The African National Congress has warned its labour partner, Cosatu, that spiralling salaries were becoming unaffordable for both the private sector and government.
Speaking at the Congress of SA Trade Unions’ KwaZulu-Natal provincial congress in Durban, KwaZulu-Natal premier Senzo Mchunu said: “Salaries are spiralling beyond our means in both the public sector and the private sector.”
Mchunu painted a grim picture, saying the government was having to pay salary increases of seven percent when the economy was expected to grow by only 1.8 percent.
He said the government had to content with an increasingly strained fiscus, rising unemployment, low economic growth and low rates of investment.
Salary demands were worsening the situation, said Mchunu.
“We may face a slide if we don’t face these issues,” he said.
Referring to the relationship between the labour federation and the ruling party, he said that the ANC was committed to the alliance with Cosatu and the SA Communist Party which together form the tripartite alliance.
He said that within the ANC itself, greater unity was required.
ANA