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 Wednesday morning roundup, see
summaries of our selection of South African
labour-related reports.
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Number of unemployed people rose to a record high of 8.38m in second quarter of 2024 BL Premium writes that SA’s economy is not creating jobs fast enough to absorb all the people entering the job market, which has led to the number of job seekers unable to find work rising to a new high of 8.38-million people. Despite the recovery in the labour market after the impact of Covid, the economy has failed to keep pace with growth in the population over an extended period, Stanlib chief economist Kevin Lings pointed out. Stats SA announced on Tuesday in its the Quarterly Labour Force Survey (QLFS) a decrease of 92,000 in the number of employed people to 16.7-million in the second quarter. The unemployment rate advanced to 33.5% in the three months through June compared with 32.9% in the previous quarter. This was the highest level since 2022. Under the expanded definition of the unemployment rate, which counts not only those seeking work but those too discouraged to look for a job, there was an increase of 0.7 percentage points to 42.6% in the second quarter. People aged 15-24 years and 25-34 continued to have the highest unemployment rates at 60.8% and 41.7% respectively. The largest number of job losses was in the trade sector, which shed 111,000 jobs during the quarter. That was followed by 45,000 fewer jobs in agriculture, 18,000 in private households, 11,000 in construction and 9,000 in finance. The manufacturing sector added 49,000 jobs over the period. The Western Cape, Mpumalanga and KwaZulu-Natal recorded the largest employment decreases. Gauteng saw the largest increase. Read the full original of the report in the above regard by Denene Erasmus at BusinessLive (subscriber access only). Read too, SA unemployment rate rises to two-year high, at Moneyweb Other internet posting(s) in this news category
School transport driver detained after Cape Town traffic officer run over on Tuesday News24 reports that a City of Cape Town traffic officer is in hospital after a driver transporting pupils to school knocked him over in Athlone on Tuesday. Traffic department spokesperson Maxine Bezuidenhout said the officer was hit when he tried to stop a minibus taxi at a checkpoint in Klipfontein Service Road. "The motorist involved was detained as it transpired they were transporting schoolchildren without the necessary permit and in an unlicenced vehicle. The driver could also not produce a valid driver's licence," Bezuidenhout indicated. The extent of the officer's injuries is unknown. Western Cape police spokesperson FC van Wyk said Athlone police were investigating a case of reckless and negligent driving. "A 37-year-old foreign national was arrested. He will appear in the Athlone Magistrate's Court once charged," Van Wyk stated. City of Cape Town mayco member for safety and security JP Smith said attacks on law enforcement staff would not be tolerated. Read the full original of the report in the above regard by Lisalee Solomons at News24 Other internet posting(s) in this news category
Samwu calls for a ‘substantial’ wage hike amid this week’s difficult municipal negotiations Business Report writes that the third and final round of salary negotiations for municipal workers is taking place this week in the SA Local Government Bargaining Council. This follows two previous sessions where the SA Municipal Workers’ Union (Samwu) and the Independent Municipal and Allied Trade Union (Imatu) received offers from municipal employers represented by the SA Local Government Association (Salga). Samwu’s general secretary Dumisane Magagula said the wage increase must accurately reflect the dedication and sacrifices of municipal workers, who provided essential services amid challenging conditions. He added: “The current offer from Salga falls far short of addressing the financial pressures our members face due to the rising cost of living. We are resolute in our demand for a substantial wage increase.” A key issue in the negotiations is the proposed sectoral minimum wage of R9,890, which Samwu finds inadequate. The union has also demanded the inclusion of serviced stands in the agreement to enable workers to build their homes and contribute to local economic development. Additionally, Samwu opposes any attempts by Salga to exclude financially distressed municipalities from the collective agreement, arguing that such exclusions undermine collective bargaining principles and unfairly penalise workers. Further complicating the situation, is concern over the National Treasury’s recent advisory recommending that municipalities should budget for wage increases of between 3% and 6%. Magagula said this advisory was an unwarranted interference in the collective bargaining process. Read the full original of the report in the above regard by Hope Ntanzi at Business Report
Solidarity achieves acceptance by insurer RMA of claims of injured Gold One hostages Maroela Media reports that Rand Mutual Assurance (RMA) has now accepted the claims for damages of five Solidarity members who had been brutally assaulted by armed, striking mineworkers. The rioters, under the banner of a union dispute, trapped approximately 400 fellow workers underground between 7 and 11 December 2023 at the Gold One mine in Springs. Some of these hostages were members of trade union Solidarity and they were among the victims who were repeatedly beaten and threatened with death. The victims had to be hospitalised afterwards and they had to receive trauma counselling and treatment for, among other things, post-traumatic stress disorder (PTSD). The breakthrough regarding the acceptance of their claims came more than half a year later, after a long period during which Solidarity’s Department for Occupational Health and Safety (OHS) had to fight on behalf of its affected members. The claims had initially been rejected, but at the insistence of Solidarity the claims were reviewed, and the objection and review were successful, Johan Böning, head of OHS at Solidarity, reported. Consequently, Solidarity has received notice that RMA has decided to approve the claims of these members, even though they do not technically, on legal grounds, consider this to be a case of injury on duty due to an accident. “We are relieved and grateful that our members’ claims for what they had to endure have now been accepted. Hopefully the employer and the authorities will do whatever they can to ensure that something like this never again takes place at the mine.” Böning commented. Read the full reports in Afrikaans in the above regard at Maroela Media
CCMA endorses Dis-Chem’s medical incapacity dismissal of picker with stoma BL Premium reports that the Casual Workers Advice Office has condemned a decision of the Commission for Conciliation, Mediation and Arbitration (CCMA) that deemed it fair for Dis-Chem to dismiss an employee who, due to cancer treatment, could no longer handle the physical demands of lifting heavy bags. This after the employee, Refilwe Matinketsa, who had been employed as a picker since March 2019, was dismissed in April 2024 because of her medical inability to fulfil the job requirements. Matinketsa’s condition requires her to have a stoma, which involves using a small bag to collect bodily waste. This means she can no longer physically lift items. In 2022, Matinketsa faced cancer-related health issues, leading to frequent absences and temporary disability. When it was found she was in remission and ready to return, she was retained as a picker. In December due to her challenges, Dis-Chem moved Matinketsa to a packer role. But, Dis-Chem was unable to keep Matinketsa on as a packer due to the company’s Section 189 process, which made the role redundant. Though she was considered for a cashier role, that was not feasible due to restructuring. Dis-Chem then argued it had explored all alternatives to dismissal. CCMA commissioner Johan Stapelberg noted that Dis-Chem had accommodated the employee for a long time. But, due to a shrinking workforce and the prognosis that she could not permanently perform her duties, he deemed the dismissal as reasonable. Read the full original of the report in the above regard by Noxolo Majavu & Tauriq Moosa at BusinessLive (subscriber access only). Read too, CCMA sides with Dis-Chem following staffer’s dismissal over medical incapacity, at IOL News
Fearsome costs of living force consumers to access wages before payday BL Premium reports that the surge in the price of food, transport and airtime has led to an increasing number of consumers running out of cash mid-month, forcing them to seek financial relief by accessing their wages early. According to the report by fintech company PayCurve, the main drivers for this trend include escalating expenses in transportation, communication services, groceries and family emergencies. As a result, more consumers are finding themselves running out of cash before the end of the month and turning to early wage access for financial relief. “The data shows that 20.6% of Pay Curve’s earned wage access (EWA) users are accessing their monthly wages early to pay for transport. More than 18% are using EWA to pay for family emergencies, 11% percent are withdrawing their wages early to pay for airtime [and] 10.1% are using their withdrawals for groceries,” Pay Curve's report indicates. According to Paycurve, 80% of SA employees rely on short-term credit to manage financial gaps. By allowing workers to access earned wages before payday, EWA is helping to reduce dependency on costly credit solutions and promoting better financial stability. Meantime, many employers are struggling to offer salary increases that match inflation. Data from July 2024 indicates that regular pay growth in the private sector has slightly decreased from 6.0% to 5.9%, while the public sector has seen an increase from 6.1% to 6.3%. Read the full original of the report in the above regard by Noxolo Majavu at BusinessLive (subscriber access only) Other internet posting(s) in this news category
Staff and students at four deregistered Educor colleges still in the dark about the future Fin24 reports that four months after the Department of Higher Education and Training (DHET) announced it was deregistering four colleges owned by the private education provider Educor, worried staff and students remain uncertain about their future. In March, former DHET Minister Blade Nzimande said his department had cancelled the registration of Educor-run institutions City Varsity, Damelin, ICESA City Campus and Lyceum College. The four colleges, which together have around 13,000 students, had become "dysfunctional", he claimed. The minister said that his department had received numerous complaints about poor teaching quality, lack of student support, and the non-payment or underpayment of staff salaries. A few weeks after Nzimande's announcement, it was reported that Nedbank was seeking to liquidate one of Educor’s property arms over millions of rands in unpaid loans. The case is ongoing. But, there is no clarity about when Educor's courses will be phased out. According to an educator linked to Educor, teaching is still happening at many of the institutions, which continue to advertise for new students on their websites and social media. "Educor has failed to be transparent, and this lack of openness has affected the staff and students. Students have not been informed of any [new] developments," the source indicated. The educator stressed that Educor could at least have publicly clarified that qualifications from its institutions remained valid. But Educor has not made any public statements at all, since Nzimande announced that the four institutions had to refund students and cease operations by the end of the academic year. The DHET also did not answer questions about whether the four institutions had lodged appeals, or when the phase-out period to stop teaching needed to end. Read the full original of the report in the above regard by Jan Cronje at Fin24
KZN education department making significant strides in staffing schools, addressing vacancies, says MEC News24 reports that the KwaZulu-Natal (KZN) education department says it is making significant strides in staffing its schools as well as managing vacancies. This was advised by Education MEC Sipho Hlomuka in outlining the 2024/25 budget on Tuesday. According to Hlomuka, a total of 90,057 teaching posts had been approved, with 86,737 posts designated for public schools through Post Provisioning Norms (PPN) certificates (used to determine the ratio of pupils per teacher in the classroom). He said this initiative aimed to achieve a favourable ratio of one teacher for every 31 pupils. Additionally, 2,020 posts have been reserved for substitute educators to cover absences due to illness or maternity leave. Hlomuka reported that, between January and June this year, the department filled more than 1,700 post level 1 educator vacancies, using the provincial database of unemployed qualified individuals. "To ensure more transparency in our recruitment processes, we have taken a decision to advertise vacant post level one educator posts. Processes are at an advanced stage in this regard and an advert will soon be released publicly to enable qualified unemployed educators to apply," said Hlomuka. In April, then basic education minister Angie Motshekga revealed that KZN had more than 7,044 teacher vacancies, namely the highest in the country. In May, more than a hundred KZN teachers staged a sit-in outside the education department's head offices, demanding to be permanently employed. The group, which calls itself the KZN United Unemployed Educators and which has more than 2,000 members, said they were aware there were available vacancies in many schools across the province, but believed the department was dragging its feet. Read the full original of the report in the above regard by Sakhiseni Nxumalo at News24
Financial regulator cautions against prescribed assets for pension funds Bloomberg reports that SA’s financial regulator is opposed to any proposals that would compel pension funds to plow money into government-approved investments, as it could compromise market returns. The ANC pledged to introduce so-called prescribed assets policy after the 29 May elections to ensure the financial sector made adequate funds available for the nation’s industrialisation and economic development. But, it is unclear if the ANC will still pursue the policy after it lost its outright majority in the elections. Mandating pension funds to bankroll projects would not be advisable as it could compromise market returns and affect retiree’s outcomes, said Olano Makhubela, an executive at the Financial Sector Conduct Authority (FSCA). He went on to say: “There’s a fiduciary duty in the Pension Funds Act, which requires trustees to exercise proper duty toward the fund and the members. Any interference with that is tantamount to a breach to the Pension Funds Act, and so we remain of the view that prescribed assets is not something that we should be considering.” The policy was first tried in SA in 1956 during white-minority rule to force investment in government bonds, but was scrapped decades later. Plans to revive it have been criticised by the pension industry, which fears funds may be threatened if invested in under-performing state-owned enterprises. Read the full original of the report in the above regard by Adelaide Changole at Moneyweb Other internet posting(s) in this news category
Auditor-General laments slow pace of directors-general acting against corruption EWN reports that Auditor-General (AG) Tsakani Maluleke says the tardy manner in which directors-general (DGs) act against officials for financial wrongdoing hampers effective consequence management within the public service. This is compounded by the instability of the tenure of departmental accounting officers. Addressing the Parliamentary Press Gallery Association on Monday, Maluleke said this has the effect of also making it near impossible to recoup some R14 billion identified as irregular spending over the last five years. Five years ago, Parliament gave the AG more teeth to act against accounting officers for irregular, fruitless and wasteful expenditure. But Maluleke said they often wait for her office to insist on action before officials were disciplined. "They almost act when we keep following up. Sometimes we have to take remedial action and say: 'thou shalt discipline your team members'. And then sometimes they wait so long that the people responsible have resigned or retired by the time they try to institute disciplinary action," she indicated. DGs are appointed on five-year contracts but often don’t see out the term when they clash with their political principals or are embroiled in wrongdoing themselves. A new DG must then acquaint him or herself with the matter on hand. Read the original of the report in the above regard by Lindsay Dentlinger at EWN Four Joburg SAPS intelligence officers, two civilians in the dock for corruption and assault News24 reports that the Hawks arrested four Johannesburg Crime Intelligence officers on corruption and other charges over the weekend, and two civilians handed themselves over on Monday in connection with the same allegations. The charges stem from an incident on 30 January when the victim was allegedly approached by the police officers dressed in civilian clothes who told him that they were investigating him for fraud. The officers allegedly took the man to his house in Fourways, assaulted him and took his phones. They then allegedly transferred R180,000 from his bank account into an account belonging to one of the accused. The suspects then threatened the victim before they dropped him off in Roodepoort. The officers, all constables, were arrested over the weekend. On Monday, two civilians also handed themselves over to Hawks investigators in connection with the allegations. Apparently, one of the civilians is a bank employee, while the other owns the account into which the stolen funds were transferred. The suspects appeared in the Randburg Magistrate's Court on Monday on charges of corruption, extortion, kidnapping and assault. They were granted R3,000 bail each. The case was postponed to 30 September 2024, pending further investigation. Police Minister Senzo Mchunu "noted with concern and disappointment" the arrests and described the incident as shocking. He advised that that internal disciplinary processes would be instituted against the police officers. Read the full original of the report in the above regard by Nicole McCain at News24 Corruption within SAPS tops police minister Senzo Mchunu’s list of concerns SABC News reports that Police Minister Senzo Mchunu is concerned about corruption involving some members of the SA Police Service (SAPS). This was indicated following an incident in which a complainant was taken to the Fairlands police station, north of Johannesburg, and assaulted. Men dressed in civilian clothes and pretending to be police confiscated the man’s phones and robbed him of over R100,000 earlier this year. Police spokesperson Kamogelo Mogotsi reported that all six suspects were identified and arrested. They appeared in the Randburg Magistrate’s Court on Monday. “The actions of these individuals are a betrayal of the public’s trust and a violation of the very principles that the SAPS stands for (honour, integrity, and service). The worst thing is that these are members of the crime intelligence unit. We condemn their criminal activity in the strongest terms they deserve. Such conduct is not only criminal but deeply dishonorable,” Mogotsi commented. He advised that as a matter of urgency, internal disciplinary processes would be instituted against the police officers concerned. Read the original of the report in the above regard at SABC News. Read too, Corruption within our police will not be tolerated, says Mchunu, at The Citizen
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