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Mail & Guardian
03-08-2025
- Business
- Mail & Guardian
AI must serve labour, not subjugate it, G20 labour group says
Graphic: John McCann/M&G Labour 20, the G20's employment track, has called for the reclassification of workers in the digital economy, where many are labelled as 'independent contractors', which it said enables exploitation and strips workers of core rights. 'Platform workers are being misclassified, denied basic protections and subjected to inhumane working conditions by companies that exploit regulatory gaps. We believe that this is not innovation but is exploitation wrapped in code,' it said in a communiqué. 'We call for international standards to ensure cross-border accountability, worker data sovereignty and fair taxation of platform giants. Technology must serve labour, not subjugate it.' G20 working groups have made similar recommendations ahead of the November summit of heads of state, with the South Africa, which holds the current Workers in the digital economy are effectively outside the law, Cosatu head of policy Lebogang Meelis told the Mail and Guardian. 'People working in the digital economy who are classified as independent contractors are not recognised as workers. As such, they are not covered by labour legislation and this leaves them vulnerable to severe exploitation,' she said. These workers can't join trade unions, have no protection from unfair dismissals and are excluded from unemployment insurance and collective bargaining. 'They are not afforded a process to try and protect them from retrenchment and minimise the negative impact,' Meelis said. Fedusa general secretary Riefdah Ajam described the 'independent contractor' label as 'a deliberate tactic used by capital and employers to strip them of basic rights'. Contractors, she said, 'are required to work full days and answer to supervisors — whether human or algorithmic', yet are denied basics like UIF, paid leave and the right to unionise. 'The platforms that use this model get away with avoiding responsibility and, ultimately, being non-compliant with the labour laws and other rights as provisioned for in the Constitution and other statutes,' Ajam added, warning that if unions don't push back, a rights-based labour system could soon be a thing of the past. Labour 20 called on governments to implement mandatory due diligence and public oversight of all digital labour platforms operating within their borders. The summit rejected 'digital colonialism', declaring that the infrastructure of the digital economy 'must be public, universal and democratic'. 'We further demand algorithmic transparency, where workers have access to the data that governs their performance and livelihoods. No worker should be at the mercy of a faceless system they cannot question,' it said in its communiqué. Fedusa wants tough regulations that force platforms to disclose how they treat workers, what algorithms they use and where their profits go. The union also backs penalties for non-compliance and calls for stronger local ownership of the digital economy. 'We can't outsource our future to companies who see us as a market but never as equal partners. This is about sovereignty, dignity and economic justice,' Ajam said. With more than 60% of workers globally 'trapped in informal and precarious employment', Labour 20 called for 'a comprehensive agenda for formalisation'. Recommendations included labour law reform, strengthened inspections, ratification of International Labour Organisation conventions and inclusive social protection. 'Trade unions must be at the centre of this shift. We affirm that informal workers are workers. Their rights are not negotiable,' said the communiqué. Governments and employers, it said, must end delays and move decisively toward institutionalising decent work. Meelis said Cosatu had secured a win through negotiations at the National Economic Development and Labour Council with the government agreeing to allow atypical workers — including actors and digital platform workers — to join unions and engage in collective bargaining. However, Meelis said the deployment of AI risks deepening inequality. 'In the short term, more women risk losing their jobs than men — particularly because the initial impact of AI will be the replacement of administrative jobs, which are predominantly held by women workers.' 'If we are to address inequality and not exacerbate it, digital transformation must not outpace social integration,' Meelis added. 'If someone works regularly for a platform, follows set conditions and depends on that income, they should be presumed an employee until proven otherwise. That's how fairness can be restored.' South Africa's labour laws haven't caught up with the gig economy, Ajam said. 'We need them amended so that platform workers are clearly included.' She also criticised new terms like 'dependent contractors' as potential loopholes for further abuse. 'Any new category must carry full protections.' Ajam wants the International Labour Organisation to adopt a binding convention on platform work. 'It should cover fair pay, set working hours, access to benefits, transparency around algorithms and the right to organise.' The communiqué also noted that 'workers are facing spiralling inequality, stubborn unemployment, rising authoritarianism, deepening climate devastation and collapsing public services'. 'In the Global South, these crises are compounded by debt, weak state capacity and the brutal legacies of colonial exploitation. Our call is simple and unwavering: the working class will not pay for the failure of a system rigged against them.' Labour 20 said workers' futures should not be 'sacrificed at the altar of profit and geopolitical power', urging a 'reclaiming and rebuilding' of multilateralism and a reversal of the declining labour share of income. 'Workers are not commodities nor statistics. We are the architects of society, and any global recovery that excludes them is a blueprint for deeper inequality,' the communiqué said.
IOL News
24-07-2025
- Business
- IOL News
FEDUSA condemns lenient sentencing of businessman involved in R66 million fraud
A Gauteng businessman has been jailed for an effective five years in connection with R66million Transnet fraud. Image: File The Federation of Unions of South Africa (Fedusa) has welcomed the recent yet lenient sentencing of Gauteng-based businessman, Yakub Ahmed Suleman Bhikhu. Bhikhu was found guilty on 81 counts of fraud, forgery, uttering, money laundering, and the Contravention of the Tax Administration Act in the Pretoria Regional Court. According to the National Prosecuting Authority (NPA) Investigating Directorate Against Corruption (IDAC) spokesperson, Henry Mamothame, Bhikhu pleaded guilty and was sentenced to 10 years' direct imprisonment, of which five years were suspended for five years. IOL reported that the convicted businessman was further ordered to reimburse R300,000 to Transnet, which he received as gratification. In addition, his company was sentenced to a fine of R500,000, which was suspended on the condition that no similar offence is committed. The union, on Wednesday, said despite the light sentence imposed on the businessman, it fully supports and endorses the position taken by its affiliate, the United National Transport Union (Untu). "Like Untu, Fedusa is deeply concerned that the effective five-year sentence, following a conviction in one of South Africa's most egregious State Capture-related scandals, does not reflect the gravity of the crime nor the long-term damage inflicted on workers, the economy, and the integrity of public institutions," said Fedusa. The union added that Bhikhu's conviction for his involvement in facilitating corruption through his company, Homix (Pty) Ltd, at Transnet is a sobering reminder of the vast network of enablers, insiders, and private beneficiaries who exploited the parastatal for personal gain. This is in spite of the union's reservation about the severity of the sentence. "Fedusa believes the sentence handed down fails to deliver justice to the thousands of workers who continue to endure the consequences of this corruption, including job losses, infrastructure collapse, stagnant wages, and declining service delivery. This leniency sends the wrong message. It emboldens those who loot the state to believe they can walk away with light penalties while the public pays the price," the union stated. With South Africans bear the brunt of corruption in the private and public sectors as well as other sections of society, Fedusa believes a stronger sentence would have sent a better message to other corrupt businesspeople. "The sentence undermines confidence in our democratic institutions, particularly the National Prosecuting Authority and the judiciary, whose mandate is to protect the public interest and ensure accountability at all levels of society," it said. According to IOL, Bhikhu was last week jailed for an effective five years in connection with R66 million Transnet fraud, after he and his company, Homix (Pty) Ltd, were convicted on 81 counts that include fraud, forgery, uttering, money laundering, and the Contravention of the Tax Administration Act in the Pretoria Regional Court. [email protected]
The Herald
17-05-2025
- Politics
- The Herald
Fedusa welcomes withdrawal of Seta board chairpersons
The Federation of Unions of South Africa (Fedusa) has welcomed the withdrawal of the Sector Education and Training Authority (Seta) board chairpersons' appointments. Higher education minister Nobuhle Nkabane withdrew the appointments on Thursday with immediate effect. A leaked list of new appointments to Seta boards sparked a public debate after the revelation that Buyambo Mantashe, son of ANC national chairperson Gwede Mantashe, had been named chairperson of the merSETA board. The list identifies him with the notable credential: 'Son of ANC national chairperson Gwede Mantashe'. 'I have taken the decision to withdraw previous appointments in response to public concerns,' Nkabane said on Thursday. Fedusa said its affiliate, the National Tertiary Education Union, had written a letter to Nkabane, expressing grave concern over the process and seeming lack of transparency in the appointment of Seta board chairpersons.
The Citizen
16-05-2025
- Politics
- The Citizen
‘We should be grateful we have a government that listens': Ramaphosa says Seta board appointments a ‘mistake'
The appointment of Seta board members triggered widespread criticism this week. President Cyril Ramaphosa at the Mittah Seperepere Convention Centre in Kimberley, Northern Cape on 16 May 2025. Picture: X / @MYANC President Cyril Ramaphosa has responded to the withdrawal of Sector Education and Training Authority (Seta) board chairperson appointments, following significant public backlash. Earlier this week, a leaked list of new appointments revealed several ANC members were included. Among the most controversial was the appointment of Buyambo Mantashe, the son of Mineral and Petroleum Resources Minister Gwede Mantashe, as chairperson of the Manufacturing, Engineering and Related Services Seta (MERSETA) board. This led to public outcry about nepotism and corruption. Seta board appointments controversy The Democratic Alliance (DA) had written to the chairperson of the Higher Education Portfolio Committee, demanding clarity and accountability on the matter. Tensions escalated during a parliamentary committee meeting on Wednesday, where Economic Freedom Fighters (EFF) MP Sihle Lonzi was forcibly removed after challenging Buyambo Mantashe's appointment. Following the controversy, Higher Education Minister Nobuhle Nkabane announced the withdrawal of all appointments and confirmed that the selection process would be restarted. ALSO READ: Higher education minister withdraws appointment of Seta board chairpersons An independent panel will now be formed to oversee fresh nominations and recommend suitable candidates. According to Nkabane, the revised process will focus on merit, competencies, and relevant experience, while also ensuring balanced representation in terms of race, gender, youth, and persons with disabilities. 🇿🇦Higher Ed Minister Nkabane appoints KZN ANC cadres and Mantashe's son to SETA Boards (see list below). These appointments raise serious concerns about the politicisation of institutions meant to serve all South Africans. SETAs are not ANC cadre deployment havens, nor should… — Karabo Khakhau MP (@KaraboKhakhau) May 13, 2025 Ramaphosa reacts Speaking to the media after attending an ANC event in Kimberley, Northern Cape on Friday, President Ramaphosa described the situation as a 'mistake' that is now being addressed. 'There was a problem, an issue which the minister is trying to correct now and I think it's important to realise that where, for instance, the public sector mistakes are made, immediately we are able to listen to the criticism, the voices of those in the community and immediately take corrective measures. So that's what this is. 'We should also be grateful that we have a government that listens even where it has made mistakes. Mistakes are made and the important thing is to listen and to correct,' the president said. READ MORE: More than half of university students rely on Nsfas Fedusa supports Seta boards withdrawal The Federation of Unions of South Africa (Fedusa) has expressed support for the decision to withdraw the appointments. The union stated that its affiliate, the National Tertiary Education Union (NTEU), had previously raised serious concerns with Minister Nkabane regarding the apparent lack of transparency in the appointment process. 'Fedusa's support for NTEU's position highlights the need for transparency and accountability in these institutions, so that Setas can play their part in developing skills in South Africa,' the organisation said in a statement. 'Ensuring an open and credible appointment process will not only restore public trust but highlights the demand for transparency and accountability, not just in these institutions, but as a fundamental value that South Africa must insist on without fear or favour.' Fedusa further emphasised that transparency and accountability should be foundational principles, rather than being in 'a climate of constant damage control and picking up the pieces of falling confidence'. NOW READ: Frustration mounts as higher education websites remain offline for days
