President Cyril Ramaphosa says talks are ongoing on ways to curb the public sector wage bill, which is government’s greatest expenditure.
“These are trying and testing times. We are not saying everybody’s salary [must] be cut in half. We are saying it is the rate of the increase that we should look at once again,” he said.
The President made these remarks at a meeting with the South African National Editors Forum (SANEF) on Tuesday.
SANEF is a non-profit organisation, whose members are editors, senior journalists and journalism trainers from all areas of the South African media.
The President met with SANEF to respond to some of the pressing issues facing the country.
President Ramaphosa's remarks follow Finance Minister Tito Mboweni’s announcement that government will adjust the wage bill by about R160 billion over the medium-term, with the aim of saving R37.8 billion in the next financial year.
Mboweni made the announcement during his Budget Speech in February.
Following the Minister’s remarks, labour unions expressed concern, and highlighted other avenues to curb government’s expenditure and debt.
“The interesting thing is that there has not been a complete rejection of talking about this. The unions have said this was [their] understanding but [they] are willing to talk, and the talks are now going to ensue.
“Indeed, the wage bill is really the greatest expenditure. Unions have also been really proactive, which is what I have appreciated. They don’t want to be the sacrificial lamb and they have said there are a number of other areas where we can look at savings,” said the President.
Labour union Cosatu highlighted corruption and wasteful expenditure as possible areas for government to realise savings.
To this end, President Ramaphosa said work is underway to look at various ways to curb spending.
“We have actually developed a huge annexure of looking at a variety of savings, including reducing international travel and getting people who often travel business class to travel economy class,” he said. – SAnews.gov.za
