ANC Staff Strike Over Unpaid Salaries, Treasury Sees Spectrum Release Soon

LOCAL NEWS

• ANC staff to shut down offices and go on strike after salaries were not paid for a second consecutive month in an announcement made yesterday afternoon.
  • Staff are demanding wages that have not been paid since July while the party suffers from a cashflow crisis
• National Treasury officials say that long-awaited reforms on frequency spectrum are next in line as soon as ICASA deals with legal disputes over the proposed auction of spectrum – which the treasury says "it will complete soon."
  • The release of spectrum is expected to spur investment and development in SA's telecommunications industry and prime the sector for major growth
• Judgement was reserved in the case involving suspended ANC SG Magashule yesterday. Magahsule's lawyer said the decision to uphold his suspension showed judicial and factional bias on the part of three judges and must be thrown out
  • Legal experts warn the battle between public servants and Govt over the 8% promised salary hike due to be heard at the Constitutional court could have a far-reaching impact on collective bargaining and potentially even the private sector in terms of contract negotiation.
  • Govt reneged on the final year of a three year wage deal, freezing wages on the basis of fiscal troubles when an 8% increase was promised
• State said to be finalising financial aid for state arms manufacturer Denel with the firm facing a liquidity crisis and unable to pay staff salaries

Data:

• 1030BST: PPI m/m exp at 0.6% vs 0.8% prior
• 1030BST: PPI y/y exp at 7.1% vs 7.7% prior