In our Friday morning roundup, see
summaries of our selection of South African
labour-related reports.
Rubbish piles up in Durban streets as EPWP cleaners picket outside city hall GroundUp reports that rubbish is piling up on the streets of Durban because hundreds of angry workers from the Expanded Public Works Programme (EPWP) have stopped working to camp outside the city hall. They are demanding permanent work in the eThekwini municipality. The workers claim they have been working on short-term EPWP contracts for 10 years or more. Rubbish collection and street sweeping services have been disrupted over the past week. According to the City, EPWP workers are blocking the gates of depots and intimidating staff and refuse collection contractors. Municipal and Allied Trade Union of SA (MATUSA) regional secretary Silindile Khumalo said they had been told by the City that the number of workers on the programme would be cut. “On Tuesday we received a message from the City that says only 1,276 workers would sign a contract, the other 2,879 would be out of work,” he reported. Khumalo added that it was also not clear if former workers would be among those signing new contracts, or if the municipality would recruit new people. eThekwini spokesperson Gugu Sisilana said the metro’s grant from the Department of Public Works and Infrastructure had been reduced by R42-million to R18.79-million in the 2024-5 financial year. “As a result, the number of participants will decrease from 4,155 to 1,276, with current contracts ending in July 2024, followed by a new recruitment process,” Sisilana indicated. Read the full original of the report in the above regard by Tsoanelo Sefoloko at GroundUp DA in eThekwini calls on municipality to secure solid waste depots over fears about illegal EPWP strike EWN reports that the Democratic Alliance (DA) caucus in the eThekwini council has called on the municipality to secure solid waste depots in the city over fears about an illegal strike. This came as Expanded Public Works Programme (EPWP) workers went on strike after being informed by the municipality that their contracts would not be renewed. In March this year, the city was brought to a standstill, with municipal workers dumping rubbish all over the city in protest over salary increments. DA caucus leader Thabani Mthethwa said that this time around, law enforcement agencies must be deployed before huge damage was caused. "The Democratic Alliance in eThekwini today calls on the city manager, Musa Mbhele, to deploy law enforcement officials to restore order in the city. We say this after EPWP workers embarked on an illegal strike, which has crippled service delivery especially refuse collection," Mthethwa said. Read the original of the short report in the above regard by Nhlanhla Mabaso at EWN Public Works Minister calls for urgent reform of EPWP amid protests in eThekwini IOL News reports that the Minister of Public Works and Infrastructure, Dean Macpherson, has highlighted the need for urgent reform of the Expanded Public Works Programme (EPWP) in light of ongoing protests by hundreds of former EPWP employees in eThekwini. The protests have disrupted key municipal services, such as waste removal, creating a health hazard. “The EPWP programme was always designed to be a short-term programme to give recipients work experience and training in order for them to find permanent employment,” Macpherson pointed out. He noted that due to the stubbornly high unemployment rate in SA, many have become reliant on the programme, with some being employed as EPWP workers for many years. “As mentioned during the Department of Public Works and Infrastructure budget speech last week, it is therefore imperative that the EPWP programme be re-imagined to become skills outcomes-based, which lead to South Africa climbing up the opportunity ladder, rather than being stuck in EPWP for years on end,” Macpherson stated. The minister expressed his commitment to collaborating with all stakeholders in the coming months to achieve better outcomes for EPWP recipients nationwide. Read the full original of the report in the above regard by Thobeka Mthembu at IOL News
SA may battle to sustain consumer inflation near 4.5%, Stanlib cautions Bloomberg reports that Stanlib Asset Management says that with infrastructure backlogs and fiscal constraints pushing up the prices of key essential services, the SA Reserve Bank (SARB) may find it difficult to achieve and sustain a consumer inflation rate of 4.5% over the next few years. Inflation has topped 4.5%, the midpoint of the target range at which the SARB prefers to anchor price-growth expectations, for more than three years. Despite this, the Monetary Policy Committee (MPC) has discussed lowering the goal, with Governor Lesetja Kganyago previously opining that a single-point target of 3% would be in line with the country’s peers and allow for lower interest rates. “Bringing the inflation rate fully under control – 4.5% or lower – has to be focused on controlling the cost increases of key essential services,” Stanlib’s Kevin Lings said in a research note. Extensive infrastructure backlogs and severe fiscal constraints in the public sector suggest the prices consumers will have to pay for key goods including water, electricity and health care “will continue to escalate at a relatively rapid pace for many years, adding upward pressure to inflation,” he said. The cost of key services such as electricity and water have exceeded inflation for several years, partly to allow state-owned companies to supplement declining revenues and fund infrastructure projects after years of mismanagement and underinvestment. On average, electricity costs were 15.2% higher in the first five months of this year than a year earlier, while water was 7.9% more expensive, according to Lings. Read the full original of the report in the above regard by Monique Vanek at Moneyweb
Buffalo City staff will get their salaries docked to repay municipality R14m in unpaid rates News24 reports that Buffalo City metro staff members owe their employer over R14 million in unpaid rates. This while the metro has been clamping down on other defaulters, often pensioners, by handing them to debt collectors or blocking their prepaid electricity purchase in a bid to force them to settle their bills. A report tabled by Mayor Princess Faku at the metro's special council meeting in East London on Wednesday showed that about 312 of the metro's staff members were in arrears to the extent of R14.75 million for periods of over three months. Faku's report also indicated that some councillors owed the municipality R40,869 in unpaid rates for over three months. The report indicated that stop orders were being implemented for all municipal staff and councillors in arrears, for them to repay what they owed. According to Schedule 2 of the Municipal Systems Act, a staff member of a municipality may not be in arrears to the municipality for rates and service charges for a period longer than three months, and a municipality may deduct any outstanding amounts from a staff member's salary after that period. The Act also prohibits councillors from being in debt with the municipality for over three months. But, EFF councillor Mziyanda Hlekiso said the metro's billing unit was riddled with flaws. "We have been consistent as the EFF that our billing system has errors. This is not to condone the arrears by staff members, but we want the metro to fix its billing method," said Hlekiso. Read the full original of the report in the above regard by Sithandiwe Velaphi at News24
President appoints Mandisa Maya as SA's first woman chief justice TimesLIVE reports that President Cyril Ramaphosa has appointed deputy chief justice Mandisa Maya as chief justice with effect from 1 September 2024. Her appointment will follow the departure of chief justice Raymond Zondo, whose term expires on 1 August. Maya’s appointment comes after consultation, in accordance with provisions of the constitution, with the Judicial Service Commission (JSC) and leaders of political parties in the National Assembly. Ramaphosa had indicated in a letter to Zondo on 22 February 2024 that he intended appointing Maya as Zondo’s successor. The President then invited the JSC to give its views on the suitability of Maya to hold the office of chief justice and she was interviewed on 21 May. The commission subsequently assured the president of Maya’s suitability to lead the judiciary based on the interview, Maya’s qualifications and judicial record, her leadership qualities, her experience as a judge in various courts, her past leadership of the Supreme Court of Appeal and her role as deputy chief justice in the period leading to her nomination by the President. The commissioners said Maya’s appointment would be a significant milestone for the country as she would be the first woman chief justice. The President expressed his appreciation in the confidence expressed by the JSC and leaders of political parties about the suitability of the incoming chief justice, “who can draw inspiration and support from the confidence expressed in her.” Read the original of the report in the above regard at TimesLIVE Makhado Municipality finally complies with court order to appoint top-scoring candidate as CFO GroundUp reports that the top-scoring candidate for Makhado Municipality’s Chief Financial Officer (CFO) position, Godfrey Raliphada, has finally been appointed. Raliphada was appointed at a special sitting of council this week to comply with an order in February by the Limpopo High Court in Polokwane. The court had set aside a decision by the municipality to ignore the recommendation of a selection panel. Raliphada, who had been acting CFO since 2022, was overlooked by the municipality and Thangavhuelelo Mulatwa, the second highest scoring candidate, was appointed late last year instead. In the interview process Raliphada had scored the highest with 86%, while Mulatwa had scored 69%. The selection panel was unequivocally clear that Raliphada was the most suitable candidate, yet the council appointed Mulatwa. Last year, the council’s decision to overlook Raliphada sparked protests. Municipal offices were brought to a standstill by Makhado municipal workers affiliated to the SA Municipal Workers’ Union (Samwu) and the Independent Municipal Allied Trade Union (Imatu). According to the unions, the CFO position had been vacant for almost five years at that stage. The court decision was welcomed by Samwu and Imatu. Emmanuel Mpho Mulaudzi, chairman of Imatu in Makhado, reaffirmed that the union welcomed Raliphada’s appointment and said that management should have a sense of urgency in the future. Read the full original of the report in the above regard by Bernard Chiguvare at GroundUp
Workers’ pension money must not be seen as the government’s ATM, says Solidarity Solidarity issued a statement on Thursday warning that retirement money “is not the government’s ATM, and under no circumstances should it be seen as a pot of money that could be taken from with ease.” The trade union noted that the Department of Trade, Industry and Competition, led by Minister Parks Tau, submitted proposals last week that included “tools and mechanisms” to promote industrialisation. These proposals included amendments to regulation 28 of the Pension Funds Act to help finance industrialisation. Emphasis was further placed on black economic empowerment (BEE) with Tau wanting to implement stricter compliance with BEE legislation and regulations. According to Solidarity’s deputy general secretary for strategy, Marius Croucamp, workers’ pension money is seen as a soft target to fund projects. He pointed out that “retirement funds belong to hardworking people and those already on retirement and not to the ANC, the government or anyone else.” According to Croucamp, the government’s strong emphasis on BEE goes hand in hand with the focus on retirement funds because contracts and projects will be awarded to empowerment companies at high cost and will be funded with workers’ retirement money. “We are concerned that these contracts, as in the past, will be awarded to cadres and will not really empower anyone, apart from a closed group of rich cadres with ANC connections,” he said. Solidarity warned that it would litigate against any plans to raid pension funds. “We also encourage funds to amend their internal policies in such a way that surplus funds are distributed to existing members of the funds, because it is precisely these funds that are in the government’s sights,” Croucamp said. Read Solidarity’s press statement on this matter at Politicsweb
Has the High Court's National Health Act ruling declaring ‘certificate of need’ invalid dealt the NHI a death blow? News24 reports that experts are divided on whether the National Health Insurance (NHI) has been dealt a death blow by a High Court ruling that declared parts of the National Health Act (NHA) invalid. The Constitutional Court will now have to consider the judgment before it has any effect. Experts in the healthcare industry hold different views on whether Judge Anthony Millar's North Gauteng High Court judgment will have implications for the NHI. Millar declared that sections 36 to 40 of the NHA were invalid and ordered that they be severed from the act. The sections state that no person may operate or open a health establishment without having a "certificate of need", which must be applied for and approved by the Department of Health. Professor Alex van den Heever’s belief is that while the judgment does not have a direct impact on the NHI Act, it will suffer the same fate as the NHA if challenged in court because it clarifies what many of the challenges will be for the NHI Act. Fazlin Swanepoel, head of health at Alexforbes, said the judgment had a significant impact on NHI plans. "The implications means that the government cannot dictate where private health practitioners can work, a key component of the NHI's central planning strategy,” she pointed out. Trade union Solidarity, which was one of the applicants in the case, said the judgment was a major breakthrough in its fight against the NHI. "This judgment is a major blow to the total NHI idea as the principle of central management is a core pillar of the NHI Act itself. A more extensive consequence of this ruling with regard to the certificate of need is that parts of the NHI Act are now probably also illegal in principle. The NHI in its current format cannot be implemented as the essence of the NHI is central planning - and this has now been found unconstitutional," Solidarity CEO Dirk Hermann commented. But, not everyone agrees the judgment will have implications for the NHI. Wits University’s Professor Shabir Moosa said he did not see the judgment as material to the NHI Act because, simply put, “the NHI Act did not require a certificate of need to do what it would be doing.” Russell Rensburg of the Rural Health Advocacy Programme also did not believe the ruling would impact NHI or its implementation. He pointed out that the judgment related to the rationality of the invalid provisions and not central planning. He added that the judgment looked at the make-up of the certificates and did not make findings on the limitations of rights, such as the right to trade, which had been part of the case put forward by Solidarity and the other applicants. Read the full original of the report in the above regard by Alex Mitchley & Aphelele Mbokotho at News24 Motsoaledi 'deeply concerned' about court judgment that declared parts of Health Care Act invalid News24 reports that Department of Health (DOH) Minister Dr Aaron Motsoaledi is deeply concerned about the North Gauteng High Court judgment that declared certain sections of the National Health Act (NHA) invalid and unconstitutional. In his judgment handed down on Wednesday, Judge Anthony Millar declared that sections 36 to 40 of the NHA, which deal with the ‘certificate of need’, were invalid and consequently severed from the Act. The sections provide that no person may operate or open a new health establishment without being in possession of a certificate of need as granted by the DOH. The certificate effectively empowers the government to regulate and determine where medical practitioners may practise. Noting the judgment with "deep concern", Motsoaledi said his department differed with the court's findings. He commented: "Our intention as the department is to regulate health facilities and provision of healthcare as this is our mandate, but the court seems to have concentrated on economic property rights. The judgment is about the regulation of health establishments through licensing, both public and private, something which is common around the work. For example, one cannot wake up one day and open a filling station or mall without needs assessments, the same was the case with health establishments." Motsoaledi will not as yet need to decide whether he wants to appeal, as the judgment will first have to be affirmed by the Constitutional Court. Trade union Solidarity, along with independent medical practitioners, brought the case to challenge the certificate, which has been a bone of contention for many years. In a statement, Solidarity said the judgment also represented a major breakthrough in its fight against the National Health Insurance (NHI) Act. Read the full original of the report in the above regard by Alex Mitchley at News24
Cosatu welcomes Zizi Kodwa’s resignation from parliament amid corruption charges BL Premium reports that labour federation Cosatu, a key alliance partner of the ANC, has welcomed corruption-accused ANC MP Zizi Kodwa’s resignation from parliament, saying the decision to deploy him to the National Assembly had been “poorly thought through and ill-considered”. Cosatu spokesperson Zanele Sabela said the deployment had undermined the party’s step aside resolution for public representatives and had “sent a painfully worrying question to society on the ANC’s commitment to holding its public representatives accountable and its bold and necessary renewal campaign.” Kodwa, a close ally of President Cyril Ramaphosa, resigned as sport, arts & culture minister in June after his arrest and court appearance on charges of receiving bribes amounting to R1.6m. The state capture report showed Kodwa benefited from contracts worth more than R460m that the City of Johannesburg awarded to EOH Holdings in 2016. The company was hired to upgrade and maintain the metro’s software systems. Kodwa and former EOH boss Jehan Mackay, who are out on bail, appeared briefly in the Palm Ridge commercial crimes court on Tuesday and the matter was postponed to 21 August. Sabela said other parties would do well to learn from this “progressive example and precedence, including the DA, which continues to dilly dally and harbour a MP, Renaldo Gouws, who has been found calling for violence and spewing hate speech on social media”. Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only) Other internet posting(s) in this news category
Eight out of 10 South Africans ready to ditch private transport for public options, PwC survey shows EWN reports that a survey by accounting firm PwC has found that consumers have a strong appetite to ditch private transport for public options. This as frustration for commuters mount. PwC has published its latest consumer survey, which details what consumers perceive as the biggest potential threats to the country in the coming 12 months. PwC reports that eight out of ten South Africans would be willing to take public transport if the country had better transport infrastructure. It said that consumers were mostly frustrated about increasing congestion and the rising cost of private transport. Data from the TomTom Traffic Index 2023 showed that rush hour travelling speeds averaged just 43km/h across the country’s largest five metros, including Johannesburg and Cape Town. The report indicated that road safety has also become a big concern for many motorists, with deteriorating road infrastructure such as potholes getting in the way. PwC also reported that there appeared to be strong interest in electric cars as market entry prices have dropped. Read the original of the short report in the above regard by Nokukhanya Mntambo at EWN
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