SOUTH Africa’s government sought a series of commitments by labour unions and business, ranging from lower entry-level wages to an agreement to boost investment, as part of a plan to revive the nation’s struggling economy.
The proposals angered both parties because they contain stipulations they aren’t willing to meet and want the government to do more to confront immediate problems such as power outages and state corruption, according to people familiar with the matter who asked not to be identified because the talks are private.
The document, seen by Bloomberg, concedes that previous commitments between the parties have not achieved the desired results.
“Failure on the part of the social partners to confront these issues will yield the same results as previous compacting efforts,” the government said in the document.
Work on agreeing the social compact is still under way, and differences and their resolution are part of that process,
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