'Higher wage demands means less jobs'

Gill Marcus told Numsa that demanding higher wages now will lead to job losses in the future.

Reserve Bank Governor Gill Marcus. Picture: AFP.

JOHANNESBURG - Reserve Bank Governor Gill Marcus on Wednesday told metalworkers union Numsa to consider the reality that higher wage demands will lead to job losses in the near future.

Marcus was speaking to the union's pre-bargaining conference in Randburg where she reiterated that both the global and local economic outlook remained fragile.

Marcus painted a bleak outlook on the economy and said the global outlook is only likely to improve after five or more years.

"You know that this is one of the factors we face and that a higher wage bill may well affect employment."

She said violence during wage talk's makes matters worst.

The conference was convened to prepare for the 2013 bargaining season where the union will negotiate better wages for its members who work mostly in the motor industry.