Tito Mboweni was a trade unionist who became governor of the South African Reserve Bank several years ago. Consensus is that he has been doing a good job … until now.
He has been urging businesses and trade unions to moderate salary increases to below the rate of inflation, no more than 10 percent. But the latest annual report of the Bank shows he got a 28 percent salary increase, not only that but his annual salary is now over three million Rands, that’s three times more than President Thabo Mbeki.
Whoever in the Reserve Bank thought this news would not be controversial? And it goes to show that no one is immune to the lures of market greed.
In a related story, directors’ salaries in general have been above inflation, creating another big stink amongst trade unions. Be prepared for big fights between labour and business when it comes to salary negotiations in coming months.