‘Big business should follow Zuma’s wage freeze example’: Reward Association

President Jacob Zuma’s decision to accept a recommendation that top public officials receive no salary increase this year shows that “those that govern us do not exist in a golden bubble”‚ the South African Reward Association (SARA) said.

The Presidency said on Tuesday that “Zuma has accepted the Independent Commission for the Remuneration of Public Office Bearers recommendations … that there would be no adjustment to the remuneration” of certain public office bearers.

SARA’s Dr Mark Bussin said: “The commission made a bold move in recommending a general wage freeze of South Africa Inc’s top executives‚ and the president has to be commended for acceding.

“This is a great example of nation-building because it sends a very direct message that those that govern us do not exist in a golden bubble‚ and that we are all in this together.”

Bussin added that it “also sends a very powerful signal to trade unions and public servants‚ and will set the tone for the next round of wage negotiations”.

He also suggested that “big business” should take note of the development as the “massive salaries paid to top executives and the gap between them and the lower ranks of employees has been a source of widespread dissatisfaction both in South Africa and globally”.

“We are a very unequal society‚ and the fact that the economy is not growing is making this disparity even worse and ratcheting up social tensions. Those who lead the country and society need to exercise restraint‚ and this is an excellent foundation for rebuilding social trust and cohesion‚” he elaborated.

A Presidency statement on Tuesday noted that the 0% adjustment would apply to all members of the national executive (president‚ deputy president‚ ministers and deputy ministers); all members of the national Parliament; all members of provincial executives and legislatures; all judges; local government (positions of executive mayors to whip); traditional leadership (position of king/queen to full-time deputy chairperson of provincial houses of traditional leaders).