Unions’ greed in wage negotiations adds to SA’s economic downfall
THE REPORT “Hikes will push up job losses” (Weekend Argus, August 15) refers. Adenaan Hardien, chief economist at Cadiz Asset Management, maintains that the wage demands from trade unions would ultimately result in higher wages for some, and more job losses for others, accounting for the far higher Stats SA unemployment figure of 23.6, if the discouraged workers numbering more than 300 000 were included.
Hardien warns that wage increases when the economy is as weak as it is at present, are likely to worsen an already disastrous situation. This injunction is echoed by Professor Ben Smit, director of the Bureau of Economic Research at the University of Stellenbosch who says that to provide high wage increases employers will have to cut back on employment to keep the wage bill manageable.
Wage increases above 10 percent will make things worse. If adjusted downwards with inflation, things will be better.
Now having digested all that, I cannot resist the thought that the trade unions are actually working against the well-being of the nation.
It is they who are raising the expec- tations of workers, fuelling the entitlement mindset and endangering the future of the country by persisting in actions that are detrimental to its well-being.