Wednesday, November 24, 2010

Govt proposes salary caps

No doubt the "previously disadvantaged" and friends of the ANC will be excluded....

Creeping Communism....

H/T Ozzie Saffa

Cape Town - The government tabled its new growth path in Parliament on Tuesday, part of which proposes a cap on salaries and bonuses for senior managers and executives earning more than R550 000 a year.

The document, unveiled by Economic Development Minister Ebrahim Patel, also suggests a cap on increases for all those earning more than R20 000 a month.

It proposes "moderate wage settlements" for those earning between R3 000 and R20 000 a month, "possibly to inflation plus a modest real increase", with "inflation-level increases for those earning over R20 000 a month".

Patel said the document also called for a broad pact between business, labour and government.

Such a pact would include commitments on wages, prices, savings and jobs.

There was a proposal, for discussion with business and labour, for moderate wage settlements linked to clear commitments by business to save jobs, create new jobs and address inequality, he said.

- SAPA

6 Opinion(s):

Dachshund said...

Ah, you picked that up did you, just as I posted it in a comment on another post.

Ebrahim Patel, proving not only that beauty and brains don't always go together, but are a positive barrier to a well job in government, implies that this would only apply to the private sector, not the ANC government: their salaries of 'over a million rand' are to be increased by 5%:

'Ebrahim Patel, the minister of economic development, told a parliamentary portfolio committee the NGP would require sacrifices ... He is among ministers who heard last week that their packages of well over R1-million would increase by 5%.'

I can tell you right now that Ebrahim Patel does indeed earn well over R1 million per year, probably in the order of ten times as much.

Throw these bums out, put them behind bars, whatever it takes.

This is not even creeping communism, it's just imploding the economy while the ANC cadres siphon the money out of the country. I think the ANC is sick of even pretending to want to run the country, they want to bail out.

Viking said...

Yeh I didn't think they'd be in the mood to become "more equal" themselves...

VI said...

I'm not one to defend the ANC, but let's be a little balanced. PW Botha did exactly the same thing, around 1987, where he requested that the private sector contain increases to below the rate of inflation. Of course it fell on deaf ears, as will this request.

Dachshund said...

I don't remember PW actually recommending putting a cap on salaries in the private sector.

VI said...

Just after his famed Rubicon speech, when the Rand plummeted and inflation was 15% plus. I was a civil servant at the time.

Dachshund said...

Well then nothing came of it, because salaries continued to trend up and inflation soared anyway. ANC copycats what the NP did, even what didn't work. Silly idea. The private sector has never been in a hurry to overcompensate employees, unless they're competing for AA skills; then the sky's the limit.

If you want to keep inflation down, rather do away with social engineering that stifles skills supply.