'Time for difficult decisions': Business Unity SA calls for reduction in public sector wage bill

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The organisation said as the country considered the path towards recovery and risks the government’s fiscal policy posed to that recovery, the public sector wage bill was a crucial factor.

“If we assume a drop in nominal GDP of 4% this year and increases of 4% in each of the next two years, and we want to decrease payroll costs by 10.5% by 2025/26, aggregate payroll costs can increase by no more than 1.8% a year in nominal terms.The release of the report comes at a time when Cosatu is holding its three-day bargaining, organising and campaigns conference from Monday.

The government has refused to implement the last leg of a three-year wage agreement signed in the public sector co-ordinating bargaining council in 2018 for 1.3 million public servants, because it does not have the money to do so.the SA public service was not large in per capita terms, but unusually well remunerated when compared to a basket of other countries;

the average remuneration of public servants in SA was high by international standards, when compared to private sector employees and per capita GDP; and “Busa commissioned this work because we are of the view that SA needs an objective set of data that can inform engagement between government, business, and labour on enabling a public service that is sustainable and productive and is remunerated accordingly,” Coovadia said.

 

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Until people realize that the problem is not the wage bill but general wastage of government funds. Anything that government buys or built comes at 3 times the cost.

Their members donated and won the conference, lets respect them and implement what ever they say no matter how painful it is.

Cut first the bloated Parliment

The recovery plan will only succeed if there's strong collaboration between government, private sector and entire societies. Private individuals and societies at large need to participate in economy market.

Good luck getting past the Communist tripartite alliance with that!

Suggesting more unemployed people? To receive grants?

Of course and bloated management in public institutions

ppl who earn less than R8000 a month(majority) are over paid? The problem is redundant posts often created to employ relatives, cronies, girlfriends etc.. Those are usually support staff posts, and general workers etc

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