Zuma won’t lead the CEO pay freeze proposal


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This topic contains 38 replies, has 17 voices, and was last updated by  Skills Universe 2 years, 5 months ago.

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  • #5775

    Cindy Payle
    Keymaster

    Government, business and labour made a social pact to call on CEOs and executive directors in the private sector and public sector, to agree on a freeze on increases in salaries and bonuses over the next 12 months.

    The salary freeze is meant to recover investor confidence and is part of government’s response to the frustration that exists among sections of the workforce at the high income inequalities in South Africa which has lead to industrial action and social unrest.

    The pay freeze was expected to start with the President and filter down through all sectors of society.

    However, two days after this pact was made President spokesperson Mac Maharaj announced that “President Jacob Zuma would not be the first to freeze his salary, as he has asked companies to do with their CEOs, because due processes had to be followed in decision-making within the government”

    Cabinet ministers reportedly received a 5.5% increase in July, which brings President Zuma’s package to R2.6m

     

    What do you think about this proposal?

    Can government expect senior executives to freeze their salaries when the president is unwilling to take the lead?

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  • #5808

    Megan Forster
    Participant

    I’m afraid that he will need to do more than just freeze his salary to recover investor confidence.  This is just another example of his poor leadership.  Greed knows no boundaries.   

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  • #5807

    The concept of leading by example obviously does not mean anything to our President. It is easy for him to put pressure and guilt on others while he continues with his lavish lifestyle. I am not surprised he is not practising what he preaches. That is a politician for you.   

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  • #5806

    Rufaz M Mavhure
    Participant

    If the Presidency cut its catering bills; travels for spouses and get down to 3 star hotels then we can make sense out of the proposals. Why does government engage too many Consultants when there are DGs with fat packs already?. Government can do more in slashing expenditures first. Good idea from a wrong office rather!!!

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  • #5805

    I agree & would be very surprise if anything more is said concerning the ‘freze” from any goverment official!

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  • #5804

    Thank you Cindy for posting such sensitive topic ,however let us call a spade to spade.

    Presidency is the highest non academic ranking in a  country, by nomination

    Its life time is five years (unguaranteed ),It is not upgrading any Cv it only add in your biography .

    The crux of a matter is any one prepared to freeze his or her income to carter for the lowest pay.

    Marufu ,What you are saying it sounds pretty good and I have the same feeling as you said it ,why we must still pay so much why our president including all cabinet members they enjoy such kind of luxury. Is n’t true that it should start with me.

    Megan quite good but that is not Zuma “s fault it is a fault for every one in this country.

    Let us not politicize this other wise it will go out of proportional 

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  • #5803

    Cindy Payle
    Keymaster

    Thank you  all for your comments  🙂

    Economists and labour market experts are now warning that this proposal will drive execs to leave the country and find employment where their skills are valued.  Many believe this is not an economically sound proposal and that government should ‘focus on up-lifting the poor rather than taking from the rich.’

    In light of these gloomy predictions do  you think this proposal is a good one?

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  • #5802

    Most definitely no. But then freezing pay increases is not the answer either. Government needs to stop stealing, defrauding, being corrupt, financially mismanaging and lining their own pockets. That’s where it needs to start……

     

    Freezing the salaries of the highest paid will just mean less tax going into government- and even less service delivery- at least that will then be the excuse for less service delivery!

     

    What we need is honest politicians who have integrity and who do not lie and defraud the people they say they are helping. We need servant leaders not the shower we have- people genuinely committed to seving the people not themselves. That we don’t have here – and in many other countries of the world today unfortunately.  

     

     

     

     

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  • #5801

    Our president is confused simply because of his lack back bone – The pro Zuma are taking this country down the drain because of their greediness and self centred behaviour. Unfortunately the masses of this country will do nothing about this man and his crew. It is clear, huge salary gap is a real problem in this country if not attended to, it will still erupt very ugly in the near future. 

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  • #5800

    Rufaz M Mavhure
    Participant

    A lizard that falls from an iroko tree phraises itself if no one does. Imagine African leaders with 20 body guards and 8 motorcades burning 200 litres fuels for Jozi to Pretoria trip only. Country not at war but defense budget biggest and highest in how far??? The proposal was over a glass of wine not worth being taken seriously.More bigger things to be done if President is serious.Freeze petrol increases and subsidise; freeze electricity etc. Malawi lady President tried to slush her salary and sold all luxury cars — good signal.

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  • #5799

    Once more thank you Guys 

    Cindy ,Fantastic, you know what if you milk the non commercial cow you ALWAYS think about the life of the cattle.

    What is the use to people earning so high and there is people wondering in the streets .If there are those want to leave the country let them do so ,We all need to consider slashing down our salary collectively ,We can not look for some  look at individuals 

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  • #5798

    Ian Webster
    Participant

    It’s another of those quick-fix solutions we are always looking for.

    It’s not a pay freeze we need, but improved performance all round.  And we could start with the ministers and officials responsible for the Limpopo text-book fiasco.  But unfortunately we only fire people who fail if they support the wrong side. If they are on “our” side, they stay.  Of course, in December, the “sides” might change, and we will start all over again.

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  • #5797

    Has any ANC politician ever set a leadership example yet? If Zuma ever wanted to demonstrate concern to citizens and voters, he would scrap the obscene amount being spent on the Nkandla “home”. Mac Maharaj refers to the “due processes of decision making in government” for a salary freeze to happen. Well, we all know how long due processes take in the government, so it won’t happen. Any observer can see that the slide to a failed state is accelerating. Even Clem Sunter’s latest scenario planning has now increased that probability, and SA is now clearly exhibiting the “walk apart” scenario depicted in the Dinokeng projections: corrupt, disengaged and ineffective.

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  • #5796

    The fish rots from the head

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  • #5795

    I agree with the comments. Google Witness, or go to their web site (http://www.witness.co.za)  and you will see three letters about this topic today, one of them mine.

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  • #5794

    Pieter Staal
    Participant

    Zuma does lead by example – just not on all the right issues – he took a HIV test didn’t he?  🙂

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  • #5793

    sylvia hammond
    Keymaster

    Chris, I disagree with the statement that no ANC politician has ever set a leadership example: Nelson Mandela, Oliver Tambo, the Sisulus (plural), Joe Slovo, and many more – maybe you could say “current” ANC are not living up to the leadership example?  But then that’s a statement you could make about many governments today.

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  • #5792

    Jaco Koortzen
    Participant

    Proudly South Africa! –  Mediocrity became the norm & incompetence is acceptable.

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  • #5791

    sylvia hammond
    Keymaster

    Hi Mandlenkosi, I like the way you picked out the different issues.  There seems to be something that when people get to the top they forget about the people at the bottom.  Maybe we should publicise more about what Bill Gates and his wife are doing with their money.  There are wealthy people who do make large contributions to relieve poverty.

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  • #5790

    No Ways ,what about those lazy people working for the companies ,none productivity I am also included,The time Iam spending on the computer now is not budgeted for.

    When Sandton was built who was staying there ,building infrastructure on the country side ,is it awaste .

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  • #5789

    agree 

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  • #5788

     No 

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  • #5787

    Sometimes  not always ,there is a lot of finger pointing and we are playing hiding game 

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  • #5786

    sylvia hammond
    Keymaster

    Hi Cindy, executives may threaten to leave – but where are they going?  Greece, Portugal, Spain, the UK, the USA, the middle east, north Africa – China?  Everything may seem greener, but look at the figures of international organisations like the World Bank and the OECD on issues of productivity and growth and you’ll see the problem.  Then even where there is growth, add in violence and political issues including the rise of fascism in Europe – and the world gets very small.

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  • #5785

    Hundred percent ,FYI the area I am coming from original and where I am  going to rest in peace for past 18 years nothing ever happened .No infrastructure at all absolutely Zero ,

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  • #5784

    Skills Universe
    Keymaster

    I find it difficult to comprehend how the suggested “pay freeze of mine executives” was going to be a solution to the mine workers prolonged strike action. What stunt me more, was the fact that it came from higher ranking in government. To top it all, is that the suggestion was only directed at the mine sector. If this is how we are going to deal with problems in South Africa, then…

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  • #6066

    Skills Universe
    Keymaster

    I find it difficult to comprehend how the suggested “pay freeze of mine executives” was going to be a solution to the mine workers prolonged strike action. What stunt me more, was the fact that it came from higher ranking in government. To top it all, is that the suggestion was only directed at the mine sector. If this is how we are going to deal with problems in South Africa, then…

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  • #19475

    Skills Universe
    Keymaster

    I find it difficult to comprehend how the suggested “pay freeze of mine executives” was going to be a solution to the mine workers prolonged strike action. What stunt me more, was the fact that it came from higher ranking in government. To top it all, is that the suggestion was only directed at the mine sector. If this is how we are going to deal with problems in South Africa, then…

    Share on Social Media
  • #36666

    Skills Universe
    Keymaster

    I find it difficult to comprehend how the suggested “pay freeze of mine executives” was going to be a solution to the mine workers prolonged strike action. What stunt me more, was the fact that it came from higher ranking in government. To top it all, is that the suggestion was only directed at the mine sector. If this is how we are going to deal with problems in South Africa, then…

    Share on Social Media
  • #43152

    Skills Universe
    Keymaster

    I find it difficult to comprehend how the suggested “pay freeze of mine executives” was going to be a solution to the mine workers prolonged strike action. What stunt me more, was the fact that it came from higher ranking in government. To top it all, is that the suggestion was only directed at the mine sector. If this is how we are going to deal with problems in South Africa, then…

    Share on Social Media
  • #44193

    Skills Universe
    Keymaster

    I find it difficult to comprehend how the suggested “pay freeze of mine executives” was going to be a solution to the mine workers prolonged strike action. What stunt me more, was the fact that it came from higher ranking in government. To top it all, is that the suggestion was only directed at the mine sector. If this is how we are going to deal with problems in South Africa, then…

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  • #5783

    sylvia hammond
    Keymaster

    Jan, I agree with you that we need to have a focus on “service” “delivery” and less self enrichment from government officials.   But I do also think that those high paid executives could be doing a lot more to support government in poverty alleviation -through policies on bursaries, skills development and training, housing, medical cover, transport – improving the quality of life of their employees and their families. Those working then have greater facility to assist the unemployed.  We know that the currently employed each support a number of additional unemployed.  We do also know that we now have a situation of the “working poor”, people who are employed but can’t afford to feed, clothe and educate their children.

    I suggest we should all be asking more questions: of business about what they are doing – and of government – where exactly the money is going.  How much on transport, entertainment, housing and so on.  

    You are right in your last sentence – that’s what we need to change – unless we do all work together to resolve poverty and unemployment we’re going to have a big problem – and look at my response to Cindy, there is no longer anywhere else to go – so we better start paying attention to making what we have got work.  

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  • #5782

    sylvia hammond
    Keymaster

    Ah, Marufu – thanks for that comment – a lady President – no luxury cars – I wonder if pride and big egos is part of the problem?

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  • #5781

    Ian Webster
    Participant

    Now, now, Sylvia, don’t get all feminist on us.  Can’t have too many women presidents you know. They might start talking to each other and stop all fighting; defence budgets would go to blazes, and we men would have even less to do.

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  • #5780

    sylvia hammond
    Keymaster

    Big chuckle – you hit the nail on the head, I think – and think of all the arm deals that would fall through.

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  • #5779

    Cindy Payle
    Keymaster

    Thank you again for your contributions! – what I hear a lot of people saying is that proposals or plans for the future of our country will not be fruitful as long as the people who are implementing them are corrupt. While we may disagree on many issues there is one point on which we all agree, and that is the call for leaders we can trust. 

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  • #5778

    sylvia hammond
    Keymaster

    Absolutely – well-summarised Cindy – and I’d add people of good will to start to work together now. 

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  • #5777

    Yes Cindy!!! We are hungry for an exemplary leadership we can all be proud of…leaders who have a good vision for this country – thank you for the good debate

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  • #5776

    Let the first citizen start first.

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