Numsa Media Monitor
Monday 18 April 2016
A daily compilation of local, national and international articles dealing with labour related issues
NUMSA
SA Unions
Samwu denies links to new federation
SipheleleDludla, IOL/ANA, 15 April 2016
Johannesburg – The South African Municipal Workers’ Union (Samwu) on Friday rejected reports linking it to a yet-to-be established federation of trade unions, saying such an association would be an “ill-conceived formation”.
The municipal trade union, instead, reaffirmed its affiliation, and pledged allegiance, to the Congress of South African Trade Unions (Cosatu).
Samwu’s general secretary, Simon Mathe, in a statement said Samwu would never be part of an organisation which had been formed out of bitterness and anger.
A new trade union federation led by expelled Cosatu general secretary, ZwelinzimaVavi, would, according to recent reports, be launched in Tembisa, Johannesburg, on Workers Day, May 1. Vavi was kicked out of Cosatu in March 2015.
Samwu was named as one of unions set to join the new federation.
But Mathe rejected the claims saying: “Samwu has congress resolutions which have confirmed, affirmed and reaffirmed our affiliation to Cosatu. Ours is a historical relationship with Cosatu politically and ideologically”.
Mathe said the unions that merged to form Samwu were founding members of Cosatu, and as such “we have a responsibility to ensure the continued survival and growth of Cosatu”.
According to reports, the launch of the new federation would be preceded by a workers’ summit to be held in Boksburg on April 30th, where it was expected that delegates representing 40 unions would come up with the name, colours and constitution of the federation.
Mathe said Samwu distanced itself from this grouping and further urged those behind the new federation to “desist from using Samwu’s name for their own political gains”.
Mathe explained that only “a properly constituted Samwu national congress” had the power to make the decison to leave Cosatu or to join another federation.
He said Samwu and its members were unambiguous on their affiliation to Cosatu, and as such talk to the contrary “was mischievous and should be condemned”.
Mathe said: “We urge our members to fully participate in the upcoming May Day celebrations hosted by Cosatu. To show our support for May Day, Samwu National Office Bearers have been deployed by Cosatu as speakers in various venues for that day”.
Mathe also dismissed as unfounded suggestions that Samwu was in a crisis, saying that union remained intact with properly constituted leadership elected by the 11th National Congress.
Samwu celebrates victory in talks with Pikitup and City of Johannesburg
Neo Goba, Business Day, 14 April 2016
THE South African Municipal Workers’ Union (Samwu) is claiming victory over waste management entity Pikitup and the City of Johannesburg in negotiations over salary disparities.
Although Samwu did not disclose the figures that were agreed on‚ the union’s regional secretary‚ MeisieSekaledi‚ said they were satisfied with the amount.
The five-week Pikitup strike that left Johannesburg streets piled with rubbish, ended after the City‚ Pikitup and Samwu reached an agreement on Saturday night, following negotiations facilitated by the Commission for Conciliation‚ Mediation and Arbitration (CCMA).
Pikitup agreed to make a once-off payment of R750 to certain categories of workers, and negotiations for better salaries continued at the CCMA after the weekend announcement.
On Thursday‚ Ms Sekaledi said: "The CCMA helped us a lot because at the end we had an offer that we could take to the members and they pronounced on it. Now we will be tabling it before the CCMA and conclude (the matter)‚" Ms Sekaledi said.
Insiders said Samwu’s shop stewards were on Thursday communicating the offer to their members at Pikitup depots, to get their feedback.
Ms Sekaledi said the members’ feedback was to be presented to Pikitup on Thursday afternoon at the CCMA. "If our members accept the offer‚ we will sign. If they don’t‚ we will present their demands‚" Ms Sekaledi said.
The unprotected strike involving 4‚000 employees was over wage disparities. Workers that were absorbed by Pikitup after contracts with private contractors were ended in 2011 want their salaries to be between R8‚000 and R10‚000, to put them on par with the other workers that are doing the same jobs and have the same experience.
Discussions to resolve the industrial action facilitated by the CCMA resulted in Pikitup and Samwu agreeing that the eventual salary increments agreed to in negotiations would be backdated to January this year.
The negotiations on salary benchmarking were to be based on the principle of a salary scale‚ a common grading system and salary progression based on tenure and job performance.
Earlier on Thursday‚ Pikitup announced the implementation of a double shift system, as a measure to clear backlogs of refuse removal and illegal dumping caused by the strike.
"The system will comprise a day and night shift. These efforts will be complemented by resources mobilised from all entities of the City and the third-party, contracted service providers, in order to remove the backlog of waste by the end of the month‚" the waste entity said.
However‚ "operations may be slower than usual due to excess waste, which has accumulated for weeks‚" Pikitup said.
Residents and business owners were asked to continue to leave their bins and excess waste outside on their normal collection day‚ "as recovery plans are in place to collect within 48 hours".
Order of Luthuli for Sactwu’sZikhali
Heidi Giokos, IOL/ANA, 15 April 2016
President Jacob Zuma will honour the late president of the SA Clothing and Textile Workers Union, John Zikhali, with the Order of Luthuli in Sliver for his excellent contribution in fighting for justice in South Africa.
Zikhali will be honoured at an awards ceremony on April 28 for his contributions to challenging unjust labour laws through union development and galvanizing workers.
Zikhali served the trade union movement for more than 30 years at all levels, from shop steward to union president.
Sactwu general secretary Andre Kriel told Independent Media he was pleased at the recognition of the late president.
He said it was fitting that not only the rich and powerful were recognised, but also ordinary workers.
“It gives us renewed vigour and determination to fearlessly confront the current challenges which our country and movement face, and to convert it into something which can place us on a more positive future trajectory,” said Kriel.
Zikhali died in a car accident 10 years ago.
Africa’s biggest bottling merger faces challenges from the state and a union
XolaniMbanjwa, City Press, 15 April 2016
The government and a major union could challenge a merger to create Africa’s largest bottling giant.
Economic Development Minister Ebrahim Patel this week got access to more documents related to the three firms involved in the continent’s biggest bottling merger.
This comes after the Competition Tribunal today granted him his request for access despite accusations related to Patel’s interference emerged during a hearing earlier this week.
Patel’s counsel, Jeremy Gauntlett, had argued during this week’s hearing that Patel’s department was not satisfied with the redacted documents handed to him last year regarding several decisions on the merger, which has raised concerns by the Competition Commission about possible consequences the merger may have on smaller beverage firms.
Today, the tribunal also granted the Food and Allied Workers Union (Fawu) permission to a litany of documents related to the merger involving Coca-Cola, SABMiller and the Gutsche Family Investments, but said some documents contained “confidential” information that could not be shared with the parties.
In a statement, the tribunal said: “An order has been issued regarding the request for documents by Minister Ebrahim Patel in the Coca-Cola matter, in which some documents have been granted and some turned down. Details of the [merger are] regarded [as] confidential because it contains sensitive information. Some information requested by the Fawu will also be supplied to the union.”
Fawu and the department expressed concern during the hearing about the effects the merger would have on suppliers, small companies, possible retrenchments, the possible dilution of black ownership in the supply chain and the effect on employment in the sector and on small companies by one dominant player.
The hearing was a precursor to the Competition Commission’s own hearing on the merger to be heard from May 9 to 27. The hearing will address concerns regarding competitors’ products on the merged companies’ coolers, retrenchments and owners of private delivery trucks.
Patel wanted the documents to prepare for next month’s hearing.
Mike van der Nest – senior counsel for Coca-Cola, SABMiller and the Gutsche family investments, who rejected Patel’s request for more documents relating to the merger – accused Patel during the hearing of “hijacking” the Competition Commission’s work and sharing sensitive information with Acacia Economics, which investigated the merger.
The Acacia preliminary report on the merger, which has not been shared with the merging companies despite requests to the commission, was a bone of contention during the hearing.
Van der Nest had intimated that Patel could not be trusted with sensitive information related to the deal and asked why Patel should be furnished with more documents when the department had been given information requested since April last year.
But at the end of this week’s hearing, representatives from the Competition Commission who were in attendance, asked Competition Tribunal chairperson Norman Manoim to disregard suggestions that Patel or the commission had done anything wrong during the review of the merger.
The merger would see the creation of the biggest bottling firm in the Southern hemisphere, Coca-Cola Beverages South Africa, while the second transaction is a branding transaction regarding the transfer of the ownership of Appletiser and Lecol brands from SABMiller to the Coca-Cola Company.
Fawu said it was wanted to satisfy itself that the 250 workers who had been identified for potential retrenchment, were not being thrown under the bus and demanded details of how the workers from four companies were identified for retrenchment.
The union said the merger could put more “job titles” on the block and was concerned that only low-skilled workers were being targeted for retrenchment.
The union also demanded that the new company “harmonise” working conditions and benefits for all workers.
Gauntlett said: “Our experts require the information to do their work on the merger. We want to see employment consequences and that is why we requested details of employees who may be retrenched.”
Patel had demanded details about the new company’s expansion strategy, whether it would potentially lock out small producers in coolers belonging to the Coca-Cola Beverages South Africa around the country and how it planned to maintain the status quo on the supply chain involving private smaller companies.
Govt and ABInbev agree on approach – FAWU
KatishiMasemole, Politicsweb, 14 April 2016
Press statement by FAWU on announced Agreed Approach between ABInbev and RSA Government as represented by EDD relating to the Transaction of SABMiller’s takeover by ABInbev
The Food and Allied Workers Union (FAWU) notes the Understanding, referred to as Agreed Approach, reached between the Republic of South African Government, as represented by the Economic Development Department led by Minister Ebrahim Patel, and the ABInbev Global Executive, with Mr. Carlos Brito as a lead in his capacity as Global Chief Executive Officer (GCEO), on the takeover of SABMiller by ABInbev later today in the afternoon of 14th April 2016.
We summarize the pillars as below an assume some four broadly five areas of agreed approach FAWU wish to react as follows
- Jobs Security and Jobs Retention
- Localization and R1 billion Fund
- Zenzele ESOP Scheme and BBBEE
- Micro-Breweries and Craft Beer-Makers
1. Jobs Security and Jobs Creation
FAWU welcomes the undertaking that the net aggregate from this transaction will not result in job losses but we will insist that, though the merging entities are undertaking not to embark on involuntary job losses, there should not be incentives to and enticement of job losses by a way of “lucrative” voluntary severance packages (VSPs) and this must feature in conditions/remedies.
Otherwise, FAWU will roll out mass action throughout the country and enlist support from the rest of the world in both SABMiller and ABInbev workforces all over the world from fraternal and sister unions affiliated to the International Union of Food Workers (IUF) and outside.
2. Localization and R1 billion Fund
FAWU welcomes the R1 billion Fund meant to improve access to and participation by small-scale, and historically disadvantaged, players in the value-chain of the beer industry; from farmers of ingredients needed in, packagers of, and wholesaling and retailing on those merged entity’s products.
We, however, remain concerns that jobs in the supply-chain may be negatively affected should ABInbev leverage on its global supply-chain and its portfolio brands somewhat when it comes to procurement and other related policies or practices.
3. Zenzele Scheme, ESOP and BBBEE
If there is one thing FAWU will insist on, this will be on the Zenzele/Employee Ownership Project (ESOP) Scheme because there is no way that in 2016 or whenever the rest of the shareholders, including SABMiller’s CEO Alan Clark, will be allowed to smile all the way to the bank, as they cash on the transaction, and the Zenzele unit-holders (SABMiller shareholders) are not doing likewise.
If the acceleration clause, which invokes a closer expiry date than a locked-in period to 2020, will be insisted upon as a remedy or condition to the approval of this transaction as part of treating these shareholders (unit-holders of Zenzele) the same as the other shareholders.
4. Micro-Brewers and Craft Beer-Makers
The plight of Microbreweries and the Craft Beer-Makers and their coexistence with ABInbev as they did with SABMiller remains critical to FAWU and will implore the authorities to take these into account.
There are jobs located in those small-scale outfits and therefore, as FAWU, we will not allow the transaction to be approved without such strong conditions on this area.
On issues of heritage, close to patented status and intellectual property, we think our government should have taken even a more robust policy position and public posture, similarly to the Rooibos issue even if issues are dissimilar or far from being the same, such that we do not allow iconic brands and other considerations of heritage and history are not simply lost in “transactions”.
As a result of the above, we will continue with our submission and participation before the competition authorities and insist on strong conditions placed on/attached to the possible approval of the transaction based on strong public interest concerns given little, yet obtaining, competition concerns.
Therefore, we are concerned of the jobs in the value-chain beyond the merged entity and will wish that the Competition Commission should take those into account as they take lessening of competition as a consideration.
Meanwhile, as we did over three occasions in the last five months, we will engage directors of ABInbev and SABMiller in few days’ time from today and entrench our statutory right to intervene/participate at the Competition Tribunal, and if need be beyond to the level of the Competition Appeal Court.
CCMA On a Drive to Eliminate Violent Strikes
SibongileMaputi, AllAfrica.com, 15 April 2016
The Commission for Conciliation, Arbitration and Mediation (CCMA) told the Portfolio Committee on Labour on Wednesday that it has successfully resolved 18 major strikes in the last year, and that punctual intervention was crucial in ensuring strikes did not become violent.
The Chief Executive Officer of the CCMA, Mr Cameron Morane, told members that this number did not include the recently concluded Pikitup strike in Johannesburg. "The settlement of strikes is extremely important to create fruitful and lifelong partnerships. Our failure impacts on those we serve. The intention is always to ensure that we avoid violent strikes," Mr Morane said.
"If we engage at the right time and assist parties, violent strikes could be eliminated. We have to play our role as a dispute institution to make sure that we intervene. Commissioners within the budget that is there should be able to engage in disputes before they flare up," he said.
The CCMA and the National Economic Development and Labour Council (Nedlac) came to brief Parliament on their budgets and annual performance plans for the current year. Entities and government departments are expected to brief Parliament on the programmes they will undertake with the budget allocated.