SOUTH AFRICA: MAY 2009 LABOR NOTES

UNCLAS JOHANNESBURG 000081


E.O. 12958: N/A
TAGS: PREL PGOV ELAB ETRD SF EIND ECON EFIN EMIN ELTN
ENRG
SUBJECT: SOUTH AFRICA: MAY 2009 LABOR NOTES

Summary
--------------


1. This is the May, 2009 issue of U.S. Consulate Johannesburg's
Regional Labor Office monthly notes. Topics in this issue are
as follows:

-Legal work for Zimbabwean migrants?
-COSATU unsuccessful in its bid to halt the sale of Vodacom
shares
-COSATU May Day rallies
-Union ends successful trucking strike
-Strike in the public sector comes to an end with physicians
still dissatisfied
-Public servants call for a better pay
-Mineworkers demand a 15% pay increase
-NUM threatens to strike over the liquidation of Pamodzi Gold
-COSATU calls for government to act urgently in addressing job
losses
-Recession hampers skills training
-Aviation faces critical skills shortage
-Metro Bus Strike continues
End summary.


Legal work for Zimbabwean migrants?
--------------


2. The South African Government announced that it plans a
temporary visa waiver and permit policy for Zimbabweans to enter
and/or remain in South Africa that addresses Zimbabweans' mainly
economic motivations for migration. South African officials
countered media speculation that the permit would flame
xenophobic sentiment by noting that employers will be more
likely to hire legally documented individuals rather than hiring
individuals off the books. Formal processes are expected tQ
follow strict South African labor laws and wage regulations.
NGOs have urged South Africa to quickly articulate the details
of the proposed policy and to widely publicize it to employers,
migrants, and the general public, to encourage a smooth
transition and avoid xenophobic retaliation.
Source: Business Day - May 5, 2009


COSATU unsuccessful to halt the sale of Vodacom shares
-------------- --------------


3. A South African court has dismissed an attempt by COSATU to
stop UK-based Vodafone's planned $2.6 billion purchase of a 15
percent stake in Vodacom from state owned Telkom. The court
ruled that Telkom has the right to sell its 50% stake in Vodacom
--- South Africa's most successful mobile phone provider.
COSATU had applied for an interdict to prevent the sale alleging
that Telkom failed to `properly consult unions' about the merger
and possible job losses. The case sets an important legal
precedent in favor of the business community as it was one of
the first times that South African courts ruled on the rights of
non-shareholders and unions to be consulted during merger
discussions. COSATU continues to raise concern that cellular
phone service is a national asset that should be under South
African government control.
Source: Business Report - April 21, 2009; Engineering News -
April 30, 2009; Reuters - April 30, 2009


COSATU May Day rallies
--------------


4. The Congress of South African Trade Unions (COSATU) marked
`Workers Day' with 36 rallies around the country. COSATU
President Sidumo Dlamini, ANC president Jacob Zuma, COSATU
General Secretary Zwelinzima Vavi, and South African Communist
Party General Secretary Blade Nzimande addressed 20,000
supporters gathered at the national rally held in the Eastern
Cape. Vavi stated that `COSATU played a prominent role in the
ANC's victory and now COSATU is mobilizing for our own
interests.' COSATU expected `fresh blood, unity, continuity and
loyalty to the Polokwane [ANC conference held in December 2007]
resolutions.' Vavi went on to say that COSATU was pleased with
the consultation process with the ANC on the formation of the
new government and that trade union federations were going to
`reap the benefits.' Zuma's speech suggested that the ANC would
look at ways to further regulate the labor market but did not
agree to COSATU demands to outlaw temporary and contract work.

Source: Mail and Guardian - April 29, 2009; Sunday Times - May
3, 2009


Union ends successful trucking strike
--------------


5. A contentious nine day strike in the trucking sector ended
on April 16 with a settlement between The South African
Transport and Allied Workers Union (SATAWU) and the Road Freight
Industry Employers Association (RFA). COSATU affiliate SATAWU
was pleased that employers raised minimum wages for truck
drivers by thirty seven percent with long distance drivers now
guaranteed a minimum of 6000 Rand per month (approx $722). All
drivers making above minimum wage are guaranteed an 11% salary
increase implemented over two years. The settlement also
included a provision for employees to receive thirty-three
percent of their basic salary during maternity leave. SATAWU
told the media that the sticking point in the strike had been
SATAWU's (successful) demands to extend the agreement beyond
truck drivers to all workers employed in operations,
warehousing, fleet maintenance, and administration. The media
gave SATAWU credit for receiving a healthy settlement given that
non-COSATU unions did not join in the strike and kept the
country from experiencing a large - scale shortage of goods.

Source: Sowetan - April 16, 2009


Public health physicians still dissatisfied
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6. A two week strike by doctors in the troubled public health
system ended on April 20 without resolution. Doctor's had gone
on strike to protest low pay, staff shortages, mismanagement,
and overcrowding in South Africa's public health facilities.
The South African Medical Association (SAMA),representing
public practitioners, told the media that conditions in public
hospitals had created `reverse demand and supply.' SAMA said
that 35% of doctors in the country serve 70% of the population
because most physicians prefer private practice. SAMA urged the
Department of Health to focus on retention of skilled staff.
The South African Department of Health criticized SAMA actions
as premature and offered a five percent wage increase. SAMA
rejected the five percent increase, reiterated its demands for a
fifty percent salary increase, and will be meeting on May 11 to
discuss the impasse.
Source: The Citizen - April 21, 2009; Sowetan - May 4, 2009


Public servants call for a better pay
--------------


7. One of the first tasks of the Zuma government will be to
enter into wage negotiations with the South African Civil
Service. Unions representing the public service have upped
their calls for salary increases, affordable medical insurance,
and housing subsidies. The Independent Labor Caucus (ILC),
representing South Africa's public sector unions, plans to begin
wage negotiations with the government shortly. Unions expressed
concern that most of South Africa's one million public servants
earn between 3500 and 6200 Rand per month (approx $416 to $773).
The ILC emphasized that it was `sensitive to the global
economic situation and is deeply concerned about the scale of
job losses locally and internationally,' but said `it remains
our duty, as custodians of our members' rights and interests, to
ensure that their employer meets at least the most basic of its
responsibilities towards its employees.' ILC officials reminded
the media that a 2007 strike by its members had lasted over one
month.

Source: Business Day - April 15, 2009


Mineworkers demand a 15% pay increase
--------------


8. The National Union of Mineworkers (NUM) submitted its 2009
wage demands to the Chamber of Mines. NUM members made clear
that they expect `nothing more and nothing less' than a 15%
non-negotiable wage increase. NUM said that their proposal can
easily be supported despite the global financial crisis. NUM
believes that South Africa's `huge' infrastructure development
program has kept the demand for coal strong. They also said
that gold and other commodities remain a safe haven for
international investors. Other NUM demands include that medical
aid be given to employees; that the minimum basic rate for entry
level work be set at 5000 Rand Per Month (approx $595); and that
a homeowners allowance received by miners be adjusted to the
greater of 1500 Rand per month (approx $175) or 25% of the
monthly mortgage repayment. NUM General Secretary Frans Baleni
stated that `the mandate is clear and our members say they
expect no excuses from the industry.'

Source: Frans Baleni, Num General Secretary and Lesiba Seshoka,
NUM National Spokesman - April 20, 2009 Press Release


NUM threatens to strike over the liquidation of Pamodzi Gold
-------------- --------------


9. The National Union of Mineworkers (NUM) is preparing for a
national strike over the liquidation of Pamodzi Gold with full
organizational support from COSATU. COSATU is angry that they
were not consulted about liquidation plans and potential buyers
for Pamodzi's troubled (bankrupt) Orkney mine. COSATU
emphasized that `the liquidation of Pamodzi Gold will have a
negative impact on unemployment rates and poverty levels' and is
angry over plans to trim Pamodzi's labor force and/or use
potential contract labor. Labor broker JIC Mining Services was
appointed by creditors to manage Orkney until the mine can be
packaged for resale. NUM believes that JIC might try to run the
mine on a permanent basis with contract labor and has said that
any mine operator must negotiate directly with the union on
employment levels and conditions of employment.

Source: Business Report - April 22, 2009; Mining MX - April 23,
2009


COSATU says govt should act in addressing job losses
-------------- --------------


10. COSATU upped its criticism of the South African Government
`for not acting urgently enough to implement the plans decided
on to stem the tide of job losses resulting from the global
financial meltdown.' Business, labor, and the government drew
up a framework for South Africa's response to global economic
crisis in March. However, COSATU said the plan was not working
given daily retrenchments and loss of benefits, particularly in
the export-oriented automotive, clothing and textile industries.
COSATU appealed to the government to review tariff reductions
that have had a negative effect on industrial development and
job creation. The union federation further said that South
Africa should resist calls to reduce tariffs that may compromise
the protection and competiveness of the country's industries and
creation of jobs.

Source: Patrick Craven, Cosatu Spokesperson - April 15, 2009;
Business Day - April 16, 2009


Recession hampers skills training
--------------


11. Deputy Policy Head of the South African Presidency Allan
Hirsch stated that the global economic recession had hampered
the development of skills in South Africa as companies often
slashed training budgets to guard against job losses.
Presenting the annual reports of the Joint Initiative for
Priority Skills Acquisition (JIPSA) and the Accelerated and
Share Growth Initiative for South Africa (AsgiSA),Hirsh told
the cabinet that `when the economy recovers, companies will once
again be unable to recruit suitably skilled people, unless we
continue the momentum of JIPSA and AsgiSA.' AsgiSA, a Mbeki-era
program, had set an ambitious target of halving unemployment
from 28% in 2004 to 14% or lower by 2014 and halving the poverty
rate in the same period. Hirsh stated that the targets were
impossible given the global economic slowdown. JIPSA skills
development programs would continue in the Zuma administration
under the umbrella of a new body, the Human Resource Development
Strategy (HRDS),with further details to soon be announced.
Source: Business Day - April 17, 2009


Aviation faces critical skills shortage
--------------


12. Civil Aviation Authority (CAA) Chief Executive Officer
Colin Jordaan said that the poor global economy had not helped
to resolve South Africa's dire shortage of aircraft technicians,
air traffic controllers, and aviation safety inspectors. Due to
global shortages, many highly skilled South Africans were easily
lured overseas by lucrative job offers at an `alarming' rate.
Coupled with the emigration of skilled professionals, the number
of young South Africans entering the aviation industry could not
meet local demand. The CAA believed the most pressing demand
was for technicians and Jordaan noted that `if we don't start
attracting and training youngsters as technicians we will have a
critical shortage in two to three years. To avoid that we need
to train 200 to 300 technicians a year.' He said the CAA was
investigating ways to develop and retain skills in the industry.
Source: Business Day - April 16, 2009


Metro Bus Strike continues
--------------


13. The South African Municipal Workers Union (SAMWU) has vowed
to intensify an ongoing 14 day strike of Johannesburg's limited
public bus service unless demands are met. No agreement has
been reached between the union and management and the matter has
been referred to the bargaining council. 500 drivers and 300
support staff accuse senior management of neglect and
corruption. The last SAMWU metro bus strike lasted two months
and occasionally turned violent.
Source: Sowetan - May 4, 2009


PASSEN