A new report released by Price Waterhouse Coopers, has found that executive directors paid themselves more than inflation last year, despite telling workers not to demand big wage increases.
Gerald Seegers , Director at PWC, joins Stephen Grootes on the line from Johannesburg.
He says you need to look at it overall, though it may look very inflationary. Some sectors have had bigger increases than others.
There is definitely now a crossroads we are going through, where the shift has moved to... say we can't just measure the level of executive pay and increases, we know also have to pay attention... and take action about public concerns about the level of pay.— Gerald Seegers , Director at PWC
He says there is a global shift looking beyond just the levels of pay, to community concerns. What have these companies done to alleviate poverty and unemployment?
We've seen it all around the world, where people start voting with their feet.— Gerald Seegers , Director at PWC
Cosatu's Sizwe Pamla says this is commonly seen even during an economic downturn like we are experiencing. He says these executives go to shareholders and propose restructuring, which in effect leads to workers losing jobs.
They keep pretending that that status quo is sustainable.— Sizwe Pamla, Cosatu
He says it is up to social partners to put pressure on business to cap these increases.
Listen to the interviews below:
This article first appeared on 702 : Executives cashing in with above inflation pay cheques