20°C / 22°C
  • Fri
  • 18°C
  • 10°C
  • Sat
  • 18°C
  • 13°C
  • Sun
  • 21°C
  • 14°C
  • Mon
  • 23°C
  • 15°C
  • Tue
  • 22°C
  • 12°C
  • Wed
  • 23°C
  • 11°C
  • Fri
  • 26°C
  • 18°C
  • Sat
  • 25°C
  • 17°C
  • Sun
  • 25°C
  • 17°C
  • Mon
  • 27°C
  • 16°C
  • Tue
  • 24°C
  • 15°C
  • Wed
  • 25°C
  • 17°C
  • Fri
  • 19°C
  • 12°C
  • Sat
  • 19°C
  • 15°C
  • Sun
  • 22°C
  • 16°C
  • Mon
  • 23°C
  • 17°C
  • Tue
  • 23°C
  • 15°C
  • Wed
  • 25°C
  • 13°C
  • Fri
  • 21°C
  • 12°C
  • Sat
  • 20°C
  • 15°C
  • Sun
  • 22°C
  • 15°C
  • Mon
  • 23°C
  • 16°C
  • Tue
  • 23°C
  • 14°C
  • Wed
  • 24°C
  • 11°C
  • Fri
  • 25°C
  • 17°C
  • Sat
  • 26°C
  • 19°C
  • Sun
  • 22°C
  • 19°C
  • Mon
  • 22°C
  • 18°C
  • Tue
  • 21°C
  • 18°C
  • Wed
  • 22°C
  • 18°C
  • Fri
  • 27°C
  • 16°C
  • Sat
  • 23°C
  • 18°C
  • Sun
  • 21°C
  • 17°C
  • Mon
  • 21°C
  • 17°C
  • Tue
  • 22°C
  • 17°C
  • Wed
  • 22°C
  • 17°C
  • Fri
  • 31°C
  • 17°C
  • Sat
  • 32°C
  • 15°C
  • Sun
  • 31°C
  • 15°C
  • Mon
  • 31°C
  • 17°C
  • Tue
  • 27°C
  • 16°C
  • Wed
  • 29°C
  • 16°C
  • Fri
  • 24°C
  • 17°C
  • Sat
  • 25°C
  • 16°C
  • Sun
  • 24°C
  • 16°C
  • Mon
  • 25°C
  • 16°C
  • Tue
  • 24°C
  • 15°C
  • Wed
  • 25°C
  • 17°C
  • Fri
  • 20°C
  • 12°C
  • Sat
  • 20°C
  • 16°C
  • Sun
  • 24°C
  • 16°C
  • Mon
  • 24°C
  • 17°C
  • Tue
  • 27°C
  • 14°C
  • Wed
  • 27°C
  • 13°C
  • Fri
  • 23°C
  • 12°C
  • Sat
  • 23°C
  • 12°C
  • Sun
  • 25°C
  • 12°C
  • Mon
  • 26°C
  • 14°C
  • Tue
  • 22°C
  • 12°C
  • Wed
  • 24°C
  • 11°C
  • Fri
  • 24°C
  • 12°C
  • Sat
  • 25°C
  • 15°C
  • Sun
  • 21°C
  • 17°C
  • Mon
  • 20°C
  • 16°C
  • Tue
  • 21°C
  • 16°C
  • Wed
  • 26°C
  • 16°C
  • Fri
  • 29°C
  • 16°C
  • Sat
  • 22°C
  • 16°C
  • Sun
  • 21°C
  • 15°C
  • Mon
  • 21°C
  • 14°C
  • Tue
  • 23°C
  • 13°C
  • Wed
  • 21°C
  • 15°C

Mboweni: Public sector wage bill must be slashed

Government spends over R500 billion on the wage bill which has more than tripled between 2006 and 2019.

Picture: pixabay.com

CAPE TOWN - A showdown is looming between government and labour over the public sector wage bill which Finance Minister Tito Mboweni has said must be slashed for the sake of the country.

Delivering the Medium Term Budget Policy Statement (MTBPS) on Wednesday, Mboweni has outlined that Treasury plans to claw back R150 billion from government expenditure in the next three years - with the wage bill an integral part of the strategy.

However, this is likely to result in an unprecedented political storm as ANC alliance partner Cosatu and other trade unions will mount a push back.

Ratings agencies and market leaders have long warned of the fiscal risk that is the South African Public Sector Wage Bill.

And it now appears that the government is ready to face-off with labour - a task that Mboweni’s predecessors never got to implement due to the political sensitivities around the issue.

Government spends over R500 billion on the wage bill which has more than tripled between 2006 and 2019.

Mboweni said difficult decisions will have to be made.

“In the Review accompanying this statement, we set out a detailed analysis of spending on public‐sector wages. It shows that 29,000 public servants, plus members of the national executive, members of Parliament, members of the provincial executive, and so forth, each earned more than R1 million last year. After adjusting for inflation, this is more than double the number of civil servants earning more than R1 million in 2006/07.

“The average wage increase across government was 6.8% in 2018/19, or 2.2% above inflation. After adjusting for inflation, the average government wage has risen by 66% in the last ten years.“

With fears that the country’s budget deficit could widen, Mboweni said serious discussions must be had with labour over the next few months for a consensus on an intervention to be reached.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus