Today's Labour News

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daBusinessLive reports that the Democratic Alliance (DA) wants a one-year freeze of public servants’ salaries and performance bonuses and a reduction of the Cabinet as ways of cutting government expenditure.  

The one-year freeze would save R62bn, while reducing the size of the Cabinet to 15 ministries would save about R13.8bn over the next three years.  The compensation of public servants is projected to be R587bn in 2018-19.  DA leader Mmusi Maimane and MP Alf Lees outlined the party’s budget proposals on Tuesday ahead of Finance Minister Malusi Gigaba’s tabling of the national budget on Wednesday.  Maimane said the "new dawn" heralded by President Cyril Ramaphosa required a new direction in the economy and a change in policy to ensure rapid economic growth.  He also said that any tax increases, in particular the mooted increase in value-added tax (VAT), would be rejected.  The DA was firm in its rejection of any expenditure on a nuclear programme and on the national health insurance (NHI) in its current proposed form.  The DA’s package would also see small businesses employing fewer than 250 employees being exempted from complying with restrictive labour legislation, and privatising state-owned enterprises such as South African Airways and Eskom.

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