The Federation of Unions of South Africa (FEDUSA) awaits the 2025 State of the Nation Address (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 thousand workers, FEDUSA urges the government to take bold, decisive action to address critical socio-economic challenges and implement measures that promote inclusive growth, job security, and social justice.
The Harmful Effects of Austerity on South Africans
FEDUSA strongly opposes the continued implementation of austerity measures, which have disproportionately affected the working class and the most vulnerable in our society. 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. Austerity measures hinder job creation, worsening the economic outlook and consequently increasing inequality and unemployment, to the detriment of the majority of South Africans.
Austerity’s Impact on Labour Courts, CCMA, and Social Justice
One of the most alarming consequences of austerity is the erosion of labour rights and access to justice for workers. Budgetary constraints have significantly undermined the efficiency of labour courts and the Commission for Conciliation, Mediation and Arbitration (CCMA), leaving thousands of cases unresolved for extended periods. This denies workers swift and fair resolutions to workplace disputes, further exposing them to exploitation and unjust labour practices. The government must prioritise the proper funding of these institutions to uphold the fundamental rights of workers and maintain labour stability in the country.
Cost-of-Living Crisis: A Pressing Concern
The rising cost of living remains a primary concern for FEDUSA members and South Africans at large. Inflation, stagnant wages, and high levels of unemployment have placed significant financial strain on households, making it increasingly difficult for families to afford basic necessities. The government must intervene with policy measures that protect low- and middle-income earners, including price regulation mechanisms on essential goods, fuel, and foodstuffs.
The Burden of Energy and Transport Costs
Skyrocketing electricity prices and erratic power supply, labelled load reduction, continue to disrupt workers’ livelihoods, and stifle economic growth. While efforts to stabilise Eskom’s performance are noted, more needs to be done to reduce electricity costs and ensure sustainable energy supply for all South Africans. Likewise, the cost of transport has escalated, making it more expensive for workers to commute to their places of employment. FEDUSA calls on the government to urgently address these challenges by improving public transport infrastructure, stabilising fuel prices, and ensuring access to affordable, reliable energy.
Economic Reform for Inclusive Growth and Equality
Economic transformation must 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. FEDUSA also calls for increased investment in education and skills development programmes that align with the changing demands of the job market.
The Need for a Basic Income Grant
The introduction of a universal Basic Income Grant (BIG) is a necessity in the face of persistent poverty and unemployment. Millions of South Africans remain without work or stable sources of income, pushing them deeper into economic hardship. FEDUSA believes that a well-designed BIG will provide relief to vulnerable households, stimulate demand in the economy, and create an enabling environment for job-seeking individuals to participate more effectively in the labour market.
Building a Capable and Efficient Public Sector
A well-functioning state is essential for delivering services to citizens effectively. FEDUSA reiterates the importance of capacitating the public sector through professionalisation, skills development, and the elimination of corruption. The state must attract and retain qualified professionals in key sectors such as healthcare, education, and law enforcement to improve service delivery and economic stability.
The Future of Transnet and State-Owned Enterprises (SOEs)
The decline of state-owned enterprises (SOEs) such as Transnet has had dire consequences for the economy. Logistics bottlenecks, inefficiencies, and mismanagement in Transnet have crippled industries reliant on efficient rail and port operations. FEDUSA calls for decisive action to stabilise and reform SOEs to ensure they contribute meaningfully to economic growth and job creation. Instead of privatisation, the government must explore sustainable turnaround strategies that prioritise the interests of workers and the public.
Digitising Government Services for Global Competitiveness
The government must embrace technological advancements to enhance service delivery, reduce inefficiencies, and improve transparency. Digital transformation is critical in modernising public services and ensuring that South Africa keeps pace with global developments. FEDUSA urges the state to accelerate its efforts in digitising key government functions, making services more accessible and reducing administrative bottlenecks.
Additional Critical Issues
- Job Creation and Youth Unemployment – Government must introduce targeted interventions to address unemployment, including industrial expansion and vocational training.
- Wage Growth and Collective Bargaining – Strengthen wage protections and ensure fair collective bargaining processes.
Gender Equality and Workplace Transformation – Address wage gaps, workplace discrimination, and promote gender inclusivity. - Healthcare System and NHI Implementation – Ensure universal healthcare is well-funded and efficiently rolled out.
- Housing and Urban Development – Expand social housing and regulate rental markets.
- Food Security and Agricultural Development – Protect local farmers and regulate food prices.
- Strengthening Anti-Corruption Measures – Enforce accountability and transparency in public procurement.
- Mental Health and Worker Well-being – Integrate mental health policies in workplaces.
- Water Security and Infrastructure Maintenance – Invest in sustainable water resource management.
- Education System Reform – Strengthen STEM education and link education to job market needs.
10. Tax Justice and Fair Fiscal Policy – Implement progressive taxation and curb corporate tax evasion. - Just Energy Transition- The escalating climate crisis, marked by increasingly frequent and severe weather events like droughts, demands urgent action. A Just Transition to a sustainable economy remains difficult to achieve but the solutions must be fair to all.
As President Cyril Ramaphosa prepares to deliver the 2025 SONA, FEDUSA urges the government to move beyond rhetoric and take meaningful action to address these pressing challenges. South Africans deserve a government that prioritises their well-being, 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.