Sars has just reached an agreement with unions for an immediate 8% wage increase followed by two years of CPI plus 2% increases. This is surely economic suicide. It comes on the top of general state wage increases far above inflation and a recent increase of 7% forced upon Eskom by public enterprises minister Pravin Gordhan. Eskom is hopelessly overstaffed, with an average salary much more than in the private sector, and is on the brink of insolvency.

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