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.
In our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Thursday, 30 November 2017.
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Judgment reserved in Molefe pension payback saga ANA reports that the High Court in Pretoria on Wednesday reserved judgment in the application brought by trade union Solidarity and the Democratic Alliance (DA) whereby they sought an order declaring former Eskom CEO Brian Molefe’s R30m pension payout unlawful and setting it aside. After a day of arguments from senior counsel representing parties, including Molefe, Public Enterprises Minister Lynne Brown, the Eskom Pension Fund, Solidarity, and the DA, a full bench of three high court judges adjourned the proceedings to a date to be announced. Solidarity and the DA argued since Molefe had a fixed term five-year contract with Eskom, he was not eligible for membership of the Eskom Pension Fund. They requested an order that Molefe should pay back the R11m he has reportedly already received as part of that R30.1m pay-out. Molefe was in court, listening attentively. Read this report in full at The Citizen. Read too, Brian Molefe must pay back R11m, DA’s legal counsel tells court, at Fin24. And also, High on emotion, low on facts, says Molefe’s lawyer of pension payback case, at BusinessLive Brian Molefe: I resigned and retired from Eskom at the same time Mail and Guardian reports that Brian Molefe on Wednesday argued that he remains the CE of Eskom because he resigned and retired at the same time — or he never left Eskom at all. Trade union Solidarity and the Democratic Alliance (DA) argued in the High Court in Pretoria that Molefe should repay the part of a R30m golden handshake already paid out to him under the guise of an early retirement. They took less than a combined hour to make their interlinked cases, which were extensively covered on paper. Molefe’s two senior counsel advocates, however, had much more to say in argument, some of it slightly odd. Since late in 2016, Molefe has been considered to have resigned from Eskom under a cloud, then said to have actually retired, then returned to the job, only to be fired from it. But in fact he both retired and resigned at the same time, his lawyer Arnold Subel told the court. Because resigning and retiring were not mutually exclusive, Subel said, there might have been a “classic misunderstanding” by the likes of the public and by Public Enterprises Minister Lynne Brown that Molefe had not been due a retirement package, but nothing that a court should take notice of. Read this report by Phillip de Wet in full at M&G. Read too, Molefe’s lawyer: 'He resigned, if you want to use that word', at Fin24. And also, Molefe claims rejected R30-m pension means he never really left Eskom, at Daily Maverick. As well as, Brian Molefe says he never left Eskom, at The Citizen Other internet posting(s) in this news category
Lonmin to cut social and labour projects and freeze ‘non-critical recruitment’ Reuters reports that platinum producer Lonmin plans to cut spending on social and labour projects and freeze "non-critical recruitment", part of an array of measures to save cash. This was disclosed in an unpublished presentation to stakeholders earlier this month in which the company signaled it would stop all discretionary spending and save R250m via energy and water initiatives. It also reiterated plans to cut capital spending. Cutting expenditure on social and labour plans (SLPs) could be problematic as mining companies are required to meet certain obligations to provide housing and other services to the communities around their shafts to maintain their operating licences. In September, Lonmin said it had been informed by the Department of Mineral Resources (DMR) that it had failed to meet some social and labour obligations, although it added that it did not think its operating licence was in jeopardy. Lonmin spent R270.8m on SLPs during the 2016 financial year, the last year for which it provided full details. Lonmin spokesperson Wendy Tlou said they were engaging with the DMR on the proposed adjustments to the plans. She also said "non-critical recruitment" involved "positions we can delay or do without for some time compared to critical roles you may need immediately for operational reasons". Read this report by Ed Stoddard and Zandi Shabalala in full at BusinessLive. See too, Lonmin crisis coming to a head after PIC demands board seats, at Miningmx Other labour / community posting(s) relating to mining
Numsa and United front to picket on Thursday at Eskom HO over 'apartheid wage gap' and other issues EWN reports that the National Union of Metalworkers of SA (Numsa) and the United Front will be picketing outside Eskom’s headquarters at Megawatt Park on Thursday over various issues involving the power utility. The union says it will hand over a memorandum of demands focusing on Eskom’s outrageous request for a 19.9% tariff increase and labour brokering, amongst other matters. The union says corruption on the part of Eskom’s management and board, as well as what it calls "the apartheid wage gap" in the power utility’s workplace, are some of its major concerns. Read this report by Koketšo Motau in full at EWN. Read Numsa’s press statement in this regard at Numsa online
Manufacturing a critical component in job creation, says Rob Davies ANA reports that Minister of Trade and Industry Dr Rob Davies said on Wednesday that manufacturing was a critical component of South African economic policy and was also important in creating and ensuring that there were jobs in the economy. He was speaking during a briefing to the parliamentary portfolio committee on trade and industry on the state of manufacturing and the Industrial Policy Action Plan (IPAP). According to the minister, though the production of digital and changes in manufacturing technologies has led to the decline in the sector, there was still an improvement and very strong linkages and multiplies to the service sectors that still sustained jobs in the economy. “Though the sector has many challenges and the economy is not performing as well as it ought to be performing, the performance in manufacturing sector is clearly doing a lot better than it would have been if we haven’t been doing the things we have been doing over the last few years, especially the intervention in the automotive sector, clothing and textile, agro-processing, film and Business Process Outsourcing (BPO) and others,” said Davies. He reiterated that there was a need to bring about change in the structural characteristics of the SA economy, especially in the manufacturing sector, as well as in the patterns of ownership, participation and inlcusion. Read this report in full at The Citizen Other internet posting(s) in this news category
Junior doctors fear 2018 internship crisis The Mercury reports that KwaZulu-Natal (KZN) is among the three provinces which have not filled all their allocated medical intern posts, driving anxious final year students to campaign on social media. Michael Van Niekerk of the Junior Doctors Association of SA (Judasa) said the campaign was to raise awareness of the possibility of unemployed doctors if the applicants were not allocated in time to take up posts on 1 January. Judasa falls under the SA Medical Association (Sama), whose chairman, Dr Mzukisi Grootboom, said 280 final year medical students could be affected. He claimed that the number of student doctors eligible for internships in 2018 now exceeded the available pool of funded posts in the country. But, health minister Aaron Motsoaledi said there were more than enough posts and it was the provinces that were not releasing the funds to fill them. Fearing that a “crisis” was looming, Sama and Judasa made a call on premiers David Makhura (Gauteng, Helen Zille (Western Cape) and Willies Mchunu (KZN) “to urgently instruct their provincial fiscus to allow for the funding of more medical intern posts to cover the shortfall.” Read this report by Nosipho Mngoma in full at The Mercury. Read too, Medical internship placement delay causing headache for medical graduates, at TimesLive
Remgro’s Johann Rupert asks investors for input on executive remuneration BusinessLive reports that Johann Rupert, chairman of investment behemoth Remgro, has called on shareholders to help find an appropriate structure for remunerating executives. At Remgro’s AGM on Wednesday some resistance was shown in the nonbinding advisory vote on the remuneration policy, with almost 19% of shareholders against the resolution. The votes against were closer to 40% if the Rupert family vote was stripped out. Rupert said he believed the votes against stemmed from Remgro not having clear key performance indicators (KPIs). "I’d like to ask these investors to advise us how they would like us to set up these KPIs. It’s difficult when you’re a diversified investment holding company to apportion blame or reward." Rupert also said he had empathy with investors on the remuneration issue. "Help us set up a better system. It will help if we can work together to find a better solution for all." But he also pointed out that asset managers who had voted against the resolution operated on cost structures that were markedly higher than those incurred by Remgro. Read this report by Marc Hasenfuss in full at BusinessLive Other internet posting(s) in this news category
Paternity leave bill stipulates that father must be on birth certificate HuffPost reports that part of the conditions specified in the Labour Laws Amendment Bill, adopted by the National Assembly on Tuesday, is that a father cannot be approved for paternity leave unless his name is on the child's birth certificate. "This is to ensure that men can't use and abuse the bill," said Cheryllyn Dudley, the African Christian Democratic Party (ACDP) MP who brought the private member's bill to parliament. The Bill would give fathers 10 days’ parental leave and it also provides for adoption and commissioning parental leave (leave for parents whose newborns have been commissioned via a surrogate pregnancy). According to the Bill, an employee who is an adoptive parent of a child who is less than two years old is entitled to adoption leave of two months and two weeks consecutively. In the case of two adoptive parents, one of the employees is entitled to adoption leave, and the other to parental leave. The same provision applies for parents-to-be via surrogacy. The Bill will now be referred to the National Council of Provinces (NCOP) for adoption and it could come into effect by June next year. Read this report by Zongile Nhlapo in full at HuffPost. Read too, Paid leave bill hailed as landmark achievement for parental rights, at SowetanLive. And also, Dispute about originator of Bill that grants ‘paternal’ leave, at TimesLive EU court rules contract workers entitled to paid annual leave Reuters reports that the EU’s highest court ruled on Wednesday that employers must provide paid annual leave for employees in a case that could impact workers in the so-called "gig" economy (which includes short-term and freelance contracts rather than permanent jobs). The case involved a salesman for The Sash Window Workshop in Britain employed from 1999 until 2012 on a self-employed, commission-only contract with unpaid annual leave. The salesman took the company to court seeking payment for leave, taken and not paid for, as well as for days not taken. A British court ruled that he was a "worker" under EU law, but UK judges asked the European Court of Justice whether the company was obliged to pay him for the leave he had not actually taken. The EU court said it was a fundamental right for workers to be able to rest and that such a right would not be guaranteed if the salesman was forced to take unpaid leave and only then be able to bring action to claim payment. Read this report by Lily Cusack in full at BusinessLive Other internet posting(s) in this news category
Highveld Steel recoups nearly 700 of the 1,800 jobs it shed in February 2016 Business Report writes that nearly 700 of the 1,800 jobs lost when the entire workforce of Evraz Highveld Steel and Vanadium was retrenched in February last year have been recouped. This has been achieved through the resuscitation of part of the steel business, which is currently in business rescue. Business rescue practitioner Piers Marsden indicated on Wednesday that they had signed a contract manufacturing agreement for one particular part of the business, which had enabled them to take it from “zero jobs to about 700” in the past 18 months. But it had not been possible to resuscitate the business as a fully integrated steel and iron manufacturer, even though components had been resuscitated. Marsden added that they had constant engagements with various players in government and various governmental organisations in an attempt “to preserve those 700 very hard fought jobs”. Marsden pointed out that there was an obligation in terms of the severance agreement signed with the two unions and non unionised staff at Highveld to offer jobs that became available to the previous employees and a large majority of the 700 jobs would have been made available to the previous employees. While the full severance liability from February last year has still not been settled, some R100m of about R330m has been paid out. Read this report by Roy Cokayne in full at Business Report. Read too, Highveld agrees to Competition Commission-proposed R1m penalty, at Engineering News
Koko set to testify in his Eskom disciplinary hearing on Thursday after key witnesses fail to show Fin24 reports that suspended Eskom executive Matshela Koko will testify at his disciplinary hearing on Thursday, after key witnesses failed to show. The power utility, which has pledged to conduct a “fair and transparent” hearing, noted in a statement on Wednesday that there had been allegations about witnesses who had declined to testify in the proceedings. It stated in that regard: “It is important to note that the current evidence leader was duly instructed to do all that was necessary to obtain the attendance of all the identified witnesses. Some witnesses have chosen to decline the request based on legal advice." Interim chairperson Zethembe Khoza said Eskom “had no option but to continue with the hearing in the absence of these witnesses and to close its case on 25 November 2017. Accordingly, Mr Koko will be testifying in his defence on 30 November 2017 at 09:00.” Koko faces charges relating to nepotism and conflict of interest. In the view of investigative journalist Chris Yelland, the final outcome of Koko’s hearing, expected by about 10 December, might simply be a precursor to a massive settlement and golden handshake to Koko to see the back of him. Read this report in full at Fin24 City of Joburg employee busted in connection with R28m revenue refunds scam TimesLive reports that a City of Johannesburg operational manager at the refunds unit of the revenue department was arrested on Wednesday by the Hawks in connection with a R28m revenue refunds scam. It is alleged that the employee defrauded the City of about R900,000‚ which was paid in two transactions to a certain company and then into his account. Joburg mayor Herman Mashaba said three people handed themselves over to the Hawks on Wednesday in connection with the same case. The suspects will appear in the Johannesburg Commercial Crimes Court on Thursday on charges of theft‚ fraud and corruption. The four arrested suspects join 14 suspects who were arrested in August in connection with fraudulent refunds. Thirteen of the 18 suspects are City officials. The investigation by the Hawks has revealed that the suspects in the case defrauded the City of R28m by claiming fraudulent refunds purported to be on behalf of property owners. In some instances the property owners colluded with the officials to inflate refunds due to them. Read this report by Nomahlubi Jordaan in full at TimesLive Other internet posting(s) in this news category
City of Cape Town wants its plan to take over railway services expedited EWN reports that the City of Cape Town says plans for it to take over the rail network need to be expedited. Last month, the council approved an initial business plan for the metro to own the management of the network in the Cape in the hopes of improving the service. This means the City can now approach the national government for approval and funding. It is common knowledge that overcrowding, rampant crime and vandalism are just some of the issues plaguing Metrorail and its commuters on a daily basis. On Thursday morning the City's Transport Mayco member Brett Herron experienced what thousands of ordinary Capetonians have to endure on a regular basis. He travelled from Khayelitsha to Cape Town, on the busiest and most dangerous line in the city. The three-hour journey was an eye-opener for him and he commented: “I’m so pained and so emotional. What’s important now is the sense of urgency of which we have to work.” This short report by Monique Mortlock is at EWN
See our listing of links to labour articles published on the internet on Wednesday, 29 November 2017 at SA Labour News
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Get South African labour news reports at SA Labour News