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- Unions have said they plan to strike if Treasury's planned austerity measures are implemented.
- The measures include the possibility of a wage freeze and job cuts.
- Unions have said it will have a dire impact on public services.
- For more financial news, go to the News24 Business front page.
Labour unions are threatening to hold a nationwide strike to voice their opposition against government's latest proposal to address the country's budget crisis, including the possibility of a further wage freeze, job cuts, and more cuts to government services.
"Saftu [South African Federation of Trade Unions] is lobbying with our partners in organised labour to hold a national strike to resist against these cuts as well as other issues such as unemployment. There is a consensus to hold a general strike," Saftu spokesperson Trevor Shaku told News24, adding that a date for the strike had not been set.
Cosatu spokesperson Matthew Parks told News24 that the measures were a draft proposal and had not been formally addressed in government.
"We voiced our concerns during our meeting with [President] Cyril Ramaphosa [on Tuesday]. He was receptive and we are wanting to meet him again in October," said Parks.
"We are very concerned about the measures because it will not solve the ongoing issues at Eskom, Transnet, nor the economy. Government cannot look for shortcuts. It is problematic," he added.
Parks said the union would strike if their concerns were not met in the long-term, but would continue to negotiate with government over the proposals.
On Tuesday, the Presidency said that "unsustainable public debt levels", including low growth rates, are forcing Ramaphosa to consider cutting the government's size to stabilise the economy.
Presidency spokesperson Vincent Magwenya said public-sector expenditure cuts, which he called "a complex exercise" that took time, would be prioritised over the next nine months to "restore confidence and bolster the growth strategy going forward".
Aside from axing public service jobs, or reducing government departments, some of the other measures reportedly being mulled include hiking value-added tax (VAT) by two percentage points to allow for the continuation of the Social Relief or Distress Grant (SDG) beyond March 2024.
Shaku said such measures would have a "dire impact" and "would worsen public service".
Shaku said while the proposed cuts had been discussed with the president, unions demanded another urgent meeting to address their concerns before the tabling of the medium-term budget. However, there are plans to hold a general strike if concerns are not addressed.
"Between 2015 and 2021, there has been a negative growth in the headcount in public service. Freezing of 20 000 posts would have a detrimental impact on our education and even our judicial system," said Shaku.
He said infrastructure cuts would create a backlog and worsen the public school system that is already struggling with overcrowding, and a lack of computer labs and libraries.
Speaking about a possible VAT increase, Shaku said more than 50% of the country could not afford basic necessities and a tax increase would only worsen their circumstances and push the country further into poverty.
Federation of Unions of South Africa (Fedusa) general secretary Riefdah Ajam said the federation completely opposed the austerity measures, adding that the South African public should not be held to account for the failures of government.
"They contributed to the mess we find ourselves in. [To solve its financial crisis] government must look introspectively. What are their plans for debt management and runaway debt management? They must look at all the fruitless expenditure they use to deliver on public service," she said.
Ajam said the union's public committee would meet during the week to consider their position, but would not rule out strike action to voice their rejection of all austerity measures.
