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 Tuesday morning roundup, see
summaries of our selection of South African
labour-related reports.
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Cosatu pushes for more ‘two-pot’ retirement changes over concerns about taxation, retrenchments and other issues BL Premium reports that the long-awaited ‘two-pot’ system of retirement reform took effect on Monday, with expectations that pension members would withdraw billions of rands from their funds over coming weeks and months. But already trade union federation Cosatu has made proposals to the National Treasury and SA Revenue Service (SARS) for further reforms. Deputy Finance Minister David Masondo said in a speech to the Cosatu central executive committee on Friday that the Treasury was willing to engage with the federation on these proposals. The new regime gives workers the opportunity to withdraw money from their retirement funds without having to resign from their jobs. In a submission to the Treasury and SARS, Cosatu has detailed the further changes to the system it wants to see. These relate to taxation, retrenchments, larger withdrawal relief and education loans. On taxation, Cosatu has pleaded for taxation relief on withdrawals, especially for low-income workers. In terms of the law as it now stands, workers will pay marginal tax rates on withdrawals before retirement. “Workers are angry at what they feel is government profiteering off their misery and indebtedness caused by a stagnant economy they are not responsible for,” the Cosatu submission states. Treasury’s Chris Axelson confirmed on Friday that the two-pot system was not a scheme by the government to increase tax revenue. Cosatu also argues that workers who lose their jobs, for example through retrenchment or dismissal, must be allowed to continue to access their entire pension funds. Another proposal by the federation is for workers to be given the right to choose to transfer funds from their vested pot to the new two-pot regime. Cosatu also wants workers to be allowed to use their pension funds for education loans or as collateral for home loans. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only) With the fiscus losing billions, retirement contribution tax benefit under scrutiny BusinessLive reports that Stellenbosch University professor Ingrid Woolard has suggested that there is scope to relook at the roughly R72bn in tax revenue the fiscus forgoes each year due to the retirement contribution benefits enjoyed by high-income earners. In terms of the benefit, taxpayers can deduct up to 27.5% of their taxable income if they make an equivalent contribution to a retirement fund. As a result, those in upper income tax brackets avoid a 45% tax rate as a result of their retirement contribution, whereas those at the bottom end avoid only an 18% marginal tax rate. The Institute for Economic Justice (IEJ) has long called for a reduction of this benefit as a way of generating more funds for the fiscus. In a recent panel discussion, Woolard opined that there was probably a better way of dealing with the tax benefit on retirement contributions. She elaborated: “But that is not saying we should try to get our hands on all the R72bn and do away with retirement contributions (tax benefits). The savings rate in SA is incredibly low. I would be very, very anxious if we said let’s not incentivise retirement fund contributions at all. I think this is where the balances come in. It is more nuanced than just looking for revenue or just worrying about redistribution.” Questioned about whether the National Treasury was looking into this or was concerned about it, Treasury acting head of tax and financial sector policy Chris Axelson said: “We try to look at the research that comes out on these types of issues, including on medical tax credits and retirement contributions, but we haven’t made any announcement that we are looking to change them.” Axelson pointed out that the Treasury had gone to extraordinary lengths to close tax loopholes, for example through a very broad fringe benefits taxation regime and capital gains tax. “There is no low-hanging fruit anymore,” he noted. Read the full original of the report in the above regard by Linda Ensor at BusinessLive
Families of 39 police officers killed on duty remember them in heartfelt tribute TimesLIVE reports that the Union Buildings in Pretoria were somber on 1 September when the annual SAPS Commemoration Day was hosted. Relatives and children of police officers who sacrificed their lives in the line of duty gathered at the SAPS Memorial Site to honour their loved ones. The emotional ceremony paid tribute to 39 officers who died in the line of duty between 1 April 2023 and 31 March 2024. Their names were engraved on the SAPS memorial wall, serving as a symbol of the nation's gratitude and respect. Police Minister Senzo Mchunu delivered the welcoming address, saying: “As we reflect on the legacy of those we commemorate, let us remember not only their sacrifice but also their enduring spirit. They exemplified the highest ideals of service and bravery and their contributions will forever be etched in the fabric of our nation's history.” Acting President Paul Mashatile addressed the gathering, saying an assault on SAPS was a direct attack on the state and equal to treason. “Police officers must not die with their service firearms in their holsters when criminals refuse to surrender and start firing at police. When a shoot-out ensues between police and criminals, police have a duty to protect their lives as well as those of their colleagues and community members. In your defence you must show criminals you are in charge. You must act decisively, using proportionate force in line with the threat you are facing according to legal provisions,” he told those present. Read the full original of the report in the above regard by Modiegi Mashamaite at TimesLIVE. Read too, Government pays homage to 39 SAPS officers killed on duty last year, at IOL News Urgent call for justice after Eastern Cape principal's murder on school premises last week News24 reports that Eastern Cape police have been urged to work with speed in apprehending the suspects who gunned down a principal at a primary school in KwaBhaca in the Alfred Nzo West district last Wednesday. According to the education department, the Zakhele Primary School principal was killed inside the school premises. The department said the perpetrator, who was on foot, quickly disappeared into a nearby forest after the shooting. Eastern Cape Department of Education MEC, Fundile Gade, said the police were called and quickly responded with dogs but the perpetrator was not found. He said pupils and staff members were asked to stay home on Wednesday and Thursday, and that a governing body meeting was scheduled for Monday to brief everyone about the case and the department's plan to support the school. Gade said that in a separate incident, a group stormed the house of a nurse from the Efata School for the Blind in Mthatha and demanded R50,000. They took his cellphone, laptop and TV. Gade indicated further: “The same criminals sent a short message (SMS) to the principal demanding the same ransom. A case of extortion has been opened with the police and an investigation is under way.” He urged community members to work with all law enforcement agencies to bring the criminals to book. Read the full original of the report in the above regard by Sakhiseni Nxumalo at News24 ‘Encouraging progress’ made in Western Cape’s inquiry into deadly collapse of George building TimesLIVE reports that the Western Cape government’s investigation into the deadly building collapse in George is making encouraging progress. In May, 34 people were killed when the apartment block under construction collapsed in the town. Investigations into the cause of the tragedy, including one by an independent structural engineering firm appointed by the provincial government, continue. Western Cape premier Alan Winde reported: “The progress of our investigation is encouraging, specially considering the complexities associated with such incidents. We will continue to closely monitor our probe and the others. It is vital that we get to the bottom of what caused the unthinkable tragedy so those responsible, whoever they may be, are held to account and face the consequences of their actions, and those affected by this disaster can find closure.” Winde added that the findings of all of the investigations should be consolidated to get an overall understanding of what went wrong. The Department of Social Development has contacted more than 60 families to conduct assessments of their needs and those of affected workers, and several psychosocial support interventions have been undertaken. Read the full original of the report in the above regard by Kim Swartz at BusinessLive
Municipality tells protesters that striking workers are to blame for Makhanda’s water woes News24 reports that the frustrated community of Makhanda marched to the offices of Makana Local Municipality on Friday, demanding an end to a crippling water outage that has led to institutions suspending operations. The protesting community was led by Rhodes University, which suspended lectures on Friday amid a week-long water outage in the town. The municipality has blamed its water supply challenge on striking municipal employees, who are protesting about the non-payment of their overtime. Addressing the university community and stakeholders, Makana municipal manager Pumelelo Kate said: "Our workers have been refusing to perform certain functions. Makana is not running out of water. The only problem is the management of the reticulation of water due to our workers [who are on strike]." Kate also told the protesters: "Our reservoirs have started to refill water. We are working around the clock to ensure everyone is getting water." But Eastern Cape Cooperative Governance and Traditional Affairs MEC Zolile Williams' spokesperson, Pheello Oliphant, said Makana's water problems were deeper. "The problem in Makana is that its water infrastructure has decayed over the years. The municipality has no ability to ensure sustainable water supply to the community of Makhanda." Oliphant said the municipality had no capacity to resolve its water challenges and elaborated: "Their engineering department had been found wanting. The municipality has old pipes. We have communicated with the national government to assist us in resolving water problems in the town. Our team of engineers has been sent to the municipality to ensure that water issues in the area were addressed." Read the full original of the report in the above regard by Sithandiwe Velaphi at News24 (registration required)
Damelin campus in East London abruptly shuts its doors with staff still owed July and August salaries Fin24 reports that the crisis engulfing private education group Educor has intensified after it abruptly shut its Damelin East London campus late last month, leaving staff and students fearful about their futures. A staff member at the campus on Union Street in the central business district said he and colleagues were shocked to learn that teaching would be suspended at the end of August. He said the 18 staff members who worked at the campus had still not been paid for July and August, although they had continued to come to work and do their jobs because they did not want to let their students down. Despite working without pay for two months, employees claimed management did not give them prior warning that the campus would be closing. Contract staff were called in for one-on-one consultations, where they were told to sign documents ending their contracts, which still had a few months to run. Permanent staff only had a meeting about severance packages on Friday. Apparently, three might be kept on for remote teaching. Even after meeting with HR, staff still did not receive payment for July and August. They were, however, sent documents to claim unemployment insurance. Educor, which also owns City Varsity, ICESA City Campus and Lyceum College, did not respond to queries. The private education provider has mostly kept silent since Higher Education Minister Blade Nzimande announced the cancellation of the registration of four of its colleges in March. Read the full original of the report in the above regard by Jan Cronje at Fin24 (registration required)
Shocking accounts of long UIF queues and bad service, with some claimants even waiting for years Fin24 reports that scores of South Africans who have been paying unemployment insurance for years, sometimes decades, say they're shocked by the state of the system when they try to claim their benefits. The Unemployment Insurance Fund (UIF), with investments worth about R135 billion, is funded by a 2% payroll tax split between employees and employers. It's supposed to step in quickly with short-term relief for formal sector workers who lose their jobs, get sick, or take maternity or adoption leave. But claimants often say they have to wait months, even years, with no resolution to their applications, despite repeated promises that they're being "escalated". They say the problems go beyond the usual hassles expected when dealing with a big government department. Difficulties in getting responses to emails or help via the fund's overburdened call centre mean claimants often have to visit one of SA's 120 labour centres for an in-person meeting. Queues form at labour centres across the country, with some claimants arriving well before dawn. Many of those queuing are already stressed from losing their jobs in a country with a 33% unemployment rate. They can't afford to waste time in queues or spend money on transport. According to union federation Cosatu, workers were struggling to access their funds when they were most in need. Organised business and Cosatu both said the fund should be placed under administration. But, the UIF said it was making a "concerted effort" to improve the experience of claimants. Despite challenges, it was processing and paying between R80 million and R100 million in benefits per day. Responding to questions about apparent gremlins and bugs in its IT systems, the UIF said it had started on "critical" upgrades. Read the full original of the report in the above regard by Jan Cronje at Fin24 (registration required) Other internet posting(s) in this news category
Fuel prices slashed from Wednesday BusinessLive reports that as predicted, the Department of Mineral Resources & Energy has confirmed that major fuel price cuts will be implemented from midnight on Tuesday. Motorists can look forward to paying 92c/l less for both grades of petrol (93 and 95 octane), while the wholesale prices of diesel will drop by R1.05/l for low sulphur 50ppm fuel and by 79c for 500ppm sulphur diesel. The wholesale price of illuminating paraffin will reduce by R1.03/l. The main reasons for the fuel price adjustments are lower international fuel prices and a stronger rand. It will be the fourth consecutive month that fuel prices have decreased and includes a 5.3c/l increase in the fuel retail margin to accommodate a wage increase for forecourt employees. The BusinessLive news report sets out the fuel prices that will apply from Wednesday. Read the full original of the report in the above regard at BusinessLive
Despite ‘significant engagement’, more than 25% of Mr Price's shareholders again vote against remuneration policy Fin24 reports that shareholders again pushed back against the implementation of Mr Price’s remuneration policy, with investors holding more than 25% of Mr Price shares saying no to it in a non-binding vote at the retailer’s AGM on Thursday. This was despite the JSE-listed retailer having previously held discussions with shareholders on remuneration issues after it failed to secure the required 75% threshold at the 2023 AGM. It was not clear what aspects of the remuneration policy shareholders were against. Reading out the results of the voting, independent chairperson Nigel Payne said that while it passed "at the 50% level", not reaching the 75% level meant Mr Price would have to invite dissenting shareholders to engage with him and the chairperson of the remuneration committee. While he noted that the 75% level was a high hurdle, he said the group was disappointed as it had undertaken significant engagement with shareholders. "We had generally positive feedback and support," he reported. Payne said Mr Price would now "reach out and engage" with shareholders as required. According to Mr Price’s 2024 remuneration report, CEO Mark Blair took home a total R45.913 million for the 12 months to end-March 2024 including short- and long-term incentives. This was significantly higher than the R10.667 million he received in the 2023 financial year. However, in financial year 2023, Blair did not receive a short-term bonus as a result of the group’s earnings having declined. Read the full original of the report in the above regard by Nick Wilson at Fin24
Hospital Association proposes mandatory medical scheme enrolment for employees and defendants BusinessLive reports that the Hospital Association of SA (Hasa) wants to revive a set of healthcare reforms that were abandoned when the ANC embarked on National Health Insurance (NHI) to slash the number of patients who rely on public health facilities and improve everyone’s access to care. Before the ANC’s 2007 resolution on NHI, the Department of Health (DOH) had planned to introduce compulsory medical scheme membership for everyone in formal employment and their dependants, along with a risk equalisation fund to level the playing field between schemes. If similar plans were brought into play today, mandatory medical scheme membership could triple the size of the medical scheme market from 9.2-million to 27.5-million beneficiaries and reduce the number of people dependent on the state from 53.8-million people to 35.5-million. “We have done a lot of research on this and hope we can collaborate and co-operate with the government to take it forward. This is an approach that won’t cripple the economy,” Netcare CEO Richard Friedland elaborated after presenting the research at Hasa’s annual conference. He told delegates that there were legitimate concerns about the feasibility of the reforms proposed in the NHI Act, which was signed into law by President Cyril Ramaphosa in May, and that the scheme would take far too long to implement. Critics of NHI have questioned its financial viability, given SA’s high unemployment rate and small tax base. Friedland also appealed for greater collaboration between the public and private sectors to train healthcare personnel, and to reduce state sector waiting lists for oncology and elective surgery. Read the full original of the report in the above regard by Tamar Kahn at BusinessLive
Justice Minister linked to VBS Bank scandal to testify before Parliament on loan allegations IOL News reports that Justice Minister Thembi Simelane is set to appear before the Justice Portfolio Committee in Parliament this week regarding her alleged involvement in the VBS Mutual Bank scandal. The committee, chaired by Xola Nqola, confirmed that Simelane will be called to explain her links to the VBS saga on Friday. This was prompted by media reports that Simelane, a former mayor of Polokwane, allegedly took a R575,600 load from the bank to purchase a coffee shop in Sandton. In a statement, Nqola said the committee had noted the allegations with grave concern. “We therefore thought it prudent to call the Minister speedily to a committee meeting where she can take Parliament and South Africans into confidence regarding these allegations,” he indicated. President Cyril Ramaphosa has also demanded answers from Simelane on her gains from the collapsed bank. Meanwhile, Simelane will appear before the African National Congress (ANC) integrity commission in response to claims of questionable activities in the VBS scandal. ANC secretary-general Fikile Mbalula said Simelane must present a full report on the allegations against her. Read the full original of the report in the above regard by Kamogelo Moichela at IOL News. Read too, Justice Minister Simelane’s ‘dodgy past' as mayor of Polokwane, at City Press (subscriber access only)
Former finance manager at Northern Cricket Union sentenced to 10 years for fraud and theft TimesLIVE reports that the Pretoria Specialised Commercial Crimes Court on Monday sentenced Prishne Khan, a former finance manager, to 10 years’ imprisonment for fraud that resulted in losses exceeding R3m. In addition, Khan, 37, was sentenced to a further four-year jail term for theft amounting to R350,000. The court ordered the four-year sentence to run concurrently with the 10-year jail term. Khan was arrested hiding in a freezer in her new home in Nigel on Friday after she had absconded from her trial last year when she was found guilty of the charges. Khan had been employed as a bookkeeper at the Northern Cricket Union from June 2015 to January 2017, with responsibilities that included processing payments for various service providers. She altered banking details on multiple invoices, replacing them with those of her husband and cousin and misappropriating money. When questioned about her actions, Khan resigned from her position. After her resignation, Khan worked as finance manager at Customer Loyalty Consultant and again manipulated customer banking details to funnel payments into accounts controlled by her husband and cousin. Khan pleaded guilty to the charges and attributed her criminal conduct to financial difficulties, claiming she needed the money for essentials, including purchasing a motor vehicle for her husband. However, evidence in the pre-sentence report revealed that she had used the stolen funds for gambling. Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE
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