JOHANNESBURG - Acting President Kgalema Motlanthe has declared Tuesday, December 27 a public holiday.

The presidency announced the decision yesterday.

“The 27th day of December 2011 is a public holiday throughout the republic in terms of section 2A of the Public Holidays Act,” Motlanthe’s spokesman Thabo Masebe said  in a statement.

Masebe said the Federation of Unions of SA (Fedusa) had written a letter to the presidency requesting an extra paid public holiday because Christmas fell on a Sunday this year and the Day of Goodwill on a Monday.

“Based on their recommendations, the President approved the public holiday,” Masebe said.

The decision comes as economists warn that  SA’s productivity is at a 40-year low, and that the country already has too many public holidays.

Most developed countries have five to seven public holidays a year, whereas SA stands at  12 days.

Analysts have said this is far too much for a developing economy, especially one which is struggling with poor productivity.

Commenting on the issue, Adcorp labour analyst  Loane Sharp has criticised local labour laws and unions for “hampering” productivity.

“The South African labour force has become less productive in spite of pay increases,”  Sharp said.

“The level of productivity has fallen to its lowest since measurement began in 1973. Productivity is essential for businesses and that is what drives profitability,” he said.

 Economist Mike Schussler said Fedusa’s demand for an additional public holiday would hamper the economy.

“Between R800 million and R1 billion is lost due to public holidays every year,” he said.