In our Thursday roundup, see summaries
of our selection of South African labour-
related stories that appeared since
midafternoon on Wednesday, 25 October 2017.
Treasury pleads for ‘fair and reasonable compromise’ in public sector wage talks Business Report writes that the National Treasury on Wednesday pleaded for a “fair and reasonable compromise” between the government and state employees in the current round of wage talks, charging that this was in the public interest. Finance Minister Malusi Gigaba said there needed to be an appreciation that the country was going through tough economic times and that public sector wage agreements must be affordable to the current fiscal framework. “The government will approach the wage negotiations with a view to getting the best deal in the current fiscal framework so that the deal we arrive at is affordable to the fiscus,” he stated. The Medium-Term Budget Policy Statement (MTBPS) released on Wednesday provides for an overall increase of 7.3% a year to accommodate improvements in conditions of service. “Many departments are already at risk of exceeding this limit, even assuming that personnel numbers do not increase,” according to the document. Cosatu reacted that the government needed to stop blaming teachers, nurses, police officers, prison warders, doctors and municipal street cleaners for the wage bill. “It must reduce the out-of-control salaries of state-owned enterprises’ chief executives, executives and political office-bearers including the directors-general,” the labour federation stated. Read the original of this report by Kabelo Khumalo in full at SA Labour News. Read too, Wage deal public servants want may bust expenditure targets, Gigaba warns, at BusinessLive. And also, Growing public sector wage bill threatens public services, at BusinessLive. Read Cosatu’s press statement on the MTBPS at Politicsweb Other internet posting(s) in this news category
Farmworker's body retrieved from grain silo on farm outside Springs News24 reports that a man’s body was retrieved from a grain silo on a farm outside Springs on the East Rand on Tuesday morning. The body was that of a farmworker, who had been operating a conveyer belt along with a fellow farmworker at Rowan Feed farm. “The other [worker] went outside and when he came [back], he heard screaming and noticed [his] co-worker sinking and went to stop the machine that operates the belt. He called for help, paramedics and firefighters,” police said in a statement. ER24’s Russel Meiring said when paramedics arrived they found that some of the workers had already begun to empty the silo of grain, where the man lay trapped. Although emergency services managed to retrieve the body, the 28-year-old man succumbed to his injuries and was declared dead A short report by Nation Nyoka is at News24 Other internet posting(s) in this news category
Pan African Resources’ frustration over disruption at Elikhulu gives rise to tough talk BusinessLive writes that tough comments from the CEO of Pan African Resources (PAR), Cobus Loots, about its difficulties with a small group disrupting the construction of its R1.7bn Elikhulu tailings project is an indication of the frustration the company is experiencing. Loots says that about 30 people are blocking access to the project, assaulting and threatening workers at the site to back their demand to be given an office at the operation and for all procurement work to go through them. This is not the first such standoff in the mining industry. Recently, mining companies operating chrome and platinum mines in the Steelpoort valley spoke of fractured communities and small groups trying to grab opportunities to provide mines with goods, services and labour. PAR was granted a court interdict stopping the group from blockading the site, forbidding threats and vandalism and inciting others to unlawful activities. But, the interdict has yet to be acted on by the police. Loots is clear that PAR will not back off or change its view of the great opportunities SA presents for the company, particularly at its Evander mining operation. Read this opinion if full at BusinessLive Postings on Mining Charter
Prospects grim for Western Cape farms, with 50,000 jobs on the line due to drought TimesLive reports that the Western Cape is facing a jobs bloodbath, with 50‚000 workers in the agriculture sector in the region estimated to be in line to lose their jobs due to the drought. During a presentation to Parliament on Wednesday‚ head of the Western Cape local government ministry, Graham Paulse, painted a grim picture of the agricultural sector. In his report‚ he stated that the layoffs could lead to social and humanitarian problems and, in addition, many might move to the Cape Town metro or other towns to find work. “[The Impact on agriculture] is significant ...in Ceres‚ 50% less onions have been planted and 50% less potatoes have been planted. That is a direct result of the water shortages in that area with an estimated loss of about R40-million in wages to agri workers‚” Paulse indicated. The factory in Lutzville that makes puree out of tomatoes has closed for the season. Deciduous fruit farmers expect a 20% smaller crop and the smaller fruit will yield lower profits. The wine industry‚ seen as one of the key economic drivers in the province‚ has also not been spared. Read this report by Aphiwe Deklerk in full at TimesLive. Read too, Work drying up in Western Cape drought, at News24
'Bring in the police‚ this place is not safe‚' say staff at strike-hit Thelle Mogoerane Hospital TimesLive staff at the Thelle Mogoerane Regional Hospital in Vosloorus have called for the Gauteng department of health to bring in the police to secure the hospital while it is dealing with the strike surrounding non-payment of the hospital’s security guards. On Wednesday‚ workers tried unsuccessfully to have a meeting with hospital management to raise the issue of the safety of patients and staff after the security guards downed tools. A health worker who was part of the group demanding answers explained the situation: “We are saying to the [Gauteng] department of health and management they should just bring the police. It is not safe for anybody to work here. There are violent patients who can really harm the medical staff. Anybody can walk in here and cause harm. Let them bring the police as a temporary measure while the issue with the security guards is being sorted.” The security guards from Sidas Security Guards downed tools on 19 October after they were not paid. According to the Trade Union of Security Industry in SA (Tusisa)‚ the Gauteng department of health agreed to pay the security company within five days of the meeting held on 19 October. But Tusisa advised its 167 members working as guards at the hospital not to return to their posts. The guards have been reporting and signing in at the hospital‚ but not doing any work Read this report by Penwell Dlamini in full at TimesLive. And also, Union claims government failed to honour its promises at Thelle Mogoerane Hospital, at TimesLive
Protesters barricade Orpen gate road into Kruger National Park demanding tourism jobs SABC News reports that scores of tourists en route to the Kruger National Park's Orpen gate through the R531 were left disappointed after they were forced to turn back and use other entrances to the park. Residents of Welverdien, outside Acornhoek in Mpumalanga, barricaded the road with stones and huge tree branches demanding employment from local businesses in the tourism sector. Some of the residents claimed that they had written several letters to the local lodges and game reserves expressing concern about the lack of development in the village. One of the protesting residents said: “We want them to help us. When there is learnership, job creation, at least they develop our community. We don't have water; we don't have a community hall. At least they must do that for us. We decided to protest, because we want our benefits in our inheritance land, because this is our grandparents' land. So, we want to benefit as the nearest community, from here.” The Kruger National Park has since released a statement advising tourists to avoid the Orpen gate. Read this report by Vusi Twala in full at SABC News
Samwu vehemently opposed to sale of government’s Telkom shares to bail out SAA ANA reports that the SA Municipal Workers’ Union (Samwu) on Wednesday said that it was opposed to the plan by government to sell its Telkom shares, and was standing firm against the privatisation of state assets. Finance Minister Malusi Gigaba confirmed in Parliament during his Medium-Term Budget Policy Statement (MTBPS) that government would dispose of a portion of the state's Telkom shares to bankroll the embattled SA Airways (SAA). Gigaba said government would have the option to buy back the shares at a later stage, but was going ahead with the sale to recapitalise the airline to prevent it defaulting on debt payments. Samwu general secretary, Simon Mathe, said that they noted “with great concern" the pronouncement by Gigaba and added that the union was “vehemently opposed to the plan by government to sell its shares of Telkom. Telkom is one of the best state assets which has been performing better, and as such it does not make sense that anyone would even think of selling." Mathe said Samwu remained opposed to the privatisation of state assets. Read this report in full at SABC News. Read Samwu’s reaction to the MTBPS in full at Samwu online
Index shows real take-home pay shrank in September due to higher inflation BusinessLive reports that real disposable take-home pay shrank for the first time in seven months on a year-on-year basis due to higher inflation in September 2017. The monthly BankservAfrica Disposable Index indicated on Thursday that the average, real, seasonally adjusted banked salary declined by 1.3% to R13,964 in September. In nominal terms, the take-home salary averaged at R14,255. While these changes did not represent a complete reversal in the trend towards declining take-home pay levels, it has become evident that the lower growth rate in nominal and real terms was becoming the norm, the report said. "The difficult economic conditions in the country at present impact firms and their ability to pay higher salaries. The effective tax rate on gross salaries is also taking a toll," BankservAfrica said. According to the report, there was far less growth in the wage employment numbers of big employers than people with pensions. Read this report in full at BusinessLive Woolworths tailors executive bonuses to make them less reliant on share price performance BusinessLive reports that Woolworths Holdings’ decision to reduce the weighting of total shareholder return (TSR) in calculating long-term incentives for its executives has sparked fears that the executives are not expecting a recovery in the share price. The retail group’s annual report reveals the TSR weighting used to measure performance conditions for the performance share plan (PSP) has been cut from 50% to 20% and return on capital employed increased to 30%. This change will make the awarding of long-term bonuses less reliant on share price performance. The share price has been on a steeply downward trajectory since late 2015. The weighting of headline earnings per share remains at 50%. The remuneration committee explained that the change to the weighting was meant to bring it "more in line with market practice among companies similar in size and industry". One analyst said it was disconcerting to make this sort of change when Woolworths was going through such challenging times. Read this report by Ann Crotty in full at BusinessLive (paywall access) Other internet posting(s) in this news category
Retirement of ArcelorMittal CEO increases retrenchment stress, says Solidarity Fin24 reports that trade union Solidarity on Wednesday expressed concern after Wim de Klerk, CEO of steel producer ArcelorMittal SA (AMSA), announced his retirement at the end of January 2018. The trade union’s concern about De Klerk’s announcement stems from the section 189A retrenchment notice issued by AMSA on 16 August. Marius Croucamp, Solidarity’s deputy general secretary in the metal and engineering industry, said in the context of the pressure currently experienced in the steel industry, this announcement increased the stress of members who might be affected by the retrenchments. “It will intensify the major uncertainty that the employees are already experiencing,” explained Croucamp. Solidarity is actively involved in talks with the company to discuss alternatives to retrenchments and minimise the possible retrenchments at AMSA. Read this report in full at Fin24. Read Solidarity’s press statement in this regard at Solidarity online
Plans to establish National Health Insurance fund delayed until further input received BusinessLive reports that the Treasury has delayed plans to set up a National Health Insurance (NHI) fund‚ saying it wants advice from the Davis tax committee on the feasibility of proposals to adjust the medical tax credits to finance it. Former finance minister Pravin Gordhan said in the February budget policy statement that an NHI fund would be established to support priority health programmes‚ and that more details would be provided in the medium-term budget policy statement (MTBPS)‚ which was delivered by Finance Minister Malusi Gigaba on Wednesday. At the time‚ Gordhan said it might be partially funded by a reduction in the tax credits provided to medical scheme members. The Treasury now said more work needed to be done. Although the Treasury did not directly say so‚ the data indicate that scrapping or sharply reducing the medical tax credits will hit people with lower incomes particularly hard‚ and potentially make their medical scheme cover unaffordable. “The National Treasury and the Department of Health are working on proposals to expand NHI services in a progressive and affordable manner‚” Gigaba said in the MTBPS. Read this report by Tamar Kahn in full at TimesLive Other internet posting(s) in this news category
DA calls for commission of inquiry into sexual assault cases in Gauteng schools EWN reports that the Democratic Alliance’s (DA’s) shadow MEC for education in Gauteng, Khume Ramulifho, has called on the premier to set up a commission of inquiry to investigate sexual assault cases at schools in the province. The party has warned that the case of the 57-year-old man accused of sexually assaulting more than 80 girls at a Soweto school might not be isolated. The security guard appeared in the Protea Magistrate’s Court on Wednesday, where he abandoned his bail bid. Ramulifho reckoned that the current task team comprising of three MECs was not equipped to deal with the scale of abuse. “The approach which the department is taking is an assumption that perpetrators are only patrollers and in some instances, teachers are involved. That’s why we’re saying we need a wider scope of dealing with these types of cases.” This short report by Katleho Sekhotho is at EWN. See too, Soweto school guard accused of sexual assault not applying for bail, at News24 Other internet posting(s) in this news category
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