Fin24

Salary freeze to include public sector

2012-10-18 08:45

Johannesburg - President Jacob Zuma's proposed freeze on salary increases for one year would apply to both the private and public sector, Economic Development Minister Ebrahim Patel said on Thursday.

"The announcement by the president covered both the private sector as well as the public sector... so it would certainly include the public sector," Patel told SAfm.

He was responding to a question posed by listeners on whether Zuma would also take a pay hike freeze.

"We've got move beyond the cynicism," said Patel.

"Everybody must show some restraint. We've got to do it in the public sector, we've got to do it in the private sector."

The minister was speaking after Zuma held a meeting with business, labour and civil society on Wednesday to discuss how to recover investor confidence in the economy.

This was where Zuma reportedly called on all CEOs and executive directors in the public sector and senior executives in the public sector to agree to a freeze on increases in salaries and bonuses over the next 12 months.

Patel said: "The intention (of the proposed freeze)... is to respond to an enormous frustration that exists among sections of the workforce at the high income inequalities in South Africa.

"If we want to rebuild the economy... and act with one vision, we need a sense of shared responsibility.

"So this is an important symbolic act."

Patel said during the discussions, "all parties recognised that our current collective bargaining system is broadly sound...

"At the same time, very legitimate grievances have emerged during this period."

Zuma called the meeting in a bid to end a wave of violent wildcat strikes that has hit the country in the past weeks, sparked by the shooting of 34 striking miners by police at the Lonmin [JSE:LON] platinum mine in Marikana, Rustenburg in August.

 

Comments
  • maserame.kale - 2012-10-18 08:53

    Freeze yours first Mr Pres. Freeze your annual weddings and the Nkandla project.

      Poloyatonki1.lee - 2012-10-18 09:08

      He must also freeze corruption...

      JaredVN - 2012-10-18 09:25

      I'd like to see the government trying to tell the public "servants" unions that there will be no increases. They will go beserk and burn down everything in sight (hopefully the Receiver of Revenue's offices too...)

      erich.goosen - 2012-10-18 09:28

      Sir, please define who are going to make these sacrifices? Does it include Ministers anbd their Deputies, does 'salary increases' include public funds spent on upgrading privately-owned homes used by the President'. (And this year's Nobel proce for audacity is awarded to..... (guess who).

      bob.mcmillen.564 - 2012-10-18 09:36

      maserame, Zuma has got it half right this time, the problem does not particularly lay with the senior executives and CEO's, they are not the ones that are striking and bringing the economy to it's knees, it's the workers that are doing the damage, the salary freeze should be for everyone,say maximum 8% for the next twelve months, by law, the living conditions at mine hostels etc is a seperate issue, this must be looked at by a seperate body, if the conditions are unacceptable they must be upgraded within a stipulated time scale, otherwise the relevant company must face heavy fines, there is far to much focus on this socialist attitude where the salary gap must greatly reduce, do you think it's fair that a English Premier League footballer can earn upto 250,000 pounds a week, over R 3,000,000.00 per week, no it's not.

      p.borchard - 2012-10-18 09:41

      bob.m - by all means, upgrade the hostels - but when (not if) the miners damage ANYTHING - throw them out on the street. As a rule they have absolutely no respect for anything they get for free.

      squeegee.pilot - 2012-10-18 09:45

      Sigh.... Great idea, but Zipper has zero credibility. This is like Lance Armstrong saying 'Don't do drugs"...

      handy.andy.3990 - 2012-10-18 09:59

      Zuma - if you want investors confidence, don't tell them you are going to freeze their salaries. Show stability, get labour under control, sort out education and for Gods sake, stop wasting our money on you elaborate lifestyle (Nkandla??!!!!)

      heathway.master - 2012-10-18 10:09

      Excellent suggestion for Public Service. I was stated that levels of efficiency & productivity in the civil servants are 55% lower than the private sector, yet they earn 45% higher salaries compared with the private sector. The financial commentator said all Government Departments were in a total mess, but the two requiring special mention were the Departments of Education and Water Affairs. Education achieved 30% of targets, whilst Water Affairs achieved 6% of set targets. Notwithstanding the atrocious performance, senior management awarded themselves millions upon millions of rands in annual performance bonuses. So yes Zuma, freeze all public service salaries for two years, but leave the highly efficient and productive private sector alone. Reminds me of Gideon Gono, chief of the Zimbabwe reserve bank. When inflation in Zimbabwe reached 1 trillion %, his answer was to impose a price freeze on all goods in Zimbabwe. Inflation was due to his 24 hrs printing of money, as Zimbabwe was totally insolvent. Any trader who increased prices was immediately arrested and imprisoned. Within 2 weeks, all shop and supermarket shelves were completely empty, as traders could not afford to restock, as they had lost so much money. With the super inflation, contactors quotations were valued for 2 hrs, and fees had to be paid in full before any work started, Cheques were not accepted, as after the 2 days clearance period, their value had reduced to zero.

      Vince.York - 2012-10-18 11:02

      Feel the bite of 'no longer veiled' Nationalism. Do as we say but not as we do! (Just give us all your money).

  • joahan.smal - 2012-10-18 08:53

    Patel, you want to tell me how my business ownership must be structured and who I am allowed to employ or not while the government's money matters are in shambles. Now you also want to tell me that I am not allowed to give salary increases. I have one hand with five fingers for you. Shall I suggest a combination for you to choose?

  • marie.salzwedel - 2012-10-18 08:55

    SAYS THE GUY THAT IS SPENDING MILLIONS OF TAX PAYERS MONEY ON NKANDLA!!!!

  • Brad - 2012-10-18 08:56

    "So this is an important symbolic act." Oh please. If you believe the rank and file cretins will give two hoots about symbolism, you've got another thing coming. Freeze what you like...they will still be rioting, looting and murdering a year hence.

  • michelle.snodgrassvanderbank - 2012-10-18 08:56

    Well, I hope all other increases frease for a year, like Petrol and food increases too

      napolita.kio - 2012-10-18 09:04

      Better, freeze the manipulation of inflation figure!! One does not have to be a Marikana miner to know that the true inflation in nowhere near 6%!!

  • freddie.mostert.3 - 2012-10-18 08:56

    Ai-ai, so more strikes and less productivity, sounds like death to an already ill economy! You go Zuma!

  • david.questioner - 2012-10-18 08:56

    A very important symbolic act would be for Zuma and his cronies to take a 50% pay cut, not propose everyone else freeze their salaries shortly after approving his own increase!

  • trevor.pietersen.3 - 2012-10-18 08:57

    How is it YOU get an increase...but YOU do no work...you ALL..just STEAL

  • Ken - 2012-10-18 08:57

    Sure Patel this idea will soar like a lead balloon in the private sector. Your idea wouldn't work even with legislation as those who miss out this year will want double increase the following year. You have NO ideas at all but are simply attempting to buy some more time.

  • smahlaba - 2012-10-18 08:58

    This is a bit crazy.

      steve.ritchie.739 - 2012-10-18 09:28

      Within the cANCer, lunacy knows no bounds.

  • DrGonzoSA - 2012-10-18 08:59

    Yet again it is hard working, law abiding citizens that are targeted. Putting a freeze on corruption should be the priority

      customdesign - 2012-10-18 09:19

      yes, and a freeze on Zuma, he is a parasite on our economy.

  • customdesign - 2012-10-18 08:59

    Screw you, I work hard for what I get. You screwed up the economy and now I must suffer as a result of your incompetence???? I think not. This kind of thinking is what is taking our skills to other countries. I don't see why striking miners who are screwing up this country should get pay rise while the average person carrying the government should be subjected to a pay freeze. You have just given companies an excuse not to give pay rises. I hope you rot in hell.

      customdesign - 2012-10-18 09:08

      Zuma can go 98765985 himself

  • napolita.kio - 2012-10-18 09:01

    So I take it this will be a SARS-and-Mr Patel joint operation. I mean, who else and how will anyone know that that an Accenture's employee's salary has changed other than SARS?

  • cindy.laubscher.3 - 2012-10-18 09:03

    Yes investor confidence in this country has been lost because any investor who has 2 brain cells to rub together can see exactly were his hard earned money is going to. I wish i could stop funding these idiots lifestyles but unfortunately we are not that lucky that we can just take our money elsewhere

  • sthembiso.jali.50 - 2012-10-18 09:05

    By freezing salary increases- sars loses 50 bn on tax collection. Then service deliver gets worse. Some decisions. !??

      singatha.jongihlati - 2012-10-18 10:11

      No,not decisions,but emotional outbursts by politicians who have lost the plot.More like fumbling in the dark and hoping for the best.Please, someone tell me how this is going to help the economy.

  • Sharon - 2012-10-18 09:07

    Zooma has just had a 5.5% increase, and a R230m bonus. Stuff you

      juan.prinsloo.750 - 2012-10-18 09:41

      Zuma has yet to grasp the concept that if you lead by example people will respect you, and will be more likely to do what he requests. What a hippo-crate

  • ryno.warwick - 2012-10-18 09:07

    Once he has paid back the country all the money spent on him, his multiple wifes and kids and that house that doesn't belong to him then he can talk about freezing anyone's pay.

  • brendon.nel.7 - 2012-10-18 09:09

    But old shower head, beet root brain just gave himself a nice 5% increase. Pathetic.

  • peter.mansfield.395 - 2012-10-18 09:10

    Freeze Nkandlapolis!

  • kgotso.selome - 2012-10-18 09:12

    \If we want to rebuild the economy... and act\r\nwith one vision, we need a sense of shared\r\nresponsibility.\r\n\So this is an important symbolic act.\\r\n\r\n\r\nthe guy is building a mansion of more than R203m, the mayors of tshwane, jhb, city of cape town and ethekwini metropolitans' salary is way above a living wage.\r\n\r\nHis wives are getting paid a salary more than that of a CEO..\r\n\r\nHis friends, family and colleagues got illegal tenders...\r\n\r\nHe is building zumaville...\r\n\r\nAND I CAN'T GET A SALARY INCREASE FOR A YEAR, WHILE FUEL PRICE INCREASED MORE THAN 6 TIMES IN THE PAST 4 MONTHS...\r\n\r\nDAMN SOUTH AFRICA...

      steve.ritchie.739 - 2012-10-18 09:33

      You get what you vote for!

      DuToitCoetzee - 2012-10-18 10:12

      Who said he voted for him or do you mean "one get what one voted for"?

      DuToitCoetzee - 2012-10-18 10:13

      Sorry! Mend SHE and not he.

  • richard.bosmano - 2012-10-18 09:13

    SAMWU is about to go on strike.They the rubbish that get drunk and urinate in our streets and turn over garbage bins(i've seen the unpeople throw concrete dusbins against innocent motorists vehicles) in JHB before burning the garbage. Will the police be aloud to shoot them? Will they get the increases they demand? Bearing in mind that public sector workers are 50% overpaid compared to private sector workers and they are 50% less productive.

  • denny.cray - 2012-10-18 09:14

    I always find it fascinating how they can sprout stuff like this with a straight face.

  • henk.vanrensburg.31 - 2012-10-18 09:14

    Deal, Also make sure that all taxes are kept at the same level. Especially thing like license disks that are increased by 25% a year. o more Eskom increases....Brilliant!

  • gary.desousa.7 - 2012-10-18 09:18

    Well the cabinet and president have just got their annual increases and it was announced a few weeks back so Im assuming those will not be implimented. There should also be a freeze on any new jobs or positions filled in the public sector,evaluations need to be done on effciencies,working ability etc and let the private sector get on with doing its job of creating wealth, paying its taxes and creating new jobs.

  • francie.potgieter - 2012-10-18 09:19

    Yes and if he did a freeze on the R247m & R352m for Nkandla it would have been a big help and what about his 5% increase. Hypocrite idiot.

  • gelliott007 - 2012-10-18 09:21

    Question for our dear old Government. Have you though about the consequences here? The average company increase salaries in conjunction with the CPI indication which is firstly far lower than the real increase figure. Fuel jumped by more than R 1 per liter in three months. We import food (Food resources low due to in-experienced farmers and land re-form) now linked to a very weak rand as the Government cannot keep stability in the economy which have a direct impact on the CPI. Do you perhaps have an idea in regards with the negativity it will create. Remember here my Dear Mr. President and Mr. Patel, due to your empowerment deals, the corruption and bribery within the government, enjoying a bottle of whiskey to the value of R 3000 - 4000, sitting in your house to the value of millions abusing millions when entertaining. Not needing to worry about bread and butter on your table as our taxes pays that.....WE ARE NOT ALL THAT FORTUNATE.

  • kagiso.k.seleka - 2012-10-18 09:22

    Wow! That's your solution Mr President? How about your freeze your house upgrades. Freeze the luxuries you and NEC's and MEC's and Ministers are "entitled" to. This is like reading something from a stand up comedian's script.

  • terrylee.heuer - 2012-10-18 09:24

    So this has nothing to do with the economy or with the striking miners but all to do with inequality!!!!

  • steve.ritchie.739 - 2012-10-18 09:25

    Yet another incredibly stupid statement from the biggest hypocrite of them all. Lets all sing together: "Hey big spender..........."

  • briana.scott - 2012-10-18 09:26

    Seems to me like this is communism at it's best. Just another way to bring this country to its knees. People were not being employed for their worth but for their colour, now the people who are actually employed for their worth are not supposed to be paid for it because it is offensive, i also battle to comprehend how this will help the economy by paying people less money whilst they keep putting the cost of living up at incredible rates. Let them come live down here with us and get off there fat asses, and then decide what is affordable and what is not. they live lives beyond luxury on our dime. I wonder if they have even thought about the fact they will be losing out through taxes, because we pay a crap load and the more we earn the more we pay, so if they stop us earning ... oh wait ... they will just make us pay a higher percentage so they still come out okay.

  • floyd.mandla - 2012-10-18 09:27

    Mr president can you freeze yours because you are playing with our money in your nkandla. Now you talk about freezing.

  • bradley.kecskes - 2012-10-18 09:27

    What you talking about....my salary hasn't had a spike in the last two years...so no news too me.

  • kgakgamatso.phatlane - 2012-10-18 09:27

    Zuma calls for this salary freeze quite conveniently after he approved his 5% salary increase a month ago. This President is becoming an Adi Amini

  • di.anderson.378 - 2012-10-18 09:27

    The president must hold his Nkandla project and offer to use this money to rebuild our country and assist with housing, development for the very people that put him in power. This will show if he is genuine in his plea to put our country on the correct path

  • wally.williams.148 - 2012-10-18 09:28

    I beg your pardon!! You reduce the annual increase on Public Office Bearers to gain political favour with your alliance partners, notwithstanding your own mammoth salary and hidden benefits. You ignore widespread HUGE corruption where "important cadres" are involved. The true facts about the mining industry remains hidden from your voters' knowledge, and who actually benefit from these mega-operations - and we're talking Rbillions! The strikes that are allowed to continue unabated and the steep rise in fuel prices, not to mention tax and cuts on deductions, all contribute to household inflation way beyond what prefer to advertise. Municipalities that cannot substantiate their existence let alone the huge salaries paid to its Managers, Mayors and Councillors, not to mention the "must have" ridiculously expensive vehicles, blue light cavalcades and security borne out of a sense of paranoia and urge to impress and be important are your legacy. Rmillions are written off due to corruption and mal-administration. And then...R247 000 000-00 and counting on a private hom's improvements - provided in the handbook or not, what the hell are you thinking? Do not forget the R582 000 000-00 spent on road infrastructure conveniently at and around your home! Think about the wasted expenses wrt a bogey aircraft as "protection". The aircraft being bought and prepared not to mention the one acquired during Mr Mbeki's tenure. Now, where does the problem finds its root, Mr Zuma?

  • warren.rodel - 2012-10-18 09:29

    Stuff you mr currupt president!

  • aspruyt - 2012-10-18 09:30

    Yawn, hypocrite.

  • Chris - 2012-10-18 09:32

    Salary costs are known and fixed costs, the variables and allowances need to be capped for government and civil servants , travel down grades, Hotel review, expenses, subsistence allowances, entertainment etc etc . As usual an empty drum posturing as a Minister, making a statement that has no chance of succeeding or any true value.

  • kobus.hattingh.5 - 2012-10-18 09:33

    In that case please inform my landlord, electricity dept, insurance co's and all that automatically increase their fees every year. Due to the greed from certain sectors and the cowardly reaction from the Government, all now must suffer (except the highly paid and money grabbing Government officials off course). And o yes, forget about the new toll roads and e-tags as well as we already can't afford that either!!!

  • denton.estment - 2012-10-18 09:33

    Fine for Patel comming from a unionist to cabinet minister his pay rise was more than Joe Blogs could even dream of.

  • AB.VILJOEN - 2012-10-18 09:37

    We make sure our businesses are profitable, and will decide our own increases. Mr Pez you do the same with gov then we wont need no sal freezes!

  • theMichaelHawthorne - 2012-10-18 09:38

    Zuma and the whole anc is a joke. They should actually start a circus.

  • alicia.isaacs.37 - 2012-10-18 09:39

    Finally they have all gone mad!!! We hardly get increase as it stands (3%) if you are lucky. WTF

  • mondli.ngcobo.98 - 2012-10-18 09:41

    Start by freezing Zumaville project

  • sisie.indola - 2012-10-18 09:42

    It would be more appropriate if JZ said he would cut his salary by 30% and would halt ALL refurbishments and renovations on ALL government (as well as private owned) properties as well as upgrades for newer model cars etc. Then i would say - YEAH. But at the moment this is talking the talk will have to see the walking the walk. And how about paying tax while you are about it!

      ed.gutsche - 2012-10-18 09:47

      i agree, just like in malawi with joyce banda:)

  • denzil.davan - 2012-10-18 09:43

    I cannot understand how Unions play the Employers each year with a Percentage Based Increase. This ultimate increases any gap that exists between managers and workers. Each year we hear for 12% or more. This would make a person earning R5000 earn R600 more and a person earning R20 000 earn R2400 more. If you want to reduce the gap between workers and managers give everyone a R600 increase. Workers would appreciate this more. It also reduces the gap.

  • teboho.martin.3 - 2012-10-18 09:43

    There is no leadership in the ANC zuma must start to freeze nkandlas renovations worth tax payers 203m in his farmstaed!

  • wally.williams.148 - 2012-10-18 09:46

    You forget about your greed to provide not only for one wife but each one you decide to marry. It is not for me to judge on how many wives you should have, but at least show the decency not to insist and push through legislation to secure salaries and benefits iro all of them. Is there absolutely no sense of pride or decency within you? Then, youir cadres are screwing up and you keep on re-deploying them in other high-ranking positions. You insist on shutting the media up and preventing the truth to surface. Fickle excuses are found and sold for the total inept and incompetent, if not criminal, actions. Crime is not properly addressed, instead there is an over-grown and disproportionate drive to enforce the rights of criminals and youth to the detriment of the majority of this country. We do not have the same problems as do America, Greece et al. You want others to pay for your lavish and totally over-board spending and self-enrichment hidden behind the so-called Ministerial Handbook, state security, BBBBEEE, or plain arrogance beyond belief. You and the Cabinet, the MP's, the Prov Legls, the Local Auths and not to mention the Traditional Leaders ("Kings") are not setting any example in ubuntu or batho pele, and definately not in putting the ppl first. Now, why do you believe there is no confidence? It has nothing to do with the CEO's or the Managers - some need to be removed though, I suspect! I am not a manager or CEO. Let Mr Radebe speak about the true future plans.

  • ken.koen - 2012-10-18 09:47

    Good idea, but include all "comrades" and monitor their bank accounts, their wives bank accounts and their lifestyles. Most of them steal and embezzle as well.

  • ndou.miranda - 2012-10-18 09:47

    Mr. President how about YOU stop making functions and parties that cost Millions of rand, buying unnecessary new cars and plans, and immediately STOP the Zuma valley project. How about that sir?

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