When the government starts to feel the pinch of the ratings downgrade and needs to rein in its spending, it will have to start a mass retrenchment exercise (ANC: we failed to grasp the full cost of downgrades, April 10). The public-sector wage bill will have to be cut within the next few months, and every person who has a job in SA looks after more than three people, on average.
The fallout between the government and the trade unions that are active in the public sector will be enormous. We can expect wildcat strikes and possibly the halting of much service delivery. The downgrade will directly affect every single citizen when — not if — this fallout strikes home.
Michael BagraimMP DA labour spokesman