JOHANNESBURG, Feb 28 (NNN-AGENCIES) — South African trade unions threatened protests, after they said the government wanted to renege on the terms of a public sector wage deal struck in 2018.
Unions said government officials informed them that they could not afford to pay public servants wage increases that were meant to come into force in April 2020, for the final year of the three-year deal.
Such a move by government, on the eve of a closely watched budget speech by Finance Minister Tito Mboweni, would be part of an effort to contain runaway spending and preserve the country’s last investment-grade credit rating from Moody’s.
The finance ministry was in a media lock-up before Mboweni’s speech, which is due to start around 1200 GMT, and not available for comment.
Mboweni is under pressure to promise spending cuts that could appease Moody’s. — NNN-AGENCIES
