Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

imfBDLive reports that the IMF has warned that the "bloated government wage bill" will have to be slashed, failing which SA will be forced to institute across-the-board budget cuts that would damage growth and hurt the poor.  

The IMF, which has cut its forecast for SA’s growth to 0.1% for 2016 and 1.1% in 2017, raised questions in a report about the country’s ability to meet the fiscal consolidation targets set out in the February budget given the weaker growth outlook.  The organisation’s economists described public sector compensation in SA as "generous", with state wages representing 184% of per capita GDP — well above the emerging market average. The IMF report urged "stricter monitoring of wage and personnel decisions across all spheres of government and a reassessment of the institutional structure for wage negotiations".

  • Read this report by Hilary Joffe in full at BDLive

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