Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Strikes: reward merit, say experts

Sep 03 2010 07:17 Troye Lund

Related Articles

No end in sight to govt strike

Strike ‘cancels out SWC benefits’

Unions in talks to intensify strike

Zuma intervenes in govt strike

Court blocks municipal strike

Soldiers threaten to join strike

 

Top Stories

Rand firms against dollar after US data

Feb 03 2012 19:08

The rand firmed against the dollar in late afternoon trade following the release of better-than-expected US jobs data.

Implats to replace, rehire fired workers

Feb 03 2012 17:02

Impala Platinum says it will start recruitment of new workers or the rehiring of dismissed employees next week after laying off more than 17 000 for going on illegal strikes.

SA signs aid, loan treaty with Cuba

Feb 03 2012 16:34

An economic package worth more than R300m has been agreed to with the Cuban government, says Trade and Industry Minister Rob Davies.

 
Share Share line Print
Cape Town - The public sector strike is increasingly drawing attention the lip service government has paid to performance management, analysts said on Thursday.

This means civil servants get rewarded whether they perform or not, which ultimately requires taxpayers to foot a ballooning bill for mediocrity.

As public service unions look set to reject government's revised wage offer of 7.5% (as opposed to the 8.6% unions are demanding), Investment Solutions economist Chris Hart said there is only one consequence if government borrows more money to pay its employees – higher taxes.

"Taking more resources out of the economy to pay salaries means there will be less for wealth production," Hart told Fin24.com.

He also warned wage increases not matched by productivity levels "creates victims" in that it restricts the number of jobs available in the economy. In turn, this increases the demand for welfare, for which taxpayers foot the bill.

"As other countries are beginning to realise, this (cycle) does not have a good ending," said Hart.

He said the blame for the situation lies squarely with the goverment, because it has opted for the path of least resistance and maximum political benefit by giving civil sevants across-the-board salary hikes.

"The increase on the table becomes more problematic because it is an across-the-board one. It means that if you as a civil servant work very hard, you get the 7.5% increase - and if you do nothing, you get 7.5% ," said Hart. "There is no incentive other than your pride to perform with any degree of excellence."

The result is that although government's education budget has doubled to R165bn in five years and although school enrolment is up, it has failed to reverse declining exam results or offer improved teaching standards.

According to the Centre for Enterprise Development (CDE), between 75% and 80% of all government schools are dysfunctional. The CDE's Anne Bernstein said South Africans are just not getting a return on their tax investment.

While the Public Service Commission regularly warned parliament about slack adherence to the performance management systems that do exist, the South African Democratic Teacher Union's (Sadtu's) deputy general secretary Nkosana Dolopi said the union is not averse to performance management.

He argued that teachers are subjected to the performance management codes set out on the Integrated Quality Management System, of which Sadtu is a signatory.

While this system is not linked to annual salary increments, it has been criticised for being too soft in its approach and for its lack of sanction for non-performance.

- Fin24.com

 

 
 
Comment on this story
5 comments
Add your comment
Comment 0 characters remaining
New smartphone technology puts a doctor in your pocket
Jan 31 2012 11:31

South Korean scientists have developed new cell-phone technology designed to diagnose disease. A team at the Korea Advanced Institute of Science and Technology says that when its technology is commercialised, it will revolutionise diagnostic medicine around the world.

H Moolman

The debt-based monetary system creates an illusion of wealth. It allows for claims on real goods to significantly exceed the actual amount of real goods. You then have a number of people believing they have wealth, since they have claims (pieces of paper or tokens) showing that they have these real... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...