Mr Speaker, South Africa is bracing itself once again for a strike for higher wages. Troye Lund warned in Finance Week that this round of wage negotiations would be a critical test for the unions to put the economy ahead of political expedience. If the expanding public sector wage bill carries on growing unrestrained, it will eventually torpedo plans to accelerate real economic development.
We cannot collect enough taxes to meet above-inflation wage demands. Statistics SA has shown that 30% of local government expenditure is already on salaries. In addition to this fact, some sectors in the public sector now earn 44% more than their peers in the private sector. It is time to stop the bus. Employees must change their behaviour. We cannot allow misbehaviour during strikes to be rewarded. We must address the growing salary gap between top management and workers.
Municipal managers who earn more than the President or Cabinet Ministers must stop. Exorbitant share options and bonuses paid to JSE-listed companies and Transnet top executives are fuelling the argument for union leaders. Minister Pravin Gordhan's statement yesterday, that the time has arrived for us to change the way we see the labour dispensation, must be welcomed. We are all in this together. Let's act responsibly. [Applause.]