This is the governments response to what the increase will do to the budget.
“At the time Baloyi said government could not afford to meet labour’s wage demands because this would push the salary bill way above what the state has budgeted for. The state has budgeted R11,2-billion for salary increases and R845-million in housing allowances.
If the employer accedes to labour’s demands, it is projected it would spend R17-billion on salary increases alone and R3,5-billion for housing allowances.”
My knowledge of the economy isn’t spot on, so I can’t calculate what the cost to goverment would be if there was an increase from 6.5 to 8.6, a 2.1% increase could be millions of rands, which might make it not possible, but I doubt that.
Teacher’s are paid really badly in general, I think it’s important for them to receive the increase, afterall, if they strike and don’t teach correctly, how will our youth achieve in their final exams? They won’t. How will that play out later? Our country will once again suffer in the skill set area.
Tricky one, they need some mathematicians and economists up top their in the government who know what they’re doing so they can sort this kind of situation out!
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