Markets unfazed by pay hike
The government and public sector unions met on Friday to finalise details of a package
11 July 2021 - 00:10
Markets and ratings agencies are unfazed by the prospect of a public sector wage increase that's now set to come in higher than the government had budgeted for - but there are concerns that the single-year deal unions have insisted on will fuel uncertainty and weigh on SA's credit ratings, at a time when the fiscal picture had been looking much better than expected.
The government and public sector unions met on Friday to finalise details of a package that will yield an effective increase of about 4.8% for the current (2021/2022) year, rather than the 2.1% the government had budgeted for in February...
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