No to higher state wages

As we move into the wage negotiation season, which will eventually lead to strike season, we need to understand that our economy is not thriving, and that institutions such as universities — and for that matter our government — do not have an abundance of spare revenue to justify double-digit increases.

Universities were forced into moving away from outsourcing to in-sourcing. This created extra costs including the on-boarding of managerial teams. The extra costs have to be shouldered by the universities, which are already suffering from severe underfunding. Unfortunately, higher and higher wage demands will lead to fewer jobs, and retrenchments. The salary bill for public servants in SA is more than 50% of government revenue. We are just about to enter into public sector wage negotiations, and state employees are demanding another healthy increase of 10% to 13%. SA cannot afford the current salary bill, let alone a double digit increase.

These increases are being justified by the trade unions by pointing to the amount of corruption. They argue that if government can afford theft on a wholesale basis without consequences, it can easily afford to give honest public servants a double digit increase.

In comparison to other countries, our public sector is severely bloated, and jobs in the public sector have far better terms and conditions than the majority of jobs in the private sector. The government needs to exercise restraint, but that is something it is not accustomed to.

Michael Bagraim, MP

DA labour spokesman