This 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.
BL Premium reports that the government is forging ahead with plans to trim the unsustainable public sector wage bill, a stance likely to put it on a collision course with its labour allies.
The public servants’ salary bill, which is almost R600bn and represents about 35% of projected annual spending of about R1.67-trillion, is one of the biggest threats to SA’s finances. In a written reply to parliamentary questions, public service and administration minister Senzo Mchunu said on Monday his department and the Treasury had identified numerous human resources-related areas where they could reduce the wage bill. These included granting early retirement without penalty for employees, and cutting performance bonuses. The Treasury has estimated that early retirement could cost about R16bn over the next two years, of which a portion would be funded from the contingency reserve and the balance by the Government Employees Pension Fund (GEPF). Finance minister Tito Mboweni wants to cut the bill by R37bn over the next three years via early retirements and natural attrition, with no additional funds allocated for salaries. The government’s determination to slim down has sparked speculation there will be wholesale retrenchments that will cause tension with labour.
- Read the full original of Bekezela Phakathi’s report in the above regard at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page