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 roundup of weekend news, see
summaries of our selection of South African
labour-related stories that appeared since
Friday, 29 September 2023.
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Transnet CEO Portia Derby resigns, together with group CFO Nonkululeko Dlamini Moneyweb reports that Transnet Group CEO Portia Derby has surrendered to pressure from several quarters and resigned from the embattled ports and rail state-owned group. She will leave at the end of October. The second most high-ranking executive at the company, Group Chief Financial Officer (GCFO) Nonkululeko Dlamini, also exited, but Friday was her last day, after she apparently resigned at the beginning of September. Derby is believed to have negotiated a substantial settlement for her departure. Her annual salary was in the region of R8.5 million. Derby and Dlamini’s departure come after Transnet faced increased pressure and calls from organised business bodies, including the Durban Chamber of Commerce and Industry and the Minerals Council of SA, to resign in the wake the group’s worsening operational and financial performance. Derby became Transnet group CEO just before the Covid-19 pandemic hit, back in February 2020. She also took the reins at a time when Transnet had to deal with state capture and corruption linked to its former executives. Transnet’s board has appointed Michelle Phillips, current Chief Executive of Transnet Pipelines, as acting Group CEO with effect from 1 November 2023, while a recruitment process for a permanent CEO is underway. Hlengiwe Makhathini has been appointed to act as interim group CFO. Read the full original of the report in the above regard by Suren Naidoo at Moneyweb. Read too, Transnet CEO Portia Derby calls it quits, at Fin24. En ook, Derby-bedanking ‘eerste stap’ om Transnet te red, by Maroela Media More Transnet top executive heads could roll following Derby's exit Sunday Times reports that the Transnet board announced on Friday that Group CEO Portia would be stepping down from her role at the end of this month and also that group CFO Nonkululeko Dlamini had resigned, effective from last Friday. Transnet Pipelines CEO Michelle Phillips has been appointed as the acting group CEO, while Hlengiwe Makhathini has been appointed acting group CFO. Derby and her leadership team have recently been under severe pressure owing to the continued deterioration of the performance of the company, especially its critical TFR division. Meantime, several highly placed sources in Transnet and the government are confident that Transnet Freight Rail (TFR) CE Siza Mzimela will be tendering her resignation before the end of the week. A well-placed Transnet insider said it was not clear how many other members of the executive committee would leave, but indications were high that Mzimela was on her way out. Transnet group spokesperson Ayanda Shezi did not respond to requests for comment. According to a spokesperson for Mzimela: “Ms Mzimela is still the CE of Transnet Freight Rail.” All members of the executive committee, including Mzimela, were appointed after Derby took up her post in February 2020. Former Coega Development Corporation CEO Pepi Silinga came in as head of Transnet National Ports Authority in October 2020. Jabu Mdaki was named CEO of Transnet Port Terminals (TPT) in January 2021. Kapei Phahlamohlaka, who heads the property division, was appointed in September 2020. Ralph Mills, CEO of Transnet Engineering, assumed the role in April 2020. Philips, now the acting group CEO, has been with the company since 1999, but moved to TPT in 2021. Read the full original of the report in the above regard by Caiphus Kgosana & Dineo Faku at Sunday Times (subscriber access only) Plans reportedly underway to rehire hundreds of skilled Transnet staff who left with VSP packages The Citizen reports that the abrupt resignation of Transnet CEO Portia Derby may pave the way for a comprehensive strategy to revitalise the floundering state-owned utility. After two turbulent years marked by declining performance and missed opportunities in a burgeoning commodities market, Derby stepped down on Friday, giving in to mounting pressure from mining and industry sectors. The Sunday Times reports that Derby’s controversial decision to offer Voluntary Severance Packages (VSPs) backfired spectacularly. While the move shaved R3.2 billion from Transnet’s wage bill, it also led to the departure of 450 invaluable employees with scarce skills. The company lost engineers, financial managers, project management specialists and up to 200 train drivers, as well as crane and lift operators and artisans. All these employees had scarce skills and they were either replaced by inexperienced people or not at all. “Transnet’s permanent employee headcount has reduced by 7.2% to 46,086 as at March 31 2022 (down from 49,642 in 2021) due to the combination of the VSP process, natural attrition, and retirements,” the company reported last year. According to an anonymous senior government leader, plans are underway to rehire some of the experienced personnel who were let go. “They let go of the most experienced, honest people that knew rail. It was in their blood. We are going to get some of this lost skill back,” the source commented. Read the full original of the report in the above regard by Cheryl Kahla at The Citizen. Read the original Sunday Times report at Sunday Times (subscriber access only)
Cele reiterates police officers must defend themselves against criminals EWN reports that Police Minister Bheki Cele has once again encouraged police officers to defend themselves when encountering violent criminals. Cele reflected on the rising scourge of police killings in Lenasia on Saturday, while delivering the eulogy at the funeral of a police officer who was killed in Johannesburg last weekend. Warrant Officer Dalmain Morris, who was a member of the police’s Anti-Gang Unit, was shot and killed while taking a statement in Westbury. The community in the west of Johannesburg has been plagued by violent fatal shootings linked to gang violence for years. In March this year, Cele visited Westbury and announced the deployment of specialised police task teams. Cele now called on members of the public to take a stand against police killings and indicated: “If you say there is no war out there, it’s because you have not joined us to see the evidence. This is it. This is a young, healthy, full of joy man, lying here forever.” Read the original of the short report in the above regard by Veronica Mokhoali at EWN
Municipal strike divides Tshwane coalition partners as ActionSA wants further negotiations with workers Pretoria News reports that cracks have started to show between the DA-led coalition government and ActionSA in Tshwane as a municipal strike continues to cause havoc across the capital city. ActionSA, part of the coalition government, has threatened to take the matter to the management committee to intervene and has called on mayor Cilliers Brink to go back to the negotiation table with the striking workers. The party has accused Brink of going back on the 2021 agreement between the city and the workers that pay increases would be implemented. Some employees affiliated to the SA Municipal Workers’ Union (Samwu) have been on strike, demanding a wage increase, and the action has left the city with uncollected refuse and other service delivery issues. Visiting communities affected by the strike last week, ActionSA’s national chairperson Michael Beaumont and Gauteng chairperson Funzi Ngobeni assessed the extent of service delivery breakdown arising from the strike action. Ngobeni said: “Refuse has not been collected, grass has not been cut, power station repairs are taking longer and we are nowhere close to a solution. Throughout this period, ActionSA has called on the City and the workers to return to the negotiation table and find a solution for the current impasse.” He added that their position was often misconstrued, with many criticising their stance on the strike: “Many are saying we are destabilising the current coalition government or even defending the vandalism of public property … that is simply not true.” Read the full original of the report in the above regard by Mashudu Sadike at Pretoria News. Read too, DA hits back at ActionSA as Tshwane coalition crumbles, on page 8 of Saturday Star of 30 September 2023. En ook, Tshwane-staking: ActionSA wys vinger na DA, by Maroela Media Other internet posting(s) in this news category
Post Office business rescue practitioners face R12.5bn debt headache Moneyweb reports that the SA Post Office’s (Sapo’s) joint business rescue practitioners (BRPs) are concerned about the entity’s liabilities, which reportedly totalled R12.5 billion at the end of July. They say the liabilities raise questions about the viability of the business rescue process. Joint BRPs Anoosh Rooplal and Juanito Damons on Friday issued an update on the troubled state-owned entity’s rescue after it entered the process in July. They noted that Sapo would need to improve revenues and attain an efficient cost structure for the entity to achieve a turnaround. Yet, in their two months at the helm of Sapo, the BRPs have managed to resume contributions to medical schemes, attend to the backlog of disciplinary cases, and restore electricity supply to the Newcastle branch. Salary payments for staff have remained steady so far, however the BRPs cautioned that Sapo’s ability to continue paying salaries would depend on the entity’s cash flows and receipt of additional funding from the Department of Communications and Digital Technologies and National Treasury. With regards to medical aid scheme payments, the BRPs said they have back paid contributions from July and have committed to staying consistent with payments so all employees could gain access to benefits. The re-opening of more key branches remains a key priority for the practitioners, but doing so will have to be balanced with the costs relative to available funds. Read the full original of the report in the above regard by Akhona Matshoba at Moneyweb. Lees ook, Poskantoor se aansienlike ‘laste verdwerg bates’, by Maroela Media
Search for Eskom CEO continues, with 147 candidates falling short of requirements IOL reports that the search for a new Eskom chief executive officer (CEO) is still ongoing after its former CEO Andre de Ruyter left the utility earlier this year. The question on how far the process of appointing a new CEO had progressed was posed during a media briefing by Electricity Minister Dr Kgosientsho Ramokgopa on Sunday. While Ramokgopa advised that Minister of Public Enterprises, Pravin Gordhan would be able to provide more detail on the CEO appointment, a government communications officer indicated that only one out of 147 candidates in the global search had been recommended, but was later rejected by government (which is the sole shareholder). Despite reviewing the “high calibre” of approximately 147 candidates for the top job, the selection outcome had not yet yielded a clear cut set of candidates. The Board deliberated on the Shareholder Directive at its sitting in early September and agreed to revise its recommendations. “When the Board submitted the initial submission, upon conclusion of the selection process, it was fully cognisant of the provisions of Section 14.3.2 of the MOI [Memorandum of Incorporation] which requires that the submission clearly profile three appointable candidates. The Board emerged with a single appointable candidate. The recommendation was subsequently turned back by the Shareholder who did not concur with the recommendation as it was deemed to not fully meet the requirements of clause 14.3.2. of the MOI,” the communication officer indicated. Ramokgopa said the Board’s Governance and Strategy Committee was working on finding a CEO to run Eskom and an announcement would be made by Eskom once that process had been concluded. Read the full original of the report in the above regard by Kailene Pillay at IOL Other internet posting(s) in this news category
Appointment of new judges set to ease Labour Court’s heavy load Sunday Times reports that the economic downturn and resulting job losses, coupled with the fraught state of labour relations evident in frequent strikes, have made the role of the Labour Court (LC) even more important. This week, the Judicial Service Commission (JSC) will interview candidates for vacancies in the LC and other courts. Unique among courts, the LC sits in four nodes at major cities: Cape Town, Durban, Gqeberha and Johannesburg. It is not just a court of law but also a court of equity and must ensure fairness among employers and employees. Despite its importance, the court has faced several challenges in recent years. It is chronically underfunded, while it faces the highest caseload in its history. According to the Judiciary Annual Report, the LC finalised 4,307 cases in 2021/2022, 58% of those that came before it. Its target of 60% completion is the lowest of all superior courts. In 2017/2018, it finalised 427 cases. There are only 13 LC judges to serve the entire country, which has a direct effect on case lead-times. As of October 2022, there were no trial dates available until 2024. This week’s appointment of new judges will go some way to resolving the challenges, but not entirely. The Durban node, which currently has one permanent judge, will get a second. The same for Gqeberha. Johannesburg will also get one more. Five candidates have been shortlisted for the vacancies. The Labour Appeal Court (LAC) will get four new appellate judges. Most significantly, the LC will finally get a deputy judge president after a seven-year vacancy. This week’s JSC sitting will be pivotal for the future of the LC and the LAC. After several years of frustration, things are finally looking up for a key cog in the labour relations system in SA. Read the full original of the report in the above regard by Mbekezeli Banjamin at Sunday Times (subscriber access only)
Exodus of engineers bleeds construction sector Weekend Argus reports that the shortage of engineers in SA has had a huge impact on the construction sector and infrastructure development. This is according to the chief executive of the SA Federation of Civil Engineering Contractors (Safcec), Webster Mfebe. Last week, Unesco observed Africa Engineering Week, throwing the spotlight on critical issues impacting the engineering sector. Mfebe observed that SA’s failing infrastructure and the exodus of engineers meant that the country was regressing in terms of infrastructure development. He pointed out that there was only one engineer for approximately 300,000 people in the country as opposed to one engineer for 200 in Germany. In 2019 more than 110 engineering and technical skills were lost because of violent site disruption and in 2022 more than 90 companies closed their doors as engineers looked for greener pastures in countries such as Ireland, the UK, the United Arab Emirates and Afghanistan. “The engineers who are leaving the country are experienced and skilled ones. We will be left with unregistered ones and who, if given opportunities, might pose a risk to public safety,” warned Mfebe. Deon Van Zyl, chairperson of the Western Cape Property Development Forum, has raised concerns about the exodus and the government's co-operation with Irish companies recruiting SA graduates in the construction and civil engineering sector. Van Zyl pointed out Ireland was building 33,000 new homes per year, and would be retrofitting 500,000 homes by 2030. To achieve this, the country was recruiting “our construction and engineering professionals en masse”. Read the full original of the report in the above regard by Bulelwa Payi at Weekend Argus
Annual pay of Woolworths CEO in 2023 financial year more than tripled to R122m BL Premium reports that Woolworths CEO Roy Bagattini, an outspoken proponent of a “living wage” for store employees, earned R122.4m in the 2023 financial year, more than three times what he earned in the previous year. This as his long-term share options vested. Bagattini earned R90.6m for work in SA and was paid AUD$2.6m (R31.8m) as he spent some time in Australia, where the group’s clothing chain Country Road is located. His remuneration included base pay equal to R20.4m, short-term annual incentives of R28m, long-term share options awarded three-years ago that amounted to R66.7m and R7.1m in share dividends. In the Woolworths results presentation in August last year, Bagattini spoke about the importance of a living wage and inequality. “I don’t think we spend enough time talking about the social component of ESG ([environmental, social and governance], which is just as important particularly in the context of a country like ours, with the challenges we face in terms of social inequality.” He indicated that Woolworths paid 60% above the minimum wage and 25% above the retail sector. In 2022, Woolworths allocated R120m over three years to lift minimum wages. The retailer also announced last year that it would increase its minimum wage from about R33.40 an hour in 2022 to R41.25 for 2023. If the lowest-paid worker takes home a minimum R41.25 an hour and works eight hours a day at an average 22 days a month, that employee would earn R7,260 a month or R87,120 a year. While workers do not have the same skills or responsibilities as an executive, the CEO earned more than 1,400 times the lowest-paid worker in 2023. Woolworths COO Sam Ngumeni earned just under R100m for the year, as he took home R71m in long-term share awards. Read the full original of the report in the above regard by Katharine Child at BusinessLive (subscriber access only) Other internet posting(s) in this news category
Ahead of World Teachers’ Day, Angie praises SA’s beleaguered teachers, promises more resources TimesLIVE reports that Basic Education Minister Angie Motshekga has acknowledged that the education system is experiencing severe challenges including infrastructure backlogs, overcrowding and a shortage of educational resources. She reflected on the challenges as she announced on Sunday that SA would on Thursday be joining other countries in celebrating World Teachers’ Day under the theme “The teachers we need for the education we want: The global imperative to reverse the teacher shortage”. Motshekga said: “Under these difficult circumstances, it is our teachers who have made the centre hold. In the midst of a lack of other educational resources, our teachers remain the only available and most critical resource.” She advised that the department was working with provincial education departments to intensify the delivery of school infrastructure. Another challenge was overcrowded classrooms. Yet, the department is confident the annual performance plan’s targets will be met and that the budget allocated will be used. Motshekga called on South Africans to dedicate time on Thursday and during the month to do something special for teachers. On Thursday, the department will host the National Teaching Awards in Pretoria to honour teachers who have demonstrated exceptional performance and commitment in different areas of their work. Read the full original of the report in the above regard by Phathu Luvhengo at BusinessLive Other internet posting(s) in this news category
ANC, Santaco distance themselves from EFF taxi protest in Cape Town on Monday News24 reports that the ANC in the Western Cape has withdrawn from participating in the EFF-led protest in Cape Town on Monday over the impoundment of taxis. ANC Western Cape secretary Neville Delport said on Sunday: "It was always our position that this was a multi-party march against the unlawful impoundment of taxis. It was never intended to be a shutdown led by one political party. The mixed messages emanating as late as this morning in the media have convinced us that it would be unwise to participate." Delport added they were opposed to any form of shutdown. Last week, the EFF announced plans for a shutdown calling for the release of impounded taxis. Initially, the ANC supported the protest. Santaco also distanced itself from Monday's protest and first deputy chairperson Nceba Enge said: “Taxis will be operating as normal, and operators will attend the march, those who wish to do so in their capacity as members of their respective political parties.” The SA National Civic Organisation (Sanco) also announced its withdrawal from the protest. The City of Cape Town's traffic services said permission had been granted for an expected group of 1,000 people, who would gather on a field on the corner of Heideveld and Volstruis roads in Bridgetown (Vangate Mall) at 9:00. From there they will proceed to the Ndabeni pound as per an identified route. Read the full original of the report in the above regard by Marvin Charles at News24 Rea Vaya resumes operations following labour dispute last week EWN reports that commuters in the City of Johannesburg can breathe a sigh of relief as Rea Vaya buses are now back in service. On Thursday and Friday, passengers were forced to find alternative transport as drivers failed to report for duty. This was because of labour disputes between the drivers and the two companies contracted to operate the bus system. Rea Vaya spokesperson Benny Makgoga advised: "The buses are operating at the moment; the matter has been resolved. There won't be any other issues, the matter has been resolved. As of Sunday, the buses are operating according to the schedule". Read the full original of the report in the above regard by Alpha Ramushwana at EWN
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