By Riefdah Ajam
We had a mixed reaction to the cocktail of progressive and controversial policy interventions announced by Finance Minister Tito Mboweni when he tabled his Medium-Term Budget Policy Statement in Parliament last week.
Key was the government’s adoption of a historic agreement signed by the social partners at Nedlac constituencies for the annuitisation of retirement savings to enhance social protection; and the move to comprehensive social security.
The Treasury endorsed another vital social protection agreement by Nedlac constituencies that will result in fast-tracking the introduction of auto-enrolment for employed workers, and the establishment of a fund to cater for workers excluded from formal retirement provision.
The Treasury will table a bill next year that will make it possible for workers to access a portion of their retirement savings under certain guidelines. As part of a Nedlac agreement for a R100 billion stimulus package to create 800 000 jobs, is an allocation of R12.6bn. Mboweni also announced reviewing regulation 28 of the Pension Funds Act which will make it possible for retirement funds to increase their exposure to investment in public infrastructure. However, the reversal of the Treasury note erodes all gains on localisation and support intended to expand manufacturing.
While the salary cuts for management-level positions is a step in the right direction, the fact that this will be across the board for the next three years and affect public servants who were not paid the last portion of their 2018 wage settlement is an insult to their hard work.
We call on the government to reduce exorbitant salaries and packages of executives of SOEs, parliamentarians, executive mayors and so on and to cut down on the bloated Cabinet.
Cutting essential departments such as police and higher education to fund a non-performing corruption cash cow like SAA by R10.5bn is unconscionable. The only way it can be justified is if the first flight is to Dubai to bring back the Guptas and their briefcases of cash, so they can be held accountable and repay the stolen money.
Riefdah Ajam is the General Secretary of the Federation of Unions of SA.
The Star