Johannesburg - Government must ignore advice from the International Monetary Fund (IMF), Nehawu said on Wednesday.
“The IMF should keep its nose out of the South African policy formulation processes and stop imposing its ineffectual policy of so called 'fiscal rectitude' on South Africa,” the National Education, Health and Allied Workers' Union (Nehawu) said in a statement.
“This is the same policy that has left millions of people trapped in a cycle of poverty around the world.”
Nehawu said government should not allow the IMF to hijack the people's mandate and impose neo-liberal policies on the country.
The IMF released its Article IV report on South Africa on Tuesday.
It was compiled after consultations between the country and the IMF between May 22 and June 4.
The IMF holds bilateral discussions with its members every year.
According to the report, South Africa's economy had made important strides over the past two decades, but in recent years the structural problems holding back growth and job creation had come to the fore.
The country had under-performed compared to other emerging markets and commodity exporters, increasing the already high levels of unemployment and inequality.
Coupled with declining competitiveness and counter-cyclical fiscal policy, this had led to rising fiscal and current account deficits, which made South Africa vulnerable to a prolonged reversal of capital inflows and a further repricing of risk premia.
The rand had been one of the worst performing emerging market currencies in 2013.
Nehawu said the IMF had destroyed many people's livelihoods with its policies.
Earlier, Treasury said issues raised by IMF were already being addressed in government policies and programmes.
Cabinet, at its August lekgotla, agreed that the country's economy could no longer rely heavily on the global economy to reignite growth and create jobs, it said. - Sapa