Johannesburg - Cost-cutting measures as directed by the National Treasury to national, provincial, and public entities will ultimately affect the poorest of the poor and lead to deteriorating service levels within the public sector domain.
The fears about the impact on public services come after the National Treasury released guidelines recently detailing cost-containment measures for government departments as it seeks to rein in spending before the mid-term Budget in November.
In a circular sent to all government departments, the Treasury outlined the fiscal challenges, including intense load shedding and freight and port logistical challenges, among others, that necessitated the need for widespread cost-cutting measures. The document explains that the tighter financial conditions were also brought about by a public wage settlement that was higher than budgeted for.
Some of the suggested measures include a freeze on the hiring of new employees; restricting hiring to critical vacancies; curbing infrastructure projects; and a freeze on non-essential travel, catering, conferences, and workshops.
Unions, however, have lashed out at the National Treasury’s directive, terming it an “ill-considered” plan.
The Democratic Nursing Organisation of South Africa’s Sibongiseni Delihlazo said even though the union understood the precarious financial position the country was in and the need to implement controls to avert financial catastrophe, they were worried about the impact on sectors such as health.
Delihlazo said that given how staff-intensive the health-care sector was, they were concerned about facilities’ ability to continue rendering services optimally.
“This circular is giving cart blanche to the provincial treasuries and HODs to become creative in thinking of different ways to cut costs, and I dare say they will obviously think of cutting things like study leave and many other benefits workers need.”
The spokesperson said that while they acknowledged that the hiring of critical staff would be prioritised, some posts, including those of cleaners, clerks, porters, and kitchen staff, remained equally important as they contributed greatly to the care of patients.
“We are fearful that the workforce shortage will be one key issue that will reverse the standard of care that patients receive during this period, and unfortunately, the end of austerity measures will depend on how soon the turnaround on load shedding and freight operations is realised,” he added.
The National Education, Health, and Allied Workers Union (Nehawu) said although it was dismayed by the directive, it was not totally shocked.
The union’s Lwazi Nkolonzi said the freeze on filling vacancies amid high vacancy rates and understaffing within the public sector would contribute to impeding service delivery, which was already on the rocks.
“Our members and workers who are at the coalface of service delivery are overworked, and there is no improvement in pay or conditions of work. As Nehawu, we cannot comprehend the logic of the Treasury when the country is confronted with rocketing unemployment, poverty, and inequality.”
The Star