South Africa’s hosting of the World Cup may leave an unintended legacy: a bloated wage bill at a time when the government is trying to rein in debt and bolster spending on basic services, says Mike Cohen and Franz Wild of the Business Report.

‘Following an 18-day strike that crippled exports, state transport company Transnet last week agreed to raise wages by 11 percent, more than double the rate of inflation. Now, 1 million state employees are threatening action during the month-long tournament that starts on June 11 unless they receive similar increases. Mediation efforts will resume this week.’

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