In our roundup of weekend and recent reports,
see the following summaries of our selection of
South African labour-related articles.
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Parks Tau adamant Amsa had to be saved Business Times reports that according to Department of Trade, Industry & Competition Minister Parks Tau, SA’s steel industry would lose a major slice of the domestic market for long steel products if the government allowed ArcelorMittal SA (Amsa) to close its Newcastle plant. He said last week that the R1.6bn cash injection for Amsa from the Industrial Development Corporation (IDC) had been approved not just to protect the 3,500 jobs at risk, but also to preserve the industry’s position in the local market. He said keeping the plant operational was crucial for the economy of Newcastle and northern KwaZulu-Natal, and to avoid the downstream repercussions on private sector infrastructure projects. The state-owned IDC, whose cash injection is aimed at providing a breathing space of at least six months for the Newcastle plant, is also considering increasing its stake in Amsa. According to Amsa CEO Kobus Verster, the company will now focus on making the long-steel business profitable. “We should use this time to bring the business to sustainability and profitability. That is our objective during the next six months,” he indicated. Preserving jobs is at the heart of the agreement with the IDC and the Unemployment Insurance Fund, which has approved a TERS (temporary employer/employee relief scheme) grant to fund employee costs. “We will not do mass restructuring or reduction. We will still work on the salary bill that is in terms of the pay scale and things like that. We will continue to work on things like productivity and pay scales. The government realised that it is a lot cheaper to prevent job losses than to fund the unemployed people through the UIF and other social means,” Verster commented Read the full original of the report in the above regard by Kgothatso Madisa & Dineo Faku at Business Times (subscriber access only)
Jobs bloodbath likely as Trump 31% tariff threatens manufacturing, agriculture Sunday World reports that economists have warned that the tariff that US President Donald Trump imposed on South African imports could result in economic shocks, including a jobs bloodbath and soaring prices of goods in the long term. Last week, Trump shocked markets by unveiling protectionist measures, hitting all countries doing trade with the yanks. This saw SA being slapped with a 31% tariff, a steep hike compared to the current 7.6% tariff. Economist Azar Jammine said the increased tariff would impact negatively on the local automotive manufacturing sector. “Around 6.5% of the automotive sector goes to the US and the value is R27-billion,” Jammine pointed out. He added that the tariff would affect brands like Mercedes-Benz and BMW and might require them to reduce production and the workforce. He said the job losses were likely to kick in after two months: “It’s not something that will happen in the next week. It will take quite a while because you’ve got stocks of goods that have already been exported. It’s not like SA companies are not going to export anything. It’s just that the demand for their goods might decline in the US due to the higher prices.” Economist, Mandla Maleka said the tariffs could lower demand for SA products like wine, citrus, and macadamia nuts. Trade and industry minister Parks Tau on Friday said it would be ill-considered to impose reciprocal tariffs. He added that the government was going to engage with the US and would send an official delegation comprising government officials and other stakeholders. Read the full original of the report in the above regard by Mpho Sibanyoni at Sunday World. Read too, Trump's tariff war: Where to now for SA products? at City Press (subscription or trial registration required). En ook, Trump-tariewe ‘groot slag’ vir varsprodukteprodusente, by Maroela Media
Portfolio Committee oversight reveals shocking conditions at police stations Weekend Argus reports that SA’s police stations are in a state of crisis, with dilapidated infrastructure, unsafe working conditions, and a lack of resources severely hampering the ability of officers to perform their duties. This is according to the Portfolio Committee on Police, which recently concluded oversight visit to several police stations in the Eastern Cape, Western Cape and KwaZulu-Natal. Among the most shocking revelations is the state of Belhar Police Station in the Western Cape, where officers are reportedly forced to share toilets with criminals – a practice that not only breaches basic human dignity but also compromises safety. At Verulam, officers are exposed to unsafe and unsanitary conditions, such as collapsing floors and temporary offices that leak during the rainy season. Meanwhile, Durban Central struggles with malfunctioning lifts, non-operational cells, and broken toilets – issues that directly affect the ability of the SAPS to deliver quality service. Police and Prisons Civil Rights Union (Popcru) spokesperson Richard Mamabolo, commented: “Part of the concerns we continue to raise relate to the uneven allocation of resources across police stations, with those in rural and township areas facing multiple challenges while those within affluent areas are better resourced.” The Portfolio Committee called for urgent action to address the dire state of many police stations across the country. Read the full original of the report in the above regard by Tracy-Lynn Ruiters at Weekend Argus
State of nursing training a major concern at Denosa ninth national congress City Press reports that the Democratic Nursing Organisation of SA (Denosa) held its ninth national congress last month, which was attended by more than 400 delegates representing over 80,000 nurses from across the country. General secretary Kwena Manamela said a wide range of resolutions was adopted, focusing on organisational, political, international and socioeconomic issues. Internal matters focused on modernising Denosa's operations and strengthening its membership base. Political alliances and international affiliations were also reviewed. From a socioeconomic standpoint, Manamela said bread-and-butter issues remained central. He indicated: “We went deep into the issues of salaries, conditions of service and how we represent nurses at the bargaining councils. The congress also evaluated previous resolutions to track gains and identify losses.” Among the most pressing issues was the state of nurse training, a matter Manamela called a "very big danger" for the future of healthcare. "The numbers have gone down in colleges. Some [colleges] have closed. Some institutions are not accredited because they're not meeting the standards," he pointed out. This, Manamela warned, could spell disaster for SA: "If we look five or six years ahead, at the current rate the statistics show, we’re going to have a [staffing] crisis." Denosa called for more nursing education institutions to be accredited and also raised concerns about the quality of training on offer and whether the current curriculum was producing the nurses the country needed. The exodus of nurses to countries abroad was a major concern raised at the congress. Meanwhile, Denosa is engaging with government on the possibility of structured agreements with other countries, which would allow nurses to work abroad temporarily as part of official exchange programmes. Scroll down to read the report by Lunga Simelane on the Denosa congress at City Press (subscription or trial registration required)
UIF under fire from MPs for financial mismanagement and audit failures Sunday Independent reports that the Unemployment Insurance Fund (UIF) found itself under intense scrutiny during a recent Parliamentary Committee meeting, as MPs grilled officials over persistent financial mismanagement, irregular expenditure, and governance failures. One of the most glaring issues raised was the UIF’s consistent failure to submit its annual financial statements on time, leading to repeated audit qualifications. The 2023/2024 audit outcome was still outstanding at the time of the meeting. Meanwhile, the Temporary Employer/Employee Relief Scheme (Ters), implemented during the Covid-19 pandemic, continued to cast a long shadow over the UIF’s reputation. UIF Commissioner Lucky Mkhonto outlined efforts to verify payments made under the scheme, revealing that some funds had gone to deceased individuals, foreign nationals, and even incarcerated persons. Another contentious issue was the UIF’s investment portfolio, particularly unlisted companies managed by the Public Investment Corporation (PIC). Concerns were raised about lenient sanctions imposed on officials involved in maladministration. Serious transgressions were said to have only resulted in written warnings. MPs called for stricter measures to hold senior officials accountable, urging the UIF board to implement clear disciplinary actions to prevent recurring misconduct. Minister Nomakhosazana Meth emphasised her commitment to improving oversight by shifting audit reviews from quarterly to monthly sessions. She also acknowledged the need for stricter enforcement of ethical conduct and discipline. However, she clarified that her role in disciplinary matters was limited by law and reiterated that administrative processes had to be respected. Read the full original of the report in the above regard by Sizwe Dlamini at Sunday Independent
Orion Minerals CEO announces sudden resignation of CEO Errol Smart Miningmx reports that Orion Minerals announced last week that its founding CEO Errol Smart was to resign with near immediate effect “following the recent achievement of key milestones”. He left the company on Friday after 12 years during which he took Orion into two copper projects in the Northern Cape. Smart’s departure came as a surprise given the recent progress with Orion’s projects. No specific reason for his sudden resignation was given by the company. Smart will be succeeded as MD and CEO by Tony Lennox, a non-executive director of Orion with a background in development of large-scale mining projects. He was previously MD of Palabora Copper when it was jointly owned by Rio Tinto and Anglo American. “Tony will work closely with the board and the executive team to maintain Orion’s existing strategic momentum and oversee its imminent transition from project developer to operating mining company,” said Orion in a statement to the JSE. Lennox said he had “substantial insights” into Orion’s Prieska Copper Zinc and Flat Mines projects. Read the full original of the report in the above regard by David McKay at Miningmx Other labour / community posting(s) relating to mining
Proposed private security industry weapons rules ‘would disarm those fighting crime’ BL Premium reports that in a move that could radically change how the private security industry operates, Police Minister Senzo Mchunu has proposed a raft of regulations on firearm use that has been described as “disarming” those trying to fight the crime scourge. The proposed amendments, under the Private Security Industry Regulation Act, which Mchunu gazetted on 28 March, will bar security guards from using “prohibited weapons” such as tasers, teargas, water cannon, sponge grenades, rubber/plastic bullets “and any other weapon that may harm civilians”. Security guards would not be able to use a weapon during assemblies, demonstrations or protests, meetings or any other incidents classified as crowd management unless the use of such weapons was authorised and permitted in terms of the law. Security service providers would be prohibited from carrying firearms in taxi ranks, cemeteries, stadiums, shopping malls, churches, restaurants, parks, hospitals, public and private schools or similar facilities. SA’s private security industry employs more than 580,000 personnel – far more than the 180,000 by the police. Defence and security analyst Helmoed-Römer Heitman characterised the draft amendments as a “bad idea that is entirely divorced from reality”. David Bruce of the Institute for Security Studies said the draft regulations “do not reflect a clear approach to the use and possession of firearms and other weapons by the private security industry. Several aspects have not been thoroughly considered. The regulations will need a lot of work to be practical.” Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only). Read too, Proposed security industry firearm restrictions criticized, at Sunday Tribune. En ook, Herroep konsepregulasies oor private veiligheidsbedryf – Free SA, by Maroela Media
Cosatu insists government wage bill and head count not 'out of control' EWN reports that the Congress of South African Trade Unions (COSATU) insists that the government wage bill and its head count are not “out of control”. The ANC tripartite alliance partner said it was a “false notion” that the wage bill was too high and claimed that it had actually declined over the last 20 years. Cosatu made the submission during the standing committee on appropriations public hearings on the Division of Revenue Bill, which deals with equitable division of revenue to provinces, municipalities and national departments. Organisations continued their appeal to National Treasury to adjust their budgets and increase the allocations for functions like basic education and infrastructure. On the public service, Cosatu said there was always a view that the wage bill was out of control and should be reduced in the budget. But, spokesperson Matthew Parks said the wage bill, which was projected to exceed R750 billion for the current fiscal year, was not as high as it was made out to be. “There’s always a bit of a false notion that the wage bill is out of control, and it’s not. It’s declined over the past two decades from 40% to 31% of the budget. Others who say the headcount is out of control, again we’ve seen the headcount remain stable since 1994, literally same number, and the population has almost doubled,” he noted. Parks argued that this was evident in the rise in the ratio of teachers to learners, nurses to patients and police officers to members of society. Read the original of the report in the above regard by Babalo Ndenze at EWN Municipalities splurged R3.3bn on overtime in 2023/24 Sunday Times reports that six metro municipalities splurged more than R3.3bn on overtime in the 2023/24 financial year. The latest available financial statements reveal that the DA-run City of Cape Town spent the most on staff overtime in the past financial year, paying its workers R1.15bn for putting in extra hours. Cape Town MMC for corporate services Theresa Uys attributed the huge overtime bill to staff putting in extra hours to deal with natural disasters, among other reasons. Hot on the heels of Cape Town was the City of Johannesburg, where workers claimed R946m in overtime. The City of Tshwane claimed third spot in the overtime splurge, paying its workforce R601m. According to SA’s labour law, overtime is capped at no more than 10 hours a week, or 40 hours a month. A municipal source said the huge spending on overtime pointed to abuse of the system by employees hell-bent on inflating their pay. “The culture of overtime is a sophisticated scheme to fleece the municipality, and workers have perfected this heist. We don’t have accurate monitoring systems in place,” the source opined. Another senior municipal source lamented what he described as workers “gallivanting” during working hours, only to attend to technical faults and other related matters after hours. But, Dumisane Magagula of the SA Municipal Workers’ Union said workers were not to blame for the huge overtime splurge because they could not work overtime without an employer instructing them to do so. The Independent Municipal & Allied Trade Union echoed Magagula’s sentiments: “There are people working excessive overtime because it is necessitated for service delivery, as there is an urgent need and shortage of manpower.” Read the full original of the report in the above regard by Sisanda Mbolekwa at Sunday Times (subscriber access only)
Denosa backs NHI, saying 'Let's give new healthcare system a chance' City Press reports that the Democratic Nursing Organisation of SA (Denosa) has called on South Africans to give the contentious National Health Insurance (NHI) a fair chance, rather than pre-emptively labelling it as prone to corruption or failure. Denosa general secretary Kwena Manamela pointed out last week that the union and its federation Cosatu had supported the NHI from its inception and had engaged extensively throughout its policy development phases. Manamela indicated that Denosa was part of the Friends of the NHI campaign and was actively involved in countering what he described as a "negative narrative" dominating the public discourse about the NHI. However, many critics have argued that the system could destabilise the healthcare sector due to corruption, funding constraints and potential inefficiencies. But, Manamela emphasised that it was important to distinguish between infrastructure challenges in the public healthcare system and the NHI's core function. “Let the fund take care of the healthcare of the people – fund it, pay for it – and let government take care of the infrastructure. Walls falling off, plumbing, roads: that’s not the NHI’s function,” Manamela argued. On the concerns that the NHI would overburden stretched public sector nurses, Manamela maintained that that had no bearing on employment conditions, salaries or staffing. Those remained within the remit of the Department of Health as the employer. However, he acknowledged that Denosa was committed to improved working conditions for nurses. Read the full original of the report in the above regard by Lunga Simelane at City Press (subscription or trial registration required)
Government pays outstanding Free State education department GEMS contributions Following a demand from the Public Servants Association (PSA) for immediate intervention and accountability, the SA government has paid outstanding contributions to the Government Employees Medical Scheme (GEMS). The PSA had raised concerns about non-payment of medical aid contributions by the Free State Department of Education, which violated the GEMS Medical Management Policy and the Medical Aid Schemes Act. The PSA demanded immediate intervention to ensure all outstanding contributions were paid without delay and those responsible be held accountable for violating the relevant regulations . The government has now confirmed that all outstanding monies have been paid to the relevant third parties, addressing the PSA's concerns. The State provides medical assistance through GEMS and pays 75% of the employee's total monthly contribution, subject to a maximum employer subsidy. Lees, Departement betaal agterstallige Gems-bydraes, by Maroela Media
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