The growing disparity in the salaries of workers and their chief executives will lead to the ”toughest” wage talks in a long time, the trade union Solidarity warned in a Workers’ Day memorandum.
It cautioned that food, medical, water and electricity, vehicle maintenance and housing increases of 2% to 8% more than inflation could leave 2007 remembered for its labour disputes.
In its memorandum, which analyses the position of workers in South Africa, Solidarity said the country’s 10 highest-paid chief executives receive about R47-million a year.
”This is approximately R128 000 per day, or R5 365 per hour. The hourly remuneration of chief executives is approximately equal to the monthly pay of the average workers.
”If the chief executive takes a 15-minute tea break, this will cost his company R1 350 — probably the most expensive cup of tea in the country,” the union said.
On unemployment, Solidarity said that while there are more jobs, there are also more people looking for work — leaving official unemployment of 24,5% in September last year almost the same as that of 24,4% in September 2000.
Inflation is nearing 6% and the production price index is more than 10%.
”Companies have to fork out 10% more for production means, but they want to pay the workers — as a production expense — only half that. Inflation tendencies are also expected to lead to further interest-rate hikes.”
Solidarity described its memorandum as the ”first salvo” in an impending new series of wage negotiations.
It expects a 7,5% average wage settlement this year, but said this would barely leave workers in the same position they are at the moment. As such, it would not be a wage increase, but a wage maintainer or even a wage decrease. — Sapa