Government raises public sector pay offer from 5% to 5.5%

Bloomberg reports that the SA government has increased its pay offer to public sector employees from 5% to 5.5%, as it seeks to end wage talks that began in September.

The latest offer presented at a special bargaining council meeting Monday, was “very progressive,” commented Claude Naicker of the Public Servants Association (PSA), which represents more than 245,000 workers. The increase is “their final offer; meaning that they will append their signature to the draft agreement, and what it effectively means, is that it gives the unions 21 days to either accept the agreement or not,” said Naicker. Although the offer is a climb-down from workers’ opening demand of 12% for the fiscal year that begins on 1 April, it is significantly higher than SA’s 2.9% inflation rate and the SA Reserve Bank’s 4.5% target for anchoring price expectations. The government wants to link public sector pay increases to the consumer price index for the two years after 2025-26. The draft agreement allows increases to be set at 4% should inflation fall below that level in the outer years, or 6% if consumer prices exceed that rate. Naicker commented further: “Hopefully the other unions sign. The employer is not going to go any higher than this. “We think under the circumstances it’s a reasonable offer, coupled with the other things like the housing allowance.”

  • Read the full original of the report in the above regard by Ntando Thukwana at Moneyweb

Pension Funds Contributions

Employers who default on paying over pension fund contributions in line of fire

BL Premium reports that the Financial Sector Conduct Authority (FSCA) is exploring ways to ensure defaulting employers pay outstanding contributions to pension funds amounting to more than R5bn. Thousands of employers have failed to make their obligatory contributions, a practice particularly prevalent among municipalities and in the private security industry. Zareena Camroodian, who is head of fund governance and trustee conduct in the FSCA retirement fund division, said the authority met with Nedlac and planned to meet the National Prosecuting Authority (NPA) this week about this problem.   “At Nedlac, we are trying to get all the social partners and relevant parties in the room to collectively try to resolve the issue of arrear contributions. A dashboard will be developed with various metrics to track the progress made during these sessions,” Camroodian said. The FSCA is also working with the Department of Employment and Labour about possible amendments to the Basic Conditions of Employment Act (BCEA) to deal with the payment of arrear pension fund contributions by employers.

The Pension Funds Act makes it a criminal offence not to pay pension fund contributions, liable on conviction to a R10m fine or 10 years imprisonment. Camroodian said the challenge was a number of police stations did not understand that nonpayment of contributions constituted a criminal offence. “We are engaging the NPA so that they may take on a number of cases so that a loud and clear message is sent out that delinquent employers will not be tolerated,” Camroodian said. It is incumbent on retirement fund boards to institute legal action to recover outstanding contributions and to report contraventions to the SAPS, but they have largely failed to do so.

Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)

Woman collapses in long queue at Pretoria labour office while waiting to apply for UIF benefits

GroundUp reports that a Pretoria mother was taken to a health facility on Friday after collapsing while waiting for hours at the labour office in the city centre. The woman was waiting in line with her baby, apparently to apply for Unemployment Insurance Fund (UIF) benefits, when she suddenly fell ill.   Her exact condition is not known, but she remained conscious and was taken to the nearest health facility by ambulance. GroundUp was at the office on Friday after readers complained of having to wait in long lines in Pretoria because the department’s office in Mamelodi has been closed since August last year due to “safety concerns”. At 10am the two queues outside the labour office were still very long, and the one for UIF stretched down Skinner Street. People in Mamelodi and neighbouring communities wanting to claim UIF benefits or to report work-related problems have had to travel to the already overburdened city centre labour office. Mamelodi residents in line at the labour office on Friday claimed that staff members at the Pretoria labour centre often turned them back to get additional documents when applying for UIF, which meant they have had to spend more money on travel. Joel Machabaphala from Mamelodi said he lost his job as a security guard last year and it costs him R110 for a round trip each time to the Pretoria labour office.

Read the full original of the report in the above regard by Warren Mabona at GroundUp

Reminder: Applications for Media Accreditation for International Worker’s Day Celebrations in Cape Town Are Now Open.

MEDIA ALERT:
APPLICATIONS FOR MEDIA ACCREDITATION FOR INTERNATIONAL WORKER’S DAY CELEBRATIONS IN CAPE TOWN ARE NOW OPEN.

The Congress of South African Trade Unions (COSATU) in the Western will be hosting the National Worker’s Day Rally at Athlone Stadium in Cape Town on May 1, 2024.

The May Day celebrations in 2024 will be held under the Theme: “Building a strong and united COSATU in mobilizing for the ANC electoral victory.”

This is a Central Executive Committee decision taken for the province to mobilize all communities and workers to celebrate International Worker’s Day and to reflect on how the country has progressed during the occasion of the 30th anniversary of a democratic government in South Africa, celebrating the provision of labour rights in the Constitution of the Republic of South Africa and all other labour standards from the International Labour Organization.

We are also mobilizing workers across the province to vote for the African National Congress in the Western Cape on May 29, 2024.

COSATU President Zingiswa Losi will deliver the keynote address. The African National Congress President Cyril Ramaphosa and the South African Communist Party General Secretary Solly Mapaila will deliver messages of support.

COSATU Western Cape, therefore, invites journalists and media houses to apply for accreditation to cover the national event at the Athlone Stadium.

The rally will be attended by traditional leaders, the South African National Civic Organization (SANCO), faith-based formations, youth formations, various departments, and all other stakeholders in the province.

Various artists will be performing as part of the celebrations, and we have invited surrounding communities to join in the festivities.

Media applications for accreditation may be submitted to Malvern de Bruyn, COSATU Western Cape Provincial Secretary, at malvern@cosatu.org.za, and carbon copy cleopatra@cosatu.org.za , siyabonga@cosatu.org.za with the following details:

Name:
Surname:
Identity Number:
Media House:
Contact number:
Email Address:

The application process will close on or before the 25th of April 2024.

All journalists and media houses will be informed on the venue and dates for the collection of media tags to cover the national rally in Cape Town.

All journalists must come with identification documents and/or Press Cards to finalize the accreditation process to cover the event.

Issued by COSATU Western Cape
For more information contact:
Malvern de Bruyn
COSATU Western Cape Provincial Secretary
Email Address: malvern@cosatu.org.za
Mobile: 060 977 9027
Tel: 021 448 0046

COSATU welcomes Volkswagen’s R4 billion investments in its Kariega Assembly Plant, in the Eastern Cape

The Congress of South African Trade Unions (COSATU) welcomes Volkswagen (VW)’s announcement of a R4 billion investment in its Kariega Assembly Plant in the Eastern Cape. This will not only help add a new model to its production line and ready it to be VW’s sole global manufacturer of its very popular Polo model but also secure the jobs of 3 500 workers directly employed and support 50 000 indirect jobs.

This exciting investment is a sign that the African National Congress led government’s efforts with industry and labour through the Automotive Masterplan are bearing fruits. It will help to only not sustain and grow our automotive exports to North America and Europe but also position industry to take advantage of the pending African Continental Free Trade Area currently being negotiated.

It builds upon an existing R50 billion of investment commitments in the automotive sector, including the R3 billion Stellantis plant to be built in Coega and 10 new factories employing 3 300 workers and supplying Ford in the Tshwane Automotive Special Economic Zone.

These collective efforts have seen a record number of vehicles, just under 400 000, exported in 2023.

COSATU is heartened that in spite of our many challenges as a nation, through the industrial master plans, the Department of Trade, Industry and Competition; business and labour are making positive progress in removing the obstacles to growing the economy and we are beginning to see real green shoots.

Whilst we welcome these positive developments, we have much more to do. We dare not rest whilst we have a 41% unemployment rate and an economy in need of active support and facing many headwinds. We are confident that the kinds of social compacts we are crafting in the industrial master plans will lay the foundation for success.

Issued by COSATU
For further information please contact:
Matthew Parks
Acting National Spokesperson & Parliamentary Coordinator
Cell: 082 785 0687