Jobs warning an ANC conundrum

New Finance Minister Tito Mboweni hasn’t got off to a great start in his portfolio, by picking a fight with the powerful trade union movement – Congress of South African Trade Unions – with his remarks that there needs to be widespread slashing of jobs both in government and in the parastatal sector.

It didn’t help that Mboweni – the man who should have accurate figures at his fingertips – apparently badly exaggerated the impact of the government salary bill.

Delivering the Kader Asmal memorial lecture over the weekend in Cape Town, Mboweni said the current situation was that “R8 of every R10 goes to salaries in the public service”. He added: “That means we are left with R2 for other services – to fix a clinic or hospital …”

His critics quickly pointed out that the official National Treasury figures show the real figure of civil service pay is about 33% of all government spending.

There was no need for Mboweni to exaggerate the way he did because, even at the lower figure, government salaries take up much too big a slice of its spending. And there is also no doubt that there must be cuts to not only the number in the civil service, but also to some unrealistic pay packages … especially at senior levels.

Mboweni’s comments about power utility Eskom having to trim its workforce by 30 000 or more are also valid and similar over-staffing – and bloated package payments – exists in other state-owned enterprises.

Trade unionists – who have always been close to the governing ANC as part of the tripartite alliance – have warned there will be conflict if Mboweni follows through on his proposals.

It will be interesting to see whether the governing party backs Mboweni or whether it is still in thrall of the unions and the supposed huge number of voters they can bring to the cause.