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SowetanLIVE’s sister publication Business Day reported that Cosatu would discuss, among other things, the state’s failure to implement the pay deals.
The government has refused to implement the latest tranche of a three-year salary agreement signed at the public sector coordinating negotiating council in 2018 for 1.3 million public servants, because it does not have the money to do so.
Implementing the deal will cost R37.8bn.
The Intellidex report found that:
- South Africa’s public service was not large in per capita terms, but it was unusually well paid compared to a basket of other countries;
- public sector wage increases as a percentage of tax revenue had grown from 31% before the global financial crisis to 41% in 2009/10, in the face of a global slowdown, and had stabilized at around 37%;
- the average remuneration of civil servants in South Africa was high by international standards, compared to private sector employees and GDP per capita; Y
- Compensation expense increased from R154bn in 2006/07 to R518bn in 2018/19, an inflation-adjusted increase of 78%, while increases in workforce increased by 22%.
“Busa commissioned this work because we believe that SA needs an objective set of data that can inform the commitment between the government, the companies and the workers to enable a public service that is sustainable and productive and that is remunerated accordingly,” said Coovadia.
Busa’s economic policy committee chair Roger Baxter said the recent medium-term budget policy statement showed SA’s fiscal trajectory to be unsustainable.
“We have run out of fiscal track as a country. We are in a massive fiscal crisis. We are on the brink of that crisis, ”Baxter said.
Coovadia said that if the costs of public salaries are not reduced, the country will go into serious debt.
“We are at that stage where these decisions have to be made. There must be strong leadership from the president down. They need to see this as a matter of national interest. “
TimesLIVE
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