Wage cuts: The spoke in Cosatu’s wheel
The Treasury surprised labour unions last week by tabling a motion to review the 2018 public sector wage agreement. They’re unlikely to reach an easy agreement
Since Tito Mboweni set the cat among the pigeons last week with his announcement of a review of the 2018 public sector wage agreement, the political and administrative fallout has happened thick and fast.
The public sector wage bill is the single largest component of government spending — set at R639bn for the 2020/2021 financial year. As it has swelled over the years, it has crowded out spending on capital projects for future growth as well as items crucial for service delivery, President Cyril Ramaphosa wrote in his weekly presidential newsletter this week.