MAIN STORY
At least 45000 jobs already under fire this year - Solidarity
By Inge Strydom
Tens of thousands of jobs at hundreds of companies are currently affected by retrenchment processes and employee confidence is at a three-year low. That is according to trade union Solidarity’s concise report on the current retrenchment crisis released at a media conference in Pretoria this week.
According to this report compiled by the Solidarity Research Institute, it is evident from media reports alone that 45000 jobs in 58 companies have been affected by staff reduction processes this year. A further 160 other companies where Solidarity members are employed, are undergoing similar processes.
Currently, employees in the mining sector are hardest hit by the retrenchments, followed by employees in the telecommunications and metal industries. Click here to read the executive summary; click here to read the concise report (PDF) in full.
However, Johan Kruger, Solidarity’s Deputy Head, believes that the crisis is stretching far beyond extensive reductions in a few large companies such as Telkom and Lonmin. “As a trade union, we daily receive enquiries from members at smaller companies that are embarking upon retrenchments on a less extensive scale. In June and July 2015, Solidarity had to deal with about 80% more retrenchment-related enquiries from members compared to the same period last year. When taking all these factors into account, one realises the true extent of the crisis,” Kruger explained.
At the conference, Solidarity also presented an extensive emergency plan to deal with the retrenchment crisis. This plan involves several aid projects launched by the trade union in collaboration with Solidarity Helping Hand, among others, in order to limit the impact of the retrenchments on Solidarity members.
- Legal advice
Section 189 and 189A of the Labour Relations Act provide that employers must consult extensively with trade unions when staff reductions are contemplated. By rights, the process should begin with a formal section 189 notice. The final number of employees to be retrenched, when their employment will be terminated, and what alternatives to retrenchment may be considered, should be determined during this consultation process. Solidarity has instructed its legal team to ensure that all retrenchment processes affecting its members must comply with these legal requirements.
- Financial advice
Solidarity is concerned that employers in general are not doing enough to provide the employees with full information on the financial impact that their plans would have on individuals. Therefore, Solidarity instructed financial advisors to compile information brochures that outline the advantages, disadvantages and impact of the options presented by employers to their employees during retrenchment processes. Solidarity already provides telephonic financial advice to many of its members affected by retrenchments, and a further increase in these enquiries is expected in the coming weeks.
- Counselling
Research has shown that most people affected by retrenchment processes often experience emotions comparable to those experienced by people after the death of a loved one. The initial stage is usually denial, followed by anger and frustration, and ultimately acceptance. If these emotions are not managed, they may have a devastating effect on employees and their families. Therefore, in collaboration with various churches, Solidarity Helping Hand appointed councellors to assist employees affected by retrenchments.
- Assistance to job seekers
Solidarity believes that retrenched employees should be readmitted into the labour market as soon as possible as retrenchment packages only provide a temporary solution. Therefore, Helping Hand provides a free Afrikaans platform called WerkNet where jobseekers may upload their CVs free of charge and get in touch with potential employers. Here individuals can also get free advice on drafting a professional CV, and they will also be assisted by a professional recruitment agency. Click here to register.
STORY 1
Labour Court grants leave for appeal in SAPS case – Solidarity
By Francois Redelinghuys
The Labour Court has granted a recent application for leave to appeal by the Solidarity trade union. This follows after this court found in favour of the South African Police Service (SAPS) concerning the application of affirmative action during appointments and promotions on 2 April 2015.
The case deals with the lawfulness of the collective agreement (2/2011) entered into by the SAPS and recognised trade unions in 2011, with the re-introduction of the old military rank system, which resulted in two new ranks. In terms of the agreement, posts would be allocated to the most senior persons within their specific race, and the posts would be divided among the specific groups according to the national racial demography.
“The practice of allocating the available posts in accordance with the national racial demography is unconstitutional and discriminatory against all. More than three quarters of the members who are entitled to promotion on the grounds of their years of service did not qualify purely because of their race. These practices have to brought before the court, otherwise they will simply continue,” said Dirk Groenewald, head of Solidarity’s Fair Labour Practices Centre.
Solidarity has obtained a court order to stop 1 634 appointments where the appointment was made purely on the grounds of race, and the outcome of this court case will bring finality to the appointments.
“We realise that there are a number of SAPS members waiting for promotion, but this case is one that we trust will bring legal certainty on the principle of quotas. Many SAPS members have an interest in this case and our aim is to act in the best interests of all these members,” Groenewald explained.
Solidarity has confirmed that it was going to request the Labour Appeal Court to grant a possible preferential court date because of the fact that some staff members who may be entitled to promotion are going to retire soon and may consequently miss out on this promotion opportunity.
Further information on the case may be obtained here. Click here.
STORY 2
ANC is co-responsible for economic crisis – Solidarity
By Inge Strydom
Trade union Solidarity this week said that the ANC is also responsible for the deterioration in the local economy. This follows after Economic Development Minister Ebrahim Patel, in response to a parliamentary question, yesterday tried to deny the ANC’s role in South Africa’s struggling economy.
Although the global economic crises cannot be laid at the door of the ANC, the ANC’s overregulation of the economy, especially in terms of transformation and Black Economic Empowerment (BEE), is aggravating and prolonging the weakened economic situation in the country.
“In recent years, all these factors have led to dramatically reduced investor confidence in South Africa. In addition, the ANC’s excessive focus on black ownership discourages entrepreneurs to establish businesses in South Africa. Job creation therefore suffers while BEE advantaged entrepreneurs and businessmen, due to their political status, are under less pressure to focus on the interests of consumers and the economy,” Hermann said.
Hermann added that the economic impact of systemic corruption, of which the Nkandla debacle has become a symbol, should not be underestimated. “Due to the systemic corruption weighing down the state, government is placing the sustainability of South Africa and the welfare of its citizens at risk. It is increasingly becoming clear that civil pressure groups are becoming crucial as watchdogs to ensure that government is held accountable at all levels,” Hermann said.
STORY 3
Proposed fisherman quotas amount to unfair discrimination – Solidarity
By Inge Strydom
The trade union Solidarity this week said the draft policy concerning the application of the national racial demography to fishermen amounts to unfair discrimination. In terms of the draft policy, which was published in the Government Gazette recently, commercial fisherman licences will in future be awarded on the basis of the national racial demography, therefore 79,6% black, 9% Coloured, 8,9% white and 2,5% Asian.
According to Solidarity, the draft policy will constitute a practice similar to that of the Department of Correctional Services (DCS)’s absolute application of the national racial demography in its affirmative action plan. The Labour Appeal Court, however, ruled in April this year that the DCS may not apply the national racial demography.
Dirk Groenewald, head of Solidarity’s Centre for Fair Labour Practices, explained that the said draft policy was yet another proof that the state wanted to enforce its ideology of absolute racial representation on society at all costs. “Policies such as this denies the public their right to follow occupations of their own choice. In addition, this policy will have catastrophic effects on the brown fishermen community since they have been following this occupation in a majority for historical reasons,” Groenewald said.
Groenewald believes that the concept policy is nothing less than a quota system, which is prohibited in terms of the Employment Equity Act. This Act further provides that a nuanced approach should be followed when stating numerical objectives. “The courts have already confirmed that the banning of quotas is also applicable outside the workplace. Solidarity has been fighting a battle against government’s interpretation of the said legislation for years. We will continue fighting this issue in the highest courts and we will also approach the United Nations in this regard in September this year,” Groenewald said.
STORY 4
Chamber of Mines negotiating in bad faith - Solidarity
The Chamber of Mines today in reaction to Solidarity’s acceptance of the final wage offer in this year’s wage negotiations in the gold sector, declared a dispute against Solidarity and withdrew its offer.
According to Solidarity General Secretary Gideon du Plessis, the Chamber of Mines has lost its moral compass and this unilateral action demonstrates that it has negotiated in bad faith. “Solidarity is trying to act responsibly and in the interest of the gold industry but the Chamber of Mines is irresponsible in its actions and thwarts efforts intended to ensure sustainability,” Du Plessis explained.
“Solidarity will seek legal advice on the bad faith actions of the Chamber; however, the trade union is extremely disappointed in the Chamber, as it has now confirmed that it is indeed not a reliable role player,” Du Plessis said.
STORY 5
Hints for avoiding pitfalls with retrenchment packages
By Francois Smit
Retrenchments are a sad reality of today’s economic and labour landscape. But what’s even worse is making unwise decisions regarding a retrenchment package. Here are a few hints in avoiding these:
1. Separate emotions from figures
At its best, retrenchment is a highly traumatic experience. Because of the uncertainty of the future, people tend to grasp at straws if they did not do the necessary homework. Make absolutely sure your decisions are guided by figures and not by the emotions of what you think could possibly happen.
2. Budget and cash flow planning is top priority
A household’s finances, as with a business, depend on sound cash flow in the long run. What many people may see as assets, could quickly turn into a burden on cash flow if the assets are still encumbered with debt and do not yield passive income. Your house is a case in point. Cash flow is now important for your frame of mind and to see the light in the tunnel. It is extremely important to draw up a budget. You have to know exactly where you can save and where the little foxes are hiding in your budget. This is the only starting point for doing cash flow planning.
3. Taxation and inflation are a reality
Never simply assume that things are looking fine now without looking into the future. Inflation does not have an immediate effect, but if it is factored into your planning, future surprises will disappear. You are going to be confronted by taxation, whether on a severance package or on your pension benefits. Be sure to get expert advice.
4. Don’t get caught by glamour boys – There is a reason why information on bank and share market returns is available
Think of it as a fruit tree. While the tree is there and is looked after, it may yield a return, weaker in some years than in others. The danger is that fruit may be dollied up artificially with the right feeding while in actual fact the tree is dying, and if the tree is there no more, there will be no fruit, ever again. Do not allow yourself to be deluded by the fruit – you may end up without the tree.
If someone is trying to impress you with returns way beyond current bank interest rates and historic share market returns, beware!
5. Get more than one opinion
It is very important to feel comfortable with the people dealing with your money. If you want to make sure, get another opinion, even though you have to pay for it. Spending R500 to make sure your nest egg is safe, is the best decision you can take at this stage.
Solidarity Financial Services may be contacted on 012 644 4360 or .
STORY 6
Code of good practice on collective bargaining and industrial action - Nedlac
All aspects of strike action could soon be regulated by a code of good practice on collective bargaining and industrial action.
According to Business Report a National Economic, Development and Labour Council (Nedlac) committee, comprising representatives of government, business, labour and civil society, which is looking into the subject and also into wage inequality, met in Rosebank, Johannesburg, last week where they agreed on the code.
“This code will cover all phases of industrial disputes including pre-negotiation, negotiation, post-negotiation, dispute, strike and lockout and post-strike and lockout,” said Nedlac’s Kim Jurgensen in a statement.
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HELPENDE HAND
Standing together for the 45 000 affected by retrenchments
The lives of thousands of people have been plunged into a crisis following retrenchments across the country during the past couple of weeks. Solidarity Helping Hand is ready with an action plan that will entail much more than merely providing much-needed food parcels.
“According to a report by Solidarity Research Institute (SNI) Solidarity is aware of retrenchments at approximately 220 employers in 2015, where at least 45 000 workers are affected. This figure only includes figures that SNI is aware of. The SNI report include companies such as Telkom, Lonmin and ArcellorMittall, where almost 15 000 workers have been affected. The biggest danger, however, is in the mining sector and the possible impact retrenchments in this sector will have on workers.
Helping Hand’s focus will be on the effect of retrenchments on the lives of vulnerable people – mainly children and elderly persons. Helping Hand is going to offer study aid to the children of retrenched Solidarity members who are currently engaged in tertiary studies or who want to begin studying in 2016. This funding will come from the Disaster Area Study Fund which was established following the Rustenburg strikes in 2014.
“We want to prevent at all costs young people’s future from being affected negatively because of their parents being retrenched. Therefore we want to ensure that these young people’s dreams are not ruined and we want to assist with study aid where we can,” said Danie Brink, Chief Executive Officer of Helping Hand.
In addition, Helping Hand intends expanding its assistance to defenceless elderly persons, and its Tuisgenoot project is going to be extended to affected areas. Through this project, elderly persons will receive food and other essential items. Since getting a job is essential for a sustainable solution, Helping Hand will strongly emphasise work placement through the job seeker portal WerkNet. Members of Solidarity may upload their CVs at . Alleviating people’s temporary distress will take the form of handing out free food parcels, baby nappies, formula milk and products for women.
In difficult times, our people stand together. Get involved NOW by donating money, products or your time. SMS “staan saam” to 38969 and donate R10 for the retrenchment crisis or visit to see where you may render assistance.
Full information on Helping Hand’s Action Plan please download it here.
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BEDDRYFSBROKKIES
Over 6 000 new recruits for SAPS
BusinessTech reports that the SA Police Service (SAPS) has embarked on a recruitment drive that aims to attract an additional 6 252 members to its ranks during this 2015/16 financial year.
National Police Commissioner, General Riah Phiyega, who approved the campaign last month, expressed the hope that thousands of people would apply for these posts. She emphasised that stringent measures would be implemented to ensure that people with criminal records, pending cases and those who did not meet the criteria would not find a way into the SAPS.