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BLSA’s Mavuso suggests wage freeze is good for the economy

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BLSA’s Busi Mavuso has reiterated her belief that the contentious wage freeze is important in reviving the economy and employment in the long run, despite the opposition from some.

The Chief Executive Officer (CEO) of Business Leadership South Africa, Busi Mavuso took to Twitter on Monday, 7 December 2020, to circulate her weekly newsletter. The newsletter focused on the recent lockdown update by President Cyril Ramaphosa and the contentious wage freeze.

Mavuso echoed the sentiments of other business minds, who welcomed the nuanced approach to Ramaphosa’s attempts to flatten the curve. This was because of the fear of a regression to stricter national rules and regulations, which have already negatively affected the economy.

However, she begs to differ with the President on the proposed wage freeze for public servants, as announced by Minister of Finance, Tito Mboweni. There has been much back-and-forth on the matter, with trade unions expressing strong opposition to the proposal, ultimately prompting speculation that the ruling party is buckling under the pressure of possibly losing its trade union endorsement.

In highlighting the merit in the proposed wage freeze, Mavuso stated, “It is incredibly important for the country’s prospects for government to cut its expenditure and prevent debt from exceeding the gross domestic product (GDP).”

See the post below.

Sabelo Makhubo

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