Latest news with #LabourRelationsAct
IOL News
4 days ago
- Business
- IOL News
Numsa to present alternatives to Macsteel's retrenchment plan amid ongoing negotiations
This plea follows Macsteel's announcement last month that it has taken the difficult decision to enter into a process of restructuring, which may affect a number of its operations and employees. Image: Supplied The National Union of Metalworkers of South Africa (Numsa) is set to deliver a formal proposal on Monday that includes a series of alternatives to retrenchments at Macsteel Service Centres South Africa. This initiative aims to establish a voluntary severance framework that respects the dignity of workers while considering the current socio-economic challenges they face. On Saturday, Numsa called on management at Macsteel to abandon its unilateral measures and return to the negotiation table in good faith. This plea follows Macsteel's announcement last month that it has taken the difficult decision to enter into a process of restructuring, which may affect a number of its operations and employees. The company said the global steel and manufacturing sectors have undergone significant changes over the past few years, and neither South Africa nor it have been immune to these challenges. 'Over the past years, the company has implemented a number of measures to address the concerns arising from this global context. However, it is now felt that further action is unavoidable,' Mcsteel said then. 'To this end, we have entered into a process of facilitation, working in collaboration with all concerned parties, including our workforce, union representatives and external stakeholders. Our objective is to be realistic—seeking a way forward that protects both our employees and the future of the company, within the constraints of the current economic climate.' Mcsteel said this process would be conducted as transparently as possible, in full compliance with both the letter and the spirit of the applicable legislation. However, Numsa on Saturday strongly condemned Macsteel for allegedly taking a unilateral decision to offer Voluntary Severance Packages (VSP) to employees outside of the formal consultation process, as prescribed in section 189A of the Labour Relations Act (LRA). Numsa general secretary, Irvin Jim, said this action constituted a direct affront to the consultative principles enshrined in the LRA and undermined the integrity of the facilitated retrenchment process currently underway. 'It is unacceptable that Macsteel has elected to bypass meaningful engagement with Numsa by offering these so-called "packages" without responding to critical questions posed by the union, as these questions are essential to the union's ability to propose viable alternatives to retrenchment,' Jim said. 'Numsa regards this approach as a deliberate attempt to exploit the financial vulnerability and uncertainty of workers facing possible retrenchment. The employer's conduct displays a disregard for the dignity and contributions of its workforce, many of whom have served the company loyally for years. The packages offered are woefully inadequate and do not reflect the socio-economic realities faced by workers or the principles of fairness and equity that should guide any severance process.' Numsa urged all its members employed at Macsteel not to accept these premature and unnegotiated offers, adding that it was actively engaging in the consultation process and is committed to tabling credible alternatives, including a fair and decent VSP framework. The union encouraged workers to await the outcome of these engagements, which are being undertaken in their collective interest. It said the package, which was being offered, was neither the product of collective consultation nor reflective of a genuine effort to cushion workers against the devastating consequences of retrenchment. 'To present such an offer, outside the consultative framework, constitutes bad faith bargaining and renders the process procedurally and substantively flawed,' said the union. Numsa further cautioned all workers to rely solely on communication from their elected union representatives and shop stewards who are actively engaged in the Section 189A consultation process. It said Macsteel's actions reflect a broader pattern of worker exploitation and corporate disregard for labour rights. 'At a time when meaningful consultation is required, the company has instead chosen to act unilaterally and with contempt for its employees' legal rights and livelihoods,' it said. 'Numsa remains resolute in its defence of workers' rights and will not relent in the face of such regressive and exploitative conduct.' BUSINESS REPORT
Daily Maverick
4 days ago
- Business
- Daily Maverick
SA practising damaging politics of the zero-sum game
While there are many prisms through which you can attempt to understand our politics, one may be to examine whether people see the entire process as a zero-sum game. There may now be mounting evidence that more politicians and voters believe every single issue must be reduced to winners and losers. Anyone with much experience of life will be aware that, as a general rule, when life improves for one person, it often improves for another. This happens in an economy all the time. It is well known that one restaurant in one city block might be popular enough to bring in a certain number of customers. But a group of competing restaurants in the same place are much more likely to bring in a much bigger number. In other words, you are more likely to be successful through sharing space with other restaurants. Growing an economy might well rest on this. One cannot just make a product and sell it on your own. You need to be part of a chain that enables your market and ensures you have both suppliers to help you make your product, and customers to buy it. People who are thinking over the longer term will often make decisions that will cost them in the short run, because they expect to gain in the longer run. Last week, Moneyweb reported that some suppliers to Pick n Pay were actually giving it goods at lower than usual prices. While this costs them in the short run, they don't want a situation where Checkers becomes so dominant they only have one person to sell to. This means that they are helping someone to regain market share. In the case of South Africa, with its incredibly diverse constituencies, and defined by its inequality, the idea of people helping one another might well be more important than in many other places. Winners and losers The nature of our economy requires everyone to be working in the same direction. Instead, what we have is people simply fighting really hard not to be the losers, and others not the winners. Currently, 50 proposals to change the Labour Relations Act are going through Nedlac. While labour analyst Andrew Levy says it's not clear if they really change the balance between workers and managers, several groups and unions have already held a protest against the proposals. They believe that their members might soon lose out, and managers might win. This kind of situation happens all the time in our society. In our politics, the coalition sometimes appears to be reduced to fights between the ANC and the DA that are literally about ensuring one wins and the other loses. Because this is all happening in public, and they are representing constituencies, it can give the impression that those constituencies are really fighting to ensure they are not seen to lose. This transactional approach, and the damage it can cause, is wonderfully, and horrifically, illustrated by the Trump administration's approach to trade. One of the most important dynamics of the past 30 years has been the rise of China as a manufacturer of trade goods. It has made these goods at a cheaper price than many other places, and sold them. This has exported deflation around the world – the price of a cheap bicycle has declined dramatically in real terms since the 1980s. This is largely because companies in different countries have traded with each other. And both parties have become very rich doing so. Trump appears to believe that if one country is getting rich, the other must be losing out. The overwhelming evidence is that this is not the case. Instead, both parties win through these transactions. In some ways, such is the impact of the US, that this example might well be having an impact on our politics. At the same time, another important aspect of how life really works is being lost. In many cases, there is no clear 'winner' and clear 'loser'. Often it is entirely grey, with very little difference in shade. The NHI stand-off In our politics now, it seems that everything must become a life and death situation, that there will be armageddon if someone does not get what they want. Given our inequality, this can sometimes appear as if it is a life-and-death struggle between classes. The NHI might be a useful example: those who support it say the rich are trying to condemn the poor to death, those who oppose it say the rich will lose everything they have. Instead, this is something that should really be negotiated between representatives of constituencies. And there should be a solution that everyone can live with. There are many reasons why we are in this situation. Our racialised inequality must be an important reason. Those who are poor have everything to gain and nothing to lose, while those who are rich have everything to lose and nothing to gain. But this may also be the result of deliberate political strategy. Just as politicians have created abortion as a political issue in the US, by forcing people to take a position, so our leaders often do the same. Both the ANC and the DA benefit from continuing the fight around the NHI. They both get to demonstrate to their constituencies that they are fighting for them. And because the struggle for voters is now so difficult and so intense, the stakes rise each time, and so it is more likely that politicians will behave in this way. All of this feeds an artificial intensity in our politics.
IOL News
7 days ago
- Lifestyle
- IOL News
It's time to rethink retirement in South Africa
Some individuals choose to continue working, many of then out of necessity, says the writer. Image: RDNE Stock project/ WHEN should we stop working? It is a question that many South Africans encounter at some point, yet the answer is increasingly complex and deeply personal. Let us first clarify what the law states regarding retirement age in South Africa. There is no universal retirement age mandated by South African law. In the private sector, the retirement age is determined by employment contracts, company policies, or pension fund rules. If these terms are not specified, section 187(2)(b) of the Labour Relations Act stipulates that it is only legally fair to dismiss an employee on the grounds of age if they have reached the "normal or agreed retirement age" for their specific role. In the public sector, the governing legislation is the Public Service Act of 1994, which establishes the normal retirement age at 60. It also permits early retirement starting at age 55. These provisions have remained unchanged. Traditionally, retirement has been linked to a specific age, often 60 or 65, when individuals typically leave formal employment. This model may have been more appropriate for previous generations when life expectancy was shorter, pension systems were more generous, and extended family support networks were stronger. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ However, times have changed. Many South Africans now struggle to afford retirement at this age due to various modern challenges, including social, economic, and personal circumstances. The question should not be 'How old is too old to work?' Instead, we should ask: Is the individual still capable, passionate, and productive? If the answer is yes, there is little reason to arbitrarily limit their ability to earn, contribute, and find meaning through work. Recently, the Standard Bank Group announced a change to its executive retirement age, increasing the normal retirement age for executives from 60 to 63 years. This adjustment is part of the group's ongoing commitment to attracting, retaining, and nurturing top-tier talent. There is a clear trend in the corporate environment towards extending the productive working life, as people are remaining healthy, energetic, and engaged for much longer. While some individuals may choose to continue working, many do so out of necessity. In South Africa, the prospect of a comfortable retirement is discouraging. Many citizens are not financially prepared to retire. Recent research indicates that fewer than 10% of South Africans can retire comfortably. For everyone else, state pensions - though essential - are often insufficient to cover basic needs, let alone unexpected medical expenses or the rising cost of living. The reasons for this situation are diverse. Low earnings, limited access to employer-sponsored pension funds, inconsistent employment histories, and a lack of financial literacy have left a generation vulnerable. Even those who save diligently have watched their savings diminish due to inflation and economic instability. Consequently, many older South Africans continue to work simply because they have no alternative. So, what can be done? It is crucial to understand that starting retirement planning early can lead to better outcomes. Even small amounts saved consistently over time can grow significantly. Encouraging young individuals to start saving and investing for retirement as soon as they begin working helps them appreciate the importance of managing their finances effectively. However, not everyone has the chance to start saving early. For those nearing retirement with limited savings, taking practical steps such as careful budgeting, eliminating unnecessary expenses, and seeking guidance from accredited financial advisors can help them effectively manage and extend their available resources. Employers play a crucial role in supporting their employees' financial well-being throughout their careers. They should offer retirement planning workshops, encourage contributions to pension plans and annuities, and provide flexible options for older workers who wish to reduce their hours rather than retire completely. A phased retirement model can facilitate knowledge transfer while easing the transition from full-time work. We need to challenge the stigma around working later in life. Many retirees seeking to re-enter the workforce - whether for financial reasons or personal fulfilment - often get overlooked. Yet, they bring valuable experience and maturity, essential for mentorship and leadership roles. Retirement should be viewed as a transition into a new phase, such as consulting or community involvement. It should remain a choice rather than a result of economic necessity or age discrimination. Retirement is no longer a single event; it is a gradual process and a journey that requires careful planning, support, and respect. If society can move beyond rigid assumptions and start viewing retirement through the lenses of capability and dignity, we can create a system that genuinely works for all South Africans. Jennifer Reddy Image: File Jennifer Reddy is the CEO of Morar Incorporated. THE POST
IOL News
22-07-2025
- Business
- IOL News
FlySafair denies avoiding CCMA mediation as pilots strike over pay
FlySafair on Tuesday said it was operating a reduced schedule,with only two flights cancelled: the 16:45 service from Cape Town to Lanseria and the 19:30 return flight from Lanseria to Cape Town. Image: Itumeleng English/Independent Newspapers FlySafair has refuted claims suggesting that it has refused to engage with the Commission for Conciliation, Mediation and Arbitration (CCMA), asserting that it has actively participated in all required discussions throughout the process. This comes as FlySafair experienced operational disruptions on Monday as it was forced to cancel 26 flights following the lockout of around 200 pilots who have embarked on industrial action. The pilots are demanding a 10.5% baseline increase alongside adjustments to flight pay and bonuses for the next financial year, and then 4.5% and 4% respectively for the two years thereafter. They rejected the proposed 5.7% salary increase by FlySafair. Trade union Solidarity had accused FlySafair of refusing to accept the Commission for Conciliation, Mediation and Arbitration (CCMA) to mediate the dispute in terms of section 150 of the Labour Relations Act but resolving to lock out its pilots for seven days. However, the CCMA was roped in to mediate the dispute on Monday after FlySafair cancelled 13% of its scheduled flights. FlySafair on Tuesday said it remained committed to resolving this matter constructively and will be meeting with the CCMA on Wednesday. The airline said claims that it had refused to participate in the CCMA process were factually incorrect, adding that it has actively engaged with the CCMA throughout the process, as required by law to obtain a protected strike certificate, and continues to participate in CCMA-facilitated discussions in good faith. In a bid to reassure travellers amid ongoing industrial action involving a segment of its pilot workforce, FlySafair announced that all flights scheduled for Tuesday were departing as planned. The airline said it was operating a reduced schedule which was proactively implemented last week, with all customers affected by time changes notified via SMS and email using the contact details provided at the time of booking, well in advance of their departures. It said only two flights were cancelled: the 16:45 service from Cape Town to Lanseria and the 19:30 return flight from Lanseria to Cape Town. According to FlySafair, these passengers have been directly communicated with, and their preferences respected regarding rebooking and refunds. Kirby Gordon, chief marketing officer at FlySafair, expressed empathy for affected customers. 'We know that travel disruptions can be incredibly stressful, especially when plans are made well in advance,' Gordon said. 'We're truly sorry for the inconvenience this has caused and want to reassure our customers that we are doing everything in our power to restore full operations as quickly as possible. Our teams are working around the clock to support affected customers, and we remain fully committed to finding a fair and sustainable resolution.' Meanwhile, Solidarity on Tuesday said the improvement in their quality of life was the main issue for pilots when the mediation process begins on Wednesday. Solidarity said while the pilots were also seeking a reasonable salary increase – including to restore their compensation to pre-COVID-19 levels – improved working conditions were particularly important. However, it is the shift in working conditions that has taken centre stage, particularly following the unilateral implementation of a new rostering system by FlySafair. Solidarity said this change has disrupted established protocols that have governed the pilots' schedules for the past decade, causing a ripple effect on their work-life balance. The pilots have expressed concerns that the new scheduling system limits adequate rest periods. "This new schedule impedes adequate rest periods and undermines pilots' family life. As pilots' workdays often start before sunrise and last until late at night, sufficient rest is of utmost importance for the safety and wellbeing of pilots and passengers alike," the union said in a statement. "In addition, pilots work seven days a week on a rotating schedule, which significantly impacts their family life compared to those who work standard office hours. In the upcoming meeting under the auspices of the CCMA, it is therefore essential for FlySafair to demonstrate a willingness to ensure more flexibility in the scheduling system." Solidarity has encouraged FlySafair to show a commitment to flexible scheduling. Proposed solutions from the pilots include a guarantee of at least one weekend off within each five-week cycle to allow proper rest and family time, the ability to exchange shifts among colleagues to accommodate personal and family responsibilities, and compensation for any flights undertaken on their days off in subsequent schedule cycles. BUSINESS REPORT
IOL News
22-07-2025
- Business
- IOL News
Why FlySafair pilots are striking: It's more than just money
Long queues formed at the FlySafair counters on Monday morning as the airline grappled with a labour impasse that grounded some flights. Image: Jonisayi Maromo/IOL As hundreds bemoan the FlySafair strike, Solidarity has released a statement expressing the real reason why pilots have downed their tools - and it's not just about the money. While pilots overseas can earn up to R3 million plus housing and extras, earlier reports indicate that FlySafair pilots requested a raise. FlySafair responded stating that their Captains earn between R1.8 and R2.3 million annually, which, according to them, places the pilots within the top 1% of earners in South Africa. With regards to workload woes, FlySafair noted that its Captains spent an average of 63 hours last month in the cockpit flying passengers. It added that this is "well within regulatory limits set by the Civil Aviation Authority, IATA, and ICAO", which cap flight duty at 100 hours per month. While there is no doubt that that is a lot of money, the big question is: What is the point of having a full bank account if you cannot see your loved ones and your quality of life is low? According to Solidarity's statement, the improvement in the pilots' quality of life is the main issue. This is set to be tackled when the mediation process between Solidarity and FlySafair's management takes place on Wednesday. The process was requested by the Commission for Conciliation, Mediation and Arbitration (CCMA), in terms of section 150 of the Labour Relations Act. "While the pilots are also seeking a reasonable salary increase – including to restore their compensation to pre-COVID-19 levels – improved working conditions are particularly important. A new rostering system, recently implemented unilaterally by FlySafair, has drastically changed the established working conditions of pilots, which have been in place for the past decade. This new schedule impedes adequate rest periods and undermines pilots' family life," the union stated. "As pilots' workdays often start before sunrise and last until late at night, sufficient rest is of utmost importance for the safety and well-being of pilots and passengers alike. In addition, pilots work seven days a week on a rotating schedule, which significantly impacts their family life compared to those who work standard office hours." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Next Stay Close ✕ The proposals to achieve a settlement include, but are not limited to: that pilots will have at least one weekend off within each five-week schedule cycle, as well as two consecutive days off to properly rest and spend quality time with their families; the opportunity for pilots to exchange shifts with colleagues in cases where family responsibilities necessitate such flexibility; that if they have to fly on their days off, they will be compensated for these days off within the next schedule cycle. Additional schedule proposals will also be submitted to FlySafair's management during the mediation. It's worth noting that Solidarity stated that if FlySafair complies with the above requests, it will be prepared to review the salary increase demand and all other related claims and be willing to compromise. This statement comes hours after FlySafair has confirmed that all flights on Tuesday's schedule are departing as planned and assured customers that disruptions have been minimal so far. IOL
