SA labour declares ‘war’ over govt plans to cut wage bill

JOHANNESBURG  – The Public Servants Association said it was concerned about government plans to cut the civil service wage bill in a bid to reduce South Africa’s budget deficit and shore up the struggling economy.

The Federation of Unions of South Africa (FEDUSA) also slammed the proposal, declaring war on finance minister Tito Mboweni and demanding that the matter be taken immediately to the Public Sector Coordinating Bargaining Council (PSCBC).

Presenting the 2020 budget to Parliament on Wednesday, Mboweni said the government would decrease its wage bill by about R160 billion over the medium term as part of efforts to lower spending and narrow a budget deficit projected at 6.8 percent of gross domestic product for the 2020/21 financial year.

In a statement late on Wednesday, the PSA said it failed to understand what it called the “continued attack on public servants’ salaries as a key focus to save the South African economy”.

“The PSA cautions the minister and government that efforts aimed at minimising state expenditure should not come at the expense of those public servants who render services under enormous challenges,” it said.