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?