'The battle lines are drawn': Cosatu vows to push back against proposed wage cuts

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'The battle lines are drawn': Cosatu vows to push back against proposed wage cuts
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'The battle lines are drawn' | Cosatu says it will push back against proposed wage cuts | Fin24

Trade union federation Cosatu has labelled the 2020 Budget"provocative", saying that instead of a clear diagnosis of the problems facing SA, National Treasury attempted to"dump the bill for industrial-scale looting on public servants".. Treasury proposed cuts of R37.8 billion in 2020/21, R54.9 billion in 2021/22 and R67.5 billion in 2022/23.

Some form of cut to the state's wage bill was largely anticipated by analysts, who noted ahead of the Budget that the state had struggled to reduce spending by other means to stop the gap caused by weaker tax revenues. "These public servants support, on average, seven unemployed extended family members. The fixation with the wage bill is nonsensical when considering the fact that it has been stable for the past 10 years at 35% of the government consolidated expenditure, in line with international standards."

Masondo said that at these conversations the state argued that a 2018 wage agreement for public sector workers, which included above-inflation increases, had had a"huge impact on our ability to employ more workers".Budget 2020 in a nutshell | No major tax changes and ambitious proposal to cut state wage bill

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