EDITORIAL: Public-sector wages poser
Without getting public-sector wage growth back into kilter, the state is unable to play a positive role to drive economic growth
The public-sector wage negotiations are at a critical point. After a long pause, during which the Department of Public Service and Administration changed ministers, there are signs that wage negotiations are on the move again. As the date for the implementation of the agreement is April 1, talks are already far behind. Discussions between unions and the department resumed on Wednesday, although no hard negotiating was done. Coincidentally, on the same day, the Institute of Race Relations produced a report, Slaying the Dragon, on the public-sector wage bill. President Cyril Ramaphosa is cast as the potential dragon slayer, with the report asking whether he has the courage to go where others have failed. The problem with public-sector wages has been explained often by the Treasury and credit ratings agencies. The growth of wages has tipped public finances into imbalance, with an increasingly bigger share spent on consumption, while investment spending suffers. Without getting this bac...
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