Labour federations have called on President Cyril Ramaphosa to take decisive action in his state of the nation address (Sona) on Thursday to address the country’s socioeconomic crises.
The address, which marks the annual opening of parliament, will be Ramaphosa’s first as head of the government of national unity (GNU) which has been hailed for garnering business and investor support. It was formed after the ANC lost its majority support during general elections in May 2024.
The Federation of Unions of SA (Fedusa) and Cosatu said they were “strongly” opposed to the continued implementation of austerity measures, “which have disproportionately affected the working class and the most vulnerable in our society”.
Fedusa general secretary Riefdah Ajam said the union awaits the Sona with “cautious optimism, as millions of South Africans continue to face deepening economic hardship due to rising living costs, high unemployment, and an unstable public service infrastructure”.
“As the voice of 617,000 workers, Fedusa urges the government to take bold, decisive action to address critical socioeconomic challenges and implement measures that promote inclusive growth, job security, and social justice,” she said.
“Budget cuts in critical areas such as healthcare, education, and social services have led to diminished public services, job losses, and declining economic activity. Rather than stimulating growth, austerity has resulted in increased inequality, constrained economic participation, and widespread discontent among South Africans.”
Fedusa called for economic transformation to be at the “heart of government policy”.
“Fedusa supports structural reforms that foster job creation, support small businesses, and reduce economic inequality. Government must shift from policies that perpetuate economic exclusion and instead invest in industries that can absorb the large number of unemployed South Africans,” Ajam said.
She called on the government to move “beyond rhetoric and take meaningful action to address these pressing challenges. South Africans deserve a government that prioritises their wellbeing, protects workers' rights, and fosters an environment for sustainable economic growth. Fedusa stands ready to work with all stakeholders in shaping policies that lead to a more just, inclusive, and prosperous society”.
Cosatu spokesperson Zanele Sabela said the federation was anxious to hear what Ramaphosa would say regarding a political solution to the conflict in east of Democratic Republic of Congo (DRC) that has claimed the lives of 14 SA National Defence Force troops.
The government needed to provide extra support to Eskom by “relaxing its debt relief conditions”, Sabela added. “The federation is concerned about the rising level of municipal debt owed to Eskom, which is at R90bn and is bound to increase if not addressed. Measures should be put in place to tackle the debt,” she said.
“Connected to the Eskom debt, we expect the president to talk to the challenges at local government level. The majority of municipalities are dysfunctional and unable to deliver services to citizens. The current municipal funding model must be overhauled. Though this cannot be done overnight, we expect it to be mentioned.”
Sabela said Cosatu also anticipated an announcement on how the government will provide additional support to Transnet and Metrorail as these entities “are crucial for economic growth”.
Ramaphosa needed to announce measures to equip the SA Revenue Service (Sars) with additional resources to improve tax compliance to 70% from 64%, “resulting in more revenue in the coffers”.
Cosatu also called on Ramaphosa to discuss public employment programmes. “We hope the government will abandon its tried and failed austerity and fill critical public service vacancies to ensure delivery of services,” Sabela said.
National Council of Trade Unions general secretary Narius Moloto said the council hoped the president would address the scourge of unemployment in SA and “continued retrenchments”.
Troubled steel producer ArcelorMittal SA recently announced the closure of its long steel operations in Newcastle and Vereeniging, affecting at least 3,500 jobs.
SA Federation of Trade Unions (Saftu) general secretary Zwelinzima Vavi said it approached the Sona with “deep concern and scepticism. ”.
“Saftu has consistently warned that the coming together of these two political forces would be a doomsday scenario for workers and the poor. We expect no fundamental changes to the failed economic programmes that have reproduced unemployment, poverty, and inequality,” Vavi said.
Vavi said budget cuts in healthcare, education, public safety, and other essential services have resulted in “huge job losses, service delivery failures, and worsening poverty”.
“Saftu demands the immediate reversal of austerity policies and a shift towards progressive fiscal measures that prioritise public investment and social welfare over the interests of capital.”
Saftu’s demands for the Sona, said Vavi, include an end to austerity and fiscal consideration, filling of public service vacancies, action on corruption and full implementation of the state capture commission’s recommendations.
It also called for a “bold industrialisation plan”, protection of workers’ rights, and a living wage, among other things.
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