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Step 6 of Helen Zilles "Eight Things we must do to Beat Poverty...
you can find the whole article here:
6. Ensure Sound Macro-Economic Fundamentals
If we are to succeed in growing our economy, we need to manage it properly. And this means ensuring that we have the macro-economic fundamentals in place – low inflation and a well managed fiscus.
The recent public sector strike has brought into sharp relief what can happen when a government allows itself to be held hostage by unions. The entire economy – and the well-being of all (including workers, but particularly the unemployed) is threatened. It is clearly untenable to meet demands for public sector wage increases that amount to almost three times the inflation rate.
The real tragedy is that the battle between government and the unions is not primarily about wages – that is a mere proxy for the broader power struggle within the tripartite alliance. Workers (many of whom do have legitimate grievances over pay especially in the context of profligate self-enrichment by the political elite) are mere pawns in this game. It is primarily about politics.
This explains why two of the biggest unions, Sadtu and Nehawu, pre-empted the latest round of wage negotiations by rejecting the offer out of hand -- before negotiations were even concluded.
As it is, the 7.5% wage offer which is currently on the table would come at a cost to the public purse of around R7 billion. Nobody quite knows how government will pay for this, and nobody in government or organized labour seems to have calculated the real costs of this increase.
The fiscus is already strained and our budget deficit, which stood at 7.3% in this year’s budget, is now likely to widen further next year. The money will have to be found elsewhere which means either sourcing money from other budget allocations such as those for essential basic services, raising taxes (thereby suppressing growth further), or going deeper into debt and passing on the costs to future generations. It is also likely to lead to lay-offs as government departments strain under the weight of the increased wage bill.
you can find the whole article here:
6. Ensure Sound Macro-Economic Fundamentals
If we are to succeed in growing our economy, we need to manage it properly. And this means ensuring that we have the macro-economic fundamentals in place – low inflation and a well managed fiscus.
The recent public sector strike has brought into sharp relief what can happen when a government allows itself to be held hostage by unions. The entire economy – and the well-being of all (including workers, but particularly the unemployed) is threatened. It is clearly untenable to meet demands for public sector wage increases that amount to almost three times the inflation rate.
The real tragedy is that the battle between government and the unions is not primarily about wages – that is a mere proxy for the broader power struggle within the tripartite alliance. Workers (many of whom do have legitimate grievances over pay especially in the context of profligate self-enrichment by the political elite) are mere pawns in this game. It is primarily about politics.
This explains why two of the biggest unions, Sadtu and Nehawu, pre-empted the latest round of wage negotiations by rejecting the offer out of hand -- before negotiations were even concluded.
As it is, the 7.5% wage offer which is currently on the table would come at a cost to the public purse of around R7 billion. Nobody quite knows how government will pay for this, and nobody in government or organized labour seems to have calculated the real costs of this increase.
The fiscus is already strained and our budget deficit, which stood at 7.3% in this year’s budget, is now likely to widen further next year. The money will have to be found elsewhere which means either sourcing money from other budget allocations such as those for essential basic services, raising taxes (thereby suppressing growth further), or going deeper into debt and passing on the costs to future generations. It is also likely to lead to lay-offs as government departments strain under the weight of the increased wage bill.
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