LETTER: State self-destructs with public sector wage agreement
Treasury director-general Dondo Mogajane’s statement that it would be “fiscally untenable to continue expending increasingly scarce public finance resources on ballooning public service salaries” is correct, but the government knew that before the Covid-19 crisis hit (“Public sector wage hike unaffordable amid crisis, warns Treasury”, July 21 (https://www.businesslive.co.za/bd/national/2020-07-21-public-sector-wage-hike-unaffordable-amid-crisis-warns-treasury/)).
For some reason the government, with its eyes wide open, went ahead and agreed with the public sector unions to pay above-inflation salary increases. Despite calls from the DA that such an agreement would be suicidal, the government in its “wisdom” decided to subject itself to this self-destructive behaviour...
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