COSATU Media Monitor, 3 April 2012

A union will have to conduct a ballot before commencing on strike action under one of the proposed amendments of the Labour Relations Act (LRA), according to labour law experts.

The amendment also removes protection against civil liability for damages resulting from any conduct in breach of picketing rules or picketing agreements.

Fiona Leppan, a director in employment practice at Cliffe Dekker Hofmeyr, said the pre-balloting requirement had been introduced in the proposed amendment of section 64.

She said balloting requirements were contained in the repealed LRA of 1956, but these were not retained in the current legislation.

Leppan said: “In order for a strike or lock-out to be protected, the trade union or employers’ organisation must conduct a ballot of its members in good standing, who are entitled to strike or lock-out in respect of the issue in dispute and a majority of the members of that trade union or employers’ organisation who voted in that ballot, must have voted in favour of the industrial action.”

This is similar to the pre-ballot requirements that were introduced into Britain’s labour law regime in 1984, through the Employment Act.

Alan Manning, a labour law commentator in Britain, said at the time that the legislation was undoubtedly extremely popular. “In opinion polls, trade union reform is consistently rated as the achievement of Mrs (Margaret) Thatcher (then prime minister) that has most support. This is not surprising as the policy has been presented as increasing internal union democracy and the accountability of union leaders to their membership.”

Under this legislation, a trade union has no legal immunity for industrial action unless it has first obtained a majority in favour of the action in a secret ballot of workers concerned.

However, Leppan said she was mindful of the problems associated with ballots.

“Ballots are by their very nature extraordinarily difficult to conduct. We are talking of the force of numbers here. They are not easy to manage,” Leppan added.

Leppan said the proposed amendment aimed to prevent industrial action from taking place in circumstances where it did not enjoy majority support. The purpose is to quell violence against non-strikers.

She said: “At present, minority members of a trade union or an employers’ organisation are able to stage industrial action regardless of the will of the majority, by simply complying with the requirements of the current section 64 of the LRA.”

Andrew Levy, a labour analyst, said that the proposed amendment was a step in the right direction.

He said: “It is welcome and it shows there has been intimidation in the past. It will unquestionably reduce the number of strikes. But it is not clear in what form the ballot will take place. Unless it is secret, it is of limited usage. I hope the final draft will clarify that.”

Meanwhile, the Department of Labour has invited all stakeholders who have an interest in the LRA Bill and the Basic Conditions of Employment Amendment Bill to take part in public briefings that start tomorrow.

It said the purpose of the public briefings, which would be held countrywide, was to report back and inform the public about the bills.

1.2 Kruger Park strike still on

Sowetan, 2 April 2012

The workers went on strike at the beginning of February.

More than 200 workers are still on strike at the Kruger National Park, SA National Parks (SANParks) said on Monday.

SANParks spokesman Reynold Thakhuli said 60 workers had returned to work, but more than 200 workers, who had left their unions, were still striking.

The workers went on strike at the beginning of February.

“We urge them to come back to work as we still apply our policy of no work, no pay.”

The workers had abandoned their unions — the Health and Other Service Personnel Trade Union of SA (Hospersa) and the SA Commercial Catering and Allied Workers’ Union (Saccawu) — over pay disparities and other labour issues.

“We condemn the violence of workers, acts such as disturbing the peace, littering and asking Kruger Nationlal Park visitors for money.”

Thakhuli said the park had implemented a lock-out procedure.

Striking workers were not allowed at KNP facilities until they had resumed their duties.

“The KNP operations are not disrupted. We have rangers and volunteers who are ready to welcome visitors to KNP,” Thakhuli said.

He said all workers at the Mapungubwe National Park in Limpopo had returned to work after a six-week labour dispute.

1.3 SANParks locks out strikers

Victor Hlungwani, Sowetan, 3 April 2012

Workers at Kruger National Park say they are starving after several weeks of protesting over disparities in pay.

"Our lives have become a living hell because we depend on tourists to buy us food because the park has locked us out.

"We are forced to sleep here (the Phalaborwa Gate) because we fear being attacked by wild animals," said a striking ranger who refused to be named.

The workers abandoned their unions and went on strike at the beginning of February.

The workers, who claim they earn between R3500 and R4500 a month, are demanding R9000 across the board.

SANParks spokesman William Mabasa said the organisation could not meet the workers' demands.

"Workers who want to return to their jobs are welcome to do so," said Mabasa.

Sowetan has learnt that 248 out of the 361 field rangers were on strike.

These workers are part of about 2500 staffers whose job is to protect Kruger National Park's wildlife and maintain the ecology.

Members of the South African National Defence Force and South African Police Service have been called in to help guard the park's animals from poachers.

In 2011 alone, 448 rhinos were killed by poachers.

1.4 Modikwa strike stretches on

Dineo Faku, Business Report, 3 April 2012

Operations at Mpumalanga’s Modikwa platinum mine, a 50-50 joint venture between empowerment mining company African Rainbow Minerals (ARM) and Anglo American Platinum, remain at a standstill three weeks into a wage strike.

The wage strike is as a result of the National Union of Mineworkers’ (NUM) demand for a 12 percent wage increase, while Modikwa has offered a 9.5 percent raise to employees in the A band and 8.75 percent to those in the B band.

About 3 000 Modikwa workers are also demanding other employment benefits including a living out allowance, bonuses, housing and medical subsidies.

ARM spokesman Jongi Klaas said the company was working on finalising negotiations to end the strike.

However, Lesiba Seshoka, the union spokesman, said the strike would continue.

“As long as the company does not heed to our demands, we will continue striking.”

2. South Africa

2.1 Cosatu: Energy, petrol hikes a harsh blow

Business Report, 2 April 2012

The electricity and petrol hikes in April would be a harsh blow to the poor, Cosatu said on Monday.

“As might be expected, the poorest households, the least organised, worst resourced and most marginalised, who tend to vote for the ANC, bear a disproportionate burden,” said Congress of SA Trade Unions spokesman Patrick Craven.

He said people were already battling to afford electricity and were constantly subjected to cut-offs.

“Despite progress in the provision of electricity infrastructure, a significant part of the population, 25 percent of households, are still without electricity at all and 53 percent of these use firewood for cooking.”

Electricity is to increase by at least 16 percent in April, when the price of petrol will increase by 71 cents a litre in Gauteng.

Craven said even 25 percent of those with access to electricity used firewood for cooking, because of the cost.

“Cosatu has over and over again acknowledged and celebrated the tremendous strides made by the ANC government... 1/8but 3/8 the current rates of unemployment, poverty and inequalities, and the unequal levels of service delivery, in particular as they affect women and youth, are a ticking time bomb,” said Craven. - Sapa

2.2 Cost of living starting to bite

Ngwako Modjadji, Citizen, 3 April 2012

Economists yesterday warned that South Africans should brace themselves for hard times ahead.

On Sunday, electricity tariffs went up by 16% while an increase of more than 70cents in the fuel price will see petrol costing R11,94 a litre inland and R11,59 at the coast from midnight tonight.

Tshepo Rikhotso of Investment Solutions told The Citizen yesterday that the petrol and electricity increases meant consumers would have much less disposable income.
“For most consumers the impact is hugely negative.”

He said it was possible that there might be further hikes in the petrol price.

“South Africans should brace themselves for challenging times in the months ahead,” Rikhotso said.

Economist Mike Shussler concurred: “The increases will put a lot of strain on consumers.”
Metrorail tickets will also cost more. “Shopping patterns will be
affected and businesses will not be able to compete internationally.

There are tolls coming. Food prices and inflation will go up.”

Shussler said consumers could experience yet another round of double-digit increases next year.

Investment Solutions chief economist Chris Hart said the problem was that costs were rising faster than the economy was growing.

“This means we are getting poorer.

The ability to compensate for these higher costs will be difficult as the economy is not growing fast enough.

“Last year, needed jobs were not created and this year it will be even more difficult to do so,” Hart said.

The Congress of SA Trade Unions (Cosatu) expressed outrage at the cost of living increases.

“This is the price we are paying for the policy of commodifying our basic public services, turning them into opportunities for business to make big profits or running public enterprises as if they are private ventures based on profit maximisation principles.

“This electricity hike is just the latest in three years.

“Even with the lower rate hike of only 16%, it still adds up to a total increase of at least 81,8% over the past three years,” it said.

2.3 Battle for SABC goes to Public Protector

Mduduzi Dlamini, Sowetan, 3 April 2012

Former and current SABC senior staffers have lodged a complaint with the public protector against Auckland Park's acting chief operations officer, Hlaudi Motsoeneng.

The complaint includes serious allegations of maladministration, corruption, SABC board collusion, unprocedural salary increments that shoot up the SABC payroll, and the now well-known issue of Motsoeneng's academic credentials.

Yesterday Thuli Madonsela's office confirmed that they had received a complaint against Motsoeneng's appointment.

"Yes, I can confirm that we received the complaint against Mr Hlaudi Motsoeneng of the SABC on Wednesday," public protector spokesman Kgalalelo Masibi.

The list of complainants against Motsoeneng's appointment include former chief operations officer Charlotte Mampane and ex-SABC senior executive Phunelele Ntombela-Nzimande.

Mampane left recently after being told that "she is not part of the public broadcaster's new structure".

In a document shown to Sowetan, the complainants wrote: "There is reason, based on the experiences of many who have worked at the SABC, to believe that what is happening there is at odds with the principles of the above founding acts governing the public broadcaster.

"The way one particular individual has been allowed to cause a reign of terror at SABC has caused these individuals to request the public protector to investigate his actions as well as the extent to which the board of directors has colluded with him in wrongdoing. This individual is Mr Hlaudi Motsoeneng."

In examining this, the public protector is requested to focus on the following:

- His qualifications.

- His conduct in the organisation.

- Maladministration and fraudulent practices.

One of the complaints against Motsoeneng has been that he held senior positions within SABC despite not having a matric certificate.

The complainants accuse him of having falsely claimed to have a matric certification - an allegation that had previously been rejected by Motsoeneng, the SABC board and Communication Minister Dina Pule.

SABC group communications officer Kaizer Kganyago said: "Neither the SABC nor Mr Motsoeneng is aware of the complaint.

"The SABC will cooperate with the public protector if we are requested to do so.

"At the moment, we do not have any request of that nature."

2.4 Zille attacks ANC caucus leader

Quinton Mtyala, Cape Times, 2 April 2012

Cape Town mayor Patricia de Lille has launched a scathing attack on ANC caucus leader Tony Ehrenreich, calling him ignorant of SA’s constitution for criticising her plans to significantly increase ward allocations across the city.

De Lille used her weekly letter to take a swing at Ehrenreich, the ANC’s former mayoral candidate, for opposing the plan to increase the allocations by R200 000 along with R10 million to Cape Town’s poorest wards, as announced in the city’s budget.

In her letter she said Ehrenreich was “the biggest culprit” responsible for the failure of democratic process in the city council.

While as Cosatu’s provincial secretary, Ehrenreich invoked the constitutional right to strike, he was selective in his reading of SA’s constitution.

“Much like a student ‘spot-learning’ for an exam, he (Ehrenreich) has only read those parts of the constitution that he thinks apply to him,” wrote De Lille.

And while the city was putting into practice the spirit of the constitution, De Lille said Ehrenreich was driven by his instincts to “spin and oppose, no matter what the cost”.

“The wards that will qualify for this proposed fund, if approved, will be, as I have said, the poorest wards in Cape Town. The purpose of the programme would be to correct past imbalances where those wards, as areas under the old dispensation, received few if any municipal benefits or amenities,” said De Lille.

But Ehrenreich said the increased ward allocations were a “political gimmick”, as most wards were controlled by the DA, and thus most of the increased allocations would go the party’s supporters.

“All wards don’t have similar needs. Wards in Durbanville and Constantia are not in the same state of disrepair as those in Khayelitsha and Mitchell’s Plain,” said Ehrenreich.

He said he was not opposed to wards getting increased allocations but that these had to address past imbalances in a “systemic” way.

Ehrenreich did not want to get into a spat with the mayor over his role in the council, saying she was entitled to her views.

“If she wants to take potshots at me, she can go ahead but what she says is different to the final spending (of her administration),” said Ehrenreich.

2.5 Move to slash KZN road deaths

Sipho Khumalo, Mercury, 3 April 2012

Authorities in KwaZulu-Natal, which had the highest number of road deaths nationally, were considering radical measures to reduce fatalities, including the confiscation of vehicles belonging to repeat offenders and installing speed-limiting devices on vehicles.

This plan was revealed by Transport MEC Willies Mchunu in his address to a road safety summit in Durban yesterday organised by Cosatu amid concern over Easter season road deaths.

In the past festive season, 1 475 fatal crashes were reported nationally between December 11, 2011, and January 10, 2012, with KZN contributing the most.

To deal with this, Mchunu said, a committee was looking into meting out tougher penalties for offenders.

“They are also working on an innovation involving a device that will prevent especially public transport vehicles from exceeding the speed limit,” he said.

“It costs the country R60 billion a year to deal with accidents.”

Mchunu said radical measures were needed to change drivers’ attitudes.

Cosatu provincial secretary Zet Luzipo said most major accidents in the province involved taxis and trucks, indicating that there was a need to address the mindsets of the drivers of those vehicles.

Cosatu invited its affiliates, such as the SA Transport Workers Union, which is made up of mainly truck drivers, to discuss the prevention of road accidents.

Luzipo said resolutions proposing ways of reducing accidents would be adopted at the summit and shared with transport authorities.

2.6 Subsidise taxis – SACP

Canaan Mdletshe, Sowetan, 3 April 2012

The SA Communist Party in KwaZulu-Natal says government should subsidise the taxi industry if it wants to win the battle against road carnage - particularly where taxis are involved.

The party said taxis constitute the highest public transporter in the country.

"The governmentmust subsidise taxis to make our public transport safe and effective because most of taxi drivers are given a directive by owners to meet daily targets and this forces them to speed," said SACP PEC member Joe Nene yesterday.

Nene was speaking in Durban at a road safety summit organised by Cosatu.

He said the majority of taxi drivers were poorly paid because the industry was not subsidised and regulated.

KwaZulu-Natal MEC for transport, community safety and liaison, Willies Mchunu revealed theshocking figure that 14000 people die on the country's roads a year.

Mchunu said his department would meet with SA Transport and Allied Worker's Union because most of road accidents were caused by trucks. He mentioned an incident a fortnight ago where a truck was involved in a head-on collision with a taxi, killing 13 people on their way to work in Umzimkhulu.

2.7 E-tags compulsory: Sanral

The New Age, 3 April 2012

The SA National Roads Association Limited (Sanral) is attempting to legally force motorists to buy an e-tag or have their driver's licences taken away, according to a report on Tuesday.

Draft changes to the National Roads Act Regulations were submitted to a few parties late last week with a request that comment be received within 20 days of publication, The Star newspaper reported.

If instituted, it would give "peace officers" the power to stop cars and demand to see a driver's licence and to produce any other tag or document they were required to have.

"By implementing e-tolling and the proposed regulations through the Criminal Procedures Act, the government is promoting a very aggressive approach and tense relationship with its citizens," said Wayne Duvenage from the SA Vehicle Rental Leasing Association. –Sapa

2.8 Collecting e-toll fees 'impossible'

Thabiso Thakali, Saturday Star, 31 March 2012

A group of businesses opposed to the controversial Gauteng e-tolls have claimed in court that it would be “practically impossible” to administer the collection of unpaid tolls either through criminal or civil courts.

The Opposition To Urban Tolling Alliance is arguing in court papers lodged last week, that one million transactions a day corresponding to 400 000 users will not be automated but subject to manual processing.

“This means that 840 000 invoices would have to be sent by mail to road users per month. The postal system would simply be flooded,” said OUTA. “We are advised that it would be practically impossible for the SA National Roads Agency to effect the service of 1000 summonses per day let alone a figure higher than that.”

According to Electronic Tolling Company CEO Salahdin Yacoubi, the company was aiming to recruit two million drivers to buy e-tags so that eventually 60 percent of transactions would be by transponder, leaving 40 percent to be camera-based.

ONLY 200 000 E-TAGS SOLD SO FAR

To date, Sanral has reported that only about 200 000 Gauteng drivers have purchased e-tags.

ETC is part of a consortium that won the R20 billion tender to operate the Gauteng e-toll on behalf of Sanral.

in 2011 Yacoubi said the company would need to collect approximately R10 to R10.5 million per day from Gauteng’s road users to enable Sanral to service its debt.

“To ensure road users are financially compliant, our strategy is to ensure the efficient processing of toll road transactions, especially of defaulters, implementing cost effective debt collection processes and cycles, and providing successfuland visible prosecution of offenders,” Yacoubi said.

“Non payment of tolls will be considered a traffic offence under the law. Road users won’t be able to renew their driving licences and vehicle licences as long as they have unpaid toll fees outstanding.”

INSURMOUNTABLE LOGISTICAL PROBLEMS

The article is being used by OUTA in its attempt to justify to the court why it should grant it a relief to interdict the implementation of the e-tolls by April 30.

OUTA asked in the court papers how what appear to be insurmountable logistical problems of enforcement and of cloned number plates will be dealt with.

Yacoubi estimated that 1.5-2 million of the approximately 3.5 million vehicles registered in Gauteng, would be considered frequent users who use freeways at least once a week.

According to the live vehicle population as per the National Traffic Information Systen, there were more than 3.9 million vehicles registered in Gauteng by January 2012.

MATERIAL DEFICIENCIES

“The numbers that emanate from Sanral’s contractor ETC clearly illustrate that the enforcement of open road tolling in the case of the proposed toll road network is practically impossible,” argued OUTA. “To make matters worse, the e-tolling system also has material deficiencies that will exacerbate the problem of enforcement and cause severe prejudice to members of the public.”

OUTA cited the system’s inability to charge road users who were not the owners of the vehicles they drive and failure to deal with cases of cloned vehicle licence plates as key to severe prejudices to motorists.

The Alliance submitted to the court that e-tolling was not considered properly and it was so unreasonable an option that no reasonable administrator could have chosen to adopt it.

Meanwhile Pieter Conradie, an attorney representing OUTA members, welcomed transport minister Sbu Ndebele’s suggestion of a discussion with the parties of the e-tolling but said nothing formal had been received by his clients.

Ndebele expressed openness to talking and finding the best funding solution for the country's roads in an interview with Business Report this week.

Attempts to get comment from Sanral or ETC this week went unanswered.

2.9 Napwa welcomes ARV factory

The New Age, 3 April 2012

The National Association of People Living with Aids and HIV (Napwa) in Limpopo has welcomed moves by two international pharmaceutical companies to make antiretroviral (ARV) drugs more affordable.

Hundreds of lives of people infected with HIV could be saved by the availability of "cheaper but still effective anti-Aids drugs" in South Africa, Napwa's Limpopo secretary Lawrence Sengwane said on Monday

"Now we hear that the factory supplying those cheaper drugs will open in Mamelodi, in Pretoria in the Gauteng province, and we just hope even here in Limpopo the government will do something for us to reach those life saving drugs," he said.

"Our position in Napwa has always been that we welcome any affordable anti-Aids drugs for as long as they have been approved by government."

Limpopo health department spokesman Joe Maila said on Monday that he was not sure whether the ARV factory in Mamelodi would benefit Limpopo.

He said the department had set aside R268, 000 this financial year to purchase ARVs and R80,000 for the national health laboratory services.

"We have 493 ARV sites in the province of which seven are private and at the end of December last year the centres were taking care of 131,954 patients.

"Our aim is to improve access to care, reduce morbidity and mortality rate related to HIV and improve life expectancy," he said.

SANOFI has reportedly joined hands with Hetero of India to manufacture affordable ARV drugs at the site to be opened in Mamelodi. –Sapa

2.10 Mega ARV deal promises positive HIV impact

Ina Skosana, The New Age, 3 April 2012

Two more international pharmaceutical giants are competing for a share of the world’s biggest antiretroviral (ARV) market.

French pharmaceutical giant Sanofi has signed an agreement with an India-based counterpart, Hetero, that promises to accelerate the delivery of ARVs.

“Hetero will provide us with the raw materials and we will produce the ARVs at our plant in Mamelodi,” said Sanofi spokesperson Prudence Mahapa.

The agreement is set to support government goals to secure supply of the ARV drug, while at same time creating jobs and lowering the cost of medicines.

The deal will see an increase in the local manufacturing of ARVs at affordable prices. “There is a continuous supply shortage for critical medicines for HIV-Aids.

“Only 50% of patients are able to receive treatment and there is a real need for more locally manufactured and supplied affordable ARVs,” said Sanofi CEO Christopher Viehbacher.

“The agreement with Hetero will allow Sanofi to produce ARVs locally and contribute to the government’s objective to secure 80% locally supplied ARVs,” he said. ARV manufacturers include Aspen Pharmacare, IPS and Cipla Medpro.

Sanofi, which has seven factories in six African countries, said that €80m (R819m) had been invested in Africa over the past five years and another €120m would be invested over the next five years.

South Africa has the largest ARV treatment programme in the world, which makes ARVs available to all HIV patients with a CD4 count of 350 or lower.

The extent of the treatment coverage is proportional to the 5.6 million people in the country diagnosed with HIV.

The treatment programme serves an estimated 1.3 million people. South Africa spends almost 8.6% of its gross domestic product on health.

The National Strategic Plan on HIV, Sexually Transmitted Infections and TB 2012-2016 (NSP) sets targets to reduce new HIV infections by half and provide 80% of eligible people with ARVs.

In this year’s budget speech, R968m was allocated to the acceleration of the programme over the next five years.

Although South Africa had made significant progress in recent years, Vicki St Quintin, of the Pharmaceutical Industry Association of SA, said that more needed to be done to make treatment universal.

“Access to ARVs in South Africa remains relatively low when compared to other middle-income countries,” she said.

“One need to keep in mind that South Africa has one of the largest populations of people with HIV-Aids, when compared to other middle-income countries.”

2.11 ‘Predictable’ policy plan fails to fire industry

Mark Allix, Business Day, 3 April 2012

Manufacturing was tepid in its response to the latest iteration of the government’s Industrial Policy Action Plan yesterday, calling it largely "predictable".

Companies say they have yet to see a unity of purpose between departments and levels of government, despite the Department of Trade and Industry launching a raft of new industrial programmes to be implemented until 2015.

The plan unveiled yesterday at a press briefing included a R5,8bn Manufacturing Competitiveness Enhancement Programme, new preferential procurement regulations and a new special economic zones policy and bill.

But while applauding "closer co-operation" between the Department of Trade and Industry and the Manufacturing Circle, the body said policy successes in the automotive and clothing and textiles sectors needed to be replicated in other sectors.

It said SA’s economic competitiveness needed to be "internationally benchmarked", especially special economic zones and tax incentives, and a "proper institutionalisation of policies throughout the government".

There was concern how consistently the government addressed rand strength and currency volatility, and how manufacturing was affected by the decisions of various branches of government.

"We think the Department of Trade and Industry, within reason, is trying to do what they can. But it needs a united effort that must be government-wide," Coenraad Bezuidenhout, executive director of the Manufacturing Circle, said yesterday.

Trade and Industry Minister Rob Davies said yesterday industrial policy needed to include all spheres of the government and other stakeholders, and focus on value-added activities.

But there would have to be "some structural changes", including in mining, infrastructure, agro-processing and chemicals, he said, and growth needed to be driven by the "productive sectors" and not only consumption.

He said African economies needed to be better integrated at a policy level and through "productive" infrastructure, including the manufacture of pharmaceuticals.

Low levels of growth, stagnation and "outright recession" in parts of the developed world would affect SA’s exports, Mr Davies warned.

The Industrial Development Corporation announced it would spend R102bn over the next five years stimulating green industries, commercial vehicle manufacturing, textiles and clothing and the "globalisation of South African brands".

The content of the state’s key manufacturing competitiveness enhancement programme would not be known until a meeting between Business Unity SA and the department planned for today.

2.12 Ramos takes cue from Barclays, defers R14m bonus pay

Sure Kamhunga, Business Day, 3 April 2012

ABSA group CEO Maria Ramos is deferring her R14m incentive bonus for last year, which is to be paid — subject to performance and other conditions — in shares over the next three years.

This is an apparent nod to shareholders demanding that remuneration be linked to business success.

Top executives at Absa’s controlling shareholder, UK-based Barclays, also deferred last year’s bonus, Brand Pretorius, chairman of Absa’s remuneration and human resources committee, said yesterday.

He said Ms Ramos had been "gracious" to elect to receive her bonus as a deferred award, in three equal portions up to 2015. She deferred a bonus of R8,5m in 2010, but received a performance bonus of R2,27m.

Shareholder activist Theo Botha said yesterday while he could not comment in detail until he had met Absa’s executives, he welcomed Ms Ramos’s deferment of her incentive bonus.

Ms Ramos is one of the highest-paid CEOs of a JSE-listed company. Last year her total package, including her fixed basic salary, pension benefits and bonus, was R20,7m, up from R19,6m in 2010, according to Absa’s annual report, released yesterday.

Nedbank CEO Mike Brown’s total package last year was R15,68m, up from R12,5m in 2010, according to a remuneration report released last Friday. This excluded shares worth R6m he received last month, and compared with R10,5m he was given in April 2010.

Ms Ramos’s decision to defer her incentive bonus follows global pressure on financial institutions to control the risky behaviour of executives through tighter performance-based remuneration.

Finance Minister Pravin Gordhan has also called for restraint in executive pay in SA, which has one of the biggest income disparities.

The pressure intensified after the collapse of Lehman Brothers in September 1998 when waves of recrimination hit bank executives in particular over their perceived role in the global financial crisis.

Mr Pretorius said the "scars" of the financial crisis were still fresh in the memories of politicians and regulators as evidenced by their greater attention to the remuneration of executives.

Absa wanted a balance between appropriate remuneration, retaining talent and preventing risky behaviour by executives.

"There is now a high level of sensitiveness and regulators are putting an enormous amount of pressure on financial institutions," Mr Pretorius said.

"The close involvement and serious consideration of risk-related factors and the alignment between risk and rewards is (now) a lot closer."

Mr Pretorius said Ms Ramos’s decision was jointly made by herself, Absa’s remuneration committee and Barclays.

"The top executives (at Barclays) also deferred 100% of their incentive bonus and it was our view that, in the light of circumstances out there, it was the right thing to do and (Ms Ramos) was gracious about it," he said.

Mr Pretorius also said in the annual report that Absa deputy CEO Louis von Zeuner, financial director David Hodnett and Absa Capital CE Stephen van Coller had received 20% of their performance incentives in February, 20% in phantom shares to be released after six months, and 60% as a deferred award.

"For other members of the group (executive committee) and other highly paid executives, 60% of performance incentives were delivered as a deferred award. For other senior managers and material risk takers, at least 40% of 2011 performance incentives were delivered as a deferred award."

3. ANC & Alliance

3.1 ANC top 6 to speak out

Dominic Mahlangu, Times, 3 April 2012

Threats to expose President Jacob Zuma and the continuing public attacks on his leadership by the ANC Youth League are expected to be dealt with this afternoon.

The ANC said yesterday its top officials - Zuma, his deputy, Kgalema Motlanthe, secretary-general Gwede Mantashe, treasurer-general Mathews Phosa and deputy secretary-general Thandi Modise, would address the media today.

The one-line statement issued by party spokesman Jackson Mthembu did not say what the press briefing would be about, but those close to the leadership said last night that the recent ill-discipline of some youth league members and statements by embattled league president Julius Malema were expected to be addressed.

They said the party leadership, which has remained silent on a number of issues that have damaged the party's reputation, will show a united front.

"The centre should hold, especially now, when the ANC is under attack from within," said a party member who spoke on condition of anonymity.

A leadership battle in the ANC is in full swing and the youth league has publicly called for Zuma's removal at the party's elective congress in December.

A number of proposed leadership name slates are already doing the rounds.

What is clear is that the youth league wants Zuma out.

According to the Sunday Times, an SMS from the league names Motlanthe as president, Phosa as his deputy, Mantashe as national chairman, Nkosazana Dlamini-Zuma or Thandi Modise as deputy secretary-general and Tokyo Sexwale as treasurer.

For weeks now, league members, including its top officials, have been attacking Zuma.

Last week, Malema told a gathering at Wits University that, under Zuma, youth league members were traumatised.

He threatened to expose Zuma's failings.

Malema accused the president of being intolerant and of suppressing divergent views.

He went so far as to call Zuma a dictator.

"It is under President Zuma that we have seen the youth in the ANC being traumatised; the youth in the ANC expelled from their home; the critical voice of the voiceless being suppressed.

"We have seen under President Zuma democracy being replaced by a dictatorship," Malema said.

3.2 Battle for top ANC job

Alex Matlala, Sowetan, 3 April 2012

The outcome of the coming ANC elective conferences in Eastern Cape, Free State, KwaZulu-Natal and Mpumalanga will have a bearing on the balance of forces going to the organisation's conference in Mangaung.

Mpumalanga will be in the spotlight this weekend when provincial chairman and premier David Mabuza battles it out for the province's top position against health MEC Clifford Mkansi.

The election is expected to be hotly contested given Mkansi's track-record.

He is a former secretary of the award-winning Sondelani branch at Thulamahashe outside Bushbuckridge.

Mabuza, on the other hand, has received overwhelming support during the ANC regional conferences.

"It must be borne in mind that the province's four regions have all put their weight behind Mabuza during regional conferences.

"But his re-election as provincial chairman could be difficult because Cosatu, the ANC Youth League and the SACP have already voiced their disapproval of him as leader," said a provincial executive committee member who spoke on condition of anonymity.

A win by Mabuza - a known Zuma ally - will be an indication of how the province will vote in Mangaung.

The conference will be held at Nelspruit's Mbombela Stadium between Thursday and Sunday.

The other three provinces that are yet to go to their elective conferences include Free State, KwaZulu-Natal and Eastern Cape.

This has to happen before the end of May following an instruction from the ANC national executive committee that all provinces must have had their conferences before the party's policy conference in June.

ANC spokesman Keith Khoza said: "Part of the directive was that all provinces must have completed their audits before June except for Limpopo and North West, which had their conferences last year."

Free State province's branches go to branch general meetings (BGM) this week.

"The party caucus this weekend decided to officially open nominations today where premier Ace Magashule's contender, if any, is poised to emerge," said ANC provincial spokesman William Bulwane.

Free State will hold its elective between May 25 and 27.

Independent political analyst Elvis Masoga yesterday said current developments favoured President Jacob Zuma to retain his position as party leader.

"It is a known fact that the four provinces have leaders who are known Zuma supporters. "It is only Limpopo and Northern Cape which are known to be 100% against Zuma.

"North West and Gauteng are divided while Western Cape was unpredictable.

"Remember, Zuma was recently booed by members of the youth league during his visit to the province," added Masoga yesterday.

3.3 ANC cash crisis may derail party plans

Moipone Malefane, Sowetan, 3 April 2012

The ANC has been hit by a cash crisis threatening to derail its plans to modernise by, among other things, recruiting professional staff at Luthuli House, its headquarters.

This is contained in a document due to be released for discussion ahead of the party's policy conference in June.

Although the document on organisational renewal does not reveal the extent of the crisis, it acknowledges that the ANC may have difficulties in financing some of its new plans.

The document is calling for steps to professionalise and modernise the operations of the ANC.

"Progressive modern management methods should be introduced in the running of ANC offices," it says.

"Over the next decade, we strive to build an advanced cadre of well trained, professionally competent, decently paid and highly motivated functionaries of the organisation at all levels ..."

Other proposals are that responsibilities of ANC officials be clarified and that national working committee (NWC) members be elected by the national conference.

Some of them have to be full-time in the office of the secretary general, heading different departments.

The ANC officials include its president, deputy president, secretary general, treasurer and chairman.

The document proposes that the ANC constitution be amended so that the officials are a leadership collective with clear "collective responsibilities and accountabilities".

It says the current constitution describes the role of the officials only as individuals. It further says the office of the secretary general be beefed up with six new departments headed by NWC members.

The document proposes that the departmental heads be elected by national conference as full-time secretariat, work under the secretary general and also be members of the NWC.

The difficulty, according to the document, is that the new full-time NWC members may be seen as a super structure that could undermine the powers of the national executive committee.

The paper proposes the restructuring of provincial and regional offices. It says provinces should elect three full-time members to head the organisation and building political education and cadre development. Currently, the regional offices have two members heading grassroots work and political education.

Should the proposals be accepted by the policy conference, they will further be discussed at the national conference and will be implemented if adopted. To beef up the party's coffers, the document is proposing increased funding of political parties by the Independent Electoral Commission. It also says the ANC will have to diversity its investment portfolio to raise funds.

Members will also be required to contribute according to their abilities.

3.4 League accepts Malema’s fate, wants Zuma out

Sam Mkokeli, Business Day, 3 April 2012

The African National Congress (ANC) Youth League has accepted that saving its president, Julius Malema, is impossible, but will push on with a campaign to replace President Jacob Zuma .

An official of the league said yesterday they had accepted that ANC leaders had made up their minds over Mr Malema’s expulsion.

The ANC’s disciplinary committee of appeals is to hear Mr Malema’s appeal against his sentence of expulsion from the party.

The league sees the outcome of the appeal as a foregone conclusion — that the committee chaired by Cyril Ramaphosa will uphold the expulsion, handed down by Derek Hanekom ’s disciplinary committee last month.

Mr Malema, together with senior leaders in the ANC, have set their sights on the Mangaung conference. The league is campaigning for Deputy President Kgalema Motlanthe , also Mr Zuma’s deputy in the party, to take over. The league is banking on canvassing enough members to get the Mangaung conference to throw out the disciplinary processes. This is unlikely to happen if Mr Zuma is re-elected.

If Mr Malema is indeed expelled, the league would be without a president, with deputy Ronald Lamola due to remain in his position.

A list of the league’s preferred leaders has Human Settlements Tokyo Sexwale as deputy president. Sport Minister Fikile Mbalula is their preferred secretary general. He would replace Gwede Mantashe.

The league, however, still sees a role for Mr Mantashe in the leadership after Mangaung, as chairman. Keeping Mr Mantashe in the "Top Six" would be their league’s way of enticing the Eastern Cape — Mr Mantashe’s birth province — to back its campaign.

Mr Mantashe has butted heads with the league on numerous occasions. But a youth league insider says: "Ideologically and politically, we don’t disagree with Gwede."

The league has a mountain to climb if it is to succeed in its campaign to bring back Mr Malema, and change ANC leaders. Getting all their preferred names to be elected would be difficult, as some provinces would be seeking endorsement for their own preferred candidates, which means the list being pushed by the league could change.

The league is facing tough competition from those wanting to retain Mr Zuma, who are believed to be trying to woo Mr Ramaphosa to become deputy president. Also, South African Communist Party general secretary Blade Nzimande’s name has been mentioned as a possible deputy president.

But the names mentioned could also be resisted because of the dominance of leaders from KwaZulu-Natal. One slate has Public Enterprises Malusi Gigaba and Police Minister Nathi Mthethwa as candidates for positions on the Top Six. That is unlikely to work, considering complaints that KwaZulu-Natal leaders were already too dominant in Mr Zuma’s Cabinet.

Political analyst Aubrey Matshiqi said the balance of forces was still fluid, with major battles to convince lower structures yet to unfold.

The league has been analysing the chances of its campaign succeeding, with its number crunchers confident that Mr Motlanthe would get sufficient endorsement ahead of the Mangaung conference. They have written off KwaZulu-Natal and Mpumalanga, but are confident that provinces such as the Eastern Cape and Gauteng would back them.

4. Inernational

4.1 Swazi king demands birthday cows from subjects

AFP, 2 April 2012

Swazi King Mswati III, Africa's last absolute monarch, has ordered his impoverished subjects to give him cows for his birthday celebrations this month, the home affairs minister said Monday.

Chiefs from the Shiselweni region, where the celebrations will be held, will have to canvas their subjects for cattle to be slaughtered for the king, who turns 44 on April 19, Prince Gcokoma said.

"Chiefs from the Shiselweni, as hosts, are expected to provide cattle to be slaughtered on the day," Gcokoma told AFP.

"They are fully aware of the fundamental role they're expected to play as they are the ones who will be hosting the king on his memorable day."

Gcokoma said the country's precarious finances meant the government did not have enough in the budget to pay for the event, which was cancelled last year due to the crippling fiscal crisis that has left the kingdom struggling to pay wages.

But the government this year has nonetheless pledged to make a contribution toward the five million rands ($652,000, 490,000 euros) budgeted for the celebrations.

Mswati is rated by Forbes magazine as among the world's 15 richest monarchs, with a personal fortune of more than $100 million. He has 13 wives, each with their own palace.

But 60 percent of his subjects live on less than two dollars a day in one of the world's poorest countries, which is bordered on three sides by the continent's economic powerhouse South Africa.

Swaziland's banned opposition party Pudemo has demanded that the kingdom cancel the birthday party.

"We call for the celebrations to be cancelled and the resources channelled to the provision of scholarships for deprived students," party spokesman Zakhele Mabuza said.

5. Comment

5.1 Top 10 battles raging within the tripartite alliance

Osiame Molefe, Daily Maverick, 3 April 2012

Silly season in South African politics might appear a year-round event, but during an election year the media leaks and other shenanigans go up a few notches. This year has been no different. With 37 weeks to go until Mangaung 2012, OSIAME MOLEFE put together a countdown of the top 10 battles raging within the alliance.

Whether staked on personalities or issues, real and made up, the battles heading into the ANC’s elective conference will dominate headlines until 23 December, when the conference ends and the tallies of winners and losers will be known. This is high-stakes wrangling. The battles typically determine who will hold key government positions come the next national election and who will be sentenced to political purgatory over the next five years for backing a losing horse. It’s hard to keep up, amid the increasingly bruising and frenetic jostling, so a top 10 list might come in handy.

10. Pro-Zuma vs anti-Zuma Cosatu

The labour federation could, in the end, back Jacob Zuma for a second term as ANC president, if only for lack of a candidate sympathetic to their cause (see 1). But that hasn’t stopped speculation of a rift between Cosatu president Sdumo Dlamini and general secretary Zwelinzima Vavi. Dlamini roasted the ANC Youth League for using Cosatu’s march against toll-roads and labour broking as a platform to poke fun at Zuma. The Youth League, in turn, wrote to Vavi to have Dlamini retract his remarks. Dlamini this weekend, according to a City Press report, again denied he was leading a campaign to have the labour federation back Zuma. Vavi, too, denied leading an anti-Zuma campaign and blamed the media for the speculation.

But deny as they may, Cosatu is in the alliance to have a say on who leads it and how those leaders run the state. There are many contradictions to overcome (see 5), but as unappetising as Zuma may be, Motlanthe might prove more so, forcing the unions instead to focus on having their favoured candidates take up key positions on the ANC’s national executive committee.

9. Cosatu vs SACP on leadership within the ANC

Cosatu and the SA Communist Party see their ability to influence the ANC’s leadership structures and policies differently. Whereas the SACP has no qualms over its leaders occupying positions in national and provincial government, Cosatu has taken a dim view of this. Recently Vavi said the SACP should recall Blade Nzimande because he has been unable to lead the movement effectively since being appointed higher education minister. Irvin Jim, general secretary for the Cosatu-affiliated National Union of Metalworkers of SA, tore into SACP deputy general secretary Jeremy Cronin, also deputy transport minister, for “vulgarising Marxism”.

Cosatu would rather “swell the ANC” at the branch level, meaning its members would be in a position to vote for the candidates the union believed would best advance labour interests. This strategy leaves its own leaders free to speak out, without contradiction, against corruption, privatisation and other maladies they perceive to be ailing government. Zuma’s invitation for union leaders to serve on the NEC, however, appears to have caused divisions on this issue, as Numsa president Cedric Gina called for Vavi’s refusal to stand for an ANC NEC position to be discussed at the next Cosatu central executive committee meeting.

8. Anti-Nzimande SACP vs pro-Nzimande SACP

Cosatu might not be alone in thinking Nzimande has been an ineffective leader since his appointment to government. The Sunday Times reported that the SACP’s Gauteng provincial congress tabled a bid to create a second general secretary post, alongside that of Jeremy Cronin. This would keep Nzimande in charge of the SACP without being encumbered by administrative duties, allowing him to also keep his job as higher education minister. All of this being an attempt to thwart any internal challenges to Nzimande, based on the effect of his government post on his ability to lead.

But with a large portion of the SACP’s national executive deployed to government, it’s all a case of “let he who is without sin…”.

7. Cosatu vs factions using state security apparatus to fight party battles

Vavi was emphatic at last week’s hearings into the Protection of State Information Bill. He said Cosatu’s position on the matter was not linked to factional battles within the alliance. Cosatu had been engaged with the matter since 2010, long before the jockeying for leadership positions began, according to Vavi. Still, he voiced the union’s concern that the state’s security machinery was once again being used to fight party and personal battles – an occurrence that could worsen under the veil of silence should the bill pass in its current form, he suggested. Other than his having been head of what the unions dubbed the “1996 class project”, it was Thabo Mbeki’s alleged use of state security to fight internal party battles that caused Cosatu to turn on him, costing him the presidency of party and state.

Vavi grumbled about Richard Mdluli’s abuse of power as the crime intelligence boss now looks likely to escape unscathed because of his political connections. There must be some sheepish faces in the labour movement when Zuma’s name is brought up, because despite their anti-corruption and anti-abuse of state resources stance, the man they backed appears to be doing the very things they campaign against. But will that sway their support? (see 1.)

6. Cosatu vs e-tolling

After rallying almost 200,000 members and sympathisers to a march against e-tolling, Cosatu this week was called into a closed-doors meeting with government where it was confronted with evidence that its investment arm, Kopano Ke Matla, had a direct interest in the toll roads project. Cosatu has since instructed Kopano not to participate in any transactions involving privatising state assets.

The meeting was described as “fruitful”, but details are yet to emerge on who came out tops. We’ll know by 30 April, when e-tolling will either begin, pending court challenges, or again be postponed. While not tied to the leadership race, this skirmish served as a useful reminder of the power Cosatu wields and that anyone with aspirations of leadership in the alliance would be making a mistake to take an anti-union position.

5. Polokwane resolutions vs the status quo

By aligning itself to a political party with lefty tendencies, the labour movement thought it could waltz its policies into government, but has found the reality tougher going. Labour fought hard at the Polokwane conference for “an effective strategy of redistribution that builds a new and more equitable growth path”, and thought they had that through the Polokwane resolutions. Since 2009, however, after the end of what it has called an “alliance honeymoon”, Cosatu has been wondering what happened to the vows the ANC made.

Numsa has been particularly vocal on the willing-buyer, willing-seller approach to land reform, which the alliance in Polokwane agreed needed to be re-evaluated. The union would like to see the clause go, to be replaced by appropriation without compensation. So far, though, discussions on this have been discouraged on fears of chasing away foreign investors. Numsa recently said it would like to see the ANC secure a two-thirds majority at the next elections to allow it to amend the Constitution to remove the property clause. This will feature prominently at the alliance’s policy conference in July, with Numsa effectively picking up where the ANC Youth League left off.

4. ANC Youth League vs Jacob Zuma

Smarting from several lashings at the hands of the party’s national disciplinary and appeals committees, the ANC Youth League is attempting to regroup to launch an offensive of its own from within the party structures. The Sunday Times reported that the league’s secretary-general, Sindiso Magaqa, wrote to Gwede Mantashe requesting that Zuma be disciplined for speaking out of turn on Malema’s appeal.

Magaqa’s request will go nowhere, but the Youth League knows that. They are putting together a case for unfair and disproportionate treatment to present to the ANC’s ordinary members at the December conference. When Mathews Phosa spoke out on the disciplinary hearing, Mantashe issued a scathing rebuke, but when Zuma did it, not a word was said, Magaqa pointed out. But expelled Youth League leader Julius Malema will not be winning himself fans with his response to the supposed unfair treatment.

3. Juju vs the ANC

Of course, Malema says it’s not his beloved ANC he is up against, but rather the ANC faction currently at the helm. The expelled Youth League leader, skilled at weaselling, used this excuse to back down on an earlier promise not to take his disciplinary matter to the courts. He’s also threatened not to participate any further in the disciplinary process, alleging he has been treated unfairly.

Malema has also been unabashedly vitriolic about Zuma, likening his leadership of the ANC to a dictatorship. Zuma is a master of fending off attacks and coming off as the aggrieved party, so Malema’s unfair treatment argument could become moot once he behaves like a grumpy child.

2. Corruption vs the soul of the ANC

Several ANC leaders have voiced concern that corruption has tarnished the ANC. The issue was raised in a document to be discussed at the policy conference, but runs the risk of being paid lip service as leaders begin focusing more on their positions within the party. Still, rooting out corruption is no easy task. It’ll take wholesale changes in key leadership positions and loads of political will. The alliance is unable to do the former and has so far been unable to muster the latter.

1. Zuma vs Motlanthe

Weekend reports were once again filled with speculation on how the race for the top job in the ANC is shaping up, even though the challenger has yet to respond publicly to reports of his ambitions to unseat Zuma. Importantly, Motlanthe is yet to deny the reports as he did last July, suggesting some credence to the reports.

Scores of Youth League supporters wearing T-shirts branded with Motlanthe’s face filled Tzaneen’s Nkowankowa stadium last week to hear their pick for ANC president speak. Motlanthe scolded them for the T-shirts, but he surely could not have expected any different when appearing alongside Malema and sports minister Fikile Mbalula, Mantashe’s slated successor.

But the labour movement is unlikely to support Motlanthe, who backed the Walmart deal and is among what the unions call the ANC’s “centrists”. Instead, they might prefer to keep Zuma and surround him with an NEC sympathetic to their causes.

Zuma still has massive support in the alliance and, save for the emergence of a third alternative at this early stage, he looks set to win this battle.

Patrick Craven (National Spokesperson)

Congress of South African Trade Unions

P.O.Box 1019

Johannesburg

South Africa

Tel: +27 11 339-4911/24

Fax: +27 11 339-5080 / 6940

Mobile: +27 82 821 7456

E-Mail: pat...@cosatu.org.za

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