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Taking COSATU Today Forward Special Bulletin
‘Whoever sides with the revolutionary people in deed as well as in word is a revolutionary in the full sense’-Maoo

Our side of the story
19 May 2026
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Contents
Workers’ Parliament-Back2Basics #ClassWar
Department of Employment and Labour commends Hawks for arrests In R27 Million TERS Fraud Scheme
18 May 2026
The Department of Employment and Labour has welcomed the arrest of three suspects in Mpumalanga in connection with an alleged R27 million COVID-19 Temporary Employer-Employee Relief Scheme (TERS) fraud involving more than 700 ghost employees.
The arrests, carried out by the Directorate for Priority Crime Investigation (Hawks), represent a significant step forward in protecting public funds intended to provide relief to workers affected by the COVID-19 pandemic.
The suspects, including a construction company director, his spouse, and a relative, allegedly misused the TERS system by claiming benefits for fictitious employees. This resulted in an estimated loss of over R26.9 million to the Unemployment Insurance Fund, which administers TERS on behalf of the Department.
The case follows a joint investigation conducted by the Hawks' Serious Corruption Investigation unit, the Unemployment Insurance Fund (UIF), the Special Investigating Unit (SIU), and the National Prosecuting Authority's Asset Forfeiture Unit.
Acting Director-General of Employment and Labour, Ms Jacky Molisane said; “The Department of Employment and Labour commends the Hawks and all collaborating law enforcement agencies for their vigilance, professionalism, and determination in uncovering this extensive fraud scheme. This operation sends a clear and firm message that abuse of public resources will not go unpunished."
“The Temporary Employer-Employee Relief Scheme was established to support workers and employers during one of the most difficult periods in our country's history. Any attempt to exploit this intervention undermines its purpose and deprives deserving beneficiaries of critical support."
“We are particularly encouraged by the strong inter-agency collaboration demonstrated in this case. Partnerships between law enforcement and institutions remain essential in detecting, preventing, and prosecuting fraud, as well as in recovering stolen funds and assets."
“The Department will continue to strengthen oversight mechanisms and work closely with its entities and law enforcement partners to safeguard public funds. We remain resolute in our zero-tolerance approach to fraud and corruption," concluded Molisane.
The Department of Employment and Labour reiterates its commitment to transparency, accountability, and the protection of social security funds. Continuous improvements to systems, monitoring processes, and compliance measures remain a priority to prevent future abuses.
Members of the public are encouraged to report suspected fraud or corruption involving government relief programmes.
For media inquiries, please contact:
Teboho Thejane
Departmental Spokesperson
082 697 0694/ teboho....@labour.gov.za
-ENDS-
Issued by: Department of Employment and Labour
South Africa #ClassSolidarity
COSATU is deeply concerned by the dangers posed by the Constitutional Court challenge to the Public Procurement Act
Matthew Parks, COSATU Parliamentary Coordinator, 19 May 2026
The Congress of South African Trade Unions (COSATU) is deeply concerned by the dangers posed by the Constitutional Court challenge to the Public Procurement Act by the Western Cape Provincial Government and the City of Cape Town.
We are not convinced by their arguments presented to the Constitutional Court and fear they are putting the cart on top of the horse in this instance. We believe their concerns would best be addressed by engaging Treasury on the Regulations. The risks of their court action would be to allow the wild west that is public procurement to continue.
COSATU supports the Public Procurement Act, in particular its objectives to boost emerging SMMEs, historically disadvantaged communities and local businesses. We believe the Act drafted by government led by the African National Congress will be a critical weapon in the war against state capture and corruption that has become a cancer across the state, especially in State-Owned Enterprises (SOEs) and municipalities.
Workers have paid a horrific price with the explosion of state capture and corruption that has become the norm across the state. At its heart are the porous public procurement systems. Key targets as highlighted in gory details by the Zondo Commission into State Capture and Corruption have been SOEs, in particular Eskom, Transnet, Metro Rail and countless municipalities and departments.
It defies logic that in the 21st century where communications have become digitised, that many municipalities opt for manual written quotes. Many state entities have shown a dogmatic resistance to any sense of oversight and transparency, let alone universal systems. The reason being that corruption thrives best under chaos and darkness. Moves towards transparency and accountability are a direct threat to that.
The Western Cape Provincial Government and the City of Cape Town claim an absence of public participation in the drafting of the Act as a basis for their court challenge. Yet this Act went through extensive engagements and redrafting during three years of deliberations with labour, business and members of the public at Nedlac and later in both Houses of Parliament. The nation’s leading procurement specialists from various universities as well as international experts were brought into this process as part of enriching the Act.
Whilst COSATU has often butted heads with Treasury, we appreciate how open and inclusive they were in the drafting of this important Act.
Parliament’s Finance Committees both went the extra mile in providing space for public participation and actively included proposals from COSATU and other stakeholders.
The Province and City allege that the Act amounts to an undue interference in provincial and local government’s ability to procure. Again, concerns with regards to agility can and are best dealt with through Regulations. Different organs of state will still determine their procurement policies.
All that will be expected is for the state to use a single online and transparent public procurement system, as is already done with public service institutions, including provincial departments.
Equally they will be expected to, where possible, support emerging SMMEs, historically disadvantaged communities and local businesses. This is fundamental if we are to nurture and sustain local businesses and jobs which are under dire threat from cheap imports, and to give space for SMMEs to emerge and grow.
Why the City is rushing to court claiming the Act will be a hindrance to service delivery and emergency procurement is baffling as the Act, much to COSATU’s disappointment, actually provides for significant exemptions and where regulations and circulars are issued by national and provincial treasuries, these will not be binding upon municipalities or their entities. How the City and Province claim that they will be straight jacketed makes little sense.
The ability of Treasury’s Chief Procurement Office to oversee, and where state institutions fall foul of the law, to act and hold them accountable is crucial if the state is to turn the tide against endemic public procurement corruption, save scarce public resources, support emerging SMMEs and protect badly needed local jobs.
The Province and the City make the mistake of assuming that whilst they have strong systems in place, that this is replicated across other provinces and municipalities.
It is not, and in fact it is a horror story and hence the need for a drastic overhaul for the entry point for state capture and corruption; our weak public procurement systems.
Issued by COSATU
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SACP conveys its message of heartfelt condolences to the family of Comrade Kaobitsa Abel “Bushy” Maape
Mbulelo Mandlana, SACP Head of Media, Communications and Information, 19 May 2026
The South African Communist Party (SACP) conveys its messages of heartfelt condolences to the family of former North West Province premier, Comrade Kaobitsa Abel “Bushy” Maape. The SACP also sends its message of condolences to the liberation movement and the people of South Africa for the loss.
Comrade Bushy joined the struggle against the apartheid system at a very young age and joined the joint SACP-ANC military wing, uMkhonto we Sizwe. In 1986, the apartheid regime arrested him for his political activities and jailed him on the notorious Robben Island. Understanding that the struggle continued even behind prison walls, Comrade Bushy used the time to further his studies. While in prison, he studied and achieved degrees in psychology and economics at the University of South Africa. He later earned an honours degree in development studies and economics at the University of the Western Cape.
Following his release from prison, he continued contributing to the struggle by focusing, among other aspects, on the political education of young activists and also served in various capacities before his tenure as North West premier from 2021 to 2024. Known for his wholehearted dedication to the liberation of the people, as well as his humility, Comrade Bushy’s legacy will continue to inspire the people of South Africa to continue deepening the national democratic revolution.
In tribute to Comrade Kaobitsa Abel “Bushy” Maape, the SACP calls upon the working class to unite and advance the national democratic revolution towards total implementation of the Freedom Charter and social emancipation.
ISSUED BY THE SOUTH AFRICAN COMMUNIST PARTY,
FOUNDED IN 1921 AS THE COMMUNIST PARTY OF SOUTH AFRICA.
Media, Communications & Information Department | MCID
International-Solidarity
IndustriALL withdraws from human rights agreement with Mercedes-Benz
19 May, 2026
IndustriALL Global Union has withdrawn from its Principles of Social Responsibility and Human Rights agreement with Mercedes-Benz Group, after the company repeatedly violated the agreement's core commitments and refused all attempts to find a constructive way forward.
The decision follows years of documented anti-union conduct by Mercedes-Benz at its plant in Tuscaloosa, Alabama, confirmed by the US National Labor Relations Board (NLRB), and the company’s failure to address the violations despite repeated opportunities to do so.
In a letter sent to Mercedes-Benz Group CEO Ola Källenius on 11 May 2026, IndustriALL general secretary Atle Høie set out four grounds for withdrawal: the company’s failure to remain neutral during union organizing at Tuscaloosa, its refusal to engage constructively with IndustriALL on solutions, its 2025 unilateral update of the agreement without resolving the Alabama situation, and its continued use of law firms whose stated business is opposing unionisation, including the firm managing MB’s own whistleblower channel in the US.
“Mercedes-Benz has broken every rule in the book. They committed to respecting the right to organize, the right to collective bargaining and neutrality. At the same time, at their plant in Alabama, they paid more than US$650,000 to bring union-busting firms onto their own site to pressure workers into voting against a union. That is not neutrality. That is not even close to neutrality. When Mercedes tells the outside world that it is neutral, it is not telling the truth. The workers in Alabama should continue their fight for a collective agreement,”
said Høie.
A commitment made and broken
The Principles of Social Responsibility and Human Rights were signed by Mercedes-Benz and IndustriALL on 1 September 2021. The agreement stated that MB’s labour standards were “binding around the world for all managers and employees” and that “in the event of organizing campaigns, the company and its executives shall remain neutral.”
In January 2024, workers at the Tuscaloosa plant launched a campaign to join IndustriALL affiliate the United Auto Workers (UAW). What followed was one of the most aggressive union-busting campaigns in recent US history.
Mercedes-Benz hired at least five anti-union consulting firms, spending a documented US$659,116 to oppose the workers’ organizing drive. The most notorious was Road Warrior Productions, which advertises its expertise in getting workers “to vote non-union.” The company held mandatory captive-audience meetings, threatened workers with plant closure and loss of benefits if they voted for the union, and brought a minister onto the shop floor three days before the election to urge Black workers, who make up roughly 60 per cent of the workforce, to vote no.
Workers were told unionizing would be pointless. A 25-year employee with a spotless record was disciplined for telling colleagues he had union cards. The leading union organizer, Jeremy Kimbrell, had worked at the plant for 26 years. He was fired in February 2025 on what the UAW describes as a fabricated pretext.
The NLRB investigated and found merit in multiple charges that Mercedes had violated US labour law. In March 2026, Mercedes settled those charges. As part of the settlement, an official notice, signed by an HR manager and bearing the seal of the US government, was posted on the walls of the Tuscaloosa plant. It reads: “WE WILL NOT threaten you with the closure and/or relocation of the facility to a non-union location, like Mexico, or anywhere else, if you choose to be represented by a union.”
Mercedes did not admit wrongdoing as part of the settlement.
Refusal to engage
Despite the NLRB findings, Mercedes refused to engage with IndustriALL on how to move forward. The company cited ongoing legal proceedings as justification for declining all attempts at dialogue, what Atle Høie’s letter describes as a “flimsy excuse.”
In 2025, Mercedes unilaterally updated the Principles of Social Responsibility and Human Rights without addressing or acknowledging the Alabama situation. IndustriALL considered this an attempt to reset the agreement’s credibility without earning it.
“You rejected all our attempts to jointly elaborate constructive solutions. You updated the Principles of Social Responsibility and Human Rights in 2025 without clarifying the incidents in the US, making it impossible for IndustriALL Global Union to continue as a signatory to the agreement,”
Atle Høie wrote to Ola Källenius.
The consultants hired by Mercedes compound the problem. The firms engaged to fight the Alabama organizing drive openly advertise their union-avoidance services. Their own promotional materials describe “defeating a union” as “gratifying,” offer to help employers maintain “union-free workplaces,” and promise to get workers “to vote non-union.” Several of these firms have documented records of unlawful conduct in previous campaigns. US federal labour judges found their principals had violated workers’ rights, before Mercedes hired them. These records were publicly available before Mercedes engaged them.
Under Mercedes’ own Integrity Code, the company is required to ensure its business partners comply with its principles. It did not.
The hearing
On 26 May 2026, the NLRB opens a formal hearing in Birmingham, Alabama, on UAW objections to the conduct of the May 2024 election. A regional director has found that five of those objections raise substantial and material issues of fact that could be grounds for overturning the election result. The hearing will examine, among other things, Mercedes’ mandatory captive-audience meetings and its discriminatory application of workplace policies against union supporters. It will also look at whether the company compelled workers on sick leave to attend and vote. The central question is whether this conduct prevented workers from making a free choice. In 2024, workers voted 2,642 against the union and 2,045 in favour, a margin of 597 votes out of approximately 5,075 eligible voters.
A different road is possible
IndustriALL has not closed the door. Should Mercedes change course, the agreement can be renewed.
The example of Volkswagen demonstrates that a different approach is possible. In Chattanooga, Tennessee, VW adopted genuine neutrality during the UAW’s 2024 organizing campaign. Workers voted by more than two to one to join the union. VW and the UAW subsequently reached a collective bargaining agreement. That is what the Mercedes Principles were supposed to guarantee for workers in Alabama.
“We once again call on Mercedes-Benz to cease its anti-union behaviour in the US and urge you not to cede the field to law firms and other opinion formers,” Atle Høie wrote to Ola Källenius.
______________________________
Norman Mampane (Shopsteward Editor)
Congress of South African Trade Unions
110 Jorissen Cnr Simmonds Street, Braamfontein, 2017
P.O.Box 1019, Johannesburg, 2000, South Africa
Tel: +27 11 339-4911 Direct line: 010 219-1348