For those who might have missed it - IMF reports doom and gloom for SA Economy.
In the depths of the story was an issue that's pretty close to my heart -South Africa's structural problems are holding back growth and job creation, and leave it increasingly vulnerable to emerging risks, the International Monetary Fund warned in its 2013 country report on South Africa on Tuesday.
Absolutely.The IMF said "limiting the practice of extending collective bargaining outcomes to firms that did not participate in the bargaining – especially SMEs – would increase wage flexibility and reduce barriers for entry for [small and medium enterprises]".
But it doesn't stop there, of course. The strike culture in SA is murdering our economy, and well on the way to ruining a brighter economic future for all.
While searching for a breaking story on BMW and their plans for their local operations in S.A. (it would seem after 8 weeks of strike related disruptions in the motor industry they've had about enough of our cr@p) which doesn't seem to have reached local news yet, I came across this story - COSATU is dumbfounded by IMF report, or more particularly, Patrick Craven is.
What fantastic economic theory!The IMF released its Article IV report on South Africa on Tuesday. It was compiled after consultations between the country and the IMF between May 22 and June 4. The IMF holds bilateral discussions with its members every year. In the report, it raised issues about the economy, growth and job creation. The report called for social bargaining, which should include "wage restraints" in return for hiring commitments, measures to enhance product market competition, and improved public services.
Craven said: "This in essence, means an 'egg and bacon' agreement, where the business 'chicken' commits to lay eggs for breakfast and calls on the worker 'pig' to lay down its life to supply the bacon." This would lead to a downward spiral of the already meagre living standards of most workers, bringing lower levels of demands for goods and services, which would lead to more jobs being lost.
Craven said the IMF's view was at odds with research done by the International Labour Organisation, which argued in favour of a wage-led growth strategy which was likely to generate a more stable growth regime for the future. Cosatu urged the government not to be misled by the IMF's policies.
"Rather stick with the ANC's proposal for a radical economic programme for the second phase of the transition, and engage with the economic proposals tabled at the recent alliance summit, on which there was considerable agreement between Cosatu, the ANC and SACP," said Craven.
Unfortunately it doesn't deal very well with the possibility that good, egg-laying chickens wander off elsewhere and there are fewer eggs being laid. Let's not forget where wages and salaries come from, Mr. Craven.
So what will the "pigs" do when the "chickens" are running low?
On current form, I take it, just carry on eating them.