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Unions Take Govt to Court Over Wage Bill; Fiscal Risks in Focus as Feb Budget Looms

SOUTH AFRICA
  • S.AFRICAN UNION TAKES GOVT WAGE DISPUTE TO CONSTITUTIONAL COURT
  • Comes after Labour court ruled against the ZAR 37.5bn wage agreement unions were pushing for in Nov/Dec
  • Public sector wages are at the centre of SA's fiscal crisis and must be trimmed or SA will continue to spiral towards 100% debt to GDP
  • some progress has been made and govt has taken a hard stance in a few areas, but on the whole, credit agencies will see little tangible progress towards fiscal consolidation goals-
  • This will likely be highlighted in the Feb budget alongside massive tax shortfalls & new taxes on an already constrained tax base
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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