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.

southafricalogoBusinessLive reports that the Treasury is hoping to hold public sector trade unions to a consumer-inflation-linked pay increase as part of an effort to rebalance public spending.  

Wages and salaries of public servants having been growing at rates higher than inflation and consumed 35% of expenditure in 2017, up from 32.9% 10 years earlier.  Treasury officials say that a strong case was made to officials who sit on the government’s mandate committee and who negotiate the wage agreement that "CPI it must be".  President Cyril Ramaphosa has also been active in meeting the Department of Public Service and Administration and unions to make the case for a CPI-linked increase.  A study by the Organisation for Economic Co-operation and Development in 2017 found that SA had one of the highest wage bills among developing country peers.  The burgeoning public service wage bill has been partly due to higher-than-inflation settlements and partly due to growing numbers of public servants.   In 2016, in an attempt to push down personnel numbers, the government reduced the personnel budgets of national and provincial departments by R10bn in 2017-18 and R15bn in 2018-19.  Employee numbers fell for the first time in 2017.  Wednesday’s Budget Review also raised concern over municipal salaries.

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