By Charmaine Ndlela
The Congress of South African Trade Unions (COSATU) and the Federation of Unions of South Africa (FEDUSA) have given the Government Employees Medical Scheme (GEMS) until May 6, 2026, to review its 9.5% contribution increase or face intensified worker action.
The ultimatum follows a meeting between organised labour and GEMS, where unions rejected the scheme’s justification for the increase, describing it as unaffordable for public servants.
In a joint statement, COSATU and FEDUSA said GEMS had failed to offer a meaningful solution during engagements.
“GEMS came to the meeting with explanations that do not shift the hardships faced by workers,” the unions said.
They criticised the scheme for relying on actuarial modelling, reserve requirements and industry comparisons to justify the hike, arguing this does not address underlying governance failures.
The 9.5% increase took effect on Feb. 1, 2026, with GEMS saying it is necessary to maintain financial sustainability and meet healthcare obligations.
However, COSATU and FEDUSA said the increase is excessive, unjust and unsustainable, particularly amid rising living costs.
The unions reiterated that GEMS should focus on addressing governance failures and cost inefficiencies within the scheme rather than relying on technical justifications.
They have demanded that GEMS return with a substantive response that includes a review of the increase and a commitment to a structured engagement process with organised labour.
This includes establishing a memorandum of understanding to ensure regular leadership-level engagements and improved transparency in decision-making.
The unions are also calling for a formal engagement framework, including leadership-level meetings at least twice a year through the Public Service Coordinating Bargaining Council (PSCBC).
They stressed that GEMS was established as a social solidarity scheme, not a profit-driven entity.
“GEMS was not established as a commercial medical scheme. It was built as a social solidarity scheme for public servants. It cannot now behave like a private scheme by shifting institutional failure onto members while asking workers to accept reduced benefits, higher contributions and weaker protection,” they said.
COSATU and FEDUSA warned that failure to meet the deadline could trigger escalated action, including workplace mobilisation, mass demonstrations and potential legal challenges.
“If GEMS returns with another technical defence instead of a real review, we will escalate the campaign.”
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