Fin24 reports that the ongoing strike at the SA Revenue Service (SARS) heightens the risk that government may be forced to capitulate to union demands in wage talks for a second time this year.
Employees at Eskom recently secured a 7% increase after an unprotected strike plunged the country into stage 6 load shedding. Meanwhile, the government is currently in public service wage talks, where demands for a 10% wage increase have, thus far, been rejected. Labour economist Andrew Levy previously warned against setting a precedent where labour could disrupt essential services with impunity and still get the increases they sought. After wage talks at SARS went into deadlock again, the Public Servants Association (PSA) and the National Education, Health and Allied Workers' Union (Nehawu) resumed an earlier strike on Tuesday, impacting some 18 branches. The unions are demanding a 7% increase. SARS has offered to channel its savings from 2021 towards salaries, but unions said this would only amount to a 1.3% increase and rejected it. SARS claimed it could not afford the 7% increase without further funding. The strike comes at a sensitive time for SARS, at the start of tax season. Nehawu’s Lwazi Nkolisi said it would be inconsistent if Eskom employees were allowed to down tools and disrupt power plant maintenance but nevertheless receive a 7% wage increase, if SARS employees were then subsequently refused increases on the basis of affordability. The beleaguered freight and logistics sector fears the impact of the SARS strike at the country's already congested border posts. Mary Phadi of the Trucking Association of SA commented: "As per their media briefing, SARS said they remain operational because of the support from other government agencies, whereas they know very well that their own staff are struggling to keep up with the current congestion at all the border posts."
- Read the full original of the report in the above regard by Khulekani Magubane at Fin24 (subscriber access only)
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