Johannesburg - The Congress of South African Trade Unions (Cosatu) is not impressed with Finance Minister Enoch Godongwana's Budget. The union has called it "lukewarm".
It said it was concerned by the Budget as it did not speak to the country's stagnant economy which has been in the decline at least for over 10 years now. The federation was reacting to the minister’s medium term budget policy statement tabled before Parliament on Wednesday afternoon.
Cosatu said the country's economy has been suffocated long enough through austerity measures, budget cuts and the scapegoating of public servants.
"The government needs to focus on addressing fundamental causes of the fiscal crisis. Namely a stagnant economy, rampant corruption, massive unemployment, load shedding and limping SOEs, and not outsource the bill for corruption and incompetence to workers," Cosatu commented.
Cosatu said the government needs to resolve the current impasse between unions and public servants whose livelihoods have been decimated by the rising costs of living, adding that any disruption to services impacted the economy negatively.
Cosatu’s statement comes after unions and state employees have threatened a nationwide strike following a breakdown in wage negotiations between the public service sector unions and government at the Commission for Conciliation, Mediation and Arbitration over a proposed 3% wage hike offer from government.
“We reiterate our position that an amicable solution should be found to avert the strike that will impact service delivery and undermine the economy. Government needs to resolve the current impasse with workers to avert any disruption of public services, because this economy cannot afford a strike.
“… no one wants a strike. A public service strike will cause major and extended labour unrest and a crisis of service," Cosatu said.
The federation has pleaded with the government to be more bold and decisive in its efforts to move the country from a decade of economic ruin, adding that more needs to be done to shed the colonial structure of the country's economy.
"Much more must be done to address the crises of unemployment, poverty and increasing inequality. Much more must be done in transforming the colonial structure of the South African economy and forging an industrialisation-led growth path.
“We expect government to undertake more decisive interventions to stem the unfolding de-industrialisation and job losses from cheap imports," it added.