/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Federation of Unions of South Africa (FEDUSA) extends its heartfelt congratulations to its affiliate, the Public Servants Association (PSA) on their recent victory in the High Court against the South African Revenue Service (SARS). This ruling comes after a prolonged dispute regarding the implementation of the 2019-wage agreement.

The three-year wage agreement was concluded on 31 March 2019 and included provisions for salary increases in the years 2019/2020, 2020/2021, and 2021/2022. While the salary increases were duly implemented in the first two years, SARS had regrettably failed to implement the agreed-upon increases for the 2021/2022 period. This is a trend we previously warned against when the state reneged on its obligation to pay public servants’ salary increases in the last year of the 2018 multi term wage agreement. 

The PSA, rightfully seeking relief, approached the High Court to assert the validity and binding nature of the Substantive Wage Agreement. They also sought an order for SARS to implement the salary increases as stipulated in Clause 4.1 of the agreement for the 2021/2022 period. The court, recognizing the lawfulness and validity of the Wage Agreement, ruled in favor of the PSA, granting the relief sought.

FEDUSA expresses its disappointment that the PSA had to resort to legal action to ensure SARS honours an agreement made during collective bargaining. The power and authority of collective bargaining should never be undermined. SARS' decision to disregard the wage agreement they willingly entered with trade unions is an affront to the principles of collective bargaining and should be taken seriously and be cautioned against.

It is crucial to acknowledge that the period during which SARS failed to implement the salary increases had a detrimental impact on the affected workers, particularly considering the high cost of living in South Africa. Therefore, FEDUSA calls upon SARS to accept the judgment of the High Court and promptly implement the agreed-upon salary increases. Attempts to challenge the ruling would only see much needed taxpayers’ funds going to waste and will worsen labour relations in the workplace. 

In conclusion, as we celebrate the PSA's victory, let it serve as a reminder of the significant role collective bargaining plays in shaping the future of our unions and in protecting the interests of workers. We firmly believe that through collective efforts, as the labour force of our nation, we can achieve victory for workers. Our unions are committed to advocating for and protecting the rights of workers.

Submitted by the Federation of Unions of South Africa