FEDUSA

The Federation of Unions of South Africa (FEDUSA) has applauded the United Nations Security Council’s (UNSC) decision to place a travel and assets ban on Libyan president, Muammar Gaddafi. FEDUSA is however concerned by the slowness of the South African government to condemn the Libyan leader’s human rights abuses and 30 year dictatorial reign.

UNSC Resolution 1970 calls for an immediate foreign asset freeze, travel ban and arms embargo on Gaddafi and a number of his close aides. Additionally, the Libyan Government’s violent suppression of protesters has been referred to the International Criminal Court (ICC) for the investigation of crimes against humanity. Reports from eyewitnesses in Tripoli describe people being shot from ambulances, antiaircraft guns turned on protesters and the removal of dead bodies to obscure the increasing death count. According to FEDUSA General Secretary Dennis George, “The slaughtering of more than 1000 protesters to date cannot go unpunished”.

Continue reading FEDUSA SUGGESTS LIBYAN SOLUTION

The Minister of Finance, Pravin Gordhan, delivered his State of the Nation’s Finances in Parliament earlier today. However, the new budget holds little joy for those hoping for tax relief.

The Federation of Unions of South Africa (FEDUSA) noted and welcomed Minister Gordhan’s tax relief of R8.1bn for individuals to counteract the effects of fiscal drag – that is, the effect of inflation pushing individuals into higher tax brackets. From March 2011, tax will be payable only on income above R59 750 for taxpayers below the age of 65, and R93 150 for those 65 and older. The tax threshold for taxpayers aged 75 and older has increased to R104 261.

The increase in the annual tax-free interest income to R22 800 for individuals below 65 years, and to R33 000 for individuals 65 years and over is welcomed. The tax-free lump sum benefit upon retirement will increase marginally from R300 000 to R315 000.

FEDUSA is dismayed that from March 2012, an employer’s contribution to an employee’s retirement would be treated as a taxable fringe benefit. At the same time, employees would be allowed to deduct up 22.5% of taxable income for contributions to approved retirement funds, up to a maximum of R200 000 per year. FEDUSA regards any taxation of pension funds as very negative when hard working employees are saving for retirement.

Government is to increase the “luxury tax” on motor cars. The Budget Review indicates that passenger cars and light commercial vehicles will be subjected to a “luxury” excise tax that increases with the price of the vehicle. Government proposes to increase the maximum nominal ad valorem excise tax rate on these vehicles from 20% to 25%.

Continue reading FEDUSA COMMENTS ON THE 2011 BUDGET

Today FEDUSA considered the 2011 budget provisions to be announced by the Minister of Finance on 23 February 2011. In our comments FEDUSA determined that global growth will probably be higher than expected in the MTBPS, which also implies higher domestic growth. The IMF’s latest forecast, namely for January 2011 is for global growth of 4.5 per cent this year. According to them, this is higher than the average over the last decade, and an upgrade from there October WEO forecast.

Gordhan (Left) and George (Right)

The General Secretary, Dennis George, warns “that there are signs of two dangerous imbalances, namely, that the recovery is unbalanced between countries and within countries. Growth is still below potential in developed countries while developing and emerging countries are growing much faster and some may be overheating. Within countries growth is unbalanced leading to high levels of unemployment and widening income inequality, adding to social strains.”

Continue reading FEDUSA PRE-BUDGET COMMENTS IN 2011 FOCUS ON JOB CREATION

At last!  After a lot of hard work by Michael (Development) at michaelbain and Meryl (Design) at pixelmagic, the new FEDUSA website is in the process of going “live”.  The “shell” and maintenance software have been designed according to our needs and we are now in the process of uploading and updating the content.  Some items are therefore still not complete but please bear with us.  We hope to have everything in its place by the end of February.

If you have any comments or suggestions kindly forward them to krister@fedusa.org.za and we’ll see what we can do to live up to your expectations.  Affiliates are also requested to check their details under ”Affiliated Trade Unions“ (see Main Menu) and forward any changes.