SA Revenue Service staff back on strike after rejecting a 1.39 percent increase

Sars advised the public not to come to its offices due to the strike. Picture, Jeffrey Abrahams.

Sars advised the public not to come to its offices due to the strike. Picture, Jeffrey Abrahams.

Published Jul 13, 2022

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More than 10 000 Public Servants Association and National Education, Health and Allied Workers Union (Nehawu) members working at the SA Revenue Service (Sars) recommenced their strike yesterday for an approximate 12 percent wage increase.

This was according to Nehawu spokesperson Lwazi Nkolozi, who told Business Report that their members had decided to reject as “an insult” a 1.39 percent annual increase that had been proposed by Sars.

Sars, in the meantime, yesterday advised the public not to come to its offices due to the strike.

The tax authority said it did not decide on its own funding, but was dependent on an annual allocation made through a process managed by the National Treasury.

“The demand of labour of CPI plus 7 percent is simply unaffordable until the Sars receives further funding,” Sars said yesterday.

It said “no work, no pay” would apply for employees who were participating in the industrial action.

Sars the first day of industrial action had seen minimal disruption to its services. While some branches had to close due to an absence of workers, overall taxpayers have continued to interact with the organisation through the online services.

The strike action represents a recommencement of a strike in May that ended when Sars told the unions it was prepared to negotiate on the wage proposals. Nkolozi said their wage demands were in line with the inflation rate for last year and this year and thus fair.

Sars said the dispute arose because of the trade unions’ rejection of the available R70 million for baseline increases for bargaining unit employees.

“As Nehawu, we have tried to engage the institution since May 2022 and they remained stubborn with the 1.39 percent that is way below the current inflation rate of 5.9 percent.”

Sars rejected in May the tabled demands that included the following: Salaries be adjusted using October 2021 CPI of 5 percent + 7 percent, across the board for employees within the bargaining unit; a single-term agreement and implementation date of April 1, 2022; full and equal medical aid and housing allowance for all employees; an introduction of pandemic leave of 10 working days per annum; a R2 000 gift (token of appreciation) to all employees and an annual adjustment upwards on the applicable pay band of 1.5 percent, where the employee has met the required performance standard.

Sars said it remained empathetic to financial challenges caused by increasing food and fuel prices as well as other essential services. These conditions affected the majority of South Africans, including Sars employees, it said.

It said it had business continuity plans so it could continue to deliver essential service to taxpayers.

BUSINESS REPORT