Unions warn against early retirement to cut civil servant wage bill - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

  • 📰 SABCNews
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 51%

Early Retirement News

Business Business Latest News,Business Business Headlines

Labour Federations are warning the government that its plan to reduce the public sector wage bill by offering voluntary early retirement might backfire.

South Africa’s public sector wage bill is among the highest in the world.

The government says the voluntary early retirement programme will save an estimated R2 billion per year. Finance Minister Enoch Godongwana, explaining the rationale behind the latest process, says, “We are also implementing initiatives like early retirement. Not merely to reduce the size of the workforce but also introduce younger talent to the public service.”Fedusa says it is an insult to the government’s own commitment to building a capable state.“This move will also add insult to injury as a large-scale brain drain will be inevitable and vital expertise lost to the system.

The Congress of the South African Trade Union has also expressed concerns and fears about this.It says the country’s population has almost doubled since 1994, but the public sector headcount has increased by only 20 percent. The federation says the government needs to consider this more carefully, as critical skills might be lost and later on be recruited back.“We are taking a shortcut route. We fear it is simply going to end in tears and is not going to address the fundamental issues of growing the economy, of fixing the state, reducing poverty and unemployment.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 37. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Navy Chief laments impact of budget cuts - SABC News - Breaking news, special reports, world, business,Lobese says the R1.6 billion budget for operational costs is not enough.
Source: SABC News Online - 🏆 32. / 51 Read more »