/ 18 May 2022

Strike looms at Sars over 0% wage increase

Sars A Team Tackles State Capture
(Delwyn Verasamy/M&G)

A “full-blown strike” at the South African Revenue Service (Sars) is set for 25 May, according to the National Education, Health, and Allied Workers’ Union (Nehawu). The union says the strike will render the system “unworkable” if wage demands are not met. 

Nehawu secretary general Zola Saphetha said this week that plans for the indefinite strike were at an advanced stage. 

Wage negotiations have been deadlocked since January. 

“The union declared a dispute after it was clear that the employer [Sars] was not responding to our wage demands and instead was unwavering, saying that the institution does not have money due to the treasury’s austerity measures,” said Saphetha. 

Nehawu said its members would picket during lunch breaks on 23 May and 24 May. Marches would be organised for 25 May at the Sars offices in the Western Cape and Pretoria. 

The union will march to the treasury on 26 May. 

Newahu is demanding that salaries are adjusted to the October 2021 consumer price index (CPI) of 5% plus an additional 7% across the board, in other words, a 12% increase. 

The revenue collector is not offering an increase. 

“Bringing nothing to the table is as good as refusing negotiation,” said Nehawu president Michael Shingange. 

Shingange said the negotiations failed because Sars was not willing to consider that workers deserved an increase. 

“The government and, in this case, led by the treasury and Sars seek to take every little bit that workers have away from them in order to accumulate profits for the business.  Austerity is the only reason we can think of that would make Sars not increase wages, because nothing that was presented to us makes sense if you consider the economic challenges that workers are faced with,” Shingange said. 

Shingange said he does not expect any pushback from Sars. Other labour unions will be striking on the same day, with the same or similar demands.  

“It is the first time in a long time all the workers and unions are going to be embarking on a strike together, in all the same points. This is because it is important to understand that the challenges workers are facing are the same irrespective of the union they belong to. The impact of the strike will be felt and it would be interesting to see where the pushback will come from,” Shingange said. 

Sars has 12 479 staff members according to its 2020-21 annual report . According to Shingange, 45% of the workforce belongs to Nehawu. 

Nehawu’s decision to strike comes after the Public Servants’ Association (PSA) announced last week that it would strike. Approximately 2 600 Sars employees are members of PSA, according to Reuben Maleka, the PSA’s assistant general manager.

“Sars unashamedly offered a 0% salary increase, despite pronouncing that the tax-revenue collection target was exceeded by 25% during 2020-21. Sars exceeded the revenue target by over R16-billion, and this good performance can only be attributed to dedication and hard work by Sars employees who are now ‘rewarded’ with no salary increase,” the PSA said in a statement

The association also urged Finance Minister Enoch Godongwana urgently to intervene and ensure that the impasse is resolved to avoid a shutdown of services.  

Maleka told the Mail & Guardian that the PSA is appealing to the minister because it hopes Godongwana will “realise the impact and consequences of the employer’s stance to give a 0% increase [as it] puts risk to the services rendered by members who will and are prepared for indefinite strike action”.

The Commission for Conciliation, Mediation and Arbitration (CCMA) was unable to reach agreement between the parties and the dispute remained unresolved. 

Besides the wage increase of CPI plus 7%, the PSA demands include full and equal medical aid and housing allowance for all employees; a so-called pandemic leave of 10 days a year for circumstances such as vaccinations and isolation; that vacancies are ringfenced for internal staff; and a R2 000 token of appreciation, among others. 

The Federation of Unions of South Africa (Fedusa) said it fully supported the PSA’s notice to embark on strike after Sars consistently refused to move from its 0% offer. 

“Sars’ ridiculous offer of a 0% wage increase throughout the negotiations when the prices of basic services, food, fuel and electricity continue to increase at inflationary rates is an insult to our members. How are they expected to make ends meet in such an environment?” Fedusa general secretary Riefdah Ajam said in an emailed statement. 

Nehawu’s Saphetha said: “We are confident on the state of readiness for 25 May where our members will demonstrate their power and send a clear message that no employer must take workers for granted.” 

Sars told the M&G it would issue a statement “in due time”. 

Anathi Madubela is an Adamela Trust business reporter at the M&G.

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