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Daily Maverick
a day ago
- Business
- Daily Maverick
‘Enough is enough' – Saftu threatens mass protests over NMB public fund mismanagement
The South African Federation of Trade Unions in Gqeberha said on Wednesday that it was 'deeply outraged, though not surprised' by the Auditor-General's damning findings on the Nelson Mandela Bay metro. The organisation has threatened mass action as a response to 'incompetence, mismanagement and a total disregard for working-class residents'. The South African Federation of Trade Unions (Saftu) has threatened the Nelson Mandela Bay municipality with mass action to protest against what it has called the current coalition government's 'incompetence, mismanagement and total disregard for working-class residents'. Saftu secretary Mziyanda Mcanda said a meeting had been held with the Speaker of Council, Eugene Johnson, who had promised to address their concerns. But, he added, the latest Auditor-General's report on Nelson Mandela Bay was deeply shocking. 'The report confirms what workers, the unemployed and the poor have long known — that this municipality is being run into the ground by incompetence, mismanagement and a total disregard for working-class communities,' said Mcanda. Grant spending Despite being the only metro to receive the Regional Bulk Infrastructure Grant (RBIG) — a critical intervention aimed at improving bulk water and sanitation infrastructure — the municipality underspent the grant by 41%, according to this report. 'This is criminal negligence in a city facing chronic water insecurity and failing sanitation systems. Communities in KwaZakhele, Motherwell and Chatty continue to suffer water cuts and sewerage overflows, while the money meant to fix these issues lies idle due to so-called implementation challenges,' Mcanda said. 'Even more damning is the fact that 67% of senior management posts are vacant, the highest of any metro in the country. This leadership vacuum reflects a collapsing state — one that is either unwilling or unable to deliver even the most basic services. Workers inside the municipality are overburdened, demoralized and left without leadership or direction, while politically connected elites scramble for tenders and positions,' he added. Motherwell housing project He highlighted the plight of residents who had been promised housing through the Motherwell NU30 housing project, calling it 'another insult to our people'. 'The Auditor-General confirms that houses were approved for handover despite structural defects and no electricity. These are not homes; they are shells. People are being handed keys to hardship, not dignity. This is a systemic crisis. It cannot be reduced to administrative failures; it is the direct result of a capitalist state that serves private profiteers and political elites, not the working class. While public money goes unspent or wasted, our communities suffer hunger, evictions, floods and disease,' he said. Mcanda said the organisation wanted the urgent filling of senior vacancies with competent, accountable and community-oriented personnel. 'No more cadre deployment for corruption,' he added. They are also demanding the institution of a forensic investigation into the RBIG underspending and NU30 housing project, 'with consequences for those responsible'. He said they also wanted an emergency summit of affected communities, labour and civil society 'to chart a democratic, people-centred turnaround strategy for the metro'. Saftu's concerns were also echoed in a letter by faith leaders in the metro which was sent to President Cyril Ramaphosa in May. 'Enough is enough. We will not allow this municipality to continue failing our people. If these demands are not urgently addressed, Saftu Gqeberha will mobilise for mass action,' Mcanda added. DA says budget is morally indefensible Meanwhile, the Democratic Alliance (DA) said the proposed 2025/26 Nelson Mandela Bay budget was unrealistic and morally indefensible, as it passes the buck to ratepayers to 'fund the mismanagement of our inept ANC-led municipality'. In a pre-budget press conference held on Wednesday, Odendaal said the metro was haemorrhaging millions of rands due to its inability to spend grant funding. The budget will be discussed in a council meeting on Thursday. 'Over the last two financial years, the ANC-led administration's dysfunction has lost a staggering R900-million in grant funding meant to build roads, and water and electricity infrastructure. 'This inability to spend is a crisis and, as of April this year, the municipality had only spent 38% (R752-million) of its R1.934-billion capital expenditure budget. 'Against the backdrop of this continued mismanagement, the tariff increases in the budget are morally indefensible. Imagine losing money and then asking ratepayers to balance the books,' Odendaal added. He further said that the budget as presented to council was only funded because it assumes a 76% collection rate while the average collection rate for the 2024/2025 financial year is 72.15%. 'Ward-based budgets are also a major concern as very little budget has been made available for certain wards. The DA believes every community has the right to a fair allocation of resources,' he said. Executive Mayor of Nelson Mandela Bay Municipality, Cllr Babalwa Lobishe, held a mayoral member committee meeting on Wednesday to address the findings of the Auditor-General, and stressed the critical importance of enhanced planning and accountability within all departments. She promised last week that she would address the vast underspending of Treasury grants at the city council meeting on Thursday. 'By Monday, a consultative report must be ready for virtual discussion to guide Wednesday's submission. With only three months left until the Auditor-General's review, we cannot afford to be caught off guard,' she said. Departments have also been directed to review current contracts, identify possible risks and define clear actions to avoid repeated deviations or contract extensions. 'Changing our culture doesn't take time; it takes consistency. If we focus on efficient, daily execution, our teams will adapt and we will start seeing real progress,' she concluded. DM
IOL News
24-05-2025
- Politics
- IOL News
Zwelinzima Vavi calls MK Party leader Jacob Zuma 'worst thing South Africa has ever experienced'
Secretary of the South African Federation of Trade Unions (SAFTU), Zwelinzima Vavi, believes that former President Jacob Zuma was the "worst thing South Africa has ever experienced". Former president Jacob Zuma was the "worst thing South Africa has ever experienced," general secretary of the South African Federation of Trade Unions (SAFTU), Zwelinzima Vavi, said. "In my view, Jacob Zuma was the worst thing that this country has ever experienced and I'm not saying this because of the expectations we had about what he was going to do for the working class in South Africa," he said. Vavi was speaking during an interview on the EFF Podcast on Thursday. The veteran trade union leader said Zuma was the worst thing the country has ever experienced. In response, MK Party National spokesperson Nhlamulo Ndhlela defended Zuma, labeling Vavi as "irrelevant" and accusing him of using the former president's name to maintain his own relevance. "Vavi is an irrelevant trying to be relevant using President Zuma's name," Ndhlela told IOL.
Eyewitness News
14-05-2025
- Business
- Eyewitness News
Concern over South Africa's first quarter jobs bloodbath
JOHANNESBURG - Close to 300,000 South Africans lost jobs between January and March this year. This is the highest number of job losses recorded over any quarter in four years. On Tuesday, Statistics South Africa (Stats SA) released its quarterly labour force survey, revealing an employment decrease of 291,000 in the first quarter of 2025. The country's latest unemployment figures have been met with concern by economists and trade unions, who've cast the blame squarely on the government's failures to prioritise its citizens. "These figures expose the complete failure of the government's macroeconomic policies, which continue to serve the interests of big business and the wealthy elite, while abandoning the working class and the poor," said South African Federation of Trade Unions spokesperson Newton Masuku. READ: Unemployment increased to 32.9% in Q1 - Stats SA Economist Dawie Roodt says he suspects a negative GDP outlook for the first quarter following the latest unemployment figures. "Of course, there are many reasons for that. The on-off budget. The instability in the Government of National Unity. The (Donald) Trump stuff, tariffs on and off. These all added to uncertainty, and in uncertain circumstances, people don't want to do business." The trade and construction sectors saw major decreases in employment, while transport and finance recorded the largest employment gains.
IOL News
12-05-2025
- Business
- IOL News
Manufacturing in crisis: Saftu and Cosatu warn of job losses amid declining production
The South African Federation of Trade Unions (Saftu) and Congress of South African Trade Unions (Cosatu) are concerned about the loss of jobs as the manufacturing sector continues to decline. Image: Supplied The South African Federation of Trade Unions (Saftu) and the Congress of South African Trade Unions (Cosatu) have raised concerns about job losses amidst a decline in the country's manufacturing sector. This was after Statistics South Africa (Stats SA) released data showing that manufacturing production decreased by 0,8% in March compared to the same period last year. This marked the fifth consecutive month of decline in industrial activity. The largest negative contributors were petroleum, chemical, rubber and plastic products and electrical machinery. On a quarterly basis, production fell by 2,3% in the first quarter of 2025 compared to the fourth quarter of 2024. It also decreased by 2,2% on a monthly basis - March 2025 compared to February 2025. Saftu attributed the decline to neoliberal policies, insufficient investment and an extractive economic structure. The federation called for policies that prioritise job creation and industrial development. On the other hand, Cosatu said it was concerned about the loss of jobs. The union warned that this would be worse as the expanded definition of unemployment, which includes those discouraged from seeking employment, remained unchanged at 41,9%. Saftu said also this confirms a long-term trend of deindustrialisation. Since 1994, Saftu said, manufacturing's share of Gross Domestic Product (GDP) has declined from 22% to just over 11% while capacity utilisation has dropped from 82% to 65%. 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 Next Stay Close ✕ The union pointed to a decline in investment, both public and private, as a key factor in the manufacturing sector's struggles. The federation added that Gross Fixed Capital Formation was 14,93% of the GDP in 2023, which is down from 20% in the early 2000s. It said the private sector investment was 12,37% of the GDP, while public sector investment was just 2,5%. Saftu's general secretary, Zwelinzima Vavi, said these figures confirm that both the State and private capital have retreated from investing in the productive economy. Vavi said if aluminum and steel had been factored in, the deindustrialisation rates would be worse. 'Unless state policy changes, we can anticipate even worse bouts of deindustrialisation, because of the steel industry's crisis. Already the crash of steel output from a peak of nine million tonnes a year to around four million tonnes has required an ongoing bailout of ArcelorMittal foundries that were due to close,' he said, warning that US President Donald Trump's decision to impose tariffs on imports would also worsen the situation. 'Given the extreme animosity to South Africa from Trump and a new group of paleo-conservative imperialist powerbrokers in Washington, due to our government's (correct) labeling of Israel as genocidal and pursuit of affirmative action and land reform, we may anticipate far worse to come. There will likely be no renewal of the Africa Growth and Opportunity Act (AGOA) and intensified punitive tariffs on all exports are certain once the 90-day pause on South Africa's 32% tariff penalty is lifted in July. ' 'South Africa cannot overcome its crisis through austerity or corporate appeasement. Both the private and public sectors have withdrawn from investment. The time has come for a bold shift to a developmental state that leads investment, reindustrialises the economy, and places public goods over private profits. Power concedes nothing without a struggle — the working class must mobilise for a new economic future,' said Vavi. Cosatu called on the government to seek alternate trading partners to counter the impact of US tariffs. 'But at the same time ensure the continuation of AGOA or a similar trade agreement between the USA and SA that increases trade and investment opportunities between both countries,' said spokesperson Zanele Sabela, who added that South Africa also needs to accelerate the role in the African Continental Free Trade Area (ACFTA) to unlock trade with Africa.
IOL News
02-05-2025
- Business
- IOL News
South Africa's Workers' Day: Uniting against unemployment and injustice
Thousands of workers celebrated May Day across the country while they were concerned about the high rate of unemployment and salaries that are below the cost of living. Image: Independent Newspapers SOUTH Africans commemorated Workers' Day with less hope for a better future as 41.9% of them remained trapped in unemployment statistics, with jobless young people sitting at 59%, according to the South African Federation of Trade Unions (Saftu). Both Cosatu and Saftu used the May Day commemoration gatherings on Thursday to express concern about the high unemployment rate and wages that remained below the cost of living. Saftu rang an alarm that, under the country's neoliberal capitalism system, South Africans were 'living the nightmare'. '63% of our people are trapped below the poverty line, 23.7% starving below the food poverty line and black women face the highest rate of all, over 40%,' read the statement. The federation said May Day was a day of battle and people should commit themselves to the unfinished struggle 'against the twin evils of capitalist exploitation and racial oppression that continue to choke our people'. Its main concern was the Draft Code of Good Practice on Dismissal, which, if passed, would make it easy for small businesses to expel workers without following normal labour practice processes, such as 'engage in time-consuming investigations or pre-dismissal processes'. The Department of Employment and Labour published the draft on January 22 for public hearings, which were closed on March 24. This would make it easy for such employers to get rid of poor-performing workers, suspected of misconduct, participating in unprotected strikes, and not adhering to operational requirements. 'On the fairness of a dismissal, the Draft Code proposes that where a dismissal is not automatically unfair, the employer needs only to show that the dismissal was for a fair reason and in compliance with a fair procedure. 'This is in contrast to the current Code, which states that the employer must show that the reason is related to conduct, or capacity, or an operational requirement,' read the draft. 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 ✕ Saftu described the draft, which would amend the Labour Relations Act, as a direct assault on 'the hard-won rights of workers'. 'We call on all workers, unions, and progressive formations to unite in resistance to the new Draft Code, which removes the obligation for small employers to conduct formal disciplinary hearings. 'This opens the door to arbitrary dismissals without investigations, due process, or fairness. Disciplinary processes are replaced with informal 'dialogues' or written responses, stripping workers of representation, transparency, and the right to a fair hearing. This undermines basic principles of procedural fairness,' the union said. Saftu general secretary Zwelinzima Vavi said the amendment of the Labour Relations Act was the worst attack on the workers and was reversing their achievements. 'We are saying no to giving employers the right to dismiss workers without following procedures, we are saying no to employers telling workers that they must write reasons why they should not be dismissed, and the employer decides to dismiss everything they say in writing and dismiss them without a hearing,' he told the media in Johannesburg on Thursday. Cosatu's KwaZulu-Natal provincial secretary Edwin Mkhize said workers in the public and private sectors were facing challenges from austerity measures and disrespect for collective bargaining. Workers in the private sector, in particular the most vulnerable sectors, continue to face serious challenges of exploitation, retrenchments, and precarious conditions due to economic distress and declining share of labour. 'On the other side, company bosses are not willing to compromise on their profit margins. 'Unemployment remains very high, affecting mostly poor communities, women and youth in the main,' said Mkhize. He said there was a need to build 'a very strong' labour movement to protect workers. 'The platform of the May Day Rally should also be used to share challenges faced by the working class, struggles, campaigns, and victories scored,' he said. Addressing the Workers' Day rally in Middleburg, Mpumalanga, Cosatu President Zingiswa Losi said May Day was the declaration of the continuation of workers' struggle. She said workers were celebrating the right to assembly, joining unions, maternity and paternity protection, and R500 billion for Covid-19 lockdown compensation. She said the rights of domestic workers to a minimum wage were a sign that the country was moving towards a living wage. 'But we must not be naive, as we know that the victories of yesterday are under attack today. Unemployment remains a national crisis in South Africa, while labour brokering and casualisation have not been defeated,' she said. Losi said workers were still underpaid, which made them struggle to afford school fees and other household-related costs, and they were the victims of the government's austerity measures. 'Workers cannot afford decent houses, and we must choose whether to take your child to school by transport, or they walk, or you buy bread and mielie meal,' she said. Labour law expert Michael Bagraim said workers had more reasons to celebrate their day than in the apartheid era. 'I keep telling people that Workers' Day was very helpful in endorsing Cosatu in the early days when Cosatu brought the Nationalist government to its knees through industrial action. 'Therefore, we need to celebrate Workers' Day every year because the trade unions were real ones who brought change through democracy, and we must not forget that. 'We also need to celebrate the Constitution, which is a valuable tool for workers' rights,' he said.
