We are not opposed to workers receiving real salary increases. Firstly, we feel that there should be an equitable sharing of productivity gains between workers and investors. An unequal sharing of such gains in either direction is unsustainable. Secondly, there must, especially in the South African context, be an appropriate sharing of productivity gains between workers and senior managers.
Thirdly, productivity gains should be shared between existing workers and new additions to the workplace. If existing workers take all the productivity gains, then there is little scope to increase employment. The trend in recent years in South Africa has been for workers to receive salary settlements in excess of inflation and productivity gains. Firms respond to this situation by reducing staff numbers.