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DA: Statement by Dion George, Democratic Alliance shadow minister of finance, on the public sector strike (14/10/2010)

14th October 2010

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The public sector strike was unacceptably violent and settled at a high price - abandoned hospital patients, unsupported matric learners and a significant dent in the public purse. At 7.5%, the wage increase is well in excess of the budget provision, the rate of inflation and, most importantly, any productivity increases. There is no doubt that the teachers who teach our children, the nurses who care for the sick and policemen who protect us from harm deserve appropriate compensation.

When he introduced the 2010 Budget in February, the Minister of Finance stated that attention would be focused on placing more public servants on the front-line of service delivery and fewer in the back offices. This implies an improvement in productivity, measured in terms of service delivery. This has not happened and taxpayers cannot be expected to pay up and wait. In accepting the agreement, COSATU stated that it would now focus on the 2011 wage increases. We can thus be assured that the public sector strike is not really over, it will resume next year - unless the Minister takes the decisive action that is sorely needed.

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When he delivers his Medium Term Budget policy statement on 27 October, the Minister of Finance needs to clarify his future expectations regarding public sector wage increases. In particular, he needs to detail how much taxpayers will be expected to pay for the public sector wage bill and, most importantly, whether the public can expect productivity increases that justify this expenditure.

 

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