Solidarity is already laying the ground for this year's round of wage negotiations. Justified or not, there is something of a chicken and egg problem here. Each increase is inflationary and one would hope that everyone will be doing their bit to keep in line with government's inflation targets.

Clearly, corporate top management's penchant for personal self enrichment over the last few years isn't going to help the cause of business much in these negotiations.

Solidarity says the scene this year is set for significantly larger salary increases for South African workers than last year.

The trade union attributes this to the fact that the inflation rate has exhibited a continuous upward trend since the beginning of 2006.

Solidarity spokesperson Jaco Kleynhans said increased food inflation, which currently stands at more than 10 percent, is a particularly worrying aspect.

"We anticipate that 2007 will be a year of strenuous negotiations, partly because of higher worker demand due to deteriorating financial circumstances, and partly because large increases in the remuneration of top management lead to friction in the wage negotiations process.

"Companies will have to start telling their workers that alternatives to the infamous share option scheme are being investigated. If companies do not act in a more transparent manner this year, the discontent and impatience of workers could make for extremely arduous negotiations," Kleynhans said.
full story from Business Report here