The Congress of South African Trade Unions on Thursday lashed out at Finance Minister Tito Mboweni’s 2020 Budget Speech, saying government’s plan to cut the public wage sector bill was ‘silly’ and ‘tiresome.’
“COSATU finds the government’s continuous attacks on public servants silly and tiresome. Little recognition is given to the conditions facing public servants, like being overworked and underpaid,” the trade union federation said.
Cosatu’s general secretary Bheki Ntshalintshali said the union rejected the government’s narrow fixation with the public service wage bill.
He said the fixation with the public sector wage bill was ‘nonsensical’ when considering the fact that it has been stable for the past 10 years at 35% of the government consolidated expenditure, in line with international standards.
“The cuts have severe gender implications because the public service has been has been an important source of good jobs for women. This feeble and inflammatory budget is a clear message to workers that the battle lines are drawn and the attempts to shift the burden of the crisis to them is in full swing,” said Ntshalintshali.
Tabling his budget, Mboweni said government would cut R160 billion off the public wage bill over three years, which will see consolidated compensation spending contract by about one per cent in real terms over the medium term.
“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,” Treasury said in its 2020 budget review document.
“Civil servants’ salaries have grown by about 40% in real terms over the past 12 years, without equivalent increases in productivity. Growth in the wage bill has begun crowding out spending on capital projects for future growth and items that are critical for service delivery.”
Before tabling his budget on Wednesday, Mboweni told the media that he was confident that government and trade unions will find each other for the credibility of the fiscal stance.
While government departments are vehemently opposed to his plan to cut salaries, Mboweni insists he has political support from his Cabinet colleagues to cut it.
Meanwhile, Cosatu has welcomed the commitment to increase infrastructure expenditure.
“We welcome the efforts of the Department of Trade, Industry, and Competition to revitalise industries. We take note of the commitment to table various legislation to grow the petroleum, gas, minerals and transport sectors and SOEs. The release of the Public Procurement Bill is long overdue but given the extent of our economic crises, it is deeply worrying to note the lack of urgency with regards to fast-tracking these legislative interventions.”
(Compiled by Charles Molele)
