Today's Labour News
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.
Lily Mine to return to action, says deputy minister
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Business Report writes that Deputy Mineral Resources Minister Godfrey Oliphant said on Monday that Lily Mine was expected to return to production. He also told the Bench Marks Foundation conference that the container where three mine workers have been trapped since February last year was likely to be retrieved by as early as January.
He said the Industrial Development Corporation (IDC) had agreed to inject the cash needed in order to return the mine to production.
This was after attempts by the mine’s business rescue practitioner to attract investors fell through.
In August merger talks between Toronto-listed Galane Gold and Vantage Goldfields that were aimed at reviving production at Lily Mine collapsed at the last minute.
The failure of the talks was a major setback for Lily workers and the surrounding community, which depend on the mine for an income.
Another promise by Brian Barrett, the chief executive of Canadian gold-mining company AfroCan Resources, to take over the mine fell through amid allegations of fraud.
The collapse of the Galane transaction meant that creditors, including the workers, would have to wait before they received their outstanding money.
“The business rescue practitioner failed three or four times to get investors to fund
the reopening of the mine,” Oliphant said. “We called him a month ago to say we will give you a last chance to raise the money.”
Oliphant blamed the shareholders for rejecting a proposal to approach the IDC for funds.
“The IDC was willing to provide funds to develop the shaft, but the mine managers rejected the funds as they sought more money. We are now back to square one again. We are back
with IDC,” said Oliphant.
Vantage Gold Field went bankrupt after the collapse at Lily Mine. It was forced to close operations in both Lily Mine and Baabrook.
Lily employees Yvonne Mnisi, Pretty Nkambule and Solomon Nyerende remain trapped in an underground container that collapsed in an accident last year.
Rob Devereux, from Sturns business rescue practitioners, yesterday said that the IDC
had in fact agreed to inject R310 million to revive the mine and retrieve the container.
Several jobs would be preserved at Lily Mine and Barbrook, with the R310m from IDC.
Devereux said that in fact Mineral Resources Minister, Mosebenzi Zwane had made a proposal in November to shareholders which was rejected.
“Zwane’s proposal was for the IDC to invest all the money, meaning that shareholders would walk away with only R1.
“The shareholders had invested R900m in the mine and they made a counter proposal. Hence I could not move forward with the proposal,” he said.
He said his role would be to preserve jobs.
“I am not interested in shareholders, my role is to preserve jobs, open the mine (again) and pay creditors – in that order,” he said.
The original of this report by Dineo Faku is on page 18 of Business Report of 24 October 2017
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‘Forestry workers treated like slaves’
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The New Age reports that the chairperson of the portfolio committee on agriculture, forestry and fisheries, Rosina Semenya said forestry workers were treated like slaves in some parts of the industry, with no worker benefits
Semenya said on Sunday directors of firms operating in forestry will be invited to Parliament to explain why conditions of workers in the sector were not improving.
“It is concerning that more than 20 years of democracy people of the southern Cape still worked like slaves with no benefits in the sector,” Semenya said yesterday.
The last meeting of the parliamentary committee next month will be with company directors, owners and the Department of Agriculture, Forestry and Fisheries, she said. “What the committee has heard about what is happening in the southern Cape is unacceptable. The sector cannot refuse to transform,”she said.
“We cannot have a situation in our country where companies want to extract resources and yet not empower communities.
It is a shame for our democracy that our people still live in slave-like conditions,” she said. The committee conducted public hearings on the National Forests Amendment Bill in Knysna on Friday. It heard from the communities that women contractors in the forestry industry were being culled and that the living conditions were those of “bush people”.
Semenya said the Bill would address this anomaly and that it would promote participation of women-owned contractors in the industry.
“The valuable input from these communities will assist the process of amending the bill greatly.”
She said the conditions as described by communities were similar to those found in other forest areas throughout the country. The last hearings will be conducted in Limpopo and Mpumalanga next month.
The original of this report appeared on page 13 of The New Age of 23 October 2017
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Body of ‘zama zama’ left at side of Riverlea main road for five hours
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The Star reports that the body of an alleged ‘zama zama’ (illegal miner), said to be Zimbabwean, has been found on the side of a main road in Riverlea.
A group of seven men, said to be friends of the deceased, were at the scene, waiting for the body of their “co-miner” to be fetched. One of the men, who did not want to be identified, said he received a call from someone who phoned from a private number and informed him a body was “lying on the ground”, and he rushed to the scene. The men said they had been waiting for the forensic team to arrive and have the body removed since 6am. Five hours later, the body was still there.
David Mpofu, 36, a cousin of the deceased who resides in Soweto, Orlando, said he suspected that the reason authorities had taken so long to help was that they were foreigners. “We just want a mortuary to fetch him because our lives are on hold right now and we can’t leave our own lying in the bush,” he said.
According to Mpofu, the dead man had seven children, and they were planning to bury him in Zimbabwe as soon as they had organised finances to make the necessary arrangements.
Constable Thumi Kraai said the SAPS received the alert only at 7am. She said the man had not yet been identified and investigations were under way. “No family came forward while we were at the scene,” she said. “Maybe they were scared because chances are that they too are illegal miners.”
Kraai added that skull of the deceased had been fractured. A post-mortem would be needed to establish the cause of death, she said.
The original of this report by Siphumelele Khumalo is on page 2 of The Star of 20 October 2017
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SA trade unions take stand against appointing politician as PIC chairperson
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Business Report writes that South Africa’s trade unions have unanimously opposed the current favoured government’s position of a deputy minister of finance chairing the Public Investment Corporation (PIC) board, while calls have mounted for the PIC to invest in projects that promote inclusive economic growth and job creation.
This was revealed yesterday by Yunus Carrim, chairperson of Parliament’s standing committee on finance.
Carrim said in terms of the PIC Memorandum of Incorporation, it was not required that the board chairperson be the deputy minister of finance.
However, he said the unions acknowledged that the minister and deputy minister have to have a relationship with the PIC for a variety of reasons, including the fact that the pensions of public sector workers are in the form of a “defined benefit pension fund”.
“The committee proposes that the minister and deputy minister engage with the trade unions on their proposals in this regard. The committee will take this issue further at the November briefing,” Carrim said.
This followed Tuesday’s briefing by the Government Employees Pension Fund (GEPF), PIC and the trade unions to the committee on the use of public sector workers’ pension funds for investment purposes.
In that meeting the PIC, as per the directive from the Finance Minister Malusi Gigaba earlier this month, published a full list of its unlisted assets, which showed growth of 52 percent to nearly R70 billion in the year to end-March. Gigaba had said his directive was to ensure transparency and further build confidence in the institution.
Stakeholders
In the same communiqué, Gigaba also noted calls by labour unions for a representative of labour on the PIC board. He said he was considering this request and would arrange a meeting with labour stakeholders to discuss the matter.
Sizwe Pamla, the spokesperson for Cosatu, said yesterday that the federation felt the Treasury had too much influence on the PIC and that must change.
“If you want to capture the PIC, you just have to deploy a pliable deputy minister who will then be seconded to chair the PIC board. Parliament as the representative of the people must have a more prominent role in the appointment of the PIC chairperson,” Pamla said.
His views were shared by Fedusa.
Dennis George, the general secretary of Fedusa, said yesterday that it was undesirable for the deputy minister of finance to be the chairperson of PIC as politics grip the decision-making processes at PIC.
“We want the role of the chairperson of the PIC depoliticised and an independent chairperson appointed.
“The other issue is that the current chairperson was implicated in the State of Capture report for his shenanigans while he chaired the Passenger Rail Agency of South Africa (Prasa),” George said.
In September, The Star reported that plans were afoot to oust PIC chief executive Dan Matjila in a “plot” to hijack the institution. The plan, according to The Star’s sources, was for the incumbent chief executive to leave and for an alleged Gupta family appointee to take over. The National Treasury has vehemently denied the allegations and said it supported Matjila.
The Treasury’s assurances of full backing for Matjila have persisted unabated, while some unions have threatened to ditch Africa’s largest fund manager if the speculation of the capture of the PIC proves to be true.
Johan Kruger, the deputy chief executive of Solidarity, said yesterday that the organisation’s members were worried about alleged attempts to capture the PIC.
“We need to get answers to try to reassure them and the public at large that their funds are safe,” said Kruger.
The original of this report by Kabelo Khumalo appeared on page 20 of Business Report of 19 October 2017
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Roundup of labour news on Thursday, 19 October 2017
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In our Thursday roundup, see summaries
of our selection of South African labour-
related stories that appeared since
midafternoon on Wednesday, 18 October 2017.
Roundup of labour news on Wednesday, 18 October 2017
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In our Wednesday roundup, see summaries
of our selection of South African labour-
related stories that appeared since
midafternoon on Tuesday, 17 October 2017.
Workers ‘must be on PIC board’
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The Star reports that labour federations and unions on Tuesday set aside their differences and spoke with one voice in demanding worker representation on the board of the Public Investment Corporation (PIC).
Organised labour, during presentations to the finance standing committee, vehemently opposed the use of PIC funds to bail out ailing state-owned enterprises, including SAA, which have been bedevilled by charges of maladministration and corruption.
There were also questions about why Deputy Finance Minister Sfiso Buthelezi was the automatic chairperson of the PIC.
This happened amid growing fears about moves to turn the PIC into the next state project for state capture, and perceptions that the suspicious investigation into the corporation, ordered by Finance Minister Malusi Gigaba, was a ploy to get rid of CEO Dan Matjila.
In a presentation to the committee, Cosatu’s parliamentary co-ordinator Matthew Parks said no decision could be allowed to be made about public servants’ pensions without the involvement and agreement of his federation and its union.
“Workers and our members have had enough of their hardearned taxes being looted by a corrupt elite in both the public and private sectors,” Parks said.
He said the government should do its job by removing SAA board chairperson Dudu Myeni and institute a full investigation at the national carrier. Parks was emphatic that the cabinet should not tamper with PIC funds.
Fedusa general secretary Dennis George said public servants feared the PIC would be used for bailouts. “We demand a worker director on the PIC board,” George said.
The Public Servants Association’s Tahir Maepa said their fears were well founded.
“It is critical that people who sit in the PIC are people who champion the interests of workers,” he said, adding there should be 50% representation from labour.
“This will bring comfort labour,” Maepa said.
Zwelinzima Vavi of the South African Federation of Trade Unions (Saftu) said they had learnt that there was a queue seeking to borrow from the PIC to bail out SOEs bankrupted by “mismanagement and corruption”.
“This is the workers’ money,” he said. “People to give such a mandate should be the workers.
“This is their contributions and no one else must have a mandate,” Vavi said.
“It is something we will object to, oppose and go into the streets about. We know people to be impacted will be the poor and the working class,” Vavi said.
“Any bailout will consequently impact directly not only on government employees but broader society.
“Such a move, therefore, will be an assault on the living standards not just of workers but of the people of the country as a whole.”
Vavi said the PIC was the proper vehicle to invest the government employees’ pensions as long it was not used as a cash cow by desperate looters. to
This report by Mayibongwe Maqhina is on page 5 of The Star of 18 October 2017
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Roundup of labour news on Tuesday, 17 October 2017
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In our Tuesday roundup, see summaries
of our selection of South African labour-
related stories that appeared since
midafternoon on Monday, 16 October 2017.
Roundup of labour news on Monday, 16 October 2017
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In our Monday roundup, see summaries
of our selection of South African labour-
related stories that appeared up until
midafternoon on Monday, 16 October 2017.
Roundup of labour news on Monday, 16 October 2017
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In our early Monday roundup, see summaries
of our selection of South African labour-
related stories that have appeared since
midafternoon on Friday, 13 October 2017.
Adviser instructed to repay pensioners R1m investment
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Business Report writes that a Mossel Bay financial adviser who denied providing financial advice to an elderly couple has been ordered to repay them the R1 million they jointly invested on his advice in the failed Bluezone property syndication scheme.
Pensioners Guillaume Groenewald and his wife Maria invested R500 000 each in June 2006 in the Flextronics income plan promoted by Bluezone Property Investments on the advice of Roelof Nel of R&M Advisors.
The couple claimed Nel informed them that their investments were safe and could could never “go bust” or fail because the Flextronics building underlying the investment was already established.
However, Noluntu Bam, the ombud for financial services providers (Fais), said in her determination that Nel’s contention that the couple held shares in the property was incorrect because their money was invested in a holding company that lent investors’ funds to a property company.
Bam said that in exchange for the loan, the holding company would then obtain 85 percent of the shares in the property company.
She stressed Nel had not provided any supporting documentation to suggest his clients had a right to the immovable property.
Bam said Nel denied rendering financial advice to the couple and they had made a specific “once off request” despite Nel’s earlier response to her office, where he conceded that he rendered financial services to the couple and even conducted a risk profile analysis for the purpose of providing such advice.
Bam said the undisputed facts proved that Nel advised the couple.
Nel claimed Guillaume Groenewald ignored safer and conservative investments because he was “shopping” for the best interest rates.
He further claimed he did not make his own representations to the couple but relied on material provided by Bluezone, allegedly approved by the Financial Services Board.
Nel further denied advising the couple the investment was guaranteed and claimed they rejected guaranteed options.
Bam said Nel believed he complied with the Fais Code in that he provided the couple with the investment documentation and allowed them time to consider it without any pressure from his side and strongly denied causing their loss.
She said the couple’s losses were caused by Nel’s failure to adhere to the law when providing advice to the couple and had he truly appreciated what he was advising them to invest in, he would have steered them in a different direction.
This report by Roy Cokayne appeared on page 20 of Business Report of 12 October 2017
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Roundup of labour news on Thursday, 5 October 2017
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In our Thursday roundup, see summaries
of our selection of South African labour-
related stories that have appeared since
midday on Wednesday, 4 October 2017.
Roundup of labour news on Wednesday, 4 October 2017
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In our Wednesday roundup, see summaries
of our selection of South African labour-
related stories that have appeared since
midday on Tuesday, 3 October 2017.
Roundup of labour news on Tuesday, 3 October 2017
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In our Tuesday roundup, see summaries
of our selection of South African labour-
related stories that have appeared since
midday on Monday, 2 October 2017.
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Two more arrested for assassination-style murder of Harmony Gold regional manager ANA reports that two more suspects, aged 27 and 35, have been arrested for the murder of Harmony Gold manager Simphiwe Kubheka, police said on Monday. Khubeka, who was a Free State regional manager for the gold producer, was shot dead in his car assassination-style on Thursday last week. The two suspects were arrested on Sunday. A third suspect, Lehlohonolo Thethe, 25, who was arrested on Friday, appeared in court on Monday. All three suspects are expected to appear in the Welkom Magistrate’s Court on Wednesday. There has been speculation that Kubheka was murdered by illegal miners. A short report is at Mining Weekly Vehicles of Bapo-Ba-Mogale tribal authority torched at protest for mine jobs ANA reports that no arrests have been made after four vehicles and a bus belonging to the Bapo-Ba-Mogale community in Bapong near Brits were set alight last week. Police are investigating malicious damage to property charges. Bapo-Ba-Mogale Tribal Authority spokesperson Vladimir Mogale said some unemployed people made their way to the royal palace on 27 September to raise concerns about job opportunities in the mines. "The community [unemployed] had raised issues with the leadership that relating to employment. They were frustrated that they were not employed in terms of an earlier agreement, this led to burning of vehicles," he indicated. In July at least six trucks and two buses were set alight during a protest related to unemployment in Bapong. A short report by Molaole Montsho is at IOL News NUM signs three-year agreement with Petra Diamonds covering multiple operations ANA reports that the National Union of Mineworkers (NUM) has signed a three-year wage agreement with Petra Diamonds covering operations at the Cullinan Diamond Mine, Finsch Diamond Mine, Kimberley Ekapa Mining Joint Venture and Koffiefontein Joint Venture. This comes after a week-long strike when the union withdrew the labour of its members working in Petra Diamonds at the Koffiefontein Mine. The three-year wage agreement with Petra provides for annual increases to NUM members in the region of 9% to 10% for year one, and 8.5% for years two and three. It will be effective from July 2017 until June 2020. The living-out-allowance will amount to R1,200 for year one, R1,350 for year two, and R1,500 for year three. A home ownership scheme subsidy will amount to R1,300 this year and escalate to R1,500 in year three. Other improvements in conditions of service are detailed in the NUM’s press statement. Read this report in full at The Citizen. Read the NUM’s press statement in this regard at NUM online
Marikana: 653 plaintiffs lodged claims worth over R1.1bn, says SAPS News24 reports that MPs heard on Monday that the SA Police Service (SAPS) was in the process of settling 653 civil claims worth R1.17bn for injuries and deaths that occurred in the 2012 Marikana massacre. The exact amount from all 653 plaintiffs totalled R1,170,946,235 going back to 2014, legal services commander Lieutenant General Sally Kahn indicated. "This is in respect of injuries as a result of the shooting, claims to loss of support, assault, malicious prosecution and injuries as a result of arrest and detention," Khan told the portfolio committee on police. The dependents of 37 deceased miners have submitted claims for loss of financial support, 32 of which have been submitted to an actuary. One case has already been settled to a deceased miner's family of seven for just over R3m, paid in June this year. Other offers between R50,000 to R100,000 have been made for arrest and detention claims, depending on the number of days the plaintiffs were detained for. For those who filed assault claims, the SAPS awaits expert documents which will be made available at the end of November. Read this report by Paul Herman in full at News24
Farm worker (116) wins right to be buried on Limpopo farm EWN reports that centenarian John Chisale has been buried on the farm he had been fighting to live on after a High Court ruling in Limpopo on Friday. The current owner had been threatening to evict him and his family, and after Chisale died his body lay in a mortuary for weeks before the ruling made it possible for him to be buried on the farm on Sunday. The 116-year-old Malawian national began working on the Lephalale farm when he arrived in SA in 1947. Represented by the Nkuzi Development Association, Chisale first approached the courts in 2006 to challenge what he described as unfair treatment by Isabella Pistorius, the daughter of original farm owner. The association’s Vasco Mabunda said Chisale’s case has been made prominent by media coverage, but for many farm dwellers it was nothing new. Chisale is survived by his grandchildren and great-grandchildren who fear they may still be kicked off the land they call home. Read this report by Masechaba Sefularo in full at EWN Other internet posting(s) in this news category
Metalworkers to intensify wage strike at South32 Hillside smelter in Richards Bay ANA reports that the National Union of Metalworkers of SA (Numsa) on Monday vowed to intensify its strike against South 32 in KwaZulu-Natal after a marathon negotiation session to resolve the strike deadlocked. Over 600 members of the union last week downed tools at the global mining company’s Hillside aluminium smelter in Richards Bay over wages. They are demanding, among other items, a one-year 7.5% wage increase across the board, South 32 to contribute towards medical aid, a 20% performance bonus and R5,000 in housing allowances. Instead, South 32 is offering a three-year wage deal where in year one workers would get a 5.1% salary increase, no salary increase in year two but a R3,083 per month or R37,000 minimum cash payment, and an inflation based increase in year three. Numsa’s Irvin Jim commented: “Instead of giving a wage increase they want to try and bribe our members with cash. Their behaviour is reminiscent of racist farm owners who pay workers using a tot system of paying with alcohol, instead of paying wages. As long as they refuse to increase the basic salary, they are stealing from our members and their families.” Read this report in full at The Citizen Striking 10111 call centre workers threaten legal action against SAPS TimesLive reports that police emergency call centre workers are forging ahead with an unprotected strike and have threatened to take legal action against their employer. The SA Policing Union (Sapu) and the SA Federation of Trade Unions (Saftu) briefed the media on Monday and said they were opposed to the resolution agreement that was signed by the Police and Prisons Civil Rights Union (Popcru) and management. Sapu president Mpho Kwinka said: “This agreement does not address the issues we are fighting for. If they go ahead and impose the agreement we will take it to court.” National negotiator Alfred Tlou said the agreement in contention would transfer call centre agents from being public service agents to the police services. According to him, this would not benefit the workers when migrated and was also a way to get rid of some of the staff. Read this report by Mothusi Masemola in full at TimesLive. See too, Sapu, Saftu consider legal action against SAPS over 10111 call centre strike, at EWN. Read the Sapu/Saftu press statement in this regard at Saftu online Emergency call centre strikers to march to Union Buildings on 16 October eNCA reports that 10111 emergency call centre workers will continue with the strike they initiated in July and aim to march to the Union Buildings on 16 October to demand a review of their salary grading. “Taking into account the work that these people do, it is more dangerous than the work that is being done by other call centre members who are earning more than what they are earning,” SA Policing Union (Sapu) president Mpho Kwinika said. He went on to indicate: “A case study was done and when it was concluded, the police had to review salary grading from level five to seven, which was feasible and doable. But when general Phiyega was out of office, those who came in felt that they would no longer implement.” Sapu also said plans to reduce police numbers would only exacerbate the crime situation in places like Phillipi in Cape Town. Read this report in full at eNCA. See too, SA police ministry doesn’t care about 10111 users, says Vavi, at The Citizen. And also, Luister na ons, vra 10111-werkers, at Netwerk24 (limit on access). As well as, Our families are suffering, say striking 10111 call centre workers, at News24 Other internet posting(s) in this news category
Samwu members accuse Joburg mayor Mashaba of sowing divisions within union EWN reports that members of the SA Municipal Workers’ Union (Samwu) in the Joburg region have accused Mayor Herman Mashaba of trying to divide and destabilise the union for his own political gain. This follows the reappointment to City Power last week of Vuyani Singonzo, who claimed he was unfairly dismissed by the previous ANC-led government for exposing corruption. Samwu’s Bafana Zungu said Mashaba wanted to ensure the union was not functioning nor effective. “He takes people who are former leaders of Samwu and influences them to fight his battles.” But Mashaba clasimed Zungu was not part of the legitimate Samwu faction which was being recognised. A Labour Court ruled Zungu faction was legitimate, but an appeal is still pending. Samwu said in a statement last month that it supported a motion of no confidence in Mashaba which the ANC tried to file in the city council. A short report by Mia Lindeque is at EWN
SAPS denies plan to shed posts, but is looking to freeze 3,000 positions The Star reports that the Police Ministry has dismissed reports that it plans to shed 3,000 jobs to curb its budget spending, with spokesperson Vuyo Mhaga saying the plans in its performance report believed to have been tabled before the National Treasury had been misinterpreted. “All we are doing is freezing 3,000 posts due to economic constraints … We are now sitting with about 195,000 posts filled and are short of about 3000 (posts) to reach our target. For financial reasons, we will have to freeze those posts and not hire more personnel,” said Mhaga. But he could not say which posts had been frozen. The SAPS’s national spokesperson, Brigadier Vishnu Naidoo, said they were recruiting new employees as they usually did. But the acting police commissioner’s spokesperson Colonel Athlenda Mathe indicated that the SAPS was going through a rationalisation process that would only affect office workers and not police officers on the ground. “We are looking at giving people additional work to do. In the case of someone dying or resigning, we will not fill that vacancy. Instead, an existing employee will take over those duties. It’s a cost-saving measure, but that process has not started yet.” Read this report by Lindile Sifile in full at The Star
Barclays Africa grants CEO Maria Ramos a R24m long-term incentive award Business Report writes that Barclays Africa has awarded chief executive officer Maria Ramos a R24m long-term incentive award, the company announced on Monday. The award was designed to incentivise performance through a combination of financial and non-financial performance targets and would vest no earlier than 31 July 2020. This, the company said, was subject to the achievement of performance targets. Barclays also announced that it had granted long-term incentive awards to Deputy Chief Executive Officer David Hodnett (R21m), Deputy Chief Executive Officer Peter Matlare (R19.5m), Finance Director Jason Quinn (R14m) and Group Company Secretary Nadine Drutman (R5m). This short report is at Business Report
TVET workers in Joburg block entrance to Parktown college over pay progression Sowetan reports that disgruntled workers from seven Central Johannesburg Technical and Vocational Education and Training (TVET) branches blocked the entrance to the college in Parktown on Monday‚ demanding pay progression. The college‚ which is preparing for graduations on Friday and exams next week‚ was disrupted by angry workers who claimed they have waited for three years. “Graduations on Friday will not happen if we are not paid what is due to us. Same thing will happen with the exams‚ we will keep all TVET colleges closed‚” threatened the workers, who had camped outside the college gate. Desmond April, principal of the colleges, said the workers were on an illegal unprotected strike and added: “When I arrived this morning the gates were locked. Workers are complaining about their monies that have been outstanding since April 1 2015 when the department migrated the colleges. A resolution was made by the department - not the college.” Read this report by Yoliswa Sobuwa in full at TimesLive Other internet posting(s) in this news category
Labour federation Fedusa appeals to Transport Minister to appoint a new Prasa board City Press reports that the Federation of Unions of SA (Fedusa) and its affiliate in railway passenger transport, the United National Transport Union (Untu), have made an urgent call for to Transport Minister, Joe Maswanganyi, to appoint a new Passenger Rail Agency of SA (Prasa) board. Fedusa says it is “deeply disturbed” by the absence of a board and CEO at Prasa. Prasa has been without a board since July when the term of the previous board under the three-year chairmanship of former North West Premier, Popo Molefe, came to an end. Furthermore, most of the executive management positions, including that of CEO of Prasa, are currently held by managers in an acting capacity. Read this report by Vukile Dlwati in full at City Press
See our listing of links to labour articles published on the internet on Monday, 2 October 2017 at SA Labour News
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South Africa’s latest job statistics paint a gloomy picture
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Business Report writes that the manufacturing industry turned out to be the biggest loser of jobs, according to quarterly employment statistics released by Statistics SA yesterday, which showed that South Africa’s employment decreased by 34000 to 9.617million in the three months to June.
Economists said South Africa’s sluggish growth and low business confidence decimated jobs.
The industry’s 1.1percent quarterly decrease in June compared with March was attributed to decreases in employment in the food, beverages and tobacco; textiles, clothing and leather; basic metals, fabricated metal products, machinery and equipment and office; accounting and computing machinery sectors.
However, on a year-on-year basis, the industry recorded a 0.2 percent increase, compared with June last year, according to the report released by statistician-general Pali Lehohla.
Gerrit van Rooyen, economist at NKC African Economics, said the drop in jobs and average real earnings reflected stagnant economic growth and depressed business sentiment.
The large decline in manufacturing jobs was despite the sector exiting a three-quarter recession by accelerating 1.5percent quarter-on-quarter in this year’s second quarter.
“Manufacturing remains hampered by low domestic demand, low confidence levels and economic strain in some of South Africa’s export destinations. However, improved economic growth in the mining… and trade… sector in (the second quarter), supported higher employment in these sectors during the same quarter,” said Van Rooyen.
“Nevertheless, due to meagre economic growth – we forecast gross domestic product growth of only 0.7 percent for 2017 – the persistence of large skills shortages and a lack of employment-stimulating policies, the outlook for employment is very bleak over the near and medium term.”
Paralysis He said economic stagnation and policy paralysis were impeding the creation of sufficient employment opportunities to absorb new entrants into the labour market and, therefore, contribute to continued high levels of unemployment and income inequality.
Other industries cited were construction with a 1.8 percent decline, community services with a 0.4 percent, transport with a 1.1 percent decline and business services with a 0.05 percent decline.
However, on an annualised basis employment increased by 0.1 percent. The increases were in mining, which scored a 0.6 percent quarterly increase in June 2017, compared with March 2017; a 2 percent annual increase in June 2017 compared with June 2016.
Ian Cruickshanks, the chief economist at the SA Institute of Race Relations, described these statistics as “worrying indeed”. He said while there was some year-on-year growth, what was particularly of concern was the quarter-on-quarter decline.
“Jobs mean retail spending and fewer jobs mean fewer people spending,” said Cruickshanks. “This has a negative impact on the economy… the economy is in trouble.”
Low confidence He attributed the job losses mainly to low business confidence in the country.
“This clearly illustrates the low-growth situation we have and if this continues we could even end up with no growth,” he said.
Wholesale and retail trade recorded a 0.1 percent quarterly increase in the three months to June, compared with the previous quarter and a 2.3percent annual increase in the 12 months to June compared with last year.
The country’s employment rate decreased to 43.3 percent in the second quarter from 43.74percent in the first quarter of this year, according to macroeconomics website Trading Economics.
It said the employment averaged 43.21percent from 2000 until 2017, reaching an all-time high of 46.17percent in the fourth quarter of 2008 and a record low of 41percent in the first quarter of 2004.
StatsSA also reported that gross earnings paid to employees showed a 0.4percent decline in the quarter to June and this was attributed to decreases in business services industries. However, year-on-year, gross earnings recorded a 6percent increase.
The original of this report by Sizwe Dlamini appeared on page 18 of Business Report of 29 September 2017
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Roundup of labour news on Tuesday, 26 September 2017
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Roundup of labour news on Tuesday, 19 September 2017
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Roundup of labour news on Monday, 18 September 2017
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Gauteng Health MEC throws staff a lifeline after sheriff attaches accounts
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Sunday Independent reports that all Gauteng health workers will be paid on time despite the sheriff of the court’s warrant of execution to attach 14 departmental bank accounts. This is according to Gauteng MEC for Health, Dr Gwen Ramokgopa.
The order is for the payment of more than R30 million for medical negligence lawsuits brought against the department.
In recent weeks, the sheriff attached desks, chairs and computers from the department to force payment of R6.2m for medical negligence cases.
The action was brought by O Joubert Attorneys on behalf of a child who was brain-damaged when she was born at Pholosong Hospital in Tsakane in December 2009.
Gauteng department of health spokesperson Prince Hamnca said: “There are 2,040 old claims which date as far back as 2003. These equate to the value of R16,298,310,713.30 (R16.3bn) and there are 170 new claims for 2017-18 which equate to R1,572,446,766.12 (R1.5bn).”
Last week, the sheriff served the department with a warrant of execution to attach 14 bank accounts relating to four medical negligence cases for children who sustained brain damage at birth and are represented by O Joubert Attorneys.
Hamnca also confirmed that Telkom has cut off the department’s telephone lines because of non-payment of bills. “We can confirm that the landlines at central office have not been functional as result of payment related issues. The department has started discussions with Telkom to resolve the matter and we will be meeting with Telkom before the end of this week to present a payment plan. The department would like to apologise to the public for the inconvenience caused,” Hamnca added.
Asked how the department would pay its employees with its bank accounts frozen, Ramokgopa said there was no way her employees would not be paid. “All our employees are going to be paid on time and there is no threat whatsoever. There are people, including the opposition (parties), that want to say to South Africans, you (the department) are not good enough and your systems are not good enough. So we would like to assure South Africans that, even though we have inherited financial problems in litigation claims as well as accruals, we have made sure the budget that is meant to look after our patients is allocated to various hospitals and clinics. We are committed to making sure those funds are used to save lives,” Ramokgopa said.
The Gauteng department of health’s financial crisis has also had a heavy impact on staff members who deal with patients on a day-to-day basis. A nurse from Leratong Hospital in Mogale City said the nurse-to-patient ratio was one of the problems they had to deal with. “I work in a medical department where we have 40 patients and there is just four of us working here,” said Valentia Tshabalala (not her real name).
Tshabalala said the hospital runs short of linen and at times is short of medication. “We don’t even have enough beds. There are certain wards which are beyond the capacity they are supposed to be taking in. There are patients sleeping on the floor because there aren’t extra mattresses. This has resulted in incidents that could have been prevented if we had the workforce and the resources, she said.
A Baragwanath Hospital employee attested to the shortage of staff, pointing out that there are 120 pharmacy staff for the eight pharmacies on the premises. These pharmacies serve in excess of 60,000 out-patients a month and an average of 2,000 a day, excluding in-patients.
Although the hospital has put in place various plans to keep afloat, with the department focusing attention on Baragwanath Hospital because of the high numbers of patients it deals with, there are still infrastructure problems, security scares and the heavy workload of the nurses, said acting chief executive Dr Sifiso Maseko.
On Wednesday, Ramokgopa and Gauteng Premier David Makhura paid a surprise visit to the Steve Biko Hospital in Pretoria, where the hospital’s lifts were out of service for weeks. At one stage only one out of 28 lifts in the hospital was working. It had to be shared by patients, staff, visitors, food, waste and dead bodies.
Ramokgopa said the issue of how the department was going to deal with these financial challenges was before the executive council because the health department could not handle it alone. “And there is a special committee that is being chaired by the MEC for finance which is advising the executive council and the premier on the resolution of these issues,” she said.
Ramakgopa conceded that she was concerned about the low morale of her staff after furniture was attached, the telephone lines cut off and the ongoing bad publicity the department was getting because of the financial problems. “It has been my duty to balance the morale of the staff to improve, but also to ensure that they appreciate that we are all public servants and we need to be accountable,” she said.
The original of this report by Roland Mpofu and Amanda Maliba is on page 2 of Sunday Independent of 17 September 2017
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New law limits garnishee orders to 25% of salary
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Personal Finance reports that employees whose income is “garnisheed” to pay off their debts can breathe easier thanks to new legislation that was assented to recently. On 31 July, President Jacob Zuma signed into law the Courts of Law Amendment Act, which amends the Magistrates’ Courts Act. (This article does not indicated when the Amendment Act will come into operation). The gazetted Act can be read at http://www.justice.gov.za/legislation/acts/2017-007.pdf
The results of a Constitutional Court ruling, the amendments provide South Africans with greater protection against emoluments attachment orders (EAOs), the issuing and management of which have been poorly regulated in the past.
An EAO is an order issued via the courts by a creditor on an indebted worker’s employer, known as the “garnishee”. It compels the employer to deduct money from the worker’s salary or wage to pay the creditor. Previously, EAOs were authorised by the clerk of the court, regardless of where employees worked or lived, or whether they were present to defend themselves. Any number of creditors could demand such orders, without well-defined limitations.
“This lack of control gave credit providers extensive power to garnish workers’ salaries or wages, with little consideration for their ability to survive or their constitutional right to justice. The new law affords employees the opportunity to defend themselves and relieves the economic burden imposed on them,” says Arlene Leggat, a director of the SA Payroll Association. “
The law imposes a limit on the total amount that may be deducted, which can be no more than 25% of a worker’s salary or wage, regardless of the number of active EAOs against them. Leggat indicated: “Before, there was no limit and I’ve personally seen workers go home penniless, because their entire income was attached to debts. While everyone has a responsibility to pay their creditors, the situation was unsustainable.”
The legislation does not apply retrospectively, meaning that EAOs already in place are not affected. The 25% limit applies to basic income and excludes additional remuneration for overtime or other allowances, meaning that such additional remuneration cannot be garnished. Further, an EAO must be authorised by a magistrate – not the clerk of the court – at a court that has jurisdiction.
Before approving the order, the magistrate must consider whether the order is just and equitable, taking into account factors such as the size of the debt, the worker’s income and necessary expenses, and any existing EAOs.
Another protective mechanism is a clause that prohibits anyone from requiring a credit applicant to consent to a judgment, instalment order or EAO prior to the granting of a loan. Those doing so may be fined or imprisoned for up to three years. The same penalty applies to anyone who fraudulently obtains or issues a judgment, instalment order or EAO.
Payroll practitioners need to familiarise themselves with all the amendments, Leggat says. “It has a major impact on how they manage EAOs and their service to employees. Employers who are legally obliged to enforce garnishments orders will also benefit from their administrator’s understanding of the law and how it can be applied to relive their burden.”
The original of this report is on page 19 of Saturday Star of 16 September 2017
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Roundup of labour news on Thursday, 14 September 2017
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Roundup of labour news on Wednesday, 13 September 2017
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Hlaudi vows to fight SABC 8 ‘until the end’
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Saturday Star reports that former SA Broadcasting Corporation (SABC) boss Hlaudi Motsoeneng faces a R3 million lawsuit from the so-called SABC 8 journalists, but he has vowed to fight them “until the end”.
After the Labour Court costs ruling on Friday, Solidarity, which represented Foeta Krige, the late Suna Venter, Krivani Pillay and Jacques Steenkamp, said they would now make a legal claim of R1 million against Motsoeneng.
The Broadcasting, Electronic, Media and Allied Workers’ Union (Bemawu), which represented Busisiwe Ntuli, Lukhanyo Calata and Thandeka Gqubule-Mbeki would sue for R2 million.
On Friday, Judge David Gush of the Labour Court in Johannesburg held Motsoeneng liable for costs of the legal application lodged by the SABC 8 against their dismissals.
Solidarity spokesperson Anton van der Bijl said they would lodge their legal claim against Motsoeneng as he had been responsible for the SABC banning the showing and broadcast of violent scenes on all the public broadcaster’s platforms. “He was a decision-maker,” said Van der Bijl.
Bemawu president, Hannes du Buisson, appeared more cautious, saying their legal claim would be lodged against the SABC, Motsoeneng and chief executive of news and current affairs Simon Tebele.
But Motsoeneng said: “It is the beginning of the battle against me. This was a politically motivated case.”
Initially, in July last year, the SABC 8 journalists were represented by two sets of trade unions, Solidarity and Bemawu, but the court consolidated them into one on 24 February this year.
Solidarity and Bemawu successfully lodged an application to make costs claims against the SABC, Motsoeneng and Tebele on 28 March.
The arguments for costs were heard last Wednesday after the initial hearing on 15 August was postponed following the SABC’s decision to fire their lawyers.
During the costs hearing, Motsoeneng was confident he would be absolved from the claims on the grounds that he did not initiate disciplinary charges against the journalists.
He also said he was not cited in all previous hearings involving the journalists and SABC, but the ruling yesterday also placed him at the centre of the dispute.
Motsoeneng, the SABC and Tebele were ordered to pay the costs since the first application in July last year until Friday on an attorney and client scale, including the costs of “two counsel, jointly and severally the one to pay the others to be absolved”.
Gush did not give reasons for his ruling, which irked Motsoeneng and his supporters.
“I respect the judge and the ruling. I am going to ask my lawyers to oppose the ruling. It is not the end.”
This report by Baldwin Ndaba is on page 5 of Saturday Star of 9 September 2017
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Roundup of labour news on Friday, 8 September 2017
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Unions welcome deferred sugar tax
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Business Report writes that labour federations have called on the National Treasury to revisit submissions and engage meaningfully on the contentious sugar tax now that its implementation has been deferred.
This after the Treasury deputy director-general, Ismail Momoniat, announced on Tuesday that implementation of the so-called sugar tax would be delayed until April 2018.
“We hope that during this postponement period they will attend to some of the submissions regarding the issue of jobs,” said Cosatu spokesperson Sizwe Pamla.
The Treasury had proposed a 20 percent tax on sugar-sweetened beverages, which was supposed to be implemented in April this year.
It was aimed at curbing, among citizenry, obesity, diabetes and heart diseases.
But industry body, the Beverage Association of SA (BevSA), rallied against the proposed tax, saying if implemented, it would cost between 62,000 and 72,000 jobs and slash the gross domestic product by R14 billion.
“We understand the health risks that come with too much sugar consumption, but you can’t regulate human behaviour through legislation, especially if that legislation is going to cost people their livelihoods such as jobs,” Pamla said yesterday.
He said the sugar industry had lost 25,000 jobs since 2000 due to cheap imports from countries such as Brazil.
A further 15,000 employments would be at stake if the proposed legislation was implemented as is.
“The government must tread very carefully. We hope that the postponement will push them to revisit some of the submissions and ensure that jobs are protected,” added Pamla.
Momoniat said it was incorrect to say that the tax implementation had been deferred. “It’s not really a postponement. We are taking into account what people said in Nedlac (National Economic Development and Labour Council) … (the implementation) is all dependent on the parliamentary process,” he said.
Dr Neva Makgetla, a senior economist at research organisation Trade and Industrial Policy Strategies, said if the tax was “adjusted” in a way that would not affect sugar producers “then it’s fine”.
She also called on the government to cushion workers who could lose their jobs as a result of the legislation.
Fedusa general secretary Dennis George said that the postponement should be used to establish a “proper dialogue on this matter so that we can scrutinise its impact on the economy”.
His counterpart from Nactu, Narius Moloto, agreed saying: “We should now engage in consultation with everybody and every stakeholder. The deferment allows us enough time to reach an agreement.”
Saftu deputy general secretary Moleko Phakedi said: “This postponement should give rise to meaningful consultation with affected partners. The consultation should strike a balance between (promotion of) good health and job creation. The tax shouldn’t attain good health at the expense of jobs in the sector.”
Phakedi said the consultations should be inclusive and bemoaned the fact that their affiliate, Food and Allied Workers’ Union, was left out of the Nedlac discussions.
Despite repeated attempts BevSA couldn’t immediately be reached for comment and they had not responded to questions e-mailed to them at the time of going to print.
This report by Luyolo Mkentane was published on page 20 of Business Report of 7 September 2017
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Roundup of labour news on Tuesday, 5 September 2017
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Roundup of labour news on Monday, 4 September 2017
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