SACP, Cosatu join chorus in wage bill tug-of-war

JOHANNESBURG - The South African Communist Party (SACP) believes the budget will not stimulate economic growth.

The party says cutting the public sector wage bill will have the opposite effect.

Public wage bill: Civil servants easy targets, say unions

According to spokesperson Alexi Mashilo, the cut is going to attack areas needed to stimulate economic growth.

"Truth be told this economy is not going to grow. It is also not going to help us to pay our debt because the cut is going to attack areas we need to stimulate economic growth. So you are not going to have the economic growth you need to service the debt plus the interest."

Cosatu is calling government's proposal to review increases for civil servants. a declaration of war. Cosatu's Matthew Parks speaks to us. Courtesy #DStv403

Meanwhile, Cosatu is also up in arms over the government's plan to cut the public sector wage bill.

The announcement was made by finance minister Tito Mboweni during the budget speech yesterday.

Cosatu's Matthew Parks says its members are angry.

"I cannot describe how angry our members are. The government is blaming workers for the crisis in the state. He is not honest with the nation on what is the real crisis. The real crisis we are facing is 1 percent economic growth rate, 40 percent unemployment decline tax revenue and of course, we lose 10 percent of the budget every year to wasteful expenditure and corruption."

The announcement was made by finance minister Tito Mboweni during the budget speech on Wednesday.

Watch the detailed interviews for more details on this opposition.

Source
eNCA