By Linda van Tilburg
- South African bank workers were blocked from participating in what would have been the industry’s biggest strike in almost a century as labour unions protest against job losses. The unions failed to comply with rules allowing demonstrations and those who down tools would have no protection, Judge Hilary Rabkin-Naicker said in her ruling in the Johannesburg-based Labour Court yesterday. Cosatu and the South African Society of Bank Officials said they will appeal the ruling. The demonstrations were aimed at lenders that have consulted staff over job cuts in recent months. Some South African banks, such as Standard Bank Group, Absa Group and Nedbank Group have reduced branch networks and reorganised other units as they digitise their operations.
- Formal job growth remained flat while net jobs decreased by 2000 in the second quarter of the year, according to Statistics South Africa. Full-time jobs declined by 26 000, but there was an increase in part-time jobs to 24,000 during the period. On an annual basis, jobs grew by 1.5% with an increase in community service jobs, which include government jobs of 44,000 and mining adding 3000 jobs. During the second quarter earnings grew by 1.7% due to increases in basic salaries.
- Truworths has managed to restructure its UK debt after Standard Bank has provided a £32.5m* facility to refinance its footwear retailing business, Office. That is after Truworths joined the ranks of stores hit by the British high street slump. It’s share price gained 2.54% on the JSE. The All Share Index closed higher as global equities gained following positive comments from China and the US on their trade war. The index rose by 0.72%. Upward movement on the date was registered by Rand Merchant Industrial Holdings which rose by 4.69% and Investec Property fund edged up by 4%. Harmony Gold was down 5.5%, while Sappi lost 3.3%.
- The Public Investment Corporation is poised to take a stake in Liquid Telecom if Africa’s biggest fibre company goes ahead with a planned initial public offering. Bloomberg reports that the PIC has to set aside funds to guarantee a $375 million loan to Liquid parent Econet Global from Deutsche Bank AG. It would then buy stock in Liquid when it listed, at a discount to the offer price, and that money would be used to repay Deutsche. Deutsche Bank declined to comment and the PIC said the details of the transaction was confidential.
- An Old Mutual shareholder has urged the South African insurer to end its dispute with Chief Executive Officer, Peter Moyo even if it means settling out of court. The Chief Investment Officer at All Weather Capital Shane Watkins told Business Day the wrangle could not longer be resolved through litigation and the recent resignation of an Old Mutual director suggested the board isn’t united in its handling of the matter, he told Business Day. All Weather holds about R300m ($20m) worth of shares in the company and is engaging privately with Old Mutual. “The board could and should choose to settle this matter before further damage was done to the company.”
- Eskom has shortlisted three candidates for chief executive officer to lead the loss-making utility out of its debt crisis. Bloomberg reports that they are Andy Calitz, a former electrical engineer at Eskom who was also a CEO of LNG Canada and held senior posts at Royal Dutch Shell and Jacob Maroga, a former CEO who left Eskom in 2010 and there is also an unidentified third person. Neither commented on the speculation.
*Was initially incorrectly stated as £32.5bn and not million.