By Thapelo Molefe
Ahead of Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement (MTBPS) on Wednesday, South Africa’s union federations are urging the government to prioritise job creation, economic growth and relief from rising living costs.
While Godongwana is expected to save major policy announcements for the February Budget, certain fiscal pressure points are still likely to take centre stage.
The Congress of SA Trade Unions, led by general secretary Solly Phetoe, will picket outside Parliament, demanding that the government adopt policies that boost job creation and strengthen the public services.
Cosatu parliamentary coordinator Matthew Parks said the federation believed that austerity-driven policies have only deepened the country’s economic challenges.
“An economy with 1% growth and a 42% unemployment rate cannot afford a business-as-usual approach,” Parks said in a statement.
Among Cosatu’s demands for the MTBPS are increased funding for public services, particularly in health, education and law enforcement, which are struggling due to unfilled vacancies and resource shortages.
Additionally, Parks said the federation wanted a renewed focus on SOEs, including Eskom and Transnet, that were crucial to the country’s infrastructure and economic backbone.
Cosatu has emphasised that public debt management should not come at the expense of economic growth, arguing that growth-driven policies would generate the tax revenue needed to reduce the debt burden sustainably.
SA Federation of Trade Unions general secretary Zwelinzima Vavi will join an anti-austerity march to demand economic and social reforms.
Vavi said Saftu wanted policies that supported public investment and economic justice.
He said the federation’s key demands included implementing a Basic Income Grant, fully funding public services, rejecting privatisation and prioritising gender-sensitive fiscal approaches.
Vavi said Saftu also wanted strengthened crime prevention programmes, which were essential to community safety and stability.
“Austerity impacts public safety, social welfare and quality of life,” Vavi said in a statement.
“Economic recovery should be built on inclusive policies that protect livelihoods, foster equity, and support sustainable development.”
The Federation of Union of SA also wants relief from the rising cost of living, saying this should happen through reduced fuel levies, increased public transport subsidies and stabilised electricity costs.
Fedusa spokesperson Betty Moleya said the federation had warned that without immediate action, household financial pressure would continue to rise.
It has also called for Gondongwana to avoid austerity measures that cut essential public services.
“The MTBPS must break with austerity and instead prioritise policies that promote growth and social wellbeing,” Moleya said in a statement.
Both Cosatu and Fedusa have expressed serious concerns regarding the restructuring of Transnet, particularly the unbundling of its freight rail division.
The Transnet Rail Infrastructure Management (TRIM) programme is set to open rail infrastructure to private operators, supported by a R47-billion Treasury guarantee.
Labour believes that the process lacks transparency, adequate funding and job security for Transnet employees.
They want the government to ensure the reforms benefit both workers and the economy.
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