Pay increases are probably one of the major factors in determining how quickly we recover from the recession and GFM. For industries with export potential, it will also have a marked effect on their global competitiveness.
Will labour take a long view when it comes to wage negotiations this year?
Not likely, by the looks of things.The National Union of Metalworkers of SA (Numsa) will demand a wage increase of 20% across board in the motor sector and three other sectors this year, it announced on Friday.
"This demand is simply about maintaining the 2007 buying power of our members. Workers have experienced a fall in real wages since the last bargaining round held in 2007," said spokesperson Castro Ngobese in a statement.
The union would also negotiate the same one-year-wage agreements for the tyre manufacturing industry, iron and steel houses and at Eskom.
full story from M&G here