South Africa: proposed public sector job cuts, counterbalance to adverse policy

Summary A proposal by the Ramaphosa administration to retrench 30,000 public sector workers would be on the surface to redress rising pressure on the country’s treasury. The true political agenda is likely to counterbalance otherwise adverse economic policies. The development will come at a steep political price as the scope of the job-cuts contradict ruling African National Congress political imperatives. Analysis Reports emerged August 10 that the Ramaphosa administration is proposing to lay off 30,000 public sector employees. The move aims to reduce the government’s civil service wage bill, but the reversal of the social compact understood between the African …

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