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- INCREASE TO THE NATIONAL MINIMUM WAGE
The Employment and Labour Minister recently announced an increase in the National Minimum Wage (NMW) to R25,42 per hour as of 1st March 2023. The increment aligns with the NMW Act of 2018. The policy framework of this Act is the floor, a level below which no employee should be paid. The Act dictates that it is illegal and unfair labour practice for an employer to unilaterally alter an employee's working hours or other Conditions of Employment due to the wage adjustment. Notwithstanding, the NMW covers the wage payable for ordinary work hours and excludes allowance payments, such as transport, tools, food or accommodation, or payments in kind such as board and lodging, tips, bonuses, or gifts. The Act requires that the NMW Commission reviews the prescribed rates annually, then makes recommendations to the Minister on any adjustment, taking into account alternate views like public comment. The increment applies to Y.E.S Employees who fall under that wage bracket. Support Services are available to direct members in implementing the amended NMW adjustment.
- DO YOU KNOW YOUR ABCS? NAMELY ANTI-BRIBERY & CORRUPTION
It is often seen as a victimless crime for those engaging in bribery and corruption. However, in reality, it reduces efficiency and increases inequality. The truth is that the cost of corruption is colossal, with tangible consequences. According to the World Bank, the corrupt pay more than $1 trillion in bribes annually. The World Economic Forum estimates that the cost of corruption equates to more than 5% of global GDP, or $2.6 trillion. Essentially, corruption is one of the core obstacles to sustainable economic, political and social development in emerging and developed economies alike. To clarify, ‘corruption’ is any illegitimate use of office and includes crimes like nepotism or cronyism and misdirecting funds. ‘Bribery’ is limited to the giving or acceptance of payment for leverage. South Africa has international commitments and obligations to curb the scourge of corruption. Furthermore, the Constitution mandates compliance with international law and requires the country to comply with its international obligations. South Africa has ratified several international conventions and treaties and participates in forums that need the government to implement measures to prevent and combat corrupt activities, like: The United Nations Convention against Corruption (UNCAC), which promotes the prevention and criminalisation of corruption. It highlights the need for international cooperation in the fight against corruption and the return of assets associated with corrupt activities. The African Union’s Convention on Preventing and Combating Corruption. The SADC Protocol Against Corruption. The Financial Action Task Force (FATF). The Group of 20 (G20) Anti-Corruption Working Group, where South Africa participates, thus provides an accountability report. United Nations Convention Against Corruption (2003). The Organisation for Economic Cooperation and Development’s Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (1997), The United Nations Convention against Transnational Organised Crime (2000) and its associated protocols. What is clear is that South Africa is internationally committed to preventing and combating corruption and has a legislative framework that paves the way. Each convention and treaty ratified by South Africa compels action to prevent and combat corruption. The National Anti-Corruption Strategy (NACS) is the driving force overseeing compliance in the public and private sectors. Other significant local anti-corruption laws include the Prevention and Combating of Corrupt Activities Act (12 of 2004), The Prevention of Organised Crime Act 121 of 1998 and the Financial Intelligence Centre Act (38 of 2001). Many organisations address corruption by implementing remedial measures and controls to identify it. However, without public and private intervention, the scourge of bribery, extortion and/or bribe solicitation will continue with impunity. The OECD Recommendations, The Public Services Act, The Companies Act and the NACS all address the preventing and combating of corruption in public and private sectors. OECD Recommendations In 2010 there was a positive step forward in the fight against corruption when the OECD Recommendations on Combating Bribery, Bribe Solicitation and Extortion (2011) were introduced in terms of regulation 43 of the South African Companies Act (71 of 2008) as amended. Hence, South African organisations are obliged to: not pay or demand bribes; have an anti-bribery policy; develop internal processes and controls to mitigate the bribery risk; keep fair and accurate books and records; perform an anti-bribery risk assessment to identify the risks of bribery; perform due diligence on agents, intermediaries and consultants to ensure that they do not pay bribes on behalf of an organisation; educate employees and agents on anti-bribery processes; publicise their anti-bribery initiatives; and avoid unlawful political contributions. To adhere to the OECD Recommendations, organisations across all sectors must implement robust anti-bribery and corruption programmes. The recommendations’ core objective is to neutralise people’s ability to pay bribes in the private sector. The ripple effect would halt public sector corruption, as those in the private sector invariably pay bribes. Organisations should regard the OECD Recommendations as a normal business practice. They amount to good corporate governance and commitment to doing ethical business and mitigating the risks associated with bribery. Public Sector Legislation The amendment of the Public Service Act (Act 103 of 1994) and the Public Service Regulations aim to protect procurement processes and send a strong message to the ruthless breed of capitalists intent on keeping corruption thriving. The amendments include: Prohibiting public officials from undertaking other remunerative work outside their employment. Public officials performing other remunerative work outside their employment should seek permission from senior officials. When participating in additional work and receiving remuneration, they must obtain a Certificate of Approval, which must be attached to the public service employee’s Financial Disclosure Form, allowing for easy verification; Prohibiting public officials from conducting business with any organ of state, whether in their capacity as individuals or through companies in which they are directors; Prohibiting public officials from accepting gifts from any employee or person in return for performing their duties; Compelling designated public officials to disclose their financial interests, which is essential in managing any conflict of interest; and Establishing an ethics infrastructure, such as ethics committees, ethics officers or ethics champions in public organisations. The Companies Act Any South African organisation falling under the jurisdiction of the Companies Act must adopt the OECD Recommendations. Those falling within the ambit include: State-owned enterprises; All listed public entities; In two of the previous five years, any other company that scored more than 500 points relevant to regulation 26(2). Regulation 43 of the Companies Act mandates that an organisation establishes a social and ethics committee. Among many duties in promoting sound corporate citizenship and ethics, the responsibilities include reducing corruption and ensuring the organisation adopts and implements the OECD Recommendations. A summary of the duties of the nominated social and ethics committee, based on the OECD Recommendations on combating bribery, bribe solicitation and extortion, is: Monitoring an organisation’s activities against relevant legislation, legal requirements, or prevailing codes of best practice in social and economic development matters. It includes an organisation’s standing in terms of its goals and includes: the tenth principle set out in the United Nations’ Global Compact, which stipulates that organisations should work against corruption in all its forms, including extortion and bribery; the OECD Recommendations regarding corruption; o the Employment Equity Act; and the B-BBEE Act. Ensuring good corporate citizenship by promoting equality, preventing unfair discrimination and reducing corruption; Contributing to the developing communities in areas where an organisation operates or where it markets product or services; Maintaining a record of sponsorship, donations and charitable giving; Overseeing issues relating to the environment, health and public safety, as well as the impact of an organisation’s activities, products or services; Ensuring that an organisation's advertising and public relations align with consumer protection laws; Addressing labour and employment issues: Evaluating the organisation’s standing in terms of the International Labour Organization Protocol on decent work and working conditions; Appraising an organisation’s employment relationship and contributions with regard to the educational development of its employees; Drawing matters within its mandate to the board’s attention, as the occasion requires; and Reporting to shareholders at the organisation’s annual general meeting on the matters within its mandate. National Anti-Corruption Strategy 2020-2030 The South African Government developed and published the NACS, a strategic framework and action plan for the country which seeks to create a society that: Reinforces the government’s administrative and procurement processes to ensure greater monitoring, accountability and transparency. Educates the public about what constitutes corruption, thus empowering them to respond when or where necessary. Encourages support and protection of the public and whistle-blowers who report corruption. Holds public officials accountable for providing inadequate services. Creates a culture of zero tolerance toward corruption in any sector by holding those involved in corrupt activities accountable. Holds organisations and civil society accountable for bribery and corruption. The premise of the NACS principle is the emphasis on preventing corruption through good governance, transparency, integrity and accountability. An integrated approach to fighting corruption will help mitigate the risk of costly commissions of inquiry, forensic investigations and other legal processes. The government built the strategy on the following six pillars: Promote and encourage active citizenry, whistleblowing, integrity and transparency in all spheres of society. Enhance employee professionalism to optimise their contribution towards creating corruption-free workplaces. Enhance governance, oversight and accountability in organisations across all sectors. Improve the integrity, transparency and credibility of the public procurement system. Strengthen dedicated anti-corruption agencies to resource and coordinate transnational cooperation, performance, accountability and independence. Protect vulnerable sectors most prone to corruption and unethical practices with effective risk management. Prevention and Combating of Corrupt Activities Act This legislation applies to organisations based in South Africa, including international ones conducting business in the country. Facilitation payments have always been illegal in South Africa. In terms of the Prevention and Combating of Corrupt Activities Act (12 of 2004), it is a criminal offence to provide any form of ‘gratification’ to an official if it is not lawfully due. The Act regulates bribery as: “any person who directly or indirectly gives or accepts or agrees or offers to give or accept any gratification from another person to act personally or influence another person to act in a manner that amounts to an illegal, dishonest, or unauthorised action or an abuse of authority, a breach of trust or a violation of a legal duty, is guilty of the act of corruption.” In addition to the general offence of corruption, the Act sets out an entire series of corrupt activities, including the bribery of public and foreign government officials. It addresses corruption related to, among others, tenders, contracts, agents, members of the legislature and judiciary, sporting events and games of chance. On a global front, the Act imposes lengthy periods of imprisonment on individual offenders convicted of corrupt activities. The mandatory minimum sentence for corruption in the South African sentencing guidelines is direct imprisonment for 15 years. The Prevention of Organised Crime Act 121 of 1998 The main objective of this legislation is to provide for the recovery of the proceeds from unlawful activities. The High Court has jurisdiction to make a forfeiture order as per section 50(1)(b) of the Prevention of Organised Crime Act, 1998, in respect of property situated outside the territory of South Africa and belonging to persons who are presently resident elsewhere. An order can be made upon reasonable grounds to believe the property concerned is an ‘instrumentality of an offence’ referred to in Schedule 0 (s 38(2)(a)) or is the ‘proceeds of unlawful activities’ (s 38(2)(b)). The definitions of the terms ‘instrumentality of an offence’ and ‘proceeds of unlawful activities’ feature prominently in the Act. The former relates to any property concerned with the commission of an offence, irrespective of where it occurred. The latter applies to any form of property of direct or indirect benefit from any unlawful activity. The legislation aims: to combat organised crime, money laundering and criminal gang activities; to prohibit certain activities relating to racketeering activities; to provide for the prohibition of money laundering and for an obligation to report certain information; to criminalise certain activities associated with gangs; to provide for the recovery of the proceeds of unlawful activity; to ensure the civil forfeiture of criminal assets that the corrupt used to commit an offence or assets that are the proceeds of illegal activity; to provide for the establishment of a Criminal Assets Recovery Account; to amend the Drugs and Drug Trafficking Act, 1992; to amend the International Co-operation in Criminal Matters Act, 1996; to repeal the Proceeds of Crime Act, 1996; and to incorporate the provisions contained in the Proceeds of Crime Act, 1996. The Prevention and Combating of Corrupt Activities Act and the Prevention of Organised Crime Act are a strong foundation for addressing corruption, an acceptable overall anti-corruption. "To clarify, ‘corruption’ is any illegitimate use of office and includes crimes like nepotism or cronyism and misdirecting funds. ‘Bribery’ is limited to the giving or acceptance of payment for leverage." The global fight to combat corruption As many organisations and individuals fly under the radar of culpability inside South African borders, the global playing field of accountability for corruption has changed drastically in the last few years. For some time, anti-corruption campaigners and activists have urged South African authorities to consider adopting legislation similar to the United Kingdom Bribery Act (UKBA) that came into effect in July 2014. Through its innovation, a new corporate offence, “the failure by a commercial organisation to prevent bribery,” has been compelling organisations associated with the United Kingdom (UK) to take robust anti-corruption measures. The UKBA is similar to the Foreign Corrupt Practices Act (FCPA), a United States (US) statute containing anti-bribery prohibitions and accounting requirements. Like US legislation, the UKBA provides extra-territorial jurisdiction to the UK regulators regarding acts of corruption committed by organisations associated with the UK. It is irrelevant whether the Act of corruption occurs in the UK or elsewhere, or where the organisation in question is registered or located globally. Unique to the UKBA is that it applies to both the public and private sectors and criminalises facilitation payments. The legislation is not only aggressive, but it has more far-reaching consequences for South African organisations, as it gives the Serious Fraud Office the power to impose fines for failing to prevent bribery. The US remains the most robust global enforcer of corruption violations. A critical factor for South African organisations is that the US Department of Justice adopts a comprehensive approach to jurisdiction and has cautioned that it will find jurisdiction regarding bribes paid to foreign government officials. It does so if payments route through US dollar accounts or e-mails, where transmission happens through US-based servers. Accordingly, South African organisations that may not ordinarily regard themselves as subject to the international regulators may inadvertently become subject to their extra-territorial jurisdictional reach. For example, if an employee in a subsidiary in South Africa pays a bribe to a foreign government official, a prosecution could occur there. However, the perpetrators could face prosecution in the US as well. It is only a question of time before the South African government implements drastic measures against corruption, similar to those of the UK and US. Therefore, as part of being a good corporate citizen, South African organisations should initiate robust anti-corruption programmes to comply with and avoid prosecution by international regulators and, of course, conform with the South African Companies Act. In today’s global and local anti-corruption compliance environment, it would be reckless for any board of any organisation not to pay serious attention to creating an anti-bribery culture. Non-compliance with anti-corruption requirements has far-reaching consequences and is a risk that organisations must appropriately manage. Despite South Africa being a signatory to international conventions and treaties, as well as having robust legislation in place, it has not fared well in the Transparency International Corruption Index. In 2015 it ranked 61st out of 167 participating countries, and in 2021 ranked 70th out of 180 participating countries. Food for thought, the cost of corruption far exceeds that of mitigating it.
- AVERTING DISASTER – HOW A TES PARTNER CAN EMPOWER IPPS TO FAST-TRACK A STABLE POWER SUPPLY
Barend Matthee | 28 February 2023 Extended blackouts and relentless loadshedding is crippling essential infrastructure and service delivery in South Africa. In a recent announcement, one of South Africa’s largest telco providers stated they were making the shift from the national power grid and would begin sourcing electricity from Independent Power Producers (IPPs). This signals the start of a new era in commercial autonomy as essential service providers seek to bypass the effects of loadshedding. By engaging IPPs, businesses with the funding will either establish their own power plants or purchase power directly from them, as South African IPPs are ready to roll out their alternative power generation projects. To date, several have been signed off and are already at various stages of implementation. With a national state of disaster hanging in the balance, timing is critical and the urgency of getting these projects up and running as soon as possible cannot be understated. Here, a Temporary Employment Services (TES) provider can leapfrog unnecessary delays and get IPPs on track toward creating the stable power supply our country so desperately needs. Impending state of disaster The South African government is currently considering whether the ongoing energy crisis meets the legal requirements to declare a national state of disaster, as record levels of power cuts continue to hamstring the economy. Fuel stations in remote areas, medical facilities, water supply services, food production and telecommunications have suffered immensely in recent months due to incessant scheduled power cuts. With no decisive action taken to date by the government to rectify the ailing power grid, service providers are having to take matters into their own hands now that regulations within the IPP industry have been eased. Following the example of Central and South America where telco companies use renewable energy to power signal towers in remote areas, such solutions will need to be applied in South Africa, not only to power telecommunications but for critical services as well. Providing skills and speed Given the scale and urgency of demand, however, it is unlikely that IPPs have reached a point of maturity where they can step up and meet this deficit, particularly from a labour perspective. Many skills and many hands are required to build the power generation capacity required, and this is where a TES provider would be an ideal partner. With a national footprint and an extensive database of verified skills and labour, a TES provider will help IPPs find and deploy the workforce necessary for the construction, operation, maintenance and repair of renewable power plants. Not only does a TES provider source and place the workforce, but theirs is also an end-to-end employment solution that encompasses the entire administrative burden of managing a large workforce as well as the various compliance considerations required by law. By partnering with a TES provider, IPPs will be able to hit the ground running much faster, overcoming all the usual hurdles involved in projects at scale, and will be able to take on much larger projects which would otherwise have been impossible without the necessary resources. Saving time through support In this respect, a TES provider can save a substantial amount of time on IPP projects. During the consultative phase, the TES provider offers invaluable experience from previous similar undertakings for the IPP to leverage, ensuring that all obstacles and delays are swiftly overcome. At the point of execution, the TES partner can provide critical support in the form of budget planning, HR and IR management, as well as safety and strategic advisory. Of central importance is the direct supply of labour, including contingency staffing and recruitment. The TES provider delivers agile support, including contractor-side recruitment, and the fulfilment of local content requirements. Additionally, the TES partner is capable of handling the indirect supply where the IPPs are required to onboard many suppliers within the project ecosystem. Reducing the administrative burden With the right TES partner in place, IPPs have access to the proper systems and technology for transparency, traceability and auditable information to support the compliance framework and reporting structures required by the Department of Mineral Resources and Energy, massively reducing the administrative burden on the IPP. Here, the TES provider plays an inclusive facilitatory role with the experience and infrastructure necessary to support that procurement function - everything from staff medicals, to transport, training, Personal Protective Equipment (PPE) and staff wellness initiatives. By utilising a TES provider, it becomes possible to achieve labour harmony, as the TES provider also facilitates community and stakeholder engagement, completely handling all elements of human resource management and ensuring the surrounding community benefits properly from job creation, skills development and enterprise and supplier development. Accelerating the entire project lifecycle When considered from this perspective, it becomes clear that a TES provider is effectively competent, enabling turnkey operation, playing a pivotal acceleratory role in the journey to get to that empowerment of the IPPs that results in achieving a stable power supply for essential services, much quicker. Furthermore, the faster a project is completed, the faster the TES provider can assist the IPP to get to the next phase, which is longevity development. This is where true economic recovery and progress happen, as the TES provider supports IPPs and local communities as an empowering catalyst that drives economic initiatives to full effectiveness. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/averting-disaster-how-a-tes-partner-can-empower-ipps-to-fast-track-a-stable-power-supply-for-essential-services-2023-02-27
- NATIONAL MINIMUM WAGE INCREASE POSES THREAT TO AGRICULTURAL JOBS AND THE SECTOR
Thobeka Ngema | 28 February 2023 Durban — The KwaZulu-Natal Agricultural Union (Kwanalu) has said that the national minimum wage increase for farmworkers will place strain on an already difficult economic climate for the country’s agricultural sector. This comes after Employment and Labour Minister Thulas Nxesi raised the minimum wage of farmworkers and domestic workers by 9.6%. The increase will take effect from March 1. Nxesi said the increase will also cover workers employed in the Expanded Public Works Programme (EPWP), learnership allowances, the cleaning sector and wholesale and retail. The percentage increase for farmworkers and domestic workers will translate to R25.42 per hour, while the EPWP will be R13.97 for the same duration. The cleaning sector in the metropolitan areas will enjoy R27.97 and the rest of the country is R25.50. The significant increase will benefit 892 000 domestic workers who are overwhelmingly women and 800 000 farmworkers. Kwanalu said the increase would place tremendous strain on an already difficult economic climate for the country’s agricultural sector. “The increase in the national minimum wage will have a negative impact on the livelihoods it aims to serve, as the agricultural sector struggles to keep afloat following other recent key contributing factors,” said Kwanalu chief executive Sandy La Marque. Kwanalu’s statement follows statistics shared with the commission by Kwanalu, which were compiled from the Department of Labour’s quarterly statistics and annual reports, as well as submissions from Kwanalu’s member survey, which also included all the commodity groups in KZN. “These statistics show that specific pressures have, year on year, resulted in a decrease in agricultural employment since 2019 in KZN,” La Marque said. She said that the pressures outlined in Kwanalu’s report included an increasingly narrow economic production climate, an abnormally high cost of inflation when compared with other sectors due to the nature of inputs, severe incidences of flooding, the impact of the July 2021 unrest, foot-and-mouth disease, deteriorating road and infrastructure conditions, and the significant impacts of the ongoing and increased load-shedding schedules. “Kwanalu believes that there is insufficient evidence to equitably enforce a greater than consumer price index (CPI) inflation on rural employment, a 0% base rate should have been the departure point. This is relevant as the rural cost of living is lower than the urban cost of living, so it may well be prudent to give agriculture its own minimum wage determination. “Kwanalu prior to the announcement recommended that an increase of less than CPI is more realistic of the industry position and the impacts on livelihoods of rural employees and dwellers. We will continue to explore options to address the high increase and its impacts,” La Marque said. Meanwhile, last week, Agri SA centre for excellence on labour chairperson, Johan Wege, said Agri SA was alarmed by the announcement of a 9.6% increase in the national minimum wage. Any increase in costs would further strain already hard-pressed farmers. As the sector battled to contain the costs associated with load shedding, crumbling infrastructure and high input costs, this increase would further undermine food security and put much-needed jobs on the line. “The increase continues a trend of above-inflation increases for more than a decade. Whereas farmers were previously in a position to absorb these increases thanks to the sustained growth in a number of agricultural industries, that period is now over. The sector faces extreme headwinds, which on their own threaten food security in the coming years,” Wege said. “Notwithstanding the challenges that the sector faces, Agri SA made a submission proposing a CPI minus 2% increase in the national minimum wage. This proposal recognised the financial pressure on workers in this inflationary environment, but also addressed the reality of farmers’ inability to continue to absorb above-inflation increases. That government has ignored this balanced position is a devastating blow not only for the sector, but also for the consumers who will eventually see this increase reflected in their food expenditure.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/dailynews/news/national-minimum-wage-increase-poses-threat-to-agricultural-jobs-and-the-sector-kwanalu-2b4f0c15-a3cc-4565-a180-274bd3c98690
- SUPER GROUP TO FORM ESOP AS A CONDITION TO ACQUIRING TWO COMPANIES – TRIBUNAL
Schalk Burger | 28 February 2023 JSE-listed logistics and mobility solutions company Super Group has received Competition Tribunal approval, with conditions, to acquire retail and supply chain audit verification company RSC Consulting Services and cleaning company Clean Tech 360. In line with the conditions imposed on the merger, Super Group will announce its new employee share ownership plan (Esop) in March, through which qualifying workers from the stocktaking and cleaning target companies will benefit from shareholding in Super Group, thereby promoting broad-based black economic empowerment, the tribunal says. The Esop will be implemented through an employee trust, which will acquire a specified shareholding in Super Group on behalf of qualifying employees who must be incorporated into the plan within a specified period. Qualifying employees must be black employees and the plan must be held at no cost to its beneficiaries, and dividends will be paid to the trust and distributed to beneficiaries yearly. Super Group provides supply chain management services, operates vehicle dealerships and provides fleet leasing and management services. RSC provides audit and verification of stock, integrity and accuracy audits, as well as inbound and outbound distribution services, while Clean Tech provides commercial and hospitality cleaning and employee management services. One of the public interest considerations under the Competition Act is to promote “a greater spread of ownership, in particular to increase the levels of ownership by historically disadvantaged persons and workers in firms in the market”. As such, the tribunal imposed public interest conditions, agreed to between the merging parties and the Competition Commission, in relation to the greater spread of ownership, given that neither RSC nor Clean Tech have any black ownership, the tribunal points out. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/super-group-to-form-esop-as-a-condition-to-acquiring-two-companies-tribunal-2023-02-28
- TACKLING YOUTH UNEMPLOYMENT THROUGH EDUCATION AND SKILLS DEVELOPMENT
Trace Academia | 28 February 2023 To address the continent's spiralling unemployment rates, some businesses are working to provide solutions. Enter the Trace Academia app, a free online learning platform that promises to empower young people in South Africa and the wider African diaspora by providing them with useful skills and connecting them to employment and entrepreneurship opportunities right from the palm of their hands. African youth risk being left behind when it comes to finding jobs since the development of digital skills has advanced enormously in South Africa and the larger African diaspora. Over 230 million jobs in sub-Saharan Africa will require digital skills by 2030, according to the IFC Digital Skills in sub-Saharan Africa research, creating approximately 650 million training possibilities. Digital skills are a critical enabler for inclusion and the effective use, adoption, and invention of digital technologies in Africa’s expanding digital economy. They have the power to revolutionise the nature of both formal and informal labour across a variety of industries. Mobile-friendly digital platforms present a particularly alluring option for educating a large number of youngsters in digital skills, especially given the skyrocketing rate of mobile phone ownership across Sub-Saharan Africa. By 2025, 50% of the population of Sub-Saharan Africa is predicted to have a mobile service subscription, or 615 million individuals. Many young people in Africa will need to consider innovative options. One such innovation is the free online e-learning platform Trace Academia! The well-known Afro-Urban music platform Trace has partnered with top companies to form a coalition and launched the Trace Academia mobile app in April 2022, giving many African youth the chance to succeed in an increasingly digital world. This will help address the issue of youth unemployment on a global scale. With its selection of digital certifications, innovations like the Trace Academia App can reach individuals wherever they are. Anyone with a smartphone may use the app to sign up for free courses likeGrow With Google’s sponsored Digital Marketing, which teaches African youngsters how to utilise the internet to the fullest for their enterprises, professions, or personal life. Users have the opportunity to learn how to master Google Ads and Analytics as part of the digital marketing course. The integrated ecosystem that Trace Academia and its partners have created will support its registered users by upskilling them and tackling the bold but courageous challenge of eliminating youth unemployment in Sub-Saharan Africa. Bringing practical skills development to young Africans at no cost to them. The powers of artificial intelligence and e-learning platforms, which are mutually reliant, are propelling the Fourth Industrial Revolution (4RI), which is bringing about enormous change. Trace Academia wants to make sure that young people are not left behind and are given the chance to learn on their smartphones at their own pace, wherever they are. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-02-28-tackling-youth-unemployment-through-education-and-skills-development/
- LEARNERSHIPS CAN BE A BUSINESS HACK FOR COMPANIES IN SOUTH AFRICA - IF THEY DO IT RIGHT
Daniel Orelowitz | 28 February 2023 Despite being Africa’s most industrialised nation, South Africa has one of the highest unemployment rates in the world and is currently struggling with low GDP growth in the thick of global market uncertainty. Economic recovery and growth are desperately needed, but this requires job creation and skills development to meet our country's current and future needs. One of the most effective ways to achieve skills development and job creation is through learnerships. An integrated skills development intervention, learnerships are aimed at promoting growth in employment and facilitating capacity building across sectors to address scarce and critical skills shortages. Learnerships are attractive for businesses since a Broad-Based Black Economic Empowerment (B-BBEE) score and tax benefits are available, however, managing these programmes can be a massive undertaking. Here, it is advisable for companies to partner with an accredited training provider to sidestep the system while gaining all the B-BBEE and tax benefits with none of the associated administrative and compliance burdens. In short, outsourcing their learnership programmes is the business hack every company needs to embrace in 2023. What is the big deal about learnerships? Currently managed by the Sector Education and Training Authorities (SETAs), learnerships are directly related to particular occupations and roles. They provide a pathway that leads individuals through to accredited National Qualifications Framework (NQF) qualifications. Learnerships ensure that more people are trained for a specific working environment, and businesses benefit from having a more skilled and experienced workforce. Through such skills development programmes, learners are now able to further their education while employees contribute to the establishment of a pool of skilled labour that can either be absorbed permanently into their organisations or redirected to be of benefit elsewhere in the industry. In a format that combines structured learning with hands-on work experience, learnerships are key to ensuring that individuals are equipped with the theoretical knowledge necessary to work in their field and the practical know-how necessary to secure a job in that field. As attractive as the business benefits of learnerships may be, companies generally have to source eligible candidates and have them vetted and onboarded, all of which direct time and resources from other core functions of the organisation. Developing essential skills An experienced training provider can step in here, and take on the recruitment, enrolment, and management of the right candidates for the company’s learnerships. As training and employee development specialists, it is their core business to help their clients align with the requirements of learnership programmes, such as the Youth Employment Service (YES) programme. This learnership programme provides the company with exceptional B-BBEE benefits, while greatly assisting to close the skills gap in the youth market. An enterprise can participate in facilitating 12-month work experience programmes for unemployed youth by either: Sponsoring and hosting youth within their business Sponsoring placements elsewhere within an existing SME/supply chain Providing hosting to the benefit of a new SME. How do learnerships benefit employers? From B-BBEE scores to tax incentives, there are several noticeable benefits when implementing learnerships in the business: Contributing to skills development, job creation and economic growth, while boosting the company’s productivity and adding to its value through the employment of skilled, knowledgeable, competent employees. Establishing a pool of properly-trained, experienced employees with critical skills to draw from gives the business a clear competitive edge in the industry. Being committed to skills development positively impacts the company’s B-BBEE status, improving employment equity targets by enabling previously disadvantaged employees or unemployed individuals to upskill themselves and earn qualifications. There are Learnership Tax Incentives that allow employers to claim up to R120 000 per individual that completes their qualification, along with monthly Employment Tax Incentives (ETI) for every employee hired between the ages of 18 and 29. An all-round win-win Between recruiting candidates, handling all aspects of their HR onboarding, and payroll, and overseeing their learnership progress and assessments, there can be a lot for businesses to come to grips with. Partnering with a training provider that specialises in youth development is the smartest business hack that ensures everyone benefits - the company gains the full tax and employment equity advantages of learnerships, while candidates achieve their full potential through the successful completion of such programmes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/learnerships-can-be-a-business-hack-for-companies-in-south-africa---if-they-do-it-right-2023-02-28
- TIPS FOR MANUFACTURERS – SUCCESSFULLY PLAN FOR SUPPLY CHAIN CHALLENGES, SUPPORT COMPLEX OPERATIONS
IT News Africa | 28 February 2023 Change is the only constant in manufacturing today. Disruption, innovation, and continual refinement of shopfloor processes are driving factors in today’s complex market landscape. Whether an organisation makes commercial aircraft, office furniture, or industrial valves, they must stay on top of trends and adapt. New strategies and actions must sync – and align with customer expectations. It’s no easy task. “There’s some good news, though. The right manufacturing ERP software helps. Modern, composable enterprise resource planning (ERP) solutions with last-mile functionality built in provide the capabilities businesses need to address today’s most pressing challenges. By modernising manufacturing ERP, it’s easier to update the entire organisation, from new product introductions to operational efficiency. So, one step leads to many benefits,” says Paul Bouchier, Sales Director at iOCO, within iOCO Software Distribution, an Infor Gold Partner. Bouchier offers three tips to help enterprises adapt to changing demands. Improve supply chain agility. The disrupted supply chain has been a major headache for most manufacturers. That’s an understatement for many. Trade tariffs, bottlenecks and delays, the war in the Ukraine, chip shortages, unavailability of cargo containers, and high costs of fuel have turned procurement into a game of chance – with unfavorable odds. Modern software, with artificial intelligence (AI)-driven analytics and full supply chain visibility, can provide relief. Smart solutions drive smart decisions. Anticipate risks, make strategic choices, and forge new partnerships. Data insights help plan for contingencies and manage expectations, with visibility into the stock needed and when it’s expected to arrive. Manage shop floor complexity. Manufacturers must meet the demands of customers for highly personalised products, while controlling costs and improving margins. In many industries, traditional mass production is being replaced by mixed mode manufacturing with highly configured products, engineer-to-order, and assemble-on-demand operations becoming the new normal. Modern manufacturing software is essential for the transformation. It helps streamline processes, close gaps and keep workflows synchronised. The latest Industry 4.0 technologies provide critical tools, like smart sensors, for tracking machine performance, output, quality control, and optimising resources. Tools also help manage the existing workforce which must work smarter, not harder, to get the job done. Data insights help keep the shop floor running with orchestrated precision, because every part, every machine, and every work cycle matters. Leverage data insights. While answering consumer demand for new and personalised products, manufacturers must simultaneously strive to improve productivity, boost efficiency, automate processes, and strategically plan the use of resources. There are tough decisions to make. Modern ERP software helps capture, track, and leverage data throughout the organisation. Using facts, not feelings or hunches, manufacturers can better align with customers, launch new product introductions, design and source appropriate parts and components, and track all costs. New strategies for remaining relevant and growing the business can now be planned and executed with a balance of long-term goals and short-term capacity and cash flow restraints. Data insights are key. Seek the right tools to improve operational efficiency and foster innovation. “To avoid threats to market share and profitability, manufacturers must stay alert and on top of the ever-evolving trends. They must adopt modern, data-driven processes and turn to technology to help them introduce new products. When inefficiencies are eliminated, teams have more time for innovation,” concludes Bouchier. “Technology, such as modern cloud-deployed ERP solutions, help organisations quickly adapt to change, including starting new branches or divisions. This agility means you the business can focus on green initiatives, offering new services or managing logistics. Even creating hubs closer to end customers becomes easier. Manufacturing is being redefined, and software plays a major role in supporting the new era – from go-to-market strategies to supply chain planning and shop floor operations.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itnewsafrica.com/2023/02/tips-for-manufacturers-successfully-plan-for-supply-chain-challenges-support-complex-operations/
- URA COMPLETES ACQUISITION TO TAKE OWNERSHIP OF EXTENSIVE GRAVELOTTE MINE
Donna Slater | 27 February 2023 LSE-listed diversified explorer URA has completed the acquisition of 100% of the issued shares in Gem Venus Holdings – the owner of the majority interest in the Gravelotte emerald mine, in South Africa’s Limpopo province, from ASX-listed Magnum Mining and Exploration. Through the acquisition, URA has acquired a licence giving the rights to exploit the historical Gravelotte mine, which is also known as the Cobra emerald mine. According to URA, Gravelotte was historically the largest emerald mine in the world and was operational from 1929 to 2002, with total recorded historical emerald production totalling nearly 113-million carats. Following the completion of the acquisition, URA will issue Magnum with four-million ordinary shares, credited as fully paid, equal to the consideration owed on completion of £100 000 and calculated using an average mid-market closing price of 2.5p. URA chairperson Ed Nealon says the vast majority of the purchase price is to be paid from future emerald production and sales. An additional consideration of A$200 000 (about £123 000) in cash is due for each tranche of five-million carats worth of emeralds produced by Gravelotte, up to a maximum aggregate amount of A$2-million (about £1.23-million) as a production royalty. In 2022, URA established an independent maiden mineral resource estimate of 29-million carats of contained emerald in two out of the openpittable deposits on the Gravelotte property. Twelve additional exploration targets, totalling between 168-million and 344-million carats, were also established. Of the total 29-million carats of contained emerald, the Cobra pit holds 1.2-million tonnes grading 6.4 g/t for 19.4-million carats of contained emerald, while the nearby Discovery deposit holds 700 000 t grading 5.7 g/t for 9.6-million carats of contained emerald. URA says the Joint Ore Reserves Committee- (Jorc-) compliant resource at Gravelotte highlights the significant remaining resource and potential of the mine, paving the way to committing to the restart of operations by URA. URA notes that mine, processing plant and infrastructure upgrades are currently in progress, with the goal of restarting production this year. While URA will need to acquire a modest amount of new mining and processing equipment (using optical sorters to replace the labour-intensive hand sorting of the past), the company expects to be able to bring Gravelotte quickly back into production. “During 2022, we made significant progress towards the restart of mining operations. URA established the first-ever code-compliant independent resource for the Gravelotte project by commissioning an initial Jorc-compliant resource, which identified 29-million carats of contained emeralds. This resource represents a life-of-mine of over 10 years at historical peak production rates. “We are now preparing for the restart of mining and processing operations and believe that this can be achieved by a modest capital investment,” he says. Emeralds were discovered in the Gravelotte area in 1927 and, since then, several companies have mined and explored the area for emeralds. Historical records indicate that during the 1960s, the Gravelotte project was the largest emerald mine in the world, employing over 400 sorters. From 1929 to 2002, the total recorded emerald production from Gravelotte and the surrounding area was nearly 113-million carats, of which Gravelotte was substantially the largest contributor. The Cobra openpit located on the Gravelotte mine property is historically the biggest single emerald-producing openpit in the region, and is reported to have produced 21-million carats in the mid-1960s. Gem Venus owns 74% of the issued share capital of Adit Mining and Venus Emerald, which holds all the mineral rights in respect of emerald mining and extraction at Gravelotte. The remaining 26% of the issued share capital of Adit and Venus is held by a black economic empowerment-compliant structure predominantly consisting of local employees and the local community. These mineral rights are held through a long-term mining lease agreement providing all surface access and rights required for ongoing exploration and development of Gravelotte, including the use of management housing, offices, staff accommodation, workshops and other existing mine infrastructure on site. URA’s overall immediate objective is to complete preparatory work and bring Gravelotte back into commercial production. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.miningweekly.com/article/ura-completes-acquisition-to-take-ownership-of-extensive-gravelotte-mine-2023-02-27
- PREMIER TO PUSH FOR TARGETED, TRANSPARENT ENERGY STATE OF DISASTER AT PCC
Western Cape Government | 27 February 2023 Media release: Premier to push for targeted, transparent Energy State of Disaster at PCC with clear accountability. Premier Alan Winde will be part of the Special President’s Coordinating Council (PCC) meeting this evening where the proposed regulations around the National State of Disaster on the energy crisis are expected to be discussed. The National State of Disaster was declared 17 days ago. “President Cyril Ramaphosa should have called a PCC much earlier. Many South Africans are understandably anxious about the regulations and desperately need clarity on this issue,” said the Premier ahead of the PCC gathering. “At the meeting, I will push for clear, decisive action that does not needlessly and arbitrarily infringe on citizens’ rights. The blackouts catastrophe itself is already an affront to residents’ rights. I will also make the point that we cannot have the Minister of Cooperative Governance and Traditional Affairs overseeing this proposed state of disaster. Her arbitrary and reckless reign over South Africa during the COVID-19 pandemic was disastrous. South Africans have lost their trust in her. The only regulations that should be contemplated must be targeted at fixing the problem, which are the daily blackouts and the collapse of Eskom.” The Premier wants to see the following measures announced at the PCC: The streamlining of supply chain management processes for municipal and provincial own generation through shortening timelines, relaxing requirements around preferential procurement, and allowing for processes such as limited bids; The Department of Trade, Industry and Competition must relax regulations on the importing of energy-efficient products, including batteries, inverters, and solar panels, to allow for more open market competition until the energy crisis ends; Further reduce and streamline Environmental Impact Assessment processes for new generation capacity at local and provincial levels outside of the Renewable Independent Power Producer Programme (REIPPP) process; Increased security measures to safeguard energy infrastructure. In addition to these proposals, but outside of the State of Disaster, Premier Winde and the Western Cape Government have also called for: The tax break incentive for SMMEs to invest in solar to be increased from 125% to 140%; Allow households’ tax rebates on a wider basket of energy-producing and saving products, not just for solar. This would include LED bulbs, ripple control geysers, and LPG gas for stoves. Increase the tax break incentive for households from R15 000 to R4 0000; declare diesel a strategic resource. This would ensure PetroSA sells it to Eskom at cost price to ensure the adequate resourcing of open cycle gas turbines to offset load shedding; and reduce the levy or provide tax breaks on diesel used to produce electricity “I will push hard for these proposals,” Premier Winde stressed. “South Africans deserve transparency. The President must not only offer words of assurance that this emergency intervention will not descend into another corruption fiasco like that which marred the COVID-19 State of Disaster, but he must also put in place steps to ensure greater transparency and accountability. This State of Disaster must be managed in the interests of all South Africans and the economy. The Western Cape Government will not tolerate sweeping, draconian measures unrelated to the crisis being considered,” he concluded. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.westerncape.gov.za/news/premier-push-targeted-transparent-energy-state-disaster-pcc
- COURT RULING ON SAPS CASE AN EXPENSIVE LESSON FOR EMPLOYERS WHO IGNORE WORKPLACE DISCRIMINATION
Siphile Hlwatika | 26 February 2023 The landmark labour court judgment is the first to rule that racial, ethnic and social origin harassment constitute unfair discrimination under the Employment Equity Act’s code of good practice. This distinguishes it from its predecessor, which recognised only sexual harassment. Arecent judgment by the labour court has demonstrated the consequences of an employer’s failure to meet its obligations in cases involving unfair discrimination allegations. The Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace (the code) recognises different forms of harassment as unfair discrimination in terms of the Employment Equity Act, 1998. The code outlines employers’ obligations in cases involving harassment allegations. The Labour Court recently considered the code in Solidarity obo Oosthuizen v South African Police Service, where it had to consider whether the South African Police Service (SAPS) was vicariously liable for the racial abuse Lieutenant-Colonel Annemarie Oosthuizen suffered at the hands of her direct subordinates, warrant officers Adam Tikoe and Seiso Mphana. Tikoe and Mphana had accused Oosthuizen of referring to them with a racial slur after she had taken corrective action against them relating to their absenteeism. Oosthuizen reported the incident to the station commander, who ordered an investigation and recommended the institution of disciplinary action against the warrant officers. The station commander also requested that the officers be transferred pending the investigations, but this did not happen. Both sides lodged grievances against each other, and an investigation was launched by the SAPS to look into the matter. Following investigations by the SAPS officials, disciplinary action was recommended against both warrant officers. A few days later, Oosthuizen was approached by an intern who informed her that she had overheard the warrant officers conspiring to falsely accuse her of racial discrimination. Oosthuizen lodged a grievance, requesting that disciplinary proceedings be instituted against the warrant officers. The SAPS did not institute any disciplinary action against them, but instead transferred Oosthuizen pending the finalisation of the disciplinary action against her. The investigation report issued by a Captain Morris concluded that the case against the warrant officers was serious and that they be charged accordingly. The recommendation was not implemented by the SAPS provincial commissioner. Oosthuizen later received a notice that a decision had been taken to institute disciplinary action against her for using a racial slur. She was, however, acquitted on all charges during the disciplinary hearing. A year after the incident, the warrant officers were charged. Mphana was found not guilty on the basis that there were no statements that corroborated and proved that he had committed the misconduct. Tikoe, on the other hand, pleaded guilty and was given a sanction of a written warning and one day’s leave without pay. Oosthuizen was never called as a witness during the two warrant officers’ disciplinary proceedings. It was further brought to the court’s attention that the warrant officers had been found guilty in the North West regional court of, among other offences, assault and crimen injuria. They were charged internally and dismissed. Labour Court’s decision The court had to decide: whether the conduct of the warrant officers in harassing and falsely accusing Oosthuizen of racism constituted unfair discrimination; whether the SAPS had failed to act in accordance with section 60 of the Employment Equity Act and was vicariously liable; and What relief should be granted in the event that the SAPS was found to have contravened the act. The court noted that the investigation reports that had recommended disciplinary action against the officers were initially abandoned by the SAPS. The court found that the SAPS’s insistence that it had taken all the necessary steps to address the racial harassment was not backed up by evidence. What had transpired was that the SAPS had protected the perpetrators of racial harassment. Importantly, the court found that the SAPS was oblivious to its statutory duties in terms of section 60 of the Employment Equity Act. In this regard, the court found that the SAPS: failed to consult all relevant parties; did not take the necessary steps to eliminate the racial harassment, but acted in a partial manner by protecting the perpetrators at the expense of the victim; and did not do all that was reasonably practicable to ensure that the warrant officers would not racially harass Oosthuizen. As a result, the court found that Oosthuizen was entitled to compensation for the negative impact on her dignity, especially since the SAPS manipulated the warrant officers’ disciplinary hearing and outcome. The SAPS was ordered to pay Oosthuizen R300,000 and tender a written apology to her for the indignity she had suffered. The SAPS was further ordered to pay costs. Broadened scope This decision is significant as it is the first to consider that the code recognises that racial, ethnic and social origin harassment constitute unfair discrimination under the Employment Equity Act. This distinguishes it from its predecessor, the 2005 Code, which only recognised sexual harassment. Employers should ensure that they understand the broadened scope and application of the code to minimise the risk of adverse findings of vicarious liability in terms of section 60 of the Employment Equity Act. It is also important for employers to ensure that they have a policy dealing with harassment in the workplace. Courts will likely consider this when determining whether an employer took the necessary steps to eliminate harassment in the workplace. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-02-26-labour-court-ruling-on-saps-case-an-expensive-lesson-for-employers-who-ignore-workplace-discrimination/
- SANRAL TO UNLOCK PROJECTS WORTH R17 BILLION IN ETHEKWINI
Rising Sun Online | 27 February 2023 The upgrade of the N2 will focus on a 55km length, from Lovu River, on the South Coast, to Umdloti, on the North Coast. These upgrades will include the widening of the N2 carriageways, with four or five lanes in each direction, and the reconfiguration of most major interchanges along these route sections. The upgrades to the National Route 2 (N2) in the eThekwini Metropolitan Municipality will not only alleviate traffic congestion but will also bring R17 billion in investment to local small, medium, and micro enterprises (SMMEs), as well as people living with disabilities, the South African National Roads Agency SOC Limited (SANRAL) has said. SANRAL recently hosted an information session for people living with disabilities in the eThekwini Metropolitan Municipality. This engagement is in line with SANRAL’s fourth pillar of stakeholder relations, which requires stakeholders to be informed about all project-related activities and opportunities on SANRAL projects. “The engagement was aiming to empower emerging SMMEs with knowledge regarding opportunities available during current and upcoming SANRAL projects on the N2. People living with disabilities are guaranteed a minimum of one percent of the contract value,” said Trevor Zumani, SANRAL’s Eastern region project manager. The upgrade of the N2 will focus on a 55km length, from Lovu River, on the South Coast, to Umdloti, on the North Coast. These upgrades will include the widening of the N2 carriageways, with four or five lanes in each direction, and the reconfiguration of most major interchanges along these route sections. This information session engagement is built on several engagements that SANRAL has undertaken. SANRAL is prioritising the engagement of its stakeholders, where local SMMEs and communities can access information that will enable them to position their businesses better and access the opportunities available in the SANRAL road network. “While SANRAL maintains national roads, we make sure that the members of the community are given business opportunities to be part of the road infrastructure development and benefit from it. Over and above the main contractors, we also ensure that subcontractors are selected from the local area,” said Zumani. The SMME pre-tender training service provider Imbawula Civils was also introduced to encourage local business owners to participate in the skills development training. The purpose of this training project is to create ongoing skills development, educational opportunities, and continuous professional and technical development for the SMMEs in construction to build and maintain the capacity to undertake major projects. “A lot of SMMEs need training in running and managing their businesses. SANRAL will offer training from filling out a tender document to managing their finances once the business is up and running. On completion of the 15-day training, SMMEs can effectively and successfully bid for subcontracting opportunities on the SANRAL construction projects,” said Eastern region transformation officer, James Takalo. SANRAL is willing to assist SMMEs to succeed in the construction industry as part of the road agency’s Horizon 2030 strategy. Cllr Sbusiso Lushaba, representing the eThekwini Speaker’s office, welcomed SANRAL’s initiative to engage stakeholders. He noted that this initiative presents an opportunity for stakeholders within the local municipality to be well-informed about all SANRAL’s current and future projects. It also assists SMMEs in preparing themselves for tendering opportunities. “We aim to ensure that the previously marginalised sectors of our economy including people with disabilities play a meaningful role and succeed in a construction industry that has largely been non-transformative. We will continue to do this guided by our transformation policy and our Horizon 2030 strategy,” added Takalo. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://risingsunchatsworth.co.za/206802/sanral-to-unlock-projects-worth-r17-billion-in-ethekwini/