund National Health Insurance (NHI). The DOH has told parliament that scrapping those credits could begin as early as next April, starting with high-income earners. In a media briefing prior to the tabling of his medium-term budget policy statement (MTBPS), Godongwana said: “My worry … is that if you look at who is paying our PIT (personal income tax), it’s the same group you want to take medical credits away from. It’s actually an attack on the middle class. I’m not saying we should not do medical tax credits, but once we do that we must present … the alternative.” The issue was under discussion with the DOH, but the Treasury had yet to finalise its position, said the Treasury’s Chris Axelson. Medical tax credits include a tax credit for medical scheme contributions. The Board of Healthcare Funders and the Health Funders Association maintain that medical tax credits are a vital measure to help keep medical scheme membership affordable and reduce the load on state healthcare facilities.

Read the full original of the report in the above regard by Tamar Kahn at BusinessDay (subscriber access only). Read too, Scrapping medical tax credits not on the cards, says Godongwana, at Moneyweb

Other internet posting(s) in this news category

  • Inflation target, tax collection among MTBPS highlights, at Engineering News
  • Relief for millions as Godongwana extends Covid-19 social relief of distress SRD grant, at Cape Argus


UNEMPLOYMENT

Unemployment growing faster than job creation

Sunday World reports that Finance Minister Enoch Godongwana has highlighted the widening gap between job creation and employment as there are more unemployed people than jobs that have been created since 2019.   Over 386,000 more jobs have been created since 2019. But there are currently 1.6 million newly unemployed people in the labour force. Statistics SA (StatsSA) revealed on Tuesday that 8-million people remained unemployed. This while unemployment saw a slight decrease from 33.2% in the second quarter to 31.9% in third quarter. Godongwana said faster implementation of structural reforms and higher levels of capital investment were needed for rapid growth and job creation. “The pattern of unemployment continues to mirror South Africa’s longstanding socioeconomic divides. It is affecting women more than men, black Africans more than whites. Under 35s more than older workers and matriculants more than tertiary graduates,” Godongwana noted. He said Operation Vulindlela, government’s flagship reform programme, was continuing the steady work of reforming key network industries, including energy, freight logistics and water. The second phase of this programme will expand the focus to strengthen local government.

Read the full original of the report in the above regard by Boitumelo Kgobotlo at Sunday World

In Eastern Cape and North West more people are unemployed than working

BusinessTech reports that Statistic SA’s latest Quarterly Labour Force Survey (QLFS) shows that in the North West and Eastern Cape more people are unemployed than working. The official unemployment rate dropped to 31.9% in the third quarter of 2025, down from 33.2% in the previous quarter. This marked a 1.3 percentage point improvement and meant that about 248,000 more people found jobs, bringing the total number of employed South Africans to 17.1 million. At the same time, the number of unemployed people fell by 360,000 to 8 million. But across all the provinces, the differences were striking. The Western Cape continued to have the lowest official unemployment rate at 19.7%.   Limpopo followed at 29.8%, while the Northern Cape and KwaZulu-Natal recorded rates of 31.2% and 31.7% respectively. However, the situation looks much worse in the Eastern Cape and North West. The Eastern Cape was the only province to record an increase in unemployment in the third quarter. Under the new expanded definition, its unemployment rate now sits at 50.2%, meaning more than half of its adult population is unemployed. The North West is in an even worse position, with an expanded unemployment rate of 52.5%. The survey makes it clear that SA’s unemployment is still in crisis, with deep regional gaps showing who is benefiting from economic recovery and who is not.

Read the full original of the report in the above regard by Malcolm Libera at BusinessTech


FLYSAFAIR LOCKOUT

Cabin crew union slams FlySafair for ‘bad faith’ wage review talks

The Citizen reports that the lock-out of FlySafair cabin crew entered its second seven-day period on Sunday as negotiations over wages and working conditions again reached a stalemate. The SA Cabin Crew Association (Sacca) accused the budget carrier of disingenuous motives and negotiating tactics. The union, which represents about two-thirds of FlySafair’s cabin crew, says the airline has gone back on its word, changed agreements after the fact and ignored labour laws that protect employees.   It has requested the labour department to intervene. Sacca spokesperson Feroze Kader said that from the get-go, the talks with management went awry. “They gave us one minute per line item to detail our issues and told us that they were not really interested in entertaining us,” Kader said. Fast forward to now and the union’s issues raised remain unresolved. “Safair took and continues to hold an adversarial stance. The company’s international owners clearly don’t care too much about local staff”,” Kader claimed. Among the crew members’ issues are overtime pay, Sunday pay, meal breaks and standby time at home.

Read the full original of the report in the above regard by Hein Kaiser at The Citizen


LABOUR AND POLITICS

Solidarity advances protest with second billboard in Joburg, amid legal battle over the first one

News24 reports that Solidarity has intensified its protest against SA’s affirmative action laws by erecting a second billboard in Joburg, following the removal of the first one by City officials. The trade union has also sent the City a legal notice calling for the immediate return of its banner. On Monday, the advertisement was removed by the Joburg Metro Police Department from a sidewall along the M1. The banner, positioned along the route leading to the G20 Summit, was a form of protest by Solidarity, which accuses the SA government of implementing laws that disadvantage minority groups. Following the removal of the banner, Solidarity announced that it had sent a legal notice to the City to reinstate the banner immediately, cease any further interference with its “campaign material”, and compensate the union for the production and installation of the material. Solidarity’s deputy CE Anton van der Bijl described the City’s actions as indicative of “a willingness by the government to use state power to silence public voices that disagree with it”. Another advertisement with similar messaging was installed on Tuesday on a billboard near Nasrec in Joburg. Solidarity announced its intention to erect 28 more across Gauteng to ensure its message reached the international delegates expected to attend the summit from 19 nations.

Read the full original of the report in the above regard by Noxolo Sibiya at News24 (subscription / trial registration required). Read too, Solidarity prepares to go to court over billboard removal, at News24 (subscription / trial registration required). En ook, Banier-herrie: Solidariteit op pad hof toe, by Maroela Media

Other internet posting(s) in this news category

  • Health workers should support G20 Women’s Shutdown without compromising care, says Sama, at TimesLIVE


CEO DESIGNATE RESIGNATION

Mercedes-Benz South Africa CEO-designate resigns

Reuters reports that Mercedes-Benz South Africa (MBSA) announced in a statement that CEO-designate Abey Kgotle has resigned for personal reasons, less than a month before he was set to take up the role.   Kgotle, who joined MBSA in 2017, was named in June to succeed Andreas Brand as CEO of the German luxury car maker’s South African operations. Brand, who was scheduled to relocate to Stuttgart on 30 November for a global production role overseeing seven Mercedes-Benz manufacturing plants, will now continue as chief executive “until further notice.” Kgotle currently serves as the company’s executive director for human resources and corporate affairs and will step down effective 30 November. The company did not provide details about his personal reasons in its statement.

Read the original of the short report in the above regard at TechCentral


UNPAID WAGES

Security guards shut down Cape Town construction project over unpaid wages

GroundUp reports that security guards have been protesting outside a project to build pavements in Illitha Park, Khayelitsha since Monday over their unpaid wages. On Tuesday morning, the guards prevented construction workers from leaving or completing their duties at the site. The guards demanded that Sibakulu Guarding Division pay their October salaries. Protester Andiswa Machicila, a guard with Sibakulu, explained: “We told [the workers] we will allow them in, but we won’t let them out. We have no money to buy food for our families … I’m hungry.”   Unable to complete their duties, the construction workers started burning tyres as they too had not been paid.   The CIty of Cape Town has contracted Triple C Maintenance and Services to build the pavements. Triple C has in turn subcontracted three companies, including Sibakulu for security. It appears all three subcontractors have either paid their workers late or failed to pay them. Sibakulu’s Moses Ndlovu pleaded with the guards to continue working and promised they would be paid on Wednesday. Rob Quintas, Mayco member for urban mobility, said the City had investigated the matter found that the non-payment was because the sub-contractors submitted their invoices late. This issue has been resolved, and the project and operations resumed, Quintas said.

Read the full original of the report in the above regard by Vincent Lali at GroundUp


RAF SUSPENSIONS

New RAF board gets flak from MPs for shielding four executives from accountability by suspending them

EWN reports that the new board of the Road Accident Fund (RAF) has come in for harsh criticism from members of Parliament’s Transport Portfolio Committee for suspending four executives just days before they were due to appear before the committee to explain the fund’s latest financial statements. Some MPs said it appeared that Friday’s suspensions, which included the chief financial officer, were a deliberate move to shield them from accountability after the institution reported a deficit of R2.3 billion for the last financial year. However, the RAF board chairperson, Kenneth Brown said the board would have been derelict in its duty if it had not acted when it did, given the maladministration uncovered. On Friday, the RAF announced the precautionary suspensions of four top executives – including its acting CEO – to allow unhindered investigations.   Slammed by MPs over the timing, Brown said the suspensions were a long time coming after the new board began uncovering what he has termed “egregious acts”.

Read the original of the short report in the above regard by Lindsay Dentlinger at EWN


ALLEGED COP CRIME

Process under way to root out guilty EMPD officials, Ekurhuleni Mayor assures

SABC News reports that City of Ekurhuleni Mayor Nkosindiphile Xhakaza says there’s a process under way to root out the City’s Metro Police (EMPD) officials found guilty of committing crimes. The Madlanga Commission has heard that almost 300 officers have criminal records or are awaiting trial for serious offences.   On Tuesday, EMPD Deputy Chief Brigadier Julius Mkhwanazi was suspended following recommendations of an internal audit investigation into allegations of misconduct. According to Xhakaza, lawlessness will not be tolerated within the EMPD. “What is important is that we need to clean our system and rid it of wrong elements,” said Xhakaza. Meanwhile, he warned that any official found to be involved in wrongdoing in relation to Mkhwanazi’s suspension would face disciplinary action. This follows allegations that the City’s Head of HR Linda Gxasheka and Head of Legal Services Kemi Behari actively blocked disciplinary action against Mkhwanazi despite findings of wrongdoing.   Xhakaza indicated that a forensic report on Mkhwanazi’s alleged misconduct would soon be tabled before council.

Read the full original of the report in the above regard by Sashin Naidoo at SABC News. Read too, Ekurhuleni officials allegedly protected metro police boss Mkhwanazi and his ‘rogue unit’ for years, at Daily Maverick. And also, ‘I retired early due to rampant criminality at EMPD’: former deputy chief Revo Spies, at TimesLIVE


COMMUTING / PUBLIC TRANSPORT

Passengers leap from burning bus on Cape Town’s N2, no injuries reported

News24 reports that dramatic scenes unfolded on Cape Town’s N2 on Wednesday afternoon as some passengers aboard a Golden Arrow bus were forced to escape through windows after the vehicle burst into flames. The bus was transporting passengers from Makhaza in Khayelitsha to the Cape Town CBD.   Passenger Ncumisa Dantile, who was on her way to work, said the bus started “acting up” while it was still in Makhaza. She reported further: “We told the driver we could smell something burning from the engine. He got out to check, came back and said everything looked fine. But once we got onto the N2, the smoke grew thicker, and before we knew it, the bus was on fire. We screamed for the driver to stop. People were jumping out of the windows, and I followed. Luckily, I was close to the door. It’s only by God’s mercy that we’re still alive to tell the story.” According to Cape Town Fire and Rescue Services, a call was made at around 14:15 to report a bus on fire before Liesbeek Parkway. Crews managed to contain the fire by 14:35. Golden Arrow said it would launch an investigation into the cause of the fire but that arson was not suspected.

Read the full original of the report in the above regard by Noxolo Sibiya & Velani Ludidi and view a video clip at News24 (subscription / trial registration required)


Other internet posting(s) in this news category

  • Gunmen open fire at Nyanga taxi rank, leaving two dead and eight injured, at Cape Argus

OTHER REPORTS OF INTEREST

  • Department of Education proposes five changes to the school calendar, at The Witness
  • Court dismisses Pretoria Girls High’s bid to get racism probe report, at IOL News
  • Icebolethu Foundation launches computer skills centres to bridge digital divide in KwaZulu-Natal, at Daily News
  • Is revealing someone's HIV status defamatory? The court explains the differences, at The Star
  • InDrive allows drivers to keep 99% of fare income, at ITWeb
  • Fire at Randburg office park results in partial building collapse, no injuries reported, at SABC News

 


Get other news reports at the SA Labour News home page