Cape Town - South African salary increases and pay for top earners may be affected by a proposed new government initiative.
On Tuesday, Economic Development Minister
Ebrahim Patel unveiled government's New Growth Path economic strategy, which aims to create five million jobs over the next decade.
This will be achieved through a number of iniatives, assisted by a broad pact between business, labour and government aimed at fostering employment creation while enhancing competitiveness and social equity and development goals.
Addressing the National Assembly's economic development committee via video-link from Pretoria, Patel said such a pact would include commitments on wages, prices, savings and jobs.
There was a proposal, for discussion with business and labour, for moderate wage settlements linked to clear commitments by business to save jobs, create new jobs and address inequality, he said.
The document proposes "moderate wage settlements" for those earning between R3 000 and R20 000 a month, "possibly to inflation plus a modest real increase", with "inflation-level increases for those earning over R20 000 a month".
Further, it suggests that pay and bonuses for senior managers and executives earning over R550 000 a year be capped.
He said the document reflected government's commitment to prioritising employment creation in all economic policies.
Patel told members that if the key target of creating five million new jobs by 2020 was achieved, unemployment would drop by 10 percentage points, from a current 25% to around 15%.
Among other things, the New Growth Path identified investments in five key physical and social infrastructure areas: energy, transport, communication, water and housing.
"The centrepiece of the New Growth path is a massive investment in infrastructure and people through skills development, together with smart government and better co-ordination with the private sector and organised labour so that we can achieve our national goals," Patel said
Responding to a question on the "massive" investment needed to achieve the new strategy's targets, Patel said Finance Minister
Pravin Gordhan would address such issues in his next Budget in February.
He indicated, however, that some of the funding would come from off-budget sources.
In this regard, government was looking at a range of business funding models, including, for example, the Industrial Development Corporation (IDC).
Also being looked at were development bonds, a proposal floated by the ministry earlier this year as a means of financing such economic growth.
The document sets out programmes for the creation of jobs in sectors such as the so-called green economy, including solar and wind power technology; in agriculture, through interventions to improve efficiencies; and in the mining sector.