Public servants may have to settle for lower wage increases

University of the Witwatersrand (Wits) business school professor, Jannie Rossouw says that public servants may have to settle for lower wage increases amid constrained government coffers.
A wage strike is set to begin in parts of the country next week, with public service unions demanding up to 10% on the baseline.
So far, the government has stuck to its offer of 3%.
Rossouw said the government can use its contingency budget to match the sector’s demands, but he believes it would be a costly option.
“The heart of the problem is that the government gave too generous adjustments to civil servants for the decade, and we’ve now run out of money.”
Rossouw warned that a protracted strike could also dent investor confidence.
-EWN
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