SARSBusinessLive reports that strike action by the Public Servants Association (PSA) and the National Education, Health and Allied Workers’ Union (Nehawu) at the SA Revenue Service (SARS) is set to resume from Tuesday and could affect tax collection at the agency.

The two trade unions, which represent the majority of the nearly 13,000-strong workforce at SARS, said the industrial action would recommence after a meeting with management in June failed to secure an agreement. When the strike action began in May, SARS called on people to use its online services and claimed at the time the industrial action had little impact on its operations. But the two unions insisted on Monday that the resumption of the strike action would have a negative impact on SARS’ operations, especially since it was the tax season. The PSA and Nehawu downed tools on 26 May demanding increases of 11.5% and 12% respectively. Against this, the employer reportedly offered R70m to fund pay rises and R430m as a one-off gratuity payment for the 2021/2022 financial year. The R500m offer was rejected by unions who argued that it would translate only to a rise of 1.3% and a one-off R3,000 cash gratuity. In a statement on Monday, Nehawu’s Zola Saphetha said: “As Nehawu, we have tried to engage the institution since May and they remained stubborn with the 1.39% [offer] that is way below the inflation rate of 5.9%.” He stressed that the tax agency had rejected the union’s demands, which included a R2,000 “token of appreciation” to all employees, and an annual 1.5% pay progression. The PSA’s Reuben Maleka indicated: “We are together with Nehawu on this. The strike resumes on Tuesday.”


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