17 February 2025
The Federation of Unions of South Africa (FEDUSA) approaches the 2025 National Budget Speech with heightened urgency, as the country faces unprecedented economic and social challenges. With rising living costs, stagnant job growth, failing public institutions, and an overburdened workforce, Finance Minister Enoch Godongwana must present a budget that prioritises inclusive economic growth, job security, and social justice. FEDUSA, representing 617,000 workers across diverse sectors, demands bold fiscal policies that alleviate the suffering of South Africans and stimulate sustainable development.
Rejecting Austerity: Investing in Growth FEDUSA remains adamant that austerity measures have failed the country. Persistent budget cuts have crippled essential services, increased unemployment, and deepened inequality. The government must decisively abandon austerity and implement expansionary fiscal policies that focus on long-term economic recovery, including:
Increasing investment in public infrastructure projects to drive job creation and economic activity.
Restoring funding to key public institutions, particularly in healthcare, education, and social services.
Expanding industrial development initiatives to stimulate manufacturing, technology, and green energy sectors.
Addressing the Global Economic Shifts and Ensuring Stability The global economic landscape is shifting, with rising geopolitical tensions, inflationary pressures, and slowdowns in major economies impacting South Africa. FEDUSA calls on the government to take proactive steps to safeguard South Africans against economic downturns by:
Strengthening trade and industrial policies to protect local industries and jobs.
Diversifying export markets to reduce over-reliance on unstable global economic partners.
Establishing financial relief mechanisms for workers and businesses affected by global disruptions.
Enhancing collaboration with BRICS nations and other economic blocs to attract investment and technology transfer.
The Impact of the PEPFAR Funding Withdrawal The recent withdrawal of the critical U.S. President’s
Emergency Plan for AIDS Relief (PEPFAR) funding threatens to undermine HIV/AIDS prevention, treatment, and care programmes in South Africa. FEDUSA demands immediate government action to:
Identify alternative funding sources to sustain life-saving HIV/AIDS programmes.
Strengthen partnerships with the private sector and global health organisations to fill financial gaps.
Prioritise the allocation of public funds to maintain critical healthcare services for vulnerable communities.
Implement a long-term strategy for domestic funding of public health initiatives to reduce reliance on foreign aid.
Strengthening Labour Institutions: Protecting Workers’ Rights The Commission for Conciliation,
Mediation and Arbitration (CCMA) and the labour courts play a critical role in maintaining labour stability and resolving disputes. However, severe underfunding has resulted in thousands of unresolved cases, delaying justice for workers and eroding trust in these institutions. FEDUSA calls on the government to:
Fully fund and capacitate the CCMA and labour courts to ensure swift case resolution.
Enforce stricter oversight on compliance with labour laws, particularly in precarious and informal employment sectors.
Introduce measures that strengthen collective bargaining rights and prevent the erosion of wage protections.
Addressing the Cost-of-Living Crisis South Africans are facing one of the worst cost-of-living crises in history, with inflation outpacing wage growth and unemployment reaching critical levels. FEDUSA demands immediate interventions, including:
Implementing strict price regulation mechanisms on essential goods, fuel, and food to protect consumers.
Expanding public transport subsidies and introducing measures to curb escalating commuting costs.
Strengthening wage policies to ensure earnings keep pace with inflation and productivity levels.
Revising the taxation structure to offer relief to middle- and low-income households while ensuring the wealthy contribute fairly.
Urgent Action on Energy and Transport Costs The ongoing energy crisis and rising transport costs continue to place an unbearable burden on workers and businesses. Eskom’s financial and operational instability, coupled with ineffective policy responses, has left the economy in a fragile state. FEDUSA calls for:
A comprehensive review of Eskom’s pricing model to ensure electricity remains affordable.
Accelerating investment in alternative and renewable energy sources to diversify supply and reduce reliance on fossil fuels.
Implementing stricter regulatory frameworks to prevent fuel price manipulation and sudden increases.
Prioritising investment in affordable and efficient public transport networks to alleviate economic pressure on workers.
Reviving State-Owned Enterprises (SOEs): Ending Mismanagement The dysfunction of SOEs, particularly Transnet, has stifled economic growth, damaged investor confidence, and led to massive job losses. FEDUSA demands:
A clear, transparent, and worker-centric plan for stabilising Transnet and other SOEs.
Increased accountability measures to root out corruption and inefficiency within SOEs.
Halt the privatisation of SOEs to protect jobs and the state’s autonomy.
A moratorium on mass retrenchments and a commitment to skills development and reskilling programmes.
Basic Income Grant: A Lifeline for the Unemployed FEDUSA reiterates its long-standing call for the introduction of a universal Basic Income Grant (BIG) to combat extreme poverty and chronic unemployment. A well-structured BIG will:
Provide economic relief to millions of South Africans struggling to afford basic necessities.
Stimulate consumer demand and local economic activity by increasing household spending power.
Complement employment initiatives by offering financial security to job seekers.
Be sustainably funded through progressive taxation and efficient public spending.
Strengthening Institutions to Curb Illicit Financial Flows FEDUSA calls for urgent measures to strengthen the capacity of state institutions such as SARS, SAPS, and Intelligence, in collaboration with SADC and continental organs, to produce standardized estimates and proper data of illicit financial flows. This includes enhancing investigative and analytical capacities to develop evidence-based policy responses to monitor and curb illicit financial flows. Specific actions include:
Setting clear targets such as NDP goals to significantly reduce illicit financial flows.
Strengthening the recovery and return of stolen assets and combating all forms of organized crime.
Substantially reducing corruption and bribery in all their forms.
Developing effective, accountable, and transparent institutions at all levels.
Combating poaching, trafficking of persons, and protected species.
Increasing the capacity of local communities to pursue sustainable livelihood opportunities.
Addressing both the demand and supply aspects of poaching and trafficking.
Tax Justice and Fiscal Fairness The current tax framework disproportionately burdens the working class while allowing corporate tax evasion to flourish. FEDUSA calls for a restructuring of the taxation system, including:
Introducing a wealth tax that taxes a percentage of an individual’s net worth classified as super-rich.
Setting tax thresholds that define a specific net worth level above which the wealth tax applies.
Implementing transparency and enforcement systems to identify and track the assets of the super-rich to prevent tax evasion.
Closing loopholes that enable tax avoidance by multinational corporations.
Implementing a progressive tax system that reduces the financial burden on lower-income households.
Strengthening enforcement against illicit financial flows and corruption in public procurement.
FEDUSA urges the Minister of Finance to present a budget that fosters economic inclusion, protects workers, and upholds social justice. The government must move beyond rhetoric and take decisive, measurable action to create a more equitable, prosperous, and resilient South Africa.