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Thread: How can we keep going with above inflation pay increases?

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    Site Caretaker Dave A's Avatar
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    How can we keep going with above inflation pay increases?

    I recently got my notice from the National Bargaining Council for the Electrical Industry infrming me that pay increases for my staff will be 8% this year. I believe the contract cleaners are on a 8% increase too. Then there's the truckers... 9.5% if memory serves.

    My thought was this - if the official government inflation target range is 3-6%, GDP grows at about 4% and government facilitated pay increases pretty much start at 8%, sooner or later we aren't going to be able to pay the bills, let alone all these jobs this economy is supposed to create one way or another.

    Seems I'm not the only one who can see a problem in the maths. Mike Schussler is saying the maths doesn't add up too, although the ANC doesn't seem interested in taking it seriously.

    Cape Town - For the second time in as many months ANC parliamentarians have pooh-poohed serious warnings about the country’s current economic direction.

    On Tuesday ANC MPs remonstrated with one of South Africa’s top economists for his “exaggerated” figures on job creation, social grants and the future “wealthy” public service.

    The economist, Mike Schussler of Economists.co.za, made these assertions in a submission on the national budget to a joint sitting of the parliamentary finance committees.

    He sketched a sombre picture of the economy’s ability to meet government’s ambitious job-creation targets and warned about high wage increases in the public service and the little protection afforded small and medium-sized (SME) enterprises.

    But these warnings were scorned by the ANC.

    Last year ANC MPs also angrily repudiated warnings by the International Monetary Fund (IMF) that reform was needed in the country’s wage-negotiation structures if the country was to achieve 6% or 7% growth (to create jobs) in the short term.
    Obviously these MPs are aware of some law of economics that Mike hasn't learnt yet. Last I checked money doesn't grow on trees.

    So any chance these wise MPs could let the rest of us in on their economic miracle secret?
    The trouble with opportunity is it normally comes dressed up as work.

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    Agreed Dave A. We need to set up a National Anti-Increase Concil. Increases are only given if earned. Thats what this country doesnt understand. WE DONT GROW MONEY TREES HERE.. the climate is no good.

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    Its politics, not maths we're dealing with. Those making the rules and decisions aren't interested in maths problems which will only start becoming an issue in a few years or decades time. Keeping the masses happy now is more of a concern.

    Yes it is short sighted.

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    Site Caretaker Dave A's Avatar
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    Of course - they're politicians! Bullsh*tting their way through life is how they earn their living. Reality has nothing to do with it.

    I feel like such a twit
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member AndyD's Avatar
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    Sounds like the ANC is using Enron book keeping techniques but as pointed out, the math not adding up has got 'somebody else s problem' written all over it. This bunch of idiots in parliament will be long gone by the time the sh1t hits the fan, the people who happen to be there at that time can just blame it on the legacy of apartheid.....so....no worries.
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    Diamond Member wynn's Avatar
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    Money won't grow on trees but MONKEYS do
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    Email problem Martin Kotze's Avatar
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    Increase rates for 2011

    hi all

    just want to know when must the rates be implemented 8 and 7 Percent increase and is this a garenteed increase if so can any one send me solid proof as this will help tremendously

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    Site Caretaker Dave A's Avatar
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    Martin, does your industry have a bargaining council?
    And if yes, which one?
    The trouble with opportunity is it normally comes dressed up as work.

  9. Thanks given for this post:

    Martin Kotze (05-Dec-11)

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    Time for a change in Government?
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    Email problem Martin Kotze's Avatar
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    Electrical contracting Board Registration No TN1-004503 I would appreciate it if I can get a answer and proof

    Thanx

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