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 deputy SA Reserve Bank (SARB) governor Kuben Naidoo warned MPs on Wednesday about worrying wage rises above the bank’s inflation target range of 3%-6%.
He said they raised the prospect of a price spiral with second-round effects on inflation, which could call for tighter monetary policy. Unions are demanding a 6.5% pay rise for public servants and are undertaking a strike ballot this week. In the second quarter, the average wage settlements for sections of the manufacturing sector and the mining, transport and utilities sectors was 6.3%, with the highest of 7.3% being for the leather sector, followed by 7% for textiles and Eskom. Naidoo said the average rise in collective bargaining agreements in the latest Andrew Levy survey, which identifies trends in wage bargaining, was 6.1%. “We are beginning to see that wage increases are starting to be pegged slightly above the inflation target range and that is worrying. If salary increases are not compensated for by productivity gains, then that does lead to inflation, and that would require a stronger monetary policy response,” said Naidoo. The central bank, like others worldwide, has embarked on monetary tightening. Naidoo also expressed concern over the rise in inflation expectations, which could further stoke inflation. Naidoo reported that very low positive growth was forecast, with a contraction expected for the second quarter due to the mining strike, load-shedding and the floods in KwaZulu-Natal. Growth of 1.9% was recorded in the first quarter.
- Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page