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
Tuesday, 26 May 2020.
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Covid-19 job losses could be permanent, but a balance can be found between containing the virus and other health, social and economic imperatives BL Premium reports that a new academic paper published by the Covid-19 economists group warns that there is a danger that employment losses due to the epidemic will become permanent, causing the rate of unemployment to be significantly raised for years to come. SA has among the highest rates of unemployment in the world at 29% (narrow definition) and is also one of the most unequal societies. Economist Miriam Altman writes that various scenarios, based on the combination of strategies used to fight the epidemic, could see the rate of unemployment rise to between 30% and 37%. She points out that it is imperative that policymakers are alive to these dangers and make appropriate choices to limit long-term permanent output and employment losses. Altman argues that a shift from "a centrally regulated approach that controls activity" to one that "enables communities and businesses to adhere to the protocols required to contain the virus", is an essential first step. Such an approach is consistent with the approach the government has now taken, where a limited range of economic activities are prohibited, with the rest allowed, dependent on risk mitigation strategies. "It is within our power to limit the damage. A balance can be found between containing the virus and other health, social and economic imperatives in a way that is mutually reinforcing," Altman maintains. Her paper models four scenarios on the extent to which the three priorities are applied, which are briefly outlined in this report. Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only) Limited air travel will not save airlines, says Airlines Association of SA BL Premium reports that the Airlines Association of Southern Africa warned on Monday that the easing of the lockdown regulations to allow for limited air travel would do little to save struggling airlines. “Obviously airlines would like to fly without restrictions as soon as possible. That will be viable and provide them with a greater chance of recovery,” the association’s Chris Zweigenthal said. The airline industry, which counts eight players, is on the verge of collapse because of the Covid-19 crisis. Many of the airlines that have been grounded since the lockdown came into force at the end of March had enough cash in hand to survive for two months, meaning that by June they could be unable to meet their financial obligations. Comair and SAA recently went into business rescue, while SA Express entered provisional liquidation. On Sunday, President Cyril Ramaphosa said when the country moved from level 4 of the lockdown to level 3 on 1 June, limited business travel would be phased in. Transport minister Fikile Mbalula is expected to provide more details in coming days. Zweigenthal said the industry was still in talks with the government and motivating why it should be given the green light to operate at full scale as soon as possible. But even if the airlines are allowed to operate at full capacity, they are unlikely to see a return to pre-crisis traffic levels before the start of 2021 at the earliest. Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (paywall access only) As lockdown eases, banks happy to keep workers at home because they can work “very effectively” from outside the corporate building Bloomberg writes that as the government prepares to ease lockdown restrictions and manufacturers, miners and industries prepare their factories and offices to receive their employees, banks have found there is no need to immediately go back. Investec CEO Fani Titi observed: “We have established that we can work very effectively from outside the building. In the fourth quarter of the year we may see an increase. But I don’t think we’ll ever get back to a situation where you will have approximately 95% of your people in one place.” Banks were allowed to keep branches open throughout the lockdown. Like Investec, Nedbank, Absa and FirstRand all expect to keep most staff home when restrictions ease. Standard Bank Group’s offices in Johannesburg, which typically holds 16,000, only has 3,000 essential workers on site. Still, the change has come with challenges Investec’s CEO said: “The psychological toll on people has been significant. The idea of being locked in a room at home without contact with people and without the kind of interaction that Investec naturally is prone to has been a difficult experience.” Read the full original of the report in the above regard by Vernon Wessels, Roxanne Henderson and Janice Kew at BusinessLive Up to 70% of salons face closure post Covid-19 Sowetan reports that up to 70% of the country’s hair and beauty salons, spas and tattoo parlours face closure as their businesses remain under the Covid-19 lockdown. “Indications are that up to 70% will have to close. We will again be doing a snap survey this week,” said Employers Organisation for Hairdressing, Cosmetology and Beauty (EOHCB) national manager Cobus Grobler. On Sunday evening, President Cyril Ramaphosa announced that the beauty industry would remain under the lockdown when the country moves to level 3 restrictions on 1 June. There are about 90,000 people active in the hair and beauty sector, which is worth about R300bn. Grobler said on Monday that the EOHCB noted with regret that the personal care sector would remain closed. Two weeks ago, lawyer Carlo Viljoen said he had submitted court papers to demand an urgent reopening of hair salons. But, Grobler said the beauty industry could not rely on Wednesday’s court application to save it. Read the full original of the above report by Nivashni Nair on page 2 of Sowetan of 26 May 2020 Other internet posting(s) in this news category
Twenty-six cases of Covid-19 at Mediclinic Cape Town in Oranjezicht News24 reports that twenty-six people have tested positive for Covid-19 at Mediclinic Cape Town in Oranjezicht, the medical facility confirmed on Monday. The company said this was despite stringent measures taken to reduce the transmission of the virus at all of its hospitals. "Currently, 26 individuals have tested positive, including 15 healthcare workers. The individuals in question are all currently in isolation and will remain so until they are fully recovered," said Dr Stefan Smuts, the chief clinical officer of Mediclinic Southern Africa, in a statement. Mediclinic said it had arranged self-isolation accommodation for those in need of it, and managers would check in with staff every day. Mediclinic is also identifying all staff, doctors and patients potentially exposed. Further spread in the hospital will be mitigated and a very strict access control policy is in place, with emergencies going to a dedicated admission ward. Mediclinic had already temporarily suspended visiting hours, and had been testing new admissions, even before the positive tests. Read the full original of the report in the above regard by Jenni Evans at News24 Forty-one Gauteng health workers assaulted last year, mainly by psychiatric patients The Citizen reports that 41 health workers in Gauteng public hospitals were assaulted last year, the vast majority by psychiatric patients. This was indicated by Gauteng health MEC Bandile Masuku in response to questions in the Gauteng Legislature. He explained: “In almost all the cases reported, the perpetrator was a patient and the majority were psychiatric patients. About 95% of assaults are by patients with a psychiatric diagnosis.” George Mukhari Hospital in GaRankuwa, north of Pretoria, had the most assaults, with 10 attacks, including one where three security guards were bitten by a psychiatric patient. The Bheki Mlangeni Hospital in Soweto had eight attacks, six of which were perpetrated by psychiatric patients. “It is very disappointing that this hospital has still not taken effective security measures as a psychiatric patient allegedly murdered another patient there recently,” commented the Democratic Alliance’s Jack Bloom. He went on to observe: “It is really shameful that following the Life Esidimeni tragedy, the facilities for psychiatric patients in our hospitals are still inadequate to prevent harm.” Read the original of the above report on page 8 of The Citizen of 26 May 2020 Other internet posting(s) in this news category
A third of tested miners at AngloGold’s Mponeng mine positive for coronavirus BL Premium reports that AngloGold Ashanti (AGA) said on Monday that testing of employees at its Mponeng mine had been finalised and showed that a third of the tested workers were infected with Covid-19. With SA's mines returning to full staffing levels from 1 June, the return to normal operations will bring a higher risk of infected employees. A number of companies have already reported closures of mines because of staff testing positive for the virus. AGA advised that it had completed the testing of 651 persons at its Mponeng mine near Carletonville in Gauteng and 196 had tested positive. “In the vast majority of these cases, the individuals were asymptomatic, with the balance showing very mild symptoms,” AGA said, adding that those employees were now in isolation. The mine had 2,400 people back at work under the 16 April change in regulations that allowed underground mines to return to 50% of staffing levels. According to the Minerals Council SA (previously called the Chamber of Mines) about 49% of the sector's 450,000 employees are back at work. The return to normal operations could take two or three weeks in a carefully managed process to bring the balance of mineworkers back, but there are no guarantee that full operations will resume. Underground mines are unavoidably confined spaces and constraints include conveyances, meeting areas, changing rooms. “Even surface operations that are currently allowed to operate with 100% capacity are not doing so,” council spokesperson Charmane Russell indicated. Read the full original of the report in the above regard by Allan Seccombe at BusinessLive (paywall access only) NUM calls for closures of mines with a high number of Covid-19 cases Mining Weekly reports that the National Union of Mineworkers (NUM) has expressed concern about the number of Covid-19 cases reported at SA mines and has called on the Department of Mineral Resources and Energy (DMRE) to stop mining operations until all safety measures have been adhered to. Following the outbreak of the virus in the mining industry, and with infections on the rise, the NUM has proposed that all mining operations that have a high number of Covid-19 infections be temporarily closed until the situation is remedied. It noted, however, that all workers would need to be paid their full salaries during the temporary closure of the affected mines and said that all mine managers whose companies were not adhering to the Covid-19 regulations must be arrested. Within the context of national law, workers could, with reasonable justification, remove themselves from unsafe working conditions and not return until the employer had remedied the situation, and if they have exercised this right in good faith, they cannot suffer undue consequences, the union said. As such, the NUM has called on its members to refuse to work in the mines and operations where necessary strict measures were not put in place to protect workers from the virus. Read the full original of the report in the above regard at Mining Weekly Other labour / community posting(s) relating to mining
SAA rescue team wins permission to appeal retrenchment decision BusinessLive reports that the SA Airways (SAA) business rescue practitioners (BRPs) have been granted leave to appeal against a labour court judgment that determined that they were not entitled to retrench employees before finalising the business rescue plan. SAA has been in business rescue since 5 December, but the BRPs, Siviwe Dongwana and Les Matuson, have not yet produced a final business rescue plan. In April, after being informed that the government had no more money available to restructure the airline, they issued notices of impending retrenchments at the airline. The notices were set aside by the Labour Court after an application by the National Union of Metalworkers of SA and SA Cabin Crew Association. But the BRPs have contended that “given the disputes of law ... there is a reasonable prospect that the facts would receive a different treatment by the labour appeal court”. They have also argued that “the matter is of significant public interest and importance and that the judgment in the labour court is in conflict with an earlier judgment of the same court.” In other instances of business rescue, retrenchments have occurred before the acceptance of a final rescue plan. With no new funding in place, the BRPs say they will finalise a plan to wind down SAA by 30 June. Read the full original of the report in the above regard by Carol Paton at BusinessLive. See too, Labour Court rules in favour of appeal by SAA and BRPs, on page 9 of Business Report of 26 May 2020 Other internet posting(s) in this news category
As principals and teachers in Gauteng get their PPE, schools gear up for restart on Monday Sowetan reports that schools in Gauteng have received personal protective equipment (PPE) and they are now gearing up to welcome grade 7 and 12 learners on 1 June. On Monday, teachers and principals returned to schools for the first time in more than two months to prepare for the reopening of schools and to receive safety material such PPE from the provincial department. Education MEC Panyaza Lesufi visited some schools to check the preparations. He advised that teachers who were not fit and ready to start had been given forms to fill in so that the department could replace them. He also said: “We are putting additional cleaners on stand-by as we don’t want the gap where someone will say they are sick and cannot come to work.” But, Lesufi raised concerns about the issue of business people who were blocking the delivery of PPE, indicating that Tshwane south and north had been the hardest hit. “We have 103 schools that were supposed to receive PPE material but 65 have not received it. We are finding ourselves caught in between people who believe we have given a contract to Bidvest company and we have explained to them that Bidvest is only donating the PPE material, they have not won a tender,” he explained. Expressing the hope that by Friday all teachers would be back at schools, Lesufi noted that there were teacher unions encouraging their members not to report back to work, but said the issue of PPE was being dealt with. Read the full original of the report in the above regard by Yoliswa Sobuwa on page 2 of Sowetan of 26 May 2020 Teacher's union Eusa heads to court on Friday to stop schools reopening TimesLIVE reports that the Educators Union of SA (Eusa) is planning to approach the courts on Friday for an interdict against the government's plan to partially open schools on 1 June. Union spokesperson Kabelo Mahlobogwane likened sending children back to school in winter without the necessary safety precautions in place to "genocide". He advised that the union would be filing an application against basic education minister Angie Motshekga and the Department of Basic Education at the South Gauteng High Court. Mahlobogwane said the union was not opposed to schools being opened, but they wanted the DBE to guarantee the safety of teachers and pupils. The union has proposed that the department wait until September, when the weather has improved, before reopening schools and has also suggested that the DBE takes all matriculants “to a camp, away from everyone." Mahlobogwane went on to comment: "When we signed up to be teachers, we did not sign up to endanger our lives. How do you send children to face an invisible enemy? If anyone is infected, we will sue her [Motshekga] in her personal capacity." Read the full original of the report in the above regard by Nomahlubi Jordaan at TimesLIVE Teachers need more time to prepare, asserts Sadtu KZN on return of staff to schools News24 reports that the SA Democratic Teachers’ Union (Sadtu) in KwaZulu-Natal (KZN) says the extension for school staff to return to schools under Level 3 lockdown is not enough to prepare for the return of pupils. "We believe Thursday is too soon. Also, what is not clear now is whether learners will still be expected to come back on Monday, 1 June," said Sadtu KZN’s Nomarashiya Caluza on Monday. On Sunday, Premier Sihle Zikalala announced that the planned return of staff to schools in the province had been delayed until Thursday while the education department worked to distribute personal protective equipment (PPE) to all schools. He indicated that some schools had to be thoroughly cleaned and that the delivery of all essentials, especially PPEs, had to be completed. On Monday, Caluza said teachers were meant to be given two weeks to prepare for the return of pupils and that even Thursday's return was premature. She advised that Sadtu was "on the ground visiting districts in the province to monitor" PPEs and checking on the progress of the preparations, but, by the evidence, schools were not ready. MEC for Education Kwazi Mshengu said the department noted the concerns of the unions. Read the full original of the report in the above regard by Kaveel Singh at News24 Second school in Cape Town hit by positive Covid-19 case during prep week News24 reports that the Western Cape education department said on Tuesday that Parkvale Primary School in Valhalla Park was the second school in Cape Town to have a positive Covid-19 case among educators. The case was recorded in the first week of the return of teachers to school to prepare for the phased reopening next Monday for grades 7 and 12. Spokesperson for education MEC Debbie Schäfer, Kerry Mauchline, confirmed that the school was closed and would reopen after the department's protocols, such as deep-cleaning, had been followed. This development came after Hague Primary School reported on Monday that a staff member had tested positive for Covid-19. However, the department advised that that school would reopen on 1 June after it had also followed protocols. Various provincial branches of the SA Democratic Teachers’ Union (Sadtu) have called for teachers not to return to school if they are not happy with the school's preparedness in providing protection, including in KwaZulu-Natal and the Eastern Cape. Read the full original of the report in the above regard by Cebelihle Mthethwa at News24. Read too, Staffer at a Cape Town’s Hague primary school tests positive for Covid-19, at News24
Cosatu wants workers to be able to draw on retirement fund savings on a once-off basis to fight Covid-19 hardship BL Premium reports that Cosatu has submitted an urgent request to Finance Minister Tito Mboweni to issue an emergency directive allowing employed workers who are members of retirement funds to access a part of their savings on a once-off basis. This would be to supplement Covid-19 Temporary Employer-Employee Relief Scheme (Ters) benefits. Ordinarily, such a measure would have required a change in legislation, but the country was under a state of disaster such an intervention could be made possible through the gazetting of regulations, the union federation’s Bheki Ntshalintshali argued on Monday. The matter has also been referred to Nedlac for consideration on an urgent basis. Since the lockdown began in March, many employees have had their salaries cut — some by more than half. Other workers have had their contributions to retirement funds and medical aid schemes, among other employment benefits, withheld as companies struggle to keep afloat. Ntshalintshali warned that if urgent additional income during the Covid-19 pandemic was not secured for working-class families, it might result in high levels of indebtedness and social unrest. Ntshalintshali stated: “There is no reason Cosatu members should suffer during the pandemic when they have enough of their own resources to draw on.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only) Pension funds declined by more than R400bn in first quarter of 2020 Business Report writes that pension funds in SA declined by more than R400-billion in the first three months of this year, resulting in a negative chain reaction on households’ net wealth. A study by Momentum/Unisa research released on Monday showed that households’ real net wealth decreased substantially in the three months to March on jittery markets and the coronavirus pandemic. The study showed that households’ real net wealth fell by about R828.2bn from the fourth quarter of 2019. The bulk of the decline stemmed from a sharp decrease in the real value of financial assets, which were R788bn lower and R40.6bn less than non-financial assets. Momentum researcher Johann van Tonder indicated: “The recent plummet in household real net wealth - from an estimated R7043.6bn in the fourth quarter of 2019 to R6215.4bn in the first quarter of 2020 - can be largely attributed to a sharp decline in the real value of households’ pension funds and other investments such as unit trusts. The real value of Read the full original of the report in the above regard by Siphelele Dludla at Business Report Other internet posting(s) in this news category
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