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Public sector demand will bust budget by R50bn

Ceding to the public sector unions’ wage demands would that mean personnel costs and interest repayments would be more than 50% of the state’s budget over the next three years.

An anonymous senior official involved in the negotiations said a 10% across-the-board hike would be likely to add R50bn to state wage costs.

This is contrary to Finance Minister Nhlanhla Nene’s contention that the hike the unions are insisting on would add R20bn to the government’s remuneration bill.

The chief negotiator for Congress of South African Trade Unions-aligned unions‚ Mugwena Maluleke‚ said that their stance is that “the state can find the money for the increase and retain skilled public servants” if it stems the amounts “wasted on expenditure and through corruption”.

 

 

 

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