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Internal Tensions Flare Over Public Sector Wages

SOUTH AFRICA
LOCAL NEWS
  • Local columnist notes strained ties between key players (FinMin Mboweni & Public Services Min Mchunu) in negotiations vs unions in the public sector wage bill which could cost Govt ZAR 27.5-37bn
  • This has not been included in budget or debt:GDP projections.
  • Mboweni has been fighting for austerity and a wage freeze, while Mchunu made an abrupt U-turn and tried to settle with unions for ZAR 27.5bn late last week. - Daily Maverick.
  • This has major implications for the embedded fiscal risk premium and is most likely not priced into bond/FX markets.
  • Legal expert warns SAA's R1.5bn advance may delay the airline's recovery as the issue will most likely be taken to court
  • No reasoning provided, but will be monitored. BusinessDay
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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