Sars mum on Nehawu strike after four months deadlock, experts predict wide ramifications

In an unprecedented move that could bring revenue collection in South Africa to an indefinite standstill, the National Education, Health and Allied Workers’ Union (Nehawu) has launched a countrywide strike – starting next Wednesday – calling on the SA Revenue Service (Sars) to accede to its wage increase demands, following a deadlock that has dragged beyond four months.

Guarded in commenting on the economic impact of the planned industrial action, Sars commissioner Edward Kieswetter on Tuesday would not be drawn out on the effect the strike would have on revenue collection.

“We are still in discussion with our unions and I’d rather not get ahead of these discussions.

“The nature of these engagements are such that one always remains committed to seeking resolution and avoiding industrial action,” said Kieswetter.

University of Johannesburg associate economics professor Peter Baur has warned that the planned strike at Sars could lead to the disruption of services – leading to backlogs and delays, which might affect industries.

“Given the current economic climate, such trade disruptions could have quite an effect on the country’s balance sheet – in both the short and the long run – through contracts, agreements and possibly affecting future trade agreements.

“As an economy, South Africa is working with a very narrow margin for error – given the current global economic climate and dependency on trade of goods and commodities, which are helping to protect the stability of the rand,” said Baur.

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“Beyond this, it’s the old argument of trying to maintain investor confidence, while promoting a sound and secure environment to do business within South Africa.”

At the core of the standoff between labour and Sars are what Nehawu general secretary Zola Saphetha described as “substantive demands” tabled before Kieswetter.

These included:

• Adjustment of salaries, using last October’s consumer price index of 4.5% and 7%, across the board for employees within the bargaining unit;
• A full, equal medical aid and housing allowance for all employees;
• Introduction of a Covid pandemic leave – 10 working days per annum;
• A R2 000 gift (token of appreciation) to be extended to employees aged 60 to 65 years; and
• Pay progression – an upwards 1.5% annual adjustment on the applicable pay band where the employee has met the required performance standard.

Saphetha said wage negotiations began in January, with the union declaring a dispute “after it was clear that the employer was not forthcoming on our wage demands”.

“At this stage, we are happy and confident of the state of readiness for the full-blown strike to kick start on 25 May 2022, where our members shall demonstrate their power and send a clear message that no employer must take workers for granted.

“The union will conduct pickets during lunch on 23 and 24 May, and organise marches in the Western Cape to Sars offices, and in Gauteng to its head office.

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“This will be followed by marches to the National Treasury and the department of trade and industry on 26 May,” said Saphetha.

Sars, he said, “has reneged in implementing the last leg of the 2019 wage agreement”. That was not paying workers the agreed last leg of 6.2%, with Sars only paying a portion of 3.9%.

“The union strongly believes that the employer can meet our demands as Sars managed to collect R1.56 trillion in tax revenue for the 2021-22 financial year – representing a 25% year-on-year increase on the R1.25-trillion collected in the 2020-21 financial year,” said Saphetha