by Dev_SACCAWU | Labour Market News
TFG plans to close ‘hundreds’ of unprofitable SA stores and ‘fold’ marginal brands into more efficient operating models. Image: Supplied
Retail major The Foschini Group Limited (TFG), the owner of around 40 brands across three markets, has commenced a formal consultation process under Section 189A of the Labour Relations Act that could see retrenchments of some of its South African staff.
Staff were notified of the restructuring process last week, and TFG confirmed to Moneyweb that the process is under way.
Read:
TFG borrowed R1bn to buy back shares that are now worth R553m
TFG slumps to levels last seen in 2010
Moneyweb understands that a number of roles at its head office could be affected but that this process does not impact its store-level retail operations.
It is entirely unclear whether any of its sprawling manufacturing units across both clothing and furniture will be affected.
‘Protecting employment’
In response to questions from Moneyweb, TFG said only that it “has been reviewing part of its Head Office operating model to reduce complexity and structurally lower our cost of doing business, in line with the group’s strategic objectives”.
“Where roles are affected, we always follow a consultation process in terms of Section 189 of the Labour Relations Act. These are proposals, not decisions, and we will follow the appropriate due process.
“Employees who may be affected are engaged directly, and any alternatives they raise are fully and properly considered,” it said.
“Our priority is to protect employment wherever possible, including redeployment into suitable roles across the group.”
Read:
TFG did not directly address any of Moneyweb’s questions, including those related to how many roles and/or which functions may be impacted.
It hinted at this eventuality in its annual report, saying that the “strategic actions” it is now “implementing go further: tight control of capex and inventories, an aggressive reduction in structural operating expenses and further cutting corporate overheads now that the build phase is reaching completion”.
Organising brands into ‘stacks’
In its TFG Africa retail business, its Project Vela programme will “organise brands into operating ‘stacks’”, which “will simplify structures, remove layers and improve agility, with marginal brands folded into more efficient operating models”.
Read: TFG ups its sneaker game with Street Fever acquisition [2022]
Moneyweb understands that the Section 189A process is, in part, related to the 2022 acquisition of Street Fever, which saw it combine that brand’s 114 stores with its fast-growing Sneaker Factory outlets.
At that point, it ‘absorbed’ about 650 jobs from that independent retailer, of which no more than around 50 would’ve been traditional ‘head office’ ones.
The real question is why it has taken TFG more than three years to deal with potential duplications arising from this purchase.
It has an extensive ‘Sports and Lifestyle’ brand portfolio, anchored by Sportscene and Totalsports. Along with this, it has opened JD Sports stores under licence from the UK brand, and it operates the niche youth-focused Archive brand.
Sneaker Factory targets the value segment and was specifically acquired to allow TFG to extend its penetration lower down into that market.
TFG Africa under pressure
Within TFG Africa, ‘Sports’ accounts for just more than 20% of sales, making it the largest contributor among divisions.
Its share price has reflected this pressure with shares down 35% so far this year.
Over one year, its share price has more than halved (down 51%).
Since the start of its, in hindsight, disastrous capital markets day in August 2025 (technically two days), it has shed 54% of its market value, with the big drop coming in October after it published a profit warning where practically every metric was in the wrong direction.
Over the last 30 days, shares are up 7%.
Closing unprofitable stores
It continues to pursue an “aggressive” closure of unprofitable stores in South Africa, in which it has the vast majority of outlets in the TFG Africa division.
Read: TFG takes earnings hit despite sales growth
At the end of the financial year, it had 3 432 of its total 4 914 outlets in South Africa. It aims to shut “hundreds” of unprofitable stores as part of this reset.
Source: https://www.moneyweb.co.za/news/companies-and-deals/tfg-commences-section-189-process/
by Dev_SACCAWU | Labour Market News
City of Tshwane chambers
Image Credits: X@CityTshwane
The City of Tshwane has rejected claims that its 2026/27 budget faces a R2 billion shortfall for employee-related costs.
According to the city, the figure reflects the difference between an initial departmental request and the final approved allocation.
Group Human Capital Management initially requested about R15bln for personnel costs, but Group Financial Services approved approximately R13mln following affordability and budget scrutiny.
The city says the approved allocation is sufficient to meet anticipated employee-related expenditure and that it has not identified a material risk of overspending at this stage.
Tshwane City says that the R13bln allocation includes R229mln for filling vacancies and R362 mln for salary back-pay obligations during the financial year.
The difference between the initial request and approved allocation should not be interpreted as an unfunded liability or salary shortfall.
The city emphasises that employee-related expenditure will continue to be closely monitored to ensure personnel costs remain within the approved budget.
Should spending trends require additional funding, the city says this can be addressed through established processes, including the adjustments budget.
-Reporting by Culvin Mabasa
Source: https://www.sabcnews.com/sabcnews/city-of-tshwane-denies-r2-billion-shortfall-for-employee-costs/
by Dev_SACCAWU | Labour Market News
Msunduzi Municipality – City of Choice / Facebook
The South African Municipal Workers’ Union says it is still working to reach an agreement with Msunduzi Municipality following a renewed strike by municipal workers.
The South African Municipal Workers’ Union says it is still trying to reach an agreement with the Msunduzi Municipality.
On Thursdays, workers downed tools as part of an ongoing labour dispute – with the municipality saying the strike affected service delivery across the city.
SAMWU‘s Bongi Gule says the latest strike follows an earlier work stoppage in June, which was suspended after the union and municipality agreed on eight issues.
She says the union then tried to get the agreement signed, but the municipality failed to come on board – leading to the strike resuming.
“We’ve agreed with the municipality that on Monday we must finalize this thing. We’re not too sure whether they will sign, because I cannot confirm at the moment whether they will sign or not, because that’s what they did last time.
“They said they will sign and then they didn’t. But still we are hoping that on Monday everything will be finalized.”
The municipality has meanwhile condemned the alleged intimidation of staff, damage to municipal infrastructure and any actions that infringe on the rights of others.
It says the right to strike does not give anyone the right to intimidate employees, damage public property or compromise the safety and freedom of residents and other workers.
The municipality is appealing for restraint and patience from residents and businesses while engagements with SAMWU continue.
Source: https://www.ecr.co.za/news/news/samwu-msunduzi-strike-labour-agreement/
by Dev_SACCAWU | Labour Market News
Venetia Mine in South Africa
Image Credits: Handout via Reuters
Members of labour union, National Union of Mineworkers (NUM) are calling for the resignation of Venetia diamond mine’s general manager Ntokozo Ngema.
The call was made during a march to the mine’s operations in All Days, outside Musina in Limpopo.
The mine has served over 1 000 workers with notices of retrenchments. A number of off-duty workers were joined by NUM members from various regions across the province in protest against the impending retrenchments.
The mine has cited a dip in diamond prices and competition from synthetic diamond as the reasons for its decision to pause production.
However, NUM regional organizer Emmanuel Mohale believes the mine’s decision is as a result of austerity measures.
“The reason why we are saying that this manager must go. This manager has failed this mine, dismally so. There is R13.6 billion which the mine has lost under his auspices, under his supervision. Since he has came here, there was a lot of retrenchment which has happened, with inclusive of the contractors. You can look on the Murray and Robert, we lost 1 500 under his management. Again, with the employees of the mine, last year we lost 185. And he’s unable to tell us where did this R13.6 billion went to.”
Source: https://www.sabcnews.com/sabcnews/1154212-2/
by Dev_SACCAWU | Labour Market News
This includes back pay to the date the lecturers achieved applicable qualifications for a raise
Five Ingwe TVET College lecturers are to receive salary adjustments and back pay after a three-year battle. File picture: (123RF/marwphoto)
Five lecturers at Ingwe TVET College in the Eastern Cape are to receive salary adjustments and back pay after a three-year battle with the department of higher education.
The South African Democratic Teachers’ Union (Sadtu) said it had secured the notch adjustment after the lecturers were left waiting despite obtaining qualifications that entitled them to higher salaries.
The union said the lecturers were employed at the college at REQV 13 level but obtained the necessary qualifications between 2019 and 2020 to qualify for REQV 14, including the applicable cash bonuses.
In 2024, Sadtu approached the Education Labour Relations Council (ELRC), asking it to determine whether the department had committed an unfair labour practice by failing to adjust the lecturers’ salary notches after they submitted their qualifications between 2019 and 2022.
During arbitration proceedings, the department conceded that the lecturers qualified for the salary adjustment because they had obtained the required qualifications.
The ELRC then ordered the department to adjust the salary notches and pay the money owed to them. The adjustments were to be backdated to the dates the lecturers obtained their qualifications, while one lecturer’s adjustment was to start from the date of employment.
But the matter did not end there.
Sadtu said the department failed to comply with the arbitration award, forcing the union to take the matter to the labour court.
On July 24, the court ordered the department to appear virtually on August 28 to show why it should not be found guilty of contempt for failing to comply with the ELRC award. While waiting for the labour court proceedings, the lecturers received supplementary payslips confirming that their salary notches would be adjusted.
For Sadtu general secretary Mugwena Maluleke, the development was a victory for the union and the educators it represents.
“The defence of educator rights and the advancement of learner rights are inseparable tasks of a teachers’ union,” said Maluleke.
Sadtu remained committed to building a strong union in the TVET sector and challenging policies and management practices it viewed as undemocratic and anti-worker.
The union said it welcomed the resolution and would continue working to ensure its members received the salaries, benefits and working conditions to which they were entitled.
Source: https://www.timeslive.co.za/news/south-africa/2026-08-24-sadtu-secures-salary-adjustments-for-five-ingwe-tvet-college-lecturers/
