POLITICS

Gordhan has wrong end of stick on salary hikes - SAMWU

Union says double digit wage increases need to fight poverty

Gordhan must think again about workers salary hikes

It is in the best interest of the country to cap salary hikes of CEO's and Senior Managers in the Public Sector to 5% not the ordinary workers. It is bizarre that Finance Minister Pravin Gordhan in his Medium-Term Budget Policy Statement proposed that Public Sector future pay hikes must be capped at 5%.

This proposal undermines the democratic centralised bargaining we have established, does not make much sense and would not save Government much money either.

The real problem we should be focusing our energy on and what would save the Government money is; curbing fruitless and wasteful expenditure especially by Politicians, CEO's and Senior Managers in the Public sector. Efficient and economic use of public resources must be our focus, instead of proposing meagre salary hikes for the toiling masses, working to ensure better service delivery.

If the public sector continues to give meagre salary hikes to workers, the private sector would soon turn around and say they are not giving any form of salary increases to employees.

In a country where half of households suffer from food poverty, workers deserve decent annual salary increases. Contrary to what Minister Pravin Gordhan has being saying - we believe there is nothing wrong with demanding double digit increases. In fact with such grave poverty witnessed in our country, workers ought to demand nothing less than double digit increases.

The Naledi research report presented to the COSATU Central Committee this year and what Pravin Gordhan did not tell you in his Medium-Term Budget Policy Statement; is that REAL monthly wages of workers declined by 23%, from R3558 to R2744 per month or 2.6% per annum between 1995 and 2005.

In the face of these glaring statistics the Public Sector must regulate CEO's salaries and Senior Managers and not the average workers, who are already burdened with increases in prices of basic necessities, with no end in sight.

Statement issued by Tahir Sema, SAMWU National Media and Publicity Officer, October 26 2011

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