FEDUSA and Public Service Unions Escalate the Campaign against GEMS Following Mass Protest in Pretoria

MEDIA STATEMENT: FEDUSA AND PUBLIC SERVICE UNION ESCALATE THE CAMPAIGN AGAINST GEMS FOLLOWING MASS PROTESTING IN PRETORIA

22 February 2026

The Federation of Unions of South Africa (FEDUSA), together with its public service unions HOSPERSA, NAPTOSA, NATU, PEU, PSA and SAOU, confirms that yesterday’s mass protest in Pretoria marks a decisive escalation in the fight against unjust and unaffordable contribution increases at the Government Employees Medical Scheme. The action was in collaboration with independent unions SAPU and NUPSAW.

Thousands of public servants from across the country descended on Pretoria in a united and disciplined show of strength. They marched not out of anger alone, but out of necessity. Public servants are under severe financial strain as food prices, electricity tariffs, fuel costs and transport expenses continue to rise while wage adjustments remain modest. Against this backdrop, GEMS implemented a 9.8 percent increase in January 2026, adjusted to 9.5 percent membership contribution increase effective 1 February 2026. These increases follow a 13.4 percent increase in 2025, resulting in a cumulative escalation of more than 23 percent in just two years.

This trajectory is unsustainable and socially regressive. Public servants cannot continue to absorb double-digit increases that outpace their income growth while being given limited explanation for the scale of the adjustments.

Yesterday’s protest was therefore not an isolated event. It was a clear statement that public servants reject the shifting of financial risk onto workers while fundamental governance and cost questions remain unresolved.

In the Memorandum of Demands handed over to GEMS management and the Board, organised labour made clear and structured demands. We demanded the immediate withdrawal of the 9.5 percent increase implemented on 1 February 2026 and the development of a revised, affordable contribution structure in consultation with organised labour. We demanded full financial transparency, including detailed operational budgets, administrative expenditure, outsourcing contracts, procurement arrangements and executive and Board remuneration. We called for an independent forensic audit into governance practices, procurement processes, administrative expenditure and accountability mechanisms.

We further demanded a comprehensive review of outsourcing and administrative cost drivers to ensure that members’ contributions are directed toward healthcare benefits rather than excessive bureaucracy. We called for an urgent review of the funding and reserve model, including the statutory 25 percent reserve requirement, to determine whether it is contributing to steep contribution increases. We demanded governance reform, strengthened consequence management, and meaningful labour representation in decision-making structures. In addition, we demanded the reversal of unilateral changes to the Tanzanite One benefit option, which have placed an additional burden on lower-income members, and we called for decisive accountability at executive level.

The struggle now moves into its next phase.

The Minister of the Department of Public Service and Administration has invited organised labour to a follow-up meeting and has undertaken to provide comprehensive feedback on his engagement with the GEMS Board. We expect this engagement to produce clarity and firm commitments on the issues raised, particularly on affordability and governance accountability. Public servants deserve concrete outcomes, not general assurances.

At the Public Service Coordinating Bargaining Council, the agenda item to review PSCBC Resolution 1 of 2006 has been formally tabled and engagements will commence in March. This review is critical because GEMS was established as a social solidarity instrument for public servants, and any drift from that mandate must be corrected within the bargaining framework. Engagements with GEMS will also take place at the PSCBC in the coming weeks to address the issues of contribution increases, funding models and labour participation.

In parallel, FEDUSA and its affiliates have submitted a Section 77 application to NEDLAC in preparation for potential mass protest action. This step signals that organised labour is prepared to escalate lawfully should meaningful resolution not be achieved through engagement. Workers have demonstrated iscipline and unity, but they will not accept continued financial erosion without response.

We are also seeking legal opinion on the legality of the recent increases and whether they can be reversed through court intervention. If the implementation of these increases is found to be procedurally flawed or inconsistent with the founding mandate of the scheme, we will not hesitate to pursue judicial remedies.

Yesterday’s mobilisation demonstrated the depth of concern among public servants and the strength of collective unity across unions. The coming weeks will determine whether those responsible for governance at GEMS and within the public service architecture are prepared to act decisively to restore affordability and trust.

FEDUSA and its public service unions remain committed to structured engagement, but we are equally clear that the campaign for affordable healthcare will intensify if workers’ legitimate demands are ignored.

Public servants built this scheme and continue to sustain it. It must serve their interests, protect their families and honour its founding purpose.

END.