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Trade unions on Wednesday welcomed the suspension of pay increases for CEOs and board members of parastatals, saying it was long overdue.
"We share his [Public Works Minister Malusi Gigaba's] great concern that the remuneration generally of executives is quite high," the SA Transport and Allied Workers' union and the National Union of Metalworkers of SA said.
"It doesn't contribute to bridging the inequality gaps between the highest paid and the lowest paid," Satawu said, quoting Gigaba.
The union said it would use these "immoral and excessive" salaries paid to executives at state-owned entities to convince its members to fight for big increases.
"Their current pay continues to imitate those in the private sector. Satawu is fully supportive of the decision taken by the minister."
Numsa echoed these sentiments, saying salaries paid to CEOs in public and private institutions were "deplorable and an insult" to other public representatives and workers who earned far less.
Gigaba reportedly told Parliament's standing committee on public accounts of his decision to suspend pay increases for CEOs and board members of parastatals until a remuneration policy had been put in place.
"The decision we have taken is not to increase the remuneration of non-executive directors until we finalise our views on these," Gigaba was quoted as saying.
"The same applies to the chief executives of the companies."
Gigaba reportedly took issue with the R10 million paid to Transnet Freight Rail CEO Siyabonga Gama in incentives and bonuses while he was suspended.
Gama was suspended in September 2009 and fired in June 2010. He was reinstated in February last year. In light of the Gama issue, Gigaba said incentives paid to executives of state-owned enterprises should be reconsidered.
