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BUSA believes hard decisions need to be made on Public Sector Wage Bill

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BUSA has released a statement based on the research it conducted on the Public Sector Wage Bill, suggesting that hard decisions need to be made to save the economy.

Business Unity South Africa (BUSA) took to Twitter on Monday, 9 November 2020, to circulate a statement detailing the findings from its research and report on the Public Sector Wage Bill. The report was a collaborative effort with Black Leadership South African (BLSA).

One of the things that the report acknowledged was that the increasing wage salaries for the public sector would negatively affect the economy and business. Moreover, it also touched on the wage costs relative to the economy’s growth. It stated, “[The] increase in wage costs from 2006-2019 outstrip the rate of economic growth and productivity.”

It then added, “The downward adjustments to the payroll can be made either by reducing wages, reducing headcount, or doing both. These are very difficult decisions, but the country has jumped off the cliff and we need to achieve a soft landing.”

See the post below.

Sabelo Makhubo
s.makhubo@politicalanalysis.co.za

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