Latest news with #MatthewParks
IOL News
5 days ago
- Business
- IOL News
Cosatu backs bill to end outsourcing of essential government services
Cosatu parliamentary coordinator Matthew Parks says the labour federation supports the long overdue Insourcing Bill and undertook to mobilise its full support to ensure its expedited passage by Parliament and assenting into law by President Cyril Ramaphosa. Image: FILE Labour federation, the Congress of South African Trade Unions (Cosatu), has thrown its weight behind the private members' bill aimed to end outsourcing of core government services. The Insourcing Bill, introduced in the National Assembly last month by EFF's Omphile Maotwe, will compel all organs of state to employ workers to provide the regularly required services, once passed. Cosatu's parliamentary coordinator Matthew Parks said the labour federation supported the long overdue bill and undertook to mobilise its full support to ensure its expedited passage by Parliament and assenting into law by President Cyril Ramaphosa. 'This progressive bill speaks to Cosatu's demand to insource key functions performed by various state organs. It responds to long-standing resolutions of the ANC and the Tripartite Alliance,' Parks said. 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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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 ✕ He said the call to insource has been a cry from thousands of workers whose labour rights have been undermined and conditions of service deteriorate as they have been outsourced across the state over many years. The preamble of the bill states that there is a need to provide a legislative framework to supplement the current system of wholesale outsourcing of services and functions required by organs of state. This was to address administrative problems created by the outsourcing of services, corruption in the tender system, and enhancement of accountability in delivering services to the citizens. The bill says it is a duty on the State to put an end to the exploitation of workers, whose services are currently procured by way of outsourcing to provide the services that the state regularly requires. EFF spokesperson Sinawo Thambo said at core of collapsing the state was the wholesale outsourcing of public services to third party contractors. 'This trend has led to widespread corruption, manipulation of the tender system, inflated pricing, exploitation of workers and ultimately the non-delivery of services,' said Thambo. He said outsourcing has replaced long-term skilled employment with insecure, short-term contracts that offer no benefits or prospects for training or career development. The bill wants the state to insource everything from security, cleaning, gardening, maintenance, catering, auditing, ICT, transport, administration and health-related services. The exemptions are only cases of circumstances of national security, services needed can only be obtained from an international supplier or it is in the public interest. The bill provides for the Minister of Public Service and Administration to develop an insourcing policy and accounting officers of organs of state will be expected to implement the policy and ensure personnel are adequately deployed and resources are in place to insource services. Parks said outsourcing has become a key ingredient of state capture and corruption across the state with incestuous collaboration by corrupt elements in both the public and private sectors. 'It has not only weakened state capacity to deliver the public and municipal services that working class communities and the economy depend upon, it has bled the state of scarce resources needed to fund hospitals, schools, policing amongst other frontline services. If we are to win the war against the cancer of corruption, then such functions must be insourced,' he said. 'We cannot continue to be shocked, condemn or hide from Sunday headlines of this or that politician or their family receiving a grotesquely inflated tender whilst failing to deliver the goods, and yet we fail to act on this hollowing out of the state.'
IOL News
08-07-2025
- Business
- IOL News
US tariffs threaten South African jobs, warns Cosatu
Cosatu Parliamentary Coordinator, Matthew Parks, on Tuesday said Cosatu is deeply concerned about the 30% tariff announced by US President Donald Trump, because it will have a devastating impact on the economy that has been languishing at 1% growth rate and a shockingly high unemployment rate of 43.1% Image: AFP South Africa is facing a looming economic crisis following the United States' announcement of a sweeping 30% tariff on its exports - a move that has sparked widespread concern among trade unions, political leaders, and business analysts. Cosatu Parliamentary Coordinator, Matthew Parks, on Tuesday said Cosatu is deeply concerned about the 30% tariff announced by US President Donald Trump, because it will have a devastating impact on the economy that has been languishing at 1% growth rate and a shockingly high unemployment rate of 43.1%,. Sectors that will be hard hit include the automotive, agriculture, clothing, chemical and jewelery. "Worryingly, the impact of the impending tariff is already being felt in the Eastern Cape with 900 jobs on the line at Good Year SA and Mercedes Benz "temporarily" shutting down its vehicle production," it said. Cosatu said it is clear more engagement with the US government is required is find alternatives that will be beneficial for jobs and businesses in both countries. "It is also critical that South Africa works to expand relations with other trading partners to mitigate reliance on the US," it said. 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 ✕ Cosatu said it supports Department of Trade, Industry and Competition engagements with the US government to put in place a new trade agreement that is favourable to both nations and in particular workers. "We hope the US Congress will renew Agoa (African Growth and Opportunity Act) as this would help ensure continued favourable access to South African and African exports to the US markets," it said. It further said that it was key that the UIF's TERS administrative challenges be urgently addressed to offer affected companies support while they put in place plans to manage this potential calamity. John Steenhuisen, leader of the Democratic Alliance, said while not explicit, the announcement would signal the end of the Agoa which gives South Africa duty-free access to the US for more than 6 000 products, including goods in the automobiles, agriculture and textile industries. He said thousands of farmers, manufacturers and workers jobs are now at risk. Billions of rands will be lost in export revenue, making this a crippling blow to the economy. Meanwhile, Andrew Bahlmann, the CEO of Corporate & Advisory, Deal Leaders International, warned the imposition of a sweeping 30% tariff by the United States on "any and all South African products," effective August 1, represents a seismic shift with profound implications for Mergers and Acquisitions (M&A) and Foreign Direct Investment (FDI) into South Africa. Bahlmann said, "This unilateral move, ostensibly aimed at correcting a perceived trade imbalance, fundamentally alters the economic calculus for both existing and prospective investors." Firstly, Bahlmann said, the tariffs act as a significant disincentive for FDI into South Africa. "Why would a foreign entity establish or expand manufacturing operations in South Africa if a crucial export market like the US is subject to a prohibitive 30% penalty?," he said, adding that this directly undermines South Africa's attractiveness as a production hub for goods destined for the American consumer. He said President Donald Trump's explicit offer of "There will be no tariff if South Africa, or companies within your country, decide to build or manufacture product[s] within the United States" was a clear directive to redirect FDI away from South Africa and other countries into the US, potentially leading to capital flight or a re-evaluation of global supply chains. Secondly, Bahlmann said the tariffs will undoubtedly chill M&A activity within South Africa. Companies heavily reliant on US exports, particularly in sectors like automotive and agriculture (already flagged for devastating job losses), become less appealing acquisition targets. Their revenue streams are now threatened, and their valuations will likely decrease, making them less attractive for foreign buyers seeking growth or market access. This increased uncertainty and reduced profitability will likely lead to a slowdown in deal-making as investors adopt a wait-and-see approach or seek opportunities in less volatile markets. "This environment of heightened trade friction and perceived governmental unpreparedness creates an unfavourable climate for long-term capital commitments, impacting both greenfield FDI and strategic M&A. While calls for diversification are valid, building new trade relationships and industrial resilience is a long-term endeavour that cannot immediately offset the impact on established export channels," he said. Despite these significant headwinds, Bahlmann said the South African market, with its inherent value, diverse sectors and resilient businesses, continues to present compelling M&A opportunities for discerning foreign investors. "While the landscape is undoubtedly more complex, it is precisely in such times of disruption that strategic advantages can be forged," he said. BUSINESS REPORT
The Citizen
04-07-2025
- Business
- The Citizen
Thousands denied pensions as employers fail to pay
R5.2bn in pension debt owed by employers, mainly municipalities and security firms, leaves thousands of workers in limbo. A large number of municipalities and private employers who did not pay employees' contributions over to pension funds may face investigations. Their non-payments have tipped the new two-pot retirement system into turmoil. The employers are facing imminent investigation by the department of employment and labour, which is planning to flood them with labour inspectors to check their compliance status. Long list of companies, municipalities that violated pension fund They will also be sanctioned by the Financial Sector Conduct Authority (FSCA) which has a long list of private companies and municipalities that violated the pension fund rules and the law. An FSCA report showed municipalities and firms, mainly in the security and cleaning sectors, owe their employees approximately R5.2 billion in outstanding pension fund contributions impacting 31 000 people, with some cases dating back to the 2000s. Of the outstanding contributions, some R1.4 billion is owed by municipalities, affecting pension fund members' savings. ALSO READ: Industry leaders launch market surveillance code as Steinhoff fallout lingers The FSCA identified around 7 770 noncompliant employers, with 2 330 of them being publicly listed for violating Section 13A of the Pension Funds Act. Many employees, who were hoping to claim from their pension funds under the two-pot scheme, are crying foul after hitting a brick wall when they attempted to claim the 30% due to them under the two-pot system, which came into effect last year. The system has two pots – one is for savings and constitutes one third which goes into a savings pot and is accessible for withdrawal since September last year. The other two-thirds goes into the retirement pot to be kept in the fund until the pensioner's retirement age. Employees found their monies had been withheld The distraught employees found that their monies had been withheld by employers, particularly municipalities and the security and cleaning sector, that were all blacklisted by the FSCA. This means the contributors cannot claim the saving portion of their contributions. The Congress of SA Trade Unions (Cosatu) has taken up the matter on behalf of the affected workers, who inundated their various unions with complaints about how their employers had inconvenienced and prejudiced them due to nonpayment of their pension fund contributions. ALSO READ: Missing broker, missing money Cosatu parliamentary coordinator Matthew Parks said Cosatu has established a task force with the FSCA, National Treasury and the Association for Savings and Investment South Africa (Asisa) at the National Economic Development and Labour Council to deal with this crisis. Asisa represents the collective interests of asset managers, collective investment scheme management companies, linked investment service providers, multi-managers and life insurance companies. Parks said: 'It has the potential to get out of control. We're engaging the different sectors. Engagements have taken place with the SA Local Government Association and more are planned.' Potential to get out of control The department agreed to issue a ministerial directive to labour inspectors to check pension fund compliance by employers. The department also increased the number of labour inspectors from 2 000 by 10 000 this year and 10 000 to be hired next year. The FSCA is working with the National Prosecuting Authority to pursue criminal sanctions against offenders. NOW READ: FSCA juggling high-profile cases with limited resources
IOL News
27-06-2025
- Business
- IOL News
Public Sector Pension Bill aims to simplify payments of post-retirement benefits for public servants
The National Assembly has approved the Public Sector Pension and Related Payments Bill, aimed at simplifying pension payments for public servants, Image: File photo. THE National Assembly has approved the Public Sector Pension and Related Payments Bill, which is aimed at simplifying how pensions and related post-retirement benefits are paid to public servants. The Bill will now be referred to the National Council of Provinces for concurrence. The legislation, introduced by the Minister of Finance as part of the 2025 Budget, proposes that public sector pension, post-retirement medical, and other benefit obligations become direct charges against the National Revenue Fund (NRF). This change seeks to streamline administration and avoid delays in payments, according to Parliament. Parliament said in a statement that 'the current payment system makes it difficult for National Treasury to pay the benefits, as there are administrative requirements to track which department each retired claimant worked in, causing delays and complications.' Trade union federation, the Congress of South African Trade Unions (Cosatu) supports the Bill. 'We were fine with the Bill as it is largely an administrative one that does not have any adverse impact or threaten public sector pensions and related payments,' said Cosatu Parliamentary Coordinator Matthew Parks. 'We are comforted by it correctly recognising that the state is responsible for all public sector and related pension payments. This is crucial to protect workers and pensioners.' Parks added that Cosatu was also reassured by the Bill's support for collective bargaining processes. 'We are pleased that it affirms the role of collective bargaining processes and agreements where matters affecting public sector pension funds are discussed and resolved with organised labour,' he said. 'We have been reassured by Treasury to this effect as well.' He concluded: 'We are confident that Parliament will conclude the passage of the Bill before the deadline and thus pension funds will remain protected.' However, the Public Sector Coordinating Union (PSCU) raised several concerns about the Bill's structure and safeguards, especially a clause that Parliament's Standing Committee on Appropriations had also flagged. The Standing Committee had noted that while it supported the Bill, it had concerns with a clause that says, 'If Parliament does not approve or reject changes to the list of benefits within three months, those changes will automatically become law.' The committee said it 'does not agree with this and asked the Minister of Finance to remove that clause in the next round of changes.' The PSCU echoed this criticism. 'This is a dangerous loophole. The PSCU unequivocally rejects the clause that allows benefit changes to pass automatically if Parliament procrastinates,' said Tahir Maepa, a PSCU representative. 'This is a betrayal of workers' trust. Pensions are a lifelong commitment, not a policy loophole that can be manipulated without due regard.' While cautiously supporting the Bill's intention to place pensions directly on the NRF, Maepa warned: 'We conditionally support placing pensions and post-retirement benefits on the NRF, as it should address delays and underfunding. However, we caution the government that this cannot be used as an excuse to freeze wages, reduce job opportunities, or privatise services. Workers' deferred wages must be legally protected from austerity measures.' He added that the Bill's success depends on firm guarantees. 'The Bill's promise of efficiency is meaningless without penalties for late payments to retirees; a union seat at the table to monitor the implementation of the Bill; and strong anti-cut protections embedded in the law itself.' 'If the government disregards our concerns, we will mobilise our members and challenge this Bill in every forum, including courts, public spaces, and Parliament,' Maepa said. THE MERCURY
IOL News
25-06-2025
- Business
- IOL News
Fresh concerns over South African job market as employment drops
According to the Quarterly Employment Statistics (QES, Q1:2025) survey released by Statistics South Africa (Stats SA), total employment in the formal non-agricultural sector decreased by 74 000 (-0.7%) in the first quarter of 2025, with employment falling from 10.65 million in December 2024 to 10.58 million by March 2025. Image: Supplied The latest Quarterly Employment Statistics (QES) released by Statistics South Africa (Stats SA) for the quarter ended in March has raised significant concerns as the report reveals a downturn in employment figures, exacerbating fears about the health of South Africa's economy. According to the findings, a total of 74 000 jobs were lost in the first quarter of 2025, signalling a decrease of 0.7% from December 2024, where total employment stood at 10 653 000, dipping to 10 579 000 by March. The decline is largely attributed to substantial job losses in key sectors, including trade, which saw a steep reduction of 52 000 positions, and community services, which lost 17 000 jobs. The mining sector also contributed to this downturn, shedding 4 000 jobs, while business services, construction, and electricity reported minor losses. Notably, the transport industry remained static throughout this period, while manufacturing experienced a slight increase, gaining 2 000 jobs. Matthew Parks, spokesperson for the Congress of South African Trade Unions, they were concerned about the figures. 'Whilst there is normally an increase in jobs in the last quarter of each year as the festive season occurs and the retail and hospitality sectors experience a boom; this decrease in employment is nonetheless extremely worrying. The government must accelerate its efforts, working with business and labour, to rebuild the State,' Parks said. Video Player is loading. 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Next Stay Close ✕ Stats SA also highlighted a year-on-year decrease, with total employment falling by 95 000 or 0.9% between March 2024 and March 2025. The report indicated that full-time employment specifically dropped by 55 000 or 0.6% quarter-on-quarter, painting a grim picture of the job landscape. Economists have responded similarly, with Lara Hodes from Investec noting the stark figures from the formal sector, where employment (excluding agriculture) fell by 0.7% on a quarter-on-quarter basis. "Quarter-on-quarter declines were logged in 6 of the 8 industries included in the survey, with the outcome indicative of a lacklustre economy. Economic growth rose marginally in the first quarter of the year as the economy continues to face a number of challenges, with weak business confidence, weighing on investment potential," Hodes said. Dr Elna Moolman, Standard Bank Group head of South Africa Macroeconomic Research, said that part of the weakness in the labour market was due to weakness in the economy this year. 'This stems from policy and political uncertainty both locally and globally. Unfortunately, this hardly improved in the second quarter and so the near-term numbers will remain weak," Moolman said. "We do however expect some economic growth in the second half of the year and that should lead to an improvement in the labour market.' Casey Sprake, economist at Anchor Capital, echoed the sentiments, saying the softness in the labour market mirrored broader economic stagnation amid persistently weak business confidence, policy uncertainty, and low fixed investment. 'Structural reforms, particularly those under the newly launched Operation Vulindlela II, must urgently gain traction if South Africa is to shift from stagnation to inclusive, job-rich growth,' she said. North-West University economics professor, Waldo Krugell, also said this mirrored what the economic growth numbers for the first quarter and the Quarterly Labour Force Survey. 'The economy hardly grew in the first quarter and the unemployment rate has increased. The QES confirms the job losses in the formal sector and the numbers are worrying," Krugell said. "I won't attribute too much of this to international uncertainty and the trade wars. This has more to do with slow growth due to a loss of business confidence and too slow domestic reform.'
