by Dev_SACCAWU | Labour Market News
Picture: Gallo Images
Stringent labour law amendments that caused tension between the government and labour have been moderated to please workers – with additional provision that employers who make late pension payments to their pension funds would pay interest.
The department of employment and labour is considering public views before finalising the previous agreements so that the legislation can go to parliament.
Previously, organised labour put pressure on the government and business not to compromise the workers’ gains in the Labour Relations Act and other legislation.
Labour law amendments protect workers
In terms of the labour amendment as agreed by social partners, employers would be required to comply with pension fund payments.
The payment process would be overseen by department’s labour inspectors.
Employers who make late payment of workers’ contributions to the pension fund would be required to pay interest.
This was aimed at addressing concerns that some employers, particularly municipalities and private firms in the security industry, failed to pay over the pension contributions to their funds.
Recently, many workers who went to collect their pension money from funds were shocked to learn they had very little money because their employers had failed to pay over the funds.
National Treasury has also intervened and withheld the local governments’ equitable share from defaulting municipalities.
R182bn allocated from national government
Based on the 2026-27 national budget, municipalities are allocated R182.3 billion in direct transfers from national government.
Some municipalities could lose their share if Treasury implemented the decision.
The enforcement would strengthen the Conditions of Employment Act provisions compelling employers to pay their employees’ pension contributions.
Also, a proposal that the national minimum wage should drop from R20 an hour and the exemption of small and medium enterprises (SMMEs) from several labour laws was dropped.
Also, a suggestion that SMMEs should be excluded from having to pay retrenchment packages if they had been operating for less than two years was challenged by labour.
The most significant achievement for employees is the increase of severance pay for workers losing their jobs, from one to two weeks per year of employment.
Cosatu hails revisions
In cases where employers had defaulted to pay monies due to employees, the Unemployment Insurance Fund would be used to plug the gap so that the affected workers were not left without income.
Trade union federation Cosatu claimed credit for the changes.
Cosatu spokesperson Matthew Parks said the proposals “would have fundamentally set workers’ rights back”.
Source: https://www.citizen.co.za/news/labour-secures-pension-and-severance-gains/
by Dev_SACCAWU | Labour Market News
Cosatu, Eskom, Ferrochrome
Cosatu applauds Eskom’s decision to provide a reduced electricity tariff to ferrochrome producers, potentially leading to job creation and preventing retrenchments. The move is part of a five-year plan.
The Congress of South Africa n Trade Unions ( Cosatu ) has expressed strong approval of Eskom ‘s strategic move to offer a reduced electricity tariff of 62 cents per kilowatt-hour to ferrochrome producers, specifically Samancor Chrome and the Glencore-Merafe Chrome Venture. This decision is a crucial component of a comprehensive five-year assistance plan designed to mitigate the escalating electricity costs faced by these companies.
The overarching goal is to protect these businesses from the economic pressures of high energy prices and, critically, to avert the planned workforce reductions that were imminent. The initiative highlights a collaborative effort to stabilize a vital sector of the South African economy and safeguard the livelihoods of thousands of workers. Cosatu’s parliamentary coordinator, Matthew Parks, highlighted the union’s positive response to Eskom’s intervention and emphasized the importance of the next step in this process: securing the necessary approvals from the National Energy Regulator of South Africa (NERSA). Parks indicated that this approval is pivotal, potentially unlocking significant economic benefits, including the reopening of previously suspended smelters. \The anticipated outcome of NERSA’s approval holds considerable promise. Parks estimated that the revival of these smelters could lead to the direct creation of over 11,000 jobs. Furthermore, there is the potential for the generation of over 100,000 indirect jobs. The cascading economic impacts of this decision are substantial, extending beyond the immediate employment landscape to include the stimulation of related industries and the boosting of overall economic activity. Cosatu views this as a progressive intervention that addresses the immediate threat of Section 189 retrenchments, a process that would have resulted in thousands of workers losing their employment. Parks emphasized that the intervention by Eskom is a step that offers tangible relief to the workers at these companies. The action will also support the resuscitation of previously mothballed smelters, thereby reinstating economic activity and potentially reversing some of the negative effects of the economic slowdown. Cosatu specifically applauded the commitment of the concerned parties to seeking solutions and their willingness to facilitate continuous engagement. This cooperative spirit is seen as essential for addressing a long-standing crisis. The union recognizes the importance of the parties’ dedication to finding sustainable and permanent solutions to maintain the sector’s longevity. \This development underscores the complex interplay between government entities, labor unions, and private businesses in navigating economic challenges. The five-year assistance plan represents a strategic approach to stabilizing an industry impacted by volatile energy prices. The collaboration between Eskom, the ferrochrome producers, and Cosatu highlights the value of proactive dialogue and collaborative problem-solving. It demonstrates the ability to identify potential risks to employment and take steps to address them proactively. Parks’ statements clearly articulate the union’s appreciation of Eskom’s initiative and emphasizes the significance of the NERSA approval. The entire process illustrates a shared commitment to creating an economic environment that is both stable and sustainable. The potential for job creation further solidifies this initiative, as it acts to safeguard existing jobs and potentially increase employment opportunities across numerous sectors. The proactive stance taken by the involved parties reflects a broader objective of ensuring the long-term health and growth of South Africa’s economy and the well-being of its workforce. It is important to note the impact of the rising electricity costs to the economy and to the job security of South African citizens. The potential for the reopening of previously mothballed smelters is a win-win situation for both the economy and the citizens.
Source: https://za.headtopics.com/news/cosatu-welcomes-eskom-s-reduced-tariff-hails-potential-job-80379234
by Dev_SACCAWU | Labour Market News
Doors open Saturday, 28 February 2026, at Eastpoint Shopping Centre, Boksburg
- Opening of third Walmart store in Boksburg marks an accelerated store rollout with a further 21 proposed Walmart stores in the pipeline
- Walmart Every Day Low Prices track record in South Africa supported by independently published total basket price comparisons
- Walmart online express delivery extended from 5km to 8km radius of all Walmart stores following positive first-time shopping app user feedback
- Excess of 1.5 tonnes of non-perishable food donation to FoodForward SA to support family food security in Ekurhuleni
Walmart is accelerating its commitment to South Africa with the announcement of its third store opening at East Point Shopping Centre in Boksburg, Ekurhuleni.
Building on the strong momentum from successful launches in Clearwater and Fourways, where customers have enthusiastically embraced Walmart’s Every Day Low Price philosophy, this new location marks the start of an accelerated rollout. With a further 21 stores proposed in Gauteng, KwaZulu-Natal and the Western Cape, Walmart is firmly establishing a broader national presence to deliver affordable, high-quality merchandise to South African consumers.
Every Day Low Prices Customers Can Trust
With Walmart’s Every Day Low Prices, Boksburg customers can confidently shop on their own schedule and trust that they will always get the lowest total cost for the trolley of products they need, at the quality they expect, without having to wait for short-term promotions or worrying about constantly fluctuating prices.
Commenting about Walmart’s Every Day Low Price track record in South Africa, André Steyn, Vice President of Format Acceleration, says, “Since opening our first Walmart store in Clearwater Mall, we have been pleased to see independently published total price comparisons confirming that Walmart has delivered a low-price advantage on a comparable trolley of everyday essentials, including bread, milk, eggs, rice, sunflower oil and sugar.
One Stop in-Store Shopping & Walmart Shopping App Convenience
Customers at the Clearwater and Fourways stores were thrilled with the one-stop convenience of an exceptional product assortment that combines fresh food and groceries alongside a carefully curated range of family and home entertainment items, all available under one roof. Popular customer picks from Walmart Clearwater and Fourways, including affordable roast chicken quarters, delectably marbled sirloin steaks from the butchery, Dr Pepper drinks, Sour Patch Kids and Reese’s chocolate bars will be available in the new store right from day one. Based on customer feedback, we’ve also expanded our product offering with a broader selection of appliances that now includes fridges, vacuum cleaners and water dispensers.
For even greater convenience, shoppers can download the Africa version of the Walmart shopping app to take advantage of the retailer’s 60-minute express delivery service. With 99% of its first-time online customers expressing a firm intention to place repeat orders of fresh food, groceries, adult beverages and small appliances, Walmart has now extended its 60-minute online delivery service from a radius of 5km to 8km from its stores.
Support for Local Community & Small Suppliers
In line with Walmart’s passionate commitment around the globe to local communities, this new store will create 80 jobs and strengthen ties with small local suppliers like Ekurhuleni-based household detergent manufacturer and Walmart Supplier Growth Summit participant, Ultra Chem, who are the supplier of the ECONO brand bleach, dishwashing liquid, pine gel and other cleaning products.
Saving money and supporting communities go hand-in-hand. To celebrate the store opening and make an immediate impact, Walmart will donate over 1.5 tonnes of non-perishable groceries to FoodForward SA to support food security efforts amongst families in the broader Ekurhuleni community within which the store is located. This initiative is consistent with similar efforts associated with the opening of Walmart’s Clearwater and Fourways stores.
Store Opening Details
The Walmart East Point Shopping Centre store will open at 8:00 a.m. on Saturday, 28 February 2026, with a ribbon-cutting ceremony led by Store Manager, Hector Msane, a 22-year retail veteran.
The opening day will feature a range of family-friendly activities and treats for customers to enjoy.
Location: Shop L17, East Point Shopping Centre, Corner Rietfontein and North Rand Road, Jansen Park.
Store Hours: 8:00 a.m. – 8:00 p.m. Monday to Saturday, 9:00 a.m.- 5:00 p.m. Sundays and Public holidays
Hector and his team look forward to welcoming you with the friendly, efficient service that makes Walmart special.
Source: Walmart
Image: Walmart
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Source: https://www.insightdiy.co.uk/news/walmart-announces-opening-date-for-third-south-african-store/16118.htm
by Dev_SACCAWU | Labour Market News
The new proposed rate is much lower than the current charge of R1.36 cents per kilowatt-hour.
The Congress of South African Trade Unions (Cosatu) has welcomed Eskom’s decision to offer a reduced electricity tariff of 62 cents per kilowatt-hour to ferrochrome producers Samancor Chrome and the Glencore-Merafe Chrome Venture.
The new proposed rate is much lower than the current charge of R1.36 cents per kilowatt-hour.
This is part of a five-year assistance plan which aims to shield the companies from rising electricity costs and prevent planned retrenchments.
Cosatu parliamentary coordinator, Matthew Parks, says the union is now awaiting approval from the National Energy Regulator of South Africa.
Parks says the approval could lead to the reopening of suspended smelters, potentially creating over 11-thousand direct jobs and more than one hundred thousand indirect jobs.
“This progressive intervention will not only address the imminent threat of the companies’ Section 189 retrenchments, which would have seen thousands of workers lose their jobs. Once approved by the National Electricity Regulator of South Africa (NERSA) it will provide welcome relief to workers at these companies whilst simultaneously enabling them to reopen previously mothballed smelters. COSATU applauds the commitments by the parties to find solutions and provide space for further engagements on a sustainable, permanent plan for a long festering crisis,” said Parks.
Source: https://www.ewn.co.za/2026/02/28/cosatu-welcomes-eskoms-decision-to-offer-reduced-rates-to-samancor-chrome-and-glencore-merafe-chrome
by Dev_SACCAWU | Labour Market News
Finance Minister Enoch Godongwana is set to deliver the national Budget in the National Assembly on Wednesday, amid mounting pressure to address soaring unemployment and sluggish economic growth.
Labour federations, the Congress of South African Trade Unions (COSATU) and the South African Federation of Trade Unions (SAFTU), have called for a budget that prioritises job creation and economic recovery.
COSATU spokesperson Matthew Parks stressed the need for urgent intervention.
“The budget must respond decisively to the hardships faced by the working class. It must provide hope to society and be anchored in tackling our dangerously high unemployment rate of 41.1%, weak economic growth of 1.4%, entrenched poverty and inequality, as well as endemic crime and corruption,” Parks said.
SAFTU described the 2026 Budget as being tabled at a time of profound economic and social crisis, urging the government to reject further austerity measures.
Federation spokesperson Asive Dyani warned that continued fiscal contraction would worsen instability and undermine long-term growth.
“The fiscal crisis cannot be separated from mass unemployment and deindustrialisation. South Africa continues to experience factory closures, retrenchments, and declining productive capacity across manufacturing, steel, mining value chains, agro-processing, and chemicals,” Dyani said.
Source: https://vocfm.co.za/pressure-mounts-on-finance-minister-ahead-of-budget-speech/
by Dev_SACCAWU | Labour Market News
South Africa Latest News,South Africa Headlines
The medical aid tax rebate and fuel levy hikes are set to dominate scrutiny of South Africa’s latest national budget.
The medical aid tax rebate and fuel levy hikes are set to dominate scrutiny of South Africa’s latest national budget.With last year’s value-added tax debacle still fresh in everybody’s mind, today’s budget tabled by Minister of Finance Enoch Godongwana is set to be a “feel better” budget that will promote the GNU effectiveness, an expert says.
It will be an election budget designed not to upset too many people, but to promote the effectiveness of the government of national unity, Daniel Silke, a political economy analyst, said.“It will also be to show voters that the country is showing signs of stability and indeed recovery in the economy. “Maybe there will be some concessions when it comes to living costs, given there will be some improvements in revenue coming through in the budget,” he added. The country, in addition to the sin tax, must expect another hike in the fuel levy, which the analyst describes as the “cash cow” for the government and an easy target every budget to raise costs.Various stakeholders will scrutinise today’s budget closely to see if it meets their expectations amid the promising economic performance.While they are all on the same wavelength on tangible economic growth, a call by trade unions and civil society to tax the rich persists.The tax on medical aid rebate and wealth featured prominently in the civil society debate. One of organisations, Alternative Information & Development Centre , want the medical aid tax concession cancelled to create more jobs for the jobless. It cited the plight of unemployed graduates, shortage of teachers, health workers and police officers. The proposal to halt the tax reduction for medical aid members and the rumours that Godongwana or the SA Revenue Service is contemplating implementing the idea in future, open another avenue of concern for both medical aid members and the sector, alongside the fear of National Health Insurance’s impact on private care profits. The tax credit is a fixed monthly rebate, not a percentage of contributions, adjusted annually by Sars. For the 2026 tax year, it is R364 for the main member, R364 for the first dependant, and R246 for each additional dependent per month.there are many tax benefits that disproportionately benefit the elite in South Africa and the medical aid tax credit is just one of these benefits. “We do not anticipate Sars or National Treasury removing the medical aid tax credit in the upcoming budget. Historically, this government prioritises the interests of the elite over two-thirds of South Africans living in poverty,” Chikte said. The medical aid tax credit costs the fiscus R30 billion per year, with 40% of this amount going to those earning above R500 000 per year. “At the same time, the Social Relief of Distress grant is unable to reach half of the qualifying applicants earning less than R624 per month.“In the world’s most unequal country, there must be increased pressure on treasury to enhance and maximise the progressivity of the tax system,” Chikte said.AIDC suggested implementing tax credits instead of tax deductions, which apply to high-income-earning retirees. It argued the current structure of the retirement contribution tax deduction benefits higher-income taxpayers disproportionately and “therefore contributes to exacerbating inequality”.“AIDC highlighted the difference between the two, noting that while tax deductions are applied against taxable income, tax credits are applied against the taxpayer’s tax liability,” it said. Silke expects the budget would tout improved stability in the economy, for which the GNU parties would like to take credit. Other contributory factors were a tax windfall from mining, the rands improvement, the slightly lower interest rates and South Africa’s removal from the greylist. On the medical tax rebate, the analyst doubted if the halting of medical aid tax reduction would automatically translate into mass job creation. Medical aid tax versus employment creation could not be the subject of an on-off political gamble as job creation required a host of right policy choices and confidence-building measures. Add The Citizen as a Preferred Source on Google and follow us on Google News to see more of our trusted reporting in Google News and Top Stories.
Source: https://za.headtopics.com/news/feel-better-budget-what-to-expect-from-godongwana-s-80227810
