BUDGET2020: ANALYSIS: Public servants’ wages no longer sacred in a time of doing more with less By Marianne Merten
Tito Mboweni has gone where previous finance ministers have feared to tread — slashing the public wage bill. The political landmines are about to explode.
And borrowing keeps on rising — to R497.5-billion in 2023 from R407.3-billion in 2020, that was up by just short of R72-billion from just 2019 — because“They are acting like pyromaniacs,” Cosatu parliamentary liaison officer Matthew Parks toldIn reference to the trade union federation’s proposal for government workers’ pensions to offload R250-billion of Eskom’s R450-billion debt: “I’
Late on Tuesday night, Cosatu warned in a statement that it would be “a declaration of war” if this government proposal made its way into the next day’s Budget.Budget2020’s proposed further public wage bill cuts of R54.9-billion next year and R67.5-billion in the 2022/23 financial year would fall under a new three-year wage settlement for which the negotiations are scheduled from June 2020.
“The timing of the proposal, a few days before the adjustments were due to be implemented, speaks of a government that regards public servants as an easy target to resolve its financial woes. It is clear that proposals to the government on how it could curb wasteful expenditure fell on deaf ears and instead of tabling clear proposals on how it intends to address its financial inefficiencies, public servants are made the scapegoat.”
Speaking in the traditional briefing ahead of his Budget speech in the National Assembly, Mboweni maintained a resolution would be found.“If there are more engagements, they should be able to find some form of consensus,” he said in an overall positive response to the Budget: “We are turning South Africa into a construction site. We are going to create jobs”.
IFP national spokesperson Mkhuleko Hlengwa said, “at least the minister was honest”, welcoming the public wage bill cuts. However, he raised caution about the impact not only of departmental spending cuts, but also in the transfers to provinces and local government.
In a low growth, high unemployment and declining revenue environment, the government has few options on how to balance income and spending.“Growth in the wage bill has begun crowding out spending on capital projects for future growth and items that are critical for service delivery,” says the Budget Review. “Government recognises that public service employees should be fairly remunerated, but is obligated to balance compensation demands with the broader needs of society as reflected in the Budget.”
It was something Mboweni also raised in his speech, the need to get value for money. Budget2020 proposed to abolish the “current wasteful subsidy and travel system” and reiterated what had already been raised a year ago in Budget2019 — changes to government cellphone policy and economy-only domestic flights for all (barring exceptional circumstances).
But right now with the need to balance the books, or at least to get the numbers to match on the expenditure and income side, it’s the public wage bill that’s in government’s sights. These cuts needed to be found, as Mboweni put it, “for the credibility of our fiscus… for all our sakes”.
Read more: Daily Maverick
No salary hikes for MPs, judges as Tito Mboweni trims public service wage billPresident Cyril Ramaphosa's administration is headed for a bitter battle with public sector unions after finance minister Tito Mboweni announced plans to reduce the civil service wage bill by R160-billion in the next three years. Overpaid with packages anyway... He didnt trim it. He kept them the same. Big difference Now you just have to get rid of 25% of them!
PSA slam government proposal to review 2020 wage agreementThe Public Servants Association says public servants cannot afford to sacrifice their salary increments. Everyone must become poorer under socialism, except maybe the political elites. Then at some point govt will run out of other peoples money, there will be pain and despair for a period - soul searching. Then come the needed capitalist reforms. This process can take decades. PSA has no moral right to complain on behalf of public servants. PIC invested and lost money at Steinhoff, PSA was there but actually said the PIC will continue to invest at Steinhoff. Let tito buy the Corana and see SA GLOW IN WEALTH GEN; by FUNERAL_parlours, for he don't have the knowledge of the Solution that the president prayed for,,
Public wage bill: Civil servants easy targets, say unionsPublic servants are easy targets in goverment's bid to trim the wage bill. So say labour unions.
'The battle lines are drawn': Cosatu vows to push back against proposed wage cutsThe trade union federation says R160 billion in proposed cuts over three years to the state's wage bill is an 'attempt to dump the bill for industrial-scale looting on public servants'.
BUDGET ANALYSIS: Tito Mboweni’s tight spot — will it be wage savings or a VAT hike?BUDGET ANALYSIS: Tito Mboweni’s tight spot — will it be wage savings or a VAT hike? 🔒
Budget 2020 — Tito squares up to unions with wage cuts - The Mail & GuardianFinance minister warns “we cannot have all things we want at the same time” and tables cuts in things like the public wage bill in a R1.84 trillion budget. Budget2020 Even 🤣🤣🤣 'Even the executives will not be getting salary increase.' tito_mboweni How to cut the cost: 1. Get rid of all deputy ministers. 2. Get rid of House of traditional leaders. 3. Get rid of car and cellphones allowances for all Mps and ministers. 4. Stop paying for Mps accommodations. 5. Stop feeding the Mps.