CCCI CALLS FOR FREEZE ON CIVIL SERVANTS’ SALARIES | AfriTV Online

A wage and salary freeze on all civil servants will answer those who correctly point out that they have escaped economic realities, according to the Cape Chamber of Commerce and Industry (CCCI).   One of the more significant signals in Finance Minister...

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CCCI CALLS FOR FREEZE ON CIVIL SERVANTS’ SALARIES

Published by: A. Odean
10/31/2020 02:44 PM
Minister of Finance Tito Mboweni delivered the Mid Term Budget speech in Parliament in South Africa
Minister of Finance Tito Mboweni delivered the Mid Term Budget speech in Parliament in South Africa

A wage and salary freeze on all civil servants will answer those who correctly point out that they have escaped economic realities, according to the Cape Chamber of Commerce and Industry (CCCI).

 

One of the more significant signals in Finance Minister Tito Mboweni’s mid-term budget statement this week was not the R10 billion going into the South African Airways (SAA) money pit which, despite appearances, is to keep our status as a good credit risk, CCCI president Janine Myburgh said in a statement. “It was when he said a salary and wage freeze on the civil service should be a consideration,” she said.

 

Mboweni had stated that consideration should be given to the proposal for across-the-board compensation pay reductions to management level positions across national, provincial and municipal governments, state-owned entities, and other senior public representatives. Considering something did not mean that it would happen, Myburgh said.

 

But it was at least recognition that the army of civil servants spent money that those in the private sector made. “Should a wage and salary freeze be imposed on all civil servants it will answer those who correctly point out that they have escaped economic realities. And, since the public servant salary bill absorbs an enormous proportion of tax revenue it has to shrink if we are to avoid a debt trap. Not that the trade unions will agree, of course.”

 

Municipal rates, taxes, and their payrolls had reached levels without regard to this reality. Even in Cape Town, which harboured about 27,000 civil servants, increasingly irritated ratepayers had signalled their discontent by withholding their rates and service charges, even those in seemingly-wealthy suburbs.

 

Ratepayer discontent was a countrywide phenomenon and the reasons were obvious. Last year, municipal spending increased by 12.2 percent – roughly double the inflation rate – and it was largely driven by employee costs according to Statistics SA, Myburgh said.

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